The Tenth ASEAN - Japan Forum was held in Tokyo on 21-22 September 1988. The Meeting discussed a wide range of topics of mutual interest to ASEAN and Japan, including the Uruguay Round of Multilateral Trade Negotiations, trade and commodities, investment and industrial cooperation and development, and cultural cooperation. The Meeting also reviewed developments in ASEAN Japan relations over the past eleven years.

The Meeting noted that since the establishment of the ASEAN - Japan dialogue in 1977, ASEAN and Japan had steadily widened the fields of cooperation particularly in recent years. These include the series of measures implemented for the economic development of ASEAN countries such as the establishment of ASEAN - Japan Development Fund (AJDF) to encourage the development of the private sector of ASEAN countries, and the reduction of interest rates on Japan's Official Development Assistance (ODA) loans. The Meeting welcomed Japan's moves towards economic restructuring announced at the Toronto Economic Summit in early September 1988, particularly measures which would reduce massive external imbalance through structural reforms thereby promoting a shift to a domestic demand led economy, as well as intention to undertake further market opening measures for both agricultural and industrial products, and reforms in the distribution systems and to step up Japan's contribution to improve the World trading system. On bilateral trade, however, ASEAN expressed great disappointment that after a decade of raising the market access issues, Japan still continued to import predominantly petroleum and raw materials from ASEAN. ASEAN reiterated that the impediments to market access of its manufactures products were mainly due to restrictive Japanese commercial policies, tariff and non-tariff barriers coupled with the fact that most ASEAN exporters had to face the complex distribution system in Japan.

On commodities, ASEAN appreciated Japan's positive response that it fully recognised the importance of primary commodities to ASEAN economies that it would actively support the efforts of developing countries to overcome commodity problems. Japan would also eliminate quantitative restriction on a number of farm and agricultural products including canned pineapple.

ASEAN also stressed the need for Japan's support and cooperation to develop the resource based industries in the ASEAN region and call for more investment in this area particularly on tin, timber, rubber and palm oil-based products. In intensifying the downstream activities, ASEAN requested Japan to continuously support ASEAN R & D programmes in terms of technological transfer and other assistance. Japan recognised the importance of R & D on commodities for the ASEAN countries in their efforts to promote processing of commodities and to diversify their industrial structures, and pointed out that some cooperation in R & D had been already carried out between ASEAN and Japan in such fields as food processing, timber, natural rubber and palm-oil. Japan stated that careful examination should be given on a case-by-case basis in order to identify areas and items to be taken as appropriate and feasible R & D projects on a governmental basis and in other forms.

On Investment and Industrial Cooperation, the Meeting emphasized the importance of taking measures aimed at increasing. the flow of Japanese investments to ASEAN. ASEAN noted that although total Japanese overseas investments appear to be increasing, there was nonetheless an urgent need to increase the ASEAN share of Japan's global investments, and that active measures towards this end should be the subject of prior consultations between ASEAN, and Japan, which should involve the appropriate participation of the private sectors of both sides. Such measures should include: the relocation of small and medium-sized Japanese industries to the ASEAN region, the provision of assistance for auxiliary and supportive industries in ASEAN countries, the holding of seminars on investment promotion and technology transfer, the introduction of buy-back arrangements on export products of interest to ASEAN; and the creation of a joint ASEAN-Japan High Level Working Party on Investment.

On Cultural Cooperation, ASEAN acknowledged Japan's positive contribution of the ASEAN Cultural Fund. In connection with the proposal of the Japanese Foreign Minister at the ASEAN Post Ministerial Conference with Japan in Bangkok on 8 July 1988, the Meeting agreed to pursue projects and activities that would promote two-way personal cultural exchanges between ASEAN and Japan. These activities 'would be pursued under the Japan-ASEAN Comprehensive Exchange Programme (JACEP).

The Meeting noted that Brunei Darussalam would become a party of the ASEAN Promotion Centre on Trade, Investment and Tourism in Tokyo as soon as the procedural arrangements are finalised.

ASEAN conveyed to the Japanese its continuing worry and concern over the appreciation of the Yen. Although ASEAN welcomed the recent reduction in interest rates for Yen loans, such reduction was not substantial enough to counter the adverse effects of the continuing appreciation of the Yen. ASEAN urged Japan to be more responsive to ASEAN need and concern.

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