EIGHTEEN world leaders meet at Subic Bay in the Philippines today in the first real test of whether they can reach the most ambitious trade agreement in history - the elimination of all trade barriers in the Asia Pacific region by 2020.
Already, the seventh summit of the Asia Pacific Economic Co operation forum (APEC) has produced important results, with President Clinton and the Chinese President, Mr Jiang Zemin, agreeing yesterday to make state visits to each other's countries in the next two years.
A joint statement issued by foreign and economic ministers on Saturday after a two day meeting papered over clear differences about the rate of liberalisation, with one minister accusing the forum of "coercing" the less advanced member economies to adopt free trade beyond their capacities.
Only five countries signed on to a cornerstone action plan proposed by the Philippines President, Mr Fidel Ramos, which would eliminate tariffs for all 18 countries, who account for 40 per cent of world trade, by 2020, and for more advanced nations by 2010. The other 13 promised to endorse the plan at a later date.
There was also a lack of consensus for a US initiative to end tariffs on modern technology products by 2000. This took up most of the weekend discussions, but APEC is unlikely to be able to bring a clear policy goal on the proposal which would need EU endorsement - to the first ministerial meeting of the World Trade Organisation in Singapore next month.
President Clinton arrived in the Philippines on Saturday evening after a brief holiday in Australia, fresh from re election and promising that relations with a fast growing Asia will be a priority of his second term. His 85 minute meeting with President Jiang was cordial, officials said, despite differences over human rights and Taiwan.
Mr Jiang complained about US arms sales to Taiwan and Mr Clinton raised human rights and the "need to make progress". But, while agreeing on state visits, the two presidents apparently could not decide who should go first.
They did announce that the US Vice President, Mr Al Gore, will travel to Beijing in the first part of 1997. The last US president to visit China was Mr George Bush in 1989, before the suppression of student protests that year in Tiananmen Square.
Uncertainty in American ranks over how warmly to embrace China now as it emerges as a world economic power was embarrassingly evident in Shanghai last week when the US Secretary of State, Mr Warren Christopher, changed the theme of a keynote speech on US China relations in the 21st century from "partnership" to "co operation", not knowing the text had been published.
The meeting between the two presidents was "very friendly, positive and constructive", said a Chinese Foreign Ministry spokesman, who disclosed Mr Gore would have talks with the Prime Minister, Mr Li Peng, on issues such as environmental protection. He said the atmosphere in their bilateral relations had improved, especially following the visit to Beijing earlier this month by Mr Christopher.
White House spokesman Mr Mike McCurry said it was "a meeting that I would describe as constructive, that moved this vital strategic relationship forward."
A senior US official told reporters Mr Clinton told Mr Jiang the world would be watching how China handled its takeover of Hong Kong next year. On this issue, the spokesman said Hong Kong would enjoy a large measure of autonomy. Beijing would allow Taiwan an even greater measure of autonomy when it was "peacefully reunited with the motherland".
The Chinese President told the US leader the wreck of a second World War US B 24 bomber had recently been found in southern China with some human remains. He gave him a videotape and photographs and invited American forensic scientists to inspect the site.
Mr Clinton said at the start of a subsequent meeting with the Japanese Prime Minister, Mr Ryutaro Hashimoto: "I think it went very well. It was a good meeting, and I think the next steps are appropriate."
Later, he raised with the Philippines President, Mr Ramos, the proposal for an Information Technology Agreement (ITA) by 2000 and will undoubtedly bring it up when the 18 leaders meet in Subic Bay this morning, dressed in the traditional barong tag alog, the traditional silk and fibre menswear in the Philippines.
The APEC ministers gave only lukewarm support for the initiative to free a $1 trillion industry, endorsing "the efforts at WTO to conclude an information technology agreement by the Singapore Ministerial Conference."
The US Commerce Secretary, Mr Mickey Kantor, said however: "We think the language of endorsement is not only adequate but helpful as well as supportive."
AFP adds: The US, Japan and South Korea put new pressure on North Korea to start four nation talks to end tensions on the Korean peninsula.
The impetus came from South Korean President Kim YoungSam, who told his counterparts from the US and Japan, in Manila, that his country would continue to search for peace on the Korean peninsula, despite a recent North Korean submarine incursion.