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The growing wealth of China and other Asian countries worry some who fear the demand for more and better food will exceed potential world supply. US environmentalist Lester Brown points to China's grain imports and the history of agriculture in Japan, Taiwan, and South Korea in his new book 'Who Will Feed China?', arguing that a crisis is brewing. More optimistic experts say similar past predictions have proven wrong, and that China can grow more grain than commonly believed. However, agricultural policies are crucial.

Indonesia has rolled out the prototype of the N250 airplane that it hopes will propel the country to the level of other high-technology exporters. It is made by state-owned Industri Pesawat Terbang Nusantara under the oversight of B.J. Habibie, long the country's technology czar. He hopes to build a second plant in the US to facilitate getting US certification and to draw international attention and interest. Domestic Indonesian airlines have pledged to buy 179 planes, but overseas sales are necessary to make it profitable.

Japanese metal giant Nippon Steel acquired a 50% stake in America's fourth-largest steel maker National Steel in 1984 in order to save it from exploitation by its main shareholder National Intergroup. The company's turnaround has been finally achieved with a mixture of Japanese and American management styles. However, the early days of the partnership were difficult, with NKK underestimating the technological and cultural differences between the two companies. National Steel chairman Osamu Sawaragi has successfully combined the horizontal communications methods of Nippon Steel with National Steel's management style.

International Monetary Fund (IMF) Chairman Michel Camdessus discusses the economic situation in Southeast Asian countries. Camdessus believes that Southeast Asian countries are going through a period of adjustment in the 1997 financial crisis. He believes that, once the countries understand and adapt to the development, they will be able to attract investment again, and continue their economic growth in a more sustainable manner. Camdessus discusses the root problems in Thailand's financial crisis, offers long-term solutions, and draws lessons for the future.

Politics has been the cause for the shortage of food aid to North Korea. North Korea needs 1 mil tons of food to avert the effects of famine, but the UN can only muster 200,000 tons. Food aid is being used an as instrument to gain peace in the Korean region.

Most foreign policy analysts believe that China will be the US' main strategic rival in the future and there are questions as to whether the rivalry can be managed peacefully. There is already criticism of President Bill Clinton's China policy and the anti-China tone of recent books and articles is stronger than at any time since the Tiananmen Square Massacre in 1989. This has followed newspaper reports of a Federal Bureau of Investigation examination into whether the Chinese embassy in Washington had arranged contributions to the Democratic Party's election campaign. Americans continue to have a negative attitude towards China and there is a call to limit China's world influence until it becomes more democratic.

Sahid Javed Burki has returned from the World Bank to his home country of Pakistan to deal with the economic crisis. He has the task of reforming financial markets, reducing tariffs, dampening inflation and broadening the tax base, in the 90 days before elections in February 1997. There has been varied success of such returnees, with some implementing policies to benefit their country, whilst others have made little headway. Burki helped cure high inflation and massive debt in Latin America and he led the World Bank's China programme in the late 1980s.

South Korean investment in US personal communications services licenses and entry into the cellular phone equipment market raise the stakes in the existing battles over the standards in use in Asia, the US and Europe. Because of European market dominance in the Global Systems Mobile standard, Korean firms are targeting equipment using the Code Division Multiple Access standard, which allows data transmission. South Korea backed US-based NextWave Personal Communications, which paid over $4.7 billion for licenses in recent auctions, raising foreign ownership of telecommunications concerns.

The expiration in July 1996 of the 1986 semiconductor pact between the US and Japan raises timely questions about the utility of bilateral trade deals. The US share of Japan's semiconductor market has risen during the pact from 8% to more than 30%, though Japan argues that is due to market conditions and other events. Washington still wants a new agreement involving the two governments, and Tokyo officials have agreed to bilateral talks while the US has dropped insistence on numerical targets. The WTO may obviate any agreement, though.

President Clinton and Japanese Prime Minister Ryutaro Hashimoto reaffirmed the U.S.-Japan security treaty during Clinton's recent visit to Japan. Despite this declaration, there are signs that the existing security framework may need more than maintenance. Issues that threaten Asian stability include the steadily declining presence of US troops in the region and the durability of the Japan-US alliance. The possibility that North Korea may soon collapse would remove the external threat that the US uses to justify its troop presence.

Reports that China provided nuclear aid to Pakistan have created tension between the US and China and may indirectly threaten the tenuous peace between China and Taiwan. The foreign ministers from China and Pakistan deny the reports that China provided machinery for concentrating uranium to Pakistan. If the reports are confirmed, the Clinton administration could levy strict economic sanctions against China for violating the Nuclear Non-Proliferation Treaty. Such sanctions, however, could jeopardize the US's attempts to discourage China from attacking Taiwan.

US aerospace company McDonnell Douglas discovered in Mar 1995 that equipment it sold to China was being used in violation of export agreements, raising further concerns about technology transfers benefitting China's military. The affair has apparently been resolved to the US government's satisfaction, but China's assurances that the sophisticated machining equipment was not being used for military purposes comfort few of its neighbors, especially as some was installed at a plant that makes both military and civilian parts.

