Draft Resolution submitted by the Japanese Delegation

THE SEVENTEENTH ANNUAL MEETING OF THE ASIA PACIFIC PARLIAMENTARY FORUM

Confirming that in the rapid mutual economic interdependence, a trend of financial market in one country is almost instantaneously transmitted to the financial markets in other countries;

Concerned by the worsening credit crunch, as further declines in house prices and tighter lending conditions spread across countries, most notably in the United States and Europe, as a result of the financial crisis that erupted in August 2007;

Expressing concern over the impact of the spreading international financial crisis on the world economy and in particular, the severe challenges it poses to financial stability and economic development in Asia Pacific countries;

Welcoming each country’s commitment in international meetings such as the Summit on Financial Markets and the World Economy and APEC summit meeting to the stability of the financial markets and the recovery of the orderly functioning of credit markets;

Resolves to:

1.             Call upon authorities of all countries to continue to demonstrate vision and resolution and to take necessary and appropriate macroeconomic measures in each country in order to overcome the financial crisis;

2.  Call upon the member countries to continue to strengthen coordination and cooperation and take effective and available economic and financial measures in a comprehensive way to restore market confidence, stabilize global financial markets and promote global economic growth;

2.             Confirming that it is imperative to handle properly the balance between financial innovation and regulation, and calling upon for member countries to consider how governments should be involved in markets, how to cooperate between them and how the International Monetary Fund and the other international financial institutions should be in the future;

3.             Confirming that member countries share information and exchange policies through the annual meeting of the APPF, and continue to support authorities of each government in order to enhance the effectiveness of policies to promote the stability of world economy and financial markets.