Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	LONDON 
Tarikh/Date 	: 	20/07/87 
Tajuk/Title  	: 	THE DINNER HOSTED BY THE HONOURABLE 
			MRS. MARGARET THATCHER PRIME 
			MINISTER OF THE UNITED KINGDOM 




 The Right Honourable Prime Minister
     Mrs. Margaret Thatcher;
Ladies and Gentlemen,
    Let  me begin by  congratulating  you  again  for  your
historic third consecutive victory in the general elections.
Your victory speaks clearly of your very able leadership.  I
have myself overcome some squalls.  I am happy to state that
we can now continue "to do business as usual", so to speak.
2.   I  am  a  frequent  visitor to London and yet find much
pleasure in making this first official visit to this capital
city with its various charms.  Members of my delegation,  no
doubt, are taking in avidly all that London has to offer.
3.   I  have  undertaken  this  visit  with a positive mind,
convinced that our bilateral relations could be raised  to a
level that would  do  justice  to the many ties that had
long  characterised relations between our two countries.  It
is  important  that  we  move  forward.   In developing  our
relations  let  us  add meaning to our efforts, substance to
our     initiatives and imagination to our approach.  Let us
tolerate  criticism  of  each  other, if  necessary  and yet
remain strong on the commonality of interest that binds us.
4.   For historical reasons, Britain has been  the  favoured
country  for  most Malaysians -- for education and training,
for technology, and for holidays to name some.   Ability  to
use  the  English  language  has become "de rigeur" for most
Malaysians.  The average Malaysian knows more about  Britain
than  the  average  Britons  do of Malaysia.  But structural
adjustments  taking  place  within  our  two  countries  and
influences  by competing external   factors   are   bringing
considerable  changes  to  all  those which we have hitherto
taken for granted.
5.   It has always been in the finest tradition  of  Britain
to    recognise  early  the  winds  of  change.   With  that
recognition  comes ability to adjust, anticipate and finally
participate  in the processes brought about by change.  This
is an invaluable  talent,  a  national genius; to have it is
to  be  able to survive and thrive.   Malaysia too has  been
honing  its reflexes to change.  We believe we have read the
signals     well.    The  falling  price of our commodities,
restrictive markets, volatile exchange rates, etc.  -  these
are  storm warnings that we must heed in order to effect the
proper responses.   Bilateral relations between Malaysia and
Britain must adapt well in these circumstances.   Sentiments
and  tried  old  ways are poor alternatives.  Malaysia would
like  to  look  at  Britain anew,  to  come  to  terms  with
Britain's new  priorities  and  to  gain  if  possible  from
effervescent new ideas that may be afoot in your industries.
Britain too  should do likewise to Malaysia.  Britain should
be more sensitive to Malaysia's needs and aspirations.
Prime Minister,
6.   The Malaysian Government does not want  to  look  back.
There  is little to gain from that.  In order to upgrade the
quality of  our  relationship,  Malaysia  and  Britain  must
provide the necessary  underpinnings.   In  this  respect, I
clearly see a proactive role for the private sector of  both
countries, as much as both governments must also contribute.
7.   The  economic  relations  between  Malaysia and Britain
must be the focus of both governments as well as the private
sector of both countries.  Ideally, the relationship  should
be a model of a mutually beneficial relationship between the
former colonial power and the independent country.  However,
30 years into independence there are still adjustments to be
made.    It  is  a  matter  of  concern for Malaysia that we
continue to experience a substantial deficit in terms of our
invisible  trade  with the United Kingdom.  The efforts made
by Malaysia to bring about a more favourable balance in this
respect have yet to bear fruit.
8.   It is imperative that we urgently rectify  the  problem
encountered  in  areas  of insurance, education, consultancy
and shipping.  These indeed are the  major  areas  in  which
Britain  can  play  a positive role towards achieving a more
equitable economic relationship.  It is in this context that
we  wish  to  see  Britain  diversifying  its  imports  from
Malaysia  rather than confining to importing only Malaysia's
primary commodities.  We also wish to  see  an  increase  in
British  investments in Malaysia especially now when we have
greatly liberalised conditions for foreign investments.
9.   Malaysia has accepted fully the priorities that Britain
has established for itself.  Britain's entry into the Common
Market, its special concerns over  East-West  relations  and
its  identification  with  the United States on some foreign
policy issues are in our view the prerogatives  of  Britain.
We do not question although we are mindful of the stalemated
positions  on  North-South  issues,  the  New  International
Economic Order, challenge to  multilateralism and a host  of
other  problems  of the developing countries.  There is much
disillusionment with the North for us in the South on  these
issues.  Developing countries like Malaysia cannot afford to
wait indefinitely for  deliverance.  This  has  impelled  us
towards  the  establishment of the South Commission to chart
out practical and  sustaining cooperations between countries
of the South. Still  it  will  be  well  for  the  world  to
remember that all countries are interdependent and the North
cannot really do without the South.
