May I begin, Mr. President, by thanking you for the kind words that you have just addressed to Finland and to my wife and me personally. I also wish to express my heartfelt gratitude for the magnificent and warm reception that we and all of our accompanying party have been given in your beautiful capital Brasília. I am convinced that the same spirit of friendship will remain with us throughout our trip.

Mine is the first state visit by a Finnish President to Brazil and is thus a historic event, even though relations between our countries go back nearly 80 years. Two of my predecessors did visit Brazil in other conjunctions: President Urho Kekkonen made a holiday trip to the Amazon in 1976 and President Mauno Koivisto attended the Earth Summit (UNCED) in Rio de Janeiro in 1992. In December 1919, Brazil became one of the first states to recognise Finland, which had declared her independence two years earlier. Diplomatic relations were established a decade later, in 1929. The first Finnish envoy to Latin America, Georg Achates Gripenberg, presented his letter of credentials the same year. The Finnish Legation in Rio de Janeiro was opened in 1937, with the development of trade relations between our countries as its most important task.

The second world war caused a cessation of trade between us. For the Finns with their enormous thirst for coffee, that disruption was felt as a great hardship in their everyday lives. For years they had to make do with ersatz beverages, and the arrival of the first shipment of coffee from Brazil some 50 years ago was an eagerly-awaited event. Every stage of the voyage of the Finnish vessel s/s Hercules to fetch the cargo was covered on a daily basis by the Finnish press. When the ship finally docked in her home port, she was greeted by a large cheering crowd and her crew were acclaimed as heroes.

Thanks to Brazil, the people of Finland were able to reclaim their distinction as the world's leading coffee consumers per capita. Since in addition to that Brazil was one of the first countries to grant us credit immediately after the war, your country gained a fabulous reputation as a friend of Finland.

Mr. President,

My visit emphasises the strong desire of today's Finland and Finns to develop and diversify our relations with Brazil.

The strengthening of democracy and political stability and the economic growth that have characterised the whole of South America in recent years have aroused a new interest in your whole continent, and especially Brazil, on the part of the Finns and Europeans in general.

Central to the European Union's - and therefore also Finland's - strategy in relation to Latin America is support for integration processes and closer relations between the countries of the region. The MERCOSUR common market in the southern cone of the continent is an important regional integration arrangement, with opportunities that deserve greater attention on the part of the Finns than they have been afforded up to now.

Finland's membership of the European Union, attained in 1995, is a new factor that is having the effect of diversifying and deepening our relations with Brazil and the other states of Latin America. Our common goals are the promotion of international peace and security, safeguarding societal development and stability, respect for human rights and strengthening the development of democracy, responsibility in the way we relate to our environment and natural resources, growing economic exchanges, freedom of trade and strengthening the multilateral trade system.

For Finland, the importance of deepening interaction lies in closer political dialogue and growing economic and cultural ties. In my view, Finnish membership of the EU complements our bilateral relations and provides a firm foundation for their further development.

As you mentioned, Mr. President, we have today had very rewarding discussions of international questions and relations between our countries. We have been able to note with satisfaction that those relations have traditionally been free of problems and are developing positively.

In her foreign policy, Brazil under your leadership has chosen a path of open cooperation and discourse. That is reflected in your work at the UN and in other international fora. I share your perception that the esteem accorded a country - its capacity for action in foreign policy - no longer depends on military and strategic factors alone, but also on its domestic stability, social wellbeing and economic capacity, and also on a clear and active foreign policy.

Since beginning your term of office, Mr. President, you have been implementing an economic reform plan, under which inflation has been driven down and the economy has settled into a course of steady growth. The results that you have achieved are very encouraging and they, together with vigorously growing acceptance of democratic principles, give us reason to share your faith that Brazil is poised to take her place among the world's prosperous nations.

Brazil is by far our most important trading partner in Latin America, which is quite understandable given the great size of your country and the power of your economy.

The first Finnish industrial investment in Brazil was made over 30 years ago, when the large state-owned company Valmet built a tractor factory in the state of S±o Paulo. Nowadays called Valtra do Brazil, that factory is probably the best-known, but by no means the only Finnish investment in your country. The prospects for growth in investment are good.

The next few years will see major investment in Brazil to improve infrastructure. Here I see ample new opportunities for Finnish companies specialising in energy production, telecommunications systems, forest products manufacturing and cargo-handling equipment to cooperate with Brazilian companies.

Thus our trade and economic relations have both positive traditions behind them and a promising future to look forward to. Accompanying me is a high-level delegation representing the most important Finnish companies wishing to expand their operations in Brazil. New business opportunities will be explored at an industrial seminar in S±o Paulo next Wednesday.

Mr. President and Mrs. Cardoso,

I am convinced that my visit will contribute to accentuating the friendship between our countries and peoples and increase our desire to deepen it further.

I would like to conclude by proposing a toast to you and your wife and to the good fortune and success of the Brazilian people.