Transcript of remarks to the media by PM Goh on the discussion of the ASEAN + 3 Summit, 4TH AIS, 24 Nov 2000

It was a very good meeting, free flowing discussion with the three leaders from Northeast Asia. Primarily, they emphasised the importance of East Asia co-operating. First with one another as East Asians. Secondly, of course, as East Asians they would like to help ASEAN to consolidate and integrate. And there were several specific measures proposed where they can help the ASEAN countries achieve their goals of integration. For example, the interest in the trans-Asian railway. They could help in building the gaps - at the moment - which exist between certain parts of the railway.

IT - Japan as you know at the G8 had pledged something like US$15 billion dollars for IT development. So they could make some funds available from that 15 billion dollar fund to train personnel in ASEAN countries and of course also to build infrastructure. But the big idea, which I would concentrate on - hardest - from the discussion, it appeared to me that there were two trends, though in the same direction.

One is ASEAN as an organisation talking to Northeast Asians. Northeast Asians coming here offering specific packages of assistance to the ASEAN countries. The other trend is the desire on the part of Northeast Asian countries to talk about an East Asian entity or economy or an organisation. And that seemed also to be the desire of some countries in Southeast Asia that we should now begin to think as East Asians. So there was already a suggestion that there should be an East Asian study group to see how East Asian countries can co-operate in the future. Of course when we discussed how the ASEAN + 3 organisation should evolve, the decision was taken that we should ask the East Asian study-group to study the feasibility, the implications, the complications, the benefits, and the negative implications, if any, of the ASEAN + 3 organisation evolving into an East Asian Summit. Of course, if you have East Asian Summit that means another organisation; there's ASEAN, there's an East Asian Summit, together with Ministers who would then support an East Asian Summits. So the decision is taken to study this idea. There was also another big idea which follows from this idea of East Asian identity. And that's the possibility of a Free Trade Zone for East Asia or a free investment area for East Asia. Of course, this being a very big idea, all of us took the easy decision, which is to study further. So the East Asian study group will therefore also study this idea of a free trade zone or a free investment area of East Asia. So these are the two big ideas. The rest are specific ideas on helping the Southeast Asian countries, which you will pick up later on from press statements or my press briefing tomorrow.

Q: Sir, who brought up the idea of an East Asia free trade area.

Well, yes, by the Southeast Asian country.

Q: How did you examine the process of peace and stability one year after the joint statement of Manila Summit, including the situation in the Korean peninsula?

I was asked by the leaders to make a very strong statement to the Press that this meeting will contribute to greater peace and stability in East Asia, as part of the achievement of this meeting over here. So it was a very strong statement, which I was asked to make by the leaders to the Press. Of course, we support the developments in Korea peninsula.

Q: Is the idea of an East Asia Free Trade Zone in response to a proposal by China for a China-ASEAN free-trade zone?

No, it was just a separate response or a separate idea suggested by a member from ASEAN. So this being a big idea, the easy decision is to study this idea.

Q: Would you like to involve Hong Kong in that process?

Well I could ask the East Asia study group to consider that because if they are talking about an East Asian economy, we should consider Hong Kong as well but that depends very much on the politics of it.

Q: The proposed East Asian group sounds like a resurrection of the EAEC. How will this develop?

EAEC has always been a good idea. Having the East Asians meeting as a caucus. But at that time, some countries, which included Singapore, were not in favour of EAEC because we wanted to get APEC going. We were fearful that without APEC if you talk about EAEC alone we in fact are talking about a separate bloc, which may not be breached, with the other countries on the other side of the Pacific. So Singapore at that time too was hesitant on the EAEC idea. But in principle it is a good idea. So now that APEC is firmly established, with regular Summits, Singapore's position would be quite one of confidence. If Asians want to meet as a group, I do not see why we should not, because North Americans do meet as a group. They have NAFTA and they are going to extend NAFTA to South America. So I see no problem in ASEAN + 3 evolving, if that is the desire of the leaders, into some kind of an East Asian Summit. There are implications because the relations change, for example, the mechanics of the meeting. Now when Northeast Asia leaders come to an ASEAN country for a meeting, we organise an agenda. They are here as our guest as our friends and as our partners. But if you have an East Asia summit, we are all equal. Then we are going to have an ASEAN meeting and then we will have to fly for some of the years to Northeast Asia for an East Asia Summit meeting. So this would have to be studied by the East Asian study group.

Q: [inaudible] 15 billion Japanese fund made available to Southeast Asia?

We did not discuss how much will go to where but the Japanese Prime Minister did tell us that this fund is available. So I hope more enterprising of us will begin to put up a good case to have a bite of the fund.

Q: Did you discuss the currency swaps, Prime Minister?

Yes, the Chengmai initiative was discussed and the leaders were supportive of doing such a swap.

Q: Will North Korea join East Asia summit?

The matter was not discussed.

Q: So maybe in the future?

Well, if it is discussed.

Q: Mr Goh, you spoke about huddling and sensitive issues that were discussed. Could you elaborate on some of the sensitive issues, did you discuss Myanmar?

