H.M. Sultan Haji Hassanal Bolkiah Mu'izzaddin Waddaulah,

Fellow Colleagues,

In the first year of the new century, it is of great significance for us to gather in Brunei, "the State of Peace", to discuss the major issues of safeguarding peace, strengthening cooperation and promoting development.

China and ASEAN countries are all developing countries. They are geographically close to each other, share similar cultures and have forged close ties since ancient times. For the past decade in particular, the two sides have constantly enriched and promoted their cooperation and established a partnership of good-neighborliness and mutual trust oriented towards the 21st century.

This year, China-ASEAN cooperation has made fresh progress. High-level exchanges between the two sides have been frequent, trade and economic cooperation have grown further, and the cooperation mechanism has continued to improve. In March, the China-ASEAN Joint Committee on Economic and Trade Cooperation held its 3rd session, at which the Expert Group for China-ASEAN Economic Cooperation was set up. In two days' time, an inaugural meeting of China-ASEAN Business Council is to be held, which will add new content to the cooperation mechanism. Despite the current global economic slowdown, the investment and trade between China and ASEAN still maintains marked growth. For the first three quarters, the bilateral trade volume reached US$30.3 billion, a 6.8% increase over the same period last year. This achievement has not come by easily. It fully shows the solid foundation sustaining our cooperation and its exuberant vitality.

As an old Chinese saying goes, "Benevolent government and friendship with neighboring countries are the good fortune of a country". The Chinese Government firmly adheres to the policy of deepening the friendly and good-neighborly ties and cooperation with ASEAN countries. We support ASEAN's efforts to safeguard national unity and territorial integrity, support the ASEAN integration process and support it playing a greater role in regional and international affairs. We are glad to see that ASEAN is making an important step in its integration process. We are sure that a united, stable and prosperous ASEAN will promote peace and development in Asia and the world at large.

At present, the global political and economic structures are undergoing profound changes. To seek peace and achieve development is still our common task. Under the new circumstances, we need to seize the opportunities brought about by economic globalization and the scientific and technological revolution, effectively deal with all kinds of risks and challenges and work together to create a new phase of China-ASEAN mutually beneficial cooperation. In this connection, I'd like to make the following observations:

First, to define priority fields of cooperation for the early period of the new century. In light of the requirements of ASEAN integration and the respective advantages of China and ASEAN, our two sides may define agriculture, information communications, human resources development, two-way investment and the development of the Mekong River as the priority fields for near-term cooperation. We may take full advantage of the existing cooperation channels and gradually establish in these fields a consultation mechanism with the participation of government, industry and academy. We may start with agriculture as it has a relatively solid foundation of cooperation. China stands ready to sign a memorandum with ASEAN on the mid- and long-term planning of agricultural cooperation.

Second, to promote the establishment of a China-ASEAN free trade area. At present, the Expert Group for China-ASEAN Economic Cooperation has submitted a report suggesting that China and ASEAN countries establish a free trade area within 10 years. This is a major event for promoting the long-term development of China-ASEAN relations. The Chinese Government gives it full support. China is ready to work with ASEAN to launch negotiations on the free trade area as soon as possible.

In order to promote the establishment of China-ASEAN free trade area and support ASEAN's efforts to narrow the development gap among its members, China will grant special preferential tariff treatment to three underdeveloped countries of ASEAN--Laos, Cambodia and Myanmar in good time. Relevant details could be discussed through bilateral channels.

Third, to strengthen mutual trust and support politically. While expanding China-ASEAN economic cooperation, it is necessary to step up political dialogue and cooperation and enhance mutual understanding and trust. This is an important element of the all-round development of China-ASEAN relations. We notice that the Treaty of Amity and Cooperation in Southeast Asia (TAC) has been open for signature. China approves of the purposes and principles of TAC and gives favorable consideration to joining it. We will continue to support ASEAN's efforts to establish a Southeast Asia Nuclear Weapon Free Zone and are ready to sign as soon as possible the Protocol of the Treaty on Southeast Asia Nuclear Weapon Free Zone. In order to achieve a more stable situation in the South China Sea, China is ready to complete the consultations with ASEAN on the code of conduct for the South China Sea region at an early date. We will enhance cooperation with ASEAN in international and regional affairs in a common effort to safeguard the legitimate rights and interests of the developing countries.

Friends,

In order to conduct mutually beneficial cooperation between China and ASEAN, the Chinese side put forward a series of specific proposals on cooperation at the China-ASEAN summit last year. Most of these projects have been or are being carried out. We are ready to explore new cooperation projects with ASEAN countries on the basis of continued implementation of the existing projects:

-- China will be committed to the development of the Mekong River Basin. Experts from China, Laos, Myanmar and Thailand have completed the environmental impact assessment for the navigation channels improvement project in the upper Mekong River. Preparations have by and large been made for removing obstructive reefs. The Chinese side will provide a sum of US $5million to help launch the project. Thanks to the hard work of the Laotian Government, the conditions are now ripe for building the Kunming-Bangkok highway. The Chinese side is ready to undertake to build a one-third section of the Kunming-Bangkok highway within the boundary of Laos in the form of assistance. China will remain supportive of the construction of the Pan-Asia railway. Once the final routes are finalized by ASEAN, the Chinese side will lose no time in starting the construction or revamping of the relevant highways within its territory.

In view of the fact that these projects are huge in scale and involve many aspects of China-ASEAN cooperation in communications and transport, I suggest that the two sides establish a meeting mechanism between the ministers of communications to strengthen exchanges and coordination.

-- China will continue to support and take part in the building of e-ASEAN. In the coming few years, the Chinese side will step up its training of ASEAN personnel in information technology and actively participate in ASEAN countries' information infrastructure construction. In April this year, the China-ASEAN Information Communication Technology Seminar was successfully convened in Shenzhen. We support Indonesia in hosting the next high-level seminar.

-- To open up new areas of cooperation in the field of medical care. ASEAN countries attach great importance to the prevention and cure of AIDS. China also considers this a pressing issue. The Chinese side is ready to support ASEAN's efforts to the best of its ability and carry out cooperation and exchanges with ASEAN, especially in the field of treating AIDS by combining the traditional Chinese and Western medicine.

Friends,

China is soon to enter the WTO. In this respect, ASEAN countries have given China strong support, for which I wish to express once again heartfelt thanks on behalf of the Chinese Government.

After China's entry into WTO, an all-directional, multi-level and wide-ranging opening-up will take shape. We will strictly abide by the market rules of international practice and conscientiously fulfil all the commitments we have made. The accession to WTO will not only give a new impetus to China's economic development but also provide other countries, especially those ASEAN countries geographically close to China with better environment for investment and more business opportunities. Besides, it will create more favorable conditions for Chinese enterprises to go abroad to invest and set up businesses in neighboring countries including ASEAN.

Looking back, we see a solid foundation laid for China-ASEAN cooperation. Looking to the future, we are fully confident of the prospects of bilateral cooperation in the new century. I believe that through our joint efforts, China-ASEAN cooperation will scale a new high.

Thank you.