It is difficult to come to New York at this time without recalling the dreadful events of exactly one year ago, which brought the whole of the international community together in support of this country, and this city. On this occasion, we reiterate our solidarity and our conviction that the best way to cope with terrorism is within the multilateral framework, and above all here at the United Nations. I also take this opportunity to convey our appreciation to Mr. Han Seung-soo of the Republic of Korea for his excellent presidency of the last session. I would also like to congratulate you most sincerely, Sir, on having assumed the presidency of the General Assembly at this session. I have no doubt that your proven ability and recognized experience as an academic, a statesman and an official in the Czech Republic and abroad will enable you to guide our deliberations successfully. We also congratulate the Swiss Confederation and Timor-Leste, the former one of the oldest countries in the world, and the latter the youngest: one is now a full Member of the Organization, and the other soon will be. I would like to address two subjects. The first is developments within Guatemala, particularly regarding fulfilment of the peace agreements, in whose negotiation and subsequent implementation the United Nations played such a significant part. The second area I shall be addressing relates to our position on the most important items on the agenda of this session. On the first subject, let me say that the past year has been marked by intense activity in Guatemala. There were important advances, but also some setbacks. We confront an unfavourable international situation that has had a negative effect on our economy. Conditions have been made more complex by a severe drop in the price of our traditional export products. Unusual rainfall patterns have affected the production of grain in several regions. I make these points because it would certainly be easier to comply fully with the commitments contained in the peace agreements in a context of economic expansion, instead of having to do so in the face of serious fiscal restrictions and increasing demands on our Government. Yet we have made headway, even when we had to take decisions that were politically unpopular but that were necessary to attain the goals of the peace agreements. This was the case with our tax reform, which included an increase in the value added tax. That reform is already in force, and my Government has thereby fulfilled one of the specific commitments of the peace agreements. This measure laid a financial foundation without which the fulfilment of other peace commitments and maintenance of macroeconomic stability would simply have been unthinkable. It has fallen to me to preside over the first Government of Guatemala in the new era of peace. The peace agreements were our second declaration of independence and they mark the road to building a tolerant and non-exclusionary society, a State that is democratic, participatory and where the rule of law prevails. During my administration public expenditure has focused on education; but we also address, as matters of priority, access to land and the reduction of poverty. Guatemala is a country of marked contrasts between wealth and poverty. We labour under age-old conditions of injustice. We turned to the Government to promote reform for the well-being of our people, particularly indigenous peoples, children, women, peasants and the victims of the internal armed conflict. Reforms are essential in order to uphold democracy. 8 There is powerful resistance to change, and this carries political and even personal costs. But our commitment to democracy, social justice and equity is unshakeable. There are just too many things to do in Guatemala. After governing for three years, our awareness of what is lacking makes us feel dissatisfied. On gender equality, we have made some progress on the institutional plane, and we now, jointly with the women's movement, have forged an approach with the effect of State policy. We are promoting educational reform, literacy campaigns, scholarships for girls in the rural areas and country-wide nutritional programmes in schools. We are working also on poverty reduction strategies. These are long-range policies, whose results will be fully enjoyed only by later generations. The recent enactment of three laws a reformed municipal code, a law on development councils and a law on decentralization forms the basis for the most far- reaching reform of the State to have occurred in 100 years. The peace agreements are comprehensive in their scope. We have promoted a substantive social agenda, and we have adopted measures towards free markets. We have undertaken reforms in the area of security, although much remains to be done. The military is now focusing increasingly on national defence. We have reduced the number of military personnel as well as their functions, and some of the resources thus freed up will be been used for public education and civilian security services. Military reconversion, however, will not be easy; we will have to make a special effort to achieve a smaller and better equipped army. Civilians are preparing to take over more complex roles and society is being called upon to participate in elaborating important public policies, such as overall public security and national defence. We are fostering dialogue with civil society on important issues such as agriculture and rural development, transparency, combating corruption and providing compensation and reparation for victims of armed conflict. Our aspirations do not stop there, however. Guatemala has not yet achieved full reconciliation. We need to reconcile the elements of our society and provide opportunities for development without excluding anyone. Essential steps for achieving reconciliation include identifying all the parties to the conflict, making symbolic gestures to repair the damage done, finding out and acknowledging the truth about what took place, allowing justice a free hand and promoting forgiveness. Our nation has undertaken these tasks in a diligent manner, although some uncertainty persists. My Government's term of office will expire in a little over a year, by which time the United Nations