ADDRESS BY HIS EXCELLENCY DR GEORGE ABELA, PRESIDENT OF MALTA ON THE OCCASION OF THE NATIONAL DAY OF THE ARAB REPUBLIC OF EGYPT AT VILLA MISR, KAPPARA.  MONDAY 19^TH JULY 2010.

Honourable Prime Minister and Mrs Gonzi,

Honourable Tonio Borg,

Parliamentary Secretaries,

Members of Parliament,

President Emeriti,

Excellencies,

Ladies and gentlemen,

Thank you Ambassador Elhabashy.  I am very pleased to be here today to celebrate with you the national Day of the Arab Republic of Egypt and I would like Your Excellency to convey to His Excellency President Mubarak my warm congratulations on my behalf and on behalf of the Government and the People of Malta.

It is impossible to speak of Egypt without mentioning its history going back thousands of years.  Our two countries have both harboured ancient civilisations several thousand years ago: in our case the megalithic culture that produced some of the oldest examples of architectural construction in the world and, in the case of Egypt, the awe-inspiring monuments that testify to the advanced civilisation that developed and thrived for millennia along the lower reaches of the Nile.  I believe we have some qualification to claim that our two countries form part of the cradle of Mediterranean civilisation.

But let us come closer to our own times.  While belonging to Europe geographically and culturally, Malta considers its Mediterranean dimension an asset.  Together with our Mediterranean and European Union partners, we have gladly embraced the mission of working to bring the North African states closer to Europe and to promote dialogue, peace, stability and prosperity in our region.  We maintain a consistent and active role in Mediterranean fora and are closely engaged in the Union for the Mediterranean.  We note with satisfaction the recent developments in the essential institutional architecture of the Union for the Mediterranean, in particular the approval of the Statutes and the initial budget of the Secretariat, the appointment of a Secretary-General and that of the first Deputy Secretaries-General, one of whom is an experienced Maltese diplomat.  In the meantime, it is important that the momentum achieved in this initiative be maintained.

The situation in the Middle East is still, unfortunately, a matter of grave concern and the re-launching of negotiations is a matter of urgency.  We firmly believe the European Union has an important role to play in the formulation of a permanent solution and we consider it essential that cooperation within the Quartet should be enhanced.  The situation in Gaza continues to be deplorable and unsustainable, leading to serious repercussions.  We acknowledge Egypt's role as a primary partner in the region and in the Middle East Peace Process, and we consider its mediation efforts - both in Israeli-Palestinian relations as well as between Palestinians - as commendable.  The final aim is clear: the setting up and recognition of a Palestinian State existing side by side with Israel in peace, stability and prosperity.

Relations between Malta and Egypt, ever since they were established in 1965, have been and remain excellent.  It is Malta's intention to continue working so that these are further intensified on the political, economic and cultural spheres.  The two countries have a network of bilateral agreements in operation in various sectors, including air services; the fight against drug trafficking and organized crime; the avoidance of double taxation and the promotion and protection of investments; technical and cultural cooperation; and tourism.

I am pleased to note that, in 2009, there was a marked increase in trade exchanges owing, mainly, to an increase in the import of mineral fuels from Egypt.  Exports from Malta to Egypt have increased marginally and it would be desirable to find ways to balance trade flows.  The signing of a Memorandum of Understanding on the Establishment of a Maltese-Egyptian Business Council last year was a positive step and it may provide a boost to bilateral trade if this council would become operative.

I am also pleased to note that Egypt Air Express has operated direct flights between Egypt and Malta during the past two years and there has been agreement on daily flights as from 2012.  This provides a very useful link between the two countries, makes it easier for holidaymakers and businessmen to travel between the two destinations and can enhance business links.

There is also potential for investment by businessmen in our two economies.  Malta welcomes investment from North Africa and there are various sectors to be explored for our mutual benefit.  Malta has built an international reputation for highly qualified, high-value added hub services and promotes a vision for 2015 as a centre of excellence for this type of industry.  One example is the maintenance of aircraft.  Over the past few years, Malta has established itself as a regional hub of aircraft maintenance and is proud that highly-reputable firms from the Arabian Gulf have become Malta's partners in this sector.

Educational and cultural cooperation is another area where cooperation may be further strengthened.  The University of Malta and the University of Cairo have both shown interest in cooperating with each other in the area of Eastern Languages, particularly in the exchange of teaching staff.  Cooperation in the training of young diplomats has been successful and the Mediterranean Diplomatic Academy has hosted, on a yearly basis, young diplomats from Egypt and other countries.  This form of cooperation will continue and will encourage an environment that promotes intercultural dialogue and a meaningful exchange of views.

Ambassador Elhabashy,

I am confident that, in the coming months, relations between our two countries will continue to strengthen and grow in a spirit of close cooperation and friendship for the benefit of our two Peoples.

Ladies and gentlemen,

I now have the honour to invite you all to raise your glasses and drink to the national day of the Arab Republic of Egypt and to the excellent relations between our two countries.