Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	SANTIAGO 
Tarikh/Date 	: 	20/06/91 
Tajuk/Title  	: 	THE OFFICIAL DINNER IN HONOUR OF 
			HIS EXCELLENCY PATRICIO AYLWIN 
			PRESIDENT OF THE REPUBLIC OF CHILE 




 Your Excellency President Patricio Aylwin,
Madame Aylwin,
Distinguished Guests,
Ladies and Gentlemen.
    May I first of all thank you Mr. President for the very
warm  welcome that has been extended to my wife and I and to
members of my delegation.  Chile used to be very remote  for
us  but  of  late  we have been hearing much more about your
great country and we are delighted to be here  today,  after
what  must  be  the  first  direct  flight from Kuala Lumpur
across the South Pacific to Santiago.
2.   As I journeyed across the Pacific to come to  Chile,  I
felt  a  sense  of  wonder at the vast geographical distance
that separate our two countries.  To this must be added cul-
tural and linguistic differences as well.   It is  not  sur-
prising  therefore  that  our  relations though friendly and
cordial, have not been quite so active until very recently.
3.   And yet, Mr. President, our world is becoming more  and
more  interdependent.    The system of global trade and com-
merce in particular cannot but link our destinies for better
or for worse.  If we are to progress  and  prosper  we  must
overcome  the  barriers that separate us and join hands both
in constructing a fair and equitable  international  trading
system and in enhancing bilateral economic and technical co-
operation.
4.   Chile  and  Malaysia  are  both  Pacific nations.   The
Pacific has already become the world's most  dynamic  growth
centre  and is set to play a leading role in global politics
and economics.  If the Pacific is to continue to surge ahead
economically, a free and open trading system is a  fundamen-
tal  necessity.    The Pacific must evolve more fully into a
basin of cooperation.  It must not be allowed  to  become  a
cauldron  of rivalry and unhealthy competition, whether eco-
nomic or political.  Neither must it be  made  secondary  to
the interests of any particular nation.
5.   The  vast  Pacific Ocean has separated nations and peo-
ples more completely than any other body of water.  But  to-
day  the wonders of modern technology has caused the Pacific
to shrink.  We can speak with each other as if we are only a
street away and in the time it takes  to  drive  from  Kuala
Lumpur  to Bangkok in neighbouring Thailand, we can actually
fly into each other's capital.  The Pacific Ocean should  no
longer be the barrier it was and Chile and Malaysia must pi-
oneer  new partnerships between the countries of the Pacific
to take advantage of the shrunken ocean.
6.   It is in full awareness of this that I  come  to  Chile
with  the earnest hope that we would be able to put in place
a new bilateral framework for sustained cooperation  between
our  two countries.   On the basis of our discussions today,
and given your own very strong commitment to this  cause,  I
feel  confident  that  this can be achieved.   Certainly the
agreements on Trade and Economic and Technical  Cooperation,
and  the  Bilateral Payments Agreement that we will sign are
steps towards realising this commitment.  We must  now  take
steps  to  realise  the contents of these agreements so that
there would be tangible improvements  in  trade,  investment
and technical exchanges.
7.   Malaysia  and  several  other  East Asian countries are
presently registering high rates of growth ranging from  be-
tween 7 to 10 per cent.  This in turn has generated an enor-
mous  demand for goods and services.  There is no reason why
Chile cannot supply some of these  goods  and  services  and
thus  participate  in  East  Asia's dynamic growth.   I have
brought with me more than 60 businessmen who are keenly  in-
terested  in  developing  business  ties with Chile and I am
hopeful that the contacts they will establish here in  Chile
will  help  accelerate  the pace of cooperation not only be-
tween Malaysia and Chile but between Chile and East Asia  as
well.
Excellency,
8.   May  I once again thank you for receiving me and my de-
legation with such warmth and hospitality.  May I  now  pro-
pose  a  toast  to  Your Excellency's good health and to the
friendship and cooperation between our two countries.