Japanese anger over the alleged rape of a Japanese girl by three American servicemen has threatened the security treaty between the U.S. and Japan, which is regarded as a stabilizing force in East Asia. U.S. officials have apologized to Japan, and stressed the significance of the security alliance. The two governments, however, have not adequately explained to their people why the treaty is still important in a post-Cold War era. The U.S. alliance is considered by most as an alternative to a heavily armed Japan or unprotected pacifism, and by some as a threat to peace in Asia.

Nomura Securities International's New York office has been remarkably successful by going its own way, emphasizing its US ties and activities and playing down Japanese business. Max Chapman, the US office head, took over in Oct 1989, three months before Japan's bubble economy collapsed, drawing most of the multinational's attention. With most of its traditional Japanese business in a lull, the office stopped broking US equities and turned to commercial real-estate finance and mortgage and equity derivatives.

Two US senators and three members of the House of Representatives see a continuing role for a strong US presence in Asia, with little erosion of its economic dominance. Sens John McCain and Frank Murkowski and Reps Doug Bereuter, Lee Hamilton, and Dana Rohrbacher agree trade friction is likely to increase, and note that it is the central problem in US-Japanese relations. They think China is vitally important, but say there are no specifically Western rules it must follow. They also discuss N Korea.

Hawaii's economy remains in the doldrums since recessions hit Japan and the mainland US, its main sources of tourists, and it hopes to tap SE Asia as a new source of visitors and investors. However, the US state suffers from an image as small and remote, and it lacks direct links to most of the booming economies. Most Asian carriers fly direct to the mainland US, and would only be interested in Hawaii if they could get cabotage exceptions, which US carriers would oppose unless they in turn receive fifth-freedom rights.

The year-old Asean Regional Forum on security's upcoming meeting follows threatening moves by China sure to cast a long shadow over the conference. Related issues already putting strain on the group include applications from around the world for membership, and Western hopes for a strong structure conflicting with regional fears of antagonizing China. Fortunately, Chinese officials indicate they will follow a conciliatory approach at the July 28 meeting. Asean officials hope to keep their group central to the ARF.

China's arrest of activist and naturalized American Harry Wu has sparked fierce recriminations from US leaders and abruptly worsened relations between the two countries. There was already antagonism between the US and China, as Chinese leaders reputedly suspect a conspiracy to drop the official one-China policy, but the Republican-controlled Congress and the Democratic administration are at odds over how to handle the crisis. House Speaker Newt Gingrich has advocated recognizing Taiwan. Other Chinese actions in the past year had already made sanctions increasingly likely.

US officials and its Export-Import Bank are aggressively helping US companies sell their goods and services overseas under President Clinton's administration. Commerce Secretary Ronald Brown plans a Jan 14 visit to India, when financing for many pending deals is expected to be worked out. The US is India's largest investor, trading partner, and technology source. Critics in Congress and elsewhere, however, contend that US firms can sell themselves, and that paying other countries to buy US goods is foolish.

Taiwanese lobbyists in the US have managed to keep relations with Taiwan high on the list of US government priorities. The lobbyists have persisted in pushing for Taiwan's admission into the UN, and they have fostered close relations between American industry and the Taiwanese government. However, many US legislators are opposed Taiwan's ascension to the UN because of overt resistance from mainland China. The effectiveness of Taiwanese lobbyists might be bolstered by a political realignment in the US.

Hyundai Motor Co is attempting to repair its image in the US by marketing the higher quality of its automobiles. Hyundai enjoyed phenomenal sales in 1987, selling 264,282 cars in only its second year of export to the US. However, the poor quality of Hyundai products marred sales, which dropped to 108,549 cars by 1992 despite their lower cost. The company's upper management is partially to blame for failing to heed the advice of its American dealers. Chastened by the drop in revenues, Hyundai managers are working more closely with dealers to improve American sales.

The European Community (EC) and Asia are coming closer on the economic front. The sizable trade imbalance between the two regions has reduced between 1986-1990. This has allayed Asian fears that European unification will lead to a closed market. Moreover, the EC has granted foreign banks in the EC the same status as national ones and has also reduced restrictions on import of Japanese cars. European companies are responding to competition by entering into collaborations with countries such as the US and Japan.

Asian business persons are ambivalent about the apparent lack of cohesion in the European Community (EC). Divisions in the EC could make it difficult to resist the influx of relatively cheap Asian imports. On the other hand, these divisions and weaknesses could lead the EC to reconsider its trade policies and this might be detrimental to the interests of Asia. Most Asians believe that the economic and political divisions in the EC might slow the pace of unification, but will not stop it. They prefer a unified Europe because of the advantages of a single market of 320 million prosperous customers.

Philippine presidential aspirant Eduardo Cojuangco believes he is the person most qualified to lead his country to economic growth and stability. His accomplishments as head of the coconut cartel that he formed chronicle his business acumen. Coconut products received higher prices during Cojuangco's administration of the monopoly, resulting in more economic benefits for the coconut industry overlords. Moreover, his skillful management of coconut farmers' funds enabled him to develop large business firms which included oil mills and copra trading companies.

