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DATE=7/31/98 TYPE=CORRESPONDENT REPORT NUMBER=2-236330 TITLE=SAARC SUMMIT (L) BYLINE=DOUGLAS BAKSHIAN DATELINE=COLOMBO CONTENT= VOICED AT: INTRO: LEADERS OF SEVEN SOUTH ASIAN NATIONS HAVE CALLED FOR THE ELIMINATION OF ALL NUCLEAR WEAPONS AND HAVE POSTPONED PLANS FOR TURNING SOUTH ASIA INTO A FREE TRADE AREA BY 2001. V-O-A CORRESPONDENT DOUGLAS BAKSHIAN REPORTS FROM COLOMBO ON THE END OF A THREE-DAY REGIONAL SUMMIT. TEXT: A DECLARATION ISSUED BY THE SEVEN LEADERS SAYS THE SPREAD OF NUCLEAR WEAPONS CAN NOT BE CHECKED UNLESS EVERYONE DISMANTLES THEIR ARSENALS. THE LEADERS CALLED ON ALL NUCLEAR WEAPONS STATES TO HOLD NEGOTIATIONS ON DISARMAMENT AND THEY CRITICIZED THE RECOGNIZED NUCLEAR STATES FOR MAINTAINING HUGE NUCLEAR ARSENALS. THE DECLARATION FOLLOWS NUCLEAR TESTS IN MAY BY PAKISTAN AND INDIA, WHO TOOK PART IN THE THREE-DAY SUMMIT. THE TESTS PROMPTED CONCERNS OVER INCREASED TENSIONS IN SOUTH ASIA. TURNING TO ECONOMIC MATTERS THE SUMMIT LEADERS PUSHED BACK A PLAN TO TURN SOUTH ASIA IN TO A FREE TRADE ZIBE BY 2001, BUT SAID THEY WANTED TO FINALIZE THE PLAN FOR UNRESTRICTED TRADE BY THAT YEAR. NO NEW DATE WAS SET FOR THE FREE TRADE AGREEMENT TO COME INTO EFFECT. LAST YEAR'S SUMMIT ESTABLISHED THE TARGET OF 2001, BUT A COMMITTEE OF EXPERTS TOLD THE SUMMIT THAT THE DATE WAS NOT REALISTIC. THE LEADERS DECIDED TO SPEED UP TARIFF CUTS ON GOODS TRADED AMONG THE SEVEN COUNTRIES UNDER A PACT CALLED THE SOUTH ASIAN PREFERENTIAL TRADE AGREEMENT. THE LEADERS ALSO SET A TARGET OF WIPING OUT THE MASSIVE POVERTY IN SOUTH ASIA BY THE YEAR 2002. THE SUMMIT BROUGHT TOGETHER THE LEADERS OF INDIA, PAKISTAN, BANGLADESH, SRI LANKA, BHUTAN, NEPAL AND THE MALDIVES. THE COUNTRIES MAKE UP THE SOUTH ASIAN ASSOCIATION FOR REGIONAL COOPERATION, OR SAARC. CRITICS SAY THE ORGANIZATION, WHICH IS MORE THAN 12 YEARS OLD, HAS FAILED TO ADRESS THE NEEDS OF THE MORE THAN ONE-BILLION PEOPLE IT REPRESENTS. SOUTH ASIAN LEADERS SAY THEY ARE DOING THE BEST THAT THEY CAN, GIVEN THE MANY POLITICAL AND SOCIAL PROBLEMS THE VAST SOUTH ASIAN REGION HAS. (SIGNED) NEB/DAB/MMK 31-Jul-98 8:52 AM EDT (1252 UTC) NNNN Source: Voice of America .