Honorable Chairman,
Colleagues,

As mankind enters the new millennium, foreign ministers and representatives from 27 countries across the Pacific gather together in the beautiful city of Santiago to discuss a matter of vital importance regarding the development and cooperation of East Asia and Latin America. This is of positive and far-reaching significance. The launching of the East Asia-Latin America Forum opens a new chapter in the annals of exchanges between the two regions and serves as a bridge of exchanges and cooperation between the people across the Pacific Ocean. This is a useful attempt at inter-regional and inter-continental cooperation and an insightful and creative extension for South-South cooperation.

The world is undergoing profound changes. The trend toward political multi-polarization and economic globalization continues to develop. Pursuit for peace, development and cooperation has become the main themes of the times. The world is witnessing accelerated economic restructuring on a global scale, dynamic scientific and technological advances, emergence of a knowledge economy, ever-deepening mechanisms of regional economic groupings and cooperation, and increasingly fierce international competition. At the same time, the unfair and unreasonable old international political and economic order is damaging the interests of the developing countries, the gap between the North and the South and the digital divide are widening, and there still exist phenomena of serious interference in the internal affairs of other countries, especially developing countries. In the new century, East Asia and Latin America will face tremendous opportunities and also harsh challenges.

The friendly ties between East Asia and Latin America date back to ancient times. It is said that Chinese monks traveled to Mexico across vast oceans as early as the 5th century. Modern times have seen closer material and personnel exchanges between the two regions. Both Asia and Latin America are cradles of ancient and splendid civilizations, and have experienced numerous hardships and waged unremitting struggles. The people of the two continents cherish shared sentiments and sympathize with and support each other.

Most countries in East Asia and Latin America are developing countries having common tasks and common interests. We are all exploring a road to development suited to our respective national conditions, and looking for practical modes for regional cooperation. We are all striving for a world of greater stability, equality and justice, and share the aspirations to learn from one another and conduct cooperation. Countries in East Asia and Latin America have maintained good cooperation in the UN, the WTO, Group of 77 and other mechanisms and in the fields such as the human rights, environment and social development. We are all aware of the stern challenges globalization has brought to developing countries. We are urging developed countries to take the lead in shouldering their own responsibilities, and we are working energetically to safeguard the sovereignty, rights and interests of developing countries. We earnestly hope to continue to develop and deepen such cooperation.

With a large population, rich resources and great potential for development, East Asia and Latin America are important forces in the world arena and in the process of multi-polarization. Over the past 20 years, the two regions have maintained basic stability and economically become the fastest growing and most dynamic regions in the world. At present, the total population of the two regions accounts for over 40% of the world population, and their GDP and foreign trade reach about 30% of those of the whole world. Nevertheless, the economic cooperation and trade and personnel exchanges between the two regions are still out of sync with their respective economic strengths. For instance, in 1999 a mere 2.5% of Asian exports came to Latin America, and only 6% of Latin American exports went to Asia. It is the trend of the times and also a top priority for the two regions to strengthen cooperation.

The launching of East Asia-Latin America Forum will help the two regions to draw upon each other's experience and lessons in economic development, complement each other and seek common development. It will facilitate the coordination and cooperation among countries of the two regions in international and regional affairs, help the developing countries to speak with a louder voice, and push forward the process of multi-polarization. China speaks highly of the role of the Forum and is ready to take an active part in and sponsor the activities within the framework of the Forum. The Chinese side holds the view that the focus of the Forum should be to enhance economic and political exchanges between the two regions and to promote South-South cooperation. With the objectives of promoting understanding, exchanging information and deepening trade, the Forum may give impetus to bilateral exchanges and cooperation in the economic, scientific and technological, cultural, educational and other areas to the benefit of all members. Meanwhile, East Asia-Latin America cooperation is not exclusive. It should serve to enhance exchanges and cooperation between the two big regions and other regions and countries. EALAF should be a useful supplement to the existing regional cooperation organizations.

Given the diversified features of East Asia and Latin America as well as the history and realities of the relations between them, it would be appropriate for the Forum to discuss subjects of shared interest and enhance mutual understanding, following the principle of a gradual approach. The Forum may focus on strengthening multilateral and bilateral cooperation in the economic, trade, scientific, technological and personnel exchanges, academic research and other areas, and on reinforcing dialogue and coordination in such important mechanisms as the UN, WTO and APEC. The Forum may also consider the establishment of a concrete cooperation mechanism in light of its needs and conditions.

Latin America is a continent full of vigor and potentials. It has taken the lead among developing countries in the process of regional integration. The bold, warm-hearted, wise and intelligent Latin American people are marching toward the future with a new look. China attaches great importance to Latin America and stands ready to establish and develop friendly relations and cooperation with all Latin American countries on the basis of the purposes and principles of the UN Charter and the Five Principles of Peaceful Coexistence. China pursues an independent foreign policy of peace and stands for the establishment of a new international political and economic order. It takes the development of friendly relations and cooperation with the vast number of developing countries, Latin American countries included, as a basic point underlying its diplomacy. China has all along supported and actively participated in multi-level and multi-channel regional dialogue and cooperation in various forms. The East Asia-Latin America Forum will be an important channel through which China will help promote South-South cooperation.

In the new century, the three main tasks facing the Chinese people are to promote the modernization drive, accomplish the national reunification, and safeguard world peace and stimulate common development. China has formulated its Tenth Five-Year Plan. Its annual average economic growth rate is expected to be about 7% in the next five years. We in China will expedite the strategic economic restructuring, build an information-based national economy and society, go in for developing China's west, open up China wider to the outside world and build up the socialist country ruled by law. The relevant negotiations on China's accession to the WTO are drawing near to an end. At present, all kinds of preparations are intensively underway. China's entry into the WTO will open its market wider and improve China's system of foreign economic cooperation and trade that is compatible with international customary rules and China's national conditions, thus bringing China's economy more in line with the world economy. This represents a completely new challenge to China, but China has the confidence and ability to take up these challenges. China's accession to the WTO will reinforce the position of the developing countries in this mechanism and the relevant negotiations and will facilitate China's economic cooperation and trade with other countries in the world, including Latin American countries.

China will, as always, attach great importance to its cooperation with Latin American countries, and stands ready to work together with the Forum members to vigorously contribute to the sound development of the Forum and to the East Asia-Latin America cooperation.

Thank you.