I join other countries in congratulating you, Madam, on your assumption of the presidency. We in Singapore pledge our full support to you. The recent war in Lebanon had no clear victor. Israel succeeded in removing the immediate threat across the border, but could not wipe out Hizbollah. Hizbollah claimed victory, having survived Israeli air bombardments and ground action, even though enormous damage was inflicted on Lebanon. On both sides, innocent people have suffered greatly. Whether the present ceasefire can become a lasting peace depends on many factors, not least the ability of the Lebanese army and the United Nations Interim Force in Lebanon to maintain the buffer in southern Lebanon. But one thing is clear: without the eventual intervention of the United Nations, the fighting would have continued and more lives would have been lost. The Middle East is going through the throes of change. In Palestine, there is no escaping a two-State solution. However, defining the precise boundaries of that solution is a grinding process which will take time. No one can achieve all his demands; no party can insist on absolute security. A new balance is being established between Sunnis and Shiites in Lebanon, Iraq and elsewhere in the region. This will also take time. In many countries, there is tension between those who are impatient for change and those who believe that discontinuity will lead to chaos and anarchy. As long as there is more despair than hope, terrorist organizations will be able to find fresh recruits. What happens in the Middle East affects the entire world. No country is insulated, and certainly not from the terrorist threat or from high energy prices. No grand solution is possible. The end of the cold war marked the end of an era when the major Powers could settle the terms among themselves over the heads of lesser countries. It was not that long ago — but it seems so strange today — that a cold peace could have been maintained for decades by each side pointing tens of thousands of nuclear missiles at the other. Technology has changed the rules. Warfare has now become asymmetric. Cruise missiles and submarines cannot solve the problem of suicide bombers. And those who manipulate these terrorists might well take positions in global financial markets to benefit from the havoc that they create. In a sense, technology has globalized the world and broken it into smaller pieces. Empires have broken up. New countries have been born. In large countries, 06-53323 24 power has devolved downwards and regions have become more assertive. It has become a messier world, which presents new challenges to global governance. Improving global governance from above sometimes seems like an impossible task. Take the reform of the United Nations, for example: despite all the efforts made and the fine speeches delivered, the results have been quite modest. The near-collapse of the Doha talks is another example of how difficult it is to effect change from the top down. When the General Agreement on Tariffs and Trade was formed in 1948, there were only 23 members. Today, the World Trade Organization has 149 members. No country or group of countries seems able or willing to take the lead in brokering a compromise. We must hope that Director-General Pascal Lamy will succeed in his heroic efforts to rescue the Doha development round from failure. There are other areas in which global action is needed, but is insufficient. All of us worry about global climate change, but how can there be consensus when the costs and benefits are distributed so unevenly and the major polluters are unwilling to accept responsibility? We hear dire warnings from the World Health Organization about a global flu pandemic, yet our collective response is so feeble. While we should never give up hope on global initiatives, we should be realistic, because achieving global consensus in a multipolar world is, to say the least, challenging. When Governments have to win elections, they are more likely to respond to short-term political needs than to worry about long-term global concerns. We can often do more at the regional level: at the regional level, the stakes are clearer to our constituencies and the need for action is easier to explain. The Charter recognizes the role that regional arrangements can play in helping the United Nations to achieve its objectives. In a globalized world with porous borders, regional cooperation can often bring quick benefits. We need only consider, for example, the simple act of reopening, three months ago, after 44 years, the Nathu La pass in the Himalayas between China and India. Immediately, on both sides of the pass, ordinary people benefited from trade and travel. New problems will arise, of course, but they can be managed. All over the world now, regional initiatives are proliferating. Many overlap. Some are modest in their objectives, providing forums for public and private sector leaders to meet and consult. Others are more ambitious, creating regional free-trade areas or fostering joint efforts against problems like drug trafficking and terrorism. Many of these regional initiatives are open and inclusive, and should be encouraged. Those which are superfluous will gradually wither away. Some can make significant contributions to global governance and reduce the burdens borne by the big Powers. International organizations like the United Nations, the World Trade Organization, the World Health Organization, the International Atomic Energy Agency and the United Nations Environment Programme should work with them, strengthen their capabilities and encourage mutual learning. These initiatives create a habit of cooperation among neighbouring countries and reduce misunderstanding. In Asia, the role of the Association of Southeast Asian Nations (ASEAN) has not only been beneficial to the 10 countries of South-East Asia; it has also helped to create a larger architecture of cooperation. Founded 39 years ago, in 1967, when the war in Indo- China was raging, ASEAN began as a grouping