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    Japan
     May 22, 2007
Page 1 of 3
Japan revs up its Indochina diplomacy
By Hisane Masaki

TOKYO - Amid intensifying rivalry between Tokyo and Beijing over influence in Asia, Japan is revving up its drive to strengthen relations with countries in Indochina, an economically backward but geopolitically important part of the region.

The target countries are Cambodia, Laos and Vietnam, which are collectively referred to as the "CLV" countries. To be sure, these countries are all relatively small in terms of economic size and



represent a tiny fraction of East Asia's economy.

Their combined gross domestic product (GDP) was only about US$62 billion in 2005, with Vietnam, the biggest of the three, accounting for about 85% of the total, with $52.8 billion. The combined GDP of Japan, mainland China, South Korea, Hong Kong, Taiwan and the 10-member Association of Southeast Asian Nations (ASEAN) totaled nearly $9 trillion in 2005.

But their location, with China and India, the world's two most populous countries, looming over them has made the CLV nations much more important for Japan's Asia policy than their economic figures suggest. In addition, for countries outside ASEAN such as Japan and China, assistance in the development of the CLV nations, the least developed of the ASEAN nations along with Myanmar, has become an increasingly important avenue to strengthened ties with the entire ASEAN and thereby their clout in the region. ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam and has a combined population of some 530 million.

Last week, Japan invited Laotian Prime Minister Bouasone Bouphavanh. During his four-day trip, Bouasone met with Prime Minister Shinzo Abe and other Japanese officials to discuss bilateral relations and regional and global issues. Bouasone also had an audience with Emperor Akihito. For Laos as well as Cambodia and Vietnam, Japan is by far the biggest aid donor.

Among other things, Abe and Bouasone agreed to accelerate negotiations on an investment treaty between the two countries to conclude it at an early date, according to their joint press statement. The treaty is aimed at encouraging Japanese investment in the landlocked nation.

The two leaders also emphasized the importance of an enhanced integration of the Laotian economy into the world economy. Abe expressed his support of Laos' accession to the World Trade Organization (WTO). Cambodia and Vietnam already joined the WTO, in October 2004 and in January this year, respectively.

In addition to bilateral relations, Abe and Bouasone discussed regional and global issues, including the issue of North Korea's nuclear program and Laos' accession to the International Whaling Commission (IWC). Laos has diplomatic ties with North Korea, while Japan does not. Japan wants Laos to use its relations with Pyongyang to help resolve the issues of the reclusive Stalinist state's past abductions of Japanese citizens as well as its nuclear ambitions.

At the IWC, Japan is leading the pro-whaling camp, calling for the lifting of a moratorium on commercial whaling. Abe told Bouasone that he welcomes his country's decision to join the IWC and looks forward to cooperating with Laos at the IWC. But Bouasone did not make it clear which side his nation will take - pro-whaling or anti-whaling.

On Friday, the day after Bouasone left Tokyo, Japan announced that Cambodian Prime Minister Hun Sen would make a four-day visit to Japan starting on June 13. During the visit, the countries are expected to sign an investment treaty aimed at encouraging Japanese investments in Cambodia. Japan has signed such treaties with 11 countries, including China, Russia and South Korea.

In November, Vietnamese President Nguyen Minh Triet is scheduled to pay a visit to Japan. Last October, Vietnamese Prime Minister Nguyen Tan Dung also came to Tokyo as the first official foreign guest invited by the government of Abe, who took office in September. The leaders issued a statement calling for a "strategic partnership" for peace and prosperity in Asia.

Tug-of-war
Amid growing talk of creating an East Asian Community in recent years, Japan and China have been jockeying for the leadership role in what will be the long and arduous process of community-building. The two Asian powers have competed for stronger and closer ties with ASEAN. Although the 10 ASEAN members are much smaller than Japan and China in economic size individually, they wield a strong voice in East Asian affairs as a group.

As East Asia began to move toward greater regional economic integration several years ago, China had a head start over Japan in strengthening ties with ASEAN by signing a free-trade agreement (FTA). The Sino-ASEAN FTA took effect in July 2005. Japan and ASEAN are still negotiating an FTA, although they are expected to ink the deal this year.

Two-way trade between China and ASEAN has been growing at a much faster pace than that between Japan and ASEAN. China's investment in ASEAN is also surging sharply, although the amount is still dwarfed by Japan's investment in the grouping.

China has taken a lead over Japan on the political front as well. China signed ASEAN's 1976 Treaty of Amity and Cooperation in October 2003, a few months before Japan did. Japan initially balked at signing the ASEAN treaty, which provides for, among other things, peaceful settlement of conflicts and non-interference in internal affairs, out of political consideration to its most important ally, the United States.

In 2001, China signed a "Declaration of Conduct" with ASEAN to prevent conflicts in the South China Sea, where China, four of the ASEAN members - Vietnam, the Philippines, Malaysia and Brunei - and Taiwan claim all or part of the Spratly Islands. In March 2005, China agreed with Vietnam and the Philippines to explore for oil in the disputed waters.

These aggressive Chinese peace overtures toward ASEAN apparently reflect a desire to assuage the perception of China among some in ASEAN as the most serious security threat to their countries and thereby to forge closer ties with the grouping. Cementing ties with ASEAN in general - and the joint oil-exploration agreement with Vietnam and the Philippines in particular - is also seen as part of efforts to preempt a possible US-led containment of China.

The Sino-Japanese tug-of-war over greater influence in Southeast Asia has also opened a new front - the Mekong River basin. Moves by Japan and China to help the development of the Mekong River basin have intensified in recent years.

The 4,425-kilometer Mekong River originates in Tibet and flows through China's Yunnan province, Myanmar, Thailand, Laos, Cambodia and Vietnam into the South China Sea. It is the main artery for Indochina. The Mekong basin, abundant in natural and human resources, has attracted much attention as an untapped frontier for development since the early 1990s, after an end to the civil war in Cambodia and other Cold War hostilities in the region.

The Mekong region is increasingly seen by many Japanese and Chinese companies as a promising investment destination. But for Japan and China, assistance in the development of the Mekong region has also become a very important avenue to strengthened ties with the entire ASEAN.

For ASEAN, correcting the so-called "ASEAN divide" - the huge gap in wealth between rich and poor members - is a high priority 

Continued 1 2


A dry run for a Japan-US FTA (Apr 27, '07)

 
 



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