*EPF113 06/07/2004
Transcript: Asian Regional Integration Coming of Age, Amb. Baker Says
(Ties promote prosperity, security against extremist threats) (4660)

Regional integration in Asia is coming of age, leading to tighter economic relations and enhanced security arrangements, according to Howard H. Baker Jr., the U.S. ambassador to Japan.

Baker spoke at the Nihon Keizai Shimbun "Nikkei Forum" 10th Annual Conference on "The Future of Asia" in Tokyo on June 3.

Led by the dramatic successes and dynamic growth of the Japanese and Chinese economies, the ambassador said, "Many of the governments in Asia have embraced the concept of tighter regional economic relations and have started to create a web of Free Trade Agreements across the region." Increasingly, he added, regional integration has been institutionalized through the organizational framework provided by the forum for Asia-Pacific Economic Cooperation (APEC) and the Association of Southeast Asian Nations (ASEAN).

According to Baker, that organizational framework also has been used to enhance regional security since the terrorist attacks of September 11, 2001. "This indicates to me that the nations of the region are capable of simultaneously increasing their sense of regional identity and carrying out their responsibilities as world citizens," he said.

Global terrorism and the North Korean nuclear threat make the need for integration all the more urgent, Baker told the forum. "[W]e know that we all live in a dangerous neighborhood, and that there are strains that breed terrorists and other challenges to our security," he said. "Extremism is the enemy, be it ideological distortions or dictatorial ambitions, the violent acts of fanatics or the systematic oppression of rogue regimes...."

As they establish the basis for cooperation and integration in commerce and security, Baker said, Asian nations should turn their attention to overcoming the obstacles of the region's "diverse cultural landscape" and lengthy history. Expressed in terms of shared goals and values, he said, the region's diversity will give it strength.

In response to questions from the audience, Baker emphasized the importance of the Six-Party Talks (involving the United States, China, Japan, Russia, South Korea, and North Korea) to a peaceful resolution of the North Korean nuclear threat and expressed optimism about the future of relations between China and Taiwan.

Following is a transcript of the ambassador's remarks, followed by a question-and-answer session, as prepared by the U.S. Embassy in Tokyo:

(begin transcript)

Ambassador Howard H. Baker, Jr.
At Nihon Keizai Shimbun "Nikkei Forum"
10th International Conference on "The Future of Asia"

3 June 2004
Imperial Hotel
Tokyo

AMBASSADOR BAKER: Thank you very much. May I say first of all that it's a delight to be here, and a great honor to be in the presence of so many of Asia's leaders to discuss the future of the region. My friends, while I am no longer burdened with youth, at gatherings like these in the presence of so much experience and responsibility, I always feel like the new kid on the block. The United States is a young nation, and I share with my countrymen their respect for cultures, your cultures, that trace your history not in centuries, but in millennia. While America looks back on the invention of the airplane, the automobile, Asia looks back on the invention of agriculture, philosophy and religion. That realization is a humbling prospect.

But my friends, we are not here to look back. We are here to look forward. We live in a time of great change, both technological and cultural. The global community is built on access to instantaneous communication, and nearly instantaneous transportation. Not only does any child with a mouse and an internet connection have more information available at his or her fingertips than the greatest scholars of my youth could research in half a lifetime from the world's great libraries, but the average citizen can now afford to travel farther in a day than their parents traveled in a lifetime, and visit in comfort the most exotic corners of the Earth, unavailable not long ago even to the most privileged and adventurous explorer. That access to the world and its ideas must inevitably change the way we think, as well as the way we live, and indeed it does.

Although the theme of this forum is "Laying the groundwork for Asian regional integration," it is apparent that regional integration is already well advanced in many ways. The principal engine for this integration has been economics. The rise of Asian economic might - starting first with Japan, but now extending through all of East Asia, down to Southeast Asia, and as far as India - has lifted hundreds of millions of people out of poverty, changed the balance of world power, and created new allies in our common pursuit of human welfare and freedom. And much of this was the result of dramatic increases in trade and investment directed by private sector initiatives.

