Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	SRI PERDANA, KUALA LUMPUR 
Tarikh/Date 	: 	09/09/96 
Tajuk/Title  	: 	THE OFFICIAL DINNER IN HONOUR OF 
			H.E. MR. VACLAV KLAUS PRIME 
			MINISTER OF THE CZECH REPUBLIC  


  
    1.    It  gives me great pleasure to extend to  Your
    Excellency and Madame Klausova as well as members of
    your delegation a very warm welcome to Malaysia.  My
    wife  and  I  are  particularly  delighted  by  your
    gracious  presence at this evening's  dinner.   This
    visit is a tangible and encouraging manifestation of
    the  close  and friendly relations between  our  two
    countries.  On our part, Malaysia remains  committed
    to  the intensification of relations with the  Czech
    Republic and trusts that the potentials which  exist
    could be further developed for the mutual benefit of
    our two countries.
    
    2.   There have been dramatic political and economic
    changes  in the countries of Central Eastern  Europe
    in the past decade.  The tasks, requiring a paradigm
    shift  for  both  the political leadership  and  the
    people, have seen major structural changes.   We  in
    Malaysia are highly impressed by the versatility and
    resilience of the Czech people in bringing about the
     many  positive  changes.  Under your  visionary  and
    pragmatic leadership, the Czech Republic has  indeed
    crossed  the  threshold and  emerged  as  a  stable,
    prosperous and confident country.  We note that  the
    Czech  Republic has achieved more in  the  last  few
    years than some of the established market economies.
    The  much coveted membership of the OECD into  which
    the  Czech  Republic  was  accepted  last  year   is
    testimony  of  the remarkable progress your  country
    has made.
    
    3.    Given  Malaysia's strong trading  orientation,
    the  Czech  Republic  is  an attractive  gateway  in
    Central Eastern Europe to further develop trade  and
    economic  ties  with the region as a  whole.   As  a
    member  of  CEFTA, Visegrad Four and as an associate
    member  of the European Union your country  is  well
    placed  to facilitate access for Malaysia's  exports
    not only in the newly emerging markets of the region
    but  also in the European Union.  Likewise, Malaysia
     could  provide  the  natural springboard  for  Czech
    businessmen  and  traders  to  venture   into   non-
    traditional  markets  in the ASEAN  and  East  Asian
    Region.
    
    4.    It  is  a  source of satisfaction  that  trade
    between our two countries, although small, has shown
    a  positive trend.  There are many possibilities for
    increasing  bilateral trade and economic cooperation
    as   we   share  similar  growth-oriented   economic
    policies   with   emphasis  on   privatisation   and
    manufacturing.  Malaysia is  now  beginning  to  set
    greater   focus  on  capital  intensive   and   high
    technology industries.  In this respect,  there  are
    abundant  opportunities  for  Malaysian  and   Czech
    businessmen to collaborate on a joint-venture basis.
    This  would  also  enhance our  competitiveness  and
    stand  us  in good stead to undertake joint ventures
    in third countries as well.
    
    5.    It  is  most heartening that Your Excellency's
     delegation   includes   representatives    of    the
    increasingly important Czech private sector.   Their
    contacts   with  the  Malaysian  counterparts   will
    stimulate  fresh interest for business  partnerships
    with  one  another.  The signing of  the  Investment
    Guarantee  Agreement this afternoon has provided  an
    additional  facility to promote long  term  business
    confidence,  trade and investment  between  Malaysia
    and the Czech Republic.
    
    6.    Cooperation in the tourism industry is another
    area  which  Malaysia and the Czech  Republic  could
    develop.  Interactions between ordinary people  will
    also  promote  better appreciation and understanding
    of Asian and European values.
    
    7.    On  the multilateral front, Malaysia  and  the
    Czech  Republic  share the common concern  that  new
    extraneous  issues are being imposed on  the  future
    programme  of  the  World Trade Organisation.   Such
    attempts   by   certain  developed   countries   are
     unfortunate.   Any  attempt  to  link  international
    trading  rules  with unrelated social and  political
    issues   would   place   severe   strains   on   the
    multilateral  trading system.  Such linkages  should
    be rejected.
    
    8.    Malaysia and the Czech Republic have also been
    showing common concern for the plight of the  people
    in  Bosnia- Herzegovina.  The Dayton Peace Agreement
    despite its fragility has brought peace and hope  to
    the  Bosnians.   Like  the Czech Republic,  Malaysia
    remains  committed  to the peace  process  and  will
    actively  contribute to the reconstruction  of  that
    war  torn  country.   In this  regard,  the  private
    sectors  from both our countries could also  jointly
    participate  and  contribute to  the  reconstruction
    efforts of Bosnia-Herzegovina.
    
    9.    The  future  outlook for  bilateral  relations
    between  Malaysia and the Czech Republic is positive
    and promising.  Our common perception on a number of
     global  issues and the rich potential  for  economic
    collaboration between our two countries, will  serve
    as  a  solid  basis for the deepening, consolidation
    and   enhancement  of  our  future   relations   and
    cooperation.