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SUMMARY CONCLUSIONS OF
THE THIRD SENIOR OFFICIALS' MEETING FOR
THE THIRD APEC MINISTERIAL MEETING
KYONGJU, REPUBLIC OF KOREA
27-29 AUGUST 1991
1. The third Senior Officials' Meeting for the third APEC Ministerial Meeting was convened in Kyongju,
Korea on 27-29 August 1991. Delegations from Australia Brunei Darussalam, Canada, Indonesia,
Japan, Malaysia New Zealand, the Philippines, the Republic of Korea, Singapore, Thailand and the
United States participated at the Meeting. The Deputy General of the ASEAN Secretariat, the Director
General of the PECC Secretariat and a representative of the South Pacific Forum (SPF) Secretariat
were present as observers.
2. The Meeting was chaired by Mr. See-Young Lee, Assistant Minister for Policy Planning, Ministry of
Foreign Affairs of Korea.
3. Mr. Weerawit Weeraworawit of the ASEAN Secretariat and Mr. Young-Jin Choi, Senior Coordinator
for Policy Planning of the Ministry of Foreign Affairs of Korea, acted as Rapporteurs of the Meeting.
ADOPTION OF AGENDA
4. The draft provisional agenda was adopted without amendment, and appears as Annex 1.
REPORTS OF THE INFORMAL GROUPS
TRADE LIBERALISATION IN THE REGION
5. Senior Officials considered the report of the informal group on regional trade liberalisation, chaired
by Australia (see Annex 2), and the report on developments in the Uruguay Round prepared by APEC
representatives in Geneva.
Senior Officials reaffirmed that the successful and early conclusion of the Uruguay Round remains the
highest priority for APEC economies. Senior Officials also reaffirmed the mandate given to APEC
representatives in Geneva to prepare an issues paper on APEC's contribution to the Uruguay Round
for Ministerial consideration in November. It was agreed the paper should be prepared by mid-October
for review in capitals, outlining briefly the state of the negotiations and identifying the major issues still
to be resolved. It should also recommend elements for possible inclusion in a statement by Ministers
in November.
Senior Officials endorsed the report to Ministers presenting for their consideration the principles,
scope and process by which trade liberalisation in APEC might be carried forward. There was
consensus that officials should be involved in all aspects of the work, drawing on input from other
regional institutions such as PECC and its Trade Policy Forum, from the private sector, including
PBEC, as well as from other interested expert groups. The Senior Officials noted that Ministers may
also wish to consider seeking input from a group of eminent persons in the APEC region on more
wide-ranging, "visionary" areas of the work.
ECONOMIC TRENDS AND ISSUES
6. Senior Officials received a report from the Ad Hoc Economic Group which met on 27 August 1991
(see Annex 3), under the Chairmanship of Canada and Thailand, in accordance with the agreement in
the last SOM in Chejudo.
The principal objectives of the meeting were to review medium term economic prospects for the APEC
region, discuss savings and investment trends, and identify other issues of ongoing concern to the
economies of the region. The Ad Hoc Economic Group agreed that its deliberations would consist of
exchange of views in the pursuit of common economic objectives, and not the coordination of
economic policies.
Senior Officials welcomed the active role played by all participants, which allowed for a review of a
number of economic parameters, including growth, inflation, current account balances and structural
reform. Senior Officials noted that participants had also identified a number of issues of ongoing
concern, such as labor and capital shortages, patterns of trade and investment flows in the region,
environment and the economy, market access and others.
Senior Officials also endorsed a Japanese proposal to undertake a survey of economic linkages
among APEC economies, and agreed that a meeting of the Ad Hoc Economic Group would be called
at which the results of the survey would be discussed.
Senior Officials also requested that Canada and Thailand prepare a Report for Ministers for
consideration by the SOM prior to the Ministerial Meeting in Seoul in November.
MATTERS RELATING TO THE WORK PROGRAM
PROGRESS REPORTS
7. Senior Officials reviewed the progress in the ten work projects on the basis of the reports presented
by the Working Group shepherds.
