A significant development in the ASEAN - Japan Cooperation was the announcement of the establishment of the ASEAN - Japan Development Fund (AJDF) by the Japanese Prime Minister at the Meeting between the ASEAN Heads of Government and the Prime Minister of Japan, which was held following the Third ASEAN Summit in Manila in December 1987. The Fund with no less than US$ 2 billion dollars covering a period of three years, is for the promotion and expansion of the private industrial sector in ASEAN member countries. It would provide more concessional terms and conditions than those offered under the existing bilateral financial cooperation. In this respect, the ASEAN - Japan Experts on the AJDF met three times to finalize the "Framework of the ASEAN - Japan Development Fund and Guidelines for Implementation" and adopted it as the basic document for the launching of the fund.
The Ninth ASEAN - Japan Forum was held in Melaka, Malaysia, in July 1987. The Meeting discussed a wide range of subjects including bilateral trade issues and primary commodities, investment and industrial cooperation, the Uruguay Round of Multilateral Trade Negotiations, cooperation in culture, science and technology.
Regarding bilateral trade issues, ASEAN raised the problems of market access, Japan's GSP Scheme, import quota and tariff and non-tariff barriers. On the latest improvement of the GSP Scheme, ASEAN registered its disappointment since some of the products of vital interest to ASEAN were not included as requested. ASEAN stressed the need for Japan to ensure equitable distribution of GSP benefits to developing countries and giving fair treatment to ASEAN products.
As regards ASEAN's concern on the declining trend of commodity prices, Japan agreed to make further efforts for the proper solution of commodity problems by maintaining close cooperation with the countries concerned. Japan would also participate in the INRA II and continued to cooperate in the effective functioning of the Agreement.
On cooperation in investment, ASEAN expressed concern that its share of Japanese private overseas investment had been declining. ASEAN informed Japan of the possibility of greater investment from Japan, since member countries had introduced various measures to improve their investment climate such as the improvement of the ASEAN Industrial Joint Ventures (AIJV) Scheme as decided at the Third ASEAN Summit.
On ASEAN's desire to attract more investment and technology as a means to economic growth and development, Japan had sponsored a Symposium on Investment and Transfer of Technology. The Symposium was held in Bangkok on 2 - 4 September 1987 with 40 participants. It was concluded that the prospects for more investment and technology flow to ASEAN would depend on various factors existing in Japan as well as in ASEAN, particularly the attraction of investment climate". In this context, ASEAN requested Japan to provide technical and financial assistance to assist ASEAN in improving investment environment in the region as well as assisting the Japanese companies to take steps to invest in ASEAN.
Regarding trade in services and other invisible, ASEAN expressed its concern over the growing imbalances of trade in services in Japan's favour. ASEAN requested Japan to redress such imbalances by enhancing cooperation with ASEAN in tourism, shipping and insurance especially on the need to use ASEAN insurance and freight facilities.
The Agreement on the Establishment of the ASEAN Promotion Centre on Trade, Investment and Tourism (APC) in Tokyo expired on 24 May 1987. Both sides agreed at the Ninth Forum to renew the Agreement for another five years and to establish a Planning Committee to help formulate budget and work programme. The First APC Planning Committee Meeting was held in Denpasar, Bali, on 7 - 8 August 1987. At the Meeting with the ASEAN Heads of Government in Manila, the Prime Minister of Japan announced that Japan would increase its voluntary contributions to double the APC's current budget of about US$ 2 million for the coming fiscal year.
ASEAN - Japan Development Cooperation was further enhanced by the announcement of Prime Minister Takeshita of Japan on the proposed establishment of Japan - ASEAN Comprehensive Exchange Programme (JACEP) which would include the following existing and new projects:
a) ASEAN - Japan Friendship Program- me for the 21st Century;
b) Japan - ASEAN Exchange Projects;
c) Intra-ASEAN Technical Exchange Programme;
d) Expansion of Academic and Research Exchange;
e) Assistance for Foreign Students;
f) Assistance to Japanese Language Education;
g) Exchange of Athletes;
h) Expansion of Exchange and Cooperation in Arts; and
i) Centre for Promotion of Cutlural Exchange between ASEAN and Japan.
On the Cooperation in Science and Technology, Japan had agreed to extend technical assistance to material science and technology cooperation. Japan would also consider ASEAN request for involvement in the planning, execution and evaluation of science and technology project so as to reflect the regional character of ASEAN - Japan cooperation.
On Human Resources Development Cooperation, Japan would consider the need of extending the five ASEAN - HRD Centres after the completion of the assessment on the respective Centres.
The project on Observation Tour of ASEAN Insurance Supervisory Authority to Japan under the Japan - ASEAN Cooperation Promotion Programme (JACPP) was successfully completed in April 1988.
For more information, please refer to the project details
