Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	SRI PERDANA, KUALA LUMPUR 
Tarikh/Date 	: 	03/03/97 
Tajuk/Title  	: 	THE OFFICIAL DINNER IN HONOUR OF 
			H.E. ZLATKO MATESA PRIME MINISTER 
			OF THE REPUBLIC OF CROATIA 



   1.    My  wife  and I have great pleasure  in  welcoming
  you,  Mr.  Prime Minister and members of your delegation
  to  Malaysia.   Your visit to Malaysia is  an  important
  milestone  in  the  close  and friendly  relations  that
  Malaysia  and Croatia have been able to develop  in  the
  past six years.
  
  2.    In  the  course of my two visits to your beautiful
  country  I had the opportunity to observe the tremendous
  progress  being  made to uplift the  well-being  of  the
  Croatian  people.  Important steps are also being  taken
  to  establish  a durable peace not only in your  country
  but  also  in  the  surrounding region.   A  climate  of
  peace, stability and mutual trust and confidence  is  an
  important  prerequisite  to economic  growth.   I  fully
  appreciate   the  important  steps  that  the   Croatian
  Government has taken.
  
  3.    The economic stabilisation programme which Croatia
  has  actively pursued has generated positive results  in
  bringing  renewed confidence to the business environment
  in  Croatia. Towards this end, Malaysian companies  have
  been  encouraged to tap the economic potentials  through
  joint-ventures  with  the Croatian  companies.   Indeed,
  Croatia's strategic geographical position in the  region
  makes  it a logical gateway to Central and South-Eastern
  Europe.
  
  4.    Malaysia views Croatia as an important conduit for
  trade   and  services  with  Central  and  South-Eastern
  Europe.   With Croatia's ability to adapt  to  the  fast
  changing   international  business   environment,   more
  business  ventures could be generated  between  our  two
  countries.  We are encouraged that Malaysian  goods  are
  becoming  more visible in Zagreb and we hope  the  trend
  continues.   By  the same token Malaysia  hopes  to  see
  more  Croatian goods in our country.  There is no  doubt
  that  tremendous opportunities exist for increased trade
  and investment cooperation.
  
  5.    Malaysia  has had some experience  in  building  a
  peaceful,  stable,  prosperous multi-ethnic  and  multi-
  religious  society.   Our  plural  society  has   helped
  create  a unique Malaysian cultural identity.  We  place
  great  emphasis  on  the importance of  all  the  ethnic
  groups  working together harmoniously as a united  force
  to  compete  globally in the regional and  international
  market.    Rather   than  look  back   at   historically
  different  ethnic  origins, we have  looked  forward  to
  bridging   the   differences  through  creating   mutual
  understanding  and a healthy respect for  one  another's
  customs and culture.
  
  6.     Malaysia   welcomes  Croatia's   foreign   policy
  commitment to play a positive and constructive  role  in
  ensuring  that  durable  peace prevails  in  the  South-
  Eastern    European   region.    While    Croatia    has
  successfully   attained   its   1,000-year   dream    of
  nationhood,  Bosnia and Herzegovina is  still  grappling
  with  the  fundamental  issues of territorial  integrity
  and  governance.  With Croatia's understanding  and  the
  crucial  role  of  the international community,  Bosnia-
  Herzegovina  has been given a sovereign  personality  of
  its  own.   This  sovereign  personality  can  only   be
  nurtured  through  an extraordinary  effort  to  rebuild
  that  country.   In this regard, Malaysia is  encouraged
  by the support shown by Croatia.
  
  7.    The  people of Malaysia have followed closely  the
  plight  of  Croatia  and Bosnia and  Herzegovina  during
  these  turbulent years.  As a multi-religious and multi-
  ethnic  society, our hearts reach out to the victims  of
  fratricidal wars - the innocent and the oppressed.   The
  trauma,  the  suffering and the untimely death  are  the
  same  whether  they  are  Muslims,  Catholics,  Orthodox
  Christians or others.  The memory of the horrors of  the
  four-year  old war lingers on.  It will not be  easy  to
  forget.   Obviously,  we  must first  rebuild  what  was
  damaged  by  that war.  Hopefully this will help  remove
  some  of  the scars of the war both mental and physical.
  Time  we  hope will heal the wounds and a new  and  more
  tolerant society will emerge.
  
  8.    Malaysia  intends to continue  to  cooperate  with
  other  countries in building a climate of durable  peace
  in  South-Eastern  Europe.  We believe  that  peace  and
  stability  in Bosnia and Herzegovina will  be  good  for
  the  entire  region.  It will be good  for  Serbia.   It
  will  also  be  good  for  Croatia.  Confidence  in  the
  business  climate will improve and the uneasy  political
  and  security situation will no longer be  a  source  of
  concern.   With regional stability in place,  the  focus
  of government can shift to urgent economic priorities.