Speech by H. E. Premier Li Peng at the ASEM Meeting


Bangkok, Thailand 1 March, 1996


Mr. Chairman,


Today, we, leaders of 25 Asian and European countries meet here for the first time. On the basis of equality and in a friendly manner, we will exchange views on cooperation in a wide range of areas and on the building of a new Asia-Europe partnership oriented towards the 21st century. It is a pioneering endeavor of historic significance. It reflects the widely-shared desire of Asian and European countries for world peace and development for inter-continental exchanges and cooperation. It signifies the growth of Asia and the profound changes in the entire international relations, and marks a growing trend towards multi-polarity and an end to the monopoly of international affairs by one or two big powers. I am convinced that this meeting will have a positive impact on the shaping of a new world pattern in the 21st century. I wish to take this opportunity to express my heartfelt thanks to the Royal Government of the Kingdom of Thailand for hosting this Meeting successfully.


As cradles of ancient civilization, both Asia and Europe have made indelible contribution to the progress of human civilization and the advancement of science and culture. Both hold tremendous creativity and potentials for economic development, as evidenced by the fact that most of the previous economic take-offs and industrial revolutions happened here. Of course, we shall not forget that the colonial invasion and plundering and the scourges of the two World Wars had brought untold sufferings to the people of Asia and Europe. We are confident, however, that the awakening of the people and progress of society will prevent such unfortunate experience from repeating itself. The people of Asia and Europe cherish peace, value national independence and dignity, and treasure friendly co-existence, The convocation of the first ASEM Meeting opens up a new channel for Asia-Europe exchanges and adds a new chapter to the annals of Asia-Europe relationship featuring equality and mutual benefit.


The present world situation is generally moving towards relaxation. The forces for peace are growing; the trend towards negotiated settlement of dispute is gaining momentum; the big -power relations are undergoing readjustments and changes; and developing countries are reinforcing their position. The international political structure is in a process of major transformation, scientific and technological revolution is bringing improvement to us day by day and the world is witnessing on-going profound social changes. World economy continues to grow at an unprecedented pace and the international market is expanding rapidly in both scope and depth. The rapidly-growing world trade and external direct


investment have led to greater interrelation and interdependence. Nonetheless our world is not trouble-free. Hegemony and power politics are still asserting themselves and local conflicts and turmoil break out from time to time, leaving the world troubled with old problems interwoven with new frictions. Economic development is uneven among nations and the gap between rich and poor is widening. People in many developing countries are still living in the abyss of impoverishment. Mankind is still faced with difficulties and menaces of one kind or another for its survival and development. There are still many destablizing factors in international situation. To maintain world peace, facilitate economic revitalization and promote common development --- this has become the mainstream of our times and the shared aspiration of all peoples. Under these circumstances, to increase direct contacts and exchanges between statesmen of Asia and Europe is not only in the interest of the people of the two continents but also conducive to the endeavor for a fair and just new international political and economic order of peace and stability.


To build a new Asia-Europe partnership in the new era calls for new concepts, new vision and new methodology. The old mentality from the Cold War period should be abandoned in its entirety. Summing up the historical experience and lessons of Asia-Europe exchanges over the centuries and looking into the future exchanges and cooperation between the two continents, I believe that a new partnership between Asia and Europe should assume the following basic features:


I . Respect each other and treat each other as equals. Fundamentally different from the unequal relations in the colonial years or the confrontational ones in the Cold War period, the new partnership that we are to build should be based on the principles for peaceful co-existence. Asian and European countries, big or small, rich or poor, strong or weak, are all equal members of the international community with equal sovereignty. The internal affairs of any country can only be managed by its own people and no country should be allowed to capitalize on its own power to encroach upon other countries sovereignty and interfere in their internal affairs under any pretext. Equality is the foundation of cooperation and mutual respects the prerequisite for a sound partnership.


2. Seek common pound while putting aside differences and draw upon each other's experience. Asia and Europe have different cultural traditions, religious beliefs and customs and are at different economic and


social development stages. Their disparity has come about as a product of history and will continue to exist for a long time to come. It is therefore not advisable to identify Europe with Asia or vice versa. Even countries within Asia or Europe differ from one another. Their differences reflect the very diversity of the world and can only be addressed in tile spirit of agreeing to disagree instead of imposing uniformity. No nation should think itself head and shoulders above others or impose upon them its social system, value. development model or way of life. In fact, each nation has its own strong and weak points and ought to learn from each other to make up for its deficiencies, for that is the only way to facilitate common development and progress.


3. Enhance mutual understanding and trust. Owing to historical and practical reasons. It is hardly avoidable for countries in Asia and Europe to have different views or even get into disputes with each other. What is important is how to handle differences when they arise.. The best way is to


increase contacts, treat each other with every sincerity, conduct consultations on an equal footing, enhance common understanding, dispel misgivings, expand common ground and build up confidence, instead of making unwarranted accusations, imposing one's own views on others, which will aggravate contradictions and lead to disputes and even confrontation.


