It is with great pleasure that I speak today, before this esteemed forum for international dialogue, on behalf of my country, the Republic of Paraguay. First of all, I would like to congratulate the President of the General Assembly and to extend to him my best wishes for success in the important task of guiding the work of the fifty-third session of the General Assembly of this Organization. I also have the pleasure to greet the Secretary-General, Mr. Kofi Annan, and to extend to him, on behalf of the people of Paraguay, our congratulations on his excellent fulfilment of his important mission. As the century comes to an end, so does a decade that has been for the world, and particularly for nations such as mine, a period of far-reaching and vertiginous transformation. In 1989, after almost four decades of authoritarian rule, Paraguay regained its democracy. Since that time, a great number of profound and dramatic changes have taken place in the process of reaffirming our democracy, a process that today, I am pleased to announce, may now be considered definitively consolidated, since for the first time in 50 years a civilian President has transferred the presidency of the Republic to another democratically elected civilian. This is an essential milestone in the recent history of our freedom and a striking testimony to the Paraguayan peopleâs firm and irreversible commitment to this system of government. We took over the administration of a country with major economic, social and moral problems, but, faithful to the peopleâs mandate, we will make the decisions that we deem appropriate and fitting to reactivate our economy, restore international confidence in Paraguay and, finally, ensure the sustainable and equitable development of its people. This, today, is my commitment, and I will dedicate all my devotion and labour to it, though I am aware that this effort would be in vain without the understanding, solidarity and support of my people, as well as the involvement and cooperation of friendly countries. In this regard, my Government has pledged to carry out a State agenda that is pragmatic and realistic. Its priorities will include restoration of the peopleâs faith in their leaders through transparent, coordinated actions whose immediate effects will, in the short term, result in greater well-being for the population. We will also carry out an all-out war against poverty by doing away with the privileges that engender injustices and intolerable inequalities. Another priority will be a rapid economic recovery through the implementation of social programmes and the construction of an infrastructure of all-weather roads, which will expedite and reduce the cost of the rapid transport of goods produced in rural areas to trade centres. We will also initiate programmes to provide inexpensive housing for a large sector of the population. We will give priority to the fight against crime in all its forms, focusing on the elimination of the scourges of drug-trafficking and the piracy and illegal appropriation of intellectual property. The concrete actions we have taken during our first month in office have clearly shown our firmness, determination and commitment in this regard. Another priority will be combating impunity, one of the ills that eats away at our society. We will be assiduous in the rigorous application of the law, which is the inevitable framework for ensuring confidence and development, particularly against those who profit from State resources, depriving the rest of the community of their legitimate chance to aspire to a better standard of 7 living. Exemplary measures will be adopted to address premeditated crimes in the economic and financial sphere. We trust that these measures, along with those for the protection of private property and an adequate framework of incentives and security for foreign investment, will assist us in recovering Paraguayâs international credibility and will bring in the flow of cooperation and investment necessary for our desired development. The reform of the principal organs of the United Nations — the General Assembly and the Security Council — is of the greatest importance to us. We have participated in the work of the Working Group on Security Council reform, and once again I wish to emphasize the importance we attach to the expansion of the Council in both of its categories; if the number of permanent members is increased, the number of non- permanent members must be increased as well. This increase must include Latin America and the Caribbean and the other regional groups, without any discrimination. We believe that the effort undertaken by the United Nations with regard to item 155 on the Assemblyâs agenda — “Measures to eliminate international terrorism” — is of the greatest relevance. Paraguay vehemently condemns and rejects such acts of international terrorism as the attacks on the American embassies in Kenya and Tanzania. In this respect, we wish to express our conviction that any international action to prevent and subdue terrorism must be carried out in full and complete compliance with international law. Another scourge, generally related to terrorism, is that of drug-trafficking, to which I have already referred. In this context, I must add that we are convinced that this is a problem of shared responsibilities among all countries