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The 14th Informal APEC Economic Leaders' Meeting concluded on Nov. 19, 2006, and the participants had their photo taken in colorful Vietnamese traditional costumes called ao dai. Still in the shadow of the congressional election failure, President George W. Bush, realizing that a stable Asia is very important for the U.S. geostrategy, took advantage of the occasion to enhance the prestige of the United States. Just as American experts said, the Bush administration has probably become a lame duck now, but even a healthy duck needs to find a quiet pond.

"APEC's uniquely trans-Pacific character is an important political reason for U.S. to strengthen the group," Donald Emmerson, director of the Southeast Asia Forum of Shorenstein APARC at Stanford University, explained. "While APEC has lagged, East Asian regionalism has boomed. That has been good for East Asia. But U.S. and East Asian interests alike could be hurt if the Pacific Ocean ends up being split between rival Chinese and American spheres of influence."

However, the U.S. effort to save the Doha Round of trade talks with the Asia-Pacific Free Trade Agreement has yielded little. The Doha Round aimed to remove trade barriers in the world but was suspended due to some countries' agriculture protection policies. Washington had wanted to model the Doha Round upon the Asia-Pacific Free Trade Agreement. But U.S. officials never expected that there would be so many differences among the Asia-Pacific leaders, and that the economic development of Pacific Rim countries differ in thousands of ways. Despite the fact that the Hanoi Statement reiterated that supporting the Doha Round was APEC's priority, no material progress has been made.

"The U.S. is urging a last ditch effort to restart the talks through APEC," Professor Charles Morrison, president of the East-West Center located in Hawaii, says. "Whether or not APEC can do more than make a rhetorical statement of support is unsure. I feel that the APEC economies should agree to prepare new offers within a short period of time -- three weeks, for example -- to challenge the Europeans, Brazilians, Indians and others."

United States Steps Out to "Please" ASEAN

Seventeen years after its establishment, APEC now plays a decisive role in the international political arena. It has 40 percent of the world's population, 48 percent of the world trade volume and 56 percent of the world GDP. Since 1989, the economy in this region has grown by 26 percent, compared to only 8 percent economic growth rate in the rest of the world. With the double advantage of economic strength and rapid growth, China, being one of APEC's main economies and its "engine," has fully taken the limelight. On the other hand, the United States has been weighed down with countering terrorism in the Middle East.

"China has done very well in enhancing its relations with Southeast Asia in recent years," Sheldon Simon, professor of the Program in Southeast Asian Studies at Arizona State University, points out. "China has not only established a free trade forum for China and ASEAN countries, but also helped and influenced the area with its economy and culture. But I think that the United States has realized the importance of this area and come back to fasten its friendly relationship with the region."

The United States coming back to Southeast Asia and repairing its relations with the ASEAN countries is partly activated by China's increasing influence in the area.

"The naissance and growth of some democratic countries in Southeast Asia has received sympathetic response of democratic values from Washington," said Simon. "With the traditional friendly relations between the area and the United States, these countries value their friendship with the United States sometimes more than the trust in their neighboring countries. Geopolitics is also very important factor. The Asia-Pacific area is a very important to the world economy and the U.S. power structure. Therefore, the United States will not easily give it up."

Another motive for the United States to foster closer relations in the area is the common interest of countering terrorism. There are still some terrorist groups in Indonesia, the Philippines and southern Thailand.

"President Bush has a perfect attendance record at APEC meetings (Clinton missed two of them), which says that he does take APEC seriously and believes Asia is important to U.S. interests," Ralph Cossa, president of the Pacific Forum Center for Strategic and International Studies, said in an interview with the Washington Observer Weekly.

Besides attending the APEC summit meetings annually, Washington has recently activated several plans to "please" the ASEAN countries, including setting up a ministerial dialogue system with them and a platform for maintaining contact at the deputy finance minister level, even increased exchanges at the deputy defense secretary level.

The extent of U.S. efforts to foster cordial relations with Southeast Asian countries can also be seen in the increasingly friendly U.S.-Vietnamese economic and trade relations. The Bush administration is not only supporting Vietnam to enter the WTO, but has even proposed giving Vietnam Permanent Normal Trade Relations (PNTR) status.

"The reason that Bush failed to bring the gift of PNTR status to the APEC Hanoi summit is that the Congress dominated by the Republicans was lacking efficiency and could not pass the proposal in time," Simon explained. "But I think that it will be passed as soon as possible in the next month or by the Democrats who begin to dominate the Congress from next January."

Simon and Cossa both admit that Burma is an unharmonious element in U.S. relations with ASEAN. The Burmese dictatorial military government is really the most typical negative example of democracy for the United States. But ASEAN countries are reluctant to see Burma "punished" by the United States for ideological reasons. So Burma has become a sensitive issue in U.S.-ASEAN relations.

"This is a good way for him to interact with ASEAN since Myanmar is not there and this issue does not have to be addressed," said Cossa.

Simon, an expert of Southeast Asia affairs, points out ASEAN countries should be happy about the advantage they have with China and the United States vying for their attention. Being able to juggle the two big powers, Southeast Asia has gained many practical interests and financial aid for its economy, trade, security, culture and education.

"In a short period, there will not be any serious interest conflicts in the triangle balance of China, the United States and ASEAN," Simon told the Washington Observer Weekly. "ASEAN countries' only worry, if there is any, is an accidental spark in the U.S.-China military interaction in Southeast Asia such as the confrontation across the Taiwan Straits."

