Reforms for the New Era of Japan and ASEAN: For a Broader and Deeper Partnership 9789814377249

Citation preview

REFORMS FOR THE NEW ERA OF JAPAN AND ASEAN

Mr Ryutaro Hashimoto

Singapore Lecture 14 January 1997

REFORMS FOR THE NEW ERA OF JAPAN AND ASEAN For a Broader and Deeper Partnership

Ryutaro Hashimoto

Institute of Southeast Asian Studies 1997

The Institute of Southeast Asian Studies (ISEAS) was established as an autonomous organization in 1968. It is a regional research centre for scholars and other specialists concerned with modern Southeast Asia, particularly the many-faceted problems of stability and security, economic development, and political and social change. The Institute's research programmes are the Regional Economic Studies Programme (RES) including ASEAN and APEC, Regional Strategic and Political Studies Programme (RSPS), Regional Social and Cultural Studies Programme (RSCS), and the Indochina Programme (ICP). The Institute is governed by a twenty-two-member Board of Trustees comprising nominees from the Singapore Government, the National University of Singapore, the various Chambers of Commerce, and professional and civic organizations. A ten-man Executive Committee oversees day-to-day operations; it is chaired by the Director, the Institute's chief academic and administrative officer.

Cataloguing in Publication Data Hashimoto, Ryutaro. Reforms for the new era of Japan and ASEAN: for a broader and deeper partnership. 1. ASEAN countries- Foreign economic relations -Japan 2. Japan -Foreign economic relations - ASEAN countries 3. ASEAN countries- Relations- Japan. 4. Japan- Relations - ASEAN countries. I. Title. DS525.9 J3R34 1997 sls97-8474 ISBN 981-3055-72-3 ISBN 0129-1912 Published by Institute of Southeast Asian Studies Heng Mui Keng Terrace Pasir Panjang Singapore 119596 ©

1997 Institute of Southeast Asian Studies, Singapore

Internet E-mail: publish @merlion.iseas.ac.sg World Wide Web: http://merlion.iseas.ac.sg/pub.html All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the Institute of Southeast Asian Studies. Typeset by The Fototype Business Printed in Singapore by Prime Packaging Industries Pte Ltd

CONTENTS

I

II

Opening Address

Tony Tan

Reforms for the New Era of Japan and ASEAN

Ryutaro Hashimoto

III

Discussion

IV

Closing Remarks

5

17

Chia Siow Yue

23

I

Opening Address Tony Tan

Prime Minister of Japan, Mr Ryutaro Hashimoto; Prime Minister Goh Chok Tong; Honourable Ministers; Your Excellencies; ladies and gentlemen. It gives me great pleasure to welcome you to the 15th Singapore Lecture. The prestigious Singapore Lecture series was inaugurated in 1980. This morning, we are honoured that His Excellency Mr Ryutaro Hashimoto, the Prime Minister of Japan, has agreed to deliver the Singapore Lecture. Prime Minister Hashimoto will be the first Japanese leader to address this forum. I am confident that his message today will resonate throughout the region and give the world a glimpse of his personal vision for Japan in the 21st century. We are honoured that he has chosen Singapore as the venue to convey his message to our region. Prime Minister Hashimoto is visiting Singapore at a time when his administration is seized with the ongoing crisis in Peru. His decision to proceed with the visits to the ASEAN countries is laudable. Both Singapore and ASEAN appreciate this gesture. It has demonstrated the importance that Japan accords to its relations with ASEAN. We hope that the crisis in Peru will be peacefully resolved soon. It was with the same courageous and bold attitude that Prime Minister Hashimoto led his party to victory in Japan's elections in October 1996. It was then a difficult time of change and anxiety for Japan. Domestically, Japan was faced with the jusen crisis. Calls for reform of the bureaucracy were becoming increasingly shrill. 1996 was an election year and these issues posed domestic conundrums that could not be easily resolved.

2

On the foreign policy front, the Okinawa rape case imperiled not only Japan-U.S. relations but the continued U.S. presence in the region. It threatened to leave an open wound in a relationship which the U.S. had described as the most important relationship across the Pacific. The region became anxious. Japan had been an anchor of continued U.S. presence in the region but it appeared that this had been an assumption that could not be taken for granted. Under Prime Minister Hashimoto's capable and deft handling, these thorny issued were resolved. The Prime Minister successfully pushed through a credible Diet package as a solution to the jus en problem. He has established a high-powered Commission to address the issue of administrative reforms. In the October 1996 elections, Prime Minister Hashimoto led the Liberal Democratic Party in an impressive showing of popular support. And perhaps, most importantly for the region, Prime Minister Hashimoto has restored the balance to a troubled U.S.-Japan relationship which for so long had underpinned the peace, prosperity and security of this region. After one year of Prime Minister Hashimoto's leadership, Japan is on the path of greater stability and renewal. Apart from the courageous traits which Prime Minister Hashimoto has clearly exhibited, his personal qualities and experience are impressive. He entered politics at the young age of 26 and is now serving his twelfth term in the House of Representatives. His years of experience in party politics and in the government now exceed 32 years. His political career includes several important Cabinet portfolios, including Finance, Trade and Industry, Transport and Health and Welfare. In Japan, many of his fellow politicians as well as his critics credit him with a keen intellect and an ability to influence and manage a powerful bureaucracy. Reading about developments in Japan over the last year, I am struck by the Prime Minister's deep sense of conviction and determination to remake Japan into a truly great nation. I am reiterating what many analysts of Japan are predicting when I say that Prime Minister Hashimoto promises to be one of the more effective and longer-serving

