STATEMENT

MINISTER OF FOREIGN AFFAIRS, TOURISM

AND INFORMATION

Mr. President,

I also thank His Excellency Theo Ben Gurirab, who led the 54 th Session of the General Assembly with distinction and efficiency.

I commend His Excellency, Kofi Annan, the esteemed Secretary General of this organization, for the thoughtful recommendations which he has put forward in his report to the Millennium Summit entitled: "We the Peoples: The Role of the United Nations in the 2 1 st Century". His vision and stewardship have proven to be vital factors in advancing the work and mission of the United Nations at this critical time in the history of the Organization and the world.

I join with the previous speakers in welcoming the nation of Tuvalu as the one hundred and eighty- ninth (I 89th ) and newest member of the United Nations family. Our newest entrant is also the smallest member country of the Organization with a population of ten thousand (10,000) people and a land area of nine (9) square miles. It was very pleasing to my delegation to see the leader of this nation proudly take his place among the other leaders of the world in what was the largest gathering of Heads of State and Government ever assembled in one place, during the Millennium Summit. There is a special affinity between the countries of the Caribbean Community (CARICOM) and Tuvalu. We are among the smallest constituents of the organization. We share similar historical and constitutional experiences. We face the same environmental threats. We look forward, with confidence, to a future involving the creative utilization of phenomenal developments in the area of information technology.

My country's Prime Minister, the Rt. Hon. Sir James F. Mitchell, joined other leaders from the Caribbean Community (CARICOM), of which he is the current Chairman, in denouncing the growing insensitivity and disregard for the interests of small developing countries by the powerful in today's world. In his address to the Millennium Summit the Prime Minister noted that while our religious heritage has taught us how to reach across the boundaries of nations through the very inspirational guideline, " love your neighbor as yourself', small and vulnerable island states such as our own are being victimized by the application of international rules crafted by the mighty to serve their own purposes, oblivious of the concerns of, and consequences for the well-being of others. We are all affected by the modalities of the global village which we inhabit through revolutionary developments in communication technology. Indeed we have all become neighbours, and yet the competition amongst the world's peoples has become fiercer, with the rich countries surging ahead and widening the gap with poor countries. This gap is now not only related to material wealth, but also, frighteningly, to the ability of less developed countries to compete in the accepted medium of communication, through the existence of an ever-widening 'digital divide'.

The Millennium Summit concluded with the adoption by world leaders of a declaration affirming the importance of the United Nations, and the need to strengthen its peacekeeping operations, as well as making commitments to targeted reductions in poverty, the levels of inhumane living conditions experienced by impoverished populations around the world, the incidence and spread of HIV/AIDS and the provision of basic education for all children. On the other hand Mr. President, we are aware that the current world order is rapidly falling out of time with today's realities, and that there is pressing need for the international community to come together and address the numerous challenges before us.

We must acknowledge that efforts to address old issues, like world poverty and its distribution, as well as new ones arising from globalization, the rapid growth of information technology and the resulting digital divide, the consequences of environmental degradation of our planet, HIV/AIDS, and gender issues, among others, have largely been inadequate. Our common and daunting task is therefore, to ensure that this "globalized" world would be beneficial for all and not just for some. In so doing let us put our words into action and agree on a common vision of our future.

More than ever before, there is an urgent need to foster a consciousness of universal moral values in order to deal with present day problems, all of which are assuming an increasingly global dimension. The promotion of peace and human rights, the settling of armed conflicts, both within and among states, the protection of immigrants, the safeguarding of the environment, the battle against terrible diseases, the fight against drug and arms trafficking, money laundering, economic and political corruption, are issues which no nation, regardless of how wealthy or powerful, can successfully address alone. They concern the entire human community, and must be addressed and resolved through common universal efforts.

My country, a small archipelagic state in the Caribbean, has always been aware of its interdependence with other countries, for its prosperity and security. We have moved to advance our interest through multi-lateral cooperation in the Organization of Eastern Caribbean States (OECS), CARICOM, the Organization of American States (OAS), the Association of Caribbean States (ACS), the Commonwealth, and the institutions of the United Nations system. For us in a small developing country like St. Vincent and the Grenadines, multi-lateralism is not an option. It is an integral part of our policies and programmes to enhance our standard of living and create a better life for all our people. I therefore reiterate my country's commitment to and support for the work of the United Nations and its agencies in this regard.

