Oleh/By		:	DATO' SERI DR. 
			MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	DURBAN, SOUTH AFRICA 
Tarikh/Date 	: 	12/11/99 
Tajuk/Title  	: 	IN REPLY TO THE ADDRESS OF 
			WELCOME BY THE PRESIDENT OF
			SOUTH AFRICA AT THE COMMONWEALTH 
			HEADS OF GOVERNMENT MEETING 


  
       It  is  indeed a privilege and an honour for me  to
  be  given  this  opportunity to join  my  colleagues  in
  thanking  you,  Mr. President, and the people  of  South
  Africa, for the warm welcome to this Commonwealth  Heads
  of Government Meeting.
  
  2.    We  share with you, Mr. President, your  pride  in
  playing  host to  this unique group of countries diverse
  in  culture but united in purpose. I am sure  the  other
  delegations  will  join me in expressing  our  deep  and
  sincere  appreciation to the Government  and  people  of
   South  Africa  for  the  generous hospitality  and  warm
  welcome  we  have  received since our  arrival  in  this
  beautiful and historic city of Durban.
  
  3.    I would like to welcome Nauru as a full member  of
  the  Commonwealth.  It is also a pleasure to welcome the
  return of Nigeria to the fold of the Commonwealth.
  
  4.    Sadly, we had to request Pakistan not to  join  us
  at  this  time.  Malaysia regrets very  much  what  took
  place  in  that  country.  We in the  Commonwealth  have
  made  a  common pledge not to allow the use of force  to
  overthrow  any  Government, much less  a  democratically
  elected  Government.  Pakistan is a  country  which  has
  very  close  relations with Malaysia.  It is  Malaysia's
  wish  that  the  rulers of Pakistan will  do  everything
  necessary to qualify Pakistan to resume its seat in  the
  councils of the Commonwealth.
  
  5.    Our  gathering here in South Africa is in  fact  a
  celebration  somewhat  delayed.   The  dismantlement  of
   apartheid  in South Africa is a glorious victory  for  a
  determined  people,  supported by a Commonwealth  united
  in  its opposition to oppression.   We salute today,  in
  their own homeland, the brave people of South Africa.
  
  6.    This  Meeting  in Durban takes  place  at  a  very
  important  juncture in the history of  nations.   It  is
  taking  place  at  a  time when the great  debate  about
  globalisation is nearing its peak.  In fact we  meet  on
  the   eve   of   the   portentous  Seattle   Ministerial
  Conference of the WTO where pressure will be mounted  to
  launch  a new global round of negotiations to liberalise
  trade.   It  is  apt  that this  CHOGM  has  chosen  the
  Challenge of Globalisation as its theme.
  
  7.    The  developing  countries  will  be  lectured  in
  Seattle  that  the  world  should  be  borderless,  that
  capital,  goods and services should flow freely  between
  countries.   They will be told that there should  be  no
  discriminatory  taxes  to protect  local  industries  or
   products.   Local  products must  compete  on  the  same
  footing   as   imported  products.   Local   banks   and
  industries   must   compete  with  foreign   banks   and
  industries.  No conditions must be attached  to  foreign
  banks and businesses which want to set up operations  in
  their  countries.  They  must be given  national  status
  like  those given to local businesses. This way,  it  is
  said,  a  level  playing  field  will  be  created   and
  competition will be fair.
  
  8.    How  can  there  ever be fair competition  between
  giants and dwarfs, even if the field of play is level?
  
  9.    Malaysia  has just gone through a  very  traumatic
  experience.   In  a matter of weeks, 42  years  of  hard
  work  to  develop the country was destroyed.   The  free
  convertibility  of  our  local  currency,  the  Ringgit,
  exposed  us  to  the  attacks by  manipulative  currency
  traders.  The ensuing devaluation of the Ringgit  caused
  Malaysia  to  lose  about  50 billion  U.S.  Dollars  of
   purchasing power of imports as well as 150 billion  U.S.
  Dollars in market capitalisation on the Malaysian  Stock
  Exchange.
  
