At the outset, allow me to congratulate you, Sir, on your election to preside over the work of this session of the General Assembly. We are confident that you will draw on all your experience and wisdom to conduct successfully the work of this Assembly. I assure you of all the support and cooperation of my delegation and wish you success in your task. I would also like to congratulate the former President, Mr. Jan Kavan, for the exceptional way in which he presided over the work of the fifty-seventh session. I speak today with a mixture of happiness and sorrow. I am happy to address the Assembly for the first time in this plenary in my capacity as Prime Minister of my young country, after more than two decades of having sought understanding and support for the cause of my people and having often lobbied for support in the corridors of this building. I am also deeply saddened, however, for having lost, just over a month ago, an old friend — Mr. Sergio Vieira de Mello — an innocent victim of intolerance, extremism and terrorism. I wish to pay tribute to his memory and to all those who have served the United Nations and lost their lives in Baghdad and other turbulent regions of the world. It was under the guidance of Secretary-General Kofi Annan, represented in Timor-Leste by Mr. Sergio Vieira de Mello, that exactly one year ago the Democratic Republic of Timor-Leste became the 191st Member of this Organization. The President of the Democratic Republic of Timor-Leste, Mr. Xanana Gusmão, and I bore witness to that historic act. Since then, our country has experienced significant progress in the consolidation of our nascent democracy. My Government has presided over the strengthening of national cohesion and has given priority to the unequivocal affirmation of the Republic as a democratic State founded on the rule of law by taking normative measures in governance to implement the provisions of a modern Constitution drafted by the Timorese and adopted by an Assembly democratically elected by the people. Open governance is one of the programmes of my Government. Based on the principles of good governance, inclusion, participation of the individual and collective responsibility, open governance was initiated in January this year. It consists of bringing the Government to the people in the remote areas of the country to hear first hand their priorities, problems and needs, as well as to clarify to the people the national development plan, the Government programme, available resources and the challenges ahead. It also seeks to instil a greater sense of responsibility in the people and to make them better understand the need for their participation in the reconstruction of the country vis-à-vis the implementation of the national plan, the methods of achieving the objectives of economic growth and of the reduction and eradication of poverty. In relation to the legislative process, we have prioritized the adoption of laws for the foundation of 6 the State, above all in order to avoid taking discretionary and subjective measures that are without legal foundation. Hence, more than 30 decrees and laws have been adopted by the Government for approval by the National Parliament. In this manner, we will create an institutional culture of democracy, giving basis to a democratic State founded on the rule of law and the principle of good governance. The challenges are enormous, however. Of the 900 schools destroyed in 1999, around 700 have been rehabilitated and more than 30 new schools constructed. Despite this, 25 per cent of our children remain without access to education. In the tertiary sector, we have a national university with more than 7,000 students. Hundreds of candidates are frustrated that their expectations of graduating from the national university have not been met. We now have a proliferation of institutions of higher learning that are not officially recognized by the Government. To deal with this situation, the Government has assumed the responsibility of preparing rules. In health care, similar challenges are being faced. Much of the infrastructure has been rehabilitated and more is being built, but the people want more assistance and means of support. They ask for more doctors, more nurses, more midwives, more ambulances and health centres closer to their villages. A national health policy has been adopted by the Government. We hope soon to be able to reduce the difficulties in this area with the cooperation of the People’s Republic of China and the Republic of Cuba in the provision of doctors to operate in the rural areas. In agriculture, more than 60 per cent of the irrigation system has been repaired and new systems have been built. It is important now to instruct farmers in the best methods of use for their systems and to make them responsible for the maintenance of those systems while the remainder is being repaired. In infrastructure, in general, the repairs and maintenance have been slow and difficult. There are 6,000 kilometres of roads to be rehabilitated and maintained, and our people are demanding the opening of many others. Many bridges need to be rebuilt, completed or built outright. We also are facing problems in the electrical sector, which is in deficit. We have re-established electricity production in all districts and in 55 of the 65 sub-districts. Dili, the capital, has power 24 hours a day. In the meantime, it is the policy of my Government to identify and develop alternative sources of energy that are more accessible and sustainable. Currently, we are conducting a feasibility study of such resources, in particular in the area of hydropower. Access to running water for consumption is very limited. However, it is undeniable that the number of people with access to running water is increasing daily, more so than in 1999. In the area of telecommunications, we are implementing an ambitious project overseen by Timor- Leste Telecom through a concession in the build- operate-transfer system. At the end of this year, all district capitals will have at their disposal fixed and mobile telephones, for