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067521
MDLIAN 3936
ASEAN PARTNERS ARE ANY FURTHER ON BOARD, PARTICULARLY INDONESIA (COPY ADDRESSEES MAY WISH TO COMMENT). TODAY'S LOCAL PRESS REPORTS THAT THE ASEAN SECRETARIAT HAS NOW BEEN TASKED BY HEADS OF GOVERNMENT WITH PRODUCING AN EARLY STRUCTURAL MODEL FOR THE EAEC, TO BE CONSIDERED BY A MEETING OF SENIOR OFFICIALS IN JUNE. THE
POLITICAL DIRECTOR AT THE INDONESIAN MFA (WIRYONO) IS QUOTED AS
SUPPORTING THE EAEC AND AS SAYING THAT QUOTE THE PARAMETERS HAVE
BEEN SET UNQUOTE. BUT IT IS NOT ABSOLUTELY CLEAR THAT HE WAS TALKING ABOUT DR MAHATHIR'S QUOTE PARAMETERS UNQUOTE. WIRYONO ALSO STRESSED THAT, FOR INDONESIA, EAEC QUOTE SHOULD BE SET UP WITHIN THE FRAMEWORK OF APEC UNQUOTE.
8.
IF THIS WERE THE PRICE OF WHOLE-HEARTED INDONESIAN SUPPORT CAND
JAPANESE SUPPORT AND US ACQUIESCENCE ALSO SEEMED ACHIEVABLE) THEN IT IS JUST POSSIBLE THE MALAYSIANS MIGHT BE PREPARED TO PAY IT. HITHERTO THEY HAVE BEEN CHARY OF THE NOTION OF EAEC AS A SUBSET OF APEC, BECAUSE IT SEEMED TO DILUTE THE REGIONAL EMPHASIS OF THE FORMER WHILE SUBORDINATING IT TO AN ORGANISATION WHICH THE MALAYSIANS HAVE TENDED TO REGARD (ALBEIT PRIVATELY) AS AN AMERICAN STOOGE. YET THERE HAVE BEEN SOME MINOR HINTS OF CHANGE. IN TOUCHING ON THE EAEC BEFORE A DIPLOMATIC AUDIENCE ON 14 MAY, DEPUTY FOREIGN MINISTER DR FADZIL CHE WAN RECALLED AN EARLIER BUT LONG-UNUSED IMAGE BY DESCRIBING ASEAN, EAEC AND APEC AS QUOTE CONCENTRIC CIRCLES UNQUOTE. THE DEPUTY SECRETARY-GENERAL (ECONOMIC) IN THE MFA TOLD DHC ON 17 MAY THAT HE PERSONALLY (PLEASE PROTECT) SAW ATTRACTIONS IN THE INDONESIAN IDEA, THOUGH DR MAHATHIR REMAINED ANTIPATHETIC TO IT. ON BALANCE WE CONTINUE TO THINK DR MAHATHIR IS UNLIKELY TO SHIFT HIS POSITION. BUT THE CONCILIATORY TONE OF HIS TOKYO SPEECH WAS NOTEWORTHY, AND FURTHER ADJUSTMENTS CANNOT BE EXCLUDED ALTOGETHER.
SLATER
YYYY
MAIN
72
.ASIA/PACIFIC ECONOMIC
ERD
ECD (E)
ECONOMIC ADVISERS
DISTRIBUTION
77
SEAD
SPD
PS
PS/MR GOODLAD
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