I. Opening remarks


First of all, l wish to thank our host, the Government of Singapore, for its thoughtful arrangements for the meeting. This is Singapore's yet another contribution to the ASEM process which, I believe, will be facilitated by this meeting with the efforts of all sides.


II. General assessment of the ASEM process


The international relations are undergoing profound changes as we move on towards the twenty-first century. Such changes have two highly visible features. First, the world is increasingly multipolar as it is impossible for one or two big powers to monopolize international affairs. Second, with dynamic expansion of international trade and investment and rapid progress of science and technology, economic links between various countries and regions have become increasingly close and the trend of economic globalization has picked up momentum.


ASEM was convened to respond and adapt to these historical changes. The ancient civilization of Asia is brimming with renewed vitality as its economy grows with stunning speed. Europe, on the other hand, remains one of the world's leaders in economic stren6h and technological power. There is a great potential and broad prospect for them to establish a partnership of equality and mutual benefit and to enhance economic cooperation, political dialogue and cultural exchanges. In so doing, not only will they give new impetus to economic growth of Asian and European countries, but also serve the formation of a more balanced structure of international relations and world order.


We are pleased to see that the ASEM process has over the past year made certain progress by basically maintaining the momentum of the first ASEM. In particular, a framework for in-depth cooperation between governments and business communities of Asian and European countries has taken initial shape through such follow-up activities in tile economic field as the ASEM Senior Officials Meeting on Trade and Investment (SOMTI), Asia-Europe Business Forum and ASEM Government and Private Sector Working Group on Investment.


China has taken an active part in and contributed its share to the various ASEM follow-up activities.


The First ASEM Customs DG-Commissioners' Meeting sponsored by China in Shenzhen last June facilitated the cooperation among Asian and European countries in simplifying customs procedures and combating illegal drug trade.


In addition, China will host the Asia-Europe Expert Meeting on Technological Cooperation in Beijing from April 24 to 25 this year. Proposals for actions to be taken will be put forward after Asia-Europe cooperation in agriculture, environmental protection and technological upgrading of enterprises are discussed in depth. China looks forward to [6your full support for the initiative.


We believe that the follow-up activities will yield concrete results


as long as all parties, in strict compliance with the common understanding reached by the leaders in Bangkok, stick to the priorities, pursue progress in a step-by-step fashion and act by consensus.


III. International and regional issues


I. China's principled position on Asia-Europe political dialogue


The Chinese side agrees to a political dialogue within the ASEM framework. We believe that the focal point of the ASEM process is economic cooperation, a point which already enjoys a consensus among the parties. Political cooperation, which is built on that premise, is also an important component of the new Asia-Europe partnership. The exchange of views among Asian and European countries on international and regional issues of common interest, on the basis of equality, mutual respect for sovereignty, non-interference in each other's internal affairs, seeking common ground while putting aside differences, consensus and step-by-step progress will be conducive to closer mutual understanding and mutual trust and the maintenance of world peace and stability.


As for contents of the proposed political dialogue, China is of the view that it should stay away from sensitive or controversial issues and that it should avoid overlapping with other forums. It is hardly advisable for multilateral meetings to deal with bilateral issues.


As for mechanisms of the dialogue, the parties should honour the spirit of the Chairman's Statement of the first ASEM by making use of the existing ones, both multilateral and bilateral, such as the Foreign Ministers' Meeting and the Senior Officials' Meeting, and discussing political issues as part of the overall framework of Asia-Europe cooperation. We see no necessity, at this stage, for establishing new, special mechanisms.


2. Asia-Pacific security


At a time of transition towards a multipolar world, the situation in Asia Pacific is relatively stable. With increased economic strength, the developing countries in this region have enjoyed a notably higher status while playing a greater role in Asia-Pacific affairs. They have become the principal force for regional security. Such a trend helps the shaping of a fair and reasonable new order of regional security characterized by consultation, cooperation and equality.


It is noteworthy that hegemonism and' power politics still linger in the Asia-Pacific region while the Cold War mentality continues to wield certain influence in the international relations. The troubles and problems in this region that are left over from history are all local in nature, and can be resolved gradually, as one would hope, through peaceful means.


Being an Asia-Pacific country, China always attaches great importance to the maintenance of regional peace and stability. China needs a surrounding environment of long-term stability and tranquillity in order to concentrate its resources on economic development and improvement of: its peoples living standards. Our rapid economic growth for more than a decade has been benefited from the peace in the region. Our economic development, in turn, has contributed to a stable and more prosperous region. We will continue working for peace and development in Asia-Pacific. A stable, strong and prosperous China, rather than being a threat to any country, can only be a major contributor to peace and development in Asia and the world at large.


