Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	MANILA 
Tarikh/Date 	: 	15/12/87 
Tajuk/Title  	: 	STATEMENT BY THE HONOURABLE THE 
			PRIME MINISTER OF MALAYSIA 




 Madam Chairperson;
Your Excellency Mr. Noboru Takeshita;
Your Majesty and Your Excellencies;
Ladies and Gentlemen,
    We consider it an honour that His Excellency Mr. Noboru
Takeshita  finds  it  appropriate  to  meet with us from the
ASEAN region in his first overseas trip  as  the  new  Prime
Minister  of Japan.   This I believe is an indication of the
importance the Government of Japan places on  its  relations
with  ASEAN.    It  further reflects the strength of Japan's
commitment and belief in the future prospects of ASEAN.   We
in  ASEAN  welcome  the gesture as it will contribute to our
efforts to maintain, enhance  and  further  consolidate  the
bond of friendship and cooperation between ASEAN and Japan.
Your Excellency,
2.   ASEAN-Japan  partnership,  if  I  may  say  so,   could
definitely  solve  some if not most of our regional economic
problems. More than that, it could pave the way to resolving
many  international  economic issues related to debt burden,
financial market instability and protectionism.  ASEAN-Japan
cooperation covers all economic and political elements which
could  also  be  found  in  other  cooperative  relationship
between  developed and  developing  countries.  To our mind,
ASEAN-Japan   cooperation   could   serve  as  a  model  for
cooperative relationship between  the developed countries of
the North and the developing countries or group of countries
in the South.  We  hope that these relations would move away
from the donor-recipient stereotype to a  truly  cooperative
spirit  that  would be mutually beneficial and in conditions
that both could be proud of.
3.   On  behalf  of  my  ASEAN  colleagues, I would like  to
express  our  appreciation  to  Japan and to your excellency
personally,  for the initiative taken by Japan to allocate a
sum  of  not  less  than  US$2  billion  to  ASEAN  for  the
development of our private sector.   This gesture on Japan's
part is a demonstration  of  Japan's  desire  to  assist  in
ASEAN's economic development. We are pleased that Japan will
take   into   account  ASEAN's  wishes  in  formulating  the
framework of this new ASEAN-Japan Development Fund.  ASEAN's
stand is that  as a  new initiative, the fund has to be over
and above the  existing  development  assistance  programmes
extended  by  Japan to ASEAN,  on  terms and conditions that
are meaningful and concessional.  In addition, the fund must
be equitably  accessible  to  all  ASEAN  countries  and its
loans  should  be  untied.  We  also hope that the fund will
include  a  mechanism  to insure ASEAN countries against the
risks of further appreciation of the Yen and that there will
be significant efforts to promote market access in Japan for
ASEAN products.
4.   The  next  step  is for ASEAN and Japanese officials to
work out the implementation details of the Fund.  ASEAN will
readily submit viable projects for funding.    I  hope  that
with  the  close  working relationships which have developed
between our officials, the ASEAN-Japan Development Fund will
soon become a reality for the ASEAN countries.
5.   It cannot be denied that Japan has played a major  role
in contributing towards industrial development of most ASEAN
member  countries.    However, much as we appreciate Japan's
contribution, we are concerned that more and  more  Japanese
investments  are  shifting away from this region to the USA,
EEC and China.  On behalf of my ASEAN friends here, we would
like to urge the Government of Japan to  actively  encourage
its private sector to invest their surplus capital in ASEAN.
ASEAN has  just  reached  another  milestone in its economic
cooperation  with  the  just  concluded Meeting of the ASEAN
Heads of Government. New measures have been announced in the
area of industrial cooperation in pursuing ASEAN's long-term
economic objectives.
6.   The  ASEAN  Industrial  Joint  Venture  Scheme in which
Japanese private investors have shown very keen interest has
been greatly improved, and we hope Japanese businessmen will
take advantage of this improved scheme to invest  in  ASEAN.
