Speech by H.E. Foreign Minister Tang Jiaxuan at the Second ASEM Foreign Ministers' Meeting Berlin, Germany 29 March, 1999


Mr. Chairman,


It is a great pleasure to meet with you and other colleagues from ASEM members in Berlin. Please allow me to express my heartfelt thanks to the host country Germany for its thoughtful arrangements. I am sure, Mr. Chairman, with you chairing our meeting and with the concerted efforts of all the members concerned, this meeting will certainly be crowned with success.


The central task of this ASEM Foreign Ministers' Meeting, which coincides with the turn of the century, is to make preparations for the 3rd ASEM Summit Meeting to be held in this year 2000. It needs no saying that this meeting is of great significance, as it serves as a link between past and present.


It was announced at the Bangkok ASEM Summit Meeting three years ago that a new Asia-Europe partnership oriented toward the 21st century would be established, ushering in a new era in the relations between Asia and Europe. The successful convocation of the London ASEM Summit Meeting last year has contributed further to the development of an equal partnership between Asia and Europe. Over the past three years, ASEM members have conducted cooperation of various forms in a wide range of fields on the basis of mutual respect, equality and mutual benefit. Their cooperation in economic and trade areas has developed rapidly and the two major Action Plans for trade and investment are being implemented. Political dialogue, proceeding in a step-by-step manner, has shown a good momentum. The cultural, intellectual and people-to-people exchanges between Asia and Europe have increased and their mutual understanding has deepened. New proposals for cooperation have been initiated one after another. These facts prove that to observe the principle of seeking common ground while putting aside differences politically and deepen cooperation economically serve the interests of the people in the two continents and conform to their aspirations.


Asia and Europe, as cradles of ancient civilization, have both made immeasurable contribution to the progress of human civilization and advancement of science and culture. Both of them are vital forces in the multipolar world and important players in economic globalization. Despite the fact that they are at different levels of economic development, the two continents have a great potential for cooperation thanks to their complementarity. Enhancing exchanges, deepening cooperation between them and drawing upon each other's strong points will help promote their common development and prosperity and contribute to world peace and stability as well.


The Asian financial crisis that erupted a year and a half ago has seriously affected the economic and social development of a number of Asian countries. It has aroused universal concern among ASEM members, which have reached quite a few common grounds on how to strengthen cooperation and head off the financial crisis. The ASEM Trust Fund established at ASEM II has already been launched, which testifies to the resolve of the two continents to tide over the financial crisis in their joint efforts. China firmly supports the establishment of the Fund. I wish to take this opportunity to announce the Chinese Government's decision to donate US$500,OOO to the Fund. We are pleased to note that the economic and financial situation of some Asian countries that have been affected by the financial crisis has moved towards stabilization recently, their international balance of payments has turned for the better, their foreign reserves increased somewhat, their interest rates fallen a little and their exchange rates have also moved towards stabilization. We appreciate the vigorous efforts made by Asian countries in eliminating the effect of the crisis and recovering economic development. We have full confidence in the prospect of Asia's economy.


The successful launch of the Euro at the beginning of this year attracted worldwide attention. We believe that the birth of the Euro will help advance the process of European integration and establish a more balanced international financial and monetary system. It is our hope that, with the introduction of the Euro, European countries will reduce trade barriers, make vigorous efforts to open their market to Asia and increase investment in Asia so as to further develop the bilateral economic and trade relations between Europe and Asia. In addition, we hope our European partners will continue to share their experience in financial supervision and regulation and monetary cooperation and provide practical and effective technical assistance to Asian countries. By providing such assistance, our European partners will not only help Asian countries tide over the difficulties and re-embark on the road towards economic development at an early date, but also greatly help themselves in their own development.


Asia-Europe cooperation has just started. There is still a long way ahead. I wish to share with you my views on how to push this cooperation onto a new stage at the turn of the century.


