My delegation extends its warm congratulations to Mr. Hollai on his unanimous election to the presidency of the thirty- seventh session of the General Assembly. It is my pleasure to have known him for several years as a friend. His wide experience, especially in the affairs of the United Nations, and his richly deserved reputation for skill, patience and the accumulated wisdom of experience constitute a guarantee that this session will be fruitful and constructive. We look to his guidance and leadership in the resolution of the numerous problems that exist at this most critical period for the relations among nations. 216. To his predecessor, Mr. Kittani, who served under similarly difficult circumstances and emerged with honour, my delegation also extends its congratulations. 217. We are delighted to welcome the new Secretary- General, Mr. Javier Perez de Cuellar. A thorough professional, he is universally regarded as a diplomat's diplomat, and we are happy that he is now at the head of the Organization. He has revealed to us the other side of his natureócourage and candour in admitting the deficiencies of the United Nations, together with constructive suggestions which should enable us to return to the first principles of the Charter. The Secretary-General has seen us as in a mirror and asked us to take a closer look at ourselves with a view to providing remedies for the ailments of the United Nations system. In expressing his views the Secretary- General has reminded us that the strengthening of the United Nations is the first order of business and that the performance of this task, difficult though it may be, is indispensable to the solution of the problems which threaten the peace of the world. 218. In the past we have often tended to substitute hyperbole for thought. Today the situation has changed: hyperbole has turned into fact. The tragic events in Lebanon, serious problems in themselves, reverberate throughout the entire Middle East and raise anew the unwelcome prospects of wider conflict. The Middle East is the vortex of crisis and, if the past is a guide to the future, it will almost certainly involve other Powers in a conflict which may well be larger and more destructive than any in the unending series of Middle East wars. 219. At the core of the problem is the issue of Palestine. The new and highly disturbing element is a widely perceived effort to solve the problem not through political means, but by the use of force. This is clearly unacceptable, not only in terms of Security Council resolution 242 (1967) but also in terms of the principles of the Charter. 220. No one is under any illusion that the Middle East situation can be solved on the instant, but it is quite correct to say that the end of armed conflict offers fresh opportunities for a new start. The intractable problem is ingrained psychological blocks which make dialogue more difficult than it should be. This is why negotiations must be a processóthat is, a continuing dialogue which makes compromises possible. For this reason, my delegation welcomes the initiatives of President Reagan and the Twelfth Arab Summit Conference at Fez. We believe that these are starting- points which in the course of the negotiating process could be merged, in the legitimate interests of all the parties concerned. 121. My delegation identifies with the positive elements of the United States proposal, which iß based on the Camp David accords ratified by the Israeli Knesset, notably the immediate freeze on the establishment of Jewish settlements and opposition to permanent control by Israel over the West Bank and Gaza. 222. My delegation maintains, however, that the full autonomy envisaged for these areas should lead to the implementation of the right of self-determination by the Palestinian people and the establishment of an independent State coexisting with Israel. We hold, furthermore, that at an appropriate stage in the process the PLO should be a party to the negotiations leading to permanent peace in the area. 223. It should be noted that neither the United States nor the Arab States have rejected each other's proposals. This fact leads to the hope, however tenuous, that each recognizes certain common denominators in the proposals and to the further recognition that in the existing circumstances, modality is of the utmost importance. 224. It is Israel that has proved to be intransigent, possibly in the euphoria of military success. But the one thing it must acknowledge is that its military victory over the PLO has, by a curious paradox, improved the political standing of the PLO. Because of the events in Lebanon, Israel may find itself with its back against the wall, with foes but no friends and isolated beyond hope of redemption. We very much doubt that this is what Israel wants. We therefore call upon Israel to heed the voices of reason and moderation. Too much blood has been spilled in the Middle East and too many bitter tears shed for Israel to ignore the growing clamour for peace with justice and honour. 225. Kampuchea, on the other side of the world, the hopeful sign is the formation of the Coalition of Kampuchean Nationalists under the leadership of Prince Samdech Norodom Sihanouk. The formation of the Coalition signifies the determination of the Kampuchean nationalists to expel the foreign forces from Kampuchean soil and enable its people to exercise freely their right to self-determination. 226. In deciding on a coalition the Kampuchean nationalists have assumed the mantle of legality, a cloak denied them before although they fought and continue to fight, with valour, and in circumstances of insuperable difficulties. 227. If they are to succeed in their endeavour, they will require material assistance from friends that have in this very Hall condemned the illegitimate usurpation of Kampuchea by Viet Nam. At this very moment thousands of Kampucheans await the call in the determined effort to recover their birthright. We have every hope that, with the support of friends, the Kampuchean coalition or the democratic Government of Kampuchea will in the end pave the way for the restoration of Kampuchean sovereignty in free elections under the supervision of the United Nations. In the face of this development, Viet Nam has a final option: to wipe out the fledgling and under-supplied anti-Vietnamese forces before their movement gathers strength and momentum. There are reports that this is precisely what it intends to do. It is in this light that the need for support and assistance acquires urgency. We urge our friends to provide it. 228. Another potential source of tension in Asia is the uncertain and precarious relations between North and South Korea. Conflict in that divided country is bound to have a severe impact in the strategic region of North-East Asia. Therefore we would encourage the parties concerned to launch fresh initiatives which could lead towards the goal of reunification. President Chun of South Korea has taken the initiative in this regard and he deserves our support. 