Japan, of course, was the first regional leader to provide impetus to trade and investment throughout the Asian region, and it has now been joined by a very dynamic Chinese economy, which adds a second major engine for growth in the area. Many of the governments in Asia have embraced the concept of tighter regional economic relations and have started to create a web of Free Trade Agreements across the region. I fully support this development, and I hope that these aims will be sufficiently high and appreciated to be collectively exercised, and to be a positive influence on world trade and investment and the institutions dealing with these things.

While Asian regional institution building has lagged behind some other regions, ASEAN and APEC are coming of age, and are beginning to provide an organizational framework for regional integration. Some of this has also been aimed at enhancing regional security in the post-9/11 world, a development that we all welcome. This indicates to me that the nations of the region are capable of simultaneously increasing their sense of regional identity and carrying out their responsibilities as world citizens.

But the challenge of regional integration is far more than security arrangements and business agreements, as important as those may be. Along with economic integration, regional integration is cultural integration as well. It celebrates what is common among societies, while respecting what is unique about each culture that it embraces. We often note how young people in Asia and America listen to the same music, watch the same movies, wear the same clothes, and increasingly, eat the same foods. They share much in common that, certainly, their parents did not. More than any previous generation, they are of the same time.

But they are not of the same place. While the culture they share with their generation builds bridges around the globe, they also share the culture of their own land. A family is made of unique individuals, and the global family is no different. So integration does not mean that we have to choose one culture over another. Young people today may be citizens of the world, but they are still citizens of Japan, China, Korea, Indonesia, Malaysia, Singapore, and the Philippines.

Don't forget that the United States could in fact be many countries. We have some notable regional differences and internal historical conflicts of our own, and a population that is among the most culturally complex on the planet, and perhaps growing more so every day. But we have found that what we have in common is more important than what separates us.
When I spoke of Asia's long history, I was speaking not just of ancient history. As Asian countries strive to build a future together, I think it is worth remembering that Japan and the United States have overcome, in just two generations, a recent history of terrible war in order to forge an alliance and a friendship that I believe is unsurpassed. We have moved on from the conflicts of the past and have become friends in the present. We have our disagreements, some very complex and emotional, but we work them out to our mutual benefit. Each nation in the region has a unique history of relations with every other nation, and each partner brings different perspectives of the past. That diversity could bring conflict if expressed through our differences, but it brings strength and energy if it is expressed through our shared values and our shared goals. Greater regional integration will mean that self-interest must be multilateral.

The most obvious parallel of regional integration in recent times has been the dramatic transformation of the European community. The EU has not been an overnight success, but it is working because the European member nations understand that whatever historical conflicts might have separated them, their future lies in cooperation. Today, Asia is seeking its own common ground, and there are formidable obstacles that must overcome. To succeed, you must integrate a more diverse cultural landscape with an even longer history than Europe has, and do so at a time when the worldwide plague of terrorism threatens all of us, everywhere. The Middle East may draw the most attention, but we know that we all live in a dangerous neighborhood, and that there are strains that breed terrorists and other challenges to our security. And the danger is not limited to religious fanaticism. The nuclear threat from the north casts a shadow on all of us, regardless of faith. Extremism is the enemy, be it ideological distortions or dictatorial ambitions, the violent acts of fanatics or the systematic oppression of rogue regimes, small cells of hate mongers or state sponsored totalitarians are of equal danger.

We are making progress in this struggle. Recent developments in Iraq are encouraging. Now that the new Iraqi interim government has been named, it is vital that the international community demonstrate its support for the people of Iraq and their transition to full sovereignty. President Bush has made clear that the United States is committed to standing with this Iraqi government. I was not surprised to see statements of support from Foreign Minister Kawaguchi and Chief Cabinet Secretary Hosoda as well, demonstrating that Japan, as it has all along, is committed to supporting the Iraqi people in their efforts to form a free, democratic and prosperous country. The new Iraqi government is the product of months of consultations by UN Ambassador Brahimi, and reflects a broad cross-section of Iraqis. I hope that the international community will respond to the call by Prime Minister-designate Allawi to "contribute to the protection of Iraq until it is able to stand on its own feet."