Turning the Asia-Pacific into a "Gigantic Enterprise?"

"The United States wants to demonstrate its continuing interest in the Asia-Pacific region. It is urging for a study of an Asia Pacific free trade area and support for an APEC business card, and both shifts of approach, illustrate its interest in and support for the APEC process," said Morrison.

An important subject for the APEC Hanoi summit is the "active discussion" of establishing an APEC free trade region. Former U.S. President Bill Clinton proposed for the first time in 1993 the setting up of such an economic zone. Before Bush's visit, Deputy U.S. Trade Representative Karan Bhatia suggested that establishing an APEC free trade zone would be a subject worth serious discussion. But his proposal did not receive a warm response from the host. The Vietnamese Deputy Foreign Minister Le Cong Phung stressed that establishing a free trade zone is a long-term objective and will not affect progress of negotiations with the WTO or other bilateral trade agreements.

"Regarding the study of the Asia Pacific free trade area, a number of economies were skeptical because it would be such a large undertaking," said Morrison. A similar plan was once axed in an APEC ministerial statement and the leaders attending this summit do not seem to have much interest in it.

Simon explained Bush's thinking on the subject: "Washington reiterated its intention to establish an Asia-Pacific free trade zone in order to save the precarious WTO Doha Round. Breaking the tariff barriers in the Asia-Pacific region will help continue to press relevant countries to concede in granting agricultural tax subsidies and hopefully open the door to the Doha Round."

The five-year Doha Round was suspended in July this year because six major WTO members -- the United States, the European Union, Japan, Australia, Brazil and India -- failed to reach agreement on market access for agricultural and non-agricultural products. Given the situation, the organizer said that the informal APEC economic leaders' meeting would provide a "good opportunity" to help restore the Doha Round talks. However, the Hanoi summit joint declaration just vaguely indicated that APEC will pursue further integration on issues such as energy in 2007. It would be extremely optimistic to expect that APEC will be able to remove all the tariff barriers in the region before 2010. Although the area produces 50 percent of the world's economic value, the styles and stages of economic development, the cultural backgrounds and political systems of the countries in the region vary a great deal, making it very difficult for these Asian countries to eliminate all these discrepancies and become fully integrated.

"Out of different worries, many Southeast Asian countries are actually not interested in the proposal though they do not speak out. Or we may say that it's not time yet now to change the Asia-Pacific region into a gigantic enterprise," Simon told Washington Observer Weekly.

Quite apart from who concedes what in return for what concession over the APEC free trade mechanism, the question arises: What geographical scope should a regional trade arrangement have? Who should be a party to the agreement and who should not?

There would appear to be three different ideas on the table: (a) the APEC-wide free trade area that the United States proposed at the recent summit in Hanoi; (b) the East Asia Summit-wide framework that Japan reportedly favors, which would include ASEAN + 6 (China, Japan, South Korea, India, New Zealand, Australia) but not the United States; and (c) the ASEAN Plus Three (China, Japan, South Korea) context that China seems to prefer, in which the exact positions of Tokyo and Beijing are not entirely clear.

"Without discussing the merits or demerits of each of these arrangements, suffice it to note that since ASEAN is common to all of them, the net effect of these alternative ideas is to strengthen the negotiating position of ASEAN," said Emmerson. "Then again, ASEAN will not necessarily be unified as to its preference for the three proposals. It will be interesting to look for the positions to be taken by individual ASEAN countries and for their collective effort to arrive at a single negotiating position, e.g., in the run-up to the ASEAN summit and the second the East Asia Summit in the Philippines next month."

Cossa has hope for 2007. "The U.S. in particular would like to see APEC moving faster, and will look ahead to next year, with Australia in the chair, for some real progress."

American Public Doesn't Share Washington's Interest in Southeast Asia

The prospect of economic and strategic cooperation brought about by APEC made for a lively week in Southeast Asia. But it stirred little response in the United States. According to the interviewed experts of Southeast affairs, the American public is still haunted by the situation in Iraq and the mid-term election. Even the U.S. media framed the event as Bush's first visit to a foreign country since the Republicans were defeated in the mid-term election.

"Because of the Congressional election, President Bush will want to show leadership rather than simply respond to the new Congress. Both Doha and the nuclear proliferation issue are examples," said Morrison.

Cossa holds a different view: "I don't think the elections will have any major impact on what Bush does or how he does it during this trip. Iraq is his legacy. What he does in Asia can make things better or worse at the margins but will likely be overshadowed by Iraq."

Simon echoed the sentiment. "On one hand, the Republican Party's defeat in the election cannot directly influence Bush's trip to Asia. On the other hand, Bush's economic achievements in the Southeast region will not add to his political record. In Asia, only the North Korea issue may sway the public opinion in the United States."

Yan Li, Washington Observer weekly - Issue No. 201, November 22, 2006

Reprinted by Permission February 12, 2007.

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China's economy has experienced remarkable growth since its economic reform and is expected to maintain high growth in the coming decades. This paper looks at the implications of China's rapid growth and emergence in the global economy for its own economy and for the rest of world, with specific focus on Australia. The conclusion is that China will emerge as the second largest importer and exporter in the world by 2020. Although imports of many land-intensive agricultural products are projected to rise, exports of most labor-intensive products (eg horticulture, fishery and processed foods) are also going to grow in the future, which implies that China needs to continue restructuring its agricultural sector as the economy moves towards globalisation. The results also show that the opportunities from China's economic growth for the rest of world are projected to far surpass the adverse effects. With the exception of Russia, it is predicted that Australia will be the single biggest winner from China's rise in world markets.

