TNAG-1880-FCO40-2671-Student-demonstrations-and-internal-political-situation-in-C-1989 — Page 117

norized until the system's proponents offered new, policy-relevant ustifications for its continuance."

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The analyst concluded by warning that if policy continues to remain an "orphan within the Defense Department," the United States will continue to be hit by a "double whammy its resources will be ри ly spent, while its security is dangerously compromised."

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STORY: EU1050626

HKB 020/14

DATE: 06/26/89

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SLEU1050626 BT*EUR105 06/26/89

BAKER OUTLINES FRAMEWORK FOR FUTURE PACIFIC PARTNERSHIP (Text: address to Asia Society in New York) (3130)

New York Urging the West not to be blinded by its revulsion over the crushing of the pro-democracy movement in China, Secretary of State Baker June 26 cautioned that a new political mechanism for Future Pacific economic cooperation will be incomplete without China. "China has suffered a tragic setback, but the story is not over, Baker said in remarks prepared for delivery before the Asia Society in New York City. While President Bush has "condemned in the strongest terms the brutal events of this past month," and the United States and other nations "have suspended business as usual," he added, "the hasty dismantling of the constructive U.S.-Chinese relationship" built up over the past two decades would serve neither nation's interests.

"China's rendezvous with freedom, like its rendezvous with the advancing nations of the Pacific, cannot be long delayed. We will be there to help when the day follows the night," the secretary declared.

Baker's address focused on the need to develop a new mechanism for future multilateral cooperation in the Asia/Pacific region. The secretary said he would explore the possibilities for such an entity in his forthcoming talks with the leaders of the Association of Southeast Asian Nations (ASEAN) in Brunei based on these key principles:

First, any mechanism should encompass a wide array of issues, from trade and economic affairs to cultural exchange and natural resource protection, and include "creative responsibility sharing;

Second, any Pacific-wide institution must be an inclusive entity that expands trade and investment;

Third, a pan-Pacific entity should recognize the diversity of social and economic systems and differing levels of development in the region, recognizing that private initiative and free market policies offer the best route to mutual progress.

Following is the text of Baker's prepared remarks: (begin text)

Thank you for that introduction, and I am honored to be here. I an especially happy to appear before the Asia Society in the company of Japan's foreign minister, Hiroshi Mitsuzuka. As the representative of a great democracy, the foreign minister understands, as we all do, that a free government depends upon well-informed citizens who are active in public affairs. The Asia society can therefore reflect with pride upon its contribution to America's understanding of East Asia and the Pacific Rim. Each one of you, by participating in the society, makes a unique contribution to our national interest.

Our understanding of events in Asia and the Pacific has become all the more important because the post-war era is over. In Asia, as in Europe, a new order is taking shape. While the rites of passage will be painful

it is an order full of promise and hope. I believe strongly that the United States, with its regional friends, must play a crucial role in designing its

China proves that