We congratulate you, Sir, on your election to preside over the General Assembly at this session and wish you every success in fulfilling your mandate. Our appreciation also goes to Mr. Harri Holkeri for his work at the last session. We wish to convey to our Secretary-General, Mr. Kofi Annan, our sincerest congratulations on his unanimous re-election for a second term as leader of this Organization in a broad acknowledgement of his abilities, leadership and firm resolve to promote the purposes and principles of the Charter, which have been rightly recognized with the awarding to him and the United Nations of the Nobel Peace Prize. The delegation of El Salvador believes that the deplorable and irrational terrorist attacks on the people and Government of the United States, which we repudiated and condemned at the time and do so again in this forum, have made it plain that terrorism in all its forms and manifestations is a grave threat to peace, freedom and democracy. Given the special nature of that scourge, it is essential that we unite our wills and pool our efforts to combat and eradicate it. These acts of terrorism have affected us all directly, because they represent an assault on civilization, which is based on the values and principles embodied in the Charter of the Organization. Indeed, such acts affect not only international peace and security, but also the growth and development of our economies. In view of all this, the countries represented here should not allow minority groups to crush our peoples’ democratic spirit or to sow permanent uncertainty and fear by means of violence and threats directed against the most fundamental principles of human coexistence. It is precisely the norms of human coexistence that underpin and sustain peace, freedom and development for humanity, regardless of ideology, culture, race or religion. We concur with many delegations that the struggle against terrorism should 4 not be considered, much less interpreted, as a struggle among civilizations or nations. Pursuant to the decisions taken by the international community, the Government of El Salvador is taking the proper steps to fulfil the provisions articulated in the pertinent resolutions of the Security Council and the General Assembly and other measures decided upon at the regional and continental level. It is appropriate to mention that at the Central American level, the Security Commission has adopted an ambitious programme of action so that we can work together to combat terrorism. With respect to our national situation, on a number of occasions we have reiterated the commitment and political resolve of the Government of El Salvador to tackle effectively the challenges of building sustainable human development. We have made much progress in the last decade. However, as everyone knows, this year began with serious natural disasters. The two earthquakes in January and February shook the very foundations of Salvadoran society, since 25 per cent of the population was affected, and losses amounted to 13 per cent of the gross domestic product. The devastating effects of the earthquakes extended into the economic and social spheres, obliging us to implement an emergency programme, which meant changing and adapting the Government’s plan to match the new priorities, redirecting the State’s limited financial resources to reconstruction. This was compounded by an unprecedented drop in international coffee prices, our major export commodity. We also suffered a widespread drought, affecting agricultural production, which is the unpinning of our economy. Thus we believe that it is essential to reiterate our special recognition of and gratitude to all the countries and international organizations that provided us with valuable assistance during these natural disasters. I wish to thank in particular the World Food Programme for its effective work in relieving the food-supply problems of large sectors of the population affected by the drought. It is of the utmost importance to the Government of El Salvador to refer on this occasion to something that has marked a turning point in the history of our nation and which, at the same time, represents a success for United Nations peacekeeping operations: the first multidisciplinary mission to resolve an internal conflict, as was the case in El Salvador. I wish to highlight, with great satisfaction, that 16 January 2002 will mark 10 years since the historic signing of the El Salvador Peace Agreements, which formally ended the armed conflict that had wreaked havoc in our society for 12 years. The Secretary- General participated actively and played an important role as intermediary in the process of negotiation and in the verification of the parties’ compliance with all the commitments they had undertaken. Since that date, we have engaged in a process that we can divide into two phases — first, the transition from war to peace, and second, the transition from peace to democracy. During the process we have made great efforts to fulfil the commitments of the Agreements in order to achieve peace, democracy, respect for and protection of human rights, national reconciliation and reunification of Salvadoran society, and we have achieved qualitative changes in these areas. The Government of El Salvador, as a signatory party deeply interested in faithful observance of the Agreements, has been gratified to see the success achieved in executing these undertakings, putting into practice a constructive policy that has enabled us to deal with sensitive and complex issues. The members of the international community, especially the donor countries and the United Nations, can attest to this. In fulfilling the Peace Agreements, all Salvadorans shouldered the obligations with the seriousness and responsibility that were required, mindful of the solemn significance and the implications of such fulfilment for the aspirations and expectations that the Agreement outlined, both domestic and vis-à- vis the international community. This is why we are very pleased that in fulfilling our obligations we have not betrayed the trust of those that showed us solidarity and supported us throughout the process. Now more than ever, new possibilities are opening up for all sectors of the country — with a vision of being a nation — to face the future with a sense of shared responsibility, and for us to undertake the new challenges involved in continuing to bolster democracy and promoting economic and social development. Consequently, we are committed to the process of modernizing and strengthening democratic institutions in conformity with the strategy of 5 sustainable development, whose focus and destiny are