[Title] Joint Statement of the Meeting of ASEAN Heads of Government and the Prime Minister of Japan

1. On the invitation of the ASEAN Heads of Government, the Prime Minister of Japan H.E. Mr. Takeo Fukuda, met the ASEAN Heads of Government in Kuala Lumpur on 7 August 1977, upon completion of the Meeting of the ASEAN Heads of Government.

2. The Meeting with the Prime Minister of Japan was attended by the President of Republic of Indonesia, H.E. General Soeharto; the Prime Minister of Malaysia, H.E. Datuk Hussein Onn; the President of the Republic of the Philippines, H.E. Mr. Ferdinand E. Marcos; the Prime Minister of the Republic of Singapore, H.E. Mr. Lee Kuan Yew; the Prime Minister of Thailand, H.E. Mr. Thanin Kraivixien.

3. The Prime Minister of Japan was accompanied by the Minister for Foreign Affairs H.E. Mr. I. Hatoyama, the Minister of State, Chief Cabinet Secretary, H.E. Mr. S. Sonoda and the Minister of international Trade and Industry, H.E. Mr. Tanaka.

Accompanying the ASEAN Heads of Government were :

Indonesia

Minister for Foreign Affairs, H.E. Mr. Adam Malik;

Minister of State for Economic, Financial and industrial Affairs/Chairman of National Development Planning Agency, H.E. Prof. Dr. Widjojo Nitisastro;

the Minister for Trade, H.E. Mr. Radius Prawiro;

the Minister for Industry, H.E. Mr. M. Jusuf;

and the Minister/State Secretary, H.E. Mr. Sudharmono.

Malaysia

The Minister of Foreign Affairs Affair H.E. Tengku Ahmad Rithauddeen;

the Minister of Trade and Industry, H.E. Datuk Haji Hamzah bin Datuk Haji Abu Samah;

the Minister of Communications, H.E. Tan Sri V. Manickavasagam;

the Minister of Agriculture, H.E. Datuk Ali bin Haji Ahmad;

the Minister of Primary Industries, H.E. Datuk Musa bin Hitam;

the Minster of Finance, H.E. Tengku Tan Sri Razaleigh Hamzah.

Philippines

The Secretary of Foreign Affairs H.E. Secretary Carlos P. Romulo;

the Secretary of Finance, H.E. Secretary Cesar E.A. Virata;

the Secretary Economic Planning, H.E. Secretary Gerardo P. Sicat;

the Secretary of industry, H.E. Secretary Vicente T. Paterno;

the Secretary of Trade, H.E. Secretary Troadio T. Quiazon Jr.

Singapore

The Minister for Foreign Affairs, H.E. Mr. S. Rajaratnam;

The Minister for Finance H.E. Mr. Hon Sui Sen;

The Senior Minister of State for Foreign Affairs, H.E. Mr. Lee Khon Choy.

Thailand

The Minister of Foreign Affairs, H.E. Dr. Upadit Pachariyangkun;

the Minister of Commerce, H.E. . Suthee Natvaratat.

5. The Meeting vas held in a friendly and cordial atmosphere reflecting the traditionally close ties between Japan and the ASEAN countries.

6. The Prime Minister of Japan was informed of the progress and achievements of ASEAN, in particular since the Meeting f the ASEAN Heads of Government in Bali in February, 1976. He was also informed of the results of the Meeting of the ASEAN Heads of Government in Kuala Lumpur. It was emphasized that ASEAN s established with the aim of accelerating the economic growth, social progress and cultural development of the region. It was noted that the significant achievements during the years of ASEANs existence and the results of the recently concluded Meeting of ASEAN Heads of Government were positive indicators of the viability and vitality of ASEAN as a self-reliant regional association which would contribute to the stability and progress of Southeast Asia.

7. The Prime Minister of Japan Depressed his sincere appreciation for the role played by ASEAN towards ensuring peace progress and prosperity and stability in Southeast Asia and, in particular, for the positive steps taken by ASEAN towards strengthening regional cooperation in accordance with the programme of action adopted at the Meeting of the ASEAN Heads of Government in Bali. The Prime Minister of Japan congratulated the ASEAN Heads of Government on the concrete results achieved at the recent Meeting of the ASEAN Heads of Government in Kuala Lumpur. He expressed japans desire to assist ASEAN regional economic cooperation programmes and to further strengthen the relations of interdependence between Japan and ASEAN.

