SINGAPORE (MNI) - Leaders of the Asia Pacific Economic Cooperation (APEC) forum centered their discussions on Saturday on regional economic integration and on ways to pursue the successful conclusion of the Doha round of multilateral trade negotiations, a Japanese foreign ministry spokesman said.

"This session concentrated on mainly regional economic integration and the Doha round negotiations," said Kazuo Kodama, who briefed reporters at the end of the first day of the APEC Economic Leaders' meeting here.

The leaders also discussed "how the APEC should proceed to realize the so-called Free Trade Area of the Asia-Pacific as well as the facilitation of the trade and investment in the region," Kodama said.

The FTAAP idea was brought up in APEC in 2007 and formal discussions began last year.

APEC's Business Advisory Council, which represents business interests in the region, has been a strong supporter of such a pact and has argued for APEC leaders to introduce a timeline for initiating talks.

Earlier this week Singapore Prime Minister Lee Hsien Loong said, "This (FTAAP) is a vision, it will not happen for many years because there are many economic and political challenges which have to be overcome, but we can take steps towards this vision gradually year-by-year."

What appeared to be more urgent was a successful end to the Doha Development Agenda of the WTO. The conclusion of the round, due for 2010, remains at a cliff edge, with no major breakthroughs seen.

Kodama said Japanese Prime Minister Yukio Hatoyama, in his address to the APEC leaders, called for "a strong political message," for the conclusion of the Doha round.

Japan, as host of next year's APEC summit to be held in Yokohama, would also do its part to continue to work towards the free trade area plan, Kodama said.

Hatoyama also touched on the domestic Japanese economy in today's session, telling the APEC leaders that he saw some recovery in economic conditions back home, "yet the unemployment situation is still in a very serious stage."

"Therefore, it is too early to mobilize in any way an exit strategy," Hatoyama was cited as saying.

Hatoyama also said the Japanese economy must be transformed from an export-led structure to one which was primarily led by domestic demand, a recurring theme in this year's APEC summit, given the slump in U.S consumer demand.

The U.S. was represented by Secretary of State Hillary Clinton, standing in for President Barack Obama, who is due to arrive in the city-state this evening.

At today's APEC meeting, Clinton reiterated the U.S.'s intention to "engage" its trading partners within the Trans Pacific Partnership, which Obama had announced earlier in the day in Tokyo.

The TPP is a free trade agreement involving 4 countries namely Brunei, Chile, New Zealand and Singapore but is not part of the APEC fold. Other than the U.S., Australia has also stated its intention to be part of the TPP, which allows for new members to join.

The APEC meeting ends tomorrow with a joint declaration by the leaders of the 21 nations.

iahmad@marketnews.com ** Market News International Singapore Newsroom: 65-6559 6144 **