3

Prime Ministers that Japan will experience. He will certainly leave his mark on Japanese politics and history. It now gives me great pleasure to call on Prime Minister Hashimoto to deliver the 15th Singapore Lecture entitled "Reforms for the New Era of Japan and ASEAN: For a Broader and Deeper Partnership".

II

REFORMS FOR THE NEW ERA OF JAPAN AND ASEAN For a Broader and Deeper Partnership Ryutaro Hashimoto

Your Excellency Prime Minister Goh Chok Tong, Your Excellency Dr Tony Tan Keng Yam, Deputy Prime Minister and Minister for Defence, Excellencies, Ladies and gentlemen, I am honoured to have the opportunity to express my views on Japan-ASEAN relations in this Singapore Lecture, so famed for its long tradition. On my current visit to Southeast Asia, I have been received warmly in Brunei Darussalam, Malaysia, Indonesia, Vietnam, and here in Singapore. I would like to take this opportunity to thank everyone who helped make these visits successful. Throughout this visit, I felt very strongly the dynamic desire of people in this region to create free, open, and vibrant societies. This experience has renewed my belief that Southeast Asia and the entire Asia-Pacific are now embarking on a new era. This year marks the 30th anniversary of the foundation of the Association of the Southeast Asian Nations (ASEAN). In the meantime, the Cold War between the United States and the Soviet Union has ended in world politics, and the world economy has become more integrated than ever before, with capital, labour, and technology freely moving beyond national borders, stimulated by advanced information technologies and economic liberalization. In the Asia-Pacific, many countries enjoy economic prosperity while China has increased its presence participating in the free market economy. In Southeast Asia, conflicts between ASEAN and Indochina during the Cold War have become things of the past. Following the entry of Vietnam into ASEAN in July 1995, it was agreed last year to simultaneously admit Cambodia, Laos, and Myanmar some time in the future. A socalled "ASEAN 10" is now close to reality.

5

6

ASEAN holds a unique position in the world as a successful model, achieving both political stability and economic growth. ASEAN's active diplomatic initiatives have produced spectacular achievements. The ASEAN Regional Forum (ARF) is making steady progress as a multilateral security framework contributing to regional stability, and in addition to the Asia Pacific Economic Cooperation (APEC), the Asia-Europe Meeting (ASEM) has been launched as an historic undertaking to strengthen relations between Asia and Europe. I would like to stress here that throughout the 30 years of ASEAN, Japan has consistently been its friend. Together we have followed the path towards economic prosperity, helping each other. As you probably remember, in 1977 then Prime Minister Fukuda launched the so-called "Fukuda Doctrine", and in 1987 then Prime Minister Takeshita proposed that Japan and ASEAN establish a new partnership. Today, four years left for the 21st century, I would like to deliberate with you on how Japan and ASEAN should reform their co-operative relationship in a manner suitable for a new era. Ladies and gentlemen, Although ASEAN has so far achieved remarkable successes in both political and economic fields, it is faced with several new challenges emerging in the Asia-Pacific. Despite growing economic prosperity, problems of poverty persist. In the long process towards a society in which every citizen can enjoy freedom and equality, some ideals have yet to be fully realized. Concerns exist that while economic development enriches people's lives, unique traditional cultures could be neglected. ASEAN's efforts are required to sustain an open international economic system, to take bold steps for domestic structural reforms, and to advance indigenous innovation, so that it can maintain its economic prosperity. Furthermore, the rapid economic growth now under way could exacerbate

7

several problems such as environmental impact, food and energy shortages, population growth, AIDS, and narcotics. Expansion of ASEAN membership could increase the magnitude of those problems and make co-ordination mechanisms among members more difficult. These challenges could be called "ordeals for ASEAN". ASEAN is expected to tackle these problems, to overcome conflicting national interests and to strengthen solidarity among countries in Southeast Asia, thereby providing a groundwork for peace and prosperity in Asia. The international community watches ASEAN's efforts with great interest. What about Japan? The Japanese socio-economic system, which has sustained the country over the 50 year post-war period, now has revealed serious limitations. Japan faces a turning point in her history. Wide-ranging reforms are urgently needed. To create a new Japanese socio-economic system suitable for the 21st century, I am promoting reforms particularly in the following six areas: administrative reform, economic structural reform, financial system reform, social security reform, fiscal reform, and education reform. For example, "economic structural reform" would make the Japanese economy more efficient, resilient and international, enhancing Japan's attractiveness as an arena for economic activities. At the same time it would further expand market opportunities in Japan for foreign industries, including ASEAN's. "Financial system reform" would make the Japanese financial system even more free, fair and global, and thus realize the dynamic renaissance of Japan as a more advanced international financial market; the reform for example would promote access to and use of the yen across national borders, by allowing more smooth fund-raising by foreigners in Japan as well as freer use of the yen abroad. I am convinced that the reform would contribute to further development of economies and financial markets of Asian countries as a whole including Singapore. These reforms are intended to overcome "ordeals for Japan". They are not easy tasks, but nevertheless must be completed at all costs.