Verification Mission in Guatemala (MINUGUA) will be planning to withdraw. The Mission has played a fundamental role as the critical conscience of the State and has actively supported the fundamental changes that have taken place. We appreciate the work that it has done and we would like here to request the extension of its mandate to the end of 2004 so that it may accompany us as we make the transition to a new Administration. Our hope is that MINUGUA will hand over its functions in an orderly manner to national bodies and, where appropriate, to the programmes and agencies of the United Nations. Let me turn now to the agenda for this session. First of all, I would like to reiterate our full and unconditional support for the United Nations as the highest form of multilateralism. We are convinced that this Organization will have to play a crucial role in the twenty-first century. We believe that the Millennium Declaration provides an adequate road map enabling us to set out our priorities and the steps to be taken to fulfil the goals set. Its implementation has been given a powerful boost by the Monterrey Consensus and the Plan of Action adopted in Johannesburg a few days ago. We also fully support the stewardship of the Secretary-General, Mr. Kofi Annan. We agree that this Organization must adapt to the challenges of globalization. We are aware that progress has been made in this respect in recent years, but much remains to be done. In this context, we look forward with great interest to the new reform proposals to be submitted by the Secretary-General towards the end of the month. We pledge to participate actively in analysing and debating them. Few would doubt that Security Council reform is the most urgent of the outstanding reform efforts. We must not delay our efforts to ensure that that organ is made more effective, representative and transparent. To that end, we advocate the expansion of the membership of the Council and believe that the veto power should 9 be used strictly in conformity with the United Nations Charter. We also believe that it is necessary to strengthen the General Assembly and the Economic and Social Council so that the three principal organs of the United Nations mutually support one another. We reiterate our total rejection of all forms of terrorism, and support collective action by the international community to combat that scourge through, inter alia, action in accordance with Security Council resolution 1373 (2001). We believe that we must strengthen our collective capacity to prevent and resolve conflicts, whether of a transboundary or internal character. With regard to disarmament, we favour the complete elimination of nuclear, chemical and bacteriological weapons, an end to the illicit traffic in small arms and light weapons and a ban on the use of anti-personnel landmines and other explosive devices. We support all United Nations actions aimed at achieving such goals as well as at establishing nuclear-weapon-free zones in all parts of the world. We believe in particular that the United Nations must continue to address the development challenge. Working with the multilateral financial institutions, our Organization must play a crucial role in ensuring that the benefits of globalization are widely shared among all countries. This will require common efforts within countries and in the international community as a whole. Furthermore, Guatemala is a party to the principal environmental treaties, and we reiterate our commitment to maintaining the ecological equilibrium of the Earth. We recently made a contribution in this respect by offering to host the headquarters of the secretariat of the Convention for Cooperation in the Protection and Sustainable Development of the Marine and Coastal Environment of the North-East Pacific. We participated actively in drafting that Convention. My country is aware of the divisions between sister peoples in the Middle East, Asia and Africa. We fervently hope that it will be possible to resolve those differences by peaceful means through dialogue so that, without discrimination, all the peoples of the world can be represented here. I would like to make special reference to the 23 million people of the Republic of China on Taiwan, whose aspirations to participate in the work of international organizations have not yet been fulfilled. The countries of Central America in general, and Guatemala in particular, view those aspirations as beneficial to global peace and democracy; they deserve our support. It is likewise our earnest hope that a solution will be found, based on security Council resolutions 242 (1967), 338 (1973), 1397 (2002) and 1402 (2002) to the difficult situation in the Middle East, which has worsened over the past year. Finally, we reaffirm our strong support for Central American integration and our commitment to the other countries of Latin American and the Caribbean. The Government of Guatemala has participated in important initiatives in the area of regional and subregional integration. In that connection, I would like to point out that, in accordance with a constitutional mandate, Guatemala has done its best to strengthen bonds of friendship and good-neighbourliness with the State of Belize, without prejudice to the active search for a peaceful, honourable, equitable and permanent solution to our territorial dispute, which dates back over a century. On Monday, 16 September, at the headquarters of the Organization of American States, the representatives of our two countries will be presented with the conclusions and recommendations of a conciliation process that has taken place under the auspices of that organization. Any definitive settlement will have to be approved by referendum in Guatemala. We commend the solidarity displayed by the Government of the Republic of Honduras with a view to facilitating amicably the delimitation of the maritime areas in the Gulf of Honduras. In conclusion, I would like to quote a Guatemalan poet, Otto RenÈ Castillo, who was a victim of internal armed conflict. Fifty years ago, he wrote: Smiles will return to the face of humanity, because children born in the twenty-first century will be happy. Our mission must be to make this come true. Such is the goal of our tireless struggle.