Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	KYUSHU, JAPAN 
Tarikh/Date 	: 	21/10/94 
Tajuk/Title  	: 	THE KYUSHU-ASIAN SUMMIT FOR 
			LOCAL AUTHORITIES 



    COEXISTENCE IN ASIA
    My  previous  visits  to  Kyushu  have  all  been  very
enriching.   I know today will not be any different.  Kyushu
has several unique characteristics.   Of Japan's  four  main
islands,  Kyushu,  geographically, is closest to continental
Asia.  Culturally,   Kyushu can also boast of being  Japan's
first contact point for Asian and European civilisations.
2.  Kyushu is also  blessed  with  as  uccession  of  strong
leaders at crucial stages  of  its  history.   Two  of  such
leaders who need no introduction are Prime Minister Murayama
and ex-Prime Minister Hosokawa.  Prime Minister Murayama and
Mr.  Hosokawa are men of great courage,  who  in  their  own
ways, are striving for a better future for Japan and for the
world.
3.   Among  the  strong  leaders  from  Kyushu  is  Governor
Morihiro  Hiramatsu.  What Governor Morihiro  Hiramatsu  has
done and is doing  for  Oita  attests  to  his  dynamic  and
visionary  leadership.   He  mooted  the  concept  of  'one-
village-one-product'.  He also propounded the idea of 'think
globally, act locally'.  These concepts have not only served
as a model for the Japanese  people  but  also  excited  the
imagination of  people  the  world  over.   Indeed,  today's
conference,  which  gathers  together  local government  and
grass-root  leaders from various parts of the  world,  is in
itself a manifestation of the concept  of  'think  globally,
act locally.'
4.   I have been asked to speak on the theme of "Coexistence
in Asia".   Admittedly, this  is  a  wide-ranging  topic,  a
comprehensive  treatment  of  which would not be possible in
one session like this.
5.      Coexistence  is  imperative  because  the  world  is
shrinking.    We are all closer to each other.  The magic of
technology now enables us to see around  the  curve  of  the
globe,  to  look  at  events  in  distant lands even as they
happen.    We  are  all  neighbours  and  what  happens   to
neighbours  affects  us  all  as  much as what happens to us
affects our neighbours.
6.   The world is one and we are all the  citizens  of  this
planet.  As citizens we should care for each other.
7.      But  the  fact  of  the  matter is that we are still
divided, divided by geographical locations, by ethnic groups
and by culture.  There is still a Europe which is peopled by
Europeans, there is still Africa peopled by the Africans and
in Asia there are a number of  ethno-cultural  groups  which
differ  from  each  other  although they have certain common
traits which set them apart from Europeans and Africans.
8.     What I am trying  to  say  is  that  Asians  are  not
Europeans  and Europeans cannot suddenly claim to be Asians.
It is not a question of deciding to be Asian or European  or
African.    It  is  not  even  a  question  of  geographical
location.    It  is  cultural.     It   is   culture   which
differentiates  us.   Unless and until we adopt the cultural
values and practices of a group any claim to belong  to  the
group will have no meaning.
9.   Now Japan is Asian, more particularly it is East Asian.
Whether  it likes or not it is geographically and culturally
Asian.  Even in a shrunken world,  it  cannot  disclaim  the
facts.    In  any case the decision to disclaim does not lie
with Japan alone.  The other party or parties have to accede
to the decision made to identify with them.
10.  East Asia where Japan naturally belongs may not have  a
claim  on  Japan.    But that does not detract from the fact
that  Japan  belongs  in  East  Asia,   geographically   and
culturally.
11.    But  very  soon Japan is going to belong to East Asia
even economically if it is not already so.  East Asia  today
has  the  highest  economic  growth  rate.    It has, if you
include South Asia, and you  must  include  South  Asia  for
South  Asia  is essentially of the East and is Asian; it has
almost three  billion  people,  more  than  the  peoples  of
Europe,  Africa and the Americas added together.  And almost
all the three billion people are hard working and  trainable
people,  able  to  do and excel in almost any field of human
endeavour.
12.  The picture is rapidly changing.   Where once  most  of
Asia was socialist or Communist, today the economic theories
of  the  socialist  and  the Communist, if not the political
ideologies, have been abandoned.  Most of Asia has become  a
huge free market.
13.    No country can really be rich if the people are poor.
It took the Russians  70  years  to  realise  this.    Their
leaders  saw  how  rich the capitalist countries were.  Even
workers owned luxuries such as  cars,  houses  and  electric
household appliances.
14.   Unfortunately the Russian leaders assumed that all the
wealth was the  result  of  democracy  and  the  free-market
system.    And so without any preparation they switched from
the centrally- planned state controlled economic  system  to
the free-market.  With no private capital, entrepreneurs and
management  know-how,  they are now worse off than when they
were under the Communist system.   All  they  have  is  high
inflation, high crime rates and general poverty.
15.                   To make matters worse they adopted the
multi-party   democratic   system,   again    without    any
preparation.     This  is  a  perfect  recipe  for  anarchy.
