Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	KUALA LUMPUR 
Tarikh/Date 	: 	18/10/89 
Tajuk/Title  	:	THE OCCASION OF THE COMMONWEALTH 
			HEADS OF GOVERNMENT MEETING 




 Your Majesties;
Your Excellencies;
Distinguished Guests;
Ladies and Gentlemen.
    Let  me  begin  by  bidding you 'Selamat Datang'.  This
Malaysian greeting expresses much more  than  just  welcome.
It  conveys  the  warmth  and  happiness  that  we  feel  in
receiving you here in Kuala Lumpur.
2.   I am  happy  to  meet  old  friends  and  to  make  new
acquaintances.  We  are all, I am sure, delighted to welcome
Prime Minister Benazir Bhutto, whose presence here today  is
really  a  sort  of a homecoming.  Pakistan's return to this
family of nations will no doubt enrich  our  discussion  and
help strengthen Commonwealth collective action.
3.   I  would  also like to take this opportunity, on behalf
of all of us, to thank Prime   Minister    Brian    Mulroney
for   his stewardship at our last gathering in Vancouver and
for  the unforgettable hospitality of the Canadians.  I know
that Prime Minister Mulroney as past Chairman, will  have  a
valuable contribution to make.
Your Majesties, Excellencies, Ladies and Gentlemen,
4.   Malaysia,  situated at the crossroads between China and
India, East and West, has for centuries been a meeting place
for peoples and cultures.  We carry this tradition today  as
we now play host to the leaders of the Commonwealth.
5.   Although  we  have  been  trading  with the rest of the
world for over a thousand  years, we had never  participated
much  in  international affairs.   But since independence we
have been forced out of our cocoon by international economic
and political pressures.  If we do not go out to protect our
interests no one  will  protect  us.  Hence  our  increasing
participation in multilateral organisations. The hosting  of
this  Meeting is  a part  of that  need  to  interact and to
protect ourselves.
6.   The Kuala Lumpur Commonwealth Conference is timely  and
relevant.  Developments in relations between the superpowers
promise,  for the first time since the war, a broadbased and
unprecedented agenda for political and economic cooperation.
Less heartening  is  that we enter the next decade with  the
economic  issues  of  the eighties unresolved.  And, equally
disheartening, Apartheid is still with us.
7.   These trends and circumstances provide  challenges  and
opportunities   which  demand  new  responses  from us.  The
Commonwealth, if it is to remain relevant, must provide some
of  the  answers.  The Kuala Lumpur Conference, I hope, will
give us the opportunity to look for them.
8.   There is some momentum towards superpower detente.   We
cannot  assume  that  as they resolve their differences, our
interests, especially those of the  developing  world,  will
not  be sacrificed.  We must be mindful of this.  We must be
able to forecast and to pre-empt.  Peace will carry a  cost.
That cost must be equitably shared.
9.   In  West  Asia  ceasefire arrangements are now in place
which, hopefully, will lead to an end  to  bloodshed.    The
Palestinians  continue  to  be  deprived  of their homeland.
Israeli  security  may  be  important  but  surely  we  must
consider  also  the  security of its neighbours and the fate
of the Palestinians.  State terrorism as practised by Israel
is  as  despicable  as  any  kind of terrorism and  must  be
stopped. There cannot be peace and security without justice.
10.  The  situation  in  Afghanistan  is   far  from   being
resolved.  Afghans  in  their  thousands continue to live in
refugee camps. The Paris Conference on  Cambodia  failed  to
achieve  a  comprehensive  political  settlement.  We   must
continue our efforts to resolve the Cambodian problem before
it degenerates into another bloody civil war.
11.  Of particular interest to us here is the  situation  in
Southern Africa where our efforts need to be stepped up.  We
are  agreed  that Apartheid must be eliminated.  The correct
signal must be sent to the racist regime  in  South  Africa.
Sanctions  work.   Do not be deluded into believing that the
small  changes  we  are  seeing  there  is  due  to a sudden
flowering of humanitarian feelings. Concern for  the  effect         of
sanctions   on  the   blacks  is  misplaced.   Consequently,
sanctions  must  not  only  continue  but must be escalated.
