[Title] APEC Leaders' Statement on Fighting Terrorism and Promoting Growth

One year ago in Shanghai, meeting in the shadow of the attacks of September 11, 2001, we condemned international terror in the strongest terms and resolved to strengthen our cooperation in combating terror. In the year since, much has been accomplished. Yet much more remains to be done, and today we declare our strong commitment to put in place - as soon as possible - specific, additional measures needed to fully implement the broad principles we stated in the Shanghai Counter-Terrorism Statement.

The recent terrorist bombing in Bali, Indonesia carried out on October 12, 2002 reminds us of terrorism's brutality and the global imperative to oppose and fight this threat wherever it may be found. We condemn this mass slaughter of the innocent, many of whom were Indonesian and Australian citizens, and offer our deepest sympathies and condolences to the victims and their families.

Terrorism is a direct challenge to APEC's goals of free, open and prosperous economies and an affront to the fundamental values that APEC members share. We are united in our determination to end the threat that terrorism poses to our shared goals and committed to accelerate our progress towards the anti-terror goals and programs set forth last year in Shanghai.

Progress Since Shanghai

A year ago, we promised to strengthen cooperation at all levels in combating terrorism in a comprehensive manner and to faithfully implement our obligations under the United Nations. Since Shanghai, we have made important progress in working individually, bilaterally, regionally and globally, to meet our United Nations obligations, break up terrorist cells, and disrupt terrorist financing.

We are implementing the measures called for in relevant U.N. Security Council Resolutions, and are putting in place the legal and regulatory mechanisms to implement Resolution 1373.

Each of the relevant members of APEC has signed and ratified -- or is proceeding to ratify immediately -- the International U.N. Convention for the Suppression of the Financing of Terrorism.

We have established improved subregional and regional counter-terrorism mechanisms, significantly increasing the sharing of information between enforcement and intelligence officials.

We have upgraded security at the region's major ports and airports. Collectively, we are working in APEC to introduce more effective baggage screening in airports in the region, improve coordination between immigration officials, implement new cyber security standards, advance the Energy Security Initiative to address disruptions in energy markets, and enhance anti-piracy cooperation.

Joint Commitment to Fully Implement Shanghai Counter-terror Statement

These measures have made important contributions to the fight against global terror. But more is needed. As we accelerate our progress against terrorism, APEC economies must also move to meet the challenge of encouraging global economic growth and bringing the benefits of global markets to all our peoples.

Consequently, we must grow our economies even as we protect our borders and find new ways to secure our key economic infrastructure from terrorist attacks.

Accordingly, we, the Leaders of APEC, agree to the following additional joint actions to fully implement the broad commitments we made last year in Shanghai. We endeavor to ensure that key Pacific Rim infrastructure in the areas of trade, finance and information systems is protected by:

ENHANCING SECURE TRADE IN THE APEC REGION ("STAR")

APEC represents 60 percent of the world's GDP and half of its trade. Most of the world's top megaports are in APEC economies, as are most of the world's busiest airports. We will work together to secure the flow of goods and people through measures to:

- Protect cargo by

-- Implementing expeditiously a container security regime that would assure in-transit integrity of containers, identify and examine high-risk containers, and working within international organizations to require the provision of advance electronic information on container content to customs, port, and shipping officials as early as possible in the supply chain, while taking into consideration the facilitation of legitimate trade.

-- Implementing by 2005 wherever possible the common standards for electronic customs reporting developed by the World Customs Organization that provide data to target high-risk shipments and facilitate trade.

-- Promoting private-sector adoption of high standards of supply chain security, as developed by the private sector and law enforcement officials.

- Protect ships engaged in international voyages by

-- Promoting ship and port security plans by July 2004 and installation of automatic identification systems on certain ships by December 2004.*

-- Enhancing cooperation on fighting piracy in the region between APEC fora and organizations such as the International Maritime Bureau Piracy Reporting Center and International Maritime Organization (IMO).

-Protect international aviation by

-- Improving airline passenger and crew safety by introducing, highly effective baggage screening procedures and equipment in all APEC international airports as soon as possible, and in any case by 2005; accelerating implementation of standards for reinforced flight deck doors for passenger aircraft by April 2003 wherever possible; and supporting International Civil Aviation Organization (ICAO) mandatory aviation security audits.

-- Enhancing air cargo security by promoting adoption of the guidelines developed by ICAO and the International Air Transport Association (IATA).

