Summary Conclusion of the Forth APEC Working Group

Fourth APEC Working Group Meeting on Expansion of Investment and Technology Transfer, Seoul, Korea 18-20 May 1993

Summary Conclusion

1. The Fourth APEC Working Group Meeting on Expansion of Investment and Technology Transfer was held in Seoul on 18-20 May 1993. Delegates from Australia, Brunei, Canada, The People's Republic of China, Hong Kong, Indonesia, Japan, Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Chinese Taipei, Thailand, and U.S. attended. Other participants included the APEC Secretariat, and representatives from ESCAP and UNCTAD. The list of participants is attached at Annex 1.

2. Japan, Indonesia, and Philippines are Shepherds for the Work Project on Expansion of Investment and Technology Transfer.

ADOPTION OF AGENDA 3. The draft provisional agenda was adopted as amended at Annex 2.

BUSINESS ARRANGEMENTS 4. Mr. Kun-Ho Cho, Director-General of the International Finance Bureau at the Korea Ministry of Finance, delivery the opening speech. After he open the floor for nominating a Co-chair to moderate the meeting, Mr Tata C. Syarif was elected.

DEVELOPMENTS SINCE THE THIRD WORKING GROUP MEETING 5. Indonesia briefed the meeting on the development since the Third Working Group Meeting held in Singapore. Please refer to Annex 3.

VISION STATEMENT AND POLICY OBJECTIVES 6. The Vision Statement and Policy Issues(Provisional version) was presented by Japan. This was amended as in Annex 4. The Meeting agreed to this and to submit it to the next SOM.

7. The Canadian delegation presented a paper entitled "Foreign Direct Investment, Technology Transfer, and the Innovation Network Model"(Annex 5). The paper written by Dr. Sylvia Ostry points the way to a major "case study" program based on the "innovation network model." It was noted by many delegations that the program proposed in the paper would build upon the objective set out in the proposed Working Group vision statement. Recognizing that other delegations would need time to react to this detailed paper, the Canadian delegation noted that it would welcome comments and suggestions from APEC members. The Canadian term will formulate detailed options for a course of study and present them before the next Working Group Meeting.

CONCEPTUAL FRAMEWORK OF THE INFORMATION NETWORK SYSTEM 8. The APEC Secretariat delivered a presentation on "Developments in Discussions of the APEC Telecommunications and Database Management (APEC Electronic Network)" (Annex 6): The Williamsburg SOM adopted the Report of the APEC Task Force on the recommendation of the Working Group on Telecommunications where it was agreed that "the proposed APEC Electronic Network should be provided for both electronic messaging and the integrated database applications." The Secretariat set up the Terms of Reference for the services of a consultant as directed by the SOM in Williamsburg and also established a Review Panel. The Review Panel's recommendation on the choice of the consultant will be reported at the Seattle SOM, and its decision on the consultant's recommendations at the Hawaii SOM in September 1993.

9. The Meeting appreciated the delegate from UNCTAD for his presentation entitled "Recommendations of Conceptual Framework of the information Network System for Investment and Technology Transfer Working Group"(Annex 7). It was pointed out by the delegation from ESCAP that the RIIPS (Regional Investment Information and Promoting Service for the Asia-Pacific Region), which has been under consideration, be thoroughly reviewed by the secretariat to avoid duplication.

10. The delegation from Chinese Taipei presented a paper entitled, "The Status Quo and Future Prospect of Chinese Taipei's IDICNET in Investment and Technology Transfer"(Annex 8). IDIC is a government agency of Chinese Taipei to take charge in promoting investment and fostering technology transfer, and the IDICNET serves as a very useful vehicle to provide service for local/foreign investors. Chinese Taipei has reaped a fruitful harvest from this information system and is willing to share their experience with all the APEC members.

11. The delegation from China presented the proposal for establishing APEC Economic Information Network (Annex 9), a satellite information network (ISDN-Intergrated Services Digital Network)system in which each APEC member and its enterprises are able to access each other's database. The Chinese delegation recommended to establish a standing organization to coordinate and implement a pilot project, and support its execution.