A. Review of Trade and Investment Data
The United States reported on progress to date of the currently underway concerning data on
merchandise and services trade and investment flows (see Annex 4). Guidance was sought on the
merchandise trade data review with respect to minimising discrepancies in data elements.
Senior Officials directed the shepherds to prepare a set of specific options on the three programs and
recommendations for Ministers to consider in November, identifying resource implications of various
options.
B. Trade Promotion: Programs and Mechanism for Cooperation
Korea presented a report on the status of the five trade promotion programs and progress achieved in
each area (see Annex 5). Singapore gave a demonstration of the APEC Electronic Information
Network (ELIN) and Korea announced that the first Asia-Pacific Trade Promotion Training Course will
be held in Seoul in September 1991. Brunei offered to host a Working Group meeting on trade
promotion.
C. Expansion of Investment and Technology Transfer in the Asia-Pacific Region
Indonesia presented a progress report, focusing on the establishment of an investment and
technology information network, and assistance for the development and management of technoparks
(see Annex 6). Japan reported that the Working Group meeting had addressed investment policies
and that further discussions would be held in an investment promotion seminar, in which the private
sector would be actively involved.
Japan also finalised a "Technopark Manual" and a "Technopark Inventory", incorporating each
participant's input. Singapore proposed to host the third Working Group meeting together with an
investment promotion seminar in March 1992. Senior Officials recognised the need to minimise
duplication between the investment and technology information network and other networks, such as
ELIN, and to enhance private sector involvement in this field of cooperation. It was suggested that the
Working Group should further consider the scope for APEC to facilitate private sector data exchanges
on investment and technology transfer in the region.
D. Asia-Pacific Multilateral Human Resources Development Initiative
Indonesia reported on progress on a number of fronts, including the formation of networks and work
plans on economic development, business management and industrial technology (see Annex 7).
Coordination of the Working Group with the PECC HRD Task Force and the APEC Partnership in
Education and Training was also reviewed.
Senior Officials noted that Japan will organise a symposium on APEC Partnership in Education and
Training in December 1991, and it was agreed that the next Working Group meeting would be hosted
by Thailand in January 1992.
The Working Group requested Senior Officials to address the funding issue as the work plans had
progressed to the point where financing was required in order to implement the next stage of the
project. Senior Officials requested details of the funding required for the various options.
E. Regional Energy Cooperation
Australia introduced the report, noting that the next Working Group meeting is scheduled to be held in
Australia on 25-26 September 1991 (see Annex 8). Progress was reported on the energy supply and
demand theme and on the research, development and technology transfer theme. There had been
some delays in the energy and the environment and the energy efficiency and conservation themes.
Some of the work in these areas may have financial implications which will also need to be addressed.
Australia asked Senior Officials to encourage their domestic authorities to provide timely and accurate
advice to the various studies being undertaken in this project.
F. Marine Resource Conservation: Problems of Marine Pollution in the APEC Region
Canada reported on the Working Group meeting held on 21-22 August 1991 in Singapore chaired by
the Philippines and co-chaired by Canada (see Annex 9). The meeting concentrated on land-based
pollution problems in APEC and integrated coastal plans and development with recommendations on
the establishment of a task force of scientific and technical experts and one or two highly focused pilot
projects to address specific concerns.
G. Telecommunications
The United States reported progress of the four major programs: compilation of telecommunication
environments, EDI, teleports, and human resources development in telecommunications (see Annex
10). The next Working Group meeting is to be held in Jakarta, 30 September - 2 October 1991 .
Thailand reported on its progress with the Human Resource Development Project Manual/Guideline,
"How to Approach Training within Telecommunications Organisations" and the specific contribution to
chapters of the manual which other APEC participants will make. Japan highlighted the success of the
teleport seminar in involving the private sector and stressed the importance of the private sector's
continuous involvement.
