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The Australian
24 July 99

Big three's bungles cloud Asia recovery

>From South-East Asia correspondent PETER ALFORD in Singapore


STRESSES in the US-China-Japan "triangular relationship" posed a significant=20
threat to South-East Asia's security environment and its nascent economic=20
recovery, Singapore Prime Minister Goh Chok Tong warned yesterday.=20

Opening the Association of South-East Asian Nations annual foreign ministers=20
conference, Mr Goh identified the underlying issue that would dominate the=20
ministers' talks with their American, Chinese and Japanese counterparts next=20
week.=20

"We were fortunate that when the economic crisis first broke (in mid-1997),=20
the triangular relationship between Japan, China and the US was stable," Mr=20
Goh said.=20

"Our current recovery also depends on the continued stability of the=20
relationship.=20

"Regional stability enables us to concentrate on domestic (economic) reforms=
,=20
but the triangular relationship itself is under stress."=20

US Secretary of State Madeleine Albright, Japanese Foreign Minister Masahiko=20
Komura and China's Foreign Affairs Minister, Tang Jiaxuan =96 along with=20
Australia's Alexander Downer and six other foreign ministers =96 arrive here=20
today for ASEAN Regional Forum security talks and a series of=20
"post-ministerial" discussions with their South-East Asian counterparts.=20

Two issues will predominate: the row between China and Taiwan over Taipei's=20
new "two-States" policy, and ASEAN's latest attempt to establish a unified=20
position on South China Sea territorial disputes.=20

However, Mr Goh's emphasis yesterday was on the larger danger of frictions=20
between China, Japan and the US over a large and growing range of issues=20
destabilising the regional security environment. He also pointed to the=20
serious risks posed to South-East Asian nations' tentative recoveries by the=20
individual conditions of the big three economies.=20

A sudden end to Wall Street's bull run could "derail US growth and have tida=
l=20
effects on Europe and Asia's recovery"; Japan's slow recovery was hampering=20
the prospects for the region; as would the already apparent deceleration of=20
the Chinese economy.=20

Mr Goh also warned that although ASEAN nations were on the road to recovery,=20
they could not afford to leave financial reforms half-completed or retreat=20
from "inexorable" global trade and financial liberalisation. "The only real=20
long-term solution is to strengthen our economies to cope with global=20
competition," he said.=20

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Didistribusikan tgl. 23 Jul 1999 jam 20:25:59 GMT+1
oleh: Indonesia Daily News Online <[EMAIL PROTECTED]>
http://www.Indo-News.com/
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