PAPERS FOR THE SIXTH ASEAN-U.S. ECONOMIC DIALOGUE, WASHINGTON, APRIL 2-3, 1985

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP87M00539R000901210011-4
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 12
• Document Creation Date: December 22, 2016
• Document Release Date: January 28, 2010
• Sequence Number: 11
• Publication Date: March 8, 1985
• Content Type: MEMO

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EXECUTIVE SECRETARIAT
ROUTING SLIP
ACTION
INFO
DATE
INITIAL
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DCI
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DDCI
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EXDIR
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D/ICS
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DDI
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DDA
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DDO
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DDSBT
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GC
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IG
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Compt
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D/Pers
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D/OLL
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D/PAO
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SA/IA
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AO/DCI
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C/IPD/OIS
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Please provide necessary sux~port
to State. -
State Dept. review completed
xecutrve ecretary
11~1arch 1985
3637 ~10-~'~
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MEMORANDUM FOR:
(With CONFIDENTIAL attachments)
P - Mr.
E - Mr.
T - Mr.
M - Mr.
C - Mr.
Armacost
Wallis
Schneider
DePree, Acting
Derwinski
ARA - Mr. Motley
EAP - Mr. Wolfowitz
\
EUR - Mr.
IMN - Mr.
INR - Mr.
IO - Mr.
NEA - Mr.
OES - Mr.
S/P - Mr.
S/NP - Mr.
AID = Mr. M
Burt
DiCarlo
Abramowitz
Newell
Murphy
Malone
Rodman
Kennedy
cPherson
IA
CEA -
COMMERCE -
INTERIOR/ -
USGS
r. S
Mrs.
Mr. G
prink
Robbi
leaso
el
ns
n
~~U'~:30y
f~5U733-~
Executive Registry
~I 85- ~ ~ P ~~
COMMERCE
INTERIOR
GSA,
LABOR
TREASURY
25X1 > DA
USTR
USIA
S/S-S (DIR)
TMA
TMB
TMC
RF
GSA - Mr. Kline
LABOR - Mr. Searby
TREASURY - Mr. Hicks
USDA - Mr. Lett
USTR - Mr. Smith
USIA - Mr. LaSalle
SUBJECT:
Papers for the Sixth ASEAN-U.S. Economic
Dialogue, Washington, April 2-3, 1985
E LIAISON:
David M. Sloan, 632-7448,
Room 7260
EAP COORDINATOR:
Edward J. Chesky, EAP/EP,
632-4835
S/S PROJECT
Room 5321
,
OFFICER:
Angus Simmons, 632-1523,
Room 7241
Under Secretary Allen Wallis will head the U.S. Delegation
to the ASEAN-U.S. Economic Dialogue in the Department of
State, April 2-3, 1985. This memorandum assigns drafting and
clearing responsibilities for the preparation of papers
related to the Dialogue.
LIMITED OFFICIAL USE
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CONFIDENTIAL
URGENT
United States Department of State
RTash i ngton, D. C. 20520
March 8, 1985
LIMITED OFFICIAL USE
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I. GENERAL PROCEDURES
A. All papers must be cleared as indicated. Two copies of
single-spaced draft papers (with all but E clearances) should
be delivered to E (Room 7256, Department of State) by 4 p.m.,
March 23. E will notify drafting officers that changes in
draft papers are required or that they can deliver final papers
with no change directly to S-S/S. Final, fully cleared papers
should be delivered to S/S-S by 4 p.m., March 26.
B. Agenda, country, project, and background papers for the
briefing book should be prepared on 8 1/2" by 11" plain white
bond paper, observing the sample formats contained in
Attachments 1, 2, 3, and 4. Drafting and clearing information
for all papers should be on the last page. Agenda papers
should not exceed three pages in length, including the
principal objectives and talking points. Other papers should
not be more than one page in length, with contingency talking
points not exceeding one additional page. It is essential that
drafting officers obtain all Department of State and
interagency clearances prior to submission of drafts to E.
A. Scope Paper. EAP should prepare a scope paper
outlining the issues and objectives for the Dialogue. The
format is a briefing memorandum from Mr. Wolfowitz to Mr.
Wallis. It should place the meeting in the perspective of U. S..
economic relations with ASEAN members and our expectations of
the Sixth ASEAN-U.S. Economic Dialogue. Clear with E and EB.
B. Country Papers. EAP should prepare a country paper on
each of the six member nations of ASEAN using the format of
Attachment 1. Each paper should provide general political and
economic information as well as specific problems or key issues
of the country. Clear with E and P.
E. Agenda, Background, and Project Papers. The agenda
papers should be drafted using the format in Attachment 2.
