Japanese editorial excerpts -3-

Asian Economic News, Oct 14, 2003

TOKYO, Oct. 10 Kyodo

Selected editorial excerpts from the Japanese press:

A SUMMIT THAT WORKED (IHT/Asahi as translated from the Japanese-language Asahi Shimbun's editorial published Oct. 9)

As Japan fumbles along, China and its southern neighbors are bounding ahead, leaving us and South Korea a lap behind in the dust.

The just-concluded meeting of the Association of Southeast Asian Nations (ASEAN) and leaders of Japan, China and South Korea in Bali clearly rolled out a blueprint for an Asian free trade zone.

Two years ago, China reached accord with ASEAN to conclude a free trade agreement within 10 years. Last year, China signed a framework agreement toward the process, and has since eliminated tariffs on certain farm produce.

China's Prime Minister Wen Jiabao proposed in Bali that feasibility studies be conducted in relation to creating a free trade zone, making it quite clear his country is intent upon accelerating the process.

India, too, has signed the ASEAN framework agreement to be part of the free trade zone. There is still much to be done, but the process has definitely begun toward establishing a free trade zone in a region that has a population of 3 billion people in the ASEAN nations, Japan, China, South Korea and India.

This move toward economic unification is only natural and necessary, given the deepening mutual dependence among Japan, China and South Korea and the ASEAN member nations.

The dynamism of the Asian economy has drawn Japan, China and South Korea to this region. Because of this drawing power, a joint declaration was adopted for the first time to regularize the summit of the leaders of those three countries whenever the ASEAN summit is held.

Although there are subtle differences in the positions of the three nations, it was quite significant that they created a written resolution to resolve the issue of North Korea's nuclear program peacefully in preparation for the next six-party talks. In the area of economic issues, the three nations agreed to jointly study the prospects of liberalizing mutual investment. We hope these steps will become part of the effort to establish an Asian free trade zone.

Meantime, the leaders of the 10 ASEAN nations adopted a new declaration that sets 2020 as the target for establishing an economic community. Modeled after the European Union, this is part of the effort to reinforce the economic unity in the region. The participating nations intend to strengthen their political cooperation as well for the sake of regional community for security.

But fruitful as the Bali summit was in the economic realm, ASEAN once again used the excuse of its ''noninterference'' principle and ignored the internal affairs of Myanmar, overlooking the military dictatorship's continued suppression of civil rights. In Indonesia, military might is being used to suppress the Aceh independence movement. As Islamic radicals become increasingly restive, regional political instability could drag down the economy.

Even so, we have a clear sense that a new optimism is emerging for Asia because the Bali summit brought a realistic perspective to what had been just wishful thinking.

Even Japan, which had always been circumspect about negotiating a free trade agreement with ASEAN out of concern for the domestic agricultural lobby, finally signed onto the Koizumi-initiated framework for comprehensive economic solidarity and decided to commence preparatory talks in 2004. This means that, although Japan still has not really made a commitment to the agreement, it at least understands it cannot continue to swim against the tide.

Asia is moving ahead. We hope Japan will be directly involved in generating the current, rather than just floating aimlessly along.

(Oct. 10)