May I first of all salute the government and people of Indonesia, who have prepared.this meeting and offered such a cordial welcome. Ishould also like to thank the government of Singapore which took on the heavy task of coordinating relations between ASEAN and the European Union as well as all the ASEM work in its capacity as ASEAN Co-ordinator. Lastly let me congratulate the government of Thailand for its considerable contribution to the success of the Asia-Europe encounter in Bangkok.

The Bangkok Summit has opened an historic new page in relations between our two regions. Its declared aim to contribute to peace, global stability and security will benefit to all. As the President of the EU Council, Mr Spring, has explained, we must now respond to the expectations of our business-men but also of our general public: the economic potential for our cooperation is considerable and dialogue within such a rich diversity of cultures is fascinating. Putting into operation a process of such dimensions is bound to be difficult, but I can assure you of the willingness of the European side to fully contribute to it and contribute with all the expertise at its disposal.

We also have before us another challenge: to rejuvenate and reinforce the partnership, which for a long time now, links the Community with ASEAN. Over 1995, trade between the Community and ASEAN grew by more than 17%, compared with the general growth in the world trade of 8%. EU investments in the region are in full flood, European business having realised the importance of being present in such a dynamic market. What is at stake for the future of our cooperation is clear: to take into consideration new realities, bring a greater dynamism into our dialogue and build on the excellent relations which we have developed and extended since the mid 1970s.

ASEAN has now launched itself on an ambitious project. Your heads of state and government took a major step forward when they decided at your last Summit to move ahead decisively in achieving the ASEAN Free Trade Area and broadening its scope. I note indeed with great interest the substantial growth in trade between the member countries of ASEAN. This new source of growth for your respective economies gives great pleasure to us in Europa for we have always supported the ASEAN process of regional integration.

When we created our Single Market, our experience in Europe demonstrated that its positive effects were felt not only inside the EU but also by our external partners. So we hope that ASEAN will follow the same path which leads to third countries also benefiting and avoids the creation of a fortress.

May I nevertheless take this occasion, Mr Chairman, for drawing your attention to some of the kind of difficulties which arise in regional liberalisation. We know by experience how difficult it can be to carry through the sometimes painful structural ad justments that are required.

It is not always easy, and we have experienced it on numerous occasions to ensure that the common interest takes precedence over particular interests. All the same for a regional integration project to advance, national sacrifices have necessarily to be accepted. In the EU's case, particular attention was devoted to ensuring a fair distribution of the fruits of this integration between regions in line with respective abilities to make the best use of it.

Europe is watching with admiration the economic miracle in South East Asia and would like to continue to contribute to it. For this to be done it is necessary that the members of ASEAN maintain the important efforts they have already made to liberalise their economies. For European business, to invest and develop their technologies in the region, they need to be assured that this process is irreversible. If discriminations continue or important obstacles to the import of goods or services or investment, these go against that requirement.

In this respect, the globalisation of the world economy brings with it new responsibilities. When the G7 members recently met at Lyon, they made known their concern about making globalisation "a success for the benefit of all". The conclusions of the Bangkok Summit go in the same direction, in particular regarding the importance the participants attached to the multilateral trading system. If the EU praises so much the WTO, this is because it is the only institution, with its rules and disciplines, which can guarantee that the interests of all parties are respected. We know that this attachment is shared by the countries of ASEAN since we have been able to rely on their support in the WTO to promote a number of important Issues.

New global challenges also require us to join forces. This is particularly the case for the protection of our environment - the rapid economic growth in the ASEAN region involves high risks for the preservation of a natural habitat of an unlimited variety and richness. We, in Europe, have already walked down this path. Today, we are seeking to correct past mistakes but find ourselves confronted with irreparable losses. The European Union knows the importance our ASEAN partners attach to environmental issues: we have already supported large-scale programmes in the region and will continue to consider this Objective as a priority. Also, ASEM should offer the possibility for a better coordination in this area.

Another global challenge concerns the welfare of our populations and their social development. The European Union claims and will continue to claim for the respect of fundamental social rights, particularly concerning the banning of forced labour. It considers this type of practices as degrading for humanity as such and therefore prone to mobilising us on a unanimous scale.

This endeavour is in no way intended to. put into question the comparative advantage developing countries enjoy because of they lower labour costs. The important assistance offered by the Community and its Member States in the area of social development illustrates our will to help rather than to sanction.

Indeed, Europe is deeply conscious that Southeast Asia still has important development needs. It remains strongly committed to a development cooperation focused on the poorest regions and most unfavoured categories of the population.

I would like to centre my concluding remarks precisely in the recent developments aiming at better coordination amongst us in all these areas. I am pleased to note that most of those ASEAN countries and Dialogue Partners present here today have already expressed their wish to cooperate, within the ASEM or G7 contexts, on the new challenges created by globalisation. I am confident our collective resolve will successfully translate this willingness into concrete programmes.

Thank you.