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The alliance between the Republic of Korea and the United States has been facing new pressures in recent months. Leaders in Washington and Seoul are visibly out of synch in their response to the escalatory actions of North Korea, beginning with the July 4 missile tests and leading to the October 9 nuclear explosion. South Korean leaders seem more concerned with the danger that Washington may instigate conflict than they are with North Korea's profoundly provocative acts. American officials increasingly see Seoul as irrelevant to any possible solution to the problem. Officials on both sides valiantly try to find areas of agreement and to paper over differences. If attempts to restart the six-party talks on North Korea falter again, it is likely this divide will resurface.

There is a tendency on both sides of the Pacific to overdraw a portrait of an alliance on the verge of collapse. Crises in the U.S.-ROK alliance are hardly new. As I have written elsewhere, there never was a "golden age" in our alliance that was free from tension. Korean discomfort with an alliance founded on dependency and American unease with Korean nationalism has been a constant since the early days of this relationship. Clashes over how to respond to North Korea have been a staple of the alliance since its earliest days.

Korean-American relations today are much deeper than at the inception of this alliance. Our interests are intertwined on many fronts, not least as major players in the global economic and trading system. We share fundamental values as democratic societies, built on the rule of law and the free flow of ideas. There is a large, and growing, contact between our two peoples, from trade and tourism to immigration.

The current situation is worrisome however because it threatens the security system that lies at the foundation of the alliance. Though our interests are now far broader, the U.S.-ROK alliance remains military in nature. The founding document of this alliance was the

Mutual Defense Treaty signed on October 1, 1953, following the conclusion of the armistice pact to halt the Korean War. That treaty has been significantly modified only once - 28 years ago in response to American plans to withdraw its ground forces from Korea - to create the Korea-U.S. Combined Forces Command (CFC).

The two militaries have a vital legacy of decades of combined command, training and war planning. American military forces in significant numbers have remained in place to help defend South Korea from potential aggression from the North. South Korean troops have deployed abroad numerous times in support of American foreign policy goals, including currently in Iraq and Afghanistan.

This foundation of security is not only essential to this alliance but is the very definition of the nature of alliances in general, as distinct from other forms of cooperation and partnership in international relations.

"Alliances are binding, durable security commitments between two or more nations," Dr. Elizabeth Sherwood-Randall, a Stanford scholar and former Clinton administration senior defense official, wrote recently. "The critical ingredients of a meaningful alliance are the shared recognition of common threats and a pledge to take action to counter them. To forge agreement, an alliance requires ongoing policy consultations that continually set expectations for allied behavior."

Alliances can survive a redefinition of the common threat that faces them but not the absence of a threat. Nor can alliances endure if there is not a clear sense of the mutual obligations the partners have to each other, from mutual defense to joint actions against a perceived danger. "At a minimum," Sherwood-Randall says, "allies are expected to take into consideration the perspectives and interests of their partners as they make foreign and defense policy choices."

By this definition, the U.S.-ROK alliance is in need of a profound re-examination.

The 'shared recognition' of a common threat from North Korea that was at the core of the alliance is badly tattered. As a consequence, there is no real agreement on what actions are needed to counter that threat.

There is a troubling lack of will on both sides to engage in policy consultations that involve an understanding of the interests and views of both sides, much less setting clear expectations for allied behavior. Major decisions such as the phasing out of the CFC have been made without adequate discussion.

Americans and Koreans need, in effect, to re-imagine our alliance. We should do so with the understanding that there is still substantial popular support for this alliance, despite conventional wisdom to the contrary. The problems of alliance support may lie more in policy-making elites in both countries than in the general public. That suggests that a concerted effort to reinvigorate the alliance will find public backing.

The results of the Chicago Council on Global Affairs 2006 multinational survey of public opinion show ongoing strong support for the American military presence in South Korea. Some 62 percent of Koreans believe U.S. troop levels are either about right or too few; some 52 percent of Americans share that view. A slightly larger percentage of Americans - 42 percent compared to 36 percent of Koreans - think there are too many U.S. troops. Along the same vein, 65 percent of Americans and 84 percent of Koreans favor the U.S. providing military forces, together with other countries, in a United Nations-sponsored effort to turn back a North Korean attack.

The crack in the alliance comes over the perception of threat from North Korea.

While some 79 percent of Koreans feel at least "a bit" threatened by the possibility of North Korea becoming a nuclear power, only 30 percent say they are "very" threatened. Fewer Koreans feel the peninsula will be a source of conflict than the number of Americans. More significantly, nuclear proliferation is viewed as a critical threat by 69 percent of Americans, compared to only half of Koreans (interestingly, Chinese are even less concerned about this danger).

The opinion poll was conducted before the nuclear test so it is difficult to judge the impact of that event. These survey results do clearly indicate however that while the security alliance still has support, there is an urgent need for deep discussion, at all levels, about the nature of the threat.

The crisis that faced the NATO alliance in the wake of the end of the Cold War has some instructive value for Koreans and Americans today. At the beginning of 1990, I was sent by my newspaper, the Christian Science Monitor, from Tokyo, where I had been covering Japan and Korea since the mid-1980s, to Moscow. The Berlin Wall had fallen a few months earlier and the prospect of the end of a half-century of Cold War in Europe was in the air. However, I dont believe anyone, certainly not myself, anticipated the astounding pace or scale of change that took place within just two years.

Within less than a year, in October of 1990, West and East Germany were reunited.

