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Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	HOTEL ISTANA, KUALA LUMPUR 
Tarikh/Date 	: 	08/01/96 
Tajuk/Title  	: 	THE SECOND PACIFIC DIALOGUE 



          When  I  was given the honour of addressing the first
    Pacific  Dialogue in Penang fourteen months ago, I spoke  of
    some  of  the achievements and aspirations of Malaysia,  and
    the  continued contribution that we sought from our  friends
    abroad  to  realise our dream of becoming a fully  developed
    nation.
    
    2.   I also called for a common endeavour to foster a single
    global  commonwealth founded on the principle of cooperative
    prosperity.  Everyone should work together to make  everyone
    prosper.   Throw out beggar-thy-neighbour policies.   Adopt,
    instead, prosper-thy-neighbour policies.
    
    3.    I  urged  too, the full participation of  America  and
    Europe,   indeed  of  all  the  world,  in  the   phenomenal
    development that is sweeping East Asia.  We want all of  the
    world to come to East Asia, so that they might prosper.   So
    that we will prosper.
    
    4.    Finally,  I called for much more mutual understanding,
    mutual   appreciation   and  mutual   regard   between   our
    civilisations, cultures and peoples.  We have much to  learn
    from  each  other.  We must take the best that each  has  to
    offer   the   other.   Instead   of  a   barren   clash   of
    civilisations,   we  should  have  a  bounteous   feast   of
    civilisations.
    
    5.    Today , I propose to dwell on just one general  theme:
    how  we  can  together  build  a  less  fractious  and  more
    cooperatively prosperous region.  That I should choose  such
    a theme might seem somewhat odd and misplaced to some of us.
    Indeed,  not  for a hundred years has the Pacific  known  so
    much  peace, and never in its entire history has it  enjoyed
    this much prosperity.
    
    6.    We  spent much of this century as well as the last  at
    war  and in strife.  If not between us, then within our  own
    borders.   Some   of  us   were  colonies   for   centuries.
    Incidentally, we were not seen to be fit for democracy then.
    Authoritarianism and totalitarianism were imposed on many of
    us  by  very  civilised democracies.  Very much in  the  way
    perhaps as that great thinker, Thomas Jefferson, could  work
    so  diligently on "the rights of man" in his  study  --  and
    then  proceed  to  the front lawn to have tea  and  crumpets
    served  by  servants  who had no such  rights,  to  gaze  in
    contentment   and  perhaps  admiration  at  the   remarkable
    industriousness of the slaves in the field.
    
    7.    Some of the more advanced economies of the world  were
    situated  in our region, but the large majority of  us  were
    poor, terribly, wretchedly and desperately poor.
    
    8.   Today, the guns are for the most part silent.  No shots
    are  being fired across borders.  All states are essentially
    at  peace.  Limited armed conflict afflicts only four of our
    countries.
    
    9.    The improvement in our material welfare has been  even
    more  dramatic.  In 1990 the East Asian states had only  180
    million  absolute poor compared to 400 million  two  decades
    earlier;  this  despite an increase  in  population  of  425
    million   during  the  period.   Many  of  us  tripled   and
    quadrupled our real incomes in the last thirty years, a feat
    unprecedented  and  unmatched by any  other  region  in  the
    world.  Or by any other experience in history.
    
    10.   Several  more among us, who recently embarked  on  the
    road to productive economic reform, are poised to take wing.
    
    11.   East Asia as a whole grew annually at an average  rate
    of  7.5  percent this decade; North America by 2.7  percent,
    equal to the global average.  The three largest economies in
    the  world  in purchasing power parity terms --  the  United
    States,  Japan and China -- are in the Pacific.  We  in  the
    Pacific produce more than half the world output of goods and
    services.
    
    12.  There are some who think that the dynamism of East Asia
    will  be short-lived.  Many, however, predict that East Asia
    will  continue  to  grow  at a rapid  pace  even  if  growth
    slackens as its economies begin to mature one after another.
    I am one of these many optimists.
    
    13.   Many more millions will be rescued from poverty, and a
    whole   billion   will   have  their   economic   livelihood
    dramatically  improved.   Over the next  twenty-five  years,
    unless  something  remarkably wrong happens,  very  probably
    seven  of  the  top  ten economies will be  located  in  our
    region.
    
    14.   Apparently therefore, we are doing well. Why then do I
    think  that  we  should dwell on the need to foster  a  less
    contentious and more cooperatively prosperous environment in
    the  region?  The reason of course, is that what is good can
    be improved and all is not quite well in the Pacific.
    
    15.  Peace with security, true peace, I believe, must be our
    ultimate objective in the region.  It must be a secure peace
    which reposes in the human person, reigns in every home  and
    community, and washes on every Pacific shore.  It is such  a
    vision  of  peace and security, comprehensive and inclusive,
    enduring and resilient; that must be our guide.
    