The Millennium Summit provided an appropriate opportunity for the assembled leaders to rededicate themselves to impact and change for better, the quality of life of the world's poorest peoples, entrapped in a vicious cycle of deprivation and suffering. The Summit will prove worthwhile if it is remembered not as a fiigh-profile event to make the transition to a new millennium, but an event that makes the transition from words to deeds. The times demand nothing less.

The security, welfare and development of people must, in the context of any New World Order dominate the attention of the world's multilateral financial institutions as well as the United Nations. We must undertake sustained and concerted efforts to free our people from poverty, hunger, illiteracy and disease. While micro-credit and other poverty alleviation programmes have been successful, much needs to be done to eradicate poverty. In this era of plenty, millions still suffer from hunger. We had curbed old diseases like malaria, cholera and tuberculosis, but they have re- appeared in new and drug resistant forms. Deadly diseases like HIV/AIDS are spreading at an alarming pace. The leaders of the Caribbean Community have placed combating this pandemic at the top of the regional priority list in public health and education. This scourge has already claimed the lives of over ten (10) million people. It is projected to claim the lives of over two hundred (200) million by the year 2010, the majority of them in Sub-Sahara Africa. The developed world is not spared either. Worldwide figures indicate that thirty-four point four (34.4) million people are living with the disease; eighteen point three (18.3) million have died since the beginning of the epidemic and over thirteen point two (13.2) million children have become orphaned. In the Caribbean region the disease now threatens the human resource development efforts of CARICOM member states and could reverse the social and economic gains of those countries and the sub-region. The prevalence rate in the wider Caribbean is estimated at one hundred and seventy-two (172) cases per one hundred thousand (100,000) people, the highest rate of prevalence in the Americas and second in growth rate to Sub-Sahara Africa. A United Nations AIDS survey of 1999 showed that over three hundred and sixty thousand (360,000) adults and children in our region were living with the disease. There is no immunity. International cooperation in the medical, ethical and legal fields must be intensified if the disease is to be contained.

We cannot preach about human rights and the universality of the United Nations, while at the same time ignore the aspirations of over twenty-three (23) million people in the Republic of China on Taiwan. It is the view of the St. Vincent and the Grenadines delegation that the time has come when serious consideration should be given to the eligibility of the Republic of China on Taiwan becoming a member of the United Nations. In this regard, my Government is urging that the subject be placed on the agenda of the Fifty-Sixth Session of the General Assembly. We also urge every member state of this noble organization to give its full support to this worthy initiative for a country whose democratic credentials cannot be challenged.

St. Vincent and the Grenadines welcomes the progress made in the Middle East peace process thus far, and expresses the hope that through dialogue, compromise and good will, the dream of lasting peace may become a reality.

If countries like St. Vincent and the Grenadines are to survive globalization, the international community must give careful and urgent consideration to the following measures: the revitalization of growth in developed countries; the lowering of interest rates; access to the world's markets for products of developing countries; the reduction of debt and the debt service burden; reversal of the deteriorating situation in the marketing arrangements for primary products produced in the developing countries; economic diversification; increasing the levels of official development assistance and humanitarian aid; reductions in net capital flows from bilateral and multilateral sources; and the negative consequences of graduation of some countries like ours, by international financial institutions from concessionary funding arrangements. St. Vincent and the Grenadines share the concerns of other developing countries in regard to the general decline in official development assistance and the flow of foreign direct investment to developing countries. We look forward to the consultation on Financing for Development planned for 2001.

The changing world environment dictates the need for the revitalization and restructuring of the various organs of the United Nations organizations, but my Government attaches very high priority to the revitalization and strengthening of the role of the United Nations in promoting international cooperation for economic and sound development. We share the view that the United Nations should be encouraged to develop its full potential in the area of international economic cooperation and should be endowed with the requisite resource to contribute to solving the serious economic and social problems facing developing countries in their efforts to achieve sustained economic growth and development. We commend those donor countries that have made financial contributions to the South Pacific Geosciences Commission (SOPAC) to assist the development of an Environmental Vulnerability Index (EVI), and call for the early adoption by the international community of a vulnerability index which would serve as a guide for multilateral financial institutions and the United Nations on the specific vulnerabilities of developing countries.

St. Vincent and the Grenadines, like other small island developing states in the strategically located Caribbean region, continues to be plagued by the endemic problems of the production, trafficking and consumption of illicit drugs and psychotropic substances. This modem day scourge continues to pose serious problems which threaten to destroy the social and moral fabric of our communities. My Government is fully committed to the on-going processes of cooperation with other countries to counter these illegal activities. In this regard, I wish to reiterate, in this forum, our complete support for the Multilateral Evaluation Mechanism (MEM), developed by the member countries of the OAS to monitor countries' cooperation in the international fight against the drug trade. I also take this opportunity to urge that more resources be allocated, through collaborative efforts by the international community, to woo farmers away from the production of illicit crops.