Democracy  does  not  work   unless   there   is   a   basic
understanding  among  the  people  in  general, not just the
leaders, on the limits of  democracy  and  the  need  to  be
responsible.
16.    However the socialist states in the East did not rush
into adopting the free-market and the multi-party democratic
system of Government.    They  introduced  the  free  market
gradually,  limiting  it  to certain areas only as in China.
They continue to have tight Government control.  It may  not
be very democratic but it is at least not anarchic.  Rushing
into democracy is meaningless if all you get is anarchy.
17.    People  need  time to manage economic freedom and the
responsibility needed in order to make it work.    And  when
they do they would demand and they should be given political
freedom  in  graduated  doses.    Democracy  can then flower
without anarchy.
18.   Because the socialist states  in  the  East  have  not
rushed into political reforms blindly, their adoption of the
free-market system is more likely to succeed.  And indeed we
see in China and Vietnam the high economic growth that we do
not  see  in  the  former  Soviet  republics and the Eastern
European countries.
19.  Fortunately, also the East already has the capital  and
the  technology  necessary  for stimulating economic growth.
Even  without  Western  capital,  foreign  investments  from
countries  like  Japan,  Taiwan,  South Korea, Singapore and
even the other South East Asian countries, are sufficient to
make the liberalisation of the economy  of  the  East  Asian
socialist  countries  work.    And the Far Eastern countries
have the  right  amount  of  technology  and  enterpreneural
expertise to inject into the economy of the former socialist
states.    There  is  no  doubt  that  the  people  in these
countries are learning the intricacies of  the  free  market
system very fast.
20.    Political  stability  and the careful adoption of the
free market system,  assisted  by  foreign  investments  and
expertise will result in the rapid development of East Asian
countries.  They will be joined by a less socialistic  India
and other South Asian countries  whose people are skilled in
trade and industry.
21.  In a very short space of time  East  Asia,  South  East
Asia  and  South  Asia  will  become  one  of the wealthiest
regions in the world, if not the wealthiest.  The per capita
income may remain lower  than  Europe  or  America  but  the
purchasing  power  of  three  billion  people  will  be very
considerable indeed.  Without a doubt the region will become
a huge market.
22.  Intra regional trade will bloom and will  overtake  the
trade  with  other regions.  Even now the trade between East
and South East Asian countries together make up the  biggest
proportion  of  their world trade.  This trade will increase
in volume as  India  opens  its  doors.    Investment  flows
between  all  these  countries  will also grow.   East Asian
multinationals  will  emerge  from  the  rapidly  developing
countries,  helping  to  enhance  trade, investments and the
transfer of technology.
23.  Affluence will create greater  demands  for  goods  and
services.  Shipping and air travel for business and pleasure
will  grow  rapidly.   China, which only a decade ago had no
outgoing tourists, now provides East Asia with more  than  a
million tourists a year.  Indians will soon be travelling in
massive numbers.
24.    In  the midst of all these lies Japan, the only Asian
developed  country.    It  is  rich  in  capital,   it   has
world-class    technology    and    has   almost   unlimited
entrepreneural and management talents.    Its  strategy  for
recovery  and  prosperity  was  based  on  the import of raw
materials, processing and adding value  and  then  exporting
the  finished products.  In this it was helped by a generous
United  States,  intent  on  weaning  Japan  away  from  its
militarist past.  Not only did the United States provide the
initial  aid but it also opened its huge market to unlimited
quantities of Japanese goods.  It was fully  convinced  that
Japanese  products  would  never  pose  a threat to American
products either in  America  or  elsewhere  in  the  world's
market.
25.    The  Japanese have every reason to be grateful to the
United States.  Not only were they aided and offered  access
to  the richest market in the world, but they need not spend
much on their own defence.    The  United  States  literally
undertook   to   defend  Japan  against  all-comers.    Thus
expenditure on defence was reduced to the minimum.
26.   Japan's recovery  and  reconstruction  was  rapid  and
complete.  For several years it grew by 12 percent per annum
and  became  very rich.  While it expected access to foreign
markets, its own market remained closed except for  the  raw
materials  it  did  not have.   Countries like Malaysia were
subjected to quotas and  non-tariff barriers even for canned
pineapples.  Manufactured products were and still are almost
entirely  restricted  except  for  those   manufactured   by
Japanese-owned industries located overseas.  Today the trade
balance  between  Malaysia and Japan is very much in Japan's
favour.
27.   Yen credits at low interest  rates  were  extended  to
developing countries like Malaysia.  These were very welcome
indeed.    But then the yen appreciated in value against the
Malaysian ringgit by 100 percent.
28.  What this means is that in terms of Malaysian  currency
we  have  to  repay a 100 million Malaysian ringgit worth of
yen  loan  with  200  million  Malaysian  ringgit  plus  the
interest  on this 200 million Malaysian ringgit.  It was not
a cheap loan at all.  It was very expensive.
29.  We tried to renegotiate the loan  in  order  to  reduce
slightly  our  debt burden to Japan.  We were not given even
one yen reduction.
30.   The endaka was not caused by us. But we the developing
countries have to pay.  Not  only were our debts doubled but
the manufactured  goods from Japan increased in  price.   We
have to pay more for all our  Japanese imports.
