Reuters-Excerpts from statement of

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Subject: Reuters-Excerpts from statement of ASEAN finance ministers

Saturday March 20, 12:43 am Eastern Time
Excerpts from statement of ASEAN finance ministers
HANOI, March 20 (Reuters) - Finance ministers from the Association of South
East Asian Nations (ASEAN) wrapped up talks on Saturday that focused on
economic recovery in the region and the challenges that lie ahead.

Following are excerpts from a final statement issued after the completion of
the two-day meeting in the Vietnamese capital Hanoi. ASEAN comprises Brunei,
Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and
Vietnam.

- - - -

ASEAN is confident that 1999 will witness improved economic prospects for
the region.


    Signs of economic recovery in ASEAN are:
    -- Return of stability in foreign exchange markets.
    -- Rising current account surpluses and a build-up of
reserves.
    -- Substantial decline in domestic interest rates.
    -- Easing of inflationary pressures.
    -- Recovery in stockmarkets.
    -- Improved consumer sentiment.
    -- Levelling off in contraction of industrial production.
    ASEAN's recovery will face the following challenges:
    -- The risk of rising protectionism.
    -- A sharp reversal in the U.S. stock market.
    -- Weakness in the Japanese economy.
    -- Exchange rate misalignment of major currencies.
    -- Uncertainty of external financial flows.
    The statement urged industrial countries to take the lead
in sustaining global demand and to minimise excessive volatility among the
major currencies.
ASEAN also listed 12 points of view on reform of the international financial
architecture. They included:

-- Strengthening the international financial architecture needs to include a
review of the roles of international financial institutions, as well as
international regulatory bodies to enhance their capacity and capability to
contain and resolve crises.

-- Dissemination of necessary information will help investors make better
decisions and not rely solely on rating agencies. There should be more
transparency in the rating process.

-- There should be closer and more coordinated monitoring of short-term
capital flows.

-- Standards of transparency and disclosure must be applied equally to
public and private sectors.


-- We support an orderly and well-sequenced approach to capital account
liberalisation in tandem with the degree of development of the various
domestic financial sectors.

-- There is no single exchange rate regime that is suitable for all
countries. Countries have the right to choose their own exchange rate regime
based on their national objectives.

-- ASEAN will adopt a more proactive role to ensure its interests are given
due consideration.

ASEAN finance ministers also said they appreciated Japan's assistance to
members affected by the regional economic crisis, particularly via the $30
billion Miyazawa Plan. Ministers urged Japan to expedite disbursement of
funds under the plan.