Dr Francis Cachia interviews the outgoing Ambassador of the People's Republic of China, Yang Guirong

On August 3, 2000, Ambassador Yang Guirong presented his credentials to President Guido de Marco. Since that day, some momentous events have taken place in the world. On September 11, 2001, ruthless terrorists destroyed the gigantic Twin Towers of the World Trade Centre in New York, killing around 3,000 people of 80 nationalities. Retribution was meted out to their associates: the tyrannical Taliban regime in Afghanistan was toppled.

At times for better, at times for worse, the overall panorama of world affairs looks quite different from what it looked just three years ago. Relationships between nations have undergone some drastic revisions in several parts of the globe. Old alliances that seemed rock-solid were shaken. New ones were forged.

Since Ambassador Yang's term of office started, the People's Republic of China as well as Malta have seen some dramatic changes, mostly for the better. It is true that some natural disasters such as floods, for instance, have caused havoc in parts of China, with deeply regrettable loss of life. But as far as foreign policy is concerned, China has registered notable success.

Malta too, has made advances of historic importance in the international sphere. In this farewell interview, Ambassador Yang, who will be missed by his many friends in Malta, both fellow-diplomats from abroad and Maltese citizens, talks about how he sees recent developments in our two countries and in the world at large.

Since August 3, 2000, when you presented your credentials to President de Marco, much has happened in the international sphere to change the pattern of world affairs. Much has also happened in relations between our two countries. President de Marco and President Jiang Zemin have paid official visits to each other's countries, which were sealed by practical initiatives on the financial, cultural and commercial levels. For a start, can you make some general comments about how the world has changed since you arrived in Malta three years ago?

First, I would like to express to you my appreciation for the way you ask me questions; a way denoting professionalism, acuteness and especially wide vision of a journalist.

As a matter of fact, since my taking office in Malta, the world has undergone a string of events, gratifying or terrifying. Multipolarisation, globalisation and a rapid development of science and technology have brought about new opportunities and favourable conditions for peace and economic progress.

Nevertheless, some regions have got entangled in a web of troubles. There has been an increase of uncertainties menacing stability and development in the world. Traditional and untraditional threats to security have got intertwined. Terror has become rampant. The temptation of going it alone has been increasng. Local conflicts have erupted from time to time. The gap between North and South has been widening.

Humanity is indeed faced with a number of deep contradictions and outstanding problems. But fundamentally, the political panorama of the world and the orientation of its evolution have not changed. The people of various countries strongly aspire to peace and development, which remain the mainstream of our times.

This is not to say that one can lower one's guard. On the contrary, we have to strive to rise up to all serious challenges. For this purpose, it is imperative to establish a just and rational new international political and economic order.

So efforts must be made to promote democratisation of international relations, to institute a new concept of security featuring mutual trust, mutual benefit, equality and co-operation, to ensure a balanced economic development all over the world and to respect and count on the important role of the United Nations and the Security Council.

I think that a significant development in international relations, which closely concerns China, was the recent visit to your country of Indian Prime Minister Vajpayee. According to news reports this visit had positive repercussions on the question of establishing the borders between China and India as well as on the question of Tibet, which India recognises as being part of China. Could you comment on these issues?

China and India are two major Asian countries accounting between them for a third of the world's population. For various reasons, their bilateral relations were not very good. But in recent years, there has been a gradual improvement. The visit to China by Indian Prime Minister Vajpayee in June was a culmination of this tendency.

The most conspicuous result of this visit was the signing of a Declaration on Principles for Relations and Comprehensive Co-operation. It was a positive, mutually beneficial, balanced and win-win document, which demonstrated that the two countries are willing to build more stable and lasting bilateral ties. The Declaration stated that neither side should use or threaten to use force against the other. The two sides agreed that each would appoint a special representative to explore, from the political perspective of the overall bilateral relationship, the framework of a border agreement. This will propel the settlement of the long-standing border issue into a substantive phase.

Besides, for the first time, India clearly recognised that the Tibet Autonomous Region is part of the territory of the People's Republic of China, and it reiterated that it does not allow Tibetans to engage in anti-China political activities in India. The improvement and development of bilateral relations between China and India is not only in the interest of the two peoples, but is also conducive to peace and stability in South Asia.

On Tibet I will just add a few words: Tibet has been progressing in all fields. Religious freedom and traditional culture have been respected. The channel of dialogue with the Dalai Lama remains open. All assertions about massacres, persecutions and mass destruction in Tibet are unfounded.

