Stunned Asian, EU ministers try to gauge economic fallout
( 2001-09-12 19:09 ) (7 )

Stunned trade ministers from Asia and Europe were trying to absorb the implications for the global economy on Wednesday as they resumed talks in Hanoi after a night dominated by the unprecedented terror attacks on the economic heart of the United States.

World financial markets were in a tailspin as ministers went into the talks, many of them still bleary-eyed after staying up into the early hours to monitor the astonishing developments in New York and Washington.

Share prices in Tokyo fell 5.0 percent Wednesday morning to trade around 17-year lows while Hong Kong share prices plunged 7.6 percent in opening trade after Tuesday's attacks on the World Trade Centre which led to the indefinite closure of Wall Street.

Japanese Economy, Trade and Industry Minister Takeo Hiranuma expressed alarm over the implications for a world economy already confronting a worsening slowdown.

"I recognize it is a very, very serious situation," he told reporters as he went into the talks.

Singapore Trade and Industry Minister George Yong-Boon Yeo said the reaction of world markets was to be expected but insisted the international community would not be intimidated.

"It is natural that the financial markets will make its own assessment and find its own adjustment," he said.

"We have a steely resolve to respond to this challenge -- this is a new scourge to our civilisation.

"We do not intend to be intimidated ... We should not be deflected from our common goal of trying to improve the lives of ordinary people."

But for many ministers, the appalling human cost of the attacks overshadowed all economic considerations.

"The time is not for dollars and cents," said European Trade Commissioner Pascal Lamy. "It is time for sympathy, condolences and reflection."

Malaysian International Trade and Industry Minister Rafidah Aziz concurred, saying: "It is not the time to talk about the economic impact, it is time to reflect on the tragedy."

Ministers rushed out a joint statement through the meeting's chairman, Vietnamese Trade Minister Vu Khoan, expressing their sympathy with the thousands feared to have been bereaved.

"Association of Southeast Asian Nations econmomy ministers and the European Union strongly condemn the terrorist attacks in New York City and Washington D.C.," the statement said.

"It underlines the need for the international community to strengthen cooperation and combat terrorism around the world. We extend our condolences to the American government and people, and to the families of the victims."

Delegations from 13 Asian countries and the 15 member states of the European Union have been meeting here since Monday for a biennial get-together on boosting trade.