Prime Minister Yasuo Fukuda,

Dear colleagues,

I am glad to come to the beautiful Toyako to exchange views with you on global issues of common interest. I wish to thank you, Prime Minister Fukuda, and the Japanese Government for the thoughtful arrangements you have made for the meeting.

I would like to begin by expressing, on behalf of the Chinese Government and people, our heartfelt thanks to the governments and people that you represent for the sympathy and sincere help you have offered to China in the wake of the devastating earthquake in Wenchuan. The focus of our relief efforts has now shifted to the resettlement of the affected population and post-quake recovery and reconstruction. With the care and support of the international community, the Chinese Government and people have the resolve and confidence to overcome this disaster caused by this massive earthquake and help people in the affected areas rebuild their beautiful homeland at an early date.

At present, with the further progress of economic globalization, countries are increasingly interdependent, and the pursuit of peace, development and cooperation has become an irresistible trend of the times, presenting the world with rare opportunities for development. At the same time, uncertainties and destabilizing factors in world economic growth have increased recently, as evidenced by continued turbulence in the financial market, rising prices for energy and resources, acute problem of food security, and growing pressure of global inflation. There remain numerous grim challenges in the effort to build a harmonious world of lasting peace and common prosperity.

The combined population of G8 plus China, India, Brazil, South Africa, Mexico, ROK, Indonesia and Australia accounts for 60 percent of the world total, and their economic aggregates three fourths that of the world. We are duty-bound to work together to address these challenges and promote steady growth of the world economy. We should be forward looking and adopt a global and strategic perspective. We should start with fundamental issues such as systems and institutions in order to promote balanced, coordinated and sustainable development of the world economy. To this end, I would like to make the following proposals:

First, build a sustainable world economic system. Countries should commit themselves to sustainable development, strengthen coordination of macro-economic policies and make concerted efforts to maintain the growth of world economy. The G8 should pay more attention to the voice and views from outside. The developed and the developing countries should build a global development partnership between them featuring equality, mutual benefit and win-win progress, and work together to advance economic globalization in the direction of balanced development, shared benefits and win-win progress.

Second, build an inclusive and orderly international financial system. Countries should work together to give the developing countries greater say and representation in international financial institutions, thus enhancing the effectiveness of the international financial system. The World Bank should make greater efforts to help the developing countries to adapt to economic globalization and achieve the UN Millennium Development Goals (MDGs). The International Monetary Fund should step up its monitoring and early-warning of the international financial market, particularly the short-term capital flows and risks of financial innovation, and play a greater role in upholding international financial stability.

Third, build a fair and equitable international trade regime. Countries should jointly oppose trade protectionism, support efforts to strengthen the multilateral trading regime, and work for an early, comprehensive and balanced outcome of the Doha Round negotiations so as to achieve the goal of the development round. Countries should support the World Trade Organization in its "Aid for Trade" initiative.

Fourth, build a fair and effective global development system. The developed countries should take credible measures to honor their commitments by increasing assistance, opening markets and transferring more technologies to the developing countries, and relieving their debts. The developing countries, on their part, should enhance capacity building. The United Nations should continue to provide guidance and coordination and urge the international community to increase input in development, ensure resources for development and strengthen development institutions. The Monterrey Consensus should be implemented in real earnest and the MDGs should be achieved on schedule. It is of particular importance to provide Africa with more development resources and help Africa enhance its self-development capabilities.

Dear colleagues,

The rising food prices have recently captured the attention of the entire international community. As an old Chinese saying goes, "Food is the No.1 necessity of the people." It not only concerns the economy and people's well-being of each country but also bears on the development and security of the whole world. There are now more than 800 million people living under the threat of starvation. The surging food prices will swell the figure. This is not conducive to building a world of enduring peace and common prosperity.

The rising food prices are the result of many factors at play. To blame the development of developing countries or a certain policy of a certain country for the increase in world food demand does not tally with the fact, nor is it a constructive attitude to solve the problem. In today's world where agricultural productivity has never been higher, we don't lack the means to solve the food problem. The key is to embrace the spirit of common development, actively and effectively coordinate policies and actions and make concerted efforts to safeguard world food security.

The pressing task now is to scale up assistance, support the United Nations in playing its coordinating role, work to stabilize food prices and help the developing countries to tide over the difficulties as quickly as possible. At the same time, the international community should give priority to developing agriculture, approach the food issue from a broader and longer-term perspective, and formulate a long-term international food cooperation strategy. To that end, I wish to make the following four points:

First, attach importance to food production. All countries should recognize the fundamental importance of grain production from a strategic perspective, raise grain production through science and technology and increase grain reserves. In this regard, major grain producing countries should make more efforts. The developing countries should keep improving their production capacities and the developed countries should provide financial and technical support as necessary.

Second, improve the trading environment. It is necessary to create a favorable international trading environment and establish a fair and equitable international trade order for agricultural products. All countries, the developed countries in particular, should display greater sincerity in the Doha agricultural negotiations, remove trade barriers, demonstrate flexibility over such issues as the reduction of agricultural subsidies, give full consideration to the special concerns of the developing members, and deliver duty-free and quota-free market access for the least developed countries.

Third, enhance macro-coordination. Governments of all countries should strengthen oversight of their agricultural product markets, facilitate policy coordination, contain excessive speculation and work to stabilize food prices. It is important to set up a UN-led international cooperation mechanism and work to establish a global food security safeguard system that integrates early warning, monitoring and supervision, macro-regulation and emergency relief.