A historic event as far as Malta is concerned was when Prime Minister Eddie Fenech Adami signed the treaty of accession to the European Union in Athens last April. What does China think about Malta joining the EU?

Multipolarisation and globalisation are underlying the advance of the world, and enlargement of the EU fits in with this trend. We, Chinese, invariably believe in the wisdom and awareness of the Maltese. We are thus seeing positively the sovereign and democratic decision taken by the Maltese people to join the EU on the basis of the specificities of their country.

In our opinion, EU membership will open a new skyline of opportunities for the development of Malta. And since China has good relations both with Malta and the EU, it's only logical to expect the Sino-Maltese relationship to progress further. Malta's EU membership will help attract more Chinese investments in this country, and will facilitate business activities of Chinese enterprises in Europe.

Thank heavens, the SARS crisis seems to be practically over. The World Health Organisation has lifted its ban on travel to Beijing and Hong Kong. How do you assess the impacts of this calamity on the Chinese economy?

In recent months, SARS has wrought havoc to China. But thanks to the staunch determination and unremitting efforts of the Chinese government and people, this disaster has been overcome, and life has returned to normal. Some sectors of the economy, such as tourism, civil aviation, entertainment and restaurants, have suffered badly. Nonetheless, on the whole, we can still foresee a growth rate of 7-8% this year.

Our self-confidence originated from the fact that the reform and opening-up policy has considerably bolstered China's aggregate strength. There has been a continued increase of capital and technological input for agriculture and infrastructure construction, particularly in the western part of the country. The influx of foreign investment has maintained its momentum.

At present, the amount of foreign exchange reserves stands at more than $340 billion. To ensure a sustainable development, the Chinese government has also adopted a policy on expanding business activities abroad. In this context, one can reasonably hope for an increase of Chinese investment in Malta.

Is there any decision about when the Chinese Cultural Centre in (Melita Street, corner with St Paul Street) Valletta will be opened officially?

Materially speaking, the Chinese Cultural Centre in Valletta is practically ready. The Chinese government and the Maltese government agreed that the centre will be inaugurated in September. The centre will serve as an important bridge between Chinese culture and Maltese civilization.

Your Excellency, you concluded an interview which you kindly granted me some time ago with these words: "China and Malta are all-weather friends that have withstood the test of time, and the Sino-Maltese relationship stands as a superb example of friendly co-operation between a big country and a smaller country." Can you give some concrete examples to illustrate your point?

Thank you for recalling one of my descriptions of the Sino-Maltese relationship. In my previous interviews with you, through The Sunday Times, TVM and Voice of the Mediterranean, I already spoke a lot about the different aspects of the friendly co-operation between our two countries. But, to further highlight the privileged relationship between China and Malta, let me simply cite the following "four firsts":

It was the first time in the history of our bilateral relations that the two heads of state have exchanged visits in a short span of three weeks in July 2001. Malta was the first European country to sign with China, during the visit by President Jiang Zemin, an agreement on the establishment of a Chinese Cultural Centre.

Malta was the first European country to conclude with China, on the same occasion, an agreement designating Malta as a tourism destination country for Chinese citizens.

And again, Malta was the first European country to commit itself officially, during the visit to China by Prime Minister Fenech Adami last October, to support Shanghai's bid to host World Expo 2010.

This is leading me to say that the Sino-Maltese relationship is on a two-way track. There have been mutual trust and mutual help. We highly appreciate Malta adhering to the One China position.

And I am pleased to reveal to you an interesting detail: in the official talks in Beijing, Prime Minister Fenech Adami announced to Premier Zhu Rongji that Malta offered a grant of $50,000 in aid of the development of western China. Visibly moved by this unexpected gesture, Mr Zhu replied that this grant was definitely more valuable than a much bigger donation that another country could have given to China.

Is there any other point you wish to make?

Dr Cachia, in China, we have a proverb, which goes: "There is no endless banquet on the earth." After three years of service here, it is now time for me to say goodbye to Malta. But I wish to assure you that the charming landscape of your country and the legendary hospitality of its people will linger forever in my heart.

I would also like to reiterate my deep thanks to yourself, to The Sunday Times and its editor, Laurence Grech, for the keen interest you have constantly taken in my country that is far away from your shores, as well as in the Sino-Maltese relations, which hold out unlimited prospects of development.