The once-mighty Soviet empire in Eastern Europe disintegrated almost overnight. By July of 1991, the Warsaw Pact had come to an end. Perhaps most astounding of all - not least to officials of the administration of George H.W. Bush - the Soviet Union fell abruptly apart in December 1991.

These tectonic events triggered a debate about the future of the NATO alliance that had provided security to Europe since it was founded in April of 1949. Soviet leader Mikhail Gorbachev somewhat famously - and perhaps apocryphally - anticipated this debate. "We are going to do something terrible to you," he is said to have told Ronald Reagan. "We are going to deprive you of an enemy."

In those early days, the very continued existence of NATO was under active discussion. The Soviet leadership called for the creation of entirely new "pan-European" security structures that would replace both NATO and the Warsaw Pact. Some in Europe favored the European Union as a new vehicle for both economic integration of the former

Soviet empire into Europe, along with creating new European security forces that would supplant NATO's integrated command.

A more cautionary view argued for retaining NATO without change as a hedge against the revival of Russia as a military threat or the failure of democratic and market transformation in the former Soviet Union. American policymakers opted instead for the ambitious aim of expanding NATO membership to absorb, step by step, the former Soviet empire, including the newly freed western republics of the Soviet Union.

Along with expansion, the United States pushed NATO to redefine the "enemy." Americans argued that new threats to stability and security from ethnic conflict - and international terrorism - compelled NATO to "go out of area or out of business." NATO did so first in the Balkans, in Bosnia and Kosovo, though reluctantly. The alliance has moved even farther beyond Europe to Afghanistan, where NATO commands the international security forces. This draws upon the invaluable investment made in joint military command and operations that are the foundation of the alliance.

Certainly NATO's transformation is far from complete. As was evident at the most recent NATO summit in Riga, considerable differences of opinion remain between many European states and the United States over the mission of NATO. Europeans tend to still see NATO as an essentially defensive alliance, protecting the "euro-Atlantic" region against outside aggression, with an unspoken role as a hedge against uncertainties in Russia. They are resistant to continued American pressure for expansion - including a new U.S. proposal to move toward global partnership with countries such as Japan, South Korea and Australia.

But the reinvention of NATO after the Cold War provides some evidence that even when the nature of the threat has changed, security alliances can preserve a sense of common purpose.

A re-imagined U.S.-ROK alliance could draw from the NATO experience by including the following elements:

HEDGE - The alliance remains crucial as a 'hedge' against North Korean aggression, even if the dangers of an attack are considered significantly reduced. If North Korea retains its nuclear capability, that hedge will need to expand to include a shared doctrine of containment and deterrence, including making clear that the U.S. will retaliate against use of nuclear weapons, no matter where it takes place. Strategically the alliance is also a 'hedge' against Chinese ambitions to dominate East Asia and a guarantor of the existing balance of power;

EXPANSION - The alliance can reassert its vitality as the basis, along with the

U.S.-Japan security alliance, of an expanded multilateral security structure for

Northeast Asia;

NEW MISSIONS - The alliance should take on new missions, most importantly to participate in military and non-military counter-proliferation operations;

OUT OF AREA - A re-imagined alliance might formalize an "out of area" role, elevating the deployments of peacekeeping and other forces to Iraq and Afghanistan into more systematic joint global operations between the two militaries. In this regard, the participation of South Korea in a program of global partnership with NATO, most importantly in the area of joint training, merits serious discussion.

There is another alternative: South Korea and the United States can chose to bring their alliance to a close. If we cannot agree on the common threats that face us, this alliance cannot endure. What we should not do is to allow the alliance to drift from inattention into a deeper crisis that would only benefit our adversaries.

(This article is based on a presentation by the author to the 1st ROK-U.S. West Coast

Strategic Forum held in Seoul on Dec. 11-12, 2006).

This article appeared on the website of the Maureen and Mike Mansfield Foundation.

Reprinted with permission from the Maureen and Mike Mansfield Foundation.

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The succession struggle for Japan's next prime minister has brought the two opposing schools of Japan's foreign policy into sharper focus. Foreign affairs analyst and Shorenstein APARC Associate Director for Research Daniel C. Sneider writes that the result of the current debate between the ruling party's Realist school and the Nationalist school could point to the future direction of Japan's foreign policy toward its Asian neighbors. The "Assertive Nationalists," represented by the views of candidate Shinzo Abe, value a solid relationship with the U.S., India, and Australia over camaraderie with China and South Korea. He also rejects Chinese pressure against any official visits to the Yasukuni shrine, where some Class A war criminals from World War II are interred. The "Conservative Realists" are represented by Yasuo Fukuda. He advocates integration of the region through economic partnerships that include China and South Korea along with Japan. He also pushes for negotiations with North Korea over their policies on nuclear weapons, while Abe is more hard-line. As China becomes increasingly powerful on the global stage and as North Korea becomes more defiant, Sneider urges that it is in every nation's interest to pay close attention to Japanese politics.

Japanese politics have long been driven by patronage and pork. Prime Minister Junichiro Koizumi has managed to add personality to the mix. Issues, when they mattered at all, were deeply domestic -- the last election, for example, focused on deregulation of the postal savings system.

So it is a bit of a shock to find Japan embroiled in a political struggle with foreign policy topping the agenda. The contest to succeed Koizumi has become a surrogate battleground for a debate over how to repair Japan's tattered relations with its Asian neighbors, China and South Korea.

Put simply, this war of ideas has two schools -- Conservative Realists and Assertive Nationalists.