Well, we huddled, and the whole idea of the huddle is that nobody can listen in. So I will neither confirm nor deny whether we discussed Myanmar or not.

Q: Did you discuss Indonesia?

I will not confirm either because the whole idea of a huddle is nobody listens in and I should not be the loud speaker.

Q: Will there be any specific questions that you would you bring up at your meeting with the Japanese Minister?

I'm in the chair. I would listen to the presentation of the Japanese Prime Minister. I will then ask for views around the table. I would then sum up. So I will not know what will be raised. And I don't think we should anticipate what would be raised. I would like to keep some excitement for tomorrow so that when I meet you I can tell you what was raised.

Q: What message would you be send to Washington [inaudible] East Asian Summit [inaudible] Do you think Washington should be concerned.

No, I don't think Washington should be concerned because we are all very clear that we need the US to be in the East Asia. That's Singapore's position, That is the position of many countries in East Asia. And this is not, this is not I repeat, an attempt to shut out Washington from Asia. We would not support such thinking if that's why we are organising an East Asian Summit.

But I do feel that East Asians, we do have common problems and we do want to talk about co-operation within East Asia not about keeping others out. And I must use the key word. The key word was open regionalism. So when you talk about East Asia, it is with a view of open regionalism. So East Asia should be open to other countries in terms of trade relations so Washington would have nothing to worry about

Q: Would you say ASEAN has become more open in the last few years?

I think based on the meetings, I would say the leaders were more open with one another, especially in the huddle. Because I did raise some sensitive issues and I did tell the leaders that we were going to touch on some sensitive issues. And the leaders were co-operative and we did discuss situations within a certain country. I will not confirm or deny what that country is.

Q: Is there any timeframe for the East Asian study group?

I think the timeframe will be a report by the next ASEAN +3 meeting in Brunei, which means about a year's time.
Q: Prime Minister, If it does lead to an East Asian Summit, isn't that a recipe for ASEAN itself to wither on the vine [inaudible]?

I would worry about that too. So as I said, there are implications. It depends on how you look at it. It is good in a certain aspect but it could have implications for ASEAN. So I would myself urge, as I had done at the meeting, that we study this carefully. And even if we want to evolve in that direction, I myself would not recommend a hasty evolution. I would recommend a gradual evolution to that because it has impact on ASEAN.

Q: Will this study group examine peace and security issues and how?

I think the study group would concentrate mainly on economic social issues but we can also extend the study to politics. I do not know what they would look at but free trade zone and economic co-operation will be key areas. But certainly peace and stability is the ultimate goal of East Asia meeting and ASEAN + 3 meeting. Because we are not here just to talk about economic growth. As I was told by the leaders to tell the Press - that we have enhanced peace and stability in Asia and I would add also stimulated further growth in Asia. I think the important point that has come across is ASEAN is confident. We know that we are having immediate problems and difficulties within our own countries but the plan for the medium term and long term on AFTA, on investment areas on e-ASEAN, those plans are on-track. And we do make a point that there should be no back-sliding. Once we are committed to the plan, we must keep to the agreement. So in the medium term, the plans are robust they are good and we are on-track in implementing the plans. And also the key word, which came across is action. Many of the ideas that we talk about in the past, [inaudible] I would say we have talked about this for the past two or three years. So the key word is action, not just talk. [inaudible] So from now on, I believe you will see more action in ASEAN.

Q: Did the discussion touch on the competition between Northeast Asian countries and ASEAN?

Yes, we are all conscious of the gap between Northeast Asia and Southeast Asia and the potential for the gap to widen partly because Northeast Asia is better equipped for the IT revolution. Southeast Asia is less prepared except for some countries. So competition was discussed. And we expect the competition but the point was made that competition leads to growth and growth leads to opportunities. And China makes the point that its entry to WTO is not a threat to ASEAN. It is in fact an opportunity for ASEAN. It is opening up and China trades a lot with Southeast Asian countries. And we should look at the opportunities not at the threat.

I agree with that point of view. It is a challenge for us but it is not a threat. We should see opportunities in Northeast Asia's growth. We want Northeast Asia to grow, the more they can grow, the bigger the investor potential in Southeast Asia because of the funds available from them and they've got a market in Northeast Asia that will buy from us.

Q: Do you have a reaction to the +3 summit that they announced today? They are going to hold a Summit each year on the side-lines of this meeting.

Well, they had a meeting this morning.

And they said they are going to have an annual summit now at this meeting.

Well, they've had a meeting before, they had a meeting today. I think if they want an annual summit, that's fine. So that's the consequence of ASEAN + 3. That with ASEAN meeting, they have their Northeast Asian meeting. If we have an East Asian Summit, then maybe it will also have implications on the +3 meetings in the future.

Last question, please.

Q: Which country proposed the East Asian Meeting?

I think there's a rule of international conferences that you don't reveal who says what.

Q: Was it an ASEAN country?

Well, I think an idea came from North, an idea came from South and as chairman, I brought the two ideas together, you can say it came from me. I, as chairman, I have to reflect the sentiment of the meeting, so that was the sentiment.

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Issued by the Media Secretariat, 4th ASEAN Informal Summit, Singapore, 24 Nov 2000