1	Takakazu Kuriyama "New Directions for Japanese Foreign Policy in the Changing World of the 1990s"; Gaiko Forum, May edition 1990. (Abridged version published in English in "Economic Eye", Japan Institute for Social and Economic Affairs, Autumn number 1990).
2	Keynote address at International Conference Hosted by the Nihon Keizai Shimbun, Inc. "The Future of Asia" by Minister for Foreign Affairs Masahiko Koumoura "Japan's Leadership for the Future of Asia". Ministry of Foreign Affairs, Tokyo.
3	See Attachment A for details.
4	A highly placed Japanese recently told me that Southeast Asia had come to regard Japanese aid as a "free good, like the air", but that could not continue.
5	Hatch and Yamamura, 1996: Asia in Japan's Embrace. Cambridge: Cambridge University Press.
6	Hatch and Yamamura: 28.
7	Edith Terry, October 1998:JPRI Working Paper no.50: Crisis? What Crisis? Described as "adapted from her book Wild Geese: Japan and the Asian Miracle, forthcoming from M.E.Sharpe in the spring of 1999".
8	Robert Wade, 1990: Governing the Market - Economic Theory and the Role of Government in East Asian Industrialization. Princeton University Press. p 5.
9	Linda Weiss and John M Hobson, 1995: States and Economic Development. Polity Press. p.244.
10	Western opinion seems generally to support the removal of Soeharto which opened the way for a democratic election in Indonesia in 1999 and the possibility of democratic political evolution. On the other side of the ledger is the damage and loss of life, and flight of capital and business people occasioned by the riots and other disturbances, plus the severe setback to the economy and the widespread increase in poverty. For a contemporary discussion see my article "Indonesia and the IMF: The Evolving Consequences of a Reforming Mission": Australian Journal of International Affairs, Volume 52, Number 3, November 1998.
11	Mr Miyazawa's speech was actually delivered by State Secretary of Finance, Hon. Sadakazu Tanigaki.
12	See JPRI Critique (Japan Policy Research Institute) Volume V, Number 5.
13	Linda Weiss, The Myth of the Powerless State, 1998: Cornell Studies in Political Economy: Cornell University Press.
14	Speech by Dr E Sakakibara at the Manila Framework Meeting in Melbourne, 26 March 1999: Reform of the International Financial System.
15	I am drawing here on remarks made by Mr Volcker at the annual conference of the Reserve Bank of Australia on the subject "Capital Flows and the International Financial System" which was held in Sydney 9-10 August, 1999. The conference papers are being published by the Reserve Bank of Australia and will contain the authoritative version of Mr Volcker's paper, "Problems and Challenges of International Capital Flows".
16	Vietnam added subsequently.
17	Ministry of Finance of Japan: "Resource Mobilization Plan for Asia - The Second Stage of the New Miyazawa Initiative" (www.mof.go.jp).
18	Japan was sensitive to regional criticism that Japanese banks sharply reduced their lending to Asia, by $33 billion in the six months to December 1998. Japan's share of Asian lending fell from 59% to 28% in 1998 (BIS data).
19	See Attachment C.

Attachment A: Japanese Assistance to Asia
Highlights
Total Assistance: US$ 85 billion plus US$43 billion announced (July 1997-November 1998) including US$19 billion to IMF packages Stage one: Miyazawa Initiative (October 1998) US$30 billion Stage one expanded to include: - US$3 billion for an Asian Currency Crisis Fund - US$5 billion special 3-year Yen loans for ASEAN - US$1.7 billion "Economic Reform Support Loan" for Vietnam Stage two: Miyazawa Initiative (May 1999) US$3.23 billion - to raise US$17 billion Stage One: US$ 19 billion committed US$ 5 billion, in short term US$ loans being used as financing facility by Korea US$ 14 billion, in medium to long-term yen loans
Original Miyazawa Initiative: Stage 1
	Available US$ billion	Committed US$ billion
Short-term (90 day) US$ loans	15
-financing facility for Korea		5
Medium - to long-term yen loans	15	14
-  Thailand		1.85
-  Indonesia		2.40
-  Malaysia		1.90
-  Philippines		2.50
-  Korea		3.35
-  Japanese Affiliates		2.65
Total	30	19
Source: Japanese Ministry of Finance
Miyazawa Initiative: Stage 2
Objective: to raise up to US$17 billion in Sovereign debt and private capital	Funding	Instruments
Guarantee sovereign bonds	US$3 billion	Japan's Export- Import Bank
(repackaged finds from Asian Currency Crisis Funds, Stage one expanded)		Asian Development bank
Subsidise interest payments	US$230 million	Japan's Export- Import Bank
(to invest in Asian private-sector enterprises)
**Announced Short-term facility	$US2.3 billion	Government - backed
stand-by for Malaysia
Source: Japanese Ministry of Finance

Attachment B

Nationality of companies in Asian Mergers & Acquisitions

1st half 1997 2nd half 1997 1st half 1998 2nd half 1998 Japan 648 223 239 1,110 U.S. 542 2,066 1,955 4,463 Germany 556 898 872 2,326 U.K. 616 8 252 876

Source: adapted from JETRO, 1999: White Paper on Foreign Direct Investment.
Japan External Trade Organization

"The overwhelming majority of M&As, 4,563, were initiated by U.S companies and 2,326 were initiated by German firms, the latter being more than double the 1,110 M&As by Japanese firms" (Jetro,1999:7)

US and Japanese FDI in ASEAN4
US$ million

1995 1996 1997 Japan 3,348 3,831 7,167 U.S. 2,511 2,866 1,358

Source: adapted from JETRO, 1999: White Paper on Foreign Direct Investment.
Japan External Trade Organization

Note here that while Japanese FDI in the ASEAN4 grew by 87.1% from 1996 to 1997, US direct investment fell by 52.6%. Comparing the figures on M&As and FDI, it appears that while the US has led the way in portfolio investment in East Asia since the crisis, Japan leads the US in terms of direct investment. This may suggest that US and European investment may be more speculative (looking to make a profit on the market upswing) while Japan is in for the long haul but a closer analysis would be needed to support such a conclusion.

ATTACHMENT C

US and Japanese exports to ASEAN
(US$ million)

1997 1998 US 4,006.0 3,253.8 Japan 5,722.5 3,774.4

Source: OECD,1999: Monthly Statistics of Foreign Trade (July). Paris: OECD

US and Japanese imports from ASEAN
(US$ million)

1997 1998 US 5,872.8 6,0396 Japan 4,001.6 3,164.6

Source: OECD,1999: Monthly Statistics of Foreign Trade (July). Paris: OECD

The United States appears to have responded to the crisis by importing more from ASEAN and exporting less, while Japan has cut down on both exports to and imports from ASEAN. This lends weight to the idea that Japan is not helping ASEAN by absorbing more imports, and that this task is falling to the US.