The Realists fear that Japan has become dangerously isolated from Asia, its influence waning to the benefit of China. Constant tensions with China and South Korea put Japans economic recovery at risk, they worry. The Realists blame Koizumi for his provocative visits to the Yasukuni shrine to Japan's war dead and worry he tilts too far in his embrace of Bush and his policies in places such as Iraq and Iran.

The Nationalists see China as the principal national security threat to Japan. Their priority is to strengthen the alliance with the U.S., even at the cost of ties to Asia. They believe it is crucial to stand up to what is seen as Chinese bullying, symbolized by Beijing demanding that the Yasukuni visits stop as a price for high-level contacts.

This debate harkens back to the Meiji era and Japan's emergence as a great power. But the tortured history that ensued has left a clear legacy -- both camps accept the U.S. alliance as the foundation of Japanese security. The issue now is one of balance and relative independence in the formation of Japanese policy.

Each camp has a champion in the unofficial campaign for the September vote to replace Koizumi as president of the conservative Liberal Democratic Party -- a post that carries with it the premiership. Chief Cabinet Secretary Shinzo Abe, the frontrunner and Koizumi's preferred successor, represents the Nationalists. Yasuo Fukuda, who served as chief cabinet secretary for four years, until 2005, carries the Realist flag into battle.

Abe and Fukuda are cast from almost identical molds. Both are veteran politicians, scions of famous political families, even members of the same faction within the party. Yet they offer remarkably contrasting positions on Japan's diplomatic path in Asia and, less visibly, on how to manage relations with the U.S.

Abe, at age 51, is considered a representative of the younger generation. Like Koizumi, he has personal appeal, at ease on television and able to speak directly and emotively. Abe is the son of a former foreign minister and grandson of former Premier Nobusuke Kishi, a towering figure in post-war conservative politics.

Fukuda, who turns 70 in July, is an old-style Japanese politician, more comfortable working behind closed doors than in front of the TV cameras. "Fukuda is cool, rational, calculating, practical, nonideological and noncommunicative," comments William Breer, a former senior U.S. diplomat in Japan. Fukuda, too, is the son of a major conservative leader, former Premier Takeo Fukuda.

Abe is the front-runner, scoring well in polls and among party members. But Fukuda's star has risen in recent months, tied largely to the rise of tensions with China.

"Fukuda looks more mature, serious and experienced," says Breer. "People want better relations with China, though not at any cost. Fukuda can probably deliver that. Abe may not."

The starkest gap between the two men is over Yasukuni. Fukuda led an effort five years ago to create a secular memorial that would allow a prime minister to honor the war dead while avoiding the issue of the 14 Class A war criminals enshrined at Yasukuni and the unabashed lack of remorse over the war displayed at the shrine's museum.

Fukuda decried the defiant rhetoric in Japan surrounding the shrine, which has become a symbol of defying Chinese pressure. "Discussions in Japan have escalated too far," he said in a speech in late May. "Voices raised here reach China and South Korea, creating a vicious cycle."

Abe, like Koizumi, sees China's interference on Yasukuni as the problem.

"China's diplomacy is high-handed," Abe said recently. "If we permit China to engage in such diplomacy, China will also take a similar attitude on other issues."

But recently Abe pointedly avoided directly answering the question of whether he would continue the shrine visits. That has led some to speculate that Abe may want to find a way out of this cul-de-sac.

The Japanese public, according to recent polls, is evenly divided on the question of whether the next prime minister should visit Yasukuni. They overwhelmingly support the goal of improving relations with Japan's Asian neighbors, but a majority is also sympathetic to Abe's stance against Chinese pressure on Yasukuni.

Beyond Yasukuni, the two men offer contrasting visions of Japan's relationship to Asia and response to growing regional integration.

Fukuda points to the example of the "Fukuda Doctrine," a 1977 initiative by his father that responded to rising anti-Japanese sentiment by declaring that Japan would not become a military power and would try to build relations in the region as an equal partner.

In a series of recent speeches, Fukuda advocated integration of the region through an economic partnership agreement and called on Japan, China, and South Korea to cooperate toward this end. He visited South Korea in March along with former Prime Minister Yasuhiro Nakasone and met with the South Korean president.

Abe, in contrast, echoes the Bush administration in calling for a strategic dialogue with India, Australia, and other democracies in Asia, as well as the U.S., unifying on the basis of common values -- widely interpreted as a thinly disguised attempt to counter China's rise.

They differ on other issues. Abe is a hardliner on North Korea, while Fukuda has pushed for negotiations. Abe puts revision of Japan'a antiwar constitution at the top of his priority list. Fukuda warns about hasty steps that would alarm Japan's neighbors.

When it comes to managing the U.S. alliance, the choice is subtle. Both have strong ties to the Bush administration. Fukuda played a key role in forging the Japanese rapid response to the September 11 attacks, including the decision to send ships to support the war in Afghanistan. Both supported the dispatch of peacekeeping troops to Iraq.

"Fukuda, however, might be a little more honest in evaluating U.S. foreign policies," suggests Breer. "He might not be as pliable as Koizumi."

Abe remains the favorite to win, particularly among LDP members. But Fukuda's fortunes may have been aided by the emergence of Ichiro Ozawa as leader of the main opposition party. Ozawa, a remarkable political operator and former LDP leader, believes in issue-based politics. He visited China this week and met with Hu Jintao, which suits his clear Realist agenda.

