I wish to join other delegations in congratulating you, Sir, on your election to the presidency of the General Assembly at its fifty-second session. I am sure that, with your vast experience and diplomatic skill, this Assembly will be guided towards achieving the goals to which all peace-loving nations aspire. I also take this occasion to thank your predecessor, Ambassador Razali Ismail, for the efficient and energetic manner in which he presided over the Assembly at its fifty-first session. As we approach the dawn of a new millennium, the international community continues to prepare itself for the new challenges that the twenty-first century will inevitably bring. Malta welcomes the commitment of our evolving United Nations, ably led by Secretary-General Kofi Annan, to become more responsive to and effective in meeting these new challenges. Similarly, we share his perception that the United Nations is at a moment of great opportunity. There should be little doubt that, with the demise of bloc politics, the way has been opened for a world more at ease with itself. Tension on a global scale has diminished. At the same time, global instability has been replaced by regional tensions that have often led to ethnic and other localized conflicts. In our interdependent world, the United Nations has a significant role to play in the promotion of understanding and cooperation, which are essential elements for the survival of humankind. For its part, Malta is ready to work closely with all Member States to strengthen our capacity for collective action in the best interests of the States and peoples of our countries, particularly in upholding the principles of the Charter of the United Nations. Our commitment to fundamental rights and the process of democracy is unwavering. Malta looks forward to the establishment of an international criminal court in Rome in 1998. Earlier this month, Malta was honoured to host an international conference on this initiative, which we strongly support. Our commitment to the setting up of such a court stems from the fact that this court would be a landmark development in the creation of a balanced and effective system aimed at ensuring that international crimes, 5 especially mass violations of basic fundamental human rights, do not remain unpunished. We strongly believe that no country can enjoy peace and prosperity in the true sense of the word unless fundamental human rights are respected and unless the State adopts a democratic system of government. Likewise, Malta is committed to an international policy that promotes disarmament and supports all measures that militate against the proliferation of weapons of mass destruction, including nuclear, chemical and biological weapons. Malta fully supports current efforts being undertaken to ban the production and use of anti-personnel landmines. Eleven months to the day after a democratic change of Government in Malta, I must take this occasion to affirm our commitment to peace, to cooperation among all nations and to the pursuit of economic prosperity in a context of social justice. Placed as it is at the southern rim of Europe and at the geographic and strategic centre of the Mediterranean, Malta stands by its commitment to the ideals of European integration as well as to those of Mediterranean unity. We believe that both these sets of ideals are of vital importance, while being complementary and in the best interests of all Mediterranean and all European peoples. In following up on these ideals, we have proposed to the Maltese nation a vision of a role for Malta that tangibly affirms the island's neutrality, in order to remove once and for all any perception that Malta could be of any threat to any of its neighbours, north or south, west or east. Within this context, our vision projects for Malta a role that, subject to our clear limitations of size and resources, actively seeks to help build political, economic, social and cultural bridges between all our neighbours and other peoples of the Euro-Mediterranean space. Indeed, Malta's foreign policy has three important constituents. It is a foreign policy based on cooperation with neighbouring countries, free of alignments yet open and friendly to all; supported by an economic strategy based on high-quality production and the provision of high- quality services; and endeavouring to pursue excellence and reliability in all that it seeks and undertakes. Malta's foreign policy priority is to maintain the best and most transparent relationship possible with all of our neighbours in the Euro-Mediterranean region and beyond. Our active neutrality foreign policy agenda aims to deepen our ties with the European Union in a meaningful manner while implementing an active Mediterranean policy to encourage regional cooperation and unity. Indeed, the Government of Malta aims to forge the closest possible relations with the European Union by negotiating ties in the form of a free trade area coupled with a long-term political and security cooperation agreement, and cooperation in technical, economic, financial and social affairs. We are equally committed to build upon our Mediterranean identity and heritage by seeking to further spur intra-regional networks of cooperation. Malta strongly believes that such cooperation, based on dialogue and mutual