Respected Commodore Peter Ilau,

Distinguished guests,

Ladies and Gentlemen,

Friends,

Today, it is my great pleasure and honor to hand over, on behalf of the Chinese Government, the key of the Soldiers' Club in Murray Barracks to Commodore Peter Ilau. Together with the gymnasium, the boxing ring and some sports equipment handed over in October, last year. They are the tangible fruit of the Chinese government's assistance to the PNG Defense Force. In providing these facilities, we hope the officers and soldiers of the PNGDF can enhance their physical training and be fitter to and much able to carry out their defense duties.

Our bilateral military cooperation also contributes to the momentum of the sound development of our bilateral relations. For the 2004 to 2005 academic year, we will recruit 5 PNG Defense Force officers to further their studies in the National Defense University in Beijing, Army Command College in Najing, and Infantry College in Shijiazhuang of China.

This year has witnessed the successful official visit by Prime Minister Sir Michael Somare to China in early February. During his official visit to China, the leaders of our two countries all emphasized their determination to further advance our friendship and cooperation. Prime Minister the Right Honorable Sir Michael Somare reiterated to the Chinese leaders that the PNG government will continue to adhere to the One China policy, and opposes the independence of Taiwan. This is the most valuable support to China given by the PNG government for China's reunification. I wish to thank the government and people of PNG for your just position and support of the one China policy.

As a result of the visit of Prime Minister Somare, the Chinese Government agreed to provide another 15 million kina grant. The Chinese Vice-Foreign Minister Mr. Zhou Wenzhong promised that the Chinese Government would provide PNG Government with an interest free loan of 10 million Kina, when he came to Port Moresby to attend the 9th Annual Senior Officials Consultation early this year. I personally also signed an agreement to provide 10 million kina grant to PNG government last year. With these amounts of fund, the Chinese Government will be able to start 4 economic aid projects this year, including the maintenance of the Government House, the construction of Papa Lealea Road, the reconstruction of the UNITEC mathematics and computer center building with computers and servers provided by the Chinese side, and the construction of Udal University student dormitories and teachers houses. Right now, my embassy is working hard in close coordination with the Department of National Planning and Monitoring on these new projects.

Just recently, I, on behalf of the Chinese Government, have handed over 1 executive vehicle, 2 ambulances and 3 police vehicles to the Department of National Planning and Rural Development. We hope that those vehicles will help improve the health and social services in PNG.

Today I am delighted to inform you that a team of experts in fisheries sector will come to PNG to undertake the feasibility studies of the building of storage facilities and a fish processing plant. These two projects will also be funded by the Chinese Government.

In the field of bilateral trade, we have seen a 50 % increase for the first four months of this year, with a total volume of 113 million U.S. dollars.

Finally, I would also like to take this opportunity to express my gratitude to Commodore Ilau and the commanding officers of the Murray Barracks for their kind cooperation, which enabled the Chinese COVEC company to complete their work on time.

Thank you.