At the outset, it is my pleasure to congratulate the President of the Assembly on his election to preside over the sixty-third session of the General Assembly and to wish him every success. We also wish to thank his predecessor, Mr. Srgjan Kerim, for his successful presidency of the Assembly during the previous session. We should also like to express our appreciation for the important and outstanding role of the Secretary- General of the United Nations, Mr. Ban Ki-moon, in support of the purposes and principles of the Charter of this Organization. More than a year ago, the world witnessed the emergence of new international challenges and perils that hinder and disrupt efforts to achieve sustainable development in numerous countries, especially developing countries, and in particular the least developed among them. Most significant among those perils are the rise in the cost of food, basic commodities and energy, as well as climate change. The danger of those challenges lies in their global impact; their effects transcend national borders. No barrier or artificial restraint can withstand them. They will cause the international community to backslide significantly in achieving the Millennium Development Goals. Indeed, we have begun to see the negative effects of those threats in the African continent, which has achieved no significant progress in the eradication of poverty and hunger or in the struggle against such dangerous infectious diseases as AIDS and malaria. Instead, these challenges have exacerbated the suffering of most African States. Those challenges, alongside such dangers to security as terrorism, the proliferation of weapons of mass destruction and human rights violations, pose a serious threat to international peace and security, and meeting them will require prompt, collective, united and firm action under the umbrella of the United Nations and its various agencies. We must also remain firmly committed to the agreements and conventions that we have signed and ratified, and implement transparently and honestly the resolutions we adopt in international meetings and conferences. While the State of Kuwait supports the reforms that have been adopted in our international mechanisms, the ongoing changes in and transformation of the world order and the emergence of new problems and challenges call for continued reform and the restructuring of many United Nations bodies to accompany those changes and improve their performance. In that regard, we reiterate our demands for necessary improvements in the working methods of the Security Council, including greater transparency in its work and an expansion of its membership pursuant to standards and controls to ensure equity in its representation and efficiency in the performance of its duties and responsibilities in the maintenance of international peace and security. Such reform must also take into consideration the legitimate demands of Arab and Islamic countries and the aspirations and interests of small States. The State of Kuwait is pursuing its efforts to achieve economic and social development and to improve the living conditions of Kuwaiti citizens and alien residents. Kuwait has made good progress in implementing the commitments and resolutions of the 2005 World Summit. It has achieved all the Millennium Development Goals, including those on education and health, and advanced the role and empowerment of women in society. Furthermore, in carrying out the wishes of His Highness Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, Amir of the State of Kuwait, to transform Kuwait into a regional financial and business centre, the Kuwaiti Government has taken numerous important decisions and adopted new policies with a view to restructuring the national economy and consolidating trade and investment activities so as to provide an investment atmosphere 08-51851 30 conducive to attracting national and foreign capital investment in such vital economic sectors as energy and infrastructure. The State of Kuwait has spared no effort in continuing to provide development assistance to developing countries, particularly the least developed, through its official and non-official institutions. That consistent approach of Kuwait’s foreign policy emanates from its conviction that strengthening the economies of the developing countries and helping them fulfil their development goals will be beneficial to all. It will broaden the horizons of partnership, cooperation and solidarity and consolidate the global economic and trading systems. Since its establishment in 1961, the Kuwait Fund for Arab Economic Development has provided grants and loans to finance infrastructure projects in developing countries. The gross total amount disbursed in grants and concessionary loans by the Fund since its establishment in 1961 is over $12 billion and has benefited more than 100 countries. The State of Kuwait continues to meet its financial obligations to international financial institutions and specialized international agencies in a full and timely fashion. The Government of the State of Kuwait decided in December last year to allocate 10 per cent of all its contributions and donations to disaster-affected countries to specialized international organizations and agencies working in the field. In response to the suffering of many