Sir, I congratulate you on your election to the high office of the presidency. A heavy responsibility rests on your shoulders. This has been a turbulent year in international affairs. The shocks of the past 12 months are reflected in the agenda. This has been a testing time also for the new Secretary-General. He faces more hard tasks ahead. 43. We have endured a year of crisis in the world economy. The international monetary system has teetered on the brink of catastrophe. The twin evils of inflation and unemployment have ranged throughout the world; growth has slowed almost to a halt. 44. Nor has the world become a more peaceful and secure place. On the contrary. The Middle East has been a cockpit of war. We have just seen a massacre of unarmed civilians in Lebanon on a scale we find hard to believe. Afghanistan is still occupied and tyrannized by the Soviet Union. Vietnamese troops still hold Kampuchea. A totally avoidable war has been fought over some remote islands in the South Atlantic. Great-Power relationships have deteriorated. There has been no progress towards disarmament. 45. I want to say a little more about the world economic situation. As a small trading nation, New Zealand is acutely sensitive to fluctuations in the health of our major trading partners. New Zealand is classed as a developed country, but we share many of the problems of developing countries. Our prosperity depends on the export of a relatively few primary products. In the current world situation, terms of trade run against us. When the economic giants sneeze, we do not catch cold; we catch pneumonia. 46. It is not surprising therefore that my Government has taken a leading role in recent months in advocating a revitalization of the international economic and financial institutions. The system established at Bretton Woods 38 years ago served reasonably well during a long period of economic growth in the 1930s and 1960s. There is a widespread agreement that it needs to be improved and strengthened, not tom down. There is no consensus yet as to how that can be achieved. 47. At international meetings of Finance Ministers in recent weeks, the New Zealand Prime Minister has advocated an international conference to re-examine the role and adequacy of the international institutions established at Bretton Woods. Such a conference would require detailed groundwork and preparation. It is, perhaps, too early to spell out the agenda. What must first be demonstrated is the political will to undertake the task. My Government believes that that will exists in many countries, but some of the largest and most powerful Members of the Organi-zationóthose with the greatest economic cloutóhave still to be convinced. 48. One thing is clear. The efforts that have been made in the Organization to effect progress through a North-South dialogue have reached stalemate. The very term North-South polarizes attitudes. Doctrinaire argument will get us nowhere. Nor will a retreat into policies of economic isolationism. The growth of protectionism is one of the most disturbing by-products of economic recession. It will not help growth in the powerful economies of the major industrialized countries, and its effects on the vulnerable economies of the developing countries can only be disastrous. 49. Let me emphasize again the constructive purpose of my Government's call for a review of the international economic institutions. We wish to see them strengthened and, if necessary, supplemented. They may need new powers. They should be more responsive to genuine needs. In the financial field, they should be more flexible in the conditions they impose for lending. There should be a large increase in quotas to strengthen the position of the International Monetary Fund [IMF]. There is a need for discipline to apply to those countries which accumulate large surpluses in their balance of payments, as well as to tht.se which are forced into large deficits. This is sometimes called symmetrical surveillance. Greater regulatory powers than exist at present may be required. IMF is no longer facing cyclical downturns in member nations but long-term structural imbalances. Its rules must be adapted for longer-term lending and easier conditionality. A decision on these matters at a special meeting of the world community would make the political decision, country by country, to accept such changes much more easily. 50. But these are only suggestions on our part. I repeat that what is needed is a clear demonstration of political will to embark on a new program designed to restore confidence in the world economic system. Only thus can we look for the world consensus required to implement such a program. May I say that we look to the major economic Powers to display both more determined leadership and a greater understanding of the problems faced by smaller and weaker economies than they have so far. 51. Although far removed from the Middle East, New Zealand is closely concerned with what goes on there. We have friendly relations with all Middle East countries and important trading relations with an increasing number of them. The United Nations has an important role to play in maintaining peace in that area and it must continue to play that role despite the frustrations it faces. For many years New Zealand has contributed observers to the United Nations Truce Supervision Organization. We welcomed the restoration of peace between Egypt and Israel. We wanted to see a peace-keeping force established in the Sinai under United Nations auspices but, since that was not possible, we agreed to contribute to a force that was acceptable to both Egypt and Israel. In that way, we hope we have made an appropriate contribution not only to the peace-keeping but to the peace-making process. 52. It is a matter of great concern to us that L at process has not continued as intended. New Zealand has consistently supported Security Council resolution 242 (1967). We believe that Israel is entitled to exist in peace behind secure borders. Equally, we believe that the Palestinian people are entitled to determine their own futures: and to establish their own State, if that is what they wish, following the withdrawal of Israeli troops from the occupied territories. We believe also that all foreign combat troops should be withdrawn from Lebanon. The innocent civilian population in that war-torn country has suffered long enough, if necessary, after the present temporary three-nation force is withdrawn from Beirut, the role ol' the United Nations peace keeping force should be expanded to stabilize the situation in Lebanon for as long as may be necessary. 53. In his report on the work of the Organization the Secretary-General has commented with admirable frankness on the shortcomings of the United Nations in carrying out its primary task of preserving international peace and security. He has suggested ways in which the Security Council might operate with more authority. We support those suggestions. We believe that a greater willingness on the part of the great Powers to work together rather than against one another is the key to a more effective Security Council. Nevertheless, the non-permanent members also have an important part to play. We take seriously the obligation conferred by the Charter on the Members of the United Nations to make their own contribution to the maintenance of international peace and security. It is with that obligation very much in mind that New Zealand has presented its candidature for membership of the Council at the forthcoming elections. 