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COM (85) 341 
 
 
 
Vol. 1985/0136 
  
 
Disclaimer  
Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the opening to the public of the historical archives of the European Economic 
Community and the European Atomic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation. 
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februar 1983 über die Freigabe der historischen Archive der Europäischen 
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983, 
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003 
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit 
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5 
der genannten Verordnung freigegeben. 
COMMISSION OF THE EUROPEAN COMMUNITIES
C0M C85) 341 final  
Brussels, 9 July 1985
C O M (85) 341 final

Explanatory M em orandum
1  October 1985 marks the end of the firs t five years of the cooperation  
agreement between the Community and A SEA N , which is renewed automatically every  
two years. Although evaluation of the results is not yet complete, it  
is already clear that there has been a remarkable b o o m  in trade between  
the two regions: Community exports rose by 73%  between 1980 and 1984  
while imports from A S E A N  rose by 41% . It should be added that the  
growth in Community imports w as slowed dow n som ewhat in recent years by  
the drop in prices for m ost raw materials of which the A S E A N  countries  
remain important producers and exporters.
However, this generally favourable picture from the point of view of  
trade m asks a rather worrying phenom enon which w ill have consequences  
for the future, namely the relatively L o w  level of European investment  
in the A S E A N  countries. European industry's lack of commitment,  
despite a  favourable climate for investments, contrasts with the  
efforts m ade by Japanese and American competitors to forge links with  
undertakings in the region. Past economic experience show s that a ll  
forms of industrial cooperation are an effective m eans of maintaining  
or boosting exports. The reluctance of business in the Community to  
invest in the A S E A N  region is therefore jeopardizing in the medium-  
term the volume of Community exports on markets which, experts are  
unanimous in agreeing, m ust be considered as the m ost promising  
between n o w  and the end of the century.
There is no miraculous solution for reversing this trend. Efforts to  
promote investments,notably by m eans of investment seminars, m ust  
continue and be multiplied with special efforts to improve both  
general and economic information on these countries and promote  
business contacts. In addition, a  project should be devised which  
goes beyond these routine activities and serves a  double objective:  
awakening the interest of European industries and services by  
stimulating a  desire to play a  fu ll part in the A S E A N  countries'  
economic b o o m  and showing business and p olitical circles in the  
A S E A N  countries what technological potential Europe has in certain  
sectors and h o w  this can play a  key role in the region's future social and  
economic development. O n e w ay of achieving this is to organize a  major  
European exhibition or series of exhibitions in the A S E A N  regions on  
the theme "The city in the year 2000".
To obtain the active support of a ll the interested parties and sh o w
the exceptional nature of the action from the very outset, the
project should figure large in discussions of ministers responsible for economic
affairs from the Community and the A S E A N  countries w hen they m eet in Bangkok
on 17 and 18 October.

C O M M U N IT Y  EXHIBITION IN T H E  A S E A N  R E G IO N
1. Introduction
It  is generally agreed that South East Asia, and the A S E A N  group of countries  
in particular (Indonesia, Malaysia, the Philippines, Singapore, Thailand  
and Brunei), is the fastest growing and m ost promising region in the world  
from the point of view of economic development. Average growth since 1970  
has been 7.8%. B y  the end of the century the A S E A N  group w ill have a  
total population of so m e 380 m illion.
It  is recognized that these countries are no longer content to import  
their goods from abroad. They are trying to substitute imports with domestic  
products. Therefore, to benefit from the region's prosperity, there is  
a  pressing need to be present on the market to invest and m ake cooperation  
agreements with local firms.
This has been understood by the Japanese and, it seems, by the Americans;  
but an analysis of economic and trade relations between the Com m unity  
and A S E A N  reveals that the European econom y has not taken fu ll advantage  
of the region's tremendous economic boom . While the Community's main  
competitors, Japan and the United States, have taken a  big share of the  
A S E A N  group's markets (24%  and 1 8 %  respectively), with the trend towards  
an increase, the Community is faced with a  slow but steady erosion of  
its relatively weak competitive position ( 11%).
Europe, which had historic links with so m e of the A S E A N  countries and a  
strong economic presence, is falling behind these two countries, which  
are the leading foreign investors in a ll the A S E A N  countries with the  
exception of Malaysia and Singapore, where the M em ber States of the  
Community s t ill hold firs t place.
Although there are a  number of reasons for this development, so m e of  
them clearly identifiable (for example, distance), others som ewhat  
vaguer (Europe's lack of interest in ASEAN), the upshot is a  loss of  
Europe's credibility as a  development partner for the A S E A N  countries.
The spectacular successes marked up by certain sectors of Japanese  
industry and the United States’ economic revival

