2nd ASEAN Summit

Kuala Lumpur—The 2nd ASEAN Summit Conference scheduled on 6 - 8 August in K.L., was attended apart from its five ASEAN heads of government from Malaysia, Singapore, Indonesia, Phillipines and Thailand; three premiers from Japan, Australia and New Zealand who were invited to attend on a major function of further cooperation to strengthen the economic policy especially its role in industrial complementation.

A two day pre-summit meeting was initially arranged to review the economic development and the matters likely to be discussed by the ASEAN heads of government in their post-summit meeting with Australia, Japan and New Zealand. Due to the late arrival of the Indonesia and Philippines officials, this meeting was postponed and reduced to two hours instead.

The extended invitation to the leaders from Australia, Japan and New Zealand (or the post summit talk was said to be that ASEAN has confidence in their internal consolidation and therefore able to extend their external relations.

The formation of ASEAN in 1967 was according to Tunku, "to serve as a bulwark against any effort of communist China. However, in 1975 when great victory was achieved by the Indo-Chinese people, ASEAN faced up with a unified nation, it was then realised that they should group together to achieve economic cooperation to enhance the chances of political stability. Owing to the different interests each represents within their own sphere, the five member countries do not function as one. This was not only manifested with a lot of bilateral activities among the ASEAN leaders.

Since the last ASEAN Summit Conference in February last year, little progress had been made for a joint approach to industrial development and inter-ASEAN trade. Philippines attributed the cause to "not having enough political will to implement decisions that we (ASEAN) would like to see enforced the common good of the region". This was admitted by Singapore foreign minister that political will had collapsed over the question of industrial implementation. He referred this to the agreement of five industrial projects—urea plants for Malaysia and Indonesia, diesel engines for Singapore, Soda ash for Thailand and super-phosphates for the Philippines—which remained stagnant until today.

Presuming that the ASEAN leaders had now reached a stage of consensus that this five industrial project was brought up with Japan hoping for a US $1 billion finance. Japan expressed her hesitance of "favourable consideration" prompted Singapore Premier Mr Lee to blame the ASEAN heads for not reaching a "different stage of consensus" and hence not at all surprise at Japan's move knowing how thorough they were at their ground work.

ASEAN basis.

It is not surprising that "ASEAN unity" could be disturbed again and that the implementation of the investment is yet to be seen.

On the issue of Philippines' claim on Sabah from Malaysia, President Marcos offered what he called "a sacrifice" for ASEAN unity, announcing that Philippines was ready to drop its claim to Sabah.

An agreement to set up a ministerial-level consultative committee to discuss trade and other problems. Australia agreed a $10 million joint development project under ASEAN-Australia economic co-operation.

New Zealand had given assurance to help exports from ASEAN countries to a secure and greater share in its markets.

A general consensus on many economic projects had been agreed mutually between the ASEAN heads and the three guest-leaders. However, the implementation of them are yet to be followed.