A declaration at the Asia-Pacific Economic Cooperation summit, which was searching for an escape from Asia's economic crisis, also called for monitoring of short-term capital flows and a review of international credit rating agencies.

The document, seen in draft form by Reuters, reflected the concerns of Apec host Malaysia over currency speculators but stopped well short of endorsing its draconian foreign exchange controls.

Many Asian nations complain that the harsh judgments of credit rating agencies such as Moody's and Standard and Poor's have hampered their recovery.

In line with Apec tradition, the summit was informal. Leaders sported a rainbow of brightly-coloured "batik" shirts and discussed the Asian crisis in a circle of comfortable armchairs in a luxury resort called Cyberview Lodge.

The lodge is 40 km (25 miles) from Kuala Lumpur in Cyberjaya, an area of palm oil plantations at the heart of a fledgling multimedia supercorridor that symbolises Malaysia's rural heritage and high-tech ambitions.

Shortly before the summit began, the OECD issued a report saying Asian countries were sliding deeper into crisis and the region would not pull out of its worst slump in 50 years until the middle of next year.

The bleak assessment contrasted with optimism at Apec sparked by flickering of recovery in some of the hardest-hit Asian nations, including Thailand, South Korea and Malaysia.

There were no headline-grabbing initiatives at this year's apec -- which expanded to included Vietnam, Russia and Peru -- although the United States and Japan unveiled a $10-billion joint aid package for Asia.

Japan had earlier pledged $30 billion in loans and guarantees.

Much of the aid was to help otherwise sound banks and companies clear their mountain of bad debt, and stir recovery by boosting business confidence.

US vice president Al Gore opened a deep rift at Apec by hailing pro-reform protesters in Kuala Lumpur as "brave people". The protesters support the main rival of prime minister Mahathir Mohamad, detained former finance minister Anwar Ibrahim.

Outraged Malaysian ministers condemned Gore's remarks as "disgusting" and "abhorrent", and other Asian nations joined the attack, saying Gore had improperly mixed politics and business.

At the lodge, Mahathir shook hands with Gore as leaders filed in, clad in bright batik that ranged from vivid pink to powder blue. Later, during a break, they strolled side by side through a lush tropical garden in frosty silence.

The Apec gathering failed to reach agreement on a $1.5-trillion dollar deal to fast-track nine key areas of trade after Japan bulked at cutting tariffs on fish and forestry products because of pressure from a powerful farm lobby.

Instead, it decided to send the package to the World Trade Organisation to be shopped around.

The Apec declaration also called for:

-- A working group to study investment banks and transparency among hedge funds to ensure sustainable capital flows.

-- Establishment of an international task force along with the private sector to deal with debt problems and risk control.

-- A strengthening of the social safety net.

Chinese president Jiang Zemin urged "concerted efforts" to halt the spread of the Asian crisis and prevent a global recession, the official Xinhua news agency reported.

He also issued a thinly-veiled call for Japan to do more to drag itself out of recession.

"Developed countries should adopt a responsible attitude to stimulate economic growth, boost domestic demand and expand imports by means of fiscal and monetary policies, and refrain from resorting to trade protectionism," he said.

Japan's failure to lift its economy is dooming Asia to protracted recession, and China has frequently made clear its frustration at Tokyo's inability to reflate.

The report by the Organisation for Economic Cooperation and Development said Indonesia, Hong Kong, Malaysia, the Philippines, Singapore, Taiwan and Thailand had almost all slipped into recession.

The downturn had "deepened and become more widespread since the spring of this year," said the OECD, which groups 29 of the world's most advanced economies.

Back in April, the OECD had expected growth by the year-end in Malaysia, the Philippines, Hong Kong and Singapore.

Now it saw Malaysia experiencing a 4.7-per cent contraction, Hong Kong contracting 4.5 per cent, the Philippines shrinking 0.5 per cent, and Singapore flat at zero growth.

Thailand could expect its economy to contract by 7.0 per cent in 1998, while Indonesia's would shrink by 15.5 per cent.