8

Japan and ASEAN have a close relationship, both geopolitically and historically. I believe that stability and development in Asia are prerequisites for Japan's stability and development, and it is self-evident that the two are inseparable. Therefore, Japan should exchange views and experiences with ASEAN, sharing each other's pains if necessary, to help solve each other's problems, in a spirit of friendship. And Japan would like to continue this co-operation in helping ASEAN to remain a successful model for other nations, while at the same time learning from ASEAN's experiences as we implement our internal reforms. Ladies and gentlemen, Japan and ASEAN have traditionally been in a mutually beneficial relationship in the economic field, in which we help and support each other. The mutual co-operation should continue to establish an open international economic system and to sustain and develop economic prosperity in the Asia-Pacific. To that end, within the rapid globalization of the world economy, it is important for Japan and ASEAN to enhance their co-operation at the WTO for a free and open world economy. In other words, to maintain and strengthen a multilateral free trade system. It is also necessary to make effective use of other frameworks such as APEC and ASEM. I welcome the fact that APEC particularly has gained increasing importance, as a framework for pursuing economic prosperity in the Asia-Pacific, under the ideal of regional co-operation open to the world.

It is equally necessary for Japan and each of the ASEAN countries to take bold steps in domestic reform without being complacent with the status quo, to make our socio-economic systems more compatible with market mechanisms. I talked about Japan's current reforms in six areas and ASEAN countries are also not exempt from the necessity of domestic reforms. As one of the major pillars sustaining stable economic growth in the Asia-Pacific,

9

ASEAN is required to actively promote economic reforms at both regional and national levels. ASEAN's economic growth becomes increasingly led by domestic consumption demand rather than export to outside countries. Formation of markets of a reasonable scale is necessary, to achieve future sustainable economic growth driven by domestic demand. To that end, ASEAN is required to overcome conflicting national interests and to promote efforts of regional market integration such as the ASEAN Free Trade Area (AFTA) and ASEAN Industrial Co-operation (AICO), in a manner to promote the trend towards trade and investment liberalization. Current and potential ASEAN member countries, meanwhile, are faced with the necessity of a variety of domestic reforms, depending upon their stage of economic development. Some are needed to restructure their economies into more advanced ones while others should urgently participate in the international economic system based upon market mechanisms, as well as developing infrastructures. ASEAN countries are thus expected to follow principles such as market mechanisms and international co-ordination, to address themselves to structural reforms at regional as well as national levels, and to maintain and promote their economic dynamism in a manner open to other parts of the world. Their actions will be extremely important in expanding the interests of the Asia-Pacific and the world over. Japan for her part will support such efforts by ASEAN countries as much as possible. Needless to say, these reforms should be promoted based upon requests from the private sector, the main engine of economic development, so that it can realize its full capacity. Exchanges between Japan and A SEAN private sectors should also be encouraged. When I was MITI Minister, I made efforts to promote Japan-ASEAN co-operation in such fields as development of downstream industries, intellectual property, quality control, and industrial technology research. I also supported the launch of an initiative for industrial co-operation involving potential ASEAN members. Japan would like to continue to support robust private sectors and to promote further technology transfer, responding to expansion of ASEAN membership and resulting problems.

10

Furthermore, Official Development Assistance (ODA) will continue to play a role in the economic development of the Asia-Pacific, and Japan would like to extend as much co-operation as possible. However, from the viewpoint of efficient and effective use of limited funds, several new approaches should be incorporated in ODA implementation. Examples of those approaches are: intellectual support to countries in their transition efforts towards becoming market economies; infrastructure development in collaboration with the private sector; development assistance based on a regional approach transcending national borders, and voluntary aid co-ordination among donors. These efforts to combine economic, trade and investment, and ODA policies in a manner appropriate to specific circumstances, are in line with the central ideas of "New Development Strategies" proposed by Japan. Ladies and gentlemen, Japan-ASEAN economic relations have expanded in the past and now become vitally important to each other. Needless to say, these relations should further be expanded. However, international relations are more than just economies. On the occasion of ASEAN's 30th anniversary, I would like to expand the present co-operative equal partnership between Japan and ASEAN into a broader and deeper one suitable for this new era. Towards that end, I think that Japan and ASEAN should strengthen joint endeavours focusing on the following three areas. Firstly, broader and deeper exchanges between Japan and ASEAN at top and all the other levels. Given the increasing importance of ASEAN as an entity with one voice in the international community, I think it particularly necessary to strengthen policy dialogues between Japan and ASEAN at various levels. In order to promote Japan-ASEAN co-operation, strong political leadership is indispensable. Dialogues at top levels should be enhanced to build stronger personal ties of trust between top leaders. I would like to take every possible opportunity to have closer and more frequent dialogues