ASEAN  with  its  various  and varied resources, its liberal
investment  policies  and  attractive  investment incentives
offers great opportunities for Japanese businessmen. We hope
that  the  Japanese  Government  would further encourage its
small  and  medium-sized  firms  to  invest   in   ASEAN  by
relocating  their  industries  and   encouraging   effective
transfer of their technology.  At the same time, we in ASEAN
would like to see the Government of Japan introduce measures
that  would  allow  for  buy-back  arrangements  of products
manufactured  by  Japanese  concerns in  ASEAN.   Mr.  Prime
Minister,  this  arrangement  would   be   the   single-most
important contribution  Japan could make, aimed at realising
the  objectives  of  the ASEAN-Japan Development Fund.
Your Excellency
7.    We  are all concerned with the political stability and
security of our region.  With these in mind we have proposed
the Zone of Peace, Freedom and Neutrality or ZOPFAN and more
recently, the Nuclear Weapons Free Zone.   Our emphasis  has
always  been  on  the  need  to build up regional resilience
through  national  resilience.  In  this  regard   we   have
repeatedly  urged  outside  powers  to  refrain  from  using
countries in  this  region for political experiments to test
their  ideological  theories.   Let  us  proceed  with   our
preoccupations in bringing  economic  development and social
progress to our people.  If  at  all  outside  powers have a
role, it is in this sphere.  The financial and human cost in
assisting  us  in   this area is certainly less.  It is more
acceptable to their  domestic  constituency  if  compared to
the  high expenses in any  military venture.  Theirs as well
as our interest  in   maintaining   political  and  economic
stability in the region can be secured without bloodshed and
expensive weaponry.
Your Excellency
8.   ASEAN-Japan  type  of  cooperation  on Kampuchea in the
interest  of  a  durable  peace  and stability in the region
should  be  extended  to  the fields of trade,  finance  and
investment. It would be a pity if the understanding achieved
in  the  political  field  is  not  utilised for the equally
important economic field.
9.   Looking at the current political economic situation  in
the Pacific region, you will agree with me that ASEAN is the
brightest spot with the greatest potential for rapid growth.
If  the 21st century is to be the century of the Pacific, as
some  have  predicted,  then   cooperation   among   Pacific
countries,  particularly  Japan  and  the ASEAN countries is
imperative.  Japan's  technology  and  management skills can
combine  profitably  with ASEAN's vast resources in men  and
material to contribute fully to the strength of the Pacific.
ASEAN can then develop into a strong economic  entity  which
can contribute  to the growth of world trade.  It can become
one of the affluent markets of  the  world. Japan and  other
Pacific  Rim  countries  and  indeed  the  world  cannot but
benefit  from  ASEAN  prosperity.  It is in the interest  of
Japan and other developed countries to help ASEAN succeed in
its  industrialisation  programme.  Even  the short spell of
prosperity  ASEAN  enjoyed  in  the 60's and 70's has proven
beneficial to Japan and other developed countries.
10.  Japan  is physically very close to the ASEAN countries.
Such closeness must result in mutual interchanges  not  only
in  trade  but  also  in  culture.  There could also be more
exchange  of  visits  not only by officials, but also by the
people  as a whole.  The recent rise in the value of the Yen
may   inhibit ASEAN travellers going to Japan, but the  very
same  rise  should  facilitate  Japanese  travel  to   ASEAN
countries.  The  contacts  that will result from such travel
will help increase our  knowledge  of  each  other  and  our
cooperation.
Your Excellency,
11.  As we approach the year 2000, it is our hope that Japan
will initiate changes in its policies that will  effectively
bring  about  an  enhanced  political,  socio-economic,  and
cultural  role  in  not only the South-East Asian region but
also in the global context. Such an enhanced role should  be
achieved   before  the  turn  of  this  century.   ASEAN  is
confident  that  Japan would be able to maintain and sustain
this  role  given  the  tremendous  economic  and   monetary
resources  that  have  been  building  up in Japan since the
70s.  Japan needs to play a positive role commensurate  with
the trade  surplus  position  that  she  has  achieved.  Our
expectation is  that Japan will conduct itself with the kind
of sensitivity that it has shown since the end of the war.
12.  I  have  been  rather  frank  and forthright in stating
ASEAN's expectations.  I trust that ASEAN-Japan relations is
such that frankness is acceptable.  The necessity for urgent
corrective  action  and  extraordinary  efforts  cannot   be
overstated.  The  world  is  going  through  one of the most
critical  period in its  history and it  needs  courage  and
understanding  on  the  part  of everyone if we are going to
regain equilibrium and restore prosperity.
     Thank you.