Australia, Japan pitch ideas for new Asia bloc

Australian Prime Minister Kevin Rudd floated a second model for a pan-Asia economic bloc yesterday, challenging a Japanese idea by making US involvement a key component of his plan.

Mr Rudd's plan encompasses a broader collection of states than Japan's East Asia Community grouping which Prime Minister Yukio Hatoyama pitched to 16 Asia-Pacific leaders at a summit in the Thai seaside resort of Hua Hin at the weekend.

Mr Rudd, who first presented his "Asia-Pacific community" idea in June last year, told leaders on the sidelines of the summit, his plan centred on increasing regional cooperation in areas of the economy, security and the environment.

"What I detect across the region is an openness to a discussion about how we evolve our regional architecture into the future," said Rudd, who has put a long-term timetable on his Plan - 2020.

Both the Japanese and Australian ideas would encompass Japan, China, South Korea, India, Australia and New Zealand, along with the 10-member Association of South-East Asian Nations (ASEAN).

The key difference between the two is Mr Rudd's plan definitely includes the United States while Mr Hatoyama's doesn't. Japan's EU-style proposal, which Mr Hatoyama says is at least 10 years away, includes a common regional currency.

Washington has stepped up Asian diplomacy under the Obama administration and fears missing out on such groupings, especially as Japan considers redefining its US security alliance, and Beijing expands its diplomatic and trade presence.

Japan's new government, which has pledged to steer a diplomatic course less dependent on close security ally Washington, has been vague on US participation.

"I think my long-term vision of forming an East Asia community was largely welcomed by participants," Mr Hatoyama told reporters yesterday.