Investments and financial flows to racist South Africa  must
be completely stopped.
12.  We  all  know that the independence plan for Namibia is
partly at least the result of sanctions.  We also know  that
control  over  Namibia  will be  grudgingly surrendered, and
every opportunity  exploited to frustrate the implementation
of the plan.
13.  We   must  be  vigilant  that   recent  developments in
Southern  Africa  do  not  obscure  the  central  issues  of
Apartheid. We  must not  allow the racist Pretoria regime to
deflect us. The  establishment  of a  democratic, truly non-
racial,  unitary  and  representative  government  in  South
Africa  must   remain   the   principal  objective  of   the
Commonwealth.  We must not think  of settling  old   scores.
Whites, blacks  and  coloured   must live together in amity.
Your Majesties, Excellencies, Ladies and Gentlemen,
14.  There   may  because  for  hope  and encouragement with
regard to the global political scene, but the world economic
trends  are  not so propitious.  While  nearly  all  of  the
developed countries still manage modest growth, many of  the
developing  countries  are  experiencing  stagnation  if not
negative  growth.  The rich countries have apparently ganged
up against the poor. They have arrogated  to themselves  the
right to direct world trade and to manipulate currencies  to
their advantage.  Subsidies, quotas,  tariff  and non-tariff
barriers  by  the  rich  have  distorted  costs and supplies
worldwide. Now environment and human rights  are to  be used
to hamper economic development in the developing countries.
15.  On the question of poverty, especially in  Africa,  our
response cannot simply be assistance alone.  The linkages of
poverty  to debt and trade -- and even to the environment --
must be recognised and addressed.
16.  The debt  burden  of  the  poor is getting heavier.  An
unacceptably  high  percentage  of  their  GNP  is  spent to
service debts, resulting  in a  reversal of the  net flow of
funds  between the rich and the poor.   For the poorest  the
situation is hopeless.
17.  The  African  debt  problem continues to deteriorate --
largely unnoticed.   Part of Africa's problem  is  that  the
countries  concerned  simply  do  not  owe  enough to pose a
threat to the international financial system.    Hence,  the
scant attention to African debts.
18.  What  we  need  is a bold financial initiative.  Such a
plan would have to recognise that existing debts, public and
private, are not  worth  their  full  value  and  that  most
African  debtors cannot sustain full debt-servicing.  Making
debt-slaves  of  whole  nations  is worse  than  the inhuman
practice of debt-slavery  in  the  past. Those  who can must
pay, but  consideration  must  be  given  to those who truly
cannot.
19.  Yet  another dimension of the problem is the increasing
attempt by the G-7 to interfere decisively in the management
of the global financial and trading system.  Their decisions
to realign currencies have not only  severely  affected  the
debt-servicing  burden  of developing countries but also the
resource flows and their growth prospects.
20.  Problems of debt and poverty cannot be  overcome  while
significant  disparity  exists  between  the economic growth
rates  of  the  developed  and  the  developing   countries.
Developing  countries  need  better  access to  markets  and
a greater flow of  foreign investments not only for economic
growth  but  also to provide them the means and the capacity
to service their debts.
21.  For world trade to grow, the principles of an open  and
fair  multilateral  trading  and  payment  systems  must  be
upheld.   While  we  try  to  reduce  tariff  barriers,  and
stimulate   global  trade,  we  are  now   threatened  by  a
discernable  increase  in  non-tariff  barriers.    Further,
the focus has  shifted  from  "free trade"  to "fair trade".
Industrialised   countries   are    increasingly   demanding
reciprocity  even  as  they  deny  the  developing countries
tariff concessions  and  preferential treatment.
22.  This  is  evident  in  the current Uruguay Round of the
MTN.  Pious pronouncements have been made on interdependence
and   the  importance   of  multilateralism.  But  they  are
contradicted  by  the  actions  of  those   who  make  them.
Bilateralism  and  regionalism  are being allowed to gain at
the expense of an open multilateral trading system.
