I wish first of all to express our satisfaction at your election, which has accorded you the privilege of conducting the debate at this fifty-fourth session of the General Assembly. I wish also to express our conviction that your recognized diplomatic and political experience will lead to creative results. I should also like to pay a tribute to the Foreign Minister of the Eastern Republic of Uruguay, Mr. Didier Opertti, whose diligence at the helm of the Assembly last session not only bore witness to his professional abilities, but also confirmed the commitment of that American nation to the principles on which the United Nations is based. Exactly three years ago, on first taking the floor here, I began by announcing that we were very close to achieving peace in my country. Today I return to this Assembly four months before my term of office expires to summarize all that has transpired during the past three years of changes, many of which Guatemalans could not imagine when we signed the peace accords on 29 December 1996. The first and most fundamental change that has taken place has been in the hearts and minds of Guatemalans, as can be seen in the way that the former guerrillas have been brought back in from the cold and are no longer outlaws, and in the return of the refugees. After over three decades of an internal armed conflict marked by extreme cruelty, a conflict which was, among other things, an expression of profound and deep- rooted political and ideological intolerance, all the indications were that reintegrating the former guerrillas was going to be a complicated and dangerous process. Nevertheless, against all expectations, from the moment the ceasefire took hold until the former guerrillas took part in the electoral process, reintegration has taken place in an atmosphere not only of security but also of openness and tolerance on the part of all sectors of society. I should also like to highlight here the attitude of the Guatemalan army, which involved itself fully in the negotiating process and made fundamental contributions to it and then, once the peace accords had been signed, not only complied fully with their provisions but was also positive in its attitude towards them. By acting in accordance with the spirit of the accords and not just the letter, it encouraged reconciliation and peaceful coexistence with its former adversaries. At the local level, both the refugees and the former guerrillas have returned to their towns and villages and today, in many of those places, development committees have been set up composed of returnees, former guerrillas, former members of the civil patrols and former members of the armed forces, all of them working together to improve the lot of their communities by striking at the roots of their problems. 9 Also, at the public policy level, peace has meant social investment on a scale and of a quality unprecedented in our country’s history. That investment has been effected in accordance with the social ethic and the development logic of the peace accords, and have also met the specific targets set in those accords. Thus we have gone farther than anyone has before. We have gone as far as the most remote villages and hamlets and brought them education, health services, roads, electricity and water, though we know that much remains to be done. What we have achieved so far has already shown that if we can consolidate the opening to progress which our country has made, we can quickly remedy the effects of so very many years of backwardness. We are also investing in the infrastructure and facilities needed for production in order to improve the country’s competitive position in the globalized world of today. I would say that these two fundamental aspects I have mentioned, the reintegration of the former guerrilla forces into society and social investment, contain the fundamental elements on which a new Guatemala will be based. Inherent to the processes through which the former guerrillas have been reintegrated and the refugees have been repatriated are reconciliation, tolerance, respect for diversity and legal or otherwise agreed solutions to conflicts. The main thrust of public investment embodies a social ethic based on the common good and a tangible effort to improve access to opportunities for the least regarded sectors. Thus both processes form the foundations for maintaining and strengthening peaceful coexistence between Guatemalans, which has been the most significant qualitative result of the peace accords of December 1996: on the one hand, a peaceful settlement to the conflicts and, on the other, increasing efforts to redress the most serious injustices and opportunities for development for all. Nevertheless, our internal endeavours have taken place in an adverse world economic context. As in almost every other Latin American country, the economy in Guatemala is experiencing a slowdown and a financial squeeze. Together with the effects of the crises in various regions and the persistent financial speculation that is constantly chipping away at productive, job-creating investment, the prices of our main export products have plummeted while the cost of our imports, particularly oil, have gone up substantially. The negative impact of this situation particularly affected the strata of our society who are least capable of fending for themselves. This trend which is mainly caused by external factors, has been compounded by the direct and indirect effects of hurricane Mitch, which struck our sister countries of Honduras and Nicaragua particularly hard but also brought serious destruction to our own country and seriously affected trade within the Central