I. Equal attention should be given to all major areas while priority to the most important one. ASEM Leaders have set forth three major tasks for Asia-Europe cooperation -- political dialogue, economic cooperation and social and cultural exchanges. It has become important agreement of all members that economic cooperation forms the basis for the new Asia-Europe partnership. In today's world, opportunities and challenges exist side by side with science and technology advancing rapidly and knowledge economy developing by leaps and bounds. In the coming century, economic growth and scientific and technological advances will no doubt be the key factors and driving force for the development of all countries in Asia and Europe. In this area, there is a great potential for Asia and Europe to deepen cooperation, and such cooperation will achieve more and quick results. Therefore, we should give priority to economic cooperation at the present stage, and enrich economic, trade and scientific and technological cooperation so as to further fortify this basis of the new partnership - economic cooperation.


2. The principles for Asia-Europe cooperation set forth at the two ASEM Summit Meetings should be observed. These important principles include mutual respect, equality and mutual benefit, seeking common ground while putting aside differences, non-interference in each other's internal affairs, evolutionary development and decision by consensus. We are pleased to find that, thanks to the concerted efforts of all ASEM members, there have emerged in ASEM a sound momentum for economic cooperation and a good atmosphere for political dialogue. This is something we should deeply cherish. ' So long as we continue to follow these principles, Asia-Europe cooperation will surely enjoy more dynamism and an enormous prospect.


3. Asia and Europe should join hands in promoting the reform of the international financial architecture. The outbreak and spread of the Asian financial crisis have plunged Asian countries into severe economic difficulties and exerted an adverse impact on the global economy. We should not fail to see that the financial crisis has reflected not only the challenges posed by the trend towards economic globalization, but also the defects of the current international financial system. To reform the old international financial system, to strengthen the supervision and control of the short-term liquid capital in particular, is a pressing task facing the fiscal and financial sector in Asia and Europe and in the world as a whole. China has already initiated some principles and proposals on the relevant international forums. It is our hope that Asian and European countries will, through the existing channels such as the ASEM Finance Ministers' Meeting, work together to restructure the international financial system and come up with workable proposals that conform to the interests of all parties. This will give a great impetus to the ASEM process.


4. We should strengthen our coordination in ASEM follow-up activities. There exist a wide range of activities in ASEM. To ensure that its follow-up activities proceed in an orderly manner, it is necessary to further strengthen the role of the Foreign Ministers' Meeting and the Senior Officials' Meeting in providing policy guidance and making overall coordination. The agreement on the criteria of ASEM follow-up activities reached at last year's ASEM SOM is helpful to standardizing ASEM activities and should serve as the yardstick for identifying its future follow-up activities.


China attaches importance to and supports the ASEM process and has actively participated in all the ASEM follow-up activities. The ASEM Ministers' Conference for Science and Technology will be held in Beijing in October this year. Before that, Beijing will also host the fifth ASEF Board Governors' Meeting, the ASEF Cultural Industries and Cultural Development Conference and the 2nd ASEF Summer School. The Chinese Government wishes to host the 3rd ASEM Foreign Ministers' Meeting in 2001. China will, as always, continue to make its contribution to closer Asia-Europe cooperation.


The policy of reform and opening-up that we have implemented in the past 20 years and more has brought about tremendous changes to China's economy. From 1979 to 1997, China's GDP grew at an average annual rate of 9.8%. Weathering through the impact of the Asian financial crisis and conquering the devastating floods at home in 1998, China withstood the severe test and achieved steady economic growth. Its ODP grew by 7.8%, the retail price index of commodities was minus O.8% and its Renminbi Yuan exchange rate remained stable. This year, China will focus on the following' three areas in its economic work. They are: first, to stabilize and reinvigorate agriculture; second, to deepen the reform of state-owned enterprises; and third, to enhance the financial management. The Chinese Government will continue to work for progress in reform and opening up, maintain a healthy development of the national economy and achieve all-round social progress so as to lay a good foundation for the sustained and rapid development of China's economy and make its contribution to a stable economy in Asia and the world as a whole.


Looking back to the past and forward into the future, we are full of confidence. The 25 ASEM member states together have a population of 2. l billion people, which is 38% of the world total, and their combined GDP makes up half of the world total. To promote the common development and prosperity of the two continents is a glorious mission history has put on our shoulders. Let us seize the opportunity and redouble our efforts to meet the challenges and march together towards the new century.


Thank you, Mr. Chairman