developing countries in the difficult economic conditions resulting from the increase in food and energy prices, the State of Kuwait has established the Decent Life Fund, with a capital of $100 million, to develop and improve agricultural production in developing countries. Kuwait has also announced the donation of $150 million to the Fund, which was established at the most recent summit conference of the countries members of the Organization of Petroleum Exporting Countries, held in the sisterly Kingdom of Saudi Arabia. That donation was earmarked for research studies in the fields of energy, environment and climate change. The State of Kuwait continues to follow a balanced oil policy that takes into consideration the interests of consuming and producing countries alike and seeks to maintain stable oil prices on the world market. However, the unjustified rise in prices, which is a source of concern, is caused by factors that are out of the control of the producing countries. They include speculation, additional taxes on fuel, and the failure to build new refineries and to upgrade existing ones. The ongoing impact of all of those factors has aggravated the economic crises and led to rising rates of inflation in the developing countries. In that context, we express our deep concern over the financial crisis in the world markets. We welcome in that regard the bold steps and actions taken by the United States Government to address the mortgage crisis and to mitigate its negative effects not only on the United States economy, but also on the economies of other States around the world. Achieving sustainable development in the Middle East will depend to a large extent on the ability of the countries of the region and the international community to address security issues and challenges that are a constant source of tension and instability. In our desire to achieve peace, we call on the international community now and in the future to help calm the hotbeds of tension and instability. Any genuine and serious desire to achieve a comprehensive, just and lasting peace must adhere to the relevant resolutions of international legitimacy, the principle of land for peace, the road map adopted under Security Council resolution 1515 (2003) and the Arab peace initiative, leading to the attainment by the Palestinian people of all their legitimate political rights and the establishment of their independent State on their own land. We reaffirm our full support for the sisterly Syrian Arab Republic in recovering its occupied lands. We also express our support for the sisterly Republic of Lebanon as it pursues dialogue between all Lebanese parties in implementation of the agreement signed in Doha, capital of the sisterly State of Qatar. The State of Kuwait welcomes the progress achieved by Iraq in combating terrorism. It commends the Iraqi Government’s efforts and diligent endeavours, whose fruit include an obvious improvement in the security conditions in most Iraqi provinces. The State of Kuwait hopes that those endeavours will continue towards comprehensive national reconciliation and consensus leading to a democratic, free, secure and independent Iraq, living in peace with itself and its neighbours and respecting its international obligations and commitments. 31 08-51851 For its part, Kuwait will spare no effort in supporting regional and international efforts to assist Iraq in facing its security, political and economic challenges, as well as its efforts to ensure its security, stability, political independence, sovereignty and territorial integrity, and non-interference in its political affairs. In that context, the State of Kuwait hopes that contacts between the sisterly United Arab Emirates and the friendly Islamic Republic of Iran will continue at all levels in order to find a solution to the conflict over the occupied islands of the Emirates in accordance with the principles and rules of international law and the policy of good-neighbourly relations. While the State of Kuwait stresses the right of all States to produce, develop and use nuclear energy for peaceful purposes within the framework of the Treaty on the Non-Proliferation of Nuclear Weapons (NPT), it calls upon the friendly Islamic Republic of Iran to pursue its cooperation with the International Atomic Energy Agency in order to dispel the fears and doubts about the nature of its nuclear programme. It also urges Iran to address all other outstanding issues. We call on the international community to continue its efforts and endeavours to seek a peaceful solution that would spare our region from crises or wars that could undermine its security and stability, and to deal seriously and without favouritism with any country in the region not party to the NPT. That would pave the way for declaring the Middle East a region free from weapons of mass destruction of all kinds. All the peoples of the world yearn to live a free, decent life in a safe and stable world in which justice, equality and a clean environment free of conflict, diseases and catastrophes prevail. It is our collective responsibility to lay the foundations for a new partnership, based on fair and balanced rules of justice and equality, in which each party would assume its responsibilities and obligations to realize the aspirations and hopes of our peoples.