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Tuesday, August 29, 2017

THE MALACCA STRAITS AND JAPAN'S TIGHTER GRIP OF ASEAN



Japan has stepped forward to increase cooperation and assistance to ASEAN. Japanese Transport Minister Keiichi Ishii joining his Malaysian counterpart in declaring open the ASEAN Regional Training Centre for Vessel Traffic Services in Port Klang, Malaysia’s largest port on August 29, 2017, noted that advancements in the ASEAN region would result in greater traffic. The contribution of Japan which has been estimated at US$ 4 million has enabled the setting up of the facility, but more importantly and of much higher value is that it has given Japan a deeper stake in a region that once abhorred anything Japanese. 

Mistrust, prejudice and hatred stemming from the Second World War were to have a lasting impact on Japan’s relations with South East Asia, given the numerous war-time atrocities. Yet it was the Asian Development Bank, originally a concept of Thai banker, Paul Sithi-Amnuai that saw Japan gaining favour in the region. Calling for a regional bank, Sithi-Amnuai identified the need for an institution geared towards developing intra-regional trade. He did so when addressing a trade conference organized by the Economic Commission for Asia and the Far East (ECAFE) in 1963.

At first the United States vehemently opposed the creation of another regional bank, in the wake of the establishment of the Inter-American Development Bank in 1959, and given that the World Bank and International Monetary Fund possessed the ability to assist countries in the developing world, especially in South East Asia. A new venture was seen to curb American influence, and hence wasn’t a welcome suggestion.

With the escalation of the Vietnam War, President Lyndon Johnson was persuaded to support the establishment of the ADB in 1964. Senator J. William Fulbright, then Chairman of the Senate Foreign Relations Committee, argued that the War would not only bleed American blood and treasure, but would also be detrimental for America's image in Asia. Subsequently realizing the potential of such a bank, Johnson tasked former World Bank President Eugene Black with assisting in the establishment of the new institution.

Secretary of State Dean Rusk was keen on seeing Japan play an important role in the ADB, arguing that the biggest danger to American foreign policy in Asia was Japan's inability to integrate into the Asian society of nations following the animosities of the World War. Whilst countries expressed distinct opposition to Japan’s participation, persuasive American diplomacy resulted in Japan being accepted by the majority of participating nations, and a proposal was made that Tokyo would be the site of the bank's headquarters.

Meeting stiff opposition from Philippine President Ferdinand Marcos, who threatened to travel to every Asian capital and scuttle the idea, a decision was taken to locate the headquarters in Manila, thus silencing Marcos, and as a ‘concession’ to the Japanese, the inaugural presidency, which would be on a rotating basis, would first go to Japan. Interestingly the position has been retained by Japan ever since, with the concept of rotation long abandoned. Whilst taking up the presidency, Japan also arrogated itself control over critical "reserve positions" such as the directorship of the Budget, Personnel, and Management Systems Department.

By the end of 1972, Japan had contributed US$173.7 million, which was 22.6% of the total ordinary capital resources and US $122.6 million, 59.6% of the total special funds, while the United States contributed only US $1.25 million to the special fund. The ADB then focused much of its assistance on food production and rural development, with early loans going largely to Indonesia, Thailand, Malaysia, Republic of Korea and the Philippines, accounting for 78.48% of the total ADB loans between 1967 and 1972.

The mistrust, prejudice and hatred which had once bedeviled relations seemed to have rescinded as American strategy and Japanese implementation saw the tide change in relations between Japan and most of South East Asia. The usage of a bank and finances altered the perception of a country, and more importantly improved relations to such an extent that Japan cooperates extensively with countries, specifically in ASEAN.

The latest move to establish the ASEAN Regional Training Centre for Vessel Traffic Services comes in the wake of the collision of the USS John S. McCain on August 21, 2017 off the coast of Johar, Malaysia, which was the fourth accident that involved American vessels. The US vessel, from its home port of Yokosuka in Japan, had been on its way to Singapore. Collisions, ship wrecks in the waters, piracy and haze are just some of the challenges navigators of the Strait have to overcome.  

In November 2004, ASEAN members along with Bangladesh, China, India, Japan, South Korea and Sri Lanka signed the Regional Cooperation Agreement on Combating Piracy and Armed Robbery against Ships in Asia (ReCAPP). It was Japanese Prime Minister Junichiro Koizumi who first articulated the need for the agreement at the ASEAN plus Three Summit in Brunei in 2001. He wanted the maintenance of a database, the conducting of analysis and carrying out the task of being an information clearing house.  

Efforts to boost cooperation and ensure greater involvement, though continuous, are being increased amidst attempts by ASEAN to ensure a balance of power in the region. China, following a similar model as Japan and the ADB, through their own mechanism, the Asian Infrastructure Investment Bank which is augmenting the work of the One Belt One Road initiative of President Xi, is seeing results, as relations improve with ASEAN, in comparison to what they were a decade ago, or even a couple of years ago when looking at the Philippines.

China’s growing assertiveness in its relations cause concern for allies such America and Japan, who want to thwart, or at the very least, mitigate the impact China is having and the influence China is gaining in the region. Whilst the issues of the South China Sea seem to have abated, if only for the present, thanks in part to Philippine President Duterte and his altered policy towards China, and with attention focused on North Korea, China has been able to enhance economic influence in the intermission.  

While both Japan and China are keen on infrastructure development, and the Japanese having used the Overseas Development Assistance (ODA) programme since 1954 after signing the Colombo Plan, are confronted today with a stronger, determined and confident China. For the infrastructure development to occur, they also realize they need to maintain or at the very least ensure secure sea lanes, with the Malacca Straits being the most contentious at present. Running between Indonesia, Malaysia and Singapore, the Straits which are claimed to be the second busiest waterway in the world, rose in significance as it serves as a gateway in trade to and from Asia. Yet it has remained a source of friction as nearly half of the world’s total annual seaborne trade tonnage is said to pass through the Straits. Expansion of trade and the implementation of the OBOR initiative have seen the Straits gain in significance, and also become more vulnerable to regional and international rivalry.  

As Malaysia becomes home to the ASEAN Regional Training Centre for Vessel Traffic Services on the eve of its 60th anniversary of independence, the role of the Centre, the entrenched involvement of Japan, the heightened influence of China, as well as the impact these two countries would have on ASEAN, are at spilling point. 

For Japan, the latest move indicates a step towards enhancement of ties with ASEAN. Yet ASEAN, whilst celebrating half a century under the banner of ‘Partnering for Change, Engaging the World,’ has balanced regional rivalry, and more importantly, gained in the process.

-          AWARELOGUE EDITORIAL