11

with my ASEAN counterparts. That is why I made these visits at this time and I would like to welcome future visits to Japan by ASEAN leaders. We should make use of occasions such as formal and informal ASEAN Summit Meetings. I proposed this idea to the leaders I met during this visit, and obtained their agreements on the basic idea. In this context, the "Japan-ASEAN Forum", an existing dialogue framework between Japan and ASEAN, should also be made more active, frequent, and meaningful. Japan serves as a non-permanent member of the Security Council of the United Nations for two years from this year, and would like to closely consult with ASEAN at the UN as well. To ensure peace and stability in the Asia-Pacific in the 21st century, I would like to see Japan have frank dialogues on regional security with each of the ASEAN countries on a bilateral basis. Secondly, as we have often stressed, it is necessary to deepen mutual understanding and to expand cultural co-operation, to consolidate JapanASEAN friendship. The rich cultural heritage of each ASEAN country greatly touches our hearts, reminding us of the value of unique living cultures. I think it necessary to preserve these cultures for future generations, and to enhance multilateral endeavours and co-operation respecting cultural diversity. Japan has co-operated through technology transfers in preserving and restoring cultural heritages in Southeast Asia, including Hue in Vietnam and Angkor in Cambodia, through such schemes as the UNESCO/ Japanese Trust Fund for Preservation of the World Cultural Heritage. I would like to see Japan continue to actively co-operate to preserve and restore cultural heritages, and to maintain and develop unique cultures. To enhance mutual understanding regarding traditions and cultures among neighbours is also important. In co-ordination with private initiatives, I would like to expand cultural exchanges, particularly among the youth who will lead the future world, and to strengthen cultural cooperation on a multilateral basis so that diverse cultures can live in harmony.

12

As a concrete measure, I would like to propose to create a multinational cultural mission comprising experts from Japan and ASEAN countries, which would make recommendations for future cultural exchanges and co-operation. I hope that through these exchanges and co-operation, a sense of community will be fostered throughout the AsiaPacific. Thirdly, Japan and ASEAN should jointly address themselves, by sharing their wisdom and experiences, to various problems that the international community faces as a whole. Given the situation that both Japan and ASEAN increasingly play global roles, their joint initiatives to tackle those tasks for the 21st century, such as terrorism, the environment, enhancing health and welfare, food and energy shortages, population growth, AIDS, narcotics, and reinforcing the rule of law, are sure to provide more breadth and depth to the Japan-ASEAN relationship. Possible areas for co-operation include the following: As for the recent incident of terrorists' assault on the Japanese Ambassador's residence in the Republic of Peru, Japan has been making tenacious efforts to liberate all the hostages as early as possible, while never giving in to terrorism. I would like to express my thanks to ASEAN leaders I met, for their support and encouragement to Japan and President Fujimori. Terrorism is precisely the kind of issue on which the international community must co-operate to cope with firmly. Needless to say, we have to make the utmost efforts to quickly solve this incident. After its resolution, however, we must examine the lessons from this experience, and establish a system in which relevant authorities of concerned countries can always exchange and share information. This is an initiative to try to establish a network for exchanging and sharing information and views between Japan and ASEAN, to tackle terrorism and to ensure the security of people's lives. Through a series of meetings with ASEAN leaders I met, I could get their support for my idea. The environment is an issue of global importance. Japan has experienced serious industrial pollution such as air and water pollution during the process of its high economic growth. To overcome the problem, in addition to development of anti-pollution technologies at the laboratory

13

level, actual application and utilization in the production process was encouraged by a variety of government policy actions including taxation and regulations. These joint efforts of government and private sectors helped Japan overcome the problem of industrial pollution, while at the same time creating new products and industries. In recent years, Japan has been actively engaged in tackling new types of environmental problems such as wastes and global warming resulting from mass production and consumption, reflecting urbanization and changes in life style. I hope to see Japan share with ASEAN countries now enjoying spectacular growth her own experiences and technologies for anti-pollution and efficient energy use, not just her success stories but also mistakes and difficulties in the past, so that they will not repeat the same mistakes. In implementing ODA for current and potential ASEAN members, Japan would like to positively promote environmental co-operation, such as the prevention of industrial pollution and protection of forests and biodiversity. Improving people's health and welfare is a task that every country has to tackle, regardless of the stage of its economic development. I proposed an "Initiative for a Caring World" last year, and as a concrete measure Japan hosted the "East Asian Ministerial Meeting on Caring Societies" in Okinawa in December last year. Using the lessons gained at that meeting, I would like to consider, in co-operation with ASEAN, how the initiative could further be developed in the future. In these areas of the environment, health and welfare, I would like to see Japan not just share her know-how and experiences, but also absorb ASEAN's wisdom as well. The ASEAN countries with remarkable development nowadays support development of other countries still in difficulties, by sharing their successful experiences with them in many fields. It would be quite meaningful that each ASEAN country continues to further support the less developed countries, taking full advantage of their similar religions, cultures, and environments. Japan for her part would like to make efforts through

