Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	HILTON HOTEL, KUALA LUMPUR 
Tarikh/Date 	: 	18/09/84 
Tajuk/Title  	: 	THE INAUGURAL DINNER OF THE 
			MALAYSIAN-BRITISH SOCIETY 




 Yang Amat Berbahagia Tun Ismail Ali, President of the Malaysian-British
Society; His Excellency Lord Richardson, President of the
British-Malaysian Society; Distinguished guests; Ladies and gentlemen.

My wife and I are delighted to be present here this evening at the
Inaugural Dinner of the Malaysian-British Society and to join members of
the Society in welcoming members of the British-Malaysian Society who are
also here for this occasion together with their President. Although the
twin societies are formed 27 years after Malaysia's independence I still
feel that congratulations are in order.

The two societies will no doubt help in building better understanding and
friendship between the two countries and peoples. There is much to be
gained by both sides from understanding each other and generating friendly
relations.

2. When I accepted a dinner invitation by Mrs. Thatcher during a private
visit to Britain in March 1983, I did not think that it would lead to
anything substantial. However, I found the British Prime Minister was
sincere in her desire for better relations with Malaysia. The least that
Malaysia could do is to reciprocate. So when I was asked what I thought
about the setting up of the British-Malaysian and Malaysian-British
Societies, I was happy to give the idea my support.

3. The setting up of these societies reflects, it seems to me, the concern
of the community both in Malaysia and Britain, particularly those who have
business dealings in each other's country, for the promotion of close and
harmonious relations between the two countries. I would therefore commend
this private sector initiative and fully support the objectives of the two
Societies. I did persuade Tun Ismail to head the Malaysian body when he
consulted me on the proposal to set it up, since I knew that he has many
friends in the City of London. I am not sure whether it was by design or
sheer coincidence that both Societies are headed by former Central Bank
Governors. As you know, both Tun Ismail and Lord Richardson are men of few
words, but they have established a reputation for getting things done.

I am confident that under their leadership and guidance, the two Societies
will play a dynamic role in fostering friendship and promoting better
cultural, educational, economic and trade relations between Malaysia and
Britain.

4. It is heartening to learn that meetings were held yesterday between
members of both Societies and the General Councils. I understand the
discussions were frank and fruitful, and areas of cooperation including
investment opportunities, training and transfer of technology had been
examined and programmes were outlined for future action.

Ladies and Gentlemen, 

5. Malaysia welcomes Britain's growing interest in Malaysia as shown by
the number of visits made by British leaders and personalities in the past
year. Last October we had the occasion to welcome Lord Jellicoe, Chairman
of the British Board of Trade. We also met His Royal Highness The Duke of
Edinburgh who visited Kuala Lumpur late last year in his capacity as
President of The World Wildlife Fund. Mr. Richardson, the Minister of
State for Foreign and Commonwealth Affairs, arrived in February this year
for discussions on various issues of mutual interest with our
leaders. Mr. Kenneth Baker, Minister of State for Industry and Technology
Information, Lord Bellwin, Minister of State for Environment and Admiral
Sir William Stavely paid official visits to Malaysia and had wide-ranging
discussions with their counterparts on specific fields of
cooperation. Just over a week ago, Mr. Edward Heath was in Kuala Lumpur
for a short visit. Mrs. Thatcher would have been with us tonight but for
the unfortunate problems that require her presence in Britain. These
contacts and consultations augur well for bilateral cooperation both for
now and the future. The continuance of such contacts should serve to
further consolidate the close ties between our two countries.

6. Malaysia has benefitted greatly from the assistance given by the
British Government, particularly in the field of technology and industrial
cooperation. Britain is today one of Malaysia's largest sources of capital
investment inflow into our manufacturing sector, ranking second only to
Singapore.

Ladies and Gentlemen,

7. We appreciate the steps that have been taken to alleviate the hardships
faced by our students in the United Kingdom and we welcome the move by the
British Government and private institutions, to provide scholarships and
awards in various fields at both graduate and post-graduate levels.

It is with great interest too, that I note the initiative taken by both
sides to develop strong ties between our respective colleges and
universities. The Brighton Polytechnic and the University of Sussex,
together with the University of Malaya, Universiti Teknologi Malaysia and
the Institut Teknologi MARA are involved in this effort. We will need more
such ties in the future as Malaysia intends to reduce the burden of other
countries for unversity places by conducting the first and second year
courses as well as pre-university training within the country. Foreign
associated universities could then provide teachers and recognise the
courses.

8. While I am happy to recognise the positive contributions of the British
Government as well as the business community towards meeting the
aspirations of the New Economic Policy, I learn with regret that there has
been very little change in Malaysia's share of the British market for many
years. Britain ranks only as the sixth largest trading partner amounting
to about 3% of Malaysia's total trade compared with nearly 8% ten years
ago. Similarly the importance of Malaysia as Britain's trading partner has
also declined over the years, with Malaysia accounting for less than 0.5%
of Britain's total trade compared with 5% a decade ago. I am deeply
concerned about this state of affairs, bearing in mind that the balance of
trade with Britain has never been in our favour.

9. You will no doubt agree with me that we must not allow such a situation
to persist, for if it continues, it will only negate all the efforts we
have put in together to consolidate and strengthen our relations. The
sooner we find a solution to the problem of trade imbalance, the sooner
can we concentrate on other areas of cooperation. I hope that both
Societies will give this important issue due consideration in their future
deliberations.

10. Lastly on behalf of my wife, I would like to thank the President,
General Council and members of the Malaysian-British Society for inviting
us to this very special occasion. I now have great pleasure in formally
inaugurating the Malaysian-British Society, and wish it well in its
efforts to promote better relations between Malaysia and Britain.

Thank you.