Background papers should be like Attachment 3. Project papers
should follow the format in Attachment 4.
D. Biographies. EAP should provide to S/S-S by 4 p.m.,
March 12 a list of the names of all senior members of the ASEAN
delegations. S/S-S will obtain biographic sketches for the
briefing book from this list.
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LIST OF AGENDA PAPERS
Draft Clear
I. Opening Remarks by U.S. and ASEAN Spokesmen.....EAP
II. Business Arrangements ...........................EAP
III. Adoption of the Provisional Agenda ..............EAP
IV. Review of International Economic Issues of
V. Review of ASEAN-U.S. Dialogue ...................EAP
VI. International Trade Issues
A. U.S. Trade and Tariff Act of 1984 ..........USTR
B. GATT Matters (including Codes & New Round)..USTR
C. Textile Trade (including MFA Renewal).......USTR
D. Commodity Issues: Rubber ...................EB
Sugar ....................EB
Tin ......................EB
E. Protection of Intellectual Property.........EB
F. Specific Trade Issues (ASEAN to specify)....EB
VII. International Financial Issues
A. Development Cooperation .....................AID
B. Investment Issues and Climate ...............EB
VIII. Briefing by the ASEAN-US Business Council.......EAP
IX. Other Matters ...................................EAP
X. Consideration of the Joint Press Statement......EAP
XI. Concluding Statements ...........................EAP
Background Papers
EAP,EB
EAP,EB
EAP,EB
EAP,USDOC
EAP,USDA
EAP,GSA
EAP,USTR
EAP,USTR,USDOC
EAP,EB,TREAS
EAP, USTR, TREAS
EB
EB
EB
Draft Clear
1. ASEAN and China .............................EAP
2. ASEAN and Cambodia ..........................EAP
3. Indochinese Refugees ........................EAP RP
4. ASEAN and MIAs in Southeast Asia............EAP
5. ASEAN and Australia .........................EAP
6. Pacific Basin-Human Resources Development...S/SA EAP
7. Statistical Data on ASEAN Economies.........EAP
Cooperative Project Papers Draft Clear
Individual Papers on Each Project .............AID & EAP
Other Agencies
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NOTES: S/S-S requires the original plus three copies of all
papers. Drafting and clearance information should appear
on a separate page. Papers should be delivered directly
to the S/S-S action officer. They should NOT be logged in.
Nicholas Platt
Executive Secretary
Attachments:
1. List of Due Dates
2. Country Paper
3. Agenda Paper
4. Background Paper
5. Project Paper
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MARCH 12
Biographies
MARCH 23 in E in draft
Scope Paper
Country Papers
Agenda, Background, and Project Papers.
MARCH 26 in final in S/S-S
Scope Paper
Country Papers
Agenda, Background, and Project Papers
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PHILIPPINES: COUNTRY PAPER
The Philippine economic growth rate has declined in recent
years and may be negative in real terms for 1983. The
country's economic difficulties are largely the result of the
world-wide recession which reduced demand for' its traditional
exports, although structural weaknesses in the economy also
played a part. The GOP resorted to heavy external borrowing to
offset trade deficits. The Philippines now faces a critical
liquidity problem due to capital flight and the drying up of
private bank credits in the wake of political uncertainties.
In October this year, the GOP declared a 21 percent devaluation
of the peso and a 90-day suspension (beginning Gctober 14) of
payments on private principal debt, a likely prelude to debt
rescheduling. The U.S., which has provided about X40 million
in Development Assistance and DSO million in ESF annually,
reprogram,~,ed the FY 84 ESF to allow faster disbursement, and we
are considering other support mechanisms which might be
instituted once the GOP reaches agreement with the Il`iF on a new
Standby. T}ie lonoer term outlook appears more favorable due to
the upturn -fn the world economy, recent economic reforms and
un~erlying factors such as a highly trained labor force and
oeographic location. Agreement with the I~;F is near, and this
could be the first step toward financial recovery. However,
recovery wi 11 require close cooper?~,t ion;,a;~ong the GOP,
interr,ational.fir,ancial institutions ar~d concerned bilateral
partners.
:l-~i lippi ne economic and financial difficulties have been
ex~cerl~,~t~d by the u?ettIed political situation. The
ir,co,~clusiv~ Aouino as.s.-:ssination investigation h?s seriously
da:~aced the regime's credibility., and the crucial question of
J?'arcos' successor, including concerns over the inadequacy of
the ex i st i ~~g transition ;~echani sm should he die or become
incapacitated in office, has further ~.?eaker.ed l~i~blic
confidence. In .response to growing de;r~ncs for }lim to
designate a successor, ?resident I~:arcos has reportc-clly agreed
to create a post of vice presid,~nt, toho ti.ould be elected with
the president beginning with the next schcdu]ed presidential
el~,ction in 1?87. D?ri,~g t)~e interim, the *?:,~tional ?=.ss~;nbly
Speek~r would suce~~d ;?;arcos should he be unable to co;~plete his
term. 'This change would require a constitutio:~al a;n~ndment.
