Let me begin by expressing my warmest congratulations to Mr. Razali Ismail on his election to the presidency of the General Assembly as well as my best wishes for his success. I am pleased also to take this occasion to convey my sincere appreciation to His Excellency Mr. Diogo Freitas do Amaral for the excellent manner in which he guided the proceedings of the Assembly during the previous session. We wish also to pay tribute to the Secretary- General, His Excellency Mr. Boutros Boutros-Ghali, for his invaluable contribution and his tireless efforts in effectively steering the Organization. Despite many difficulties and financial problems, the United Nations is striving to play its irreplaceable role in the service of peace and security through peacekeeping operations and the promotion of international cooperation. The United Nations Blue Helmets have already become symbols of hope in the major areas of conflict throughout the world. The Albanian Government sincerely hopes that a lasting peace will be established in Bosnia and Herzegovina, Afghanistan, Tajikistan, Burundi, Liberia, and everywhere else. The United Nations is undergoing the most severe financial crisis in its history. This year alone, the Organization ran out of money in its regular budget three times and was therefore forced to borrow funds from its peacekeeping operations budget. The tasks of today and the challenges of tomorrow require a general reform of the entire United Nations system. Albania has actively participated in the debate on the preparatory process to reform the Security Council within the framework of the Open-ended Working Group on the Question of Equitable Representation on and Increase in the Membership of the Security Council. Albania is in favour of increasing the size of the Council by two permanent seats: Germany and Japan. We also believe that options should be considered that relate to a broader representation of Member States, in order to make the Council more efficient and better able to fulfil its mandate. Revitalization of the Economic and Social Council must be part of the reform process. We all firmly believe that as long as wide economic gaps exist between North and South, and East and West, several peoples and countries will face key problems related to their survival, and risks of tension, conflicts and regional hostility will prevail. For this reason, reform of the Security Council will not aid the cause of global peace and stability if it is not accompanied by an equally effective reform of the Economic and Social Council. After a long 50 years of communist rule, Albania has now been a democracy for five years. During this period of democratic reform, it has had to face innumerable major problems, including its communist heritage, with its associated spirit of class struggle; and its extreme poverty and strict isolation. The country’s transition was rendered yet more difficult by the situation in the region, which was weighted down by the crisis in the former Yugoslavia and the related application of the sanctions regime for several years. Nonetheless, Albania has been able to evolve from a one-party to a multiple-party system; from repression to the establishment of a State based on the rule of law and on respect for human rights and minorities; from a highly centralized and depressed economy to a growing, free- market economy; and from isolationism to openness to Euro-Atlantic integration. Albania’s gross domestic product has increased annually, from 11 per cent in 1992 to 15 per cent in 1996. Inflation fell 400 per cent in 1992 and now stands at 7.5 per cent in 1996. Our national currency’s exchange rate has gained some stability, and our foreign debt has been paid. Although five years ago the economy was totally centralized, privatization is now proceeding rapidly in all the major economic sectors; at present 75 per cent of overall production comes from the private sector. The unemployment rate has dropped from 39 per cent in 1992 to 12 per cent in 1996. Within four years, Albania was able to completely liberalize prices. Clearly, transforming a centralized economy into a market economy is difficult and sometimes painful, especially for certain economic sectors and for certain segments of the population. I should like to take this opportunity to again sincerely thank the European Union, the United Nations Development Programme (UNDP), the World Bank, the European Bank for Reconstruction and Development, the International Monetary Fund and a number of United Nations specialized agencies for the valuable assistance they have provided to my country during this period of transition. We are confident that these institutions will continue to help Albania. Over the past four years, Albania’s prestige in the international arena has increased considerably, giving proof of its priority Euro-Atlantic orientation. Albania is already a member of the Council of Europe and an active participant in the Partnership for Peace, and is working for its full integration into the North Atlantic Treaty Organization and the European Union. In this regard Albania highly appreciates the support of the member States of the European Union and is convinced that the time has come to accelerate the process of Albania’s integration. We also welcome the current progress being made in solidifying our relations with the United States, which the Albanians consider to be the champion of democracy and freedom. We are confident that these relations, which are of great importance to Albania, will continue to develop. Albania’s regional policy is based on a desire to promote peace and stability in the Balkans. Given the geo-strategic position of Albania, the deteriorating situation of those Albanians living in exile in other Balkan countries, and the prolonged crisis in the former Yugoslavia, the Albanian Government’s significant contribution to regional peace and stability demonstrates its willingness to establish regional cooperation in line with Euro-Atlantic trends. Determined to continue this policy and to increase its contribution, Albania hosted the first Conference of South-Balkans Defence Ministers, which served as a first step leading to the Conference of the Ministers for Foreign Affairs, held in Sofia some months later. As part of this contribution, my country has just established a peacekeeping unit, now serving in Zadar, Croatia within the framework of the Implementation Force (IFOR). The Albanian Government continues