Leaders of North and Southeast Asian nations have signed a historic pact to strengthen bonds through closer economic and monetary co-operation. The mainland, Japan and South Korea joined the 10 members of the Association of Southeast Asian Nations in the first step towards the eventual creation of a giant East Asian common market, an economic powerhouse encompassing two billion people. Philippine President Joseph Estrada, who chaired yesterday's informal summit in Manila, said: 'If we persevere and work harder, maybe, the promise we fulfil will realise an even loftier dream. 'An East Asian common market. One East Asian currency. And one East Asian community - a family from the happy union of north and south.' The pact signed yesterday pledged to strengthen efforts to accelerate trade and investment and technology transfers across the north-south divide in East Asia and to encourage co-operation in information technology. Most leaders, including Chinese Premier Zhu Rongji, acknowledged the potential merits of a common currency but warned it would take decades given wide disparities in the level of economic development between potential participant countries. Rounding off the last meeting before the new millennium, Asean leaders agreed to bring forward by five years to 2010 the deadline for its older members - Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand - to scrap virtually all import tariffs to fellow members. Members who have joined in recent years - Burma, Cambodia, Laos and Vietnam - agreed to a new deadline of 2015. In their joint statement on East Asian co-operation, leaders said they would build on existing consultative and co-operative processes more inclusive of the mainland, Japan and South Korea within the existing framework of the so-called 'Asean Plus 3' grouping. There are hopes that over the long term, this may lead to the setting up of an East Asian secretariat. On monetary and financial co-operation, leaders 'agreed to strengthen policy dialogue, co-ordination and collaboration' in macroeconomic risk management, corporate and industrial governance reforms, regional monitoring of capital flows, and strengthening of banking and financial sectors. The northern regional countries would be invited to participate in the periodic peer economic surveillance mechanism set up within Asean following the 1997 region-wide currency collapse. South Korean president Kim Dae-jung said: 'Given the fact that a foreign-currency crisis that began in one country of the region had global repercussions and a grave effect on the neighbouring countries of East Asia, there is an urgent need for closer co-operation among the countries of the region.' The leaders agreed to intensify co-operation with various international and regional bodies, such as the World Trade Organisation, as well as regional and international financial institutions. Japanese Prime Minister Keizo Obuchi pledged to grant a further US$500 million in aid for human-resources development in the East Asia region. Mr Obuchi described yesterday's 'Asean Plus 3' communique as a 'first step' towards a more closely bound Asia. Mr Obuchi said: 'I am determined to continue to devote my utmost to further building upon emerging momentum for enhancing co-operation in the East Asian region.'
