Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	SHANGRI-LA HOTEL, KUALA LUMPUR 
Tarikh/Date 	: 	19/09/95 
Tajuk/Title  	: 	OPENING OF THE 68TH WORLD CONGRESS 
			OF THE INTERNATIONAL 



      I am delighted to be with you this morning at the 68th
 World  Congress of the International Association  of  Seed
 Crushers  (IASC).  I would like to thank the President  of
 IASC,  Mr.  Sheldon  Hauck, and  the  Malaysian  Oil  Palm
 Growers'  Council (MOPGC) for inviting me to declare  open
 this  Congress.  This is an invitation which I accept with
 much  pleasure,  as Malaysia is a major producer  of  palm
 oil and palm kernel oil.
 
 2.    This assembly, which serves as a valuable forum  for
 representatives from the major producers  of  edible  oils
 from  all over the world, is very relevant and significant
 to  Malaysia.   We  shall, therefore,  be  following  your
 deliberations  with  considerable interest  as  they  will
 have  a  very  important bearing on the future development
 of  the  edible oil industry - an industry which is  still
 growing,  especially the segment that comprises  vegetable
 oils.

 3.   Currently  the  production of fats and oils worldwide
 is  estimated  at 91 million tonnes which is  expected  to
 increase  to  100  million  tonnes  by  the  turn  of  the
 century.   Of  this amount, approximately 78  percent  are
 derived  from vegetables and the balance from  animal  and
 marine  sources.   By  the year 2000,  however,  vegetable
 oils are expected to account for almost 80 percent of  the
 world's total supply of oils and fats.
 
 4.    About 30 percent or 28 million tonnes of edible fats
 and oils enter the world market as exports,of which almost
 85 percent are  derived from  vegetable oils, illustrating
 the predominant role that vegetable oils play in the world
 trade in fats. Over the years,the share of vegetable oils,
 both  in  terms  of production as well as world trade, has
 been growing steadily.This trend is expected to accelerate
 further as people become increasingly health-conscious  in
 view  of   the  generally  lower   levels  of  cholesterol
 associated with  vegetable  oils when  compared  to animal
 fats. Additionally   vegetable  oil  come  from  renewable
 and  controllable  sources and  does  not deplete nature's
 bounty.
 
 5.    The  edible  oil  industry is facing  a  stimulating
 challenge  with  the opening up of important  new  markets
 due  to  the  spreading  acceptance  of  the  free  market
 economy  and  the  prosperity which often accompanies  it.
 In  this  scenario it is important that  the  IASC  should
 ensure  that  the  growth  in production  in  response  to
 increased demand and new markets should be able  to  reach
 potential  customers without having to overcome  unethical
 barriers  and political obstacles.  I therefore  urge  the
 industry  to be united, to pool its resources  and  invest
 in  research as well as new technologies so as  to  remain
 competitive.
 
 6.     One  of  the  developments  that  has  considerably
 enhanced  the prospects of international trade in  general
 and  that  of edible oils in particular is the  conclusion
 of  the  Final Act of the Uruguay Round and the  agreement
 to  establish the World Trade Organisation (WTO).   It  is
 our  fervent hope that these institutions will advance the
 cause  of  trade  liberalisation and  expand  as  well  as
 strengthen  multilateral rules and  disciplines  governing
 international  trade,  thereby  promising   further   non-
 inflationary  growth in accordance with the  objective  of
 achieving sustainable development of the world economy.
 
 7.    In  the long term, the world economy is expected  to
 reap both static and dynamic gains from the conclusion  of
 the  Uruguay  Round.   It has been estimated  that  static
 gains  from  market  access commitments  would  be  a  one
 percent annual increase in world income over the next  ten
 years.   More  important, however, are the dynamic  gains,
 although   these  are  harder  to  quantify.   These   are
 benefits  that  accrue  from  externalities  generated  by
 increased   competition,  economies  of   scale,   greater
 innovation,  technological  spillovers  and  the  positive
 effects  of higher productivity growth on investments  and
 savings.  Stronger trading rules and their enforcement  by
 the   WTO  are  also  expected  to  bring  about  enhanced
 predictability  and stability in trade  policies  and  the
 resolution of trade related issues.
 
 8.    In the midst of these positive developments, we  are
 deeply   concerned  by  the  attempts  of  some  developed
 nations  to  link  trade policies and labour  as  well  as
 social  standards.  Linking international trade to  social
 conditionalities would amount to a hidden barrier  and  an
 attempt  to  curb exports from developing nations  to  the
 developed  countries.  It would in fact further impoverish
 the  already poor and prevent them from achieving the very
 social  reforms which such conditionalities were  supposed
 to  bring  about.  We should free ourselves from the  need
 to  hide  behind such spurious tactics in the  attempt  to
 counter  fair  competition.  We  should  shake  off  these
 negativity  and  be prepared to open up our  countries  to
 international trade within the agreed rules  designed  for
 fair competition.
 