The international community must also respond to threats from the microscopic world. The mobility I spoke of earlier brings mobility to disease as well, which seems to change and adapt as quickly as our doctors and scientists can find cures. SARS is closely associated with this region, and AIDS is an enemy to civilization that we must defeat as surely as we must defeat the enemies that threaten us with guns and bombs. Our governments must also meet their responsibilities for food safety and for food security as surely as they must for public safety and national security. And we need to agree on how to preserve the health of our planet, or it won't matter to future generations what else we achieve if we fail to save the environment.

So, my friends, our challenge is to prevent any virus - biological, technological or ideological - from infecting the body of civilization. I don't presume to have the answers. If there's anything I have learned in my many years of public service, it is my own fallibility. But I do not believe that we can sustain peace without prosperity, and in the creation of wealth there are some clear lessons in the global economy for us to see. The most obvious is that the fewer economic obstacles we create, the better for everyone. Often the only thing that trade barriers do is protect people from the success they could achieve if given the opportunity and the incentive to compete.

But to compete today we must tear down the wall separating the hopeful and the hopeless, and that is the educational barrier. The only limits for our children are the ones we place on them. If we give our young people adequate schools, trained teachers free of ideological agendas, and computers and other basic necessities of 21st century academic life, they will learn, and they will grow, and become more than we could ever dream of. It is our duty to provide them with that opportunity. If they fail, it is because we failed them.

You represent the most populous, most diverse, and in some ways the most dynamic region of the world today. Asia was the fountain of ideas from the beginning of civilization and through much of history, and I think that will be your strength in the years to come. I'm a great believer that scientific advancement leads to cultural advancement. The space program benefited America and the world in countless ways that were never even imagined when those programs were developed. In medical technology, computer technology, communications technology, so many, many inventions that helped create the world of today were the direct result of America's investment in that space program. Even more importantly, it opened the minds of America's youth to the future, and we will continue to reap the rewards of their creativity and invention, as with my grandchildren, I expect that for future generations, and for your children and grandchildren.

So, my friends, I will close with this thought. As the great leaders gathered here and their successors grapple with the complex political, economic and security issues of Asian regional integration in the years to come, I hope that a continuing priority, for all of us, will be to constantly strive to find the ways and means to allow the young minds of Asia to transform the world with their ideas. They only need for the fountain to flow freely.

I thank you very much.

QUESTION (via interpreter): (from moderator) Your theme was related to the keyword of the second session in the afternoon, "the dream to the next generation, sharing of cultures," and the points we should take to mind in advancing regional integration. You talked of the younger generation, but also reminded us of international realism, that this is not just extremism in the Middle East but there is also a nuclear threat from the north. That's what you said. You did not name North Korea, but rogue regimes or dictator's ambitions. I think you used those words. I would first like to ask the question, what sort of strategic response should we take to North Korea? I would like to hear the Ambassador's view on this six-party consultation. This is an important process to reduce tension, but it takes a long time to arrive at a solution, and I think there are some people in the USA who believe that it's too time-consuming. What is the timeframe you have to reach a solution of this issue? Also, from a medium term perspective, do you think the present North Korean regime will continue? Also, the recent visit of Prime Minister Koizumi to North Korea, and negotiations between the two countries toward the normalization of diplomatic relationships. How do you view all of these issues?

AMBASSADOR BAKER: Well, I view that as a number of very good questions. (laughter) Let me start a step or so behind the question itself. It is a sad fact of civilization today that the world is almost awash in nuclear weapons. It is unfortunate, but it is true. There are known and acknowledged nuclear powers. There are others, such as North Korea, who do not fully acknowledge that they are nuclear powers. There are still others that no doubt are attempting to become nuclear powers. So in reality we have to deal with the fact that the world is awash in nuclear weapons. And what do we do about it? Well, first of all, we have to exercise a remarkable patience and understanding that the threat is real, but that it's unlikely to be met only by countervailing force. As President Bush has said repeatedly, as has Secretary Powell, it is America's intention to try to solve the North Korean nuclear threat through negotiations. I think the efforts of the six-party talks and otherwise is proof positive that we're trying to do that. I have reasonable hope that we will succeed. It is not certain that we will succeed.

