(March 16, 2004)

Mr. Greg Berry, President of the PNG-China Business Council,

Mr. Chen Barong, Head of the Delegation of China Foreign Trade Center,

Friends from the Business and the Media Circles,

Distinguished Guests,

Ladies and Gentlemen:

Good afternoon.

It is a great pleasure for me to attend this symposium on China's Foreign Trade and the 95th China Export Commodities Fair. First of all, please allow me to take this opportunity to extend my warm welcome to the delegation of the China Foreign Trade Center headed by Deputy Director, Mr. Chen Barong, and all friends present here today. I would also like to thank the Department of Trade and Industry of PNG and the PNG-China Business Council, for their coordination and support in hosting this symposium.

Since this is a symposium about trade, I am obliged to give some information about our bilateral trade. The bilateral trade between China and PNG is making big strides since the establishment of the diplomatic relations between our two countries 28 years ago. Now PNG has become China's biggest trade partner among the South Pacific Island Nations. The volume of trade between China and PNG accounts for more than two thirds of China's total trade with the South Pacific Island Nations.

Last year in particular, trade volume between our two countries almost reached 300 million US dollars, which is a 56% increase than that in the year 2002. It sets the highest record in our bilateral trade. China imported about 230 million US dollars of PNG products, and has become the No.1 importer of PNG timber. In turn China exported about 60 million US dollars of good quality and inexpensive consumer products to PNG. Therefore, I would like to take this opportunity to express my thanks to all the PNG and Chinese friends for your contributions to our bilateral trade. I also hope you will continue to work hard and expand your areas of trade for the further development of our economic cooperation.

In the economic and technical assistance sector, China in the last 28 years has provided within its ability a total sum of almost 300 million RMB yuan (which is roughly about 150 million kina) grant money and another 300 million RMB low interest or interest free loan to PNG. With these financial funding, we have completed 4 major projects, namely the construction and renovation of Sir John Guise Sports Stadium, Henganofi Rural Housing, Kandep Agriculture Research Center, Markham National High School. And we will begin with another four projects this year, including the maintenance of Government House, the upgrading of Papa Lealea Road in the Central Province, the construction of UNITEC mathematics and computer center with computers and servers provided by the Chinese side, and the construction of Vudal University students dormitories and teachers houses. My embassy is now working in close coordination with the Department of Planning and Rural Development for the early start of these projects.

China's economy grew by 9.1% last year. Its GDP volume reached 1.4 trillion US dollars. And China's foreign trade exceeded 850 billion US dollars, which is an increase of 37% over the year 2002. China is now consuming about 20% of the world steel output and 40% of cement. Last year, China imported about 100 million tons of crude oil from other countries. In the next 3 years China plans to import 1.2 trillion US dollars of high technology, equipments, crude oil, timber and other resources. I believe in the trade area, China will be able to provide a huge market for PNG as well.

I wish to emphasize that the bilateral relations between our two countries have been developing smoothly, and the development of our bilateral friendship and cooperation has gained a new momentum. Early last month, the Prime Minister Sir Michael Somare paid an official visit to China which is a complete success. The PM was warmly welcomed by the Chinese people. A few photos are on display here, you may have a look later. During the visit, Prime Minster, Sir Michael Somare reiterated the One China policy of the PNG government to the Chinese leaders, who expressed their sincere appreciation. In the field of economic cooperation, several agreements and MOUs were signed between the two sides, including those of mining, fishery, agriculture and education. Beginning from this year China will provide four scholarships annually to the PNG university graduates for further study in China in various disciplines. And China will send a teacher to PNG to teach Chinese language. In the investment sector, one of the MOUs signed by the two sides during the visit is the exploration of Ramu Nickel/cobalt mine in Madang. The Chinese Metallurgical Construction Corporation has agreed in principle to invest by itself about 600 million US dollars. If this project can be successfully carried out, it will certainly benefit our two peoples. While in Beijing a seminar on PNG trade and investment was also held. The Prime Minister Sir Michael Somare made a keynote speech at the seminar which aroused great interests and enthusiasm among the people of the business circle in Beijing. It is my conviction that through this official visit our mutual understanding, mutual trust and friendship have all been deepened. This has laid a solid foundation for the further development of our cooperation in all fields. I am sure with the concerted efforts of our two governments and peoples the economic cooperation and trade will no doubt be advanced to a new level.

The fundamental goal of China's foreign policy is to maintain world peace and promote common economic development. We will strive to maintain a peaceful environment for China's economic growth. So in the economic and trade sector, if there is anything we can do for our friends in the business circle here in PNG, please don't hesitate to keep in touch with my economic and commercial counsellor's office. We will do our best to help.

Finally, I wish this symposium a great success.

Thank you.