Features Montreal, Quebec-based Bombardier Aerospace in light of the February 1, 1999 replacement of Laurent Beaudoin as chief executive. His background with the company and diversification beyond its original snowmobiles; Long-range plans and prospects; Outlook for chief executive Robert Brown. INSET: Good vibrations.

China is modernizing its nuclear arsenal while the four other countries which admit to having nuclear weapons are cutting their missile numbers. China has an estimated 300 to 650 nuclear warheads, with under 20 of these able to hit the mainland US, the others being geared to Asia. China could be developing missiles to carry out a pre-emptive move. The US has sought to tackle this isse but has been unsuccessful. The US has nearly 1,300 warheads, far more than China, and China is not willing to consider reductions until Russian and US levels have fallen to those of China.

The United States has realised that India has the potential to be a major economic power and the U.S. president, Bill Clinton, is going on an official visit in 1998. This follows a visit to the U.S. by the Indian Prime Minister and the Finance Minister in September 1997. Clinton hopes to strengthen links between the two countries, however, members of Congress may resist such moves because they object to India's nuclear policy. India was a close ally of the Soviet Union during the Cold War and it also objected to the United Nations interfering in its relations with Kashmir.

China has criticized the defence pact between the U.S. and Japan which brings the prospect of a wider military role in Southeast Asia for Japan. An editorial in newspaper, the Chinese Daily, has argued that the two-way security treaty should have been abandoned after the Cold War ended. However, the U.S. and Japan want to persuade China that the new agreement could lead to China's inclusion in a security and political alliance. But, China's opposition to the pact will make it difficult to achieve a stable relationship, with China reiterating its non-acceptance of Japan's wider international security role.

Engineer George Koumal is getting no support from US political and business leaders for his ambitious plans to build a rail link between America and Asia. The 7,200-kilometer line would connect the British Columbian system with the Baikal-Amur line in Siberia via an 88-kilometer tunnel beneath the Bering Strait. The line would open up areas which are rich in natural resources, and freight transport times would be significantly shorter than by the sea route, but the line would cross very hostile terrain and it would cost more than the $40 billion first mooted in 1986.

Hong Kong appears to be establishing itself as a bridge in Sino-US relations. US officials watched events after the handover of the territory from colonial rule. They noted that nothing untoward happened on human rights issues, and prepared to welcome Hong Hong Chief Executive Tung Chee-hwa on a visit to the US in Sep 1997 without making any strong comments on democracy. The absence of concern means that discussions during Chinese President Jiang Zemin's Oct 1997 US visit should not focus on human rights, and may lead to a generally more favourable Western opinion of China.

The US Senate appointed Stanley Roth as Assistant Secretary of State for East Asian and Pacific Affairs on Jul 31 1997. The appointment followed a six month vacancy in the post, following the resignation of Winston Lord in Jan 1997. Analysts say the gap, at a crucial time in East Asian affairs, represents a lack of interest in the region from the Clinton administration. East Asian diplomats have high hopes that Roth will be able to re-focus US attention on East Asian policy.

China's deal with Pratt & Whitney of the US, an aero-engine maker, could allow it to make stealthier and longer-range cruise missiles, according to US defence officials. The joint venture between Pratt & Whitney's Canadian division and China National South Aeroengine and Machinery Co (SAEC), will establish a strategic partnership making parts for small gas-turbine engines and develop jet engines. It is likely that the US administration will allow the deal if it comes up for approval.

The Clinton administration is backing Tokyo's economic-reform plans, but revisionists such as Chalmers Johnson and former trade negotiator Clyde Prestowitz believe their arguments that Japan would continue to take major parts of global markets without ceding its home turf, remain valid. They have major reservations about the Japanese reform effort, saying that change will not necessarily make Japan more open.

US policy towards Cambodia following the ousting of Prime Minister Prince Norodom Ranariddh has been confused, and some Republicans have queried the US response. US officials have denounced the use of violence by Hun Sen in taking power, but they have also accused Ranariddh of negotiating with the Khmer Rouge. The US State Department withdrew aid to Cambodia following the violence, but for only 30 days. The US continues to acknowledge Ranariddh as first prime minister, but it has not pressed for him to be reinstated as government leader.

A case to be judged by the World Trade Organization (WTO) in Oct 1997 is a test, both of Japanese economic reforms and of the willingness of the WTO to address the problem of trade obstacles other than tariffs. The case has been brought by Eastman Kodak, which claims that the Japanese government has acted in the market to protect domestic photographic film and paper manufacturer Fuji Photo Film. Fuji denies all claims, apart from the small size of Kodak's market share in Japan. Other business with grievances against Japan will be studying the progress of this case.

Many military analysts believe that the Chinese People's Liberation Army (PLA) has been left behind in the revolution in military affairs (RMA); the aspects of modern and future warfare dominated by information technology. However, some in the US Pentagon are willing to believe the gap between the PLA and the US army may not be as wide as generally perceived. The National Defence University in Washington has published a collection of Chinese essays on RMA which has surprised some experts by its up-to-date thinking. Experts are also aware that coming late to RMA means that progress could be fast.