I consider it a great honour to speak before the General Assembly of the United Nations once again. On behalf of the people and the Government of the Republic of Panama, I wish to extend heartfelt congratulations to General Assembly President Stoyan Ganev, whose election has been a tribute to his record and personal merits and a wise choice by the General Assembly. Before continuing, I should also like to express my country's pleasure at the election of the Secretary-General, Mr. Boutros Boutros-Ghali, and at the splendid work he has done in the few months during which he has been at his sensitive position. We are certain that, under his leadership, the necessary consensus will be achieved to implement concrete actions that will promote political and economic stability, human and social development, and the restoration of belief in the principles that gave rise to this Organization. Today, because of the positive changes that have taken place in the world changes that have been called the "new order" those principles are singularly valid. We most definitely support his "Agenda for Peace". Without any doubt, the end of the cold war offers the world new and great opportunities to devote efforts and additional resources to the social and economic activities of our countries rather than to the waging of war. We note with satisfaction the progress made in various parts of the world through joint efforts to promote peace, security, and cooperation. The experience of the people of the Republic of El Salvador constitutes, for the rest of mankind, an example of how to settle disputes by peaceful means. With the signing of the peace agreements in the nation, an end was put to 12 long, grim years of struggle, bloodshed, grief, and suffering for thousands of Salvadorian homes. That is why my country, like the rest of the international community, reiterates its commitment to help the Salvadorian people consolidate peace, an indispensable element in the economic, political, and social recovery of that fraternal country. In the same vein, the recent conclusion of the century-old border conflict between Honduras and El Salvador, after the accepted ruling of the International Court of Justice, puts an end to one stage and begins another marked by understanding and friendship between those two countries. My Government welcomes this renewed willingness to resolve disputes by peaceful means. In those areas where, sadly, wars are unfolding, action must be taken not only to combat the scourge of war but also to fight its causes. Panama supports the machinery aimed at preventive action by United Nations peace-keeping forces in regions of hostility, in particular the implementation of preventive diplomacy and the peace programme put forward by the Secretary-General. In the area of regional disarmament, Panama, under the Treaty of Tlatelolco and recent proposed amendments to it, and as a signatory to the Ayacucho Declaration, has made a commitment to cooperate in efforts in this direction, as well as in efforts to ban nuclear weapons and eliminate conventional arms in Latin America. Taking into account the concepts of peace and stability, our country has truly and effectively abolished the army and is in the process of introducing constitutional reforms that will make it impossible to re-establish any kind of military organization in Panama. If the Panamanian people supports this plan in the referendum next November, we will be - together with Costa Rica two American countries whose constitution and laws ban the existence of an army. In this way we will have eliminated the possibility of re-establishing military regimes, of sorry memory, that did such harm throughout the history of Panama. Both domestically and internationally, we are in favour of diverting resources that have hitherto been assigned to military activities'towards efforts to promote the economic and social development of the people and the protection of the environment. If the great and powerful of this world have come to understand the necessity of reducing military spending, then there is even more reason for the smaller countries to understand that our wars must be wars against poverty and illiteracy. There can be no doubt that the Rio Conference marked the beginning of a new stage in a new form of development for the world and its inhabitants. We must harmonize the economic, social, political, and ecological dimensions. The concepts of sustainable development and integration are key elements in building the future of our world above and beyond the boundaries and individual interests of nations. But, at the same time, the equity that can be produced by development must be an important topic on our agendas. Panama accepts the challenge to shift development patterns and attitudes towards the natural environment. In this regard, we need the determined cooperation of the international community to preserve the biogenetic heritage that has been bequeathed to us. I reiterate that we need to create a special fund to give the developing countries new and additional resources enabling them to implement national strategies of sustainable development. At the same time, it is necessary to make joint efforts to bring together Governments and the private sector with international organizations in an effort to achieve these ends. To that end, we should look to the results of the Rio Conference as a great opportunity to pledge efforts and resources at all levels and to formulate and implement national development strategies based upon Agenda 21. In my first address in this forum, two years ago, I referred specifically to our support for the incorporation of the Republic of Korea into the United Nations, which we saw as consistent with the atmosphere created by the end of the cold war. We are delighted that this decision was made a year ago. Today, in that same spirit, we must give due consideration to the absence of the Republic of China from this Organization, and we must also consider the impact that absence has on the role our Organization plays in achieving global cooperation and coordination. We must acknowledge the impressive economic development of that country and the progress made in the democratization of the Republic of China. These factors could help resolve many of the problems facing this Organization. For this reason, we invite Member States to initiate serious consideration of this subject in the spirit of peace and cooperation that has predominated recently. In the area of human rights, we have noted with satisfaction the decision to convene a world summit conference on social development, and preparations for the World Conference on Human Rights. It is important that the United Nations system assume leadership in these areas, facing, as a matter of priority, the social problems that stand in the way of improving living conditions for the most dispossessed in our societies. As I said a year ago, Panama has set for itself a number of social development programmes over the next five years. I am happy indeed to say