H. Fisheries
New Zealand reported on the first Working Group meeting held in Wellington on 24-26 June 1991 (see
Annex 11). The meeting established a work program covering the first phase of the project, namely,
examination of the existing pattern of cooperation in fisheries among APEC participants. The
information for this examination will be provided through a series of papers now being prepared and
which will be considered by the next Working Group meeting to be held in Japan in March or April
1992.
I. Transportation
The United States reported on preparations for the first Working Group meeting, which will take place
in Singapore on 9-10 October 1991 (see Annex 12). Eight APEC participants have offered comments
on the proposed terms of reference drafted by the United States. Senior Officials noted that human
resources development and technology transfer could be incorporated into the draft terms of
reference.
J. Tourism
The United States reported on the first Working Group meeting of the Tourism Work Project, at which
a number of subjects and activities were discussed for further consideration (see Annex 13). The U.S.
noted a general inclination to undertake further activity in the areas of identifying and reducing
impediments to tourism, tourism and the environment and tourism education. Singapore suggested
the group should also consider a project on tourism promotional efforts related to "Visit ASEAN Year,
1992." A more specific work plan will be discussed at the next working group meeting.
MANAGEMENT OF THE WORK PROGRAM
8. Korea, as Chair, circulated a list of major achievements of the work projects for the information of
Senior Officials (see Annex 14).
9. Senior Officials considered a number of issues in relation to the adequacy of the management,
coordination and funding arrangements of the work program. It was noted that several Working
Groups had progressed to the point where these issues had to be addressed. Concern was also
expressed over the need to avoid overlap and duplication of effort. Senior Officials agreed that there
was a need to review administrative and funding arrangements.
10. Senior Officials also considered how to draw together the key elements of the work program in a
consolidated report to the Ministers. It was agreed that a group composed of the two previous APEC
Chairs (Australia and Singapore), the current Chair (Korea), and the next two Chairs (Thailand and
USA), would, in consultation with the Working Group shepherds, draw up a report. Following
consideration of the report by Senior Officials, it would be presented to Ministers in November. The
report will include an overview of progress achieved to date, problems currently faced, and policy
issues for Ministerial consideration, including possible terms of reference to Senior Officials to review
administrative and funding arrangements. It will also consider ways to encourage private sector
participation in the work program.
11. Senior Officials also recognised that the issues of a support mechanism and financing existed in
relation to the work of APEC as a whole. They agreed to seek a mandate from Ministers at their Seoul
Meeting to examine this issue further and to report to the fourth Ministerial Meeting in Bangkok.
PREPARATION FOR SEOUL MINISTERIAL MEETING
12. Korea briefed the Meeting on the draft provisional agenda and administrative arrangements for the
third APEC Ministerial Meeting to be held in Seoul on 12-14 November.
13. The Chairman submitted a draft Declaration on Asia Pacific Economic Cooperation to the Meeting
for consideration by Senior Officials. There emerged a broad view that APEC has arrived at a stage
where it needs a statement of principles and that the draft reflects, inter alia, the existing elements of
agreement and the decisions adopted by the previous APEC meetings. Senior Officials agreed that
further consultations be held with a view to reaching an agreement, as soon as possible, on the draft
(see Annex 15).
PARTICIPATION IN APEC
14. The Chairman reported to Senior Officials on the result of his consultations with the People's
Republic of China, Taiwan and Hong Kong on their participation in APEC. Senior Officials welcomed
the report, and agreed to recommend to their Ministers that the three be invited to participate in APEC
at the third Ministerial Meeting in Seoul.
Senior Officials commended Ambassador See-Young Lee for his skill and dedication in achieving this
important result.
15. Senior Officials took note of the interest expressed by Mexico, Chile, Peru, Ecuador, Argentina, the
Soviet Union, the Pacific Basin Economic Council (PBEC) and the Confederation of Chambers of
Commerce and Industry (CACCI) in participating in APEC. Senior Officials reaffirmed that APEC is an
open and evolving process, and decided to recommend to Ministers that the issue of participation be
considered further by Senior Officials.
OTHER BUSINESS
16. Senior officials agreed to meet again in Seoul immediately prior to the third Ministerial Meeting.