involved, producing, transit and consuming countries. Our position on this point was clearly stated in the Declaration of the Twelfth Meeting of Heads of State and Government of the Rio Group, held in Panama City. We welcome initiatives such as resolution 49/96, on horizontal economic cooperation and other modalities for cooperation among developing countries. We must also mention last yearâs Declaration and Plan of Action of San José, Costa Rica, which defines specific modalities for dealing with sectoral problems relating to cooperation in the spheres of trade, investment, finance and business. However, we feel that the United Nations system should identify mechanisms, such as economic and technical cooperation, that will enable it to strengthen integration more effectively, and adopt decisions aimed at providing increased assistance. In this regard, my country will support such measures as will, in a more effective and coordinated manner, interest all participants — particularly private-sector participants — in the development process. We also endorse strengthening the United Nations to increase efficiency within the institutions of the Organization. If our Government programmes focus on supporting development with social justice we can give our peoples democracy, freedom and respect for human rights. However, we cannot ask our peoples to fight for development, to make greater sacrifices, if they do not see similar trends towards change and a unified commitment on the part of the international community. Complying with our commitments made at the Summit for Social Development, Paraguay intends to achieve the goals set there. In this regard, I am pleased to state that the priorities of our Administration include the social development of the country; reduction of the unemployment rate; the eradication of poverty; preservation of the environment — a commitment to our future generations; heeding the demands of our youth; and supporting the advancement of women and of integrated societies. Based on the fundamental principle of universality, the Republic of Paraguay feels that the United Nations system must welcome, without exception, all States that meet the requirements of the San Francisco Charter. Given this, and bearing in mind the elements that make up a State as well as other essential considerations, Paraguay feels that the proposed participation of the Republic of China in the United Nations and all its related bodies must be considered. This is what we would do with any other State that met the requirements of the Charter. I would now like to refer to one of the most important strategies for the socio-economic development of my country: its participation in the Southern Cone Common Market (MERCOSUR), which is a fundamental objective of our foreign policy. The achievements of MERCOSUR, which was created in 1991 through the Treaty of Asunción, as part of the process of integration, are a matter of pride for our four countries — Argentina, Brazil, Uruguay and Paraguay — as well as for Bolivia and Chile. These achievements have encouraged us to renew our efforts, certain that the political will that has guided us so far will lead us to achieve the goals that we have set for ourselves: to strengthen and consolidate the Customs Union and to move towards a greater level of integration. Moreover, it is encouraging to note that the path we chose in 1991 has attracted more and more interest from an increasingly globalized world. In this regard, MERCOSUR has shown its openness to dialogue, in particular with the sister countries of Latin America. We are not a closed community, but, rather, are open to initiatives that will promote economic, political and social cooperation. In this spirit, we are giving particular attention to the negotiations initiated to establish a free-trade zone for the hemisphere and to the negotiations we intend to hold in the near future with the European Union. The recent crisis in financial markets in South-East Asia and Eastern Europe, which have in turn threatened the stability of the financial markets of emerging economies, are a disturbing feature of todayâs international scene. It was mentioned in the Declaration of the Twelfth Summit of the Heads of State and Government of the Rio Group, held in Panama City, in which the position of the signatory countries is clearly expressed. A great deal of hope has been placed in the work carried out by this Organization. We are on the threshold of a new millennium; the twenty-first century looms on the horizon, rich with opportunities and challenges. Our societies are suffering from the crisis of the birth of a new era, a new order, because we are not all yet adequately prepared to confront it. Therefore, our societies demand leadership from the United Nations. The conclusions, recommendations and actions that may come from this Assembly could be of fundamental importance for our immediate future. The problems emerging from the increase in globalization and interdependence, as well as the dizzying speed with which changes are taking place in the world, affecting all aspects of the human condition, force us inexorably to confront the challenge of finding the most ideal mechanisms for dialogue, understanding and effective and united international cooperation. We trust that the United Nations will be capable of meeting this challenge.