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A plan to weaken the region’s currencies? Was there a conspiracy? The Asean nations certainly felt under 1919 siege. Hence the "serious concerns over well-coordinated efforts to destabilize Asean currencies for self-serving purposes" expressed in a joint communique issued by the group’s foreign ministers in Kuala Lumpur. It was an unusual comment from primarily a political group — and a measure of how frazzled Asean governments are by the regional currency turmoil. Malaysian Prime Minister Mahathir Mohamad thought he knew who was behind it all: George Soros, the world’s premier currency trader. Dr. M said Soros was using the wealth under his control to punish Asean for welcoming Burma. "There is definite evidence that we cannot disclose," said the PM. "There is no doubt he did it." Soros has never hidden his unhappiness with the Slorc. His philanthropic Open Society Institute, which promotes democracy worldwide, has been critical of Slorc for human rights abuses against minorities and political opponents. But Soros insists he wasn’t involved in the currency attacks. Except for a single trade in mid-June, he said his funds had not sold ringgit or baht in the past two months. Billionaire George Soros, well-known for his speculative plays in global currency markets, denies that his philanthropic foundation and currency speculation business are linked in an attack on Southeast Asian currencies in retaliation for Burma’s admission into the region’s trade group. Dr. M accused the US financier of orchestrating currency attacks to punish the Asean. Asean admitted Burma. Soros said through a spokesman that his Soros Foundations and OSI that have sought to promote democratic government in Burma and elsewhere, are distinct from Soros Fund Management, his investment group. "There is absolutely no connection," said Shawn Pattison, a Soros spokesman at his offices in New York. "I can see how the misunderstanding may have arisen here as Mr. Soros has been quite vocal in his urging the governments of Thailand and Malaysia not to admit Burma into Asean," Pattison said. "He continues to consider totalitarian repressive regimes threats to the region’s prosperity and stability." The currencies of Thailand, Malaysia, the Philippines, Indonesia and Singapore have fallen sharply in speculative waves of selling that have raised anxiety about the region’s overall financial stability. "Freedom of speculation had become a political weapon which has given power to a rich person who had forced independent nations to bow to him," the Bernama news agency quoted Mahathir as saying. Mahathir isn’t the first in Asia to blame Soros for the currency problem. The Thai press mentioned him as a force behind last month’s speculative attack on the baht, which Soros also denied. Soros attained global renown for attacks that forced the British pound out of the European Monetary System in 1992. His purchases and sales of currencies are closely followed in the foreign-exchange market. Asia based financial experts agreed Soros’s role was overblown — though not non-existent. "He was just one of many players in the market, albeit a bigger player than most," says Desmond Supple of BZW Securities in Singapore. If he did speculate, Soros was hardly alone. In the days following the Asean conference, Mahathir was even critical of Malaysians who profited by "selling and buying the ringgit for quick gains." There is probably bad blood between Soros and Mahathir that goes back to one of the currency trader’s triumphs: his successful attempt to drive down the value of the British pound in 1992. Betting against Soros at the time: Bank Negara, Malaysia’s central bank. In doing so, the bank reportedly rang up nearly $6 billion in losses. Ironically, Mahathir, 71, and his new antagonist have much in common. Both have strong opinions about how to improve the human condition and are fearlessly outspoken. One grew up in a village in northern Malaysia and became a doctor en route to the premiership. The other, a refugee from the Nazis, fled to the U.S. and made millions on Wall Street. Both are ambitious and watch markets carefully–one on behalf of his business, the other on behalf of his nation. Sources: Asiaweek, Bangkok Post, The Nation