Other events could shape the fight. Koizumi has signaled his desire to visit Yasukuni on August 15, the anniversary of Japan'a surrender. Some analysts suggest that could strengthen Fukuda's appeal. Alternately, the North Korean test missile launches could consolidate Abe's bid for power.

Whatever the outcome, this succession fight will likely mark a turning point for Japan. It could slow -- or perhaps accelerate -- the slippage toward Sino-Japanese tensions. And it will mark the re-emergence of a Japan that looks outward. It is time for the rest of the world to pay attention to Japanese politics.

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Global warming is one of the most difficult and important challenges facing the international community. To date, the most substantial effort to address this problem is the Kyoto Protocol. Although not adopted by the United States or Australia, this international agreement was adopted and ratified by every other large developed country and entered into force on February 16th, 2005. The Protocol is likely the largest ever international effort to combat a global environmental commons problem.

The Clean Development Mechanism ("CDM") is a market based trading mechanism

created by the Kyoto Protocol that functions by delivering a subsidy to the developing world in return for lower emissions of greenhouse gases. The subsidy offsets the cost of reducing GHG emissions, thereby encouraging less developed countries to emit less GHG than they otherwise would. As such, it represents the first attempt to address a global atmospheric commons problem using a global market. During the past 18 months, the CDM took on roughly the shape that it will likely have during the first commitment period of the Kyoto Protocol.

The goal of this paper will be to describe in some detail what that broad outline looks like and also what it can teach us about the design of future treaty architectures aimed at the control of GHG emissions and global warming.

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Is it really "a democratic transition" that is taking place in the aftermath of Suharto's overthrow? Is it something else? Something more? Can Pramoedya's analysis of movements in Indonesian history, in his novels and other writings, help us understand what is happening in and to the country now? And what is the answer to Pramoedya's question: How did the young generation succeed so impressively in ousting a military-backed dictator, yet fail to produce a national political leadership to replace him? In his analysis Max Lane will draw linkages between seemingly disparate events and trends: emerging "Pramism"; burgeoning demonstrations (aksi); the controversy over "rectifying history"; the new alliance of Sukarnoist parties; rapid decentralization; and the longer-term dynamics of Indonesian history.

Max Lane is affiliated with the Centre for Asia Pacific Social Transformation Studies at the University of Wollongong, Australia. He has been writing about Indonesian politics and history since 1972. His highly regarded translations include novels by Pramoedya Ananta Toer, plays by W. S. Rendra, and writings by other Indonesians. Recently he finished translating Arok Dedes and The Chinese In Indonesia by Pramoedya and The Social Sciences and Power in Indonesia by Daniel Dhakidae and Vedi Hadiz. Presently he is completing a book of his own, Aksi, the Fall Of Suharto and the Next Indonesia, while preparing a PhD at the University of Wollongong on class consciousness in modern Indonesia and lecturing at the University of Sydney.

Co-sponsored with the Center for Southeast Asian Studies at UC-Berkeley

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Max Lane Translator of Pramoedya's four-novel Buru Quartet and founding editor of Inside Indonesia Speaker
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Despite chatter about "the Chinese threat" during Chinese President Hu Jintao's recent visit to Washington, neither China nor the United States seeks to confront the issues plaguing their complex relationship. Pantech fellow and San Jose Mercury News foreign affairs columnist Daniel Sneider considers the muscular side of "China's peaceful rise."

The visit of China's President Hu Jintao to the United States this week is yet another opportunity for chatter about the "Chinese threat.'' In the lead-up to his arrival, we have heard rising voices from Congress and from the administration on everything from China's currency manipulation and piracy of intellectual property to its military buildup.

Do not be deceived. There is no real appetite in either Washington or Beijing for confrontation over any of these issues, much less a serious exploration of the challenge that China presents to American global leadership.

Neither government can afford an escalation of tensions. Economically, we are too intertwined. Strip away the packaging on the $200 billion trade deficit with China and you will find American companies running global assembly lines that begin in Ohio, pass through Malaysia, and end up in southern China.

Strategically, the United States is painfully dependent on China to try to cope with the greatest security challenge in northeast Asia: North Korea's nuclear program.

Beijing is wedded to its doctrine of "China's peaceful rise.'' First formulated three years ago, it aims to keep things calm with the United States and most of its neighbors, buying time to manage the tightrope act of continuing high growth while preserving domestic stability.

In any case, Washington is too bogged down in the Middle East to do more than bark now and then about China.

"At the strategic level, the United States is really focused like a laser on the Middle East,'' and the Chinese like it that way, said Asian security expert Kurt Campbell. "They appreciate the fact that with the U.S. attention focused elsewhere, it allows China to play a larger role in Asia as a whole,'' he told a gathering last week at the Center for Strategic and International Studies in Washington.

Typically, while Washington is focused on Hu's visit, the Chinese defense minister is in the midst of an unprecedented Asian tour that will take him to North and South Korea and to Singapore, Malaysia and Vietnam. China's prime minister has just finished a swing through Australia, New Zealand, Fiji and Cambodia.

In my own travels through Asia recently, from South Korea and Japan in the northeast down to Singapore, Vietnam and Hong Kong in Southeast Asia, I found a stunning growth in China's influence. The question of how to deal with China's rise is high on every agenda.

Everywhere people are looking over their shoulder, worried about China's burgeoning strength and presence. They are equally fearful that the United States is abandoning the field to China. But they also don't want to choose between these two powers.

That is even true in Japan, where the popular media and politicians are full of talk about the Chinese threat. But look a little closer and you will also find a growing counter-movement, particularly in elite policy circles, warning against becoming separated from the rest of Asia. The battle for succession to Prime Minister Junichiro Koizumi, who is stepping down in the fall, is now being shaped around this issue.

