Hon. Tukape Masani, Minister for Trade & Industry,

Hon. Sir Moi Avei, Minister for Bougainville Affairs,

Hon. Opa Taureka, Governor of the Central Province,

Mr. Jonathan Soten, Secretary for Trade & Industry,

Mr. Wang Ji, General Manager of China Liaoning International Trade Company and Chairman of Board of Directors of PNG Salt Industries Ltd.,

Distinguished guests,

Ladies & gentleman,

First of all, I would like to extend, on behalf of the Embassy of the People's Republic of China, a warm welcome to all of you to the ceremony for the official commencement of production of the Refined Salt Factory of PNG Salt Industries Ltd.

This is a project undertaken between the Government of the People's Republic of China and the Government of Papua New Guinea and financed by a Chinese Government subsidized loan totaling 10.75 million US dollars. The first of its kind in PNG, the factory will turn out annually 10,000 tons of refined iodised salt. As it is a BOT project, the factory will be transferred to the PNG side after 30 years of operation.

The successful completion of this project has great significance. Firstly, its products will fully meet the demands of domestic market, thus bringing to an end the history of PNG importing salt from abroad. Secondly, localized salt production will raise state revenue and save hard currency for the country. Thirdly, it will help create job opportunities. At present, the factory employs 30 local staff. And with the gradual progress in the next phase of project to build the solar saltworks at Papa/Lealea village, the factory will employ more local people. Fourthly, the success of salt project has set a good example for other Chinese enterprises, thus bringing in more Chinese investors to PNG in the future.

China attaches great importance to the friendly relations and cooperation with PNG. I am glad to tell you that much fresh headway has been made in our development cooperation projects. Just recently, the Chinese Government has concluded with the PNG Government the agreements to renovate the Sir John Guise Sports Complex, to upgrade the Taurama Military Hospital, and to send a Chinese medical team to the Port Moresby General Hospital. And very soon, the further extension of agricultural project in Enga Province and the further extension of mushroom and dried rice project in Eastern Highlands Province will also be implemented. Our two governments are right now in a process of determining new assistance projects to be funded by the Chinese side.

As two developing countries in the Pacific, China and PNG share the common task to develop their respective economies and improve people's living standard. The Hon. Minister of Trade and Industry, you would agree with me that foreign trade and economic cooperation play a very important role in our national economy. In China export alone contributes 25% to the country's GDP. Thanks to the implementation of "Going Global" trade strategy, China's foreign trade volume last year amounted to US$510 billion, ranking the sixth in the world.

PNG is the largest and the most important trading partner of China among the South Pacific Island nations with our 2-way trade exceeding US$200 million annually. We have every reason to believe that with China's accession to the WTO, the potential for still closer trade relations and economic cooperation between our two countries will be further tapped. And it will give strong impetus to the development of comprehensive partnership between the People's Republic of China and Papua New Guinea in the new century.

Before conclusion, I'd like to express our heartfelt thanks to the PNG Government for its kind assistance accorded to the salt project. Let us wish the newly born factory a smooth development in the future.

Thank you.