understanding, will contribute to a peaceful Euro-Mediterranean region where Malta is ready to act as a catalyst to bring together the diverse civilizations of the Mediterranean littoral. It is in this spirit that Malta speaks of and promotes its active neutrality. We seek and promote peace and stability in a troubled and complex region. Malta presents no threat of any nature to anyone. At the same time, Malta extends to all of its neighbours the engagement and commitment of an honest broker, an intermediary or simply a venue for dialogue and discussion, in the search for a solution to the many problems which beset them. The Government of Malta is determined to be proactive in the quest for peace, and, in this context, we are determined to enhance the trust needed to act in the best interests of all of our societies. Malta's neutrality is indeed validated by our geostrategic position in the centre of the Mediterranean, where political uncertainties, socio-economic disparities and diverse cultural traditions all are contributing to an area that remains plagued by tension and instability. Far from being ideologically motivated, Malta's neutrality is therefore a direct response to the very specific and unique geopolitical factors that currently exist in the surrounding region. The Government of Malta believes that its strategy of active, site-specific neutrality enables it effectively to promote stability and understanding across the Euro- Mediterranean region. Moreover, this status of neutrality will continue to serve Malta's self-interests precisely because it will also serve the best interests of the European Union member States and of our Mediterranean neighbours. 6 For Malta, the Mediterranean has been and continues to be an integral element in our national development programme. Malta's active participation in international and regional forums is perhaps best described as an extension of its cooperative security philosophy. The Mediterranean is a microcosm of today's multipolar world. The region epitomizes many of the problems associated with the North-South debate. These include maritime safety, maritime pollution, illegal migration, terrorism and weapons proliferation. Malta is particularly concerned at the ever-widening demographic gap and the ever-widening economic disparities in the Mediterranean region between the affluent North and the underdeveloped South. Poverty, combined with a lack of job opportunities and deteriorating living conditions, is fueling extremist tensions throughout the Mediterranean. Malta lies at the crossroads of the Mediterranean and therefore believes it can act as a focal point in the effort needed to attract the necessary attention and resources to tackle security challenges in the region. The Mediterranean is still dominated by areas of tension and conflict, which require our constant vigilance. Israeli-Palestinian relations, the Cyprus question, the situation in the former Yugoslavia, the sanctions against Libya, the situation in Algeria and other issues continue to create political tension, which is unfortunately escalating and therefore creating a sense of urgency in the finding of immediate and enduring solutions. My Government thus believes that the perceived threats to stability and therefore to security in the Mediterranean are more of a political, environmental, economic, social and humanitarian nature than of a military one. An important dimension of my Government's foreign policy is directed towards the fight against drug-related matters: illicit trafficking, money laundering and organized crime. As a transit country, Malta could easily be open to involvement in the web woven by drug traffickers. Nevertheless, Malta is more determined than ever to face up to this challenge, which is threatening the very fabric of our societies. Malta calls upon the international community for support in our efforts to eradicate this social plague. The Government of Malta believes that the creation of a nuclear-weapon-free zone in the Mediterranean, established on the basis of arrangements unanimously agreed to by all the States of the region, would inevitably contribute to peace and stability in the Mediterranean. This fact was acknowledged by the 1995 Review and Extension Conference of the Parties to the Treaty on the Non- Proliferation of Nuclear Weapons (NPT), when the creation of such zones was encouraged. The ultimate objective of Malta's Mediterranean policy is the transformation of the region into a politically stable and an economically prosperous, demilitarized and nuclear-free zone. In this respect, Malta intends to make maximum use of its contacts and available diplomatic representation at the United Nations and in other international forums to promote its political objective of the Mediterranean Sea as an area of peace and stability. Through regular diplomatic interaction with other Member States at the United Nations, as well as through a more active interchange and collaboration with the Office of the Secretary-General, Malta intends to keep questions relating to the Mediterranean high on the international agenda. Earlier this year Malta was host to the second Euro- Mediterranean Conference, at which 27 States from Europe and the Mediterranean held their second ministerial meeting in as many years to forge a Euro- Mediterranean