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CONFERENCE STATEMENT

The Pacific Basin Economic Council (PBEC) held its 32nd International General Meeting in Hong Kong, China on May 14-19, 1999, under the theme "The Challenges of the Next Century for the Pacific Basin". More than six hundred delegates from 32 economies gathered in the Hong Kong Convention and Exhibition Centre to participate in a series of plenary sessions and roundtable discussions with the region's government and business leaders.

Two important themes emerged in a number of sessions. First, nascent economic recovery in the region must not dampen the commitment to reform. Despite some improvements in the region's economies, a commitment to continuing the needed reforms is necessary. Second, enhanced transparency is necessary in order to maintain, and expand, the gathering recovery.

Hong Kong Chief Executive Tung Chee Hwa gave the opening keynote address at the meeting, emphasizing that despite the difficulties experienced since the onset of the Asian Financial Crisis, Hong Kong, and indeed all of Asia, had the potential to rebound strongly. He noted that the region remains a major exporting region, with its economies holding 37% of the world's non-gold reserves. Asia, he concluded, had to reform its banking and financial systems, find a way to manage short-term capital flows, while ensuring that free markets are maintained and encouraged, and ensure that the benefits of growth are more broadly shared.

PBEC Chairman Helmut Sohmen lauds speakers and delegates for a successful meeting at the closing session.

In addition to Tung Chee Hwa's participation, PBEC was also privileged to welcome many senior leaders of business and government, including IMF Managing Director Michel Camdessus, Philippine President Joseph Estrada, State Councillor Madame Wu Yi of the People's Republic of China, Korean Finance Minister Kyu-Sung Lee, Australian Treasurer Peter Costello, Ing Juan Jose Pons Arizaga, President of the National Congress of Ecuador, Transparency International Chairman Peter Eigen, Lachlan Murdoch of News Ltd., Australia, Professor Jagdish Bhagwati of Columbia University, Ernest Micek of Cargill Incorporated of the USA, and John R.H. Bond of HSBC Holdings plc, UK.

A highlight of the meeting was the presentation of the first PBEC Environmental Award to Green Island Cement (Holdings) Ltd of Hong Kong. The PBEC Environmental Award honors PBEC member companies that have made particularly outstanding contributions to global environmental protection. Presentation of the award reflects PBEC's commitment to promoting environmentally responsible business practices. By honoring these companies, PBEC hopes that their achievements will become broadly recognized by the international community, and will serve as a model for others to follow.

Green Island Cement has been a leader in developing a comprehensive approach to environmental policy. The company established programs to develop and utilize alternative fuel sources, reduce waste and emissions, and substitute waste for raw materials.

PBEC Secretary General Robert Lees reads the official conference statement, summarizing the many highlights of the IGM.

During the IGM, PBEC leaders and guests discussed a variety of important issues. These included the aftermath of the financial crisis and the implications for future development; globalization; political stability and regional security; managed economies versus free markets; economic growth and the environment; the fight against protectionism; technology and labor; and emerging markets in the global economy.

The meeting also included a special panel on China, and addressed a number of other critical issues facing the region, including the pace of telecommunications development; the use of regenerable resources; information technology in Asia; the world food supply; building a better banking system; and the power of the media in the global economy;

At the meeting, PBEC's Steering Committee and Board of Directors adopted several resolutions and policy statements.

PBEC adopted a statement voicing its strong support for the expansion of the WTO to include China, Chinese Taipei and Russia, all member economies of PBEC. PBEC noted in particular the important window of opportunity for China's accession this year, that membership in the WTO will mark an important step in China's full integration into the world economy, and help contribute to stability and prosperity in the region and globally. PBEC also voiced its support for the new round of WTO negotiations due to begin in the year 2000. In light of recent trends and developments in the world economy, PBEC considers these upcoming negotiations to be of particular importance, and proposes the goal for completion of these negotiations be three years.

PBEC called upon the WTO to finalize an agreement on transparency in government procurement by the time of the WTO Ministerial in November. PBEC reiterated its belief that a multilateral agreement on transparency in government procurement will contribute directly to economic growth and increased stability.

PBEC also urged the WTO to conclude an agreement on Accelerated Tariff Liberalization [ATL] by the end of 1999. PBEC is convinced that the momentum towards increased trade liberalization in the Asia Pacific and beyond must be maintained. Global trade and investment liberalization will help to restore stability and growth to the world economy, and will benefit workers, consumers and investors alike.

PBEC's Working Committee on Food issued an Executive Summary and Recommendations in conjunction with its Value Chain for Poultry study. PBEC also issued recommendations on ways to improve the efficiencies of the poultry value chain and to build a sustainable competitive poultry industry. The recommendations contained in the report are based on best practices and are identified from reviews of the poultry sector by industry participants in several economies. The long-term objective is to expand efficient poultry production in the region, eliminate tariff and non-tariff barriers, while maintaining scientifically justified sanitary and phytosanitary standards essential to consumer's health.

Although the MAI negotiations have ceased, PBEC also reaffirmed its support for the principles embodied in the Multilateral Agreement on Investment (MAI). PBEC will seek to initiate collaborative efforts, particularly with the WTO, to move forward investment liberalization provisions similar to those contained in the MAI. PBEC will also engage organizations such as APEC, PECC, and ABAC in these efforts.

In addition to the above statements and resolutions, PBEC's working committees also reported continued development of their individual work programs. Two working committees have completed their mandates and terminated their operations. It was agreed that working committees would review their activities and sharpen their focus, in order to allow PBEC to speak out with an even more concentrated voice.

Dr. Helmut Sohmen, Chairman of World-Wide Shipping Agency, Ltd. (and former chairman of PBEC Hong Kong, China) was re-elected Chairman of PBEC. Mr. Kosaku Inaba, Chairman & CEO of Ishikawajima-Harima Heavy Industries Co., Ltd. and Mr. S.R. Cho, Chairman of Hyosung Group, were elected Co-Vice Chairmen.

PBEC expressed its sincere appreciation to the Hong Kong Member Committee for hosting a highly successful meeting. PBEC invited its members to meet again at the 33rd International General Meeting in Honolulu, Hawaii, USA from March 17-22nd, 2000. PBEC will meet in Japan in 2001 and it was also agreed that the 2002, 2003, 2004 International General Meeting will be held in Hawaii.