But to succeed we must do a few things. We must make sure that we - that is civilization, free nations - are together in our determination to meet this challenge. Next, we will make sure that North Korea does not misunderstand and mistake our determination to address the issue. Third, we've got to make sure that we know that in a nuclear conflict no one really wins. It merely changes the players around the table. North Korea does not yet realize that nuclear weapons for them may be as much a curse as an asset. I believe that. But I do not believe that Kim Jong Il believes that. So it doesn't matter whether it's true or not. It is his view, apparently, the North Korean view, that the possession of nuclear weapons and nuclear material is essential to the preservation of the regime in North Korea, and indeed of the country itself.

It's up to the world community to convince him that the future of North Korea rests elsewhere, and not with the possession of nuclear weapons or the threat of the use of nuclear weapons. I said in the beginning of this answer that patience is required, and indeed I think the world community, and the United States in particular, has been very patient indeed in trying to address this issue. I would accord high marks to China for their intervention and their efforts to bring the parties together for conversations and talks - the six-party talks. But patience is not infinite under any circumstance, and North Korea must understand that patience is not always the final reward. Progress is the reward.

So it's time for North Korea, in my view, to respond. It's time for North Korea to make a good-faith payment on the solution of this problem by helping to go forward with the elimination of the nuclear threat, not only in Asia and the Asia-Pacific region, but elsewhere throughout the world. That's no small chore for an autocratic regime that has committed resources and determination to the creation of a nuclear state. But that, my friends, is finally the answer. North Korea must understand that nuclear weapons are not to their advantage. I believe that the United States and most of the world community will remain patient, but not patient indefinitely. It is not in the nature of things to always put off decisions. I do not foresee the use of force on the Korean peninsula, but I do foresee the continuing requirement that North Korea respond to the patience and the urging of the world community to disengage from their commitment to the presence of nuclear weapons.

That is perhaps more than I had planned to say on this issue, but there are only a few issues that are as important as the threat of nuclear conflict at the hands of North Korea. I believe I speak on good authority, from personal knowledge, when I say I do not believe that President Bush, nor the American people, have a hostile intent toward the North Koreans. I also believe that I speak for the American people and for the American administration, and the American President, when I say that we are committed to a peaceful resolution of this issue, and that it is time for North Korea to respond. Thank you.

QUESTION: (from moderator) We thank you very much Mr. Ambassador. There's one more question that I would like to ask. There is increasing economic interdependence, integration. China is a rising trading partner for many Asian countries. The significance is increasing. Given this emergence of China, what is ... How would the influence of the United States in this region change? Now people talk about opportunities for economic integration, and China would also be demonstrating its initiative for FTA. APEC's significance or clout seems to be declining amidst the increasing number of countries negotiating FTAs. Given this environment, what does the United States intend to do? Even now we are talking about a China-Japan FTA. So would the FTA become a serious agenda between the United States and Japan?

AMBASSADOR BAKER: I've already mentioned that I thought China deserved high marks for its intervention in the matter of trying to remove nuclear weapons from the Korean peninsula. I also believe that China is realistic in most things, and especially on its relationship with the rest of the world. It is clear to me that China will continue to grow and to prosper, that it will become a great force in the Asia-Pacific region, as indeed throughout the world. The question is whether or not its prosperity and its effort will contribute to stability and prosperity for the whole region and whole world, or whether it will turn into conflict between the nations of the region and the world. I think that your gathering here to talk about Asian relationships and the future of Asia is a great opportunity for you to identify how you can promote the former and diminish the prospect of the latter.