54. The situation in Kampuchea also remains of deep concern, h undermines the stability of Southeast Asia and adversely affects the security of our close friends in the Association of South-East Asian Nations. If unresolved, it carries the potential, by reviving great-Power rivalry in the area, to threaten the security of the wider Asia-Pacific region. More immediately the situation prolongs the human misery and suiting that have been a tragic fact of life m Kampuchea for too long. 55. New Zealand firmly believes that any lasting solution to the situation in Kampuchea will have to take into account their legitimate interests of all the parties concerned. We hope that the year ahead will see some progress. The formation of the coalition Government in Kampuchea is a step in the right direction. We have never condoned the crimes and atrocities of Pol Pot and his associates and we welcome the broader representation of the Kampuchean people in the Government of Democratic Kampuchea. 56. There is an important role for the United Nations in working out a settlement. We welcome the efforts of the Chairman of the /i J Hot Committee of the International Conference on Kampuchea as part of it. 57. Another year has passed without progress in relations between North and South Korea. Tension remains high in the peninsula and the diversion of resources to military purposes continues. Families are still separated and a unique and ancient society remains divided. New Zealand does not believe that this situation need or should continue. My Government's view is that the way forward is through negotiations between the Korean peoples themselves. We exhort the North Korean authorities to respond positively to South Korea's various proposals for steps towards national reconciliation. 58. With regard to Africa, my Government has followed closely the efforts of the five-member contact group to negotiate the withdrawal of South Africa from Namibia and permit the people of that country freely to exercise their right to self-determination and independence. Following the emergence of a Government in Zimbabwe reflecting the wishes of the majority, we expected to see more rapid progress towards the freeing of Namibia from illegal occupation. We hope that the situation will now be peacefully and speedily remedied and that the people of Namibia will very soon be able to decide their own future in free and fair elections. It is long since time Namibia took its rightful seat in the Organization. 59. New Zealand maintains its steadfast opposition to the system of institutionalized racism imposed by a minority Government in South Africa on the vast majority of its people. New Zealand has no diplomatic or consular representative in that country. For many years we have embargoed the export of arms to South Africa. In accordance with its obligations, as a member of the Commonwealth, under the Gleneagles Agreement my Government has consistently sought to discourage sporting contacts with South Africa. The great majority of New Zealand sport organizations, including the Olympic and Commonwealth Games Association have steadfastly refrained from such contacts. 60. It is time that the disgrace of apartheid was ended. It is an affront to human dignity. Tragically, the South African Government has ignored the calls of its own people and of the world that it dismantles the apartheid system and introduces one which upholds racial equality and respect for human rights and basic freedoms. Only then can South Africa resume a normal relationship with the rest of the world and play its proper role in a continent which has desperate need of its technology and resources. 61. I should like to end by saying something about the small island countries of the South Pacific and their problems. These are, after all, New Zealand's closest neighbors and friends. We have with them strong ties of history and culture. Many of their people have migrated to New Zealand but retain close links with their island homes. New Zealand's overseas aid program is increasingly concentrated in these countries. We welcome the fact that the great majority of the island countries have now achieved independence or an advanced stage of self-government. Some of them now speak with a distinctive South Pacific voice in the Organization. 62. it is good that self-determination in the South Pacific has been achieved peacefully. The process is, however, not yet complete. We welcome the progress that has taken place towards self-determination in the Trust Territory of Micronesia. We welcome also the program of reform which has been instituted by the French Government in New Caledonia. In common with our fellow members of the South Pacific Forum, we hope for quick progress towards the goal of self-determination for this Territory. We are actively promoting political development in the small island Territory of Tokelau and have welcomed visits by United Nations Missions to monitor its progress. 63. The fragile economies of small island States pose enormous problems for their development. The United Nations criteria for least-developed States take insufficient account of the problems of minute size, lack of resources and extreme isolation, which are common to many of these island States. New Zealand has sought to help overcome these problems by lowering trade barriers, promoting private investment and helping to develop regional shipping services. We have welcomed the increased involvement of the United Nations in the South Pacific area. But more outside help is needed, and the small size of the recipient countries should not deter the appropriate international agencies from making a more effective contribution than they have up to now. 64. One of the few significant resources which the South Pacific countries can export is fish. The most important part of this resource consists of the highly migratory species such as tuna. The establishment of the 200-mile economic zone under the United Nations Convention on the Law of the Sea offers the island countries the opportunity to exploit this resource for their own benefit. It is for that reason, among others, that New Zealand and other South Pacific countries are strong supporters of that Convention and look forward to its early entry into force. My Government will continue to urge the major industrialized countries to accept and become parties to the Convention. All South Pacific countries are naturally sensitive to the possibility of pollution of the surrounding ocean, for example by the dumping of nuclear waste. We are also strong advocates of the complete cessation of nuclear-weapons testing, especially in the Pacific. It is a matter of great regret and concern that the negotiation of a comprehensive test-ban treaty has virtually come to a halt. 65. New Zealand and its South Pacific neighbors will continue to press for the conclusion of a test-ban treaty. Such a treaty not only will remove a possible environmental threat from our own backyard, but will be an important step towards nuclear disarmament, which has seen no progress in the past year but becomes more urgent day by day.