We gather here at what we hope is a turning point in the quest for peace in the Middle East. The agreement reached at the Wye Plantation between Prime Minister Netanyahu and Chairman Arafat has rekindled hope that Israelis and Palestinians can find the means of living together as neighbours.

I would like to express my appreciation to the Government of the United States for its efforts in preparing this conference. Canada welcomes the opportunity to participate, and to join with members of the international community in reaffirming our commitment to assist the parties in building the foundations of peace. In particular, I would like to pay tribute to the leadership and determination of President Clinton and Secretary of State Albright in the pursuit of negotiations in the Middle East.

As I watched coverage of the opening of the Gaza Airport, I remembered my own visit to the idle airport last November, after our meeting. The opening of the airport, like the redeployment carried out 10 days ago, and the measures taken by the Palestinians to combat terrorism, are all important steps in moving the peace process forward. Together, they reinforce confidence that negotiation is, indeed, the only road to peace.

None among us would underestimate the challenges that lie ahead. Seemingly intractable issues remain unresolved, not just between Israel and the Palestinians, but also between Israel and Syria and Israel and Lebanon. Certainly the recent violence along the border calls for renewed restraint. But let us acknowledge all that has been accomplished. Today, Egypt and Jordan are at peace with Israel. The PLO and Israel have accepted each other as partners. In seeking compromises and a negotiated solution, we hope that the parties will be guided by the body of international law at their disposal -- including UN Security Council Resolutions 242 and 425, and the principle of land for peace that they accepted at Madrid in 1991.

Canada has a sincere interest and a deep commitment to securing meaningful agreements. We know that the task of building peace does not end with the signing of agreements and treaties. Indeed, a signature and a handshake are just the beginning of this process. Communities that have long seen each other as adversaries must instead see a shared interest in building common interests in the region. Leaders can inspire such a vision, but it can only take root when it is accepted at large. One way to further this process is to encourage activities that bring Israelis and Arabs together.

Since 1992, Canada has been involved in the five multilateral working groups in the peace process, underscoring our belief in the value of dialogue and co-operation. We have also provided direct support to almost 100 dialogue projects. Our efforts have brought together Israelis and Palestinians in a program of leadership training in conflict resolution. We have supported a project in which artists and youths from the Israeli-Jewish, Israeli-Arab and Palestinian communities collaborated to create art work symbolizing their shared vision of peace. We are also working with the Peres Centre on a project to establish a joint Israeli-Palestinian infrastructure in the field of information technology. My hope is that these projects will help to break down barriers and to establish personal bonds between Israelis and Arabs, where perhaps they would not have otherwise existed.

Canada has long said that our goal is a just peace -- one that respects the dignity of all peoples in the region and provides for their security. By security I mