THE PRESIDENT OF THE REPUBLIC OF FINLAND, MR MARTTI AHTISAARI,

AT THE OPENING OF THE CONSULATE GENERAL OF FINLAND

IN SHANGHAI, APRIL 18, 1996

It is a great pleasure to celebrate the opening of the Consulate General of Finland in Shanghai. The decision to establish it was born out of the demands which the continuing expansion of relations between our two countries has created - not least in the fields of trade and the economy. The opening of a Consulate General highlights the increasing significance of Shanghai in China.

Finland is an old friend of the People's Republic of China. Diplomatic relations between our two countries date from 1950. Both commercial and economic and cultural relations were lively right from the start. A cultural delegation, led by Mrs Sylvi Kekkonen, visited China in 1953. The following year was Finland's turn to welcome the first official guests from China, this time a commercial delegation led by Vice-Minister Lei Renmin.

Subsequently, thanks to the Chinese policy of reform and opening-up to the outside world, relations between our two countries have become considerably more active. Our Prime Minister and our Minister for Foreign Affairs visited China in the middle of the 1980's, and the first state visit took place in 1988 my honoured predecessor, President Mauno Koivisto, visited China. The President of the People's Republic of China, Jiang Zemin, made an official visit to Finland last July. Prime Minister Li Peng and the chairman of the Chinese People's Political Consultative Conference, Mr Li Ruihuan, have also visited Finland.

Relations between our two countries have been good and founded on trust in spite of the many changes which have taken place in our continents and affected the entire international order during the last four decades.

Finland's relations with China belong to the wider network of relations between the European Union and your country. Finland's membership of the European Union has increased our opportunities to expand and intensify our relations with states in Asia. A communication issued by the Commission of the European Union on the long-term policy to be pursued in relations between China and Europe, states that these relations form a natural cornerstone of Europe's relations with Asia. The European Union is trying to integrate China into cooperation in a constructive manner and thus to contribute to the success of China's reform policy. Finland has, of course, committed herself to the Union objective.

The volume of trade between Finland and China quadrupled between 1990-95, and last year it grew by 20-30%. The rapid economic growth and opening-up of China have led to large industrial and infrastructure projects in various fields. Finnish industry, especially in the sectors of mechanical engineering, energy, telecommunications and protection of the environment, is capable of offering the kind of advanced technology that suits the growing needs of China well. Our economies are in many respects complementary, which creates a good foundation for a further expansion of cooperation.

A high level Finnish industrial delegation is accompanying me during this visit. It shows that Finnish enterprises are highly interested in China. A growing number of Finnish companies have also established in China and they are prepared for sustained participation in the development of this country.

Increasing contacts and cooperation require the creation of as good transport and traffic connections as possible between the two countries. This applies particularly to air traffic between the capitals, which is already clearly on the increase. With flows of goods also growing, we should study possibilities to start direct rail transport between Finland and China.

The authorities and governments are responsible for the creation of as good preconditions as possible for trade and other economic cooperation. I am convinced that high-level visits between our two countries will have a favourable effect on prospects for trade in this respect.

China has made significant social and economic progress. The world is following this historic process of change with great expectations.

The trust that characterises relations between Finland and China is manifested in the fact that representatives of our countries at all levels have been able to exchange views on any subjects. Human-rights issues are important and play a natural role in dialogue between our countries. We have together created good preconditions for concrete cooperation between the Finnish and Chinese legal authorities. Finland aims to introduce the Finnish legal system and experiences of its development to the Chinese authorities. We are prepared to continue this cooperation.

The peoples of Finland and China have been brought considerably closer to each other through the cultural interaction, based on exchange agreements, that has continued over several decades. Alongside these, commercial cultural relations have also developed favourably. We especially appreciate the work of the friendship societies which have, under the cultural exchange agreements, been able to make the public familiar with manyforms of art and culture, even less well-known ones Finnish design and dancing being presented here during this visit. We believe that these events will increase interest in our country and its inhabitants among the Chinese people.

Finland holds her good relations with China in high esteem. We hope that our relations will become even closer in future and that we will be able to contribute together to the peace and prosperity of our shared world. I wish every success to the Consulate General in Shanghai in its work and its efforts to strengthen relations between Finland and the People's Republic of China.