In his address to the Millennium Summit, the Chain-nan of CARICOM spoke of the outstanding and invaluable record of good governance and respect for human rights and democracy in the Caribbean region. These are aspects of our society of which we are eternally proud.

Recently, in St. Vincent and the Grenadines, our constitutional democracy was put to the test through open expressions of dissent, but withstood the ordeal with dialogue and compromise. My Government is pleased to put on record its appreciation to the Vincentian people for upholding democratic values, and respecting the supremacy of the constitution and the rule of law as fundamental principles by which our beloved country exists and governs itself. I also wish to express gratitude to the CARICOM Secretariat, OECS member states, the churches, the National Youth Council, the Chamber of Industry and Commerce, the Employers' Federation, individuals and other institutions, for their invaluable contributions in bringing about a swift resolution of the matter. My Government has long recognized the urgent need for constitutional reform and will continue to work with other interested parties to bring about meaningful change that would seek, among other things, to strengthen the foundations of our democracy. As full members of this august body, we have seen, at close quarters, the importance of constitutional reform in the promotion of democracy, stability and economic development.

We also recognize that constitutional reform is crucial to strengthening our own integration processes within the Caribbean Community, including the establishment of a Caribbean Court of Justice, to be, inter alia, the authoritative body adjudicating on matters pertaining to the interpretation and implementation of the provisions of the Treaty of Chaguaramas which established CARICOM.

Many matters of profound importance to St. Vincent and the Grenadines and the Caribbean Community as a whole are included in the agenda of this 55 th Session of the General Assembly. These include: Sustainable development; the future of United Nations Reform; the International Criminal Court and Human Rights; the Death Penalty; and Financing for Development.

I wish, once again, to focus the attention of this noble gathering to the cause of the Caribbean banana trade with the European Union. The facts are well documented. Banana exports to the European Union from my country and similarly from Dominica, St. Lucia and other African, Caribbean and Pacific (ACP) producing countries are crucial to the economies of these countries and represent over half of all export earnings in some cases. The industry provides substantial employment for many families in Dominica, St. Lucia and my own country.

St. Vincent and the Grenadines is appreciative of the efforts of the European Commission and other parties which seek to bring about an amicable and equitable solution to the dispute. However we are deeply concerned that, should the tariff quota regime be eliminated as a means of ensuring conformity to the 1999 World Trade Organization (WTO) ruling, this would have immeasurable harmful consequences for our economy. It will lead to the destruction of the Caribbean banana industry and negatively affect other ACP supplying states where exports are also crucial to the economy.

The two alternative solutions being proposed by the European Commission, i.e. a first come, first served (FCFS) system, along with a tariff rate quota; and, if that proves impracticable, moving directly to a tariff only system, would prove to be disadvantageous and disastrous for the Caribbean industry. Neither system ensures access.

We therefore urge the interested parties to the dispute to use their substantial influence to bring about the much-needed break-through which will facilitate a resolution that is acceptable to all parties. Mr. President, an efficacious settlement of this long-standing issue will support our efforts, as a small economically vulnerable island state, in eradicating poverty, and maintaining peace and economic security, which are vital for the achievement of economic diversification within a reasonable period of transition.

While we recognize that there are structural and inherent disadvantages which inhibit our ability to compete with highly integrated operations on the market, we ask that an equitable solution be sought in order to allow our people to engage meaningfully in trade and development, rather that be forever subjected to the aid and dependency syndrome. Our expressed desire to hold on to our banana industry, which served us well, in no way reflects any misunderstanding of the realities of the present day trade and economic environment.

My delegation also wishes to express its concern over the procedural obstacles raised in Geneva within the WTO which would prevent consideration of the waiver requested in respect of the new ACP-EU Partnership Agreement, if it includes bananas without advice on how the regime will be formed. My country and other members of the Caribbean Community have been actively engaged in diversifying our economies throughout the last quarter of the last century. This involved activities in the agricultural, manufacturing, tourism and service sectors. In St. Vincent and the Grenadines, as a direct corollary of this thrust, we have improved air access to our country, and my Government continues to prioritize the education of our people to prepare them for the opportunities that will accrue.