American region, on which we are highly dependent. As a result, the State’s efforts to boost development cannot be as successful as they might otherwise be, particularly when compared with our people’s expectations. We have created investment incentives, beginning with political stability, and going on to education and training, creation of infrastructure and provision of basic services. What has been accomplished in the way of public works and public services has generated tens of thousands of jobs. The work done on the roads and highways and on the electrical grid and telecommunications has significantly expanded the main bases of our economy. As a result of all these and other endeavours, the effects in our country of the negative economic developments taking place abroad have been less severe than in our sister countries that have stopped growing or have experienced negative economic growth. We have created a foundation that will have a positive impact on the standard of living of the people, and especially of the neediest. These beneficial results will continue if we stay the course. For even if we must continue to swim against the current of the world economy, which is temporarily impoverishing us, we have available internal resources and can count on ongoing processes that are likely to produce structural change, provided that the efforts made over the past four years are consolidated, sustained and continued. The Peace Agreements are, for Guatemala, the strategic elements of a profound, comprehensive and all- embracing effort to change our country. They represent the basic guidelines for the fundamental transformations necessary to build a different Guatemala, one that is profoundly democratic and committed to the integral and sustainable development of its people. The peace agenda is equivalent to the democratization of the country, which is conceived as a functional and participatory democracy encompassing the political and cultural domains. A functioning democracy 10 involves reform of the State, and its participatory character is what enables it to become a social democracy, which in turn strengthens its functionality. In this respect, I cannot fail to mention the substantial increase in opportunities for popular participation that has resulted from the establishment, as mandated in the peace agreements, of over 15 multi-sectoral commissions, as well as the measures taken to extend and complement structures for the elaboration and adoption of public policy. Also noteworthy are the efforts that have been made to decentralize the State and strengthen local institutions with a view to a rapprochement between the Government and the people and to giving them a greater say in public affairs. Another fundamental process consists in the efforts being made to build a multicultural, plurilingual and multi- ethnic nation. This involves extremely complex work to roll back centuries of exclusion, discrimination and racism, and it presupposes profound cultural changes towards the tolerance and respect necessary for our cultural diversity to blossom and make the many contributions it can to our national development without putting the unity of the country at risk. It has also been essential to redefine national security and defence. This has involved re-examining principles and rethinking the public security, national defence and intelligence apparatuses. We have made progress in the establishment of a new national civil police. This is a professional body that is trained to focus on the protection and defence of the individual and collective rights of citizens and is sensitive to, and respectful of, ethnic, cultural and linguistic diversities. We have also further reduced our military forces, cutting back the budget and dismantling bases and other important elements of the military infrastructure, as provided for in the Peace Agreements, with the full concurrence and participation of the army. The progress made in various areas is a source of legitimate pride for all Guatemalans as well as for the States that, as the Group of Friends, have supported us, and in particular for the Organization, whose role as our partner has enabled us to maintain optimism and hope in the difficult task of building peace and development. Guatemala has been able to benefit from the essence of what the Organization does best: make available its good offices and serve as a facilitator in the various phases of the management of a conflict, act as an impartial verifying agency, provide unconditional cooperation and act as a trusted partner in assisting Member States to resolve problems. I wish to stress the paramount importance of the role that has been played in Guatemala by the United Nations Verification Mission in Guatemala, with a view to ensuring progress in the implementation of the Peace Agreements. The United Nations presence in our country and the exercise of its advisory and verification functions with impartiality and wisdom have contributed significantly to the implementation of the various phases of the commitments in the Peace Agreements. Our Government attaches similar importance to other initiatives that the United Nations has undertaken in support of Guatemala’s society. Our country is a testing ground for a new assistance framework that aims, among other things, to impart greater consistency to the work of the various agencies of the Organization. Our own evaluation of the assistance we have received is highly positive. The number of activities the Organization is carrying out in Guatemala is quite high and increasing. It is therefore only fair to emphasize that the various agencies have been able to