    16.   To foster this peace will not be easy for quite a  few
    of  us.   It is a peace that will have to be built  by  many
    hands,  and  some  will be stronger and  more  capable  than
    others.   It must be cultivated in many different political,
    social,  economic and cultural environments,  some  of  them
    quite  daunting.  And as is often the case, the burden  will
    lie most heavily on those least able to bear it.
    
    17.  To shore up our resilience we will need to continue our
    fight  against poverty.  We must create jobs, raise  incomes
    and  distribute our wealth more equitably.  We must tend  to
    political grievances and remedy social ills.  Stability will
    need to rest on something more durable and less intimidating
    than the point of a gun.
    
    18.   We  in  the Pacific have the distinction of being  the
    world's largest producer and consumer of narcotics.  In 1993
    we  contributed  half  the global  output.   Everywhere  the
    problem is getting worse, not better.  We must prevent drugs
    -  and disease -from gnawing at the vitals of our societies.
    We  must  also rid our city streets of excessive crime,  and
    render safe our neighbourhoods.
    
    19.   As  I said earlier, the responsibility for tending  to
    these  matters rests largely with the respective governments
    and  peoples themselves.  It is preposterous for  anyone  to
    believe that the afflicted do not want or are less committed
    to  finding the remedies than the well wishers.   But  in  a
    rapidly  globalising and interdependent world there is  much
    that  we  can - and indeed must - do to help each  other  as
    well.
    
    20.   There is a tendency among the richer countries of  the
    region and industrial countries elsewhere to view the growth
    of  the  East  Asian  economies with  some  nervousness  and
    disquiet.   There  is  apprehension regarding  the  loss  of
    competitive  edge  and the erosion of economic  primacy.   A
    shift in the balance of power is dreaded.
    
    21.   Such a situation provides rich breeding ground for old
    fears   that  draw  sustenance  from  racial  and   cultural
    prejudice and past conflicts.  It is tempting then to  think
    of  various devices to contain or complicate the  growth  of
    these economies.  We seek out all the ways in which they are
    ostensibly  competing unfairly against us.   We  demand  the
    speedy  dismantling of all protective measures.   We  ignore
    the  fact that although open and free trade would be in  the
    best  interests  of all, in the immediate term  fragile  and
    emergent  economies may need to protect some  of  their  key
    industries because their capacity to compete even on a level
    playing  field  is  weak.   We exert  pressures  and  impose
    sanctions of various kinds when they are unable to oblige.
    
    22.   If  we  were  asked,  what are  the  primary  external
    security issues confronting the region at present, we  would
    without  hesitation  point  to  the  Korean  peninsula,  the
    Straits  issue,  and the South China Sea as among  the  most
    prominent.   Few people I think, would disagree  with  this.
    But  if  we reflect upon the major issues that are  creating
    tension  in  the Pacific, we cannot but point  also  to  the
    disputes over trade and market access, and pressures exerted
    in  the name of human rights and the environment and through
    social  clauses.  On two occasions in the last twelve months
    the world watched with bated breadth as trade wars involving
    some  of the world's most powerful economies seemed imminent
    and unavoidable.
    
    23.   It  must surely be tellingly clear to all of  us  that
    this  manner of handling economic and security relations  in
    the  region benefits none and hurts all concerned.  The best
    assurance  for  sustainable security in the developing  East
    Asian  countries  and in the larger Pacific  region  is  the
    healthy growth of their economies.
    
    24.  It is no secret for instance that Malaysia's success in
    overcoming insurgency and preserving harmony is to  a  large
    measure due to its rapid  and sustained development  and the
    more  equitable distribution of its wealth.  Poverty  breeds
    discontent and unrest, and unstable states impact negatively
    upon our welfare in many ways.
         
    25.  It is in our interest therefore to promote the economic
    foundations  of  security in the region.  But  the  benefits
    also  go  beyond this.  If the emancipation of the  greatest
    number  of  humanity is truly our objective, we should  want
    every  country and especially the poorer ones,  to  prosper.
    If  democracy  and human rights are really our  concern,  we
    would  promote  development in every society, for  democracy
    and   human   rights   flourish  best  when   the   economic
    circumstances are most conducive.
    
    26.   The  most persuasively powerful reason for  prospering
    our regional partners however, is our own economic interest.
    We  are witnessing the greatest transformation in history in
    East  Asia  now. Far from being a threat and challenge,  the
    developing  and reforming Pacific economies  in  fact  offer
    unparalleled  opportunities  for  business  and  investment.
    Some of the world's biggest and fastest growing markets  for
    the  products of the industrial countries are in East  Asia.
    As  millions of Asians accumulate greater purchasing  power,
    their  demand for consumer goods and services will multiply.
    Under these circumstances the economies best placed to  reap
    the  greatest  benefit are in fact those  of  the  developed
    world.   They  have  the resources and the  technology.   It
    would  be  a  grievous  mistake  indeed  if  we  failed   to
    appreciate this and chose instead to ignore Asia.  Or worse,
    if  we  opted  to we can take the path of confrontation  and
    containment.
    