My Government will continue to honour its commitments to all international agreements to which it is signatory. In furtherance to our international obligation we have signed the following:

I. United Nations Convention on Contracts for the International Sale of Goods

II . Convention on the Recognition and Enforcement of Foreign Arbitral Awards

III. United Nations Convention on the Carriage of Goods by Sea

IV. International Convention Against the Taking of Hostages Convention on the Prevention and Punishment of Crimes against Internationally Protected Persons

All of these instruments were deposited with the Secretary General during the Millennium Summit.

During his speech at the Millennium Summit, Prime Minister Mitchell stated that, "small island states, such as our own, with an enviable record of good governance and human rights, having seen the mighty in the banana trade using the international rules, drafted by them, impede our economic growth". Similarly, the verdicts that have been imposed by the Organization for Economic Cooperation and Development (OECD) on our financial services, without any deference to our rights to be heard, demonstrate total disregard for the well being of small vulnerable states attempting to diversify their economies. I echo his sentiment, "Where is the fairness in free trade?"

Offshore financial services is one of our chosen avenues of economic diversification. We believe that we are capable of offering a useful, professional and mutually beneficial service to our clients. Accordingly, in 1995 we embarked on a comprehensive legislative exercise to ensure that we put in place a regulatory and supervisory framework to adequately administer the conduct of international financial businesses operating in St. Vincent and the Grenadines. In our efforts to further strengthen our regulatory regime against money laundering activities, we enacted six (6) additional pieces of offshore legislation. St. Vincent and the Grenadines is committed to being a responsible member of the international community, including playing its part in the war against money laundering.

We believe that those who toil to build a better life for themselves, their children, grandchildren, and any other beneficiaries, should be afforded the right of privacy in their affairs. Such people should have access to facilities that will preserve that privacy and the opportunity should be created for them to optimize and maximize their wealth. It is, however, important to note that whilst we believe in the preservation of privacy, we are also resolute in efforts to ensure that persons of undesirable character and conduct are not allowed to take advantage of the opportunities that are available in our international finance sector.

My country and others in the Caribbean Community are deeply concerned that the OECD's so-called harmful tax initiative, is designed to frustrate tax competition, and threatens the sovereignty of small island states desperately seeking creative avenues for survival. Such action, on the part of the OECD, could encourage the creation of a tax cartel, thereby removing the possibility of lower taxes from those who wish to legitimately escape them, through the exercise of free choice. They will also close off an area of diversification and economic activity in which poor developing countries can be competitive and which they have actively promoted for a long time. The unilateral practices of the OECD, the Financial Stability Forum (FSF) and the Financial Action Task Force (FATF) also impact negatively on the burden of taxation in wealthy countries, impair the competitive capacity of Caribbean jurisprudence in the provision of a global financial service and stifle economic growth in the forty-seven (47) countries blacklisted with all its concomitant evils.

The small island developing states of the Caribbean are among those countries most at risk from the adverse effects of climate change. Already many of our islands are experiencing the effects in areas that impact directly on the important tourism sector of our economies. We are also prone to extremely damaging natural disasters especially hurricanes and storm surges which visit us annually with increasing frequency and ferocity. Our diverse region also experiences droughts and floods, volcanic eruptions and earthquakes, with equally devastating effects, if less regularly than the pleasantly named perennials. The continued committed support of the international community is crucial in complementing the work of these states in addressing these serious problems.

Our survival as a region is intimately interwoven with our environment. Our physical and economic limitations should not be further burdened by the trans-shipment of hazardous waste through our waterways. Such actions are a flagrant violation of our human rights and an affront to our sovereign dignity. We therefore reiterate the call for the Caribbean Sea to be a nuclear-free zone in the context of sustainable development.

In closing, I take this opportunity to pay tribute, in this forum, to one who has upheld the highest ideals of the Charter of the United Nations, through service to our country, the Caribbean and the international community. I speak of the distinguished Prime Minister of St. Vincent and the Grenadines, and current Chairman of the Caribbean Community, the Rt. Hon. Sir James F. Mitchell. For thirty-four (34) years he has served as an elected member of our legislature. He has seen our country through the stages of constitutional development, from crown colony to internal self- government and finally as our longest serving Prime Minister in a fully independent state. For us, in St. Vincent and the Grenadines, it is difficult to contemplate public life without Sir James. His address at the Millennium Summit was his last to this august body, for he has decided to demit office as Prime Minister before the twenty-first (21st) anniversary of our political independence on October 27th , 2000. Sir James Mitchell has made us all proud by his long, dedicated and visionary service. The initiatives taken by him in the area of Land Reform, thereby empowering people through land ownership, are exemplary. I think it is appropriate that I extend on behalf of Vincentians everywhere sincere gratitude to him from this exalted podium.