Some p,?c~~ress has b~~n ?ade on ~:orking out a revised
el act ion co.~e for t}~,e T?;ay 1?34 2:~~tional i-.ssembly elections,
~:}?,ich will be r-,n irlp~~rtant test of political normalization.
:}~e de:~o~:r.-~tic opposition }gas been foc?ssing its energies on
public de~,o,~strations to keep ;?:arcos off balance, but it has
f~~ilcd to cc::,e up with a credible candidate or progr.:m to
chat lc?r.ge him dir~-?ct ly. ??;?~rcos has rejacted calls to resi~~n,
but it is uncertain t:h~~t:}-,er the ch,~nges now being ~Ii~cus~ed
c~~r.c~_rni;,y s;.,?_~_es:~i~n end parli,~?c?ntaiy e1.-~ti~ns ~.~ill be
suffi~.i,-?nt to ci~?-?,.k ;lie hu}~lic di.~.~ff,~ction with }pis rc~yine
ti;~,l~_}l h.-:~ ~,,,,??:n in r,~,:c?nt ti:c,~}:s.
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PROSPECTS FOR AT)1~TTM tAr rATT TRAnF UFC'nTTATTr1 tc
SS.S.II~
The United States is committed to continue the process of trade
liberalization. At Williamsburg, the summit partners agreed
to work toward trade liberalization negotiations in the GATT,
with emphasis on trade with developing countries. Since ASEAN
was supportive of our proposal for a North/South round at the
GATT Ministerial, we should look for ways to keep the ASEAN
interest in mutual trade liberalization alive.
S 1 GES D 1AT KTNG POTNTS
-- Our long-term objective in the trade policy field is to
maintain the momentum for trade liberalization that has built
up since the GATT was founded. We have an open mind as to how
this can b,e accomplished, and pledged at Williamsburg to continue
exploring this area. Any ideas you might have would be welcome.
-- At the same time we recognize just as you do, the need
to maintain the openness of existing markets, especially for
products from the developing world. I assure you we do not
take lightly our standstill and rollback commitments.
-- Certainly, as far as ASEAN is concerned, our market remains
very accessible. Between 1972 and 1982, your exports to us
have increased significantly, by over 23 percent per year.
GSP has been an important factor in your export growth; your
GSP shipments have increased almost five-fold over the life
of the program.
-- j:e are willing to open our market still further. However,
we will do so in the context of market-opening moves by others,
and will consider whatever ideas seem promising, provided they
are based on mutual market-opening. We look forward to ASEAN
being active participants in whatever new round of trade negotiations
emerges in the GATT.
LIMITED OFFTCT~T. USF
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LTMTTED OFFT T~qL tI~FL
-- Indeed, we are very willing to explore ways in which the
U.S. and ASEAN can lead the way toward freer trade by taking
liberalizing measures between ourselves. Ambassador Brock's
idea for the phased elimination of all barriers to trade between
ASEAN and the United States presented in Singapore earlier this
year was in that spirit. It is one option we are considering;
we are willing to explore others, and as I said earlier your
ideas are most welcome.
F.SSFI~TTTAT FA T(1RC
The long-term objective of the United States in the trade policy
field is to ruaintain the momentum for trade liberalization that
has built up since the GATT was founded, and to explore new
opportunities for accelerating the movement toward freer trade.
In the months preceding the GATT Ministerial, the O.S. and
Switzerland sought endorsement of a GATT round of trade negotiations
between developed and developing countries. Although the Ministers
did not agree to an immediate launching of negotiations, they
did call for a study within the GATT Committee on Trade and
Development (CTD) of "ways in which to facilitate increased
trade bet~~een developed and developing countries."
The GATT has already approved the Secretariat's outline of the
study on this issue, which we now expect will be available before
the next CTD meeting in Nlarch. The CTD is also undertaking
several other initiatives following up on the GATT Ministerial
including a review of implementation of Part IV of the GATT
and the "Enabling Clause" which outlines provisions for special
and differential treatment for LDCs and tropical product consul-
tations. The U.S. hopes that these efforts will result in the
progressive integration of developing countries into the trading
system by persuading them to open their markets. The structure
of the proposed North/South round, which envisages tariff reductions
to developing countries in exchange for LDC tariff and non-tariff
concessions will contribute significantly to that objective.