mobilize a considerable amount of additional resources from external sources. Another positive contribution of the cooperation in question is the tangible impact it has had, through both its direct effects and its catalytic function in respect of public expenditure and the policies carried out by the Government. I therefore wish to convey our deep appreciation to the States Members of the United Nations, which have at all times supported the efforts of the various sectors of Guatemalan society to restore peace. Their political backing has been fundamental to the success of those efforts. I also extend my gratitude to the Secretariat, and in particular to Mr. Kofi Annan, as well as to the executive organs of the various agencies of the United Nations system, which have interpreted the mandates of the Organization and have demonstrated efficiency in their execution. Finally, we fully appreciate the value of the work of other multilateral bodies such as the World Bank, the International Monetary Fund, the Organization of American States, and in particular the Inter-American Development Bank, which has played a dual role as direct source of financial assistance and organizer of the Consultative Group for Guatemala. The success achieved by intergovernmental bodies in connection with the Guatemalan peace process is our basic reason for reiterating our conviction that cooperation between nations is indispensable in order to achieve peace and development for our peoples. That is why Guatemala remains firmly committed to the promotion of various kinds of multicultural and multi-ethnic undertakings, not only in the framework of the United Nations but also with respect to various endeavours at the regional and hemispheric levels. One of the boldest and most challenging initiatives is the one being undertaken by Central America to achieve the economic and political integration of the region. Like the other States that compose the Central American Integration System, Guatemala is convinced that this strategic association strengthens the region in its relations with an increasingly competitive world, and it reiterates its commitment to continue promoting actions to enhance the effectiveness of Central American integration. For those same reasons, Guatemala wishes to express its unreserved support for the strengthening of our Organization. We are firmly convinced that the United Nations must be the principal forum responsible for maintaining world peace. That is why we welcome the Security Council’s prompt response to the crisis in East Timor. We believe that United Nations involvement in such situations confirms its functions as the sole organ competent to decide on the action to be taken in cases where the principle of non-intervention needs to be interpreted with due regard to the existence of violations of international humanitarian law. In order that such functions be performed adequately, we need an Organization that is strong and flexible, with mechanisms and procedures that are capable of responding to the challenges of new world realities. We must accordingly reflect more deeply on the ideal design structure of an Organization that must compensate for the regional imbalances of power that have arisen in the post- cold-war world. This also means that we should pursue the reform of the Secretariat and of the intergovernmental bodies of the United Nations, including the Security Council. We believe also that the United Nations should continue to deal with the greatest unfinished task of the twentieth century: wiping out world poverty. Together with the multilateral financial agencies, our Organization should play an indispensable role in ensuring that the benefits of globalization are distributed on a democratic basis, and that if we must all be exposed to the risks, we should all be entitled to enjoy the benefits. Guatemala appreciates the Organization’s contributions to promoting an international climate enabling disputes between and within States to be settled peacefully. As a State Member of the United Nations, Guatemala has always resolved all its international disputes in a peaceful manner and in accordance with international law. We wish to reiterate to the Assembly our concern about the situation of the 22 million inhabitants of the Republic of China in Taiwan whose aspirations for representation in international organizations have not been satisfied. We welcome the new impetus that has been seen in the Middle East peace negotiations and we trust that they will lead to a comprehensive resolution of all the outstanding issues there. After so many years of conflict, the countries of the region, including a future Palestinian State, deserve to live in peace, security, harmony and prosperity. This is the last statement that I will make to the General Assembly as the representative of my country, and I should like to conclude by reiterating my people’s gratitude for the solidarity shown to us in our efforts towards peace and development. The support which the peoples and Governments represented here have bestowed upon us, together with the strenuous work of the United Nations and its agencies, make us feel honoured, indebted and motivated. The fruit that our peace process has manifestly borne in such a short time provides clear evidence of the validity and relevance of the system and of the fundamental, indispensable and inestimable importance of the efforts of the Guatemalan people within the country and of the unquestionable effectiveness of international friendship in the form of respectful, timely and effective cooperation in building a more democratic country and a more equitable and united world. 12