'CHANGE IS INEVITABLE'

You must be saddened by your brother Jefri's exile?

Jefri is a member of the family. We cannot deny that. There is nothing wrong with the family. But apart from that, it is a different matter.

The matter of Brunei's finances has attracted the world's press. How bad are they?

Brunei, like all other countries in the region, has been affected by the financial crisis. The price of oil dropped over the past year. Brunei depends on oil and gas, so Brunei's financial reserves were affected. Fortunately, the price of oil has now gone up again. Brunei is now looking at diversifying its economy so that it is not dependent on oil and gas alone.

Some reports say Brunei is almost broke.

Those stories are remiss in a sense, because if you don't know the real situation, then it is difficult for you to assess it. If you come to Brunei and go around town, you will see that it is quite normal. Everyone is quite happy.

Some are unhappy at the impact of Western culture on the youth of Brunei.

I do not see any contradictions or differences over the years among the young people. Even in the late 1950s, Brunei was already sending lots of students to Europe, particularly the United Kingdom, and we still do. When they return, these Western-oriented students do not become a problem. So I do not see any difficulties caused by Western culture in Brunei.

When will democracy come to Brunei?

If you look at the [currently suspended] Constitution of 1959, it addresses the question of elections. In fact, Brunei experimented with an election in the early 1960s. The experience doesn't seem to have been a good one. But times have changed, and under the present circumstances, Brunei may have to look at the situation once again. Recently, there was a review of the Constitution. This has been completed and has been submitted for a final decision. The element of an election is in that report.

You are ASEAN's longest-serving foreign minister. How has the group changed during your tenure?

I have seen lots of changes over the years. At [the recent meeting in Singapore], I emphasized that change is inevitable and that ASEAN must be on top of it. If the mechanism is ready, then there shouldn't be any problems with change. I believe we must be prepared for any eventualities. One thing that has not changed is the atmosphere of friendship and of being frank to each other.

Even ASEAN's own leaders have expressed worries about the group. What are your feelings?

I do not see any problems with ASEAN because I see it as a united group. Now we have expanded to 10 members, so in a sense 10 is bigger so it should be stronger. But of course I agree that each individual member country is different from the others.

Are you worried about events in Indonesia?

Naturally each one of us is concerned. We want to see all members doing well. But I believe that the situation is under control.

As a claimant, how does Brunei view the dispute over the Spratly Islands in the South China Sea?

This is not a new issue. It has been going on for a long time. A lot of events over the past year have caused a lot of concern, and it may take time to resolve the problem. Despite one or two incidents, I am happy that the situation is fairly stable, and I hope it will continue that way in the coming years. Brunei has overlapping claims with China and Malaysia. We have continued bilateral discussions with both these countries and the atmosphere is good.

How are your ties with China?

I am very happy with our relations with China. We have constant discussions and meetings so that we are able to build up good cooperation with China.

One of your members, Myanmar, is ostracized by the European Union and North America. How can this resolved?

Basically, you're right. ASEAN has problems with the E.U. over Myanmar. But I believe there must be ways of resolving this matter. Certainly, ASEAN is united on this issue, because in our meetings, decisions are reached by consensus.

Will Brunei open up in line with ASEAN's Vision 2020?

Of course. We have adopted an open policy. Brunei cannot be different from other countries. It must move with the times.

WASHINGTON
U.S. secretary of state says China should be 'tolerant'

MANILA
Philippine government denies Estrada's claim to presidency

ALLAHABAD
Faith, madness, magic mix at sacred Hindu festival

COLOMBO
Land mine explosion kills 11 Sri Lankan soldiers

TOKYO
Japan claims StarLink found in U.S. corn sample

BANGKOK
Thai party announces first coalition partner

---

TIME:

COVER: President Joseph Estrada gives in to the chanting crowds on the streets of Manila and agrees to make room for his Vice President

THAILAND: Twin teenage warriors turn themselves in to Bangkok officials

CHINA: Despite official vilification, hip Chinese dig Lamaist culture

PHOTO ESSAY: Estrada Calls Snap Election

WEB-ONLY INTERVIEW: Jimmy Lai on feeling lucky -- and why he's committed to the island state

---

ASIAWEEK:

COVER: The DoCoMo generation - Japan's leading mobile phone company goes global

Bandwidth Boom: Racing to wire - how underseas cable systems may yet fall short

TAIWAN: Party intrigues add to Chen Shui-bian's woes

JAPAN: Japan's ruling party crushes a rebel ì at a cost

SINGAPORE: Singaporeans need to have more babies. But success breeds selfishness

---

Launch CNN's Desktop Ticker and get the latest news, delivered right on your desktop!

Today on CNN