both domestic and international purposes. With the completion and installation of the telecommunications system, we will also create the technical conditions necessary for the development of television and radio, delivering the best service in the media sector, which is free, vibrant and responsible. The process of reconstruction is taking place in an environment of peace and stability. However, areas that are key for guaranteeing the sustainability and credibility of the entire process, such as the judicial system, defence and security, will continue to require substantial assistance and support for some time to come. In other sectors of the Administration, we need qualified people to assist in the development of the capacity of the Timorese, in particular in the consolidation of the financial and banking systems, border control, legislative drafting and the definition of a national policy, promotion of investment and technology transfer. With this in mind, I would like to reiterate that, in order to guarantee the sustainability of the entire process and to meet two major aspirations – that of our people for peace, democracy and development, and that of the international community to continue to promote Timor-Leste as a success story, we must not forget to say the following. To our people, we would say — as we have been doing — that they should be more patient. Above all, 7 we must demand their participation and that they shoulder their responsibilities. We ask the international community for consistency, continued dynamic partnership and support. To the General Assembly in particular, we ask that it endorse the Economic and Social Council’s decision to include Timor-Leste in the list of least developed countries. In keeping with its history of struggling for human dignity, my country has ratified a number of important international human rights treaties. We are aware that the ratification of these international instruments creates legal obligations, and the Timorese State will do its utmost to implement its commitments under those instruments. With regard to external relations, we continue to develop ties of friendship and cooperation with our neighbours, namely, Thailand, Singapore, Malaysia, Japan, South Korea and New Zealand, and in particular with our two closest neighbours, Indonesia and Australia. As Prime Minister, I have made official or working visits to Malaysia, Singapore, the Philippines, Indonesia, Thailand, New Zealand, Mozambique, Angola, Portugal and the People’s Republic of China. At the beginning of this month, a meeting of the Joint Indonesia-Timor-Leste Ministerial Commission was held with a view to resolving a number of residual issues of recent years, as well as to promoting new cooperation in the areas of commerce, investment, development, education, health and security. The meeting had a positive outcome. We hope to finalize the demarcation of our land boundary this year in order to begin negotiations on our maritime boundaries. Boundaries, whether land or sea, define the territory of a country. Within a territory, one can exercise powers of sovereignty or jurisdiction. For this reason, Timor- Leste, having as its neighbours two large and friendly countries — Indonesia and Australia — hopes to see its borders with both countries demarcated or delimited by the end of my Government’s mandate, so that all the resources belonging to the people of Timor-Leste can be exploited in a free and sovereign manner, for the benefit of present and future generations of Timorese. The relationship between Timor-Leste and its neighbours is developing in a constructive and dynamic manner at the bilateral, trilateral and multilateral levels. Timor-Leste enjoys special observer status in the Pacific Forum and has participated as a guest in the Association of South-East Asian Nations (ASEAN). Timor-Leste is a fully fledged member of the Community of Portuguese-Speaking Countries; the African, Caribbean and Pacific-European Union; the World Bank; the International Monetary Fund; the Asian Development Bank; and various specialized United Nations agencies. The fight against terrorism, organized crime and trafficking in human beings, drugs and illegal arms is at the top of the agenda, regionally and in Timor-Leste. We will make every effort to contribute to the eradication of these ills, which are turning into a real epidemic with the development of new technology. Timor-Leste is a country of South-east Asia which is linked to the Pacific by geography, history and culture. Our people are proud to be part of this great geographical region of Asia and Oceania — rich in history, culture and civilization, and comprising more than one fifth of humanity. We are deeply grateful to all our Asian brothers — Japan, the People’s Republic of China, the Republic of Korea, the Philippines, India, Malaysia, Singapore and Thailand — who have responded without fail to our appeal for assistance, on a major or modest scale, depending on the capacity and experience of each country. We are grateful to all of them. I have just concluded a visit to the People’s Republic of China. Within weeks, Timor-Leste will receive the Prime Minister of Malaysia, Mr. Mahathir Mohamad. In December, we will be honoured with a visit from the Prime Minister of the Kingdom of Thailand. We continue to strengthen our relationships with other countries in South-east Asia, in particular Brunei Darussalam, Cambodia, Laos and Viet Nam. We deem it regrettable that the process of dialogue and national reconciliation in Myanmar is at a standstill. Timor-Leste associates itself with the concerns and disappointments of our friends in ASEAN, and we join our voice with those of others in the international community to appeal for the immediate release of Mrs. Daw Aung San Suu Kyi and of all others who are being detained, and for the 8 resumption of talks and of the process of reconciliation and democratization. My Government takes note of the commitments undertaken by General Khin Nyunt, Prime Minister of the Union of Myanmar, in his speech of 30 August 2003. We