to improve the quality of life of each and every Salvadoran. In a globalized and interdependent world, any situation that affects the economy of the industrialized countries and those with emerging economies has a significant impact on the conditions in the remainder of the countries of the international community. The trend towards a slowdown in these economies becomes disquieting for our countries because of its adverse effects on fostering economic progress and maintaining social stability. In this regard, it is essential to pay attention to the problems besetting the international economic order and prevent them from spreading and becoming causes that generate fresh conflict, especially in the developing countries. For this reason, we hope that the outcome of the meeting of the World Trade Organization in Doha will be beneficial for the developing countries. It is appropriate to note that during the participation of the President of El Salvador, Francisco Flores, in the Group of Eight Summit in Genoa, Italy, on 10 June, he voiced the anxiety and concerns that we feel about the serious problems that exist and stated our aspirations as developing countries to promote the progress of our peoples. On that occasion, President Flores noted that we do not want handouts or concessions based on paternalistic approaches. We want to become partners in development and achieve mutual benefits so that we have the opportunity to gradually improve our conditions and have better access to and derive greater benefit from international markets. In El Salvador, we have put into practice a number of measures concerning the free market and promotion of foreign investment. They have led to internationally recognized economic openness, which in practice has included a process of privatization, especially in the communications, energy and finance sectors and in the area of social security, enhancing our potential for growth and development. At the beginning of this year, as part of a gradual process that will lead finally to the elimination of the national currency, the Government of El Salvador enacted the Monetary Integration Act, establishing the dollar as the unit of account in the financial system. This will facilitate our trading and financial integration and further improve conditions for national and foreign investment and access to international financial sources. In the area of trade, in addition to having a free- trade relationship with our fraternal Central American countries, we have extended our ties with Mexico, the Dominican Republic and Chile, establishing free-trade treaties with them, while others are in the process of being negotiated with Panama and Canada. At the same time, we are making an effort to strengthen the process of the Central American Integration System (SICA), where we have taken significant steps, including customs activities and a regional proposal to modernize and transform Central America. The proposal’s strategic projects for development were presented this year to the Consultative Group in Madrid. The implementation of the Puebla-Panama Plan, in which Central America is partnered with Mexico for its development, is part of these efforts. In general, we can say that, given the trend towards globalization, which marks modern international relations, and despite the difficulties and complexities involved, our country is doing its utmost to take advantage of the phenomenon. In this regard, the least that we can hope is that there will be good will and political resolve on the part of the developed countries to grant us solidarity and support to enable us to become effectively incorporated in the process. In view of the importance of the commitment assumed by the heads of State and Government in the Millennium Declaration of the United Nations, we note that the International Conference on Financing for Development, to be held in Mexico, and the World Summit on Sustainable Development will provide opportunities to demonstrate the solidarity and cooperation of the international community, particularly on the part of the developed countries, by the adoption of appropriate measures conducive to achieving fair and equitable development, especially in the developing countries. With respect to other sensitive issues for the international community, the Government of El Salvador views with concern the continuation or worsening of certain problems that, if not resolved, will be a threat to international peace and security. These include the ongoing conflict in the Middle East, which is a source of great concern, especially because 6 during the past year we have seen unremitting violence, leading to the irreparable loss of human life and material and economic damage in the region, and to a constant increase in the suffering of the Israeli and Palestinian peoples. In that context, the Government of El Salvador reiterates its support for all efforts and measures aimed at achieving a negotiated political solution that takes into account the interests of the parties directly involved, in order to achieve a firm and lasting peace. The State of Israel’s right to exist and to live within secure borders, as well as the inalienable right of the Palestinian people to self-determination and to establish its own State, are basic preconditions for achieving peace, which will enable the leaders of the region to devote themselves to promoting the progress and well-being of their peoples. The extraordinary situation of the Republic of China in Taiwan is a case that the international community should examine, particularly in the light of the most recent changes in the international system. Regarding the strengthening of the world Organization, it is important that this opportunity not be lost to address an item of priority interest for all Member States: Security Council reform. In this regard, we must emphasize the commitments contained in the Millennium Declaration so that this reform can be carried out. In that regard, we urge the Open-ended Working Group established for this purpose to redouble its efforts so that those commitments will be fulfilled and so that we can achieve, on the basis of flexible positions, a general agreement on the issue. Finally, given the complex and uncertain international situation, we urge all Governments, groups and sectors of civil society to reflect on the imperative importance of working together in a spirit of human solidarity that will enable us to overcome all differences that separate us in order to achieve great global objectives that could not be achieved on an individual basis, with a view to attaining the spiritual and physical peace to which all nations aspire.