ASEAN Leaders Consider Pact With East Asian Nations

Opening a regional summit, Southeast Asian leaders Friday proposed creating a new East Asian alliance and signed a pact to catapult their troubled region into the technological age.

Singapore Prime Minister Goh Chok Tong laid out the summit’s objectives after meeting with Southeastern Asian leaders and their counterparts from China, Japan and South Korea, saying, “A free-trade zone and economic cooperation will be the key areas, but certainly peace and stability is the ultimate goal of an East Asia meeting.”

Goh did not specify the outlines of such an expanded grouping, but said “it will have implications” for the 33-year-old Assn. of Southeast Asian Nations, which is holding a two-day summit in Singapore.

Malaysian Prime Minister Mahathir Mohamad said ASEAN will create a study group “to see whether it is feasible or not.”

Mahathir said Malaysia supports the idea wholeheartedly.

Goh added, “I think the study group will concentrate mainly on economic and social issues, but they can also expand their study into politics.”

During their meetings since Thursday, ASEAN officials have been discussing greater economic ties with China, South Korea and Japan. China has separately expressed interest in exploring a free-trade agreement with ASEAN.

Goh warned that Southeast Asia had to improve its international image--battered by the 1997-98 financial crisis--in order to compete with Northeast Asia, which is receiving more foreign investment.

When asked about expanding the geographical scope of the Southeast Asian trade bloc, Goh said, “I do not see why we should not, because North Americans compete as a group--they have NAFTA.”

The North American Free Trade Agreement groups the United States, Canada and Mexico.

The 10 ASEAN leaders gathered behind closed doors at a luxury hotel for talks Friday on everything from e-commerce to an ambitious new rail link to China.

They signed a free-trade pact called “e-ASEAN” to create high-speed regional Internet connections and eliminate duties on information-technology goods and services by 2010.

ASEAN comprised Singapore, Malaysia, Indonesia, the Philippines, Thailand, Cambodia, Vietnam, Laos, Myanmar and Brunei.