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have m ade Furope apoear weaker and Less able to deal with the problems  
of the figure. Too L ;'e  is know n about European industry's achievements  
over a  wide range ef •ecler'· and its constant efforts to rise to the  
challenge of the technologies of tomorrow, or at least they are not given  
their due recognition by A S E A N  politicians and businessmen.
Europe's relative decline in these countries from the point of view of  
exports, investments and local esteem is a  serious problem in the long  
term. If  w e  cannot maintain a significant and profitable economic presence  
in a region of the world which is enjoying a remarkable boom, shall w e  
be able to maintain our prominent position in international trade and on  
the international economic scene?
T o  remedy this mistaken image and herald an economic comeback, imagination  
has to be used to show  Europe's economic potential, stimulate the interest  
of a ll sections of the business community in the potential offered by  
the A S E A N  countries and also the interest of the A S E A N  countries in  
Europe's achievements and potential.
The M em ber States are worried by thi's situation and are trying to counter  
the trend, as show n by the number of high-level visits to the region  
recently. W hat is needed in addition is to achieve a European dimension  
highlighting the potential of European industry and services to help us  
hold our o w n  against American and Japanese competition. The A S E A N  
countries would welcome this so as to avoid committing themselves too  
far on the side of two countries which occasionally pose delicate  
problems and provoke a  number of susceptibilities.
To this end, the Community should m ake its contribution by organising a  
Eurooean exhibition or a  series of exhibitions in the A S E A N  region combined  
with High Level EEC/ASEAN meetings between business circles and those  
responsible for p o litic a l, economic and scientific matters there by encouraging  
a  sustained European m om entum  of benefit to our trading position.
2 .Them e of the Community action
The main purpose of such an exhibition or exhibitions would be to give a  representative  
idea of what Community industry can offer A S E A N  in specific field s.
The tremendous diversity of European production m eans that it  is a vain  
task to try and give a  complete picture of European achievements, even  
taking only the m ost advanced setors. Furthermore, the exhibition m ust  
cover sectors of the European economy which are undoubtedly competitive  
in world terms. The organization of a  vast trade exhibition would  
require a  great deal of preparation and exceed the limits of available  
resources. Since one of the main objectives is to help create a  n ew  
image of the Community as a  future economic partner, w e  must choose a  
theme which serves this purpose and limits participation. The theme  
proposed is:
"The city in the year 2000"

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The main sectors covered would be urban transport, telecommunications, 
housing, the urban environment and services in the city.
These sectors or so m e aspects of them w ill certainly already be covered in  
specialist trade fairs or exhibitions organised regularly in the A S E A N  region.  
However, the attraction for Community traders is its completely new  dimensions.
The exhibition or exhibitions would be specifically European and stands, instead  
of being grouped by country, w ill be grouped be sector (telecommunications,  
urban transport, e tc .). · Backed by the M em ber States and the six A S E A N  countries,  
a  wide public would be addressed on a  m ore long-term theme.
Keeping in mind our objective, w e  should highlight the technological capacity  
of European industry. This w ill underline and strengthen the modern, dynamic  
image of firms already well-represented on the A S E A N  countries' markets and  
show newcomers in a  favourable attractive light. The aim is not merely the^  
immediate conclusion 6f new  contracts but the creation of a good basis for industrial  
cooperation which, through joint ventures, w ill help promote European technology  
and ultimately develop trade.
To increase the impact of the products on display (especially prototypes of  
future projects), seminars, meetings and workshops on technical and scientific  
subjects linked to specific sectors should be held at the sam e time. In  
this way, the exhibition or exhibitions would serve as a  forum for contacts  
between businessmen and government representatives responsible for public  
investments.
Cultural activities (a week of European cinema, concerts by European orchestras,  
coordination of events put on by the individual M em ber States, etc.) could be  
arranged in parallel and contribute to the overall impact.
3. Site and Date
A n  important consideration is whether to hold a  single major exhibition in  
one A S E A N  country or whether to hold a  series of exhibitions on different  
aspects of the central theme "City 2000" in each or several of the A S E A N  _  
countries. A n  integral part of the proposal is the organisation of associated  
encounters between European economic operators and potential purchasers in  
A S E A N  whether they be businessmen or central and local government representatives,  
If  the latter approach were chosen instead of a  single major exhibition _ a  senes  
of smaller exhibitions could be organised over a  12-18 m onth period in  
A S E A N  capitals focussed on one of the sectors which together comprise the overall
theme.
W e  would hope to obtain support for whichever of these options from the
A S E A N  governments and to this end agreement on 1 ' P T°^°f®L 0cïober 1985  
of EEC/ASEAN ministers responsible for economic affairs  
would get the operation off to a  good start.

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4. R em arks on organisation and financing
It  is not possible to go into the practical details of the organisation and  
its cost at this stage.
A  consultant has been contracted to carry out a study and the results w ill  
be communicated on its completion (this July).
The purpose of the study is to assess the precise nature of the action,,  
the cost of the operation for the Community, working on the presumption that  
firms w ill naturally have to contribute to the operation and that the  
Community would confine its e lf to the hiring and preparation of the  
premises and organisation of the associated industrial and commercial  
contacts.
The study w ill also present an organisation plan involving close cooperation  
with national export promotion bodjes.'
It  w ill also verify the aptness of the theme and specify the m ost  
promising branches of industry.
Conclusions
The Commission believes that the holding of a  European exhibition or a  
series of exhibitions in the A S E A N  region centred on a specific theme  
is an act of p o litic a l and economic importance which w ill strengthen  
and reaffirm Europe's presence in this region. It  recommends that the  
Council approve this in itia tiv e  designed to help the Community achieve  
a  greater economic impact in a  region of accelerating growth and  
prosperity so that joint agreement can be reached w hen EEC-ASEAN economic  
ministers meet in October 1985.