The idea of a North/South Round has received additional attention
since the GATT Ministerial. The Summit partners at Williamsburg
agreed to "work to achieve further trade liberalization negotiations
in the GATT, with particular emphasis on expanding trade with
and among developing countries."
LTMTTED OFFTC'T~1~ USE
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l,TMTTED OFFTrTAT USF
The ASEANs were supportive of the North/South Round at the
Ministerial. Their belief that open markets are in their own
best interest has been partially obscured by their short-term
problems. We hope that the ASEAN countries will remain open
to the possibility of a North/South Round in the future and
will continue to work with us on avenues for mutual liberalization
in the context of the GATT.
DRAFTED: EB/OT/ODC:N.Barrera`
USTR:C Suro-Bredie
11/21/83 632-3202
Clearances..: EB/ODC:B. Hirshorn C,~1'b ~~
EA/EP :L.Moriarty ~~ ~
E : G. Al d o na s GX'~ ~,--
Labor :D.Parker c.~s~c?~
Commerce: L. Droker
cS ~,-
Treasury: L. Berger
GS~
-
EA:EP: H. Bardach
~
CS4~Q:
EA:A.C. Albrecht
cS~~'-"~
LIMITED OFFT TAL USE
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INDOCHINESE REFUGEES
While the influx of Indochinese refugees into the ASEAN
first asylum countries has declined markedly, the international
resettlement effort has also been reduced. Some ASEAN
governments fear that they may be left with a large residue of
Indochinese refugees.
SUGGESTED TALKING POINTS
-- The US will give continued emphasis to the
international resettlement of Indochinese refugees in ASEAN
countries. President Reagan is personally committted to this
program.
-- While the US ceiling .for Indochinese refugees was
reduced from 64,000 in FY82 to 50,000 in FY83, our actual
off-take will undoubtedly be larger than last year. This is
because we a_re processing refugees more quickly and at a higher
approval rate since the President issued new processing
guidelines. '' r
-- We are working with ot]',er resettlement countries to
ensure that the ASEAN first settlement countries will witness a
steady reduction in the Indochinese refugee pt~pulation, not
only this year but until the problem is effectively resolved.
ESSENTIAL FACTORS
The Thais in particular are upset because we are unable to
meet their request for 3,500 departures monthly. T'ney would
like to see our off-take keep pace with the much more efficient
processing rate. h'e cannot, however, meet this request under
current budgetary and space (in the refugee processing centers)
constraints. .?7e wish to keep the ASEANs focussed on the
overall reduction in the refugee population, not on actual
processing or departure figures, which will necessarily decline.
November 25, 1983
CONFIDENTIAL
DI:CT~; OADR.
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DEVELOPMENT COOPERATION:
NEW INITIATIVES
SUPPORTED BY OR REQUESTED OF A.I.D.
ISSUE: ASEAN Energy Cooperation in Development Project
This project was signed during the 4th ASEAN-U.S. Dialogue,
and has been fully funded by A.I.D. at the original commitment
of $1.0 million. It has three sub-components, for coal
utilization, energy efficiency in building construction, and
alternative energy systems for water pumping. ASEAN's
September 27, 1983 submission of proposals to ALO Melville has
requested that the components for energy conservation and water
pumping be extended or revised.
A successful energy conservation in building construction
pilot activity has been conducted in Singapore, including some
consultation with other ASEAN countries. An ASEAN workshop is
planned for early 1984 that will pave the way for a broader
activity involving the Philippines and Thailand. This phase
could be developed as a FY 85 amendment to the ASEAN Energy
Cooperation in Development Project. The Philippine USAID
mission, if it goes ahead with its planned energy conservation
project, might be willing to manage the activity. About
X500,000 would be needed if Singapore, Philippines, and
Thailand were included in the next phase. A.I.D. could not
make a formal commitment to amend the project at the Dialogue,
but is willing to review the proposed amendment.
A.I.D. is working out final details to permit the
water-pumping sub-component to begin. The main problem is
availability of Government of Malaysia resources for the
village water supply development and maintenance of the
demonstration site. A.I.D. is ready to negotiate a contract
with the U.S. contractor, Sheladia, for the technical
assistance. No additional funding is necessary at this time to
carry out this sub-component, nor does A.I.D. recommend
extending this sub-component beyond the original plan.
As the U.S. Delegation departs for the Dialogue, we learn
that the Indonesians may propose to extend the coal technology
sub-component, and that their proposal would be presented at
the Dialogue.
Drafters:AID/ASIA/ISPA:LKuhn:AID/ASIA/TR:RIchord:(sub);.~mp:11/28/83
Clearance:AID/ASIA/ISPA:DBarrett (draft) 11/28/83
EA/ED:HBardach/EJCheskv ~ ~.
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