Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	THE REPUBLIC OF SLOVENIA 
Tarikh/Date 	: 	28/10/97 
Tajuk/Title  	: 	THE OFFICIAL DINNER HOSTED BY H.E. 
			MR JANEZ DRNOVSEK PRIME MINISTER OF 
			THE REPUBLIC OF SLOVENIA 



     1.   I would like to thank the Government of the Republic
    of  Slovenia  for  the warm welcome and hospitality  that
    has  been  accorded to the members of my  delegation,  my
    wife  and I.  We are impressed by the friendship and  the
    goodwill that has been shown to us.
    
    2.    This visit to Slovenia has been planned for a  long
    time.   It was clear to us in Malaysia from the beginning
    that  the heroic people of Slovenia who had stood  up  to
    arrogant  might  were set on a course of uplifting  their
    socio-economic  status.  It is commendable  that  from  a
    modest  beginning,  in less than a decade,  Slovenia  has
    made  laudable progress and has developed into a distinct
    nation-state.
    
    3.     As   a  trading  nation  Malaysia  has  particular
    interest  in  Slovenia.  Slovenia is  at  a  geographical
    cross-roads  in South Eastern Europe.  From the  Adriatic
    Sea  which  is  one  of  the most easily  accessible  sea
    routes  for  us  in  South  East  Asia,  Slovenia  enjoys
    excellent  access  to the hinterland of  Central  Europe.
    Coupled  with  the  outward commercial  outlook  and  its
    imaginative  economic, financial and  monetary  policies,
    Slovenia  is  viewed  as a natural  trading  partner  for
    Malaysia.
    
    4.    Like  Malaysia,  we  note  that  Slovenia  has  not
    allowed  the smallness of its domestic market to dissuade
    it  from embarking on projects for the mass production of
    both  capital and consumer goods.  The wave of the future
    will  be  that  trade will flow from areas  that  produce
    goods  efficiently and cheaply to other areas.   In  this
    new  regime  of free trade, countries like  Malaysia  and
    Slovenia will have to find their niche.
    
    5.     The  various  meetings  that  the  members  of  my
    delegation and I will have during this visit will  enable
    us   to   explore   the   possibilities   for   bilateral
    cooperation.   I  am  optimistic  that  given  Slovenia's
    outward   orientation,  its  wide  use  of  the   English
    language  and  the  strong desire  to  foster  trade  and
    economic   cooperation,   there   exists   an   excellent
    environment for enhanced bilateral cooperation.
    
    6.    In  the  next  few months it is  important  that  a
    proper legal framework be established to encourage  trade
    and  economic cooperation between our two countries.  The
    various  agreements that are under negotiation will  have
    to  be  finalised.  I am glad that during this  visit  we
    are  making  a  good  start by signing  an  Air  Services
    Agreement.
    
    7.    From our experiences in Malaysia we have found that
    political  stability,  a regional environment  of  peace,
    mutual  trust  and  confidence are important  ingredients
    for  economic  progress and prosperity.  I  realise  that
    Slovenia  has  sought to build good  relations  with  its
    neighbours.  It is a matter of sadness that Slovenia  has
    not  quite  been  able  to  persuade  the  government  in
    Belgrade  to live in peace.  Belgrade's actions  continue
    to threaten the fragile peace in Bosnia and Herzegovina.
    
    8.    The  Serbs  in  Belgrade seem bent  on  unravelling
    whatever the Dayton Peace Agreement has achieved for  the
    region.   Malaysia has been a strong advocate for beefing
    up  the military strength of all the countries that share
    boundaries with Yugoslavia.  It does seem that  only  the
    threat   of   retaliation  and  reprisal  will   persuade
    Belgrade  to  behave responsibly.  In this  regard  I  do
    hope  that Slovenia will be able to play a positive  role
    to  influence  its  European  friends,  particularly  the
    stronger  states, to lift the arms embargo on Bosnia  and
    Herzegovina.
    
    9.    In  a  small  way Malaysia has contributed  to  the
    reconstruction of Bosnia and Herzegovina.  We  have  also
    contributed to the U.S. -led Train and Equip Program  for
    Bosnia  and  Herzegovina.  We have found,  however,  that
    the  cessation  of  war  is not adequate  to  ensure  the
    future  of Bosnia and Herzegovina.  The country needs  to
    achieve   genuine  reconciliation  amongst  the   various
    ethnics group.  It needs to develop itself and it has  to
    draw  back  its  people  who have sought  employment  and
    refuge  elsewhere.  Others who have been displaced should
    be  allowed  to  return  to their rightful  homes.   This
    process  of  normalisation is  not  happening  due  to  a
    variety of reasons, including Belgrade's intransigence.
    
    10.   Malaysia  is  willing  to  work  with  Slovenia  to
    contribute  to  the  process  of  achieving  normalcy  in
    Bosnia  and Herzegovina.  The details of what we  can  do
    together  can  be  worked out in discussions  at  various
    levels.   I am confident that such co-operation will  lay
    the  groundwork for a durable peace in this  region.   We
    believe  that  only  peace in the region  will  help  the
    exploitation of the full potential of the people and  new
    countries resulting from the breakup of Yugoslavia.
    
    11.   I believe there is immense scope to develop further
    the  bilateral  relations between Malaysia and  Slovenia.
    When  the  private sectors of our two countries begin  to
    collaborate,  I  am  optimistic that our  relations  will
    achieve   a  new  momentum  which  will  prove   mutually
    beneficial.