229. I shall refrain from dealing with subjects already touched upon by President Marcos when he addressed the Assembly the other day. I might only add that, with respect to the launching of global negotiations on international economic co-operation for development, we might remind ourselves once more that these negotiations were conceived in the light of our shared concern over the steady deterioration of our economies. The need to establish a firm basis for global economic progress that is equitable to all acquires added importance in view of the inadequate response of some of our institutions to the problems of contemporary economic relations. In joint efforts and in an admirable spirit of compromise encouraged by the high-level meetings in Cancun, Ottawa, Versailles and New Delhi, among others, we have managed to reach agreements on nearly all the outstanding points of difference. 230. I recall that, at the signing of the Bretton Woods Agreement in New Hampshire in 1946, when I signed the Agreement on behalf of the Philippines, I then said: "The economic pattern being drawn here was established by the victorious Allies, but this will not last long. More members of the United Nations will join in the future. Last year we signed a United Nations Charter with 54 nations. I envision more than 100 nations will join. In that case they will decide that they want a new international economic order." I said that in 1946, when we signed the Bretton Woods Agreement. That is now the North-South dialogue. 231. As we resume discussions at this session, we diverge on only two points. To those who hold differing views on these two points, these are no doubt of great importance, and their reluctance to accept either is therefore understandable. Yet the potential reward of agreement and the possible penalties of failure to reach agreement are of such magnitude that they allow us few, if any, options. Therefore I would urge all parties to look beyond narrower preoccupations for the sake of the larger good. On the part of the Philippines, my delegation is prepared to accept neither one nor the other formulation but both formulations in a common text. We do so in the firm belief that in practice and application the two points are not necessarily irreconcilable. Such an approach, in our view, would close the last remaining gap and thus enable the long-delayed global negotiations to get under way. 232. Turning to another subject of a global character, my delegation wishes to express its gratification at the completion of the work of the Third United Nations Conference on the Law of the Sea. It has involved many years of difficult negotiations but it is certainty one of the more hopeful signs of the rich possibilities open in the way of international cooperation. 233. Although the Convention on the Law of the Sea was not adopted by consensus, as originally planned, this does not detract from the importance of the work of the Conference. The monumental document produced by the Conference will, when it enters into force, become the international law, or the law of mankind, which will govern the rights and duties of nations on the uses of the waters of the earth. We in ASEAN are proud that the President who steered the Conference on the Law of the Sea to that final declaration is Mr. Koh, the representative of Singapore, one of the nations of ASEAN. It is the earnest hope of my delegation, as well as of the 130 nations which voted for the Convention, that in the interests of an orderly regime on the seas of the world those that did not find it possible to vote for it will in the future accede to it and thus make the Convention universal in fact as well as in law. 234. Allow me to return to the subject of the Secretary-General's report. It is a subject of extreme importance and should, if we are aware of our responsibilities, provoke a great deal of thought among us. 235. For years my delegation, having in mind Article 109 of the Charter, which suggests the holding of a general conference for a review of the Charter, has proposed that steps be taken towards amending it. Unfortunately, the assumptions, not to speak of the circumstances, which inspired the founding fathers in framing the Charter of the United Nations changed almost immediately after its ratification. To press the issue of a general conference at this time would raise a political storm which we can ill afford in a time of persisting crises. 236. In recognition of the post-atomic realities, the Assembly did approve the creation of a Special Committee on the Charter of the United Nations and on the Strengthening of the Role of the Organization in a search for ways and means of improving the functioning of the United Nations within the framework of the present Charter. The Special Committee is now ready to present to the Assembly the first concrete document resulting from a labour of nearly seven years. The draft Manila declaration is a worthy attempt to provide specific interpretations of the Charter's provisions on the peaceful settlement of disputes and in this sense it constitutes a watershed in the efforts of the Organization to ensure the well- beingof peoples and the maintenance of international peace and security and in addition promote the progressive development of international law. If I read properly between the lines of the Secretary-General's report, that is precisely what he means. 237. It has been said that there are two United Nations, The first United Nations has on balance achieved remarkable progress in the economic and social fields, notably in assisting the younger nations in their first faltering efforts at development. 238. But the same cannot be said of the second, the other United Nations in its primary role of maintaining international peace and security. This is the theme which the Secretary-General develops in his bold and perceptive annual report. Thank God for a Secretary-General who sees through the difficulties that we face. His suggestions cannot be dismissed lightly for, as head of the Organization, his voice carries special weight and authority. 239. My delegation is prepared to support the Secretary-General's suggestion for a meeting of the Security Council "at the highest possible level" to discuss the problems which have impaired the proper functioning of the Organization as envisioned by its founders. I can do no better in closing than to quote the words of the Secretary-General which we should always bear in mind in this Hall: "... I am absolutely convinced that the United Nations is indispensable in a world fraught with tension and peril. Institutions such as this are not built in a day. They require constant constructive work and fidelity to the principles on which they are based. "We take the United Nations seriously when we desperately need it. I would urge that we also seriously consider the practical ways in which it should develop its capacity and be used as an essential institution in a stormy and uncertain world." 240. As one who has been deeply involved in the United Nations from the very start and bitterly regretted its defeats and savoured its triumphs, I compliment the Secretary-General on his acute analysis of the United Nations. I share with him the view that we should work unremittingly to build a sense of world community on the firm foundation of a political and moral order which alone can lift mankind to the "broad sunlit uplands" of peace and security.