Japan-ASEAN Cooperation toward the 21st Century
- Prime Minister Hashimoto's Three Initiatives -

December 16, 1997

I. Japan's Cooperation with ASEAN Economies Entering a New Stage

(a) Cooperation toward currency and financial stability

- Reaffirm support for the Manila Framework;
- Implement support in the international framework, centered around International Monetary Fund (IMF);
- Enhance support through the IMF, the World Bank, Asia Development Bank (ADB), etc., to strengthen ASEAN's capacity for regulation and supervision in the financial sector, in addition to bilateral technical cooperation;
- Strengthen dialogues between Japan and ASEAN on macroeconomic, currency and financial areas through regular meetings between Finance Ministers, etc.

(b) Support for ASEAN's economic structural reforms and its stable and sustainable development

- Launch the "Japan-ASEAN Program for Comprehensive Human Resources Development"
The program promotes developing human resources by focusing on education of: (i) future political and social leaders centered on foreign students; (ii) government officials who deal with economic, social and other aspects such as economic policies, small- and medium- size enterprises policies, environmental administration policies and so on; and (iii) skilled workers and technicians in private firms. In this context, Japan will receive as many as 20,000 people in 5 years, and dispatch experts to ASEAN nations, cooperating with the private sector. Moreover, low-interest yen loans will be utilized for these purposes, especially with newly introduced special interest rates applied for human resources development.

- Cooperation toward strengthening higher education and training in management and technology
Japan considers cooperative measures which will coordinate ODA schemes, study-abroad programs and assistance from local Japanese companies, in order to improve the standard of institutions of higher learning, centering on such areas as science, engineering and management, which supports upgrading of the ASEAN industrial structure and enrichment of the human resources of ASEAN as a whole through promotion of intra-regional cooperation. (in this connection, Japan will provide continuous training opportunities to already skilled workers in industrial sectors, e.g., car manufacturers, etc.).

- Lowering the standard interest rate for yen loans

- Developing infrastructure
Enhance support for the activities of the World Bank, Asian Development Bank (ADB) and others in assisting private initiative of infrastructure development; actively use loans of the Import-Export Bank; establish an 18 billion trade insurance credit line; strengthen cooperation among trade insurance institutions in Japan and ASEAN nations; conduct research and exchange views to develop relevant arrangements in each nation; and use the most preferential interest rate newly introduced for loans applied to cross-border infrastructure projects.

- Cooperation for developing small- and medium-sized enterprises and supporting industries
In order to foster small- and medium-sized enterprises indispensable for the production of parts and other materials essential to upgrade ASEAN's industrial structure, Japan provide various intra-regional industrial associations with knowhows for better organization and activities, as well as to cooperate for enhanced technology and productivity (continue "Asia Program," "Total Quality Control Cooperation" and establish "Circuit University Courses for Small- and Medium-sized Enterprises"), an introduction of Japan's small- and medium-sized enterprise policies. Further, considering the importance of AFTA and AICO contributing to the promotion of competitiveness of Asian industries, Japan considers the use of trade insurance to assist supporting industries related to AICO and use of low-interest yen loans to assist small- and medium-sized industries.

- "Japan-ASEAN Roundtable on Development"
High officials from economic cooperation authorities of each country as well as people from private sectors, participate and discuss issues covering ASEAN countries such as human resources development, South-South cooperation, assistance to private sector initiatives in infrastructure development, Mekong River Basin Development, as well as global issues such as environment.

- Reorganized CLM (Cambodia, Laos and Myanmar) Industrial Cooperation Working Group
This Working Group, together with the above-mentioned Roundtable, will promote industrial cooperation measures, taking present situations of ASEAN industry into consideration.

II. Closer dialogues and exchanges between Japan and ASEAN

(a) Enhancing dialogues between leaders

As the Prime Minister Hashimoto proposed on the occasion of his visit to the ASEAN nations in January 1997, Japan and the ASEAN nations strengthen the dialogue between leaders, taking advantage of various opportunities.

(b) Enhancing political and security dialogues

Japan and ASEAN strengthen security dialogues and exchanges, whether they would be in multilateral contexts, such as ASEAN Regional Forum (ARF), or in bilateral contexts such as high level officials' meetings and defense authority talks.

(c) Further promotion of broad exchanges including cultural ones between Japan and ASEAN

III. Joint efforts toward the challenges faced by the international community

(a) Launching "Japan-ASEAN South-South Cooperation Program"

Japan will cooperate to ASEAN in its efforts to support intra-regional and inter-regional South-South cooperation such as with Africa, through the Japan-UNDP Human Resources Fund and JICA schemes.

(b) Strengthening cooperation to face global challenges

Promote cooperation to face global challenges, in particular, (i) preserving environment; (ii) efficient use of energy; (iii) improving world health and welfare by promoting the Initiative for a Caring World, etc.; and (iv) combating international terrorism, illicit trafficking of small firearms, illicit drugs and international organized crimes and so on. In this view, Japan and ASEAN enhance such cooperative efforts as tackling forest fires and preserving forests, as well as establishing "Japan-ASEAN terrorism information exchange network."