Moving on from discussion of the crisis, he spoke of the need to speak "frankly, but with mutual respect," about the environment, crime and drugs, and fundamental human rights.

Singapore's PM, Goh Chok Tong

European Commission President Jacques Santer said that the impact of the crisis on the global economy would be significant, but manageable.

Non-governmental agencies and pressure groups are also in London to lobby world leaders.

Human rights campaigners from East Timor, Burma and Tibet have met outside the summit and called for peace, freedom and democracy.

Asian crisis

The Asian economic crisis is likely to dominate Asem 2, although many of the issues are expected to be resolved at the G-8 meeting in six weeks time.

Singapore's PM speaks to the BBC about the crisis (3'29")

Many Asian leaders are likely to be looking for greater European commitment to resolving the crisis. Some observers question whether the West has become complacent about the situation which they fear could still lead to a global depression, despite the recovery of world stock market after the sharp falls of late October.

Japanese PM Ryutaro Hashimoto said at the conference that "the fundamental strength of the Asian economy runs deep," and that the crisis would be over soon.

Thai Prime Minister Chuan Leekpai says the Asian economy has affected Europe ('0 ''16).

He added that he had been told by Indonesian President Suharto that IMF negotiations there are "at the final stage."

Japan, the world's largest creditor nation, is under pressure to provide more help.

It played an important part in the emergency loan packages for the states hardest hit, like South Korea, but there are complaints that it should have done more.

Critics say it could have helped rescue Asia by opening its home markets, especially to large-scale rice imports.

Asem 2 is expected to conclude with a joint statement on the economic crisis.

The draft statement calls for open trade and full implementation of reforms, and expresses confidence that stability will be restored.

Expansion is on agenda

Other initiatives planned for the summit include proposals to share Western expertise in environmental disasters such as floods and forest fires.

The meeting will look at a possible expansion to Asem. India, Pakistan, Australia and New Zealand have been knocking on Asem's doors since the forum was first set up two years ago.

All four countries argue that the Asia-Europe dialogue is incomplete without their participation and that as Asian nations they must be part of Asem.