10.  It would seem  that  the  technological  break-throughs
that  have  fired  everyone's  imagination  are not only not
going  to  help  make  qualitative changes in the developing
world but may make the disparity  between  North  and  South
even  greater.  Not  having   the   expertise,    even   the
exploitation of  our  own  resources like petroleum gas will
mean added dependence on the developed countries, at a heavy
price. And new technology has of course reduced the need for
our  commodities even as they increase the production of the
same.
11.  Malaysia,  as  I  said  earlier,  is  honing  itself to
respond effectively to these new challenges.  We  have  been
buffetted  by  numerous economic storms and pressures in the
last few years.  The resulting setbacks have shocked us  out
of  our  complacent  view that growth is a function of time.
We now realise that wealth creation needs  entrepreneurship,
management skill and greater productivity.  It is because of
this  that we need to learn from the successful countries of
the East.
12.  Some people decry Malaysia's Look East Policy, accusing
Malaysians of forgetting old friends from the West.  We have
not forgotten.  One hundred thousand  students  studying  in
the  West  bear  testimony to that.   We have only about one
thousand students in Japan, Korea and Taiwan.   But we  need
to  learn  what  makes  these countries succeed in competing
with established industrialised countries if we are to enter
the fray ourselves.  It  is  the  work  ethics,   management
methods  and business  strategies that we are interested in.
Look East does not, I repeat, does not mean giving contracts
or buying goods exclusively  from  the  East.   I  hope  our
British friends, in both sectors, understand  the  objective
of Malaysia. Countries like Malaysia cannot afford to evolve
at the same pace as the developed countries in  their  early
days.  We have to programme ourselves for quantum leaps.  We
may  land  on  quite a few toes.  We hope we do not hurt too
much.  We hope our friends will understand why we do this.
Prime Minister,
13.  Notwithstanding the differing degrees of influence that
our two countries exercise in international  affairs,  I  am
happy  to  note  that  there are a number of issues where we
both  share  common  stands.    I  refer   specifically   to
Kampuchea,   Afghanistan,  the  problem  of  drug  abuse and
illicit trafficking, the European Commission's proposed levy
on vegetable oils and  fats  and  the  need  to  convene  an
International Conference on the Middle East.
14.  Of the above international issues, the proposed levy on
vegetable  oils  and  fats is certainly an area of immediate
concern  to  Malaysia.   Our  US$2 billion worth of palm oil
export  would  be  badly  affected  by  the  levy.   We  are
accordingly very appreciative of  the  crucial  role  played
by  Britain in preventing the passage of the  proposed  levy
at the recent EEC Summit.
15.  We  view  very  seriously  drug   abuse   and   illicit
trafficking.   Malaysia's  strong  role  at   the   recently
concluded conference in Vienna reflects our concern.  All of
us need to follow  up on the commitments given in Vienna. We
must collectively rid us of  this  menace. There has to be a
co-ordinated  effort  linking  the national programme to the
regional and the international.  I look forward  to  Britain
to play a prominent role in the Commonwealth forum, possibly
on  the  question  of  forfeiture,  so  that  all  of us can
benefit.
16.  Malaysia hold the view that the Commonwealth is still a
useful forum although personally I  feel  that  it  has  not
risen  to  the  occasion when it is most needed.  I refer to
the despicable policy of apartheid practiced  by  the  white
regime   in   South  Africa.    Malaysia  applied  sanctions
unilaterally against South Africa since  1965  and  we  have
lost billions of dollars as a result.  I cannot believe that
any  British  Prime  Minister  would  want  to see apartheid
perpetuated. Yet Britain is unwilling to apply  sanctions in
the  belief  that it will do the blacks more harm than good.
I don't think so.  Indeed, I feel that more than  any  other
member of the Commonwealth, Britain has a moral duty to join
the  majority  to  bring  about the end of minority rule and
apartheid in South Africa.
Prime Minister,
17.  I am happy indeed that discussions on  this  and  other
issues  have   been   conducted   frankly  between  our  two
countries. I think by now, both sides are used to the merits
of  plain  speaking.  Our discussions on bilateral issues in
particular  augur  well for the future  of  Malaysia-British
relations.  My delegation and I are very appreciative of the
warm welcome and generous hospitality extended to us  and  I
look forward to completing the programme of my visit which I
hope  will  help  pave  the  way  towards  better  bilateral
relations.
18.  Distinguished guests, ladies and gentlemen, may  I  now
invite  you  to join me in a toast to the good health of our
host, The Right Honourable Mrs Margaret Thatcher, the  Prime
Minister  of  the  United  Kingdom  and to the continued and
lasting friendship between Malaysia and the United Kingdom.