Your Majesties, Excellencies, Ladies and Gentlemen,
23.  The  environment  is  now  a matter of grave concern to
everyone including the developing countries. The degradation
of  the environment can no  longer  be  ignored  and  urgent
solutions  must  be  found.  Unfortunately,  many  developed
countries seem intent on  laying  the blame for the  world's
environmental problems on the developing countries.  Yet  by
any  measure,  it is the developed countries which have most
assailed our environment.  Nuclear testing, excessive use of
fossil fuels, private transportation, release  of  CFC  into
the  atmosphere,  massive  wastage  of paper, toxic chemical
disposal; all these and more are the direct  result  of  the
life style of the rich.
24.  Poverty,  of  course, contributes towards environmental
decline,  but  it  is  only  because  the  poor cannot  help
themselves. If  they  are denied the few resources they have        ,
they are going to become poorer and would cause even greater
environmental degradation.  On the other   hand,   the  rich
can  afford  not  only to reduce their waste generating life
style  but  can  expand  more  on   reafforestation  of  the
agricultural land they had wrested from their forests.  With
their  technology  and  their  wealth they can actually make
millions of acres of desert bloom.
25.  Unfortunately the line taken by environmentalists is to
lay the blame on poor countries and seek to  force  them  to
slow-down their development in the interest of restoring the
environment  which  the  rich had polluted.  Even World Bank
loans are  now  to  be  made  conditional upon environmental
consideration.
26.  We agree that concerted international effort is needed.
The  Commonwealth  can  help  by  bringing  some  sanity and
balance to the current debate.  We all must share the burden
of keeping  our  environment  livable, but, the sharing must
be fair and in accord with the means at the disposal of each
of us.  The  poor  must  not be made to pay for the past and
present sins of the rich.
27.  Another problem which  transcends  national  boundaries
and  which  requires  a global approach is the drug problem.
Malaysia makes no apology for the severity of our punishment
for drug traffickers.   We see today how  very  serious  the
problem can become.  Whole Governments are being threatened,
subverted and corrupted by the drug traffickers.  Alone many
nations  may just     go    under.  Only   a   combined  and
coordinated anti drug trafficking war by  the  international
community  can  hope  to  defeat  this  evil  and   prop  up
Governments against the  violent assaults by  the  merchants
of death. An  all-out  global war must be waged with all the
money and forces at our disposal.  The cost will be high but
the price we will have to pay if  the  drug  menace  spreads
will  be  far higher.  We are seeing this now.  Extradition,
confiscation  of  all  proceeds  from  drug trafficking  and
severe  punishment for  traffickers must be universal. It is
the laxity of some nations which has caused the  drug  habit
to  spread.    Remember  that along with the drug habit will
come AIDS.   Those  who  advocate  leniency  are  guilty  of
spreading AIDS as well.  We must act now.
Your Majesties, Excellencies, Ladies and Gentlemen,
28.  In keeping with custom, Her Majesty Queen Elizabeth, as
Head  of  the Commonwealth, is in Malaysia during the course
of the Conference.  Malaysia, as host, would like  to  thank
Her  Majesty   for  her  gracious  presence.  The  Malaysian
Government  and the people of Malaysia are greatly  honoured
by her  acceptance  of  our invitation to make a state visit
to  Malaysia immediately before the Conference.  She has won
the  hearts of everyone of us by her friendliness and charm.
Her Majesty's presence makes the Commonwealth that much more
cohesive  and  meaningful.  We wish her good health and long
may she reign.
29.  In conclusion, let me state that the relationship which
binds the Commonwealth together can be enormously rewarding.
There is much that we can do for  each  other  and  for  the
world if we set our mind to it and we act.
30.  Malaysia  in  a  way has rediscovered the Commonwealth.
We admit that we were at one time disenchanted.   But in  an
increasingly  interdependent world the Commonwealth provides
an  important  forum  for  the   discussion  and   even  the
settlement of  some  international  problems.  We also see a
role for ourselves in  the Commonwealth, small though it may
be.  We  pray and hope that the Commonwealth will,  in  this
era of rapid and radical change, live up to the expectations
of  its  members.  We  hope  the  Kuala Lumpur  Commonwealth
Conference will contribute towards this end.
31.  Once  again, I bid you welcome to Malaysia.  We will do
our best to make your stay comfortable.