to promote what then-President Suharto of Indonesia called “regional resilience”. The original five non- communist countries of ASEAN — Indonesia, Malaysia, Thailand, the Philippines and Singapore — were determined to keep the peace among ourselves and concentrate on economic development. Brunei Darussalam joined ASEAN in 1984 after it became independent. With the end of the cold war, peace returned to Indochina and ASEAN gradually expanded to include the newer member States of Viet Nam, Cambodia, Laos and Myanmar, to become what it is today: a community of 10. In 1992, the countries of ASEAN decided to establish a free trade area in stages. For trade in goods, we have largely attained our objectives. For investment and services, we still have some way to go. But there is considerable political will to press on and make the whole of ASEAN one economic space. Already, ASEAN as a grouping plays a major role in international trade, accounting for some 6 per cent of total world trade. The re-emergence of China and India as major Powers presents us with opportunities as well as challenges. ASEAN’s trade with both is growing rapidly. But they are also a competitive challenge to us. 25 06-53323 When the leaders of ASEAN met in Bali three years ago, they took a major decision: to establish an ASEAN Community by 2020 with three main pillars — security, economic cooperation and cultural cooperation. To create such a community, an ASEAN charter will be drawn up next year to provide the legal basis for our future integration. It will include provisions for dispute settlement by independent panels. The European Union is an inspiration to us in ASEAN. Two months ago, the European Commission hosted members of an ASEAN eminent persons group and generously offered advice and assistance. While ASEAN integration will never be as deep or as broad as that of the European Union, there is much that we can learn from the European experience. For ASEAN to prosper, it is important that we maintain good relations with all the major Powers. For many years now, ASEAN has promoted good relations with our dialogue partners, including the United States, the European Union, Russia, China, Japan and India. With strong growth in global trade, ASEAN has negotiated or is in the process of negotiating free trade agreements with China, India, Japan, Korea, Australia and New Zealand, and closer economic partnerships with the United States and the European Union. We have a simple strategy, which is to give all of them a strong stake in our unity and in our development. Strategically, some of the most important sea lanes pass through ASEAN waters. About a third of global trade, half of global oil trade and 80 per cent of the oil bound for China and Japan pass through the straits of Malacca and Singapore. Through the ASEAN-plus groupings and the East Asia Summit, which includes China, Japan, Korea, India, Australia and New Zealand, we are creating a new architecture of peaceful cooperative development in the larger Asia. ASEAN is not big enough to be a major global player, but ASEAN plays a significant role in holding Asia together and keeping it open to the rest of the world. Whatever we do in Asia must not cause the United States, the European Union or Russia to think that we are excluding them. ASEAN is a work in progress. Like other regions in the world, we face many problems, related to economic development, separatist movements, terrorism, drug trafficking, environmental degradation, maritime security, ethnic and religious divisions and avian flu, among other issues. However, what each of us in ASEAN has come to appreciate is that, without ASEAN, each of these problems is much harder to solve, and that ASEAN alone cannot solve any of them: we have to be united and work with other countries and with international organizations. We are grateful for their assistance, their partnership and their cooperation. Madam President, ASEAN strongly supports you and the United Nations. We will work with you to improve the workings of the United Nations and to make it more effective. In this regard, ASEAN continues to endorse the candidature of Mr. Surakiart Sathirathai as the next Secretary-General despite the recent coup in Thailand. Although the coup was a setback to both Thailand and ASEAN, Thai society has a deep resilience which will enable it to recover quickly. ASEAN will always be on the side of the Thai people. If every region in the world, working with the United Nations, can help to stabilize its own immediate environment and promote favourable conditions for development, the prospects for global peace will be enhanced. What the nations of Africa have been able to do despite adverse circumstances is impressive. The willingness of individual African countries to agree on common positions is unique to that continent and is an inspiration to the rest of us. The United Nations is already stretched and can only do so much. Instead, let us, in each of our regions, do our part and work with the United Nations and its organizations in a complementary way. In order to stop the killing Darfur, for example, we need close cooperation between the United Nations and African countries. Wherever possible, regional organizations should be strengthened. The United Nations and other international organizations can play a facilitating role, provide resources and advice, set standards and establish benchmarks. Even in the Middle East, where the work often seems hardest, regional cooperation can help create a better environment for peace and development. For example, the reconstruction of Iraq will be much more difficult, if not impossible, without the goodwill of its neighbours. With over 500 million people, ASEAN has 8 per cent of the world’s population. Our share of global gross domestic product is much lower, at 2 per cent. 06-53323 26 But within the limits of our modest capabilities, we in ASEAN will do our part to contribute to the good work of the United Nations in making this a better world, not adding to its problems.