- Protect people in transit by

-- Implementing as expeditiously as possible a common global standard based on UN EDIFACT for the collection and transmission of advance passenger information.

-- Adopting standards for application of biometrics in entry and (where applicable) exit procedures and travel documents such as those being developed by the ICAO and the International Standards Organization.

-- Assuring the highest possible integrity of all government officials who are involved in border operations.

HALTING TERRORIST FINANCING

We will jointly work to deny terrorists access to the world's financial system and use the money trail to locate and apprehend terrorists, in line with the comprehensive approach adopted by our Finance Ministers in September, including through measures to:

- Fully implement U.N. and other international instruments by

-- Endeavoring to ratify the International Convention for the Suppression of the Financing of Terrorism no later than October 2003.

-- Implementing quickly and decisively all measures needed to prevent terrorists and their supporters from accessing the international financial system, as called for in U.N. Security Council Resolutions 1373 and 1390. These measures include:

--- effective blocking of terrorist assets;

--- criminalization of the financing of terrorism;

--- increased efforts to investigate and prosecute money launderers and terrorist financiers;

--- preventive steps to protect the integrity of the financial system by regulating and supervising the financial sector consistent with international standards;

--- joint identification and designation of targets of regional interest.

-- Supporting the FATF's Eight Special Recommendations on terrorist financing and pledging to comply as quickly as possible with the recommendations; calling on the IMF and World Bank, in coordination with FATF, to begin conducting integrated and comprehensive assessments of countries' efforts to implement these recommendations and identifying jurisdictions which need technical assistance.

- Promote better monitoring of alternative remittance systems and non-profit organizations by

-- Supporting the work of APEC finance officials and regional bodies on alternative remittance systems, including an analysis of the factors that encourage their use.

-- Protecting non-profit organizations and well-meaning donors from having their funds misused by terrorist financiers, and endorsing FATF's recently announced best practices for preventing abuse of charitable institutions by terrorists.

- Enhance law enforcement and regulatory capabilities by

-- Establishing or identifying by October 2003 a financial intelligence unit (FIU) in each member economy, and taking steps to enhance information sharing with other FIUs.

-- Supporting private sector initiatives such as the Wolfsberg Statement on the Suppression of the Financing of Terrorism and endorsing cooperation between financial institutions and governments.

PROMOTING CYBER SECURITY

Citizens of APEC economies now account for over half of the world's Internet users. The global communications network is only as secure as its weakest link, and we collectively commit to:

- Endeavor to enact a comprehensive set of laws relating to cybersecurity and cybercrime that are consistent with the provisions of international legal instruments, including United Nations General Assembly Resolution 55/63 (2000) and Convention on Cybercrime (2001), by October 2003.

- Identify national cybercrime units and international high-technology assistance points of contact and create such capabilities to the extent they do not already exist, by October 2003.

- Establish institutions that exchange threat and vulnerability assessment (such as Computer Emergency Response Teams) by October 2003.

We also call for closer cooperation between law enforcement officials and businesses in the field of information security and fighting computer crime.

IMPLEMENTATION AND CAPACITY BUILDING

Building an APEC region - and a global economic system - that is both more secure and more efficient is a monumental undertaking - and one that is critically important to the peace and prosperity of our planet. Success in fulfilling this vision will require enhanced cooperation, new procedures, and greater use of advanced technology.

We call on APEC officials to continue to cooperate in implementation of the joint actions outlined above and monitor progress of implementation. It is also important that all APEC economies develop the capacity to participate fully in this endeavor. Accordingly Leaders commit to work cooperatively to build capacity throughout the region so that all economies can benefit from the resulting gains in security and prosperity.

To build on the considerable counter-terrorism-related training and other assistance already being undertaken in the APEC region, we:

- Welcome new commitments by APEC members to contribute further to these capacity-building efforts,

- Commend current efforts by the international financial institutions to build counter-terrorism capacity in APEC economies and call on them to work with APEC members to further improve APEC member capacity,

- Encourage the private sector to work in partnership with APEC economies to implement secure trade measures, and

- Emphasize that counter-terrorism capacity-building in APEC needs to be demand-driven.

*Russia supports promoting ship and port security plans by July 2004 and installation of Automatic Identification Systems on certain ships by December 2004, but notes that technical issues relating to Russia may require extending the timeframe to no later than December 2006.