ASEAN summit ends with call to expedite $120 bil. Asian reserve pool

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HUA HIN, Thailand, March 1 Kyodo -
Leaders of the 10-member Association of Southeast Asian Nations ended their
annual summit on Sunday with a call for an expeditious conclusion of an Asian
regional pool of foreign reserves to be worth up to $120 billion, most of which
is to be contributed by Japan, China and South Korea.
The call came in a statement on the global economic and financial crisis that
was issued at the end of the two-day summit held at a beach resort some 200
kilometers south of Bangkok.
The ASEAN leaders commended last month's decision by their finance ministers
and those of Japan, China and South Korea to expand the existing regional pool
of foreign reserves from around $80 billion to up to $120 billion as one of the
measures to boost confidence and restore financial stability in the region.
Underscoring the ''urgency'' of launching the fund, ASEAN leaders tasked their
finance ministers ''to continue working with their Plus Three counterparts to
resolve remaining issues in order to operationalize this arrangement
expeditiously.''
Thai Prime Minister Abhisit Vejjajiva, as the ASEAN chairman, told a news
conference the regional fund is needed ''to provide a model and example for the
future financial architecture of the global community,'' and not because there
is any urgent need to use the facility.
He said it was not designed to be a substitute for the global financial
institutions but to supplement and compliment those existing facilities.
The expansion of the regional currency swap arrangement, which is to be coupled
with a strengthening of the regional surveillance process, is due to be
finalized in May when the 13 finance ministers meet in Bali and determine the
actual allocation of funds by each country.
Japan, China and South Korea have agreed to contribute 80 percent of the fund
while the rest will be covered by the 10 ASEAN countries.
The ASEAN leaders called for ''bold and urgent reform of the international
financial system to achieve a more comprehensive, equitable and inclusive
system that takes into consideration the interests and voices of the emerging
and developing economies.''
They also stressed the importance of strengthening the existing financial and
regulatory framework to safeguard the region from future economic and financial
crises.
As part of efforts to ensure export markets remain open, ASEAN leaders said
they ''agreed to stand firm against protectionism and to refrain from
introducing and raising new barriers.''
At the press conference, Abhisit said ASEAN countries ''are firmly committed to
free trade.''
''We'll also alert each other of any protectionist measure that we encounter so
that we can take concerted action against such measure,'' he said.
Thailand, as host of next month's 16-nation East Asia Summit between ASEAN
leaders and their counterparts from Japan, China, South Korea, India, Australia
and New Zealand, will extend invitations to leaders of other countries in Asia
and the Pacific to attend the summit, according to Abhisit.
''This I think will be an additional step towards building an Asian regional
framework of cooperation, particularly in the area of the economy,'' he said.
He did not specify which countries' leaders could be invited to the annual
summit, which has been held three times so far and will next be held April
10-12.
ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the
Philippines, Singapore, Thailand and Vietnam.
==Kyodo
2009-03-01 21:05:01