 9.    In  a  dynamic world order, nothing remains  static.
 This   is   particularly  applicable   to   the   economic
 development  of nations and regions.  While the  19th  and
 20th  centuries  were dominated largely by  happenings  in
 Europe  and  the  USA,  the 21st century  is  increasingly
 viewed as belonging to Asia in general and the nations  of
 the   Pacific  Rim  in  particular.   This  is  a  natural
 development   and  should  be  welcomed   by   the   world
 community,  both  developed and  developing,  and  by  the
 countries of the North as well as the South.
 
 10.   Economies  of the West are essentially  matured  and
 self-sustaining  with  high rates of personal  consumption
 and  low  rates  of  savings and capital  formation.   The
 emerging nations, starting from a low base and with  their
 propensity  for higher savings and investments,  and  with
 the  zeal and determination to catch up, are able to  grow
 at  a  more  rapid  pace than the more matured  economies.
 This  growth  would, however, be stunted if the  developed
 world  not only does not lend a helping hand but  actually
 put  obstacles  in the way.  The world is a  much  smaller
 place  now and we are all close neighbours.  If neighbours
 are  poor  there will be a spillover into other countries.
 And  one of the results will be massive migration  of  the
 poor with all the attendent problems.
 
 11.   The  turmoil  in  the currency  markets  is  another
 problem. Perhaps doing away with fixed exchange rates  and
 the  gold  standard may have some merit but  the  loss  of
 sovereignty  over one's own currency and  manipulation  by
 unscrupulous currency traders and Governments is  creating
 havoc,  distortions  and  anarchy  which  hurt  the   poor
 particularly.   Malaysia's  Yen  debts  rose  300  percent
 because  of  the  current anti-Japanese climate.   And  as
 usual  producers of raw materials have to  sell  more  and
 more  in  order  to  pay  for less and  less  manufactured
 goods.   If  before  cheap and quality  Japanese  products
 were  available, now Japanese goods have become  expensive
 while  their  competitors'  goods  have  not  become   any
 cheaper.
 
 12.   We  in  Malaysia have turned away from depending  on
 the  production and export of raw materials to  avoid  the
 changes  in  the terms of trade.  But now our manufactured
 goods  too  are  affected by the Yen revaluation  and  the
 loss  of our GSP privileges long before we reach the  cut-
 off points.
 
 13.   The GATT negotiations are finally over.  We have now
 decided to set up the World Trade Organisation (WTO).   We
 are  beginning  to  doubt that the WTO will  be  any  more
 beneficial   to   the   weak  that  the   United   Nations
 Organisation has been to them.  Might is still  right  and
 it  will remain so until there is a radical change in  the
 attitudes of the powerful.
 
 14.   As  we  stand on the threshold of a new century,  we
 should  make a serious attempt to free ourselves from  the
 excess   psychological  baggage  and  restrictive   mental
 blinkers  associated  with narrow parochial  and  national
 thinking.  We should open up our minds to thinking  global
 as members of an enlightened world community.
 
 15.   We should be more sympathetic to the human tragedies
 that have occurred in many parts of the world today.   The
 pain,  misery and suffering caused by the horrors of  war,
 famine and natural disasters cannot be ignored.
 
 16.   The  international community can and indeed must  do
 much  more to assist in a concrete and tangible manner  to
 help  out the poor and the unfortunate of the world.   The
 developed  countries,  which  proclaim  themselves  to  be
 world leaders, and claim the high ground when it comes  to
 question   of   human  rights  and  justice   should   set
 themselves up as good and proper examples for the rest  of
 the world.
 
 17.   We  hope that through the good offices of  respected
 international  bodies such as the IASC,  the  message  for
 the  pressing need to foster a caring world community  can
 be   developed  and  a  clear  signal  sent  out  to   all
 countries.   In  this way, we shall be doing  our  bit  as
 responsible world citizens and help in the development  of
 a caring world community of nations.
 
 18.    I  thank  the  International  Association  of  Seed
 Crushers and the Malaysian Oil Palm Growers' Council  once
 again  for  inviting me to officiate  and  giving  me  the
 opportunity  to  share  my  thoughts  with  you.    I   am
 confident that this august gathering will succeed  in  its
 objective  of  promoting the interests  of  seed  crushers
 worldwide  and  spread the goodwill among the  peoples  of
 the world.

 19.   I now have much pleasure in declaring open the  68th
 World  Congress   of  the  International  Association   of
 Seed Crushers.