*EPF405 03/18/2004
Text: U.S. Has Strengthened Its Position in Asia, Chairman Leach Says
(Rep. Jim Leach's opening remarks at March 17 hearing) (1220)

The Bush administration has strengthened its position in Asia, according to Representative James A. Leach (Republican of Iowa).

In his opening remarks at a hearing March 17, Leach, the chairman of the House International Relations Subcommittee on Asia and the Pacific, said the administration "has wisely stressed continuity in recognizing the centrality of Asia to American interests."

"On balance, the administration has strengthened America's position in Asia and thereby bolstered stability in the region, in part through improved relations with each of the region's great powers, most notably China but also India and Japan," he said.

Leach said the United States should be prepared "to discretely lend its support to sustain" the current peace process between India and Pakistan.

Regarding Pakistan, Leach acknowledged that country's role as "a linchpin in the campaign against terrorism," but called on Islamabad "to promptly and fully disclose the full extent of the nuclear proliferation activities associated with Dr. A.Q. Khan."

On the Korean peninsula, Leach said, the United States "deserves much credit for constructing a multilateral process that holds out the prospect for a peaceful resolution of the North Korean nuclear issue." But "pressing uncertainties" remain regarding the size and sophistication of the North's nuclear arsenal, he said.

Leach also noted that U.S. alliances with South Korea and Japan "are in the process of transition."

Washington needs to be more attentive to rapid economic, demographic, and political changes in Korean society, he cautioned. And in Japan, there is a need to reexamine both its security policy and its role in Asia and the Pacific, he said.

Following is the text of Leach's remarks:

(begin text)

Opening Statement
Representative James A. Leach
Chairman, Subcommittee on Asia and the Pacific
Hearing on the U.S. and Asia: Continuity, Stability and Transition
March 17, 2004

On behalf of the Subcommittee, I would like to welcome our witnesses to what we hope will be an informative and timely discussion on important trends in Asia and the Pacific and their implications for the United States. We are fortunate to have with us this morning a highly distinguished group of witnesses, several of whom flew in from the West coast while others just returned from lengthy trips to the region. We are most appreciative of your presence and we look forward to your insights.

I would like to notice Members that we anticipate an active schedule during the session. Next week we will review developments in Burma. In April and May, we hope to hear from Assistant Secretaries Kelly and Rocca on broad U.S. policy objectives in the region. We also anticipate a hearing on, and markup of, the North Korean Human Rights Act. The Subcommittee is also planning hearings on Hong Kong, the challenge of HIV/AIDs in India and elsewhere in the region, as well as Islam in Asia.

Before we turn to our speakers, I would like to make a few brief observations.

First, the importance of Asia to American national interests is self-evident.

-- Three of the world's four most populous countries are located in Asia. China and India alone account for about two-fifths of global population.

-- The region is home to three of the most volatile international security challenges in the world today: North Korea, the Taiwan Strait, and relations between India and Pakistan. China, India, Pakistan, and perhaps North Korea, are all armed with nuclear weapons. In addition, Al Qaeda-affiliated terrorist groups remain a potent threat within the region.

-- Although the U.S. military presence in the region may be evolving, the U.S. still deploys nearly 100,000 troops in East Asia and the western Pacific. Five of the seven worldwide U.S. mutual defense treaties involve East Asian countries, including Japan, South Korea, Australia, Thailand, and the Philippines.

-- In economic terms, U.S. trade with Asia accounted for about one-third of all U.S. exports and over forty percent of all U.S. imports worldwide in 2002. The U.S. has well over $50 billion invested in the region. Meanwhile, in terms of capital flows, over the last two years Asian governments - led by Japan and China -- have added an astonishing $750 billion to their $2 trillion holdings of foreign currency reserves. The vast majority of these purchases have been of U.S. Treasury securities, thereby effectively financing America's trade deficit.

-- In addition, and contrary to widespread perceptions, the majority of the world's Muslims are not Arabs. In fact, just four Asian countries - Indonesia, India, Pakistan, and Bangladesh - are home to nearly 600 million Muslims. Indonesia is also the world's largest Muslim country.

In this context, the Administration has wisely stressed continuity in recognizing the centrality of Asia to American interests. On balance, the Administration has strengthened America's position in Asia and thereby bolstered stability in the region, in part through improved relations with each of the region's great powers, most notably China but also India and Japan. On the other hand, the Asian landscape also contains obvious points of instability as well as the seeds for far-reaching change and transition.

-- On the Korean peninsula, the U.S. deserves much credit for constructing a multilateral process that holds out the prospect for a peaceful resolution of the North Korean nuclear issue. Nonetheless, there are a number of pressing uncertainties, including the size and sophistication of the North's nuclear arsenal, Pyongyang's ability to manage multiple internal crises, whether China's interest in stability trumps concerns about nuclear dominoes in Northeast Asia, and viable contingencies should the North ultimately fail to dismantle its nuclear weapons.

-- It is also imperative to pay careful attention to developments across the Taiwan Strait. While expanding cross-Strait economic ties are a positive, recent military and political trends do not appear to be particularly conducive to stability.

-- Our alliances with South Korea and Japan are in the process of transition. As we redefine the US-ROK alliance to focus on common values and regional stability, Washington needs to be more attentive to rapid economic, demographic, and political changes in Korean society. Meanwhile, a variety of pressures is leading our great friend and ally Japan to reexamine both its security policy and its role in Asia and the Pacific. Here it is vital that the decisions be left to the Japanese, but that Washington and Tokyo think through these issues in a collaborative way.

-- In South Asia, the U.S. should be prepared to discretely lend its support to sustain the current Indo-Pakistani peace process. In addition, recognizing that Pakistan remains a key U.S. partner and a linchpin in the campaign against terrorism, it is the clear responsibility of Islamabad to promptly and fully disclose the full extent of the nuclear proliferation activities associated with Dr. A.Q. Khan.

-- In the final measure, the most important bilateral relationship of the 21st Century is likely to be that between China and the United States. If the relationship is ill-managed, the likelihood of conflict and economic trauma will be great. But if the relationship is managed well, the benefits in terms of economic prosperity and world peace will be commensurate.

In any regard, we look forward to your comments and the discussion afterward.

(end text)

(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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