partnership, an event which in itself has far-reaching significance. The Malta Conference reiterated that the serious and deep-seated problems of our region need to be tackled through a process of dialogue and common action, extending over a period of time and covering a whole range of interrelated issues. It is Malta's conviction that this process has generated a political commitment that will effectively contribute to the removal of the misperceptions and prejudice that still exist in the region. In its document on foreign policy published before Malta's last general elections, held in October 1996, the Malta Labour Party stated that for the United Nations to improve its credibility and authority, it must improve its structure, its administration and its competence. Above all, it is hoped that this world Organization will develop a more efficient mechanism by which it could implement and execute its decisions more rapidly and effectively. That is why Malta today supports the initiative of the Secretary-General in presenting his report to the General Assembly and congratulates him for what we consider to be proposals of an unprecedented and comprehensive nature. This annual gathering provides the perfect setting for the international community to come together and take stock of the previous 12 months and to identify, as 7 precisely as possible, the challenges that lie ahead. We believe that three types of trans-national security challenges require our immediate attention. These are the war on drugs, environmental degradation and the eradication of poverty. Unlike the immediately visible effects of war, these three challenges cannot always be defined with sufficient clarity, although they have a potential for destruction that is equivalent to that of war. Malta sees each of these areas as a far-reaching hazard which threatens the very fabric of our economic, human and environmental habitat, leading to instability and presenting real threats to our security. The first challenge concerns the scourge of illicit drug trafficking. Countless human lives are being ruined and wasted to satisfy the greed of a few. This is an unacceptable situation. Malta believes that the United Nations system is well placed to coordinate this fight through appropriate and effective measures. We therefore welcome the recommendation of the Secretary-General that the functions of the Commission on Crime Prevention and Criminal Justice and the Commission on Narcotic Drugs be consolidated into a single commission under arrangements that will fully preserve the treaty-based functions entrusted to the latter. The second challenge we are facing on the threshold of the twenty-first century is the reconciliation of environmental concerns with development needs. The common concerns and mutual interests of the international community in promoting sustainable development, and at the same time protecting our environment, cut across national boundaries. The problem of the environment is no less relevant to Mediterranean countries. Sound management of Malta's coastal and marine environments is of crucial importance for an island State like Malta. The pressures exerted on the Mediterranean environment as a consequence of its being an important maritime highway and a tourist destination are of particular concern. We believe that solutions to common environmental problems are best found through an integrated regional approach. My Government is firmly committed to a proactive role in supporting regional initiatives in the Mediterranean for the conservation and sustainable management of its natural marine habitat. Malta has contributed actively to this process in the past, within the context of the Mediterranean Action Plan of the United Nations Environment Programme (UNEP) and the Barcelona Convention, the most recent initiative being the setting up of the Mediterranean Commission for Sustainable Development. Malta intends to strengthen its participation in that Commission as well as to contribute to the fullest extent to the Mediterranean environmental programmes within the context of the Euro-Mediterranean process. Malta fully supports the efforts of the Organization in the promotion of environmental protection and the sustainable use of the world's natural resources to ensure a more equitable distribution of wealth, and of an international trade regime free of restrictive or discriminatory practices. Together we must adopt an effective course of action for the coming years that will create the right balance between the need for human- centred and socially just development and the need to ensure the sustainability of our natural environment. In the five years since the United Nations Conference on Environment and Development, not much, unfortunately, has been achieved. Last June's special session made an in-depth appraisal of the progress achieved, defined future priorities and helped to raise the issue of sustainable development higher on the political agenda. We acknowledge that all of us — developed and developing, rich and poor — share a common interest in the pursuit and attainment of development, which must be sustained, equitable and integrated. In the words of the Secretary-General, development is “a pillar of peace, a foundation of stability, and a powerful force for preventive diplomacy