At the outset, I wish to express, on behalf of His Majesty’s Government and the people of Nepal, and on my own behalf, our profound condolences to the Government and the people of the United States, as well as to the families who lost their loved ones in the unfortunate crash of American Airlines flight 587 on 12 November. Let me congratulate you, Mr. President, on your well-deserved election to steer the fifty-sixth session of the General Assembly. My felicitations also go to the other members of the Bureau. I also congratulate the Secretary-General on his election to a second term and on being awarded this year’s Nobel Peace Prize, together with the United Nations. We are meeting against the backdrop of the 11 September terrorist attacks that took innumerable lives and caused colossal damage in our host country and host city. The Nepalese people express their full solidarity with the American people in this hour of grief and support the American-led war on terror. The horror’s powerful ripples have been felt beyond the borders of the United States, around the world. They have pushed the already slumping global economy into a recession that is sure to unleash misery and starvation on millions of people and kill thousands of children in the developing world. In the wake of the terrorist onslaught, the United Nations was quick to act. It approved fresh measures, including Security Council resolution 1373 (2001), calling on Member States to stem the terrorists’ channels of communication, freeze their finances, deny them refuge and support, strengthen domestic and international law against them and collectively take all necessary measures to prevent and defeat them. A broad coalition of States united around a common goal has launched a global campaign against terrorism. Itself being a victim of terrorist activities, which have taken nearly 1,800 lives over the past five years and have grossly undermined development efforts, Nepal fully understands the challenges and cost of defeating this elusive enemy that has no borders, no territory and no standing army. Yet with collective resolve and determination and with preventive and curative actions we can sniff out the forces of terrorism, if we only refrain from political expediency and moral relativism. Enforcing all the existing relevant conventions and resolutions is as crucial as the early conclusion of a 7 comprehensive convention on terrorism in order to achieve the objective. The twenty-first century begins with a new and uncertain security environment. No sooner had we put the wars, and the cold war, of the last century behind us and had begun to grapple with internal conflicts than terrorism emerged as a grave threat to international peace and security. It should be tackled decisively and without delay. As we engage in the war on terrorism, we must not forget that the edifice of durable peace can be erected only on the fundamental pillars of the prevention of conflicts, the peaceful resolution of disputes, persistent efforts for disarmament, poverty reduction and development, and respect for diversity, fairness and justice. The culture of peace and dialogue should advance the process. We now live in a global village where all are interdependent. A fire in one house may consume the entire village if left unchecked. That is why concerted efforts to secure peace and stability are critical in the troubled nations of Africa, Asia, Europe and elsewhere that have suffered wanton instability and violence that are pernicious for their national integrity, social harmony and economic progress. In particular, we will have to end the cycle of violence and death in the Middle East by finding a durable solution to its festering problem. The war on terror and the restoration of stability will succeed in Afghanistan if its people are saved from starvation and unwarranted hardship now and assured of their country’s reconstruction when the struggle is over. Criminal acts such as those involving the present anthrax scare in the United States and the use of sarin gas in the Tokyo subway a few years back are strong testimony to the necessity of abolishing biological and chemical weapons before an appalling catastrophe befalls us. More importantly, the proliferation of nuclear weapons and the increasing likelihood of their use by terrorists, viewed in the context of the successful 2000 Review Conference of the Parties to the Treaty on the Non-Proliferation of Nuclear Weapons, constitute compelling reasons to follow the path of complete and general nuclear disarmament. The inability of the Conference on Disarmament to agree on its programme of work for the past several years raises serious doubts about our commitment to disarmament. That forum should be activated without delay and should be tasked with negotiating new disarmament treaties, including one on nuclear disarmament, and to strengthen the existing ones. In order for United Nations peace efforts to become instrumental in promoting global peace, Nepal has lent them moral backing, has contributed nearly 40,000 troops and has sustained 42 casualties in the line of duty. Nepal is willing to work for the improvement of peacekeeping operations, taking into account both the Brahimi Panel report and our collective experience. While we are preoccupied with the immediate steps against terrorists, we must not overlook or abandon other equally pressing issues central to durable peace, such as the need to remove poverty, create jobs and provide education, drinking water, health and other basic services in poor countries. The reason is simple: terrorists and anarchists often exploit the vulnerabilities of the impoverished, the unemployed, the excluded and the disaffected to carry out their sinister designs. Of course, poor countries have no choice but to undertake painful reforms to improve their governance and performance. Decreasing assistance to the poor in the face of increasing prosperity in the rich countries defies our understanding. Therefore, it is equally urgent and essential that they receive increased support from their development partners. For example, rich countries need to reverse the decline in development assistance and meet the aid targets, fully fund and expand the Heavily Indebted Poor Countries (HIPC) Initiative to cover all least developed and worst affected countries and facilitate investment in the South. Their trade barriers ought to be dismantled and markets opened to spur exports and help to broaden the production capacities of developing countries. As the advanced nations seek to hammer out a stimulus package to extricate their economies from the dark shadow of the present economic downturn, they must also be mindful of the much greater needs of poorer nations at this time of economic hardship. Undoubtedly, all developing countries face serious obstacles to their development journey. But landlocked developing countries suffer from the 8 additional impediments of remoteness, transit-transport difficulties and lack of access to sea-based resources. However, nowhere are the trauma of deprivation and dispossession and problems of development more staggering than in the least