Your Excellency Mr. Djuranovic, members of the Yugoslav delegation, my Lords, ladies and gentlemen.
It is a very great pleasure to welcome you and your delegation to No. 10 Downing Street. We hope that you will have a very happy and successful visit.
I recall, Mr. Djuranovic, that it was you who, [end p1] as Chairman of the Federal Executive Council, acted as my host during my own visit to Yugoslavia in 1980. I am all the more pleased therefore, to be able to repay the marvellous hospitality that you showed me then.
No-one who has dealings with Yugoslavia can be in any doubt that yours is a unique country. A country with a proud if sometimes tumultuous [end p2] history. Above all a country whose recent history is almost synonomous with that of its greatest leader, President Tito. He stood like a rock for the independence of Yugoslavia, for its refusal to be cowed by any foreign invader, for its unity and for its territorial integrity. [end p3]
In the eight years since his death, you and your colleagues in the Federal Presidency have had the task of building on the foundation he laid for Yugoslavia, in difficult economic conditions. You have fulfilled that mission and ensured that Yugoslavia continues on its own distinctive path, proud of its independence and determined to remain non-aligned. [end p4]
The relations between Britain and Yugoslavia are also established on a firm and well-tried basis. I recall saying to you in 1980 that our two countries, from being staunch allies in wartime, had become warm friends in peace, able to speak frankly to each other on a wide range of issues. That is still true and necessary today. There are few barriers between us, and almost [end p5] no constraints on the subjects we can discuss and tackle together.
Since the war, Yugoslavia has developed and put into practice its own particular style of socialism. Increasingly you have recognised the vital role of market influences in stimulating the enterprise and the initiative which are essential to sustained economic growth. People need incentives to give of their best. [end p6] And it is when the individual is encouraged to give it his or her best that the nation as a whole benefits most.
I do not for a moment underestimate the difficult and painful decisions which exposing an economy to the market place requires. We found that nine years ago; and as is so often the case with reforms—and as we are now seeing in the Soviet Union—the difficulties [end p7] become apparent before the benefits. But these difficulties have to be faced and overcome: postponing solutions simply makes the problems worse. The Yugoslav people have demonstrated often in the past their will and their courage. I am sure they will show it now.
We in Britain will support you in adopting the right policies; and, together with the IMF and [end p8] Yugoslavia's other Western creditors, we are ready to help you find a sound long term basis for the restructuring of debt.
Flourishing foreign trade will be a vital part of your economic recovery, and trade between Britain and Yugoslavia is contributing strongly to this. When your stabilisation programme was drawn up in 1982, our visible trade was over 2 to 1 in [end p9] Britain's favour. It is now almost in balance, with Yugoslav exports to the British market increasing from £52m in 1982 to £175m last year. And you are also doing well in tourism. Last year around three quarters of a million British visitors enjoyed Yugoslavia's sun and friendliness thus making a very useful contribution to your prosperity. [end p10]
Indeed a stable and prosperous Yugoslavia is very much in the interests of Britain and also of the European Community as a whole. Last year we concluded negotiations on the new trade and financial protocols to Yugoslavia's Cooperation Agreement with the Community and the year ended with a productive meeting of the Cooperation Council. All this should help strengthen Yugoslavia's links with Western Europe. [end p11]
Your Excellency, both our countries can take encouragement from the reforms which we are seeing introduced in the Soviet Union; from the agreement to eliminate intermediate nuclear weapons; from the other arms control negotiations which are in progress or soon to start; and from the Soviet Union's decision to withdraw from Afghanistan. [end p12] They make it possible to look forward to a time of greater trust and confidence between East and West. As a non-aligned country, Yugoslavia will I know particularly welcome that. But we need always to bear in mind that these positive developments have come about not because we were weak but because of our sure defence. I am determined to see that sure defence [end p13] maintained because it is that which guarantees our freedom and our independence. Yugoslavia is the first to know the importance of that.
Your Excellency, we can be well satisfied with the friendly and open relations which our countries already have. For the future, there are opportunities for even more extensive co-operation. [end p14] Your visit, and our talks, will have made their own contributions to the process. I hope that you will take home a message of friendship and support for the Yugoslav people. Meanwhile I ask all here to rise and to drink a toast to relations between Britain and Yugoslavia, to the success and well-being of the Yugoslav peoples and to you and your colleagues in the Presidency of the Socialist Federal Republic of Yugoslavia.