Oleh/By		:	DATO' SERI DR. 
			MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	THE REPUBLIC OF MOZAMBIQUE 
Tarikh/Date 	: 	29/07/98 
Tajuk/Title  	: 	THE STATE BANQUET ON THE OCCASION OF 
			THE OFFICIAL VISIT TO THE REPUBLIC 
			OF MOZAMBIQUE 



        I  would  like to express my sincere appreciation  for
  the  very warm welcome extended to members of my delegation
  and  I.   The spirited and sincere expression of friendship
  accorded   to  our  delegation  clearly  demonstrates   the
  closeness  of  the  relations that exist  between  our  two
  countries.
  
  2.    It  is  a privilege for me to be the first  Malaysian
  Prime  Minister to make an Official Visit to Mozambique  --
  and,  for  that matter, ever to a former Portuguese  colony
  in  Africa.  Besides reciprocating Your Excellency's  visit
  to  Malaysia last year, this visit is also to rekindle  the
  spirit  of  brotherliness  and  strengthen  our  bonds   of
  friendships.  It is also a manifestation of our  desire  to
  continue  to cooperate with Mozambique in good and  in  bad
  times.   Indeed,  we  have always  looked  upon  you  as  a
  friend,   sharing  your  sorrows  and  joys,  despite   the
  distance that separates us.
  
  3.    We have never been to your country before because you
  and   your  illustrious  predecessors,  Samora  Machel  and
  before  him Eduardo Mondlane, were abroad waging a  war  of
  liberation for their homeland.  This visit is also  to  pay
  tribute  to  their struggle.  We are today  delighted  that
  peace  and  reconciliation has now been firmly  established
  and  that  you  have  also been able  to  bring  remarkable
  economic recovery to Mozambique.
  
  4.    Last  year when Your Excellency visited our  country,
  we  were keen to participate and contribute in a small  way
  in  the reconstruction of your country.  The determination,
  expertise  and experience is still there.  But, today  they
  do not have the means to do so.
  
  5.    We regret very much that apart from just two or three
  companies,  the  others whom you have most warmly  welcomed
  and  encouraged  have  had the carpets  pulled  from  under
  their feet.  In fact, even in our country, our capacity  to
  invest and develop have diminished.
  
  6.     It  does  appear  that  for  the  rich  nations  the
  development  and prosperity of the countries of  the  South
  and South-South Cooperation are not welcome.
  
  7.    The West has found a new weapon to force us to submit
  to  them.   Indeed,  a  few countries  in  East  Asia  have
  already bowed  to forces which they could not resist.   The
  process to impoverish, if not to destroy, countries and  to
  put  a halt to South-South Cooperation is very simple. Gun-
  boats  are  no  longer necessary.  By simply devaluing  our
  currency, we can be forced to submit, a submission that  is
  no    different   from   that   following   conquest    and
  colonisation.
  
  8.    Malaysia's  sustained growth  of  eight  percent  per
  annum  has  today  been replaced by a  contraction  of  1.8
  percent.   Negative growth is the rule for  all  of  us  in
  East  Asia.  Malaysia's currency has been devalued by  some
  70  percent  and our stock market capitalisation  has  been
  reduced  to a third of its former strength.  The  so-called
  market  forces  now want to determine who should  lead  our
  countries.
  
  9.     I  have  mentioned  this  just  to  underscore   the
  seriousness  of  the  crisis  facing  Malaysia  and   other
  countries in East Asia.  The turmoil that the countries  of
  East  Asia face today is truly horrendous.  Perfectly  good
  well-managed  companies  are now hardly  able  to  survive.
  Those   with  investments  abroad  have  been   forced   to
  liquidate their foreign assets in order to bring  back  the
  money  to  sustain their domestic operations.  So  harassed
  are  they  that  they  failed  to  communicate  with  their
  Mozambican  counterparts their inability to  continue  with
  some projects.
  
  10.   But  we  are not about to give up.  We still  feel  a
  need to cooperate with the countries of the south.  We  may
  not  be  able to do much presently but we will continue  to
  look  to  the  day  when we can once  again  cooperate  and
  invest  in  foreign countries.  This explains why  a  large
  private sector delegation has accompanied me despite  their
  difficulties  at  home.   They want  to  look  beyond  this
  crisis  and  prepare themselves for their  return  to  this
  region to participate in your development.
  
  11.   While  we share many things in common, we,  in  fact,
  still  do  not  know each other well enough.   We  need  to
  discover  each  other so that we can aspire to  build  upon
  whatever  little strength we have for mutual  benefit.   It
  is  important  for  both  of  our  private  sectors  to  be
  familiar  with  each  other, to know  the  local  laws  and
  regulations   and   how  business  is  conducted   in   our
  respective  countries.  We also need to  be  familiar  with
  the  investment policy and legal framework.  This is  vital
  to   ensure  our  future  interaction  is  successful   and
  mutually beneficial.
  
  12.   No  less  important is the need to  remove  obstacles
  that  stand  in  the  way  of private  sector  interaction.
  Projects  cannot take off the ground if rules,  regulations
  and  policies  are not clear.  All these,  and  much  more,
  would  also have to be looked into if developing  countries
  are to embark on effective South-South Cooperation.
  
  13.   I  am particularly grateful that Your Excellency  has
  gone  out  of the way to accommodate the Malaysian  private
  sector.   I  am  confident that the temporary silence  that
  exists  between  our respective private  sectors  would  be
  over soon.
  
  14.   My  meeting with Your Excellency earlier this evening
  has  strengthened  my  conviction  that  both  our  private
  sectors  can still do things together.  We already  have  a
  joint  venture bank here and PETRONAS is also keen.   These
  two  ventures  would  be a catalyst  for  greater  business
  cooperation  and,  step-by-step  business  relations  would
  flourish.
  
  15.    Our   two   countries  are   in   the   process   of
  reconstruction:  Mozambique from the  ravages  of  war  and
  Malaysia  from  the devastation caused by an  unprecedented
  assault  on our economy.  We may be temporarily  down,  but
  we  are  certainly  not out.  Even weak  countries  working
  together  can  bolster each other's  strength.   Mozambique
  and   Malaysia  are  certainly  not  exactly  the   weakest
  economies in this world.  I strongly believe --  and  I  am
  sure   you   do   too  --  that  through   friendship   and
  cooperation, patience and unity, our two countries will  be
  able to recover and emerge even stronger.
  
  16.   I  wish  to  thank  you  once  again  for  your  warm
  hospitality and kind invitation to visit your  country.   I
  must  also  thank  the people of Mozambique  for  the  most
  heartwarming  welcome  to this land of  great  promise  and
  beauty.   I am convinced that Mozambique and Malaysia  have
  common   goals  and  we  can  together  push  forward   our
  relations into the next millennium with ardour.
  
  17.   On  this note, may I now propose a toast to the  good
  health  and  happiness  of my dear  friend  His  Excellency
  President Joaquim Alberto Chissano; to the continued  peace
  and  prosperity of the brotherly people of Mozambique,  and
  to the future which we can and will build together.