8. The state of ASEAN cooperation with Japan was discussed. The ASEAN Heads of Government and the Prime Minister of Japan, recognizing that close and friendly bilateral relations already exist between Japan and the individual countries of ASEAN, noted that concrete progress has bee. achieved in Japan-ASEAN relations. In particular, conference as made to the ASEAN-Japan Forum on Synthetic Rubber, established in November, 1973, ,which has produced noteworthy results 1. improving cooperation between Japan and ASEAN on the question of rubber, including financial assistance for the establishment of a type-testing and development laboratory and the strengthening of the rubber research centres in ASEAN. it was noted further that ASEAN Japan dialogue was formulated and expanded with the establishment of the ASEAN - Japan Forum in March 1977, to formulate, review and recommend measures for cooperation on a regular basis.

9. The ASEAN Heads of Government and the, Prime Minister of Japan agreed that cooperation between ASEAN and Japan should be expanded and that Japanese cooperation with ASEAN should be extended in such a manner as to contribute towards ASEANs efforts at self-reliance in order to enhance ASEANs economic resilience and consolidate further ASEANs solidarity. They agreed to develop through such cooperation a special and close economic relationship between ASEAN countries and Japan in the spirit of partnership.

10. The ASEAN Heads of Government and the Prime Minister of Japan recognized the need for a steady expansion of trade between ASEAN and Japan. and expressed the hope that trade would continue to develop further for the benefit of both sides. The ASEAN Heads of Government requested Japans cooperation in improving access of Japanese markets for manufactured, semi-manufactured and primary product exports from ASEAN. The Prime Minister of Japan expressed Japans readiness to facilitate ASEANs effort to increase exports to Japan through various measures including further examination of ASEAN requests for removal and/or relaxation of tariff barriers within the context of the MTN, improvement of Japans GSP and the introduction. of ASEANs cumulative rule of origin under Japans GSP. He also affirmed Japans readiness to cooperate with ASEAN countries in their efforts for promoting exports f their products to Japan through measures including the establishment of a permanent ASEAN trade and tourism exhibition hall in Tokyo.

11. Noting that the existing exports of ASEAN to Japan consist mainly of primary commodities, the ASEAN Heads of Government and the Prime Minister of Japan discussed the establishment of a system along the lines of the STABEX Scheme (Stabilization of Exports Earnings) to stabilize, coning from exports of ASEANs primary commodities as an important supplementary measures to price stabilization schemes and to the IMF compensatory financing facility. The Prime Minister of Japan expressed his understanding for ASEANs desire to establish a STABEX Scheme and agreed to conduct a joint examination on the various problem in connection with the stabilisation of export earnings from primary commodities.

12. The Prime Minister of Japan affirmed his country's readiness to extend assistance towards the realisation of ASEAN Industrial projects. In this regard, Japan agreed to extend financial assistance in -various forms to one ASEAN industrial project in each ASEAN country, provided that each project is establish, d as a. ASEAN project and that its feasibility as confirmed. The Prime Minister of Japan would consider, favourably the request for the total amount of one billion. US Dollars in extending such assistance. Such assistance would be extended on concessional terms to the extend possible in accordance with the nature and requirement of the projects. The Prime Minister of Japan assured that japans cooperation with each ASEAN country ill not be affected thereby. Further, the Government of Japan, upon specific request, was prepared to consider giving various forms of technical assistance which might become necessary in the process of completing the projects.

13. The ASEAN Heads of Government expressed their satisfaction over the role played by japans economic and technical cooperation in complementing ASEANs effort for economic and social development. The Prime Minister of Japan reaffirmed Japan's intention to more than double its official Development Assistance in the next five years. In this respect, the Prime Minister of Japan stated that greater emphasis would be placed upon the cooperation with ASEAN countries in this process of increasing assistance.

