By Bill Tarrant
PATTAYA, Thailand, April 9 (Reuters) - Leaders of 16 Asian countries are set to endorse policies to restore financial stability and economic growth at a weekend summit in Thailand, according to a draft declaration.
The annual East Asia summit that begins on Friday in the Thai beach resort of Pattaya will also make a stand against trade protectionism amid the worsening global economy.
"They agree that the world is facing a global recession of unprecedented dimensions and called for policy responses that focus on restoring financial stability and economic growth and development," says the draft obtained by Reuters on Thursday.
The leaders will stress the critical importance of "standing firm against protectionist and distortionary measures" and refrain from raising new trade barriers. They will also call for a "prompt, ambitious and balanced conclusion" to the DOHA round of world trade talks.
The East Asia Summit groups the 10-member Association of Southeast Asian Nations and its six "dialogue partners" -- China, Japan, South Korea, India, Australia and New Zealand.
The annual summit among leaders of Asia's export-dependent economies hopes to build on a foundation laid at last week's Group of 20 summit in London, which agreed a $1.1 trillion blueprint to rescue the global economy.
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Security has been stepped up considerably at this beach resort 150 km (93 miles) south of Bangkok, known for its racy nightlife and port of call for U.S. sailors, after Thai Prime Minister Abhisit Vejjajiva's car was attacked this week near the summit venue.
China, Japan and South Korea will meet for a "trilateral summit" on the sidelines of this meeting and will undoubtedly discuss North Korea's rocket launch.
Southeast Asian diplomats say Japan is pushing ASEAN leaders to issue a stand-alone statement about Sunday's launch, which North Korea says put a communications satellite into orbit but is widely seen as a disguised missile test.
China will not accept any statement that strongly condemns the North, diplomats said. The U.N. Security Council has failed to agree on a response to the launch, mainly because China and Russia remain unconvinced it was a violation of U.N. resolutions. Chinese premier Wen Jiabao is expected to sign a China-ASEAN Investment Agreement with ASEAN leaders over the weekend, capping long-running talks for a comprehensive free trade area that would be the world's largest, encompassing 1.8 billion people and a combined GDP of $2 trillion.
China signed an initial free trade agreement (FTA) with the 10 members of ASEAN in November 2002, and both sides had set 2010 as a deadline for a broader pact.
ASEAN has FTAs with Japan and South Korea and just over a month ago inked one with Australia and New Zealand. Eventually, the East Asia members hope to link up the pacts to create a free trade area stretching from Beijing to Sydney and Manila to Delhi.
Leaders from ASEAN, China, Japan and South Korea are set to back expansion of a currency swap network to $120 billion from $80 billion to deal with any shortages caused by the kind of capital flight that characterised the "Asian contagion" financial crisis a decade ago.
They are also expected to discuss climate change, energy and food security and responding to disasters such as the 2004 Indian Ocean tsunami and last year's cyclone in Myanmar.
ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. (Additional reporting by Manny Mogato; Editing by Dean Yates)