Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	HILTON HOTEL, KUALA LUMPUR 
Tarikh/Date 	: 	05/11/84 
Tajuk/Title  	: 	THE INAUGURATION OF THE 30TH 
			COLOMBO PLAN CONSULTATIVE 
			COMMITTEE MEETING 




Mr. Chairman; Excellencies; Distinguished Delegates; 

Ladies and Gentlemen.

It is indeed a great pleasure for me to be able to deliver the inaugural
address on the occasion of the 30th Colombo Plan Consultative Committee
Meeting. I would like first of all to extend a warm welcome to all
delegates and observers attending this Meeting in Kuala Lumpur.

2. In the thirty-three years since its launching in 1951, the Colombo Plan
has provided a framework for international cooperation in support of
countries in Asia, particularly South and Southeast Asia, and the Pacific
in their development efforts. In the process this organisation has also
brought about closer cooperation between donor and recipient countries.

3. The Plan has provided a focal point and an important channel for
technical cooperation which is not limited to the provision of assistance
from developed to developing countries but include cooperation among
developing countries in order to promote self-reliance through the
exchange of relevant experience, pooling and sharing of resources and
development of complementary capabilities.

4. I am pleased to note that the Plan was one of the forerunners of the
concept of Technical Cooperation among Developing Countries or TCDC. I am
also pleased to note that member countries recognise that the Plan should
continue to promote such activities as TCDC in view of the major objective
of fostering economic cooperation among developing countries and thus
reduce their dependence on the developed countries.

5. In this regard, Malaysia, while still requiring technical assistance in
a number of fields is prepared to share its development experience by
providing technical assistance on a modest scale to other developing
countries. As an expression of our desire to cooperate in this direction,
the Malaysian Technical Cooperation Programme was launched in 1980. This
Programme includes the provision of fellowships and scholarships for
studies and training at various institutions in Malaysia, study visits and
practical attachments at various Government agencies and also the
secondment of experts.

Ladies and Gentlemen, 

6. As we are all aware, human resources development either through
training, educational exchange or sharing of experience is the major
concern of developing countries. The Colombo Plan has traditionally
attached the highest importance to this area and accordingly this aspect
has been made one of the elements to be discussed in the Special Topic
Paper. Developing countries feel that there is an urgent need to move
quickly towards improving efficiency in mobilising their resources and
acquiring skills to achieve a higher level of economic and social
advancement. It is hoped that such mobilisation would enable developing
countries to achieve greater self-reliance and resilience to prepare
themselves to meet the challenges of the post-recession era.

7. It is disheartening to see that sometimes, under pressure of national,
social, economic or political conditions, some Governments make decisions
within a domestic framework which consciously discriminate against
developing countries and also undermine international cooperation. We are
deeply concerned that some developed member countries are practising this
undeclared antagonism when formulating their education policies. The
charging of high tuition fees and imposition of restrictive quotas for
students from abroad are examples of this short-sighted trend. I would
like to remind the affluent members that their short-term gain in terms of
fees etc. cannot offset their long-term loss of goodwill. I would urge
developed member countries to give due attention to these considerations
when formulating policies on training and educational exchange.

Ladies and Gentlemen, 

8. This Meeting is being held at a time when there is a great deal of
uncertainty in the world's economic environment. Although there are signs
of an upturn, we are not sure whether it can be sustained. Here I would
like to draw attention to the metamorphosis that is going on in the
developing countries.

9. For decades and even centuries they have been the producers of raw
materials which were exported to the developed countries for processing
and final manufacturing. A fair amount of these products are then
reimported by the developing countries. Now the developing countries have
the knowhow to process some of their own raw materials so that they can
export them with greater added value. Unfortunately the great advocates of
free trade among the developed countries have now decided that free trade
is not so good after all. Not only that, some of them have ganged up into
economic communities whose sole intention is to deny access to goods from
developing countries. And all the while the trading in primary commodities
is still controlled by them through exclusive marketing clubs.

10. The mere production of primary commodities will never ever transform
developing countries into developed countries. The metamorphosis can only
come about if they go into processing and manufacturing. But the measures
taken by the developed countries will prevent early metamorphosis and
condemn developing countries to permanent poverty.

