Reuters-China, Japan Cautious on As

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Subject: Reuters-China, Japan Cautious on Asia Market 

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China, Japan Cautious on Asia Market=20
02:35 a.m. Nov 27, 1999 Eastern=20
By Raju Gopalakrishnan=20

MANILA (Reuters) - China and Japan on Saturday injected a cold dash of =
realism to the vision of a common east Asian market and currency, but =
said there was much room to expand regional economic cooperation.=20

The two economic powerhouses join South Korea for informal talks with =
the Association of South East Asian Nations (ASEAN) later on Saturday =
and a summit meeting on Sunday, expected to discuss the first steps =
toward the concept.=20

``I don't think it is an easy task to reach an agreement on the =
launching of a common regional currency,'' Chinese Premier Zhu Rongji =
said at a Philippine Chamber of Commerce lunch.=20

``Our suggestion is it is best to discuss how to strengthen financial =
cooperation, particularly how to strengthen cooperation in the =
regulation of financial activities. In this way, we can reduce the =
likelihood of another financial crisis.''=20

Japan, which has its own plans for internationalizing the yen, has said =
the idea is good but decades away.=20

``Regular cooperation as embodied by ASEAN has made quite some =
progress,'' a senior Japanese official told reporters.=20

``It seems to be spilling over to north Asia, which is a welcome thing. =
But it is still in its incipient phase.''=20

Many regional officials have spoken in the past week of a vision for a =
common market encompassing the tiger economies of Southeast Asia and =
their three northern neighbors, later a common currency and perhaps even =
a common foreign policy.=20

SINGAPORE ALSO SAYS GO SLOW=20

But Singapore Finance Minister Richard Hu said east Asia -- spanning the =
first world powerhouses of Japan and Singapore to the impoverished, =
largely agrarian economies of Laos and Myanmar -- was too varied to =
adopt a common currency soon.=20

``My own view is, let us set this as a very long-term target,'' he said =
in an interview.=20

``But meanwhile, let's do some of the things that have to be done in =
order to reach it, such as opening up free trade, removing tariffs, =
facilitating increased trade within the region, cooperation on the =
financial sector.=20

``All these are little incremental steps which lead to the final goal. =
Why not start it now?''=20

ASEAN -- comprising Brunei, Cambodia, Laos, Indonesia, Malaysia, =
Myanmar, the Philippines, Singapore, Thailand and Vietnam -- became more =
interdependent during the 1997/98 financial crisis and sees this =
cooperation as one way to regain high growth rates of previous years.=20

The resurgence of the past year has been export-driven and eliminating =
trade barriers forms the core of intra-ASEAN cooperation. Extending =
this, with more access to lucrative Chinese and Japanese markets, is a =
mouth-watering prospect, regional officials have said.=20

CHINA MAY BE LOOKING BEYOND=20

China's Zhu however appeared to be looking beyond east Asia.=20

``With the process of China's entry into the WTO, China will ... offer =
other countries even broader prospects for expanding trade with China =
and more alternatives for investing in China in the near future,'' he =
said.=20

``China cannot develop itself in isolation from the world and the world =
cannot prosper without China.''=20

Analysts have said resolving regional flashpoints are vital before =
moving forward toward a common market, and point to the impasse over the =
disputed Spratly islands.=20

ASEAN had hoped this weekend to ink an agreement settling a dispute over =
right to the potentially oil-rich Spratlys, claimed by China and four =
ASEAN states.=20

China has said it will not be rushed and the most optimistic forecasts =
do not see a deal before the middle of 2000.=20





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<DIV><FONT face=3DArial size=3D2><FONT size=3D+1><STRONG>China, Japan =
Cautious on Asia=20
Market</STRONG></FONT> <BR>02:35 a.m. Nov 27, 1999 Eastern=20
<P><STRONG>By Raju Gopalakrishnan</STRONG>=20
<P>MANILA (Reuters) - China and Japan on Saturday injected a cold dash =
of=20
realism to the vision of a common east Asian market and currency, but =
said there=20
was much room to expand regional economic cooperation.=20
<P>The two economic powerhouses join South Korea for informal talks with =
the=20
Association of South East Asian Nations (ASEAN) later on Saturday and a =
summit=20
meeting on Sunday, expected to discuss the first steps toward the =
concept.=20
<P>``I don't think it is an easy task to reach an agreement on the =
launching of=20
a common regional currency,'' Chinese Premier Zhu Rongji said at a =
Philippine=20
Chamber of Commerce lunch.=20
<P>``Our suggestion is it is best to discuss how to strengthen financial =

cooperation, particularly how to strengthen cooperation in the =
regulation of=20
financial activities. In this way, we can reduce the likelihood of =
another=20
financial crisis.''=20
<P>Japan, which has its own plans for internationalizing the yen, has =
said the=20
idea is good but decades away.=20
<P>``Regular cooperation as embodied by ASEAN has made quite some =
progress,'' a=20
senior Japanese official told reporters.=20
<P>``It seems to be spilling over to north Asia, which is a welcome =
thing. But=20
it is still in its incipient phase.''=20
<P>Many regional officials have spoken in the past week of a vision for =
a common=20
market encompassing the tiger economies of Southeast Asia and their =
three=20
northern neighbors, later a common currency and perhaps even a common =
foreign=20
policy.=20
<P><STRONG>SINGAPORE ALSO SAYS GO SLOW</STRONG>=20
<P>But Singapore Finance Minister Richard Hu said east Asia -- spanning =
the=20
first world powerhouses of Japan and Singapore to the impoverished, =
largely=20
agrarian economies of Laos and Myanmar -- was too varied to adopt a =
common=20
currency soon.=20
<P>``My own view is, let us set this as a very long-term target,'' he =
said in an=20
interview.=20
<P>``But meanwhile, let's do some of the things that have to be done in =
order to=20
reach it, such as opening up free trade, removing tariffs, facilitating=20
increased trade within the region, cooperation on the financial sector.=20
<P>``All these are little incremental steps which lead to the final =
goal. Why=20
not start it now?''=20
<P>ASEAN -- comprising Brunei, Cambodia, Laos, Indonesia, Malaysia, =
Myanmar, the=20
Philippines, Singapore, Thailand and Vietnam -- became more =
interdependent=20
during the 1997/98 financial crisis and sees this cooperation as one way =
to=20
regain high growth rates of previous years.=20
<P>The resurgence of the past year has been export-driven and =
eliminating trade=20
barriers forms the core of intra-ASEAN cooperation. Extending this, with =
more=20
access to lucrative Chinese and Japanese markets, is a mouth-watering =
prospect,=20
regional officials have said.=20
<P><STRONG>CHINA MAY BE LOOKING BEYOND</STRONG>=20
<P>China's Zhu however appeared to be looking beyond east Asia.=20
<P>``With the process of China's entry into the WTO, China will ... =
offer other=20
countries even broader prospects for expanding trade with China and more =

alternatives for investing in China in the near future,'' he said.=20
<P>``China cannot develop itself in isolation from the world and the =
world=20
cannot prosper without China.''=20
<P>Analysts have said resolving regional flashpoints are vital before =
moving=20
forward toward a common market, and point to the impasse over the =
disputed=20
Spratly islands.=20
<P>ASEAN had hoped this weekend to ink an agreement settling a dispute =
over=20
right to the potentially oil-rich Spratlys, claimed by China and four =
ASEAN=20
states.=20
<P>China has said it will not be rushed and the most optimistic =
forecasts do not=20
see a deal before the middle of 2000.=20
<P><BR></P></FONT></DIV></BODY></HTML>

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