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Excellencies, Your Royal Highness,
Ladies and Gentlemen:

We have concluded a very productive meeting today. Once again we have proven that peace and security in our region is indivisible and can be advanced through active dialogue and consultation. As we conclude the Fifth ASEAN Regional Forum, I can say that all of us have contributed to the evolution of the ARF as a process for building trust and confidence, for creating a favorable climate for peace and understanding and for fostering the habit of consultation.

ARF and the Security Outlook in the Asia-Pacific

It has been proven since the first meeting in Bangkok in 1994 that the ARF works and that it has evolved as a mechanism for addressing regional peace and security issues while, at the same time, bridging gaps in the diverse interests of its participants.

Accomplishments of the Fifth ARF

The ARF process has surely come a long way since its inception. In the last intersessional year alone, we saw many concrete developments. These developments constitute small but secure steps. This is the way we want the ARF to evolve.

(a) Expansion of Membership
Exuding a spirit of commitment to see the entire Asia Pacific Region working towards peace and security, we welcomed the participation of Mongolia in the ARF and took cognizance of its resolve to contribute to the achievement of ARF's goals and abide by the principles of the ARF.

With the entry of Mongolia into the Forum, we take another step towards completing the geographical footprint of the ARF.

(b) Exchange of Views on Regional Security Issues
Cognizant of the goals of the ARF, we exchanged views on issues which have great bearing on the security environment of the Asia-Pacific. We held productive dialogue on the various issues confronting our region today and had a deeper and more intensive appreciation of these issues.

The Ministers discussed extensively the prevailing financial situation in the region. We exchanged views on the factors that caused the crisis and on how we should cooperate more closely in meeting the challenges posed by it.

We reaffirmed the interdependence among our economies and we were unanimous in our belief that the social impact of the crisis should be urgently and seriously addressed. We welcomed the assurances from Foreign Minister and soon to be Prime Minister Obuchi that Japan will revitalize its economy.

We were likewise encouraged by Chinese Foreign Minister Tang Jiaxuan's assurances that the value of the yuan will be maintained.

The Ministers welcomed the resumption of official dialogue between South and North Korea and the launching of the Four-Party Talks Peace Process on the Korean Peninsula. We emphasized the vital importance of the inter-Korean dialogue in promoting reconciliation and cooperation between the two Koreas.

We also reiterated our continued support for the KEDO project to help establish a durable peace and stability on the Korean Peninsula and promote global nuclear non- proliferation.

The Ministers welcomed the efforts that had been undertaken by the major powers to develop strategic and positive relationships among them, fully aware that the state of relations among the major powers would always have significant impact on the region.

The Meeting expressed satisfaction, in general, about the elections that were held in Cambodia yesterday, particularly insofar as the voter turn-out and the political atmosphere that prevailed are concerned.

We are encouraged by the initial reports that we have received, since for one year the ASEAN Troika on Cambodia, the FOC and the U.N. had held several consultations in Manila and Bangkok, on how we could contribute to creating conditions for free, fair and credible elections in Cambodia.

We await the assessment of the JIOG and of our own national observers, and we will maintain our close watch on developments, particularly the counting of the votes, the seating of the winners in the National Assembly and the eventual formation of a new government through a free and democratic process.

Paragraph 21 of the ARF Chairman's statement proved to be the most contentious issue in our deliberations. We can well understand why this was so.

On the basis of the views expressed by the ARF Foreign Ministers, I, as Chairman, saw the need to strike a balance between the two views that emerged.

One view felt that the nuclear detonations should be condemned because, aside from violating the nuclear non- proliferation regime, the nuclear tests breached the nuclear barrier and created a situation that is highly dangerous not only to South Asia but to the entire world as well.

Therefore, it was deemed necessary to send an emphatic message so that what happened in South Asia, which raised the specter of a nuclear arms race, will not be duplicated in other regions of the world.

The other view believed that the ARF should not be converted into a forum for denouncing ARF participants in no uncertain terms as this would affect the comfort level of the participants concerned.

Taking all these points into account, I deemed it appropriate that the contentious portion of paragraph 21 be worded as follows: "The Ministers, therefore, expressed grave concern and strongly deplored the recent nuclear tests in South Asia, which exacerbated tension in the region and raised the specter of a nuclear arms race.

(c) Defense Participation in ARF
We welcomed the continued participation of senior defense and Military officials in the ARF process. We recognized that their active involvement is important to the success of the Forum as their inputs could significantly enhance our discussion on regional peace and security.

(d) Activities for the next Inter-Sessional Year
We have noted with appreciation the reports of the Inter- Sessional Meeting on Disaster Relief and the Inter- Sessional Support Group on Confidence-Building Measures and recognized their contributions to the enhancement of the cooperative spirit in the region.

We emphasized once again that cooperation in various spheres is essential in realizing the ARF's goal of promoting regional confidence-building. Hence, we welcome the continuation of the Inter-Sessional Support Group, particularly on the expansion of its work and areas of concern.

(e) Future Directions of the ARF
As the ARF process develops at a steady pace, we acknowledged that decision-making by consensus is as valid then as it is today. We realized that the evolution of the ARF cannot proceed in haste but should be done through calculated and sure-footed steps.

We in ASEAN are committed to move the ARF process forward in the best way possible. That commitment has remained steadfast.

Remarkably, there was open and frank expression of views on issues and problems affecting member countries of ARF. We see through this exercise increasing active participation in our deliberations as well as a predisposition to uplift the comfort level of participants.

Conclusion

The Fifth ASEAN Regional Forum has renewed our sense of commitment to the goals of the Forum. But our task is far from over. I pass on the mantle of chairmanship to my good friend and colleague, Professor S. Jayakumar, the Minister for Foreign Affairs of Singapore, who I am sure, will guide the ARF during the next year with great vision and wisdom.

As I relinquish the chairmanship of the ARF, allow me to thank all of you for the support you have extended to me and for the constructive and cooperative attitude that you have manifested at our meeting. It has been a memorable and fruitful experience working with you. Thank you.