Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	SRI PERDANA, KUALA LUMPUR 
Tarikh/Date 	: 	21/04/97 
Tajuk/Title  	: 	THE DINNER IN HONOUR OF H.E. 
			GYULA HORN PRIME MINISTER OF THE 
			REPUBLIC OF HUNGARY 



   1.  I  am   indeed  pleased to  welcome  Your  Excellency,
  Madam   Anna  Horn  and  the  members  of  the   Hungarian
  delegation   to  Malaysia.   This  official  visit   which
  includes  Cabinet  Ministers, senior  officials  and  some
  members of the private sector is a clear demonstration  of
  the dynamism in our bilateral relations.

  2.   Malaysians   recall   clearly  the   visit   of   His
  Excellency  Dr. Arpad Goncz, President of the Republic  of
  Hungary  to Malaysia in 1992.  I had also made an official
  visit  to  your beautiful country in 1987.   These  visits
  and  those  of other leading personalities from  both  our
  countries have provided us the opportunity to get to  know
  each  other  better.   Our two countries  have  also  been
  holding exploratory discussions on various areas in  which
  we can collaborate.

  3.   The    Agreement   on   Scientific   and    Technical
  Cooperation  and  the  Memorandum of  Understanding  (MOU)
  pertaining  to  the Promotion of Trade  that  were  signed
  today  will  broaden further the scope  of  our  bilateral
  cooperation.  Malaysia and Hungary have previously  signed
  other   agreements.   Taken  together,  these   agreements
  provide  a good framework for trade, economic cooperation,
  research and development and tourism.

  4.  Our  two  countries  have also recognised the need  to
  foster  closer  contacts  between our  respective  private
  sectors.    Such  contacts would encourage them  to  seize
  the  opportunities to exploit the vast business potentials
  that  exist  in our two countries and in third  countries.
  I  am  confident that the complementarity that  exists  in
  our  two  economies  will result in  good  private  sector
  networking.

  5.   Hungary's   highly     developed    industrial    and
  technological  capacity  is not well  known  enough  among
  Malaysian industrialists.  In this respect, we would  like
  to  encourage  Hungary  to hold exhibitions  and  seminars
  like  the  one that is being currently held in conjunction
  with  this  visit.   This  would  serve  to  broaden   the
  knowledge   of   Malaysian   industrialists   and    other
  entrepreneurs  and  enable  them  to  identify  areas  for
  possible joint-ventures.

  6.  Hungarian  investors  are warmly welcomed in  Malaysia
  to  participate in our national development  projects  and
  in  the manufacturing sector.  There is scope for Malaysia
  to   use   Hungarian  expertise,  particularly   in   high
  technology   relating  to  the  production  of  machinery,
  railway  engineering, power transmission lines and timber-
  based products.

  7.  Malaysia  which  is strategically located in the  fast
  growing  East  Asia  region can  be  used  as  a  base  by
  Hungarian businesses interested in gaining access to  this
  lucrative  market.   On  our part,  we  will  continue  to
  encourage  our  entrepreneurs to participate  in  economic
  projects  in  Hungary particularly those  related  to  its
  privatisation.    Malaysian  companies  could   also   use
  Hungary  as a distribution centre for some of our products
  for the Eastern-Central Europe region.

  8.   The  total  trade  between Malaysia  and  Hungary  is
  still  very small, amounting to US$62.8 million last year.
  Greater  efforts  have to be made towards  increasing  the
  total  volume and the diversity of our trade.  It is noted
  that    Malaysian   manufactured   and   semi-manufactured
  products  have not been able to make significant  in-roads
  into  the  Hungarian  market  and  I  hope  this  can   be
  remedied.

  9.  Malaysia  has  followed   with   great   interest  the
  economic  transformation that Hungary has undergone  since
  1990.   The confidence expressed by international agencies
  like  the  IMF in the economic reform process  in  Hungary
  underscores   this  transformation.   The   admission   of
  Hungary  as  a  member  of  the OECD  in  1996  is  indeed
  commendable.  We are confident that Hungary will  continue
  to witness progress and prosperity.

  10.  Malaysia notes Hungary's keen interest  to  join  the
  European  Union  and  we trust that  Hungary's  membership
  would  contribute to a European Union that  will  be  more
  representative  of all the openness that  Europe  believes
  in.   Hungary's  desire  to join must  surely  be  because
  there  is  benefit  in being in the Union.   By  the  same
  token,  there  is disadvantage in being outside.   Such  a
  disadvantage  should  of  course  not  be  detrimental  to
  countries which will never qualify to be in.

  11.  Malaysia  and  Hungary share common perspectives  and
  approaches on many international issues.  The conflict  in
  Bosnia  and  Herzegovina requires  us  to  cooperate  more
  closely.  Malaysia, like Hungary believes that the  United
  Nations   has  a  primary  role  to  assume  in   ensuring
  international peace and security.

  12.  I  would  like to once again express my  pleasure  in
  welcoming  you  and  the  distinguished  members  of  your
  delegation  to  Malaysia and hope your  stay  in  Malaysia
  will be enjoyable and rewarding.