The China-Japan rivalry tends to reveal the more muscular side of China's "peaceful rise,'' one that Americans rarely glimpse. In Vietnam, senior foreign policy officials recounted what happened when the Japanese came courting to gain Vietnam's backing for a resolution to give them permanent membership in the U.N. Security Council, a key goal of Japan's foreign policy. Japan is Vietnam's largest aid donor and a major source of foreign investment.

China and Vietnam have a long and stormy history as neighbors, including wars that go back centuries and -- more recently -- a brief invasion in 1979 that ended in defeat for the Chinese. Relations these days are relatively good, however, fed by growing trade, heavily in China's favor.

Hu, in his role as leader of the Chinese Communist Party, sent a special envoy to talk to the leadership of the ruling Vietnamese Communist Party. Sometimes, a Vietnamese official told me, the Chinese can be very indirect. Not this time. The message was simple: "Don't do it!'' The ``or else'' was left unspoken.

The Vietnamese compromised, supporting Japan's membership but refusing to co-sponsor the resolution. China was not pleased, but apparently accepted it.

For the Vietnamese, a senior official explained, they must engage in a "lot of fine balancing.'' Vietnam "can't stop engaging China'' but wants to make sure China becomes a "predictable'' power.

In Washington, when the cloud of rhetoric clears, that formula pretty much sums up the reality of U.S.-China relations, too.

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Professor Andrew Mack is the Director of the Human Security Centre at the Liu Institute for Global Issues, University of British Columbia. Prior to establishing the Human Security Centre, he was a Visiting Professor at the Program on Humanitarian Policy at Harvard University (2001) and spent two and a half years as the Director of Strategic Planning in the Executive Office of Secretary-General Kofi Annan at the United Nations (1998-2001).

Professor Mack has held the Chair in International Relations at the Institute of Advanced Study at the Australian National University (1991-1998), was the Director of the ANU's Peace Research Centre (1985-91) and was the ANU's Senior Research Fellow in the Strategic and Defence Studies Centre (1984-85).

He has held research and teaching positions at Flinders University (Adelaide, Australia) the London School of Economics, the Copenhagen Peace Research Institute, the Richardson Institute for Peace and Conflict Research, University of California at Berkeley, Irvine and San Diego, the University of Hawaii, Fudan University in Shanghai and the International University of Japan.

His pre-academic career included six years in the Royal Air Force (engineer and pilot); two and a half years in Antarctica as meteorologist and Deputy Base Commander; a year as a diamond prospector in Sierra Leone and two years with the BBC's World Service producing the current affairs program "The World Today".

Reuben W. Hills Conference Room

Andrew Mack Director, Human Security Centre Speaker the Liu Institute for Global Issues, University of British Columbia
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The United States now realizes that India is an important cog in Asia's vast and vital machine. Senior Research Scholar Rafiq Dossani comments on President Bush's visit to Asia and its implications for powerbrokering in the region.

When India spectacularly burst into the headlines via its nuclear explosions in May 1998, then US president Bill Clinton had openly vented his fury before aides in the White House. "We are going to come down on those guys like a ton of bricks," he had remarked. Clinton's "volcanic fit" found its echo in the White House statement that expressed "distress" and "displeasure", culminating in Washington imposing a slew of sanctions against India.

These images from the past, culled out from Engaging India, then deputy secretary of state Strobe Talbott's book, appear incredible now. Especially as India readies itself to accord a warm reception to US President George W. Bush next week. The entente, the product of laboriously conducted diplomacy as much as geopolitical shifts that yoked the two together as 'natural allies', is now taking deep root. Sure, there will be protest rallies, strident voices will rail against Bush's hegemonic designs, Prime Minister Manmohan Singh will be cautioned against any tight clinch with Bush. Yet even these voices arise from the awareness that there's a growing relationship between the US and India, realized through knots of strategic partnership and cooperation in every conceivable field - from economy and nuclear technology to education, space and agriculture.

Bush's visit next week prompted Karl Inderfurth, who was assistant secretary of state for South Asia in the Clinton administration, to say, "All of this represents a refreshing degree of continuity in US foreign policy, based on a recognition by the last two American presidents that India is a country that will be a key player in the 21st century." Similarly, Robert Hathaway, of the Woodrow Wilson Center for International Scholars, is impressed that "two successive Indian governments representing different political views and parties... both came to the same conclusion that it is in India's interest to forge a better relationship with the US."

From imposing sanctions against India to laying out a blueprint for nuclear cooperation, both New Delhi and Washington have come a long way in an inordinately short time. Ironically, it was Clinton who provided the impetus for this transformation. Talbott says the former president, after coming to terms with the Pokhran II realities, found it "downright distasteful and counterproductive" to impose sanctions against a country he was trying to improve relations with. Consequently, Talbott, Inderfurth and senior director in the National Security Council Bruce Riedal were entrusted with the task of pulling out Indo-US relations from the abyss in which it had been languishing from the beginnings of the Cold War era.What followed was a dialog between foreign minister Jaswant Singh and Talbott, both seeking to convey to each other the security and strategic interests of their respective countries.

The dialog started yielding dividends immediately, even during the Kargil conflict. Clinton's confrontation of then Pakistani prime minister Nawaz Sharif at their July 4, 1999, meeting in Washington took trust patterns between the US and India to a new level. "Throughout this period, we kept the Indian government informed of what we were doing to try to ease the crisis," recalls Inderfurth, who played a key role in the dialog with Sharif. "All of this turned into an important confidence-builder in our new relationship with India."