I think that one of the great challenges facing Japan and China, frankly, is to decide how in today's terms these two countries, these two enormous economic entities, learn to live side-by-side and to cooperate in a way that takes advantage of the virtues and advantages of both countries. I do not think it is a given that China and Japan should be economic competitors. I think proof of that can be found in the amount of Japanese investment in China. I think and I believe that will continue. And by the same token, the amount of trade between China and Japan - I believe China is now the No. 2 country in terms of exports from Japan. So one of the great challenges that faces this part of the world is how Japan and China will arrange themselves so they take advantage of what each has to offer, and how they try to diminish the chance that there will be a significant conflict - trade or otherwise - between China and Japan.

And speaking of China and Japan, I do not exclude the conflict that may arise or the opportunity that may be presented with other countries of the region. They are very considerable indeed, and they're great economies that are growing in Asia and the Asia-Pacific region. But what I've said about China and Japan I think is equally applicable to other countries in the region. The real question is how do we learn how to live together, how do we learn to integrate our resources, how do we learn how to take advantage of what each country has to offer, and to translate it best in the production of the mutual welfare of all the countries of the region.

I know you are deeply involved in this conference in trying to figure that out, whether it is in financial terms, economic terms, monetary terms, and I commend you for it. I have no direct answer for any of these questions, but I have high confidence that the combined wisdom of this group and other leaders, that you'll find answers to it. It is imperative that the countries of this region, who are growing at such a rapid rate and are already such dynamic forces in world commerce, learn how to translate that into the general good.

MODERATOR: I have a lot of questions I would like to ask to Ambassador Baker, but I was told that he has to leave by 4:20, so we will entertain one question, just one question.

QUESTION: Thank you very much for this chance. I'm from Meiji University. I have a question about China and Taiwan. China's government takes a "one-country policy", and there's a conflict with the Taiwanese government. So for the integration of this region we cannot ignore the China-Taiwan issue. The USA is, of course, involved in this issue. As integration in Asia proceeds, what will be the development of the relationship between China and Taiwan? I would like to hear His Excellency's views on this point.

AMBASSADOR BAKER: Thank you very much for the question. It's fundamentally important - that is, the relationship between Taiwan and China. I would say, by the way, that as I observe that there's increasing interaction between China and Japan, there is increasing economic activity between Taiwan and China. I think ultimately that will lead to a closer relationship between the two, as long as the policy of both areas is intelligently executed.

America's position is and has been for many years that we support one China. And we still do that. Which does not mean, of course, that we turn our backs on the aspirations of the people of Taiwan. But it does mean that our ambition in America is to see that this does not turn into conflict between China and Taiwan.

I will venture the estimate, perhaps not expert as I should be, but I still believe that the danger of armed conflict between Taiwan and mainland China is less now than it was five years ago. I think principally because there's more commerce between the two, because there's more interaction between the two, more economic relationship between the two. I think those things tend to subordinate the grosser conflicts that might exist between them. As long as no one "rocks the boat", as we like to say, as long as the status quo is not significantly changed, I think progress in this field will continue. But it is dangerous. It is perhaps as dangerous, if not more dangerous, than the threat from the Korean Peninsula. But the world is full of danger. As I remarked at the opening part of my remarks, we all live in a dangerous neighborhood. But that does not mean that we ignore the challenges or fail to grasp the opportunities. In the China-Taiwan situation, I think the opportunity is to see that there's a stable relationship - call it status quo if you wish - and that we give the increasing economic interaction between the two peoples - China and Taiwan - as our best hope to see that they ultimately resolve their political problems, and extend the opportunities of their economic success in the years to come.

So what we've got to do, I think, is to exercise patience and understand we're on the right track. I think things are better now than they were five years ago, and I believe will be better still in the years to come as we bring to bear our own concerns about how to address these issues.

My friends, I'm optimistic about the future in the Asia-Pacific region. I'm optimistic not only that your dynamic economies will continue to grow, that you will continue to prosper, but that that prosperity will be well distributed and that it will contribute to a higher level of economic and political stability. If I'm right, someone in some future time will stand at this platform and applaud you for your efforts, your dedication. If I'm not right, it will be extremely unfortunate. But I'm a patient man, America is a patient country, and we are hopeful that the result will be a favorable result.

Thank you once again for permitting me to be here today.

(end transcript)

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

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