Phnom Penh, 4 November 2002

Your Excellency Prime Minster Hun Sen,

Dear Colleagues,

It gives me great pleasure to come to Cambodiato attend the Summit of ASEAN, China, Japanand ROK (10+3).I wish to take this opportunity to extend to our host government my sincere gratitude for the thoughtful arrangements and the gracious hospitality.

Since our meeting in Bandar Seri Begawanlast year, the international situation has undergone complex and profound changes. The regional situation has, on the whole, remained stable. Against the backdrop of the international economic slowdown, the economy of East Asian countries has maintained a momentum of stable growth.

The bombings taking place in Indonesiaand the Philippinesrecently bear evidence of the fact that terrorism is a serious destabilizing factor threatening regional peace. It is therefore imperative for the countries in the region to further expand and deepen their cooperation in the field of non-traditional security, including counter-terrorism.

Facing the opportunities and challenges brought by economic globalization, the 10+3 cooperation is gaining maturity and continuously promoting peace and development of the region. The consultations and explorations on bilateral or multilateral free trade arrangements have in particular attracted more attention. The Final Report of the East Asia Study Groupjointly submitted by the delegates from ASEAN, China, Japanand ROK has worked out the blueprint for the future of 10+3 cooperation. The Initiative for Development in East Asia (IDEA) Ministerial Meeting held in Tokyolast August has promoted the 10+3 cooperation in the development field.The first informal meeting of foreign ministers of the Asia Cooperation Dialogue (ACD) and the successful convocation of the first annual meeting of Boao Forum for Asiaalso reflect the increasing awareness of the need for solidarity and cooperation among Asian countries.

Although fast development has been achieved in a relatively short time, we should also realize that 10+3 cooperation is still lagging far behind compared with the cooperation level in other regions and taking into consideration of the development need of our region. We should, on the basis of current cooperation, raise the level of cooperation in a comprehensive manner. Here I wish to share with you some views and proposals in this respect:

I. Deepen economic and financial cooperation

Economic development is the primary task for all countries in East Asia.Therefore, 10+3 cooperation should continue to take economic cooperation as its priority. The Chinese side supports further implementation of the Chiang Mai Initiative. Chinahas signed agreements on Bilateral Currency Swap Arrangements with Thailand, Japan, ROK and Malaysiarecently, and will continue to hold consultations with other countries. The first round of 4 training courses for 10+3 financial and central bank officials organized by Chinawas well received. We have decided to host another round of 4 training courses in this area for 10+3 countries.

ASEAN integration process is an important component of 10+3 cooperation. The Chinese side will exert its utmost efforts to support the development of ASEAN countries. I hereby announce that as part of China's overall Asian debt reduction plan, we will exempt Vietnam, Laos, Cambodiaand Myanmarfrom part or all of their debts to China.Relevant reduction and exemption plans can be arranged through timely bilateral consultations.

II. Expand political and security cooperation

Transnational crimes including terrorism has increasingly become a reality facing countries in the region. Actually, strengthening political and security cooperation as well as cooperation in combating transnational crimes are among the 8 priority areas of cooperation identified by the Joint Statement on East Asia Cooperation in 1999. With deepening economic cooperation, 10+3 countries should gradually activate the cooperation in political and security fields. The proposal by Chinaof holding the 10+3 Ministerial Meeting on Combating Transnational Crimes has won the support of all relevant sides. We hope this will be the starting point for 10+3 cooperation to create a new arena so as to safeguard our common security. In this regard, Chinawill also issue the Joint Declaration on Cooperation in the Field of Non-Traditional Security Issues with ASEAN leaders, with a vision to jointly confront the new challenges facing us.

Besides, 10+3 countries should further strengthen their communication and coordination to enhance East Asia's status in international affairs. Chinasupports Cambodia, Laosand Myanmarin their efforts to become members of the ASEM at an early date.

III. Strengthen the cooperation mechanism

6 Ministerial Meeting mechanisms have been established within the framework of 10+3, covering the areas of foreign affairs, finance, economy and trade, agriculture and forestry, labor as well as tourism, which have strongly promoted the cooperation in the respective fields.The Chinese side supports the gradual establishment of new cooperation mechanisms in other fields. We therefore welcome ASEAN's proposal of holding a 10+3 Environmental Ministers' Meeting. To facilitate the trade among countries in the region, Chinaproposes to establish a 10+3 working-level mechanism for Customs Cooperation.

We have noted with pleasure that the Final Report of the East Asia Study Grouphas put forward 17 concrete measures that can be implemented in the short term as well as 9 long- and medium-term concrete measures on the future development of 10+3 cooperation. The Chinese side supports the timely implementation of relevant measures through existing cooperation mechanisms. Chinais ready to study the initiatives of establishing an East Asia Free Trade Area and holding an East Asian Summit. With the expansion of cooperation areas, there is a need to strengthen the function of planning and coordination of 10+3 cooperation across these fields. The Chinese side welcomes active discussions in this respect.

IV.Strengthen people-to-people friendly exchanges among countries

Further participation of social circles of 10+3 countries will render greater vitality to the 10+3 cooperation.The 10+3 cooperation should gradually evolve from a phase when governments play a leading role to the joint participation and mutual enhancement between governmental and non-governmental players. The Chinese side will host the East Asian Mayors' Forum in Kunming, YunnanProvince in the first half of next year. I hope this Forum will play a positive role in promoting the participation of all social circles in 10+3 cooperation.

In 10+3 cooperation, we should continue to fully respect the diversity of the region, give considerations to the differences in development level and social system in the region and stick to the principles of mutual respect, gradual progress and emphasizing practical results. As the world is more globalized, East Asia's development cannot be achieved in isolation. The 10+3 cooperation should continue to maintain its open nature and establish mutually supplementary and complementary relations with APEC, ASEM and other mechanisms.

Dear Colleagues,

As an Asian country and the biggest developing country in the world, Chinahas always actively participated and supported regional cooperation.China's development is connecting closely with other East Asian countries. Chinadoes not seek a special status in regional cooperation. Chinasupports any initiatives conducive to regional cooperation and development and in the common interest of East Asian countries. The Chinese side will continue to support ASEAN's leading role in promoting East Asiacooperation. We are ready to work with Japan, ROK and ASEAN countries and give play to the advantages of each of us, so as to promote a sound, steady and sustained development of East Asiacooperation.

As an old Chinese saying goes, "The fire burns high when everybody brings wood to it." East Asiacooperation is our common cause. As long as we work together in a concerted effort, East Asiaand indeed the entire Asiawill surely have a more splendid future.

Thank you.