14

tripartite co-operation so that fruits gained from the Japan-ASEAN cooperation in various fields can widely be enjoyed in other parts of the world. Ladies and gentlemen, As Japan and ASEAN strengthen their joint forward-looking cooperation to prepare for the coming century, the most important precondition would be that peace and stability in the Asia-Pacific are firmly ensured. And the most important factor for this precondition is, I firmly believe, the presence of the United States in Asia. Even after the end of the Cold War, several unstable factors persist in the region. So that these factors will not become international conflicts, the presence of the United States, a country of unrivalled power and founded upon principles such as democracy, market mechanism, and respect for creativity, is essential. The Japan-U.S. security arrangements are a very important framework for engaging the U.S. presence. So I would like to take this opportunity to make it clear that Japan will continue to do its best to maintain confidence in the arrangements. I sincerely hope that the meaning of the arrangements is correctly understood. They serve as a sort of infrastructure for stability and economic prosperity in the Asia-Pacific, and are in no sense targetted against any specific country. Another extremely important factor is relations with China. Every ASEAN country has deep-rooted and inseparable relations with China in historical, cultural, political and economic terms. The same is true of Japan. Now that China has been following a path of modernization through its policy of reform and openness, she takes more part in every arena. It is important for the rest of the world to support the policy direction and to enhance wide-ranging dialogues and exchanges with China so that she can secure her position as a constructive partner in the international community. Japan's ODA projects to China are implemented from that viewpoint. Yen loans projects play a role in promoting public infrastructure

15

development required for China's economic growth. Grant-in-aid projects, including medical-related ones, can help enhance the Chinese people's lives and welfare. Such co-operation, in my opinion, contributes to fostering their good will towards Japan. I am convinced that the presence of a politically stable, economically prosperous China, bound by ties of trust with the rest of the world, would be in everybody's interest in the Asia-Pacific and the world over. My view is that the relations among Japan, the United States, and China will have an important impact on the entire Asia-Pacific. Improved Japan-U.S., Japan-China, and U.S.-China relations will contribute to peace and prosperity in the region. There is no "zero sum" in these relations. I have thus pointed out the importance of improved U.S.-China relations, and heartily welcome the trend currently moving in that direction. To maintain and promote friendship and co-operation with the Republic of Korea, another Japanese neighbour which is becoming an increasingly active partner in the international community, continues to be one of Japan's most important foreign policy objectives. To ensure peace and stability in the Korean Peninsula is an important task, inseparable from the peace and stability of the entire Asia-Pacific. The Korean Peninsula Energy Development Organization (KEDO) is one of those efforts. The issue of nuclear weapons development in North Korea is not just an issue of regional security but also a concern of grave importance for the international community from the viewpoint of ensuring non-proliferation. ASEAN countries' further contribution to the KEDO projects through ASEAN's active efforts to tackle the problems would be most impressive to the entire international community. I look forward to having a closer and broader dialogue with President Kim Young Sam, who will visit Japan at the end of this month, on various issues including measures for realizing peace and stability on the Peninsula. Ladies and gentlemen, In the 21st century, prosperous and open societies should be created

16

in the Asia-Pacific. To that end, as I have emphasized today, Japan and ASEAN should address squarely their respective challenges, based upon the preconditions of the U.S. presence in Asia and China's further constructive participation in the international community. In that process, Japan and ASEAN should reform their co-operative relations, which have so far placed great weight on the economic field, into broader and deeper ones suitable for the new era. What I have proposed as a concrete step are the following three: firstly, closer dialogues at top level, secondly, multilateral cultural cooperation for preservation and harmony of unique traditions and cultures, and thirdly, joint endeavours to tackle global concerns such as terrorism and the environment. The path to the next century and beyond will not be an easy one. It will bring us to many challenges, one after another. But I believe that Japan and ASEAN, using their great wisdom, virtue, and courage, will surely be able to complete this journey to a better world. Thank you.