today that the United Nations Development Programme has contributed effectively in this national effort to attack the areas of extreme poverty in our country as a matter of priority. Thanks to this cooperation, we have made considerable progress, although I must admit that we still have a long way to go. As part of the Central American isthmus, our country is continuing to make efforts to lay the foundation for commitments that will benefit our six members. To this end, the Central American Presidents, at the twelfth summit Conference in Managua, Nicaragua, last June, developed a working agenda. The purpose of that agenda is to bequeath to future generations of our countries better conditions for improving democratic institutions, promoting integration and fostering economic and social development. We should like to take full advantage of this new era in our region, for we see it as a historic opportunity to strengthen the idea of a united Central America facing the challenges of the twenty-first century. For these reasons, the Central American Presidents decided to place the emphasis at the thirteenth summit Conference which we will proudly be holding for the first time in Panama next December on the agricultural sector, which is the pillar of our economies and the primary source of employment in our region. Our efforts to participate in the activities of all international organizations recognizing as we do that dialogue is the best way to promote relations among nations - has led us to take steps to become a permanent member of the General Agreement on Tariffs and Trade and has led us to sign the Montreal Protocol on the ozone layer. I now turn to actions within the European Community to protect the exporting of our product, bananas. As a result of the visits of several Central American Presidents to different European countries, we now view with optimism the decision of some of these countries to oppose the resolution of the Commission of the European Community on the subject. That resolution recommends the imposition of quotas on the importing of bananas into the Community, which would adversely affect thousands of jobs in that sector of our economy. At this point I should like to stress that the consolidation of democracy and stable social peace must be understood and promoted within a modern approach to economic relations. Imposing measures such as the ones mentioned in respect of bananas is certainly not in keeping with these new realities. At a time when there is an opening of trade in goods, products and services, it is contradictory indeed to see efforts made to restrict our banana market by applying protectionist policies that seem now to be out of date. Along these same lines, Panama views with optimism the negotiations of the North American Free Trade Association, which concluded last month. These negotiations were the result of the Americas Initiative put forward by the United States of America. That agreement will make possible accession by other countries in the region. Thus a climate of eguity has been created in respect of investments, markets and the transfer of technology. I should like to stress that the free trade agreement could be the mechanism that, over the short term, will make it possible to promote a plan for intra-regional free trade. This would redound to the benefit of our economies and be part of a balanced, competitive plan. In this forum, I should not fail to touch on our concern over the problem of drug trafficking. Because of our geographical position and our service economy, we have unfortunately attracted much of this unlawful and damaging trade. Consequently, my Government has promoted, and will continue to promote, serious, responsible action to put an end to drug trafficking and the laundering of money relating to these activities. We have signed international agreements and we are negotiating other similar agreements, and we are carrying out successful internal operations relating to supervision and detection in order to help undermine any incentives that might exist for this vile trade in our country. However, whether we are producer countries, countries used for transit or consumer countries, the problem affects us all. That is why it is necessary to reaffirm our determination to fight and curb these activities, for they not only damage the health of our citizens, but also promote violence and terrorism, which also deserve our most vigorous condemnation. Therefore, I take this opportunity to tell the world that Panamanians leaders and the people are determined allies of all those fighting against drug trafficking and the crimes resulting from it, which make it such a reprehensible activity. In this world forum, I should like to report on actions that Panama is now taking to take over the administration and operation of our inter-oceanic canal, in keeping with the 1977 Treaty. Our country will assume full ownership and autonomous management of the Canal on the last day of this century. In the meantime, some of the improvements made by the United States in the inter-oceanic region have been handed over to the Republic of Panama; other improvements will become Panamanian property when the canal itself is handed over. My Government has carried out many internal consultations on the subject and has drawn up the legal framework for the administration and utilization of these improvements. This is a commitment that Panamanians have unhesitatingly made to the rest of the world. Moreover, together with our partner in the Canal the United States - we are members of a number of national and bi-national commissions preparing for the transfer of functions at the appointed hour. Finally, in another commission, made up of Panama, the United States and Japan, alternatives to the Panama Canal are being studied in order to determine the best way to ensure the continued competitiveness of our inter-oceanic route in the next century. The last decade of this century finds Panama building its future with optimism. We are strengthening our democratic system and the institutions that are its foundation. Among other things, we are preparing for an exemplary electoral process in 1994, ensuring in turn renewal of authority in keeping with the popular will, openly expressed. We are taking advantage of a significant recovery of our economy, which will benefit our social development. With a keen sense of responsibility, we are preparing ourselves to administer our Canal, from the last day of this century. We are living in freedom and in peace with our neighbours. Panama today has a future, and it is promising. These policies and principles guide our domestic actions and constitute the guidelines for our international actions. That is why we support all United Nations actions and initiatives consistent with our principles and interests. In this world forum, I urge all countries to promote and consolidate peace, to foster their development and growth and to guarantee democracy and justice, for these will help us live together in a better world.