11. This fear and consequent discrimination against developing countries
should stop. The developing countries will never ever displace the role of
the developed countries as the major producers of manufactured goods. They
are going to be confined to the less sophisticated, mainly
labour-intensive industries. As such they will complement the industries
of the developed countries. But there is a chance that they will become
richer and will most certainly become better customers of the developed
countries. Therefore the developed countries should not only accept the
metamorphosis that is going on in the developing countries but should
actually assist in the process.

12. There must be a substantial increase in the resources devoted to
scientific and technical education and training. By increasing the level
of 'absorptive capacity' of developing countries through vigorous
scientific and technological manpower training programmes, I am convinced
that even as late starters, it is possible for developing countries to
'leap frog' a few stages of the development process and apply some of the
latest technologies in their industries. This will help them to become
more competitive and will in fact contribute towards lower living costs
even in developed countries where wage levels and other costs have made
the production of certain items no longer economic.

13. I would also like to stress the importance of developing an indigenous
R & D base as a necessary pre-requisite for successful assimilation of
technology from the industrialised developed countries. In the absence of
such a base, I strongly believe that imported technologies cannot be
effectively utilised, adapted and improved to suit the requirements of
developing countries.

14. In the developed countries, most of the R & D activities are financed
and conducted by the private sector, especially in the research
laboratories of their multinational corporations. The position is reversed
in the case of many developing countries. Whatever little R & D activities
that take place in some developing countries occur in research
institutions of the public sector, and in many instances are devoted to
basic research, limited in their scope and industrial applications. It may
be a step in the right direction if governments of developing countries
work closely with the private sector to gear their R & D activities in
areas where there are extensive potentials to be commercially applied.

15. In addition, it is perhaps useful to make it mandatory for
joint-venture agreements in specific industries to include R & D. The
advantages of such an approach is well illustrated by the experience of
some countries. Indeed, in these countries, successful transfer of
technology in many of the industrial fields such as the electronics, ship
building, and the chemical industries were accomplished through ensuring
that joint-venture agreements contained mandatory conditions on the
establishment of R & D facilities.

Ladies and Gentlemen, 

16. While still on the subject of technology development, I would like to
stress the need for forward and backward integration in our development
strategy. As we are aware, many of the developing member countries have
abundant supplies of natural resources. To increase their earnings they
have gone into processing up to various stages in order to add
value. Their efforts can be frustrated by developed countries through the
imposition of higher tariff on processed raw material, as for example palm
oil, and also through the control of freight rates, shipping and insurance
or through quota. Despite this unfair trading practices the developing
countries must persist and reduce their cost as much as possible in order
to compete with the products processed in developed countries.

17. I am happy to note that the primary-secondary sector linkage is also
an important aspect contained in the Special Topic Paper.

Ladies and Gentlemen,

18. While much has been achieved, much more remains to be done and on a
larger scale than in the past. There still exist wide disparities in the
economic situation of the Colombo Plan developing member countries, with
some countries having per capita GNP below US$100. Besides this there is a
substantial gap between the developed member countries and the very poor
developing ones. As long as there are large disparities in the levels of
socio-economic development between nations, the work of the Colombo Plan
cannot be deemed to be over. While each member country sets it's own
priorities in achieving economic and social development, all member
countries I am sure, recognise the need for close cooperation and sincere
sharing of the responsibilities involved in the creation of a more
equitable economic and social order.

19. In concluding I would urge that all member countries should endeavour
to create a favourable international environment for rapid and sustained
economic growth. Such an environment should, amongst others, seek to
provide continued access to markets by developing countries, relatively
stable and remunerative commodity prices, stable international monetary
conditions, facilitation of capital and technology transfer, and an
effective process for international adjustment.

20. Malaysia reaffirms its commitment to the Colombo Plan and its spirit
of international friendship, mutual cooperation and
understanding. Malaysia is convinced that this cooperation for economic
development is as necessary and as beneficial today as it was when the
Plan began thirty-three years ago. We pledge continued support of the
objectives of the Plan.

Ladies and Gentlemen,

21. I hope that in the spirit of cooperation and informality that has
always characterised the Colombo Plan Consultative Committee Meetings, you
will have a most fruitful Meeting. I believe that through a frank exchange
of views and drawing from your invaluable wealth of experiences, the
Meeting will be a success. With these words, I now declare the 30th
Colombo Plan Consultative Committee Meeting open.

Thank you.