and preventive action”. [Press release ECOSOC/5708] However, our third challenge is what I consider to be the most complex. For years, the international community has been trying to come to grips with the perennial problem faced by millions and millions of the world's population: poverty. The ever-increasing disparities between the haves and the have-nots have reached alarming proportions. The cold war and East- West division have been superseded by a post-cold-war North-South divide. Though many had predicted this development and called for a concerted effort to deal with the issue, little has been done to try to reverse this trend. Poverty still reigns supreme. Aggravated poverty, hunger and malnutrition are a paradox of our times. A fifth of the world's population, or 1.3 billion human beings, live on incomes of below a dollar a day, and over 50 per cent of the world's population have less than 5 per cent of total global income. 8 The United Nations system is uniquely placed to deal with such intolerable and acute problems. This Organization must dedicate more attention and more time to coordinating effective action to alleviate the suffering and the degrading environment in which billions of citizens still live. It is time to act firmly and unequivocally to halt the aggravation of this situation, which is fast becoming a latent source of political instability in the world. Malta believes that as we enter the new millennium our Organization must become more relevant; it must become more democratic. Today's setup reflects the past. In a world where everyone is speaking about democracy, the right and the use of the veto become anachronistic. Malta is of the view that the use of the veto should be curtailed with a view to its eventual elimination. Malta is not in favour of extending the right of veto. On the issue of the expansion of the Security Council, Malta believes that the Charter of the United Nations considers all States to be equal, and therefore it follows that though we should have a more representative Security Council that reflects today's membership of the United Nations, this can easily be achieved by increasing the number of non-permanent seats to the Council. My Government has carefully examined the Secretary- General's report on renewing the United Nations, document A/51/950. We agree on the need for more efficiency and greater cost-effectiveness. At the same time, we feel that, as the Organization is a unique body, its tasks and successes cannot be measured solely in monetary terms. Here, I would like to highlight two important areas of the Secretary-General's report. In paragraph 108 it is stated that when imposing sanctions the Security Council should give more consideration “to making these sanctions more effective in achieving the goal of modifying the behaviour of those targeted, while limiting the collateral damages. There is also a need to address the broader humanitarian and economic effects of sanctions, as well as objective criteria in their application and for their termination”. [A/51/950] Malta finds itself in total agreement with this statement. While supporting the use of fair sanctions, imposed appropriately and for the minimum period of time possible by the United Nations in its task of guaranteeing international peace, we feel that the decision to impose sanctions, especially those which will ultimately affect the whole population of a given country, must be justified and that they should be imposed only as a last resort. In another area referred to by the Secretary-General in his report, Malta would like to see the Secretariat's Department of Political Affairs dedicate more time and attention to the situation in the Mediterranean region. In this context, consideration should be given to the establishment of a Mediterranean desk within that Department. The creation of such a desk would facilitate contacts and the Department would thus assume a more direct role in the implementation of the relevant provisions of resolutions adopted by the General Assembly on the strengthening of security and cooperation in the Mediterranean. Malta's contributions in the search for peace, security and cooperation for the benefit of mankind are well recorded in the annals of the history of this Organization. Malta's initiatives on the law of the sea and climate change and the recent initiative on the new role to be given to the Trusteeship Council are witness to the esteem and dedication which Malta attaches to its role in this Organization. Malta is a small island State. Notwithstanding this, we look upon the United Nations as the forum where countries such as ours can express their views and where the principle of the equality of States is enshrined and protected. For us, this Organization has much significance and for this reason Malta intends to support the Secretary- General in his quest for urgent reform. The more efficient and relevant the United Nations becomes, the better our interests are served. My Government will continue to give its wholehearted support to the United Nations, its agencies and its programmes. Many of the problems and challenges which will face us in the third millennium can be overcome only through the concerted efforts of all Member States and through a better, more efficient and more effective United Nations.