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Time Not Ripe for AEC

Although some Asian countries have already moved towards setting up an "Asian Economic Community," there is still a long way to go due to the diversified culture and historic backgrounds among Asian countries, Chinese Finance Minister Xiang Huaicheng told local government officials and entrepreneurs Wednesday.

China, like other countries in the region, is willing to see an integration among Asian economies, which, in our opinion, should not only include Southeast Asian countries plus China, Japan and South Korea, but the South Asian countries as well," he said during a speech delivered at the Bangkok Bank, Thailand's top bank.

However, he said that to fulfill such an ideal will need a mammoth work of preparation, since Asian countries largely differentiate from each other on political, historic, religionary, ethnic and economic backdrops.

"In some cases, problems and conflicts between some Asian countries have been deeply rooted as a historic heritage, and it is not easy to solve, " the minister said.

As a first step to establish a community like the European Union, he urged Asian countries to reach a common view on how the future regional economic organization will be.

"Secondly, we must make initial steps, which are impossible to be completed within a short period," he said.

The European Union countries, which are easier to forge an economic alliance due to similar culture and history, have not yet made Euro their common currency to be circulated across their region, he noted.

However, he said Asian countries have made potential progresses toward the ultimate goal.

Hailing the Chiangmai Initiative as "epoch-making," Xiang said the signing of the document by 10 Southeast Asian countries plus China, Japan and South Korea, marked a major stride toward financial cooperation among Asian countries.

The document, signed last May in Thai northern resort of Chiangmai, aims at expanding the existing monetary swap arrangements among members of Association of Southeast Asian Nations (ASEAN) and establishing currency swap and bond repurchase mechanism among ASEAN and China, Japan, South Korea on bilateral basis.

"It has reflected the world-wide trend of economic regionalization, demonstrating the confidence and shared desire of Asian nations to strengthen cooperation for common prosperity," he said.

Xiang arrived in Bangkok late Tuesday and will leave for a visit to Japan on Friday.

(Xinhua 01/11/01)

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