III

Discussion

Chairman: Ladies and gentlemen, the floor is now open for questions. As we have only about fifteen minutes and as Prime Minister Hashimoto has already given a press conference, I will limit this session only to members of the audience who are not from the press. When you ask a question, may I request that you identify yourself and use one of the microphones which are available in the room. Question: Mr Chairman, my name is Adrian Villanueva of Advill Consultancy and my question to Prime Minister Hashimoto is: does the new era of Japan and ASEAN partnership signify that Japan is now more receptive to an East Asian grouping encompassing not only ASEAN but the other East Asian countries like China and Korea? Thank you, sir. Hashimoto: We have maintained ties with China, Korea and countries of South Asia such as India and Pakistan and have dealt with various issues from time to time. Among all these relations we certainly believe that our partnership with Southeast Asia is very important. As I have already stressed, we believe it is important to further enhance these relations. Having said that, I believe that greater prosperity and development of ASEAN would be very important for the development and prosperity of Japan and for Japan's stability as well. The stable development of ASEAN certainly must be secured by all means for peace and stability for the entire world. One of the basic foundations for that would be the U.S. presence and also more active participation of China as a constructive partner in the world. I believe that China should be able to be more active as a constructive partner in various fora of the world. That is why we have been giving our support to accession of China to the World Trade Organization. 17

18

In the interest of stability in the Korean Peninsula we must continue to cooperate with the Republic of Korea not just because it is our neighbour but for regional stability and security. We believe that there certainly are various challenges and different relations. But our co-operative relations with ASEAN together with our relations with China and Korea are of a very high priority for us.

Question: Mr Chairman, Mr Prime Minister, my name is Sorpong Peou from the Institute of Southeast Asian Studies. I am intrigued by your suggestion that Japan and ASEAN promote their dialogue on regional security on a bilateral basis. My question is: could you elaborate on the security and political aspect of your proposal and what is Japan's position on the ASEAN Regional Forum. Do you see any limitations of the ARF? Thank you. Hashimoto: I believe it was certainly the wisdom of Asia that this mechanism of ARF was devised. Within the dialogue at ARF, without naming who it is specifically, a very large and once relatively closed country, joined the table of dialogue of the countries in this region. And now amongst the members we are able to share more information about the security situation than before. I certainly wouldn't say the exchange of information is sufficient but the fact that we now have this mood and a better atmosphere for exchanging information is commendable. Perhaps I was not too clear about the purport of your question but within this dialogue, I believe we have been learning a lot in a very useful manner. Without the ARF we will not be able to resolve the problems of the following sort. Last year, for example, top commanders of the navies of the Asia-Pacific countries gathered in Tokyo at a meeting hosted by the Japanese Maritime SelfDefence Force. I was not in it, but I heard from the experts that the navies of the parti-cipating countries, from their respective vantage points, were able to engage in a very useful exchange of information and views. I believe that promotion of such dialogue would be of extreme significance for better regional peace and security. I have been encouraging the Japanese defence-related people, who have in the past remained somewhat closed, to engage in more dialogue; last year we had security dialogue with the Russians. So from various angles we should like to contribute to the betterment of the situation in this area as well.

19

Question: I am Arthur Ngiam Meng Lam from Globe Magnetic Sciences Singapore. I have two questions for Prime Minister Mr Hashimoto. My first question is with regard to your former capacity as Minister for Transport and the second question relates to your present capacity as one of the most dynamic and reformist Prime Ministers of Japan. The first question is: what were the major political and economic problems, if there were any, and how did you solve them, when you privatized your Japan National Railway in the mid-80s? My second question is in two parts. The first part is: what is Japan's master plan for passive and proactive involvement in the Straits of Taiwan if China were to repossess Taiwan by force, given the fact that Japan has been accelerating the silent build-up of her Self-Defence Forces. The second part of my question is: why does your delegation from Japan, which is an economic and geographical giant when compared to tiny Singapore, believe that Singapore has so much economic and political clout among the countries in ASEAN? Hashimoto: Let me respond in reverse order. I for one have never thought that Singapore is that small- compare the height of the two Prime Ministers. Mr Goh Chok Tong is always looking at the top of my head; if my hair is thinning I am sure Mr Goh Chok Tong will be the first to find it out, not my wife. I do not consider Singapore a small presence - let me explain why. It is not just because of its economic role, but because of the geo-political role that Singapore is playing. Also as a multi-ethnic society, Singapore can play an intermediary role amongst the various countries of ASEAN. I also refer to the importance of ASEM: Singapore, particularly Prime Minister Goh Chok Tong, proposed the establishment of a foundation under the framework of ASEM. We supported that idea. So I hope you will not be concerned with your smallness. I believe that Singapore is a wonderful country. With regard to your question related to the Taiwan Straits or Taiwan and China. I certainly would not welcome tensions in the Taiwan Straits and hope that this sort of situation will never occur again. I hope that both sides will try to resolve the matter in a cool-headed manner through dialogue. In fact they are not talking about creating another country both are talking about one China. I hope under that policy line, there will be smooth dialogue between the two parties concerned.