would like to express our deep concern at the abandonment by the Democratic People’s Republic of Korea of the Treaty on the Non-Proliferation of Nuclear Weapons (NPT) and its stated intention to produce nuclear weapons. The Democratic People’s Republic of Korea has three countries as its neighbours that over the years have demonstrated friendship and solidarity. None of those three countries presents any threat to its security or sovereignty, thus the production of nuclear weapons cannot be justified. Timor-Leste is a small country with a small population. Nonetheless, it has coastlines on two oceans and is linked to two continents. Historically, we were for five centuries the only Portuguese colony in the region, and, during a quarter century, a territory occupied by Indonesia. More than 90 per cent of the population of my country is Catholic, and there are also two minority religious groups — Protestants and Muslims. History determined that we would be different. Our geographical situation conferred on us conditions for converging and relating. We remain different and, within that difference, we find our identity and sense of openness and tolerance. We know that we have something to give, but we also have much to receive. I am a Muslim of Arab descent and the Prime Minister of a country with a Catholic majority. Our tiny Muslim community lives in peace and tranquillity, integrated into society in general without losing its identity and without feeling alienated or discriminated against. The Timorese Catholic leadership has been exemplary in preaching respect and tolerance in relation to all religious faiths, constantly searching for dialogue, cooperation, participation and mutual respect. My country does not intend to put itself forward as a model of tolerance, mutual respect and coexistence between religions. I am speaking about our experience only to say that in this world of hate, violence, intolerance and extremism, there are some oases of tolerance, peace and tranquillity that deserve to be the source of new energy. Fanatics and extremists have existed throughout history and no region or civilization in the world can claim exclusive rights to virtue or truth. In this globalized world, there is no place for racial or cultural, much less religious, superiority. Extremists and terrorists have always existed. The fundamental difference is that the terrorists of today benefit from globalization and make use of modern technology as a means of achieving their objectives. It is rhetoric, and unacceptable, to define different civilizations and religions as a target. The fundamental reason for violence in the world is inequality in development and, in particular, the injustice of the international economic order. The target of extremists and Islamic terrorists is not the West, its culture and dominant religions. Rather, it should be stated that the West is a target as a consequence of the global order. We are witnessing a new reality. The agenda of the extremists is primarily the toppling of moderate and elite regimes and the imposition of theocratic systems in which the universal values embraced by a democratic State are called into question, as they contradict their views. Such an agenda would mean a return to the Middle Ages, with the Islamic extremists determining the fate of their citizens. The fight against extremism, fanaticism and terrorism must be waged on all fronts. One is the military front, where action must be seriously thought through and always implemented with great caution and clear-sightedness. The other fronts include the political, economic and social. The fight against poverty and exclusion must be integrated into our global strategy in the war against terrorism. My Government congratulates the people of Iraq on the end of one of the bloodiest dictatorships in history. The people of Timor-Leste know only too well the significance of a dictatorship. In order to be free of it, we sacrificed hundreds of thousands of our children in decades of unequal struggle. During our struggle for independence and democracy, we always believed that our efforts should be focused on re-establishing international legality in our country, ensuring that the United Nations take responsibility and demanding that the international community respect the Charter and United Nations resolutions on Timor-Leste. 9 My Government defends the concept that the central role of the United Nations must be respected by all countries, in particular those with the means and resources to strengthen the role of our Organization. With regard to the situation in Iraq, it is urgent that international legality be re-established in that country. The only legitimate means of transferring sovereignty to the people of Iraq is to hand over power to their democratically elected representatives. We believe that the Arab League must be a privileged partner of the United Nations in the process of transition and reconstruction in Iraq. As it is a regional organization representing more than 200 million people who mostly profess the same religion, speak the same language and are of the same cultural and historical origin, it must not be ignored or bypassed when its own interests and that of the region are at stake. My country is a good example of the kind of a partnership that can develop when the United Nations and its obvious natural role in the resolution of conflicts and the mobilization of international consensus is recognized. Each process is unique and has its own dimensions and characteristics, but our positive experience can be repeated in other places, and can serve as a reference point for Iraq. I would like to comment on two issues related to the Middle East, beginning with Palestine. We express our deep disappointment that the peace process has regressed and that violence has escalated in that part of the world. We feel encouraged by the presentation of the road map, and hope that it can assist in accelerating the peace process. We reaffirm our support for the road map and for the right of the people of Palestine to