Source: San Francisco Chronicle Contact: 29 Jul 1997 Page A9 IN THE EYE OF THE STORM Millionaire George Soros perhaps best known for his extensive philanthropic work in former Soviet bloc nationsis also globally remembered for speculative attacks that forced the British pound out of the European Monetary System in 1992. His purchases and sales of currencies are closely followed in the foreign exchange market. Soros has been criticized for using his wealth to punish ASEAN for admitting Burma to its ranks despite that country's human rights record. Soros denied that his Open Society Foundation, which promotes democracy in Burma, has any connection with or influence on his financial dealings. Albright, Malaysian Leader Clash Over Soros Philanthropist is accused of initiating currency crisis By Robin Wright Los Angels Times Kuala Lumpur In a confrontation with an increasingly important ally, the United States bluntly castigated Malaysia yesterday during Secretary of State Madeleine A1bright's final day of talks with leaders of the Association of Southeast Asian Nations. Senior U.S officials angrily rebutted claims that American businessman and philanthropist George Soros is responsible for Southeast Asia's raging currency crisis, a charge made by Malaysian Prime Minister Mahathir Mohamad in blistering attacks during the annual ASEAN summit in Kuala Lumpur. Albright also personally took on Mahathir about his proposal to modify the United Nations' Universal Declaration of Human Rights, which he said, over the weekend, had been formulated by the superpowers half a century ago and is not suitable for developing countries today. In a vigorous response, Albright said, "It would be a great mistake to consider these principles imposed by the West," and she promised that the United States "would be relentless in its opposition" to any amendments to the 1948 declaration. ASEAN, which links Brunei, Burma, Indonesia Malaysia, the Philippines, Singapore, Thailand, Viet. nam and Laos, represents 450 million people and collectively is now America's fourthlargest trading partner. The flap over Soros, who some Southeast Asian nations say launched a speculative attack on their currencies in an unsuccessful effort to keep ASEAN from admitting Burma due to its poor human rights record, has become particularly nasty in recent days, despite quiet U.S. attempts to convince ASEAN that Soros is not masterminding a regional economic u~ heaval. Several of ASEAN's nine members have plunged into economic crisis, with the drop in their currencies ranging from 5 percent in Malaysia to 20 percent in Thailand against the U.S. dollar in recent weeks. Indonesia, the Philippines, Burma and Laos are struggling with similar situations. Mahathir fired the first round at ASEAN's opening session Thursday. "Our economic fundamentals are good, yet anyone with a few billion dollars can destroy all the progress that we made," he said, without being specific. "We are told we must open up, that trade and commerce must be totally free. Free for whom? For rogue speculators. For anarchists wanting to destroy weak countries in their crusade for open societies, to force us to submit to the dictatorship of international manipulators." On Saturday, Mahathir specifically named Soros, called him a "criminal," compared him to drug traffickers and accused him of sabotage. Other Malaysian officials have since referred to Soros as "evil and villainous" But Yesterday, Stuart Eizenstadt, secretary of state for economic and business affairs pointedly said that Malaysia had no evidence to back up its claims. "Experience suggests that market movements are not dominated by a small number of currency speculators, let alone one person who happens to be a U.S. citizen," he said, citing 1992 European currency fluctuations and the 1994 peso crisis in Mexico, which wreaked havoc on markets in those places. He added that financial failings can usually be traced to policies inside a country a view not welcomed by ASEAN members. Soros has openly opposed Burma's entry into ASEAN this year, but in a statement released in New York he denied targeting ASEAN economies. "I continue to consider the acceptance of a totalitarian and repressive regime a threat to the region's prosperity and stability," the statement said. "However, I do not believe the cause of freedom in Burma would be advanced by linking it to currency speculation."