4. Seek mutual benefit and mutual complementarity. AII the countries in these two continents their own strong points and advantages. The industrial revolution once drastically changed the world economy and the outlook of society. Today, Europe is one of the economically developed, scientifically and technologically advanced and financially strong regions in the world. Whereas the Asian peoples are known for their diligence and industry. Many Asian countries and regions have, for more than a decade, maintained a vigorous and dynamic economic development. The rise of Asia has added new vitality to world economy and opened up a huge market for international trade and investment. When faced with global challenges in the economic and social development fields, mankind is again drawing inspiration from oriental civi1ization and wisdom. If Asian and European countries join hands and complement each other with their respective advantages, they will not only be able to bring benefits to their own peoples in new areas but also to meet any challenge in the world.


5. Look into the future and work for common development. Cooperation between Asia and Europe holds out a broad prospect. One


should not only keep in mind one's immediate interests but also and, more importantly, have one's eyes on the 21st century. To build a new partnership between the two continents is by no means an expediency. It is in the shared interests of both Asia and Europe to keep with the spirit of the times, seize the historical opportunity and translate potential opportunities into reality. To achieve that wi11 prove to the world that countries with different cultural traditions and at different development levels can treat each other as equals and conduct mutually beneficial cooperation, each shining its own splendor in a diverse world, but thriving together.


Given the greater weight of economic factors in international relations today, all countries are giving priority to their national economic growth and economic interests. In our discussions on Asia-Europe cooperation, we should give prominence to economic issues which serve as an important basis for the Asia-Europe partnership. Hoping to see some substantive results from the current Meeting in this regard, I would 1ike to propose that priority be given to the following measures: .


--Work together to counter trade protectionism. eliminate trade discrimination, oppose imposition of trade sanctions, gradually remove trade barriers in various forms and promote trade development. Support should be given to those countries which are not yet WTO members in their efforts to join it at an early date, for this is the only way to enable this organization to demonstrate its universality and play its due role in the establishment of a sound international economic and trade order.


--Give new impetus to mutual investment. The growing economy in Asian countries, particularly their enormous demand for investment in infrastructure, has provided a huge market for external investment and promised a bright prospect. However, investment into Asia from Europe is far less than that from other countries and regions. I suggest that an ad hoc expert group be set up to study the current status of investment between Asia and Europe and its perspective, work out measures to be taken, and submit a report on their study.


--Enhance technical exchanges and cooperation . In promoting technical cooperation and technology transfer, priority should be given to


advanced farming technology, environmental protection technology and


technical transformation and renovation of enterprises. I would also propose to set up an ad hoc expert group to study the afore-mentioned areas of cooperation and recommend actions to be taken.


--Promote cooperation among small and medium-sized enterprises


while continuing to intensify that among big enterprises.


--Lay emphasis on the development of human resources. Efforts in


this regard may include helping poverty-stricken areas to get access to means of production development, and organizing in-service training and re-employment training.


Asia and Europe should expand and increase political dialogue the interest of better mutual understanding and trust. We on our part would like to see progress in EU integration and to see EU remain independent and demonstrate openness. On the other hand, we hope that Europe will understand the aspirations of Asian countries to promote economic development and expand regional cooperation while maintaining political stability and support their efforts in this regard. Now, the European Union is attaching greater importance to developing friendly relations and cooperation with Asia, which we appreciate. We think it advisable to make full use of the existing channels for dialogue. Our dialogue may cover both topics universal interest and those of particular interest to our two continents.


In a few days, I am going to deliver a report to the plenary session of


the National People's Congress of the People's Republic of China on the Ninth Five-Year Plan for National Economic and Social Development and


the Outlines of the Long-Tern Objectives Up to the Year 2010. In the past


18 years since the production of the reform and opening-up programme,


China has maintained a momentum of rapid economic growth. During the


just-ended Eighth Five-Year-Plan period, the annual growth rate of its national economy averaged at l I .8%. It has made breakthroughs in its economic structural reform, and steadily opened wider and deeper to the outside world. In the past five years, China's import and export volume


exceeded one million US dollars. In the Ninth Five-Year-Plan period add up to the beginning of the next century, China's economy is expected to continue its good development momentum. This is because we have found a correct path of development and we have political stability, a fairly s80ng material and technological basis, a diligent and hard-working people, a huge consumers' market and abundant resources. We are fully confident about China's future. In the upcoming fifteen years, we will, adhering to the basic principles of seizing the opportunity, deepening reform, opening wider to the outside world, promoting development and maintaining stability, endeavor to achieve the transformation from a traditional planned economy to a socialist market economy and that of the mode of economic growth from extensive to an intensive one. We shall buttress the position of agriculture as the foundation of the economy, rationalize the industrial structure, vigorously build up infrastructure such as energy, transportation, telecommunications and water conservancy projects, support the development of pillar industries such as machinery, electronics, petro-chemical industry, auto industry and construction, develop China's mid-west and energetically expand its service industry. We have carried out a major reform in the foreign trade regime and formulate set of foreign-related laws compatible with international rules .


We have facilitated the convertibility of RMB under the current account.


We have decided to once again drastically reduce tariffs starting from this year, and we will finally reduce them to the average level of developing countries. China's reform, opening-up and stability will prepare it for further integration into the world and will also provide the business community of Asia and European countries with tremendous investment and trade opportunities, and make positive contribution to peace, stability and prosperity in Asia and the world as a whole.


Billions of the people of Asian and European countries have given their blessings to and cherish ardent expectations on this historic Meeting.


As leaders of 25 Asian and European countries, we should live up to their


expectations. Let us work together to build a new Asia-Europe partnership oriented towards the 21st century and to shape a more splendid future for our two continents and the world at large.