12. After considering the papers presented by the APEC Secretariat, UNCTAD, SECAP, the China and Chinese Taipei, it was agreed that the issues raised by the working group members, particularly on the need to avoid duplication in already existing systems ( such as UNCTAD's trade Point Network) be brought at the next SOM, with the view that this concern be taken into account by the consultant to be selected by the APEC secretariat.

PRIVATE SECTOR'S PARTICIPATION FOR PROMOTING OF INVESTMENTS AND TECHNOLOGY TRANSFER

13. Draft proposal submitted by Japan; "Participation of the Private Sector “as incorporated in Annex 4. The Meeting agreed to this and to submit it to the next SOM.

INDUSTRIAL SCIENCE AND TECHNOLOGY INITIATIVE

14. The APEC Secretariat brought to the attention of the Working Group members the "Science and Technology Initiative "(Annex 10), which was discussed at Williamsburg SOM.

15. The Meeting reviewed the extract of the Summary Conclusions of the SOM held in Williamsburg, Virginia in March, 1993, in relation to the Science and Technology Initiative put forward by the People's Republic of China.

16. Confirming the consensus reached on the importance of science and technology in maintaining the industrial vitality and dynamism of the Asia-Pacific economy, the Meeting expressed its willingness to incorporate science and technology activities into this Working Group, and to submit it to the next SOM in Seattle for its consideration.

17. The Japanese delegation briefed the Meeting on the Informal Meeting of Industrial Science and Technology held in Tokyo in March this year. The Meeting recognized the importance of increasing mutual understanding in this field. The Meeting also expressed its appreciation to the Japanese delegation for its efforts. Japan proposed to established a Round Table on Industrial Science and Technology within this Working Group , and also expressed its willingness to initiate the first Round Meeting in Japan this September. The meeting agreed to have a special meeting on industrial science and technology in Japan, and to inform the Senior Officials at their next meeting (Annex 11).

18. China reconfirmed its initiative to host a seminar on science and technology and industrial parks, discussions for the preparation of which was suggested for the upcoming special meeting on industrial science and technology in Japan.

19. In this connection, China expressed its interest in being one of the Shepherds of this Working Group. The Meeting agreed to this and to submit it to the next SOM for consideration.

20. In order to duly reflect the importance of industrial science and technology activities in this Working Group, it was also suggested that the present Working Group be renamed to "Investment and Industrial Science and Technology." The Meeting agreed to submit it to the next SOM for its consideration. OTHER ISSUES

21. The APEC Secretariat delivered presentations on "Detailed Procedures for the APEC Budgeting, Tendering and Fund Disbursement" ; "Progress Report of the Working Groups and the Role of the Secretariat"; "Publication and Collection of the Complete Sets of APEC Documents by the Secretariat"(Annex 12)

22. The Japanese delegation delivered the final draft of "The Handbook for Industrial Park Development" and explained it briefly (See Annex 13). The Meeting expressed its appreciation for the Japanese efforts. Japan also proposed a new project, "Preparation of a Guide to Investment Infrastructures"(Annex 14), and the Meeting agreed to examine its details, especially regarding its budgetary arrangement and including a possible request for APEC funding. The Meeting endorsed Japan's intention to launch some part of the above project on a voluntary basis in consultation on methods and ways with individual members.

23. Chinese Taipei presented a paper entitled, “Introduction of Nan Kang Software Park Development Project" (Annex 15). The Software Park Development Project is one of Chinese Taipei's strategies to upgrade the productivity of high-tech professionals at the current stage, and the whole project has been divided into three phases. The first phase expects to start implementation this summer. Chinese Taipei believed that this would be a brand new experience to most APEC members and expressed willingness to share its experience.

VENUE FOR 5TH WORKING GROUP MEETING

24. The meeting thanked and accepted Philippines' offer to host the 5th Working Group Meeting not later than February 1994.

25. The Meeting expressed its appreciation to the host country, the Chairman, the Co-Chairman, and the Drafting Committee.

SITE VISIT

26. As part of the program for the 4th Working Group Meeting, participants of the Meeting visited Taeduk Science Town on May 20.