Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	:	PHILIPPINE INTERNATIONAL CONVENTION 
			CENTRE, MANILA 
Tarikh/Date 	: 	14/12/87 
Tajuk/Title  	: 	THE OPENING SESSION OF THE THIRD 
			MEETING OF THE ASEAN HEADS 
			OF GOVERNMENT 




 Madam Chairman;
Your Majesty and Your Excellencies the Heads
     Of Government;
Distinguished Delegates.
    Twenty years ago five countries in South-East Asia came
together  to  establish ASEAN.  Nearly four years ago Brunei
Darussalam joined the ranks of those countries.    Now,  the
strong  commitment  of  the  six countries towards ASEAN has
been and will continue to be a dynamic and cohesive regional
association of states.   ASEAN is indeed a  reality  in  the
international system.
2.   Within  the two decades of its existense ASEAN has been
able   to   build  an  image  of  sober  inter-regional  and
international  responsibility,  maturity  and  commitment to
peaceful  development.  It   has   provided   the  necessary
environment   for   strengthening   national   and  regional
resilience which a reessential  to  development,  peace  and
stability  in Southeast  Asia.  The incertitude that hung in
the  air during the signing  of  the Bangkok  Declaration in
1967  gave  way  to  confidence  and  firm resolve among the
member   countries   to   enhance  regional  cooperation  as
enunciated in the Bali Declaration   of ASEAN Concord.  That
confidence has  gained  in  strength and  is  again  clearly
demonstrated  here in Manila today.   This meeting reaffirms
our solidarity  and  our  conviction    that  ASEAN  remains
viable for promoting economic development,  social  progress
and  peace and security in the region.
3.   ASEAN today has brought into sharp focus the vision  of
its  founding  Heads  of Government, two of whom, I must say
with great respect and esteem, are still among  us  here  at
this  meeting.    ASEAN  has shown that regional cooperation
founded upon political, economic and cultural  cohesion  can
lead  to  development  and progress.   This  is  vital   for
regional  stability  and  security.  Regional cooperation as
manifested by ASEAN remains the  cornerstone  of  Malaysia's
foreign policy.
4.   Since  the  Meeting of the ASEAN Heads of Government in
Kuala Lumpur ten years ago, several  important  developments
and  changes  have  taken place in the region and elsewhere.
These developments have affected the ASEAN countries  b  oth
individually and as a group in various ways.
5.   These  developments and changes present both formidable
challenges and vast opportunities.  I believe  ASEAN  should
and  could  respond to those challenges squarely.  We do not
lack the resources.  We have the combined potential of  more
than  250  million  people  whose  creativity and innovative
ability are considerable.  Given this invaluable  asset,  it
remains  only  for  us to match it with the varied and rapid
advances in science and technology to turn the region into a
powerhouse of economic and social advancement.
6.   The  ASEAN  countries  have  the  natural resources and
productive  capacity  to venture into many areas of economic
activity in order to realise the region's full potential and
to truly turn ASEAN into a growth  centre  for  the  future.
Rightly,  there  should  be  no  unnecessary barriers to our
pursuit of economic cooperation.  We must have the political
will.  For as long as we are clear about  those  objectives,
our will should not wane.
Ladies and Gentlemen,
7.   Among  the great many changes that we in Southeast Asia
have faced in the last decade is  the  prolonged  Vietnamese
occupation  of   Kampuchea.   There  has  also  been  a  new
correlation  in  the  strategic   interests   and   military
presence of  the  superpowers  in  the  region.  These  have
presented an  unfavourable situation for peace and stability
in the  region.
8.   ASEAN has channelled a lot of its energies into finding
a  comprehensive durable solution to the Kampuchean problem.
Our efforts should never become less  than  what  they  have
been.  Efforts to find a solution to this problem should not
aim  only  at  ensuring  total Vietnamese withdrawal and the
restoration  of  the  independent,  neutral  and non-aligned
status of Kampuchea, but they should also aim at ending once
and  for  all  the  rivalry  between the major powers in the
region so that durable peace, understanding and  cooperation
could,  in the long term, prevail for the whole of Southeast
Asia.  Let Southeast Asia be for Southeast  Asians  and  let
the people of this region get on with the job of maintaining
peace  and  stability  for the sake of their own development
and progress.