"The July 4 meeting was the turning point," agrees Michael Krepon of the Henry L. Stimson Center in Washington. "It demonstrated that US engagement in the India-Pakistan imbroglio would not be detrimental to New Delhi's interests, and it shifted the Clinton administration's focus from proliferation to engagement." The trust was manifest in Clinton's spectacularly successful visit to India in March 2000. An enabling factor in the budding Indo-US romance, says former ambassador Richard Celeste, was the now-forgotten Y2K factor. "The crisis introduced India's enormously talented manpower to our business leaders. Today, the 24/7 bond between companies in the US and service providers in India is the stuff of books and myth-making."

The budding romance acquired a new meaning with the advent of Bush in the White House. His most perspicacious decision was to appoint confidant Robert D. Blackwill as ambassador to India. Blackwill appealed to the popular imagination; his unequivocal pronouncements against Pakistan for fomenting terrorism in India further bolstered the trust between New Delhi and Washington. More importantly, he sought to impart a new heft to the relationship by putting his formidable weight behind the "Next Steps in Strategic Partnership", which envisaged cooperation between the two countries in civil nuclear energy, hi-tech trade, space and dual technology. "If Clinton was the pioneer of the new relationship, Bush is its architect," says Teresita Schaffer of the Center for Strategic and International Studies in Washington.

The impulse for the new relationship is linked to the question: why has India started to matter to the US? Inderfurth cites three reasons: India will become the world's most populous nation, it may well have the world's fastest growing economy by 2020, and it is the world's largest democracy. Krepon adds one more to the list: intellectual capital. "The world expects India to do more heavy lifting," he says.

Ultimately, a relationship in international affairs hinges on convergence of interests. Ashley Tellis of the Carnegie Endowment for International Peace, who's now advising under secretary of state R. Nicholas Burns, listed a string of "common interests" at a congressional hearing last year. These included:

preventing Asia from being dominated by any single power that has the capacity to crowd out others and which may use aggressive assertion of national self-interest to threaten American presence, American alliances, and American ties with the states of the region; eliminating the threat posed by state sponsors of terrorism; protecting the global commons, especially the sea lanes of communications, through which flow not only goods and services critical to the global economy but also undesirable commerce such as drug trafficking, people smuggling and weapons of mass destruction technologies.

So, isn't China the "single power" that Tellis thinks could threaten American interests in Asia? He denied this assumption to Congress, but many feel China is indeed the factor behind Washington's attempts to assist India in becoming a major world power.As author Sunil Khilnani, of the Johns Hopkins School of Advanced International Studies, says, "Many current inhabitants of the Pentagon see an India allied to the US as a potential bulwark to a China whose ambitions are still difficult to read." Washington's long-term view is that since China will not support the US war on terror, it's a threat against which the US needs a counterweight. "Japan has proven it does not have the emotional and intellectual muscle to face China. Hence, India should play that role," explains Rafiq Dossani of Stanford University.

The Bush regime's keenness on India also springs from the disaster his other foreign policy initiatives have been. "Bush would like to leave at least one foreign policy achievement as his legacy. He'd like to claim that he 'delivered' India to the US, just as Nixon could earlier claim the same about China," says Khilnani.

These reasons apart, the relationship has gathered great momentum from business-to-business links over the last decade. Says Anatol Lieven of the New America Foundation in Washington, "India's abandoning of its social democratic economic model, derived from the Nehru period, in favor of globalization and free market economics has made it much more attractive to investment and ideologically sympathetic to the US." Indeed, the more the two countries deepen their economic interdependence, the more each will have a stake in the other. And this economic interdependence can deepen, says Stephen P. Cohen of the Brookings Institution, through the removal of obstacles to US investments. "Infrastructure, (inadequate) liberalization, and education are three real obstacles. These (improvement in the three areas) will make it easy to implement the strategic relationship."

That India matters to the US is no longer a promise of the future. At a recent conference, former state department official Walter Andersen pointed out two US decisions that underscored India's enhanced importance. First, the four-country tsunami relief efforts involving the navies of the US, Japan, Australia and India. Two, the Bush administration's efforts to exempt a nuclear-capable India from exports restrictions on nuclear and dual use technology.

The blossoming ties have enabled significant partnerships in the international arena too. India has supported the war on terror in Afghanistan; its navy protected high-value US cargoes through the Straits of Malacca; more recently, India voted with the US at the International Atomic Energy Agency to declare Iran in "non-compliance" with the nuclear Non-Proliferation Treaty.

All this doesn't mean the US and India will automatically collaborate on every problem dogging them. "Nobody expects a perfect alignment ever, but increasing alignment is something we hope will come naturally," says Schaffer. Partly this alignment can be brought about through changes in the conduct of foreign policy. For instance, the US, Hathaway admits, needs to recognize that India expects to be treated on a basis of equality. Similarly, Khilnani contends, a section of Indian political elites need to shed its instinctive anti-Americanism. "This does not mean renouncing a critical position, or an independent assessment of our own interests. It means engaging more deeply and confidently, and picking battles more selectively and prudently," he says.

Obviously, like any two countries, there will be disagreements. "Indeed, there have been over the past few years on a number of issues, including the war in Iraq," says Inderfurth. But, he adds optimistically, "the fact that this has not disrupted the upward trajectory of our relationship is a good sign and a promising one for future relations."

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