31.   On the other hand, the appreciation of the yen against
the US dollar means that in yen terms  Japanese  imports  of
raw  materials,  including  oil,  cost  much less.   The yen
appreciation may make Japanese goods more  costly  and  less
competitive  against  the same products from other developed
countries.   The developed countries gained  from  this  but
developing  countries  like Malaysia gained nothing.  As the
yen has now appreciated by another  50  percent  our  losses
have increased.  Malaysia has decided not to borrow any more
yen.
32.  Japan owes the United States a great debt of gratitude.
I  think  Japan  should always remember this and be loyal to
the United States.  But Japan also owes East Asia and  South
East Asia a great debt.
33.    I  do  not  want  to rake up the past.   The Japanese
conquest and occupation of the countries of East  and  South
East  Asia  and  the  atrocities  committed  then  should be
forgotten.  We should think of the future.
34.  That was why I told  Speaker  Doi  and  Prime  Minister
Murayama  that  I  do  not  think  Japan  should continue to
apologise for her past dark deeds.  I do not see the  German
or Italian leaders making the rounds of European and African
countries  or  Israel  to apologise for what they did during
the war.  Not only do they not apologise  but  they  roundly
criticise  and  condemn  some  of  these countries for human
rights violation,  etc.    They  who  had  committed  crimes
against  humanity  now  stand in judgement over their former
victims.  Why then should every Japanese Prime  Minister  go
round to apologise?
35.   That is why I say as much as  Japan  owes  the  United
States, Japan owes the  East  and South East Asian countries
more,  not just for the past but for the present  also.   We
do not need apologies.  What we need is your cooperation and
your help to develop us.
36.    We called for the formation of the East Asia Economic
Caucus (EAEC) in order to enable us to discuss common issues
and to help the least developed  among  us  to  reconstruct.
The  EAEC  is  not  a trade bloc, not a free trade area or a
customs union.  We have explained often enough that it is  a
forum,  a talk shop, for discussions only.  We are not going
to mount a trade offensive against anyone.   We merely  want
to  have  a fair say in world trade affairs.  We do not want
to be  brushed  aside  as  we  are  now,  when  we  talk  as
individual countries about our problems in world fora.
37.    We are merely asking that Japan join the EAEC; Japan,
the only developed country in East Asia, the only  developed
country  that  is  not  European.   We are disappointed when
Japanese officials asked us to explain and explain all  over
again  what the EAEC is all about.  Even those officials who
have served for years in South East Asia claim that they  do
not know about the EAEC.
38.    We are saddened by this.  The only Asian country with
the ability to help fellow Asian countries refuses to do  so
but  instead demand to know why America is not included, why
Australia and New Zealand are not included?   The answer  is
obvious.    They  are not East Asian.  We would like to be a
member of the European Union, but we are not eligible.    We
would  like  to belong to NAFTA but we are not part of North
America.  Why are people who are not Asian and in East  Asia
supposed  to  have  a  right  to be members of an East Asian
Organisation?
39.  Are we being racist?  If we are then the Europeans with
their European Union and the Americans with their NAFTA must
be more racist.  We want only one Trade Zone and that is the
whole world.  The EAEC will not trade only with itself.   It
will  not  give  trade  privileges to its members.   It only
wants a forum to discuss common problems, to solve them  and
to share development expertise together.  Is it so wrong for
the nations of East Asia to want to prosper?  Is it so wrong
for us to look up to Japan as a model and as a leader?
40.  Japan is Asian.  Japan is of East Asia.  You cannot run
from this geo-cultural fact.  You belong here.
41.   We are not asking you to aid us.  We are asking you to
be a leader in this region.  We are asking you  to  join  us
and  play  a  leading  role.    You have the stature and the
means.
42.  The EAEC is not the  Greater  East  Asia  Co-prosperity
Sphere  that you promoted during the Second World War -- the
Pacific War.  It is not your invention.    It  is  not  your
creation.    It  is  the  brainchild of South East Asia.  We
would not propose it if we think you are going  to  dominate
us.    We  know  that  Japan  has foresworn war and military
adventures.  We merely want you to be our partner, to be our
equal but to be also the first among equals.
43.  It is a small request.  While you think of the help you
have received from others, think also of us in East Asia, in
South East Asia where you test  the  marketability  of  your
products.    As much as others have a claim, we in East Asia
also have a claim on you.  So please recognise that claim.
44.  I did not ask Mr. Murayama not to apologise  because  I
want something from Japan.  In fact, when I dismiss the need
to apologise I also told him that Malaysia does not want the
Yen loan Japan was offering.  I speak frankly and sincerely.
Japan  will  not  be foresaking America by joining the EAEC.
America's fear of the EAEC is without basis.  With Japan  in
EAEC  you can ensure that we will not make any anti-American
decision or policies.  You can play a pivotal role.  If  you
really  wish  to  make  amends  for  your past, this is your
chance.  If you think that we should coexist then  the  EAEC
is  a step towards coexistence, towards mutual help, towards
closer and more meaningful relations among East Asians.