9.   ASEAN's commitment to the Zone of  Peace,  Freedom  and
Neutrality  in  Southeast  Asia,  or ZOPFAN, as the ultimate
goal for a peaceful and  stable  Southeast  Asia  should  be
stronger  now   in   the  light  of  these  changes.  It  is
imperative  that further efforts be made to effect the early
realization of ZOPFAN. Malaysia,  on her part, places  great
importance  on ZOPFAN.   We recognise the roles of the major
powers,  their  legitimate  interests  and  their   positive
contributions in  the  region.  The legitimate interests and
positive contributions of the major powers could be enhanced
if Southeast Asia remained free from intra-regional conflict
and major power rivalry.
10.  For us in Southeast Asia, given the  region's  history,
the  successful  containment  of  internal  threats  to  our
security remains crucial to our  development.  Each  of  our
countries face different sets of internal security problems.
ASEAN cooperation in the  economic  areas  could  positively
contribute towards enhancing our national security.
11.  Nevertheless,  there  are  problems  affecting security
that   are   common  to  us  all.  Drug  abuse  and  illicit
trafficking is recognised by us as a menace  which needs the
concerted   efforts   of   the  international  community  to
eradicate. The pernicious effects of this menace need not be
recounted.  ASEAN's  resolve  on  this  matter  has been  an
example to all countries in countering this terrible scourge
faced  by  mankind.  We  must remain steadfast in the  fight
against the drug menace.
12.  For  more  than  a decade the ASEAN countries have been
faced  with  the  problem  of  Indochinese  refugees seeking
temporary  asylum  within  our borders, pending resettlement
elsewhere.   Problems such as this unnecessarily complicates
our  priorities  and  distract  our attention from the  more
fundamental objectives of regional development and peace and
security. Efforts should be continued to find a durable  and
effective  solution,  in  particular  by  solving  it at the
source.  Vietnam and Laos should cooperate in this regard.
13.  ASEAN has been quite successful in facing the  security
challenges  posed  by developments in the region.  Our faith
in  the  importance  of  economic  development  and   social
progress  as  the foundation for peace and security has paid
off.  Consequently  we  reject  the   possiblity  of   ASEAN
evolving  into a regional collective security arrangement or
military  alliance.  We  are  able to do this because of our
belief that  to  win  friends one should not create enemies.
Our major  concern, rightly, has been and should continue to
be the promotion of ASEAN economic cooperation.
Ladies and Gentlemen,
14.  The  economic  challenges  being  faced  by  ASEAN  are
enormous.    ASEAN  has  been  highly dependent on the world
market  for  the  sale  of primary commodities and a limited
range of manufactured products.  Since the early 1970s there
has been  a  relatively  small  though  steady  increase  in
intra-ASEAN trade. But intra-ASEAN trade still forms a small
proportion  of  the  total  ASEAN trade.  Therefore, in  the
circumstances,  ASEAN's  dependence on external markets will
continue, making  it  more important for ASEAN to be assured
of ready access to those markets.
15.  The  prolonged  imbalances  in world trade and increase
protectionist trends which are  becoming  pervasive  in  the
international  trading  environment  do  not  bode  well for
ASEAN.  The United  States  continues  to  incur  huge trade
deficits  and would need to restructure to reverse the trend
and maintain a balance. The U.S. still provides the  largest
market  for ASEAN.   Japan's mounting surplus, which has now
firmly  established  her  as  the  world's largest  creditor
nation,  will  not  be  any  good  to  ASEAN  if  there  are
insufficient sustained efforts on Japan's part to liberalise
her trading  practices  and  help  redress the international
trade  and monetary situations.  The huge debt burden of the
developing countries remains  a  source  of  instability  in
the  international  economic  system.   The ASEAN countries,
being no exception, have been  hurt in  varying  degrees  by
the spiralling appreciation  of  major  currencies  and  the
unstable exchange rates.
16.  We are still far from being out of the woods in respect
of  the problems of low prices and depressed markets for the
world's  major   commodities.    The   commodity   producing
countries  in  ASEAN  have  suffered the ill-effects of poor
demand, low returns and increasing protectionism in the area
of  commodities.   We face dangerous trends in the developed
countries in the form  of  subsidised  agricultural exports,
concessional  sales  and  smear  campaigns  to discredit our
products. ASEAN  should increase its efforts in safeguarding
its long-term interests in the area of commodities.    There
is  now an urgent need for ASEAN to give special emphasis to
commodity issues by reviewing and  restructuring  the  ASEAN
machinery to accommodate the commodity sector.