    27.   Economics transform many things.  Systemic changes  in
    the  way  we secure our own good and produce our  goods  and
    services  have  over  time led to  changes  in  the  way  we
    organise  our  societies,  manage  our  politics  and  order
    relations  between communities and states.  In this  regard,
    where  once we were less dependent upon external  trade  and
    markets,  our economies are now increasingly and irrevocably
    intertwined.   Here in the Pacific fully 70 percent  of  our
    total  trade  is  with each other.  Trade among  East  Asian
    economies has grown very rapidly and stood at 49 percent  of
    our  global trade last year compared to 37 percent just five
    years before.
    
    28.   This situation requires a new approach to security. It
    has  to be one in which there are no foes, only partners  in
    search  of mutual peace and shared prosperity.  When we  arm
    ourselves, it should only be for legitimate defence and  law
    enforcement  and  even  then to  the  minimum  required  for
    effective deterrence.
    
    29.   In this regard, I think we in the Pacific must address
    the  issue of arms control more seriously.  We spent no less
    than  US$470 billion on arms in 1993.  This is close to  the
    entire  GDP  of all the seven ASEAN countries in  purchasing
    power  parity  terms.  We have the world's biggest  military
    powers  and largest military spenders in our midst.  Without
    prejudice  to their legitimate national, regional or  global
    security  interests, surely more can be done to  reduce  the
    weapons  in their possession.  And much more can be done  to
    limit the invention, development and perfection of ever more
    sophisticated weapons of destruction.
    
    30.   By the same token, we should recognise that there  are
    states  in  the  region  whose  military  capabilities   are
    relatively  low  and  quite  inadequate  to  satisfy   their
    legitimate security needs.  We cannot deny these states  the
    right  to enhance their capabilities.  But the hard  selling
    of more and more sophisticated arms to one will only lead to
    the  others wanting to be similarly equipped.  They are then
    blamed  for  indulging in an arms race, while the activities
    of the arms-dealing nations are regarded as blameless.
    
    31.   I  feel  I  must  dwell, if only briefly  and  however
    uncomfortably, on the subject of nuclear weapons.  Three  of
    the  five  declared nuclear powers are in  the  Pacific.   A
    fourth tests here.  There could also be nuclear ambitions on
    the part of some regional states.  This region more than any
    other  therefore  needs to implement the provisions  of  the
    Nuclear Non-proliferation Treaty more vigorously.  And  this
    region must observe the Test ban and go on to outlaw nuclear
    arms altogether.  Present technology  should  enable  us  to
    monitor effectively.  We have  banned  chemical weapons, the
    manufacture of which  is  much  more difficult to detect.
    
    32.   But  we are now indeed making some tangible  progress.
    Two  of  our  sub-regions - the South Pacific and  Southeast
    Asia  -  are  now under nuclear weapons free  zone  regimes,
    however modest these regimes may be.
    
    33.   Let  me  conclude  by  underlining just a  few  of the
    principles which I think are absolutely indispensable if  we
    seek  to  strengthen  the foundations of  mutual  peace  and
    prosperity in the Pacific.
    
    34.   First among these principles, in my view, would be the
    highest welfare of the human society and its members.   When
    all  is said and done, this is the most profound concern  of
    state, society and religion.
    
    35.   Next  is mutual respect; the respect that is  due  for
    each  other's  values, cultures, aspirations and  abilities.
    They  are  no  less meaningful and important merely  because
    they are not our own.
    
    36.   I would also mention equality; the equality of nations
    large  and  small,  powerful and weak.  It  is  amazing  how
    quickly  we discard this most basic of democratic principles
    when  we  turn  from domestic societies and operate  in  the
    society of nations.
    
    37.   A  commitment to peace and peaceful means must  surely
    also  underpin our efforts to build security and  to  manage
    our differences.
    
    38.   Given our interdependence, cooperation and mutual help
    will   also   rank  as  one  of  the  important  principles.
    Unilateralism has become a less productive option, even  for
    the more powerful.
         
    39.  Lastly, is the principle of integrity; the integrity to
    abide  by  the  very values, norms and principles  which  we
    profess and declare and expect others to live by.
    
    40.  Let us be true to ourselves and the best traditions  of
    our society.  I pray that we will not fail in responding  to
    the immense promise of the future. 
 

 



 
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