to believe that the question of the Balkans requires greater attention by the international community and by the United Nations in particular. The bitter history of the region and the prolonged conflict of recent years have proved clearly that the threat of war always looms large in countries where ultra-nationalism and chauvinism hold sway. We all are aware of the importance of the Dayton Agreement in resolving the conflict in the Balkans. We have always stressed the importance of identifying the major cause of that conflict: Serb ultra-nationalism. While making a serious effort to assist in the implementation of the Dayton Agreement, the Government of the Republic of Albania wishes once again to draw the attention of the United Nations to the serious problem of Kosovo. In the 1980s, Kosovo — more than 90 per cent of whose population consists of Albanians who have lived on their own territory for thousands of years — was the first to speak of the danger that Serb ultra-nationalism posed to the territories of the former Yugoslavia. National chauvinism; ethnic intolerance; racial, economic and religious discrimination; “ethnic cleansing”; and acts of violence and repression against an entire population — characteristic features of Serb policy — were demonstrated for the first time in 2 Kosovo. In fact, the crisis in the former Yugoslavia began in Kosovo, though at that time the international community paid scant attention to what the Albanians were saying. It was not until the crisis became a bloody conflict in Bosnia and Herzegovina that proper attention was paid. The Kosovo issue must be duly examined and treated in the spirit of the Dayton Agreement. It is now considered one of the serious international issues that must be resolved, and it has been the subject of several documents and decisions of the Organization for Security and Cooperation in Europe and of the United Nations. However, the situation in Kosovo is still tense and volatile. The fact that up to now an armed conflict between the Albanians living in Kosovo and the Serbs has been avoided — or rather, resisted — is primarily the result of the peaceful policy pursued by the legitimate political representatives of the people of Kosovo, and of the foreign policy of the Albanian Government. We believe that Kosovo deserves a status that reflects the political will of its people as well as the international instruments relating to the right of peoples to self- determination. The agreement on education in Kosovo, recently reached by representatives of Kosovo and Belgrade, is a promising step towards further efforts fully to guarantee the Kosovo Albanians basic freedoms and human and national rights. The Government of the Republic of Albania believes that through constructive dialogue, in the presence of a credible international third party, a solution to this acute problem can be found. We thank the General Assembly for its consideration of the situation in Kosovo, particularly through its resolutions 49/204 of 23 December 1994 and 50/190 of 22 December 1995. We would like to take this opportunity to appeal once again to the international community to continue its efforts until this issue is definitively resolved. Albania’s foreign policy is characterized by efforts to establish good relations with its neighbours. Albania has always been in favour of peace, stability, and economic and cultural cooperation with its neighbouring countries. Albania and Greece have been able to establish good relations, which are expanding and strengthening. The Government of the Republic of Albania and the Albanian people are grateful to the Government and the people of Greece for having supported us during our difficult period of transition. The current positive developments in Albanian-Greek relations show, to our great pleasure, that in bilateral relations all problems can be solved satisfactorily and within a reasonable time-frame if there is political good will and a serious commitment by both sides. The friendly relations between our two countries are concrete testimony of the achievements of both the Greek and the Albanian Governments. Good relations between two neighbouring countries such as Albania and Greece show that the existence of national minorities in neighbouring countries can serve as a bridge of friendship and become a connective link between countries. The recognition and equal treatment of national minorities, coupled with respect for the independence, sovereignty and territorial integrity of each State, are essential elements in such relations. The Albanian Government has taken steps to show its interest in establishing mutually beneficial relations with the Former Yugoslav Republic of Macedonia. Albania was among the first countries to officially recognize that State, while at the same time assuring it of our readiness to work with it to establish stronger relations in all fields, independently of the problems relating to the situation and the position of those Albanians living in that State. My country believes that the normalization and improvement of relations with Serbia and Montenegro depends on Belgrade taking certain steps, such as respecting the Dayton Agreement, taking concrete measures to put an end to the violence against and the suppression of the rights of the Albanians in Kosovo, and making a serious commitment to a peaceful solution to the Kosovo question. Albania attaches particular importance to its relations with its western neighbour, Italy. This ancient relationship has lasted as long as our peoples have lived in the Mediterranean. In the framework of the European Union, Italy has been one of the main donors to Albania. We are very grateful to the Italian Government and people for the tremendous assistance they have given our country during this difficult period of transition, and for the spirit of good will that has always prevailed in our relations. We believe these things provide a solid basis for further positive developments in the future. Before concluding my address before the Assembly, allow me to assure members, on behalf of the Albanian Government, of our continued support for the activities of the United Nations. We will continue to contribute to the strengthening of the Organization and of its irreplaceable role in the service of peace, security, progress and democracy throughout the world. My small country, Albania, will always be committed to contribute actively to all the work of the Organization. 3