Financial Secretary Donald Tsang Yam-kuen yesterday called for a concerted global effort to prevent a recurrence of the Asian crisis, warning of a global recession if the present turmoil could not be corrected. He urged the formulation of new rules and strategies to cope with huge capital flows as well as international guidelines to facilitate smooth, sustainable growth rather than boom and bust cycles. His comments were made in Frankfurt at a lunch organised by the Hong Kong Economic and Trade Office in Brussels and the Hong Kong Trade Development Council as part of his international roadshow. He said a sustained economic crisis of the magnitude now being experienced in East Asia - where the entire economies of four countries had collapsed - was affecting markets in the United States and Europe. Mr Tsang expected trade balances to start to balloon as cheaper East Asian exports were snapped up in Europe and America. Exports from Europe and the US would drop away because the East Asian economies simply could not afford to buy them now their currencies had been devalued, he said. The SAR Government's move to intervene in Hong Kong's stock and futures markets was to 'stop a contrived manipulation and extreme market conditions which were creating severe instability', he said. 'We reacted to a fast-evolving and extraordinary situation which, if unchecked, would have compromised the ability of our economy to continue adjusting smoothly, and in an orderly way, to the current downturn.'