20

One point I wish to add to this - you mentioned in your question that the Self-Defence Forces are being built up. This year I cut the number of troops for the ground Self-Defence Forces. In other words, in the first fiscal '97 budget we are cutting back on the troop level for Self-Defence Forces. In fact, we are not moving in the direction of a military build-up. With regard to reform in Japan, you referred to the experience of privatization of Japan National Railways and also turning Japan Airlines, which was a government company, into a purely private joint-stock corporation. If the question is whether we might see such a dramatic incidence in the future, unfortunately we are not planning on such a dramatic turn of events. Rather, the reform we will be carrying out will of necessity be more subdued but directly related to the everyday living of the people and the socio-economic mechanisms of Japan. We have to begin to work on those levels which are very difficult. Such reform will of necessity face resistance and resentment because it would mean that we are taking away vested interests of third parties. Faced with such resistance the reform could become a long battle. We are also talking about taking away authority from the central government bureaucrats and delegating such authority to local municipalities and the private sector as well. This again would infringe on the vested interests of the central government bureaucrats and surely will face strong resistance. However, unless we start to work on these issues there will be a problem for Japan which already is seeing the advance of an aging population. So we do not envisage a drama of the sort that you referred to. Rather we will be taking small steps, with steady efforts. By doing so, we must try and break the huge wall that stands in front of us. Thank you. Question: Good morning Prime Minister Hashimoto. I am a student from NUS Political Science, 4th year. I understand that Japan played a very active political role before the end of the East-West rivalry. I wonder if JapanSoutheast Asia relations now would go beyond merely Japan-ASEAN relations. For example, will Japan play a more active role in the East-Asia Economic Caucus apart from Japan/APEC? Thank you. Hashimoto: We would not like to poke our nose into other people's affairs. However, if our input is desired, then we would like to play that role very actively.

21

But we would not like to push our way through. We are a member of Asia and we certainly would not take that sort of approach. You referred to the EAEC. Let us imagine various different maps with ASEAN at the centre. The question may be: what sort of relations will ASEAN have in the days ahead with South Asia? Now APEC encompasses Papua New Guinea which has yet to become a member of APEC, as for numerous other countries in the Pacific that are yet to become members of APEC. So what are we to do, or what would ASEAN think about these countries? In Japan, amongst the various plans Okinawa has for the future, they are looking towards the Pacific Island states in an attempt to improve the state of affairs in those countries as well. So I am sure there are various roles we can play as well. In that entire context I believe Japan no longer should be simply sharing examples of successes. By showing examples of successes in the past we have established our co-operative relationship with ASEAN. From hereon, however, I also have to indicate our failures and mistakes so that mankind will not repeat them - that is the kind of role that we should like to take on. So if we are to act with that point in mind, I believe there will be a lot of changes in the roles that we will be playing. And within our respective communities or groups, we will be able to play our roles with good faith and we have the determination to do so. Thank you. Chairman: It now remains for me to request Professor Chia Siow Yue to deliver her closing remarks.

IV

Closing Remarks Chia Siow Yue

Mr Chairman, Dr Tony Tan, Prime Minister Hashimoto, Prime Minister Goh Chok Tong, distinguished guests, ladies and gentlemen. Twenty years ago, in 1977, then Japanese Prime Minister Takeo Fukuda enunciated Japan 's policy towards ASEAN in what has come to be known as the Fukuda Doctrine, emphasizing Japan's non-military role and pledging political, economic and cultural co-operation. Since then, the Japanese Government has actively supported regional projects and cultural exchanges. Bilateral trade between Japan and ASEAN, and Japanese investment and aid flows to the region have grown by leaps and bounds. The ASEAN countries have benefited from these Japanese investment and aid flow s and have collectively become a regional economic power. This morning, we have heard Prime Minister Ryutaro Hashimoto enunciate his policy initiative towards ASEAN, recognizing ASEAN as an equal partner, and proposing closer policy dialogues at the top levels, greater exchanges between the private sectors, cultural exchange and cooperation, as well as joint efforts at regional and international fora (including APEC, ASEM and WTO) and on international concerns and issues such as the natural environment, food and energy resources, and teiTorism and narcotics. The press has been anticipating this policy speech and has already dubbed it the "Hashimoto Doctrine". Thi s is a most important policy speech, the contents of which will be seriously discussed and explored in the region in the months ahead. We are indeed honoured and privileged that Prime Minister Hashimoto has chosen Singapore, and more particularly the Singapore Lecture, to unveil his vision on Japan-ASEAN relations. As organizers of this Singapore Lecture, my staff and I at the Institute of Southeast Asian Studies went through many anxious days following the unfolding of the crisis in Lima, Peru. We were truly relieved and glad that Prime Minister Hashimoto 23

24

decided to go ahead with his ASEAN tour, which bears testimony to the significance Japan attaches to ASEAN. We fervently hope that the crisis in Lima will soon be resolved peacefully. Ladies and gentleman, it is now my very pleasant task to ask all of you to join me in thanking Prime Minister Hashimoto for sharing his vision with us and for the unique honour and opportunity of listening to him in person. We also thank Deputy Prime Minister and Defence Minister, Dr Tony Tan, for so graciously agreeing to chair this 15th Singapore Lecture. And we are privileged by the presence of Prime Minister Goh Chok Tong and members of the Singapore Cabinet. Their support and participation are particularly appreciated in view of their extremely heavy work schedule after the recent parliamentary elections. Finally, the success of the Singapore Lecture series depends on a responsive and enthusiastic audience. This Singapore Lecture has generated strong public interest as attested by your overwhelming attendance this morning. Regrettably, we have had to turn away many. Ladies and gentlemen, may I conclude by thanking all of you for your presence and wishing you a good day.