14. The ASEAN Heads of Government stressed the importance of continued and intensified investment by the Japanese private sector to contribute to the Acceleration diversification of industrial development in ASEAN in particular in industries which would be more suited for location in ASEAN countries including among others those which are labour intensive and/or those which rely heavily on ASEAN raw, materials and components. The Prime Minister of Japan expressed his willingness to encourage the Japanese private sector to participate actively in the devel- opment of ASEAN through investment and the transfer of technology taking fully into account these vies expressed by ASEAN. In this respect, the ASEAN Heads of Government stated that ASEAN countries would continue to take measures to promote private foreign investment.

15. The ASEAN Heads of Government and the Prime Minister of Japan expressed their continuing interest in improving the climate for international economic cooperation. in particular they underlined the importance of achieving solutions to outstanding problems, in particular those of developing countries, as identified on the final session - of the Conference on International Economic Cooperation in May, 1977 as well as in their mutual understanding and strengthen ties between. ASEAN countries and Japan. The Prime Minister of Japan further proposed that a joint study be undertaken to determine the kind of cooperation required in connection with ASEANs effort to promote cultural cooperation within ASEAN. He also stated that Japan is prepared to contribute to these efforts including an appropriate amount- of financial cooperation, taking into account the results of the study. The ASEAN Heads of Government welcome the proposal and both sides agreed to set up a joint study group for this purpose.

16. The ASEAN Heads of Government and the Pie Minister of Japan expressed their satisfaction that the discussion has ushered in a new era of cooperation and understanding between ASEAN countries and Japan which recognises the increasing interdependence between then. They expressed the conviction that closer cooperation between ASEAN and Japan would contribute substantially to the maintenance of peace and stability in Asia.

17. Both sides agreed that ASEAN Japan cooperation should not be limited to material exchanges but should be armed at building lasting foundations of mutual trust and understanding. The Prime Minister of Japan assured the ASEAN Heads of Government that Japan would support the efforts of ASEAN to achieve self-reliance and solidarity. The ASEAN Heads of Government, recognising that there exist an especially close friendship between ASEAN and Japan, welcome this assurances. The Prime Minister of Japan set forth the position of Japan which has pledged to follow a peaceful course and not to become a military power and the consequent determination of japan to contribute to world peace and prosperity in its status as a stabilizing force in Asia and as an economically important nation in the world. The ASEAN Heads of Government expressed their understanding and appreciation of the Japanese position and determination.

18. The ASEAN Heads of Government and the Prime Minister of Japan stated that the situation as it exists today presents an opportunity for the countries in Southeast Asia to shape new relationships, irrespective of differences in political, economic and social systems in order that long-term peace and stability is achieved through the strengthening of dialogues and common desire of all countries to improve the well-being of the peoples of the region. They reaffirmed the. determination to intensify their efforts to achieve these objectives.

19. The ASEAN Heads of Goverment and the Prime Minister of Japan recognizing that their meeting has been extremely beneficial aid useful to both sides, expressed the hope that the results of their deliberations would be further consolidated and complemented in the scheduled bilateral discussions on the occasion of the Japanese Prime Ministers subsequent visit to the respective ASEAN nations. They regarded their meeting as manifesting the interest at the highest level in promoting ASEAN-Japan cooperation. The ASEAN Heads of Government and the Prime Minister of Japan agreed that contact and consultations between ASEAN countries and Japan should be further expanded through the ASEAN Japan Forum and diplomatic channels.

20. The Prime Minister of Japan thanked the ASEAN Heads of Government for having invited him to the meeting while the ASEAN Heads of Government expressed their appreciation for his acceptance of the invitation. This as the first occasion on which Japan and ASEAN had met together at Heads of Government level. The five ASEAN Heads of Government and the Japanese Prime Minister agreed that this historic meeting had been of great value in furthering the strong and friendly ties that have linked Japan with these five countries. All six Heads of Government agreed that this meeting at the highest level demonstrated their mutual desire to enhance ASEAN Japan coopera- tion

21. The Prime Minister of Japan expressed his sincere appreciation to the people and government of Malaysia for the warm hospitality accorded to him and the Japanese delegation and for the excellent arrangements made for the meeting.