developed countries, virtually all of which are in Africa and Asia. Globalization has further marginalized them, and the information revolution has hardly touched them. The United Nations special programmes of the past two decades have apparently been inadequate and unable to make a difference, as many of these countries have become increasingly worse off over the last decade. Nepal is committed to vigorously implementing the outcome of the Third United Nations Conference on the Least Developed Countries. We sincerely hope that our development partners will leave no stone unturned in carrying out their commitments, including the European Union’s “everything but arms” scheme. Conflicts and chaos, and deprivation and disasters continue to spawn humanitarian problems and to create situations in which human rights are compromised. Today there are 22 million refugees, including 100,000 in Nepal, and many more internally displaced persons around the globe. Responding to such exigencies is naturally a priority, as is the war on terror, but we must bear in mind that humanitarian assistance cannot prevent the recurrence of crises until people are empowered and their vulnerabilities addressed. I should like to take this occasion to thank the international community for its support in the maintenance of refugees in Nepal. We urge it to continue its assistance until the problem is resolved, leading to their repatriation. To this end, we are engaged in dialogue with the Government of the Kingdom of Bhutan. The need has never been so urgent to protect refugees, maintain ecological balance, preserve the environment, promote sustainable development and ensure that this planet remains at least as liveable for our children as it has been for us. The strengthening of existing global treaties on the environment, and particularly the adoption of the Kyoto Protocol, is urgently required. Nepal, a least developed and landlocked nation, has accorded its topmost priority to poverty reduction, spending more than 70 per cent of its budget in rural areas where the poorest people live, and has adopted a market-led development policy with a two-pronged strategy. Policies and measures have been instituted to attract foreign investment and to harness people’s creative potential by means of economic liberalization, investment incentives, decentralization and the rationalization of public spending priorities. Of late, we have taken steps towards land reform, the empowerment of women through education, inheritance rights and political participation, together with special developmental programmes to assist weak and vulnerable people and regions. Yet progress has been slow in coming, with the attendant serious consequences. Nepal’s per capita gross national product of $220 is one of the lowest in the world; 38 per cent of the population lives below the poverty line; and the ratio of the Government’s foreign debt stock to government revenue is 410 per cent, and to annual exports, 350 per cent. These statistics are incredibly disheartening, even among the least developed countries. Despite this, Nepal is left out of the Heavily Indebted Poor Countries (HIPC) Initiative. I therefore urge the donor community to include Nepal in the Initiative to help release our resources from debt- servicing obligations, which will enable us to implement poverty-reduction programmes more effectively. But this will in no way substitute for the need for increased development assistance. The United Nations has an elemental role to play in meeting all these challenges. To prepare it to address them, Nepal believes that we should revitalize the General Assembly and the Economic and Social Council and augment cooperation and coordination among the various United Nations organs. Likewise, we deem it imperative to enlarge the Security Council and to improve its methods of work, including through the deepening of its cooperation with troop- contributing countries. Veto power militates against the basic tenets of equality and democracy; it reflects the realities of a bygone era. Nepal is convinced of the necessity to do away with the veto and understands the profound difficulty of achieving this goal. Until it has been eliminated, this power ought to be rationalized by defining the parameters for its application. 9 The Millennium Declaration has given us a vision of and benchmarks for a peaceful, decent, just and viable global society, and it has indicated how the United Nations could be instrumental in achieving them. It is our collective obligation to implement them, sharing the burdens and benefits equally. Nepal welcomes the road map for the implementation of the Declaration. The implementation review of various global compacts has unmistakably established a shortage of financial resources as the principal reason for lack of progress. Nepal hopes that the World Summit on Sustainable Development and the International Conference on Financing for Development, to be held next year, will do their best to chalk out a blueprint for financing developmental activities, which is the foremost concern of the developing world. As regional cooperation is an effective vehicle for broadening markets and production as well as for building collective competitiveness, Nepal and other South Asian countries have been working together under the umbrella of the South Asian Association for Regional Cooperation (SAARC). I am happy to inform the Assembly that Nepal will have the privilege of hosting its next summit in January 2002, following its postponement two years ago. Again, in the spirit of regional solidarity and of its abiding commitment to peace and disarmament, Nepal looks forward to the early relocation of the Regional Centre for Peace and Disarmament in Asia and the Pacific to Kathmandu, where it belongs. We have, on our part, completed all necessary preparations for the effective functioning of the Centre from Nepal. Democracy, development and human rights are integral to society’s advancement. Therefore, Nepal is engaged in promoting democracy and freedom, and human rights and justice for all, particularly women, children and vulnerable groups. We cherish these values, which are crucial to preserving human dignity and to bestowing on human beings the opportunity to reach their full potential. In the aftermath of the agonizing royal massacre in Nepal early this year, our people’s faith in democracy has been further reinforced, as it ensured a smooth succession and stability in the face of a terrible crisis. I thank all our friends for their solidarity and support at a time of national tragedy in Nepal. We have witnessed unprecedented unity among nations in fighting major wars in the past, and terrorism at present. If we show the same kind of resolve and dedication, we can successfully fight poverty, deprivation and discrimination. The United Nations should brace itself to face them effectively, and Member States should assume a greater sense of responsibility. Nepal, committed as it is to the principles and purposes of the United Nations, will continue to do its best to help it achieve its goals and to make a difference in our people’s lives.