  10.   Malaysia  took independent action to  redress  the
  situation.   The  most  important strategic  measure  we
  adopted  was  the application of selective  capital  and
  currency  controls.  We made the Malaysian Ringgit  non-
  tradable  beyond Malaysia's shores; its value was  fixed
  at  3.8  to  the U.S. Dollar; foreign equity  investment
  could  not  be taken out for one year from  1  September
  1998  --  a  stipulation which was loosened and  further
  loosened after it had achieved its original purpose.
  11.   The  measures Malaysia took made  it  possible  to
  secure  exchange  rate  stability,  to  pump  prime  the
  economy  without serious negative consequences,  and  to
  massively  cut  interest rates.  The  real  economy  was
  thus  saved  and this also helped to save the  financial
  sector.
  
  12.   Today,  after  two years, Malaysia  has  not  only
   arrested  the  economic slide but has in fact  begun  to
  register  positive growth. The economy is  now  well  on
  the  road to  recovery.  Malaysia did not have to  incur
  massive  foreign  debt  to the  IMF.   Future  Malaysian
  generations  have  also been spared  the  massive  debt-
  servicing burdens.
  
  13.   I have cited the Malaysian experience for only one
  purpose,  that  is to stress the point that  alternative
  solutions  do  exist.   We have  proven  that  different
  situations call  for different solutions.  There  is  no
  single  prescription which cures all. Countries must  be
  allowed  to  act  as  they think appropriate  for  their
  circumstances to achieve their own goals.  They must  be
  allowed   to  decide  on  their  national  and  societal
  priorities.   They must be allowed to  devise  the  most
  legitimate  and productive ways by which their  intended
  goals  can be achieved.  They do not need to be dictated
  to.
  
  14.   The world economy today remains deeply divided and
   unstable.   Asymmetries and biases in the global  system
  against  the poor and underprivileged remain  unchecked.
  They  say globalisation and liberalisation is the answer
  to  all  the  economic and financial ills of the  world.
  Well   they  said  the  same  thing  of  Socialism   and
  Communism.  And many of us were persuaded to  place  our
  faith in these panacea.  But after decades of trying  at
  tremendous  cost  in human sufferings the  proselytizers
  have  now jettisoned these cures.  And they now want  us
  to  accept  their new fool-proof medicine.   Can  we  be
  certain  that  after a few decades they will  not  again
  throw  out  this solution in favour of some new  remedy.
  This  is  what  we  must ask ourselves  now,  before  we
  swallow  the pill.  A system is not good in itself.   It
  is  good only if it delivers the hoped for results,  for
  us and not just for them, the ardent advocates.
  
  15.   While  we  celebrate the 50th anniversary  of  the
  Commonwealth  at this meeting, we are sad that  we  will
   be  saying  our  farewell to Chief Emeka  Anyaoku  whose
  remarkable   career   as  Secretary   General   of   the
  Commonwealth  has spanned one decade.   It  was  at  the
  1989  Kuala  Lumpur CHOGM that Chief Emeka  Anyaoku  was
  selected as the new Secretary General.  I would like  to
  pay  tribute to this man who has served the Commonwealth
  so  admirably.  I am sure that my colleagues  will  join
  me  in thanking him most sincerely and putting on record
  our  deepest appreciation.  Chief, we wish you  well  in
  your future endeavour.
  
  16.   Once  again, Mr. President, on behalf of  my  wife
  and  the Malaysian delegation, I would like to thank you
  for  your  warm words of welcome and kindness.   I  look
  forward to our deliberations in Durban and George  under
  your  skilful chairmanship.   I have faith  that  if  we
  stay  united, the Commonwealth will continue to  have  a
  meaningful  role in the service of mankind  in  the  new
  millennium.