17.  The  list  of  economic  woes affecting practically all
countries in the world is long.    Calls for  restructuring,
increased  aid,  standstill  and  rollback   on   non-tariff
barriers  have  been  repeatedly   made.   Various  pledges,
resolutions  and promises have been uttered, articulated and
documented. Yet, while we  progress  towards  the  threshold
of a new  millennium, many of the solutions to the  problems
at hand remain elusive. We may indeed be in danger of coming
close  to  a serious breakdown in the system if the  present
trends persist.  Not  only  have  the  gaps  in  income  and
standard of  living between the North and the South remained
wide, there has also been very little narrowing of the chasm
that divides the perceptions and views of both sides.
18.  ASEAN, as a respected regional organisation, should  be
capable  of  contributing  towards  finding  some   of   the
solutions    through   the   intensification   of   economic
cooperation among the member countries, through the dialogue
process  with  the  Dialogue  Partners  and  through  active
participation in  the  relevant  international fora.   ASEAN
countries can collectively venture  into  various  areas  in
order to help themselves  as  well  as to contribute towards
a  more  stable  and  manageable world economic environment.
Increased cooperation among the countries in the South could
provide new  opportunities for ASEAN.
Ladies and Gentlemen
19.  ASEAN has had its share of critics.  As leaders of  the
respective  member  countries, we have on numerous occasions
launched  into  self-appraisals   of   ASEAN   which   quite
inevitably  conclude  in  our  own grim, uncomplimentary and
critical  assessments of ASEAN's performance in the area  of
economic cooperation. But  let  the critics be reminded that
while  certain  specific   programmes  in   ASEAN   economic
cooperation  may  have  run into some  problems,  ASEAN  has
succeeded in many  other areas. ASEAN functional cooperation
which encompasses a wide range  of issues and activities has
indeed  enhanced  the  ASEAN  identity.   It  has  certainly
increased the  awareness and  consciousness  of  ASEAN among
the peoples of  our  countries,  and  has  allowed  them  to
participate  actively in many  of ASEAN's activities.  ASEAN
should always be willing  to  improve,  accept new ideas and
begin   with   fresh  initiatives  to  raise  the  level  of
cooperation not only among the  member  countries  but  also
between ASEAN and the rest of  the world.
Ladies and Gentlemen,
20.  This  Meeting  of  Heads  of  Government  gives  us the
opportunity to assess ASEAN's achievements and look into the
new initiatives that have been carefully worked out over the
last  few  months.   I am confident that all of us share the
view   that   ASEAN   economic   cooperation   needs  to  be
intensified.   Therefore,  we  should  provide the necessary
direction for the future.
21.  One of the areas which could be seriously considered is
the  encouragement  of  wider  participation  of the private
sector  in  the  activities of ASEAN.   In this  context,  I
personally feel encouraged that the private sector had taken
a  keen  and  active  interest  in the preparations for this
Meeting.  I wish to compliment the Group of Fourteen for its
efforts.  The Group's contribution has helped to augment the
preparatory work carried out by the Ministers and Officials.
22.  A lot of attention has been focussed  on  this  Meeting
ever  since  the  decision  to hold it was made.   I believe
there are  many  supporters  and  critics -- established and
potential -- who are watching with keen anticipation for the
final  outcome  of this Meeting.   There are no doubt people
who  understand  the  nuances  and  methods upon which ASEAN
cooperation  is built.   However,  there  are also those who
refuse  to  acknowledge that despite its shortcomings, ASEAN
has had many achievements which  can  easily  surpass  those
of other regional groupings.  The path followed by ASEAN has
certainly shown that a strong commitment to  the  values  of
freedom   and   independence,  and  respect  for  individual
entrepreneurship and dexterity bring many  benefits  to  the
member  countries.    In sharp contrast, strict adherence to
narrow ideologically-based objectives  preferred  by  others
have clearly shown many signs of failure.
23.  I  am confident that we can work together in the spirit
of  ASEAN  solidarity  and  friendship  to make this Meeting
another important  watershed in ASEAN's history.  ASEAN owes
its peoples a better future.
     Thank you Madam Chairman.