self- determination, independence and the establishment of an independent and sovereign State. We appeal to all the parties in that bloody conflict to cease all forms of violence, to resume dialogue and rigorously to respect the road map as agreed to with the Quartet. With respect to Western Sahara, the Arab and Muslim people of that former Spanish Territory continue to wait patiently for the holding of a referendum on self-determination, as agreed to by all parties in 1994. We appeal to the General Assembly, the Secretary-General, the Security Council, the Arab League and the African Union to encourage both parties to return to direct dialogue with a view to establishing a definitive date for the holding of the referendum on self-determination in the territory of Western Sahara. My Government is closely following the situation in Guinea-Bissau. While deploring the military coup that toppled the elected President, we are relieved that there was no bloodshed or loss of life. My Government supports the holding of new elections with a view to the restoration of a constitutional democratic order, if possible within the framework of the United Nations and the Community of Portuguese Speaking Countries, to achieve the necessary support for the bringing of peace, stable government and economic recovery. We regret the breakdown in talks during the most recent round of the World Trade Organization Ministerial Conference held in Cancun. The industrialized nations must understand that the international trade systems must be rectified. It is neither ethical nor moral for the rich countries to preach democracy, human rights and the dogma of a free market, while practising protectionist policies that condemn hundreds of millions of human beings to perpetual poverty and dependency. It is less than ethical when they teach the rules of the free market while subsidizing their farmers with billions of dollars, making the products of our countries, which have a greater comparative advantage, increasingly less competitive. Timor-Leste has benefited from international solidarity, and we are grateful for that. But we cannot remain silent in the face of injustices and anti- economic policies that impoverish the rest of the world. We appeal for the renegotiation of debt and for debt relief for the poor and indebted countries. But we also believe that debt relief must be proportional to the measures taken by each country in adopting strategies for sustainable development and focusing on the eradication of poverty. This means increased expenditure on public health and education, reduced military expenditure, the strengthening of democratic institutions, the promotion of human rights and the independence of the judiciary. Those are conditions that are indispensable for peace and prosperity. In conclusion, I would like to touch on the theme of reform of the United Nations. The creation of this institution was the result of the collective experience of humankind, victim of the greatest scourge in history. 10 We congratulate the founders on their vision, but we are conscious that the institution reflects the reality of that period. In 1945 there were merely 51 Members, and it was viewed as a club for the rich and powerful, a “white man’s club”. But the United Nations today is a truly global institution, with 191 Members. The recent experience of Iraq provoked a new debate on the need for the structural reform of our institution, beginning with the Security Council, which is increasingly being called upon to provide opinions and to intervene in many regions of the world. We support an increase in the number of permanent members of the Security Council to reflect the current demographic reality and the new world balance. Many people are frequently asking themselves, and asking out loud, a few questions, such as “Is it fair for the Western Group to have three permanent seats in the Security Council, while Asia has only one and Africa and Latin America have none? Is it possible that India, the largest democracy in the world, with more than one billion inhabitants, does not have the same status as others? Is it possible that Brazil, with the world’s ninth largest economy and Latin America’s largest, a crossroads of races and civilizations — Ibero- Latin American, African and indigenous people — does not have status as a permanent member of the Security Council?” Throughout its history, Brazil has shown prudence and balance in the conduct of its foreign politics, an active and constructive engagement at the regional and international level and always a voice of moderation and dialogue. There are certain procedures that may have been understandable during the cold war period. But today the way must be made for principles of democratic decision-making that are acceptable and universally practiced. We must question these paradigms. We also believe that the term of the mandate for non-permanent members must be reduced to between six months and one year. That will give the 191 members of our Organization the opportunity to serve in this organ. Besides, a shorter period will allow the less privileged to feel the desire to invest their human and financial resources to serve on the Security Council. The reform and the democratization of a number of organs of our Organization are necessary and urgent. The errors and failures of the past, when the Security Council was powerless and indifferent to human tragedy, should compel us all to have the courage to accept a fair share of the decision-making that affects us all. Let the big, rich and powerful know that humility is the greatest virtue. Leadership means knowing how to dialogue, persuade and build alliances and consensus. There are challenges ahead. There are many threats. The resources of 191 countries are represented in this huge Organization. To respond to these challenges and threats, we must unite and build bridges of consensus and active cooperation. Allow me to conclude by saying that the future belongs to the optimists. We are here today because we favour optimism. That is why the struggle must continue.