IV. On ASEM's direction and future work


Even with the progress in ASEM follow-up activities, member states remain confronted with many challenges on the road toward deeper cooperation.


First, how to deepen, while ensuring the right direction of the ASEM process, Asia-Europe cooperation in ways and at a speed that are acceptable to all men2ber states. Second, how to address the differences among member states in economic level, historical development and cultural background and their different views arising therefrom. Third, how to handle the question of admitting new members. These issues have a direct bearing on whether the ASEM process can sustain its dynamism and sound growth.


As for the first issue, we believe that if we want to maintain and increase the momentum of cooperation and give greater substance to the follow-up activities so as to bring genuine benefits to all member states, it is crucial that we continue to make economic cooperation the focal point of the ASEM process. It has long been the consensus among ASEM members that economic links form the foundation of the Asia-Europe partnership. Maintaining this consensus is the basic premise for progress in Asia-Europe cooperation.


In economic cooperation, it is necessary to take into consideration the interests of all sides, giving equal emphasis to both trade and investment and technological cooperation, and making them support and complement each other.


Regarding the second issue, I would like to reiterate the principled position on a new Asia-Europe partnership pronounced by Premier Li Peng at the first ASEM, namely, respect each other and treat each other as equals; seek common Wounds while preserving differences and learn from each other; increase understanding and build up confidence; strive for mutual benefits and draw on each other's advantages. These principles were widely endorsed at the first ASEM and were reflected in the Chairman's Statement. As long as these principles are adhered to by all sides in promoting Asia-Europe cooperation, diversity will turn into real engine for cooperation rather than a hurdle to exchanges.


On the question of new membership, the Chinese side holds that the purpose of ASEM is to broaden dialogue, deepen understanding and facilitate cooperation between the two continents. This requires that its membership should have a certain degree of representativeness. Given the complexity of the issue, it can be addressed in a phased manner. In view of the current imbalance in membership of the two continents, admitting more Asian countries should be first on the agenda of new membership admission. The successful handling of this matter will have a significant impact on the ASEM process. The decision on this question should be made by consensus in accordance with the spirit of the Chairman's Statement of the first ASEM meeting.


What I want to emphasize here is that since ASEM deals with issues that fall into political, security, economic and other categories, its very nature determines that only sovereign states can participate. There should be no doubt about it. In addition, pending a new consensus on the expansion of membership, participants of the ASEM follow-up activities should be the same as those of the first ASEM.


The second ASEM to be held in Britain in 1998 will be of great significance. The meeting should make headway in addressing the three issues mentioned above and promoting Asia-Europe cooperation on the basis of the consensus leached by all parties at the Bangkok meeting. A sound preparation should, therefore, be made in earnest.


Furthermore, the Chinese side takes a positive and supportive attitude toward both Singapore's proposal for an Asia-Europe Cooperation Framework and ROK's proposal for an Asia-Europe Vision Group. We hope that they can present from two different perspectives governmental and non-governmental--some forward-looking ideas and recommendations about Asia-Europe partnership.


V. Asia-Europe Foundation


The Chinese side welcomes and support the establishment of the foundation and places high expectations on its role. Increased mutual understanding and mutual trust is the basis for the 21st century-oriented partnership between Asia and Europe. The establishment of ASEF, whose purpose is to promote academic, cultural and people-to-people exchanges between the two continent, will provide new channel of contacts among Asian and European countries.


Like the other countries, we agree to the modality for the establishment of ASEF as proposed by Singapore. To ensure ASEF's smooth operation so as to play its anticipated role, member states should seek an appropriate long-term solution for ASEF's legal status at the second ASEM. Besides, while acting as a "clearing house, coodinator, catalyst and facilitator" in its priority areas, ASEF can gradually expand its scope of operation and contribute to greater Asia-Europe cooperation in an all-round manner.


We want to thank Singapore for its efforts in launching ASEF and appreciate other member state for their support. The Chinese Government will make a contribution of US$ to the Foundation while taking an active part in its activities.


The Chinese side agrees that Mr. And Ambassador Tommy Hoh serve respectively as Chairman of the Board of Governors and Director of the Foundation. We are confident that ASEF will live up to our expectations under their able leadership.