MR RYUTARO HASHIMOTO

Ryutaro Hashimoto is the Prime Minister of Japan and the president of the Liberal Democratic Party (LDP)- the largest party in the National Diet. Mr Hashimoto, born on 29 July 1937 in Tokyo, is the eldest son of Ryogo Hashimoto, who had served as Minister for Education and Minister for Health and Welfare in the Cabinet of Prime Minister Nobusuke Kishi. He graduated from Keio University's Faculty of Law in 1960. First elected to the House of Representatives in 1963, he served as director of the LDP Social Affairs Division and chairman of the House of Representatives Standing Committee on Social and Labor Affairs. At the age of 41, he became Minister for Health and Welfare. Mr Hashimoto also served as chairman of the LDP Research Commission on Public Administration and Finance from 1980 to 1986. In 1986 he became Minister for Transport and successfully accomplished the privatization of the Japanese National Railways, the centrepiece of administrative reform at that time. From 1987 to 1989 he held several important party positions, including that of Secretary-General of the LDP. Mr Hashimoto was appointed Minister for Finance in 1989; and in June 1994 he became Minister for Trade and Industry. He has urged that the multilateral trading system be strengthened and that the momentum of trade and investment liberalization be maintained. Following his participation in the Asia-Pacific Economic Co-operation (APEC) Ministerial Meeting in Jakarta in November 1994, Mr Hashimoto led the APEC Osaka Ministerial Meeting in November 1995 as the meeting's joint chairman. Throughout his visits to many countries around the world, he has sought to strengthen Japan's ties with them and enhance Japan's contributions to the world economy. He retained his portfolio as Minister for International Trade and Industry when Prime Minister Murayama reshuffled his cabinet in August 1995, and he was elected president of the LDP a month later. In October 1995 he assumed the post of Deputy Prime Minister. After Prime Minister Murayama stepped down in early 1996, Mr Hashimoto was elected Prime Minister on 11 January 1996 with the backing of the three parties in the ruling coalition- the LDP, the SDP (Social Democratic Party) and the New Party Sakigake. In October 1996, Mr Hashimoto dissolved the Lower House and called for a general election. He was re-elected for a second consecutive term as Prime Minister

on 7 November 1996, spearheading the first LDP-only government in three years with the support of the Social Democratic Party and New Party Sakigake, with whom the LDP has signed a policy accord. Mr Hashimoto and his wife Kumiko have two sons, three daughters, and two grandchildren. His hobbies include kendo (Japanese fencing), in which he holds the rank of fifth dan, mountain climbing, and photography.

THE SINGAPORE LECTURE SERIES

Inaugural Singapore Lecture 14 October 1980 The Invisible Hand in Economics and Politics by MILTON FRIEDMAN

2nd Singapore Lecture 30 October 1981 American Foreign Policy: A Global View by HENRY KISSINGER

3rd Singapore Lecture 2 December 1982 Peace and East-West Relations by GISCARD D'ESTAING

4th Singapore Lecture 10 November 1983 The Soviet Union: Challenges and Responses as Seen from the European Point of View by HELMUT SCHMIDT

5th Singapore Lecture 8 November 1984 The Western Alliance: Its Future and Its Implications for Asia by JOSEPH M.A.H. LUNS

6th Singapore Lecture 5 December 1985 Deficits, Debts, and Demographics: Three Fundamentals Affecting Our Long-Term Economic Future by PETER G. PETERSON

7th Singapore Lecture 25 November 1986 Trends in the International Financial System by RAYMOND BARRE

8th Singapore Lecture 27 November 1987 The Challenge of Change in the Asia-Pacific Region by BOB HAWKE

9th Singapore Lecture 14 December 1988 Regionalism, Globalism and Spheres of Influence: ASEAN and the Challenge of Change into the 21st Century by MAHATHIR BIN MOHAMAD

1Oth Singapore Lecture 15 October 1989 Trade Outlook: Globalization or Regionalization by BRIAN MULRONEY

11th Singapore Lecture 3 April1991 International Economic Developments by R.F.M. LUBBERS

12th Singapore Lecture 4 January 1992 U.S. Policy in the Asia-Pacific Region: Meeting the Challenges of the Post Cold- War Era by GEORGE BUSH

13th Singapore Lecture 8 September 1994 India and the Asia-Pacific: Forging a New Relationship by P.V. NARASIMHA RAO

14th Singapore Lecture 17 January 1996 Australia, Asia and the New Regionalism by PAUL KEATING

15th Singapore Lecture 14 January 1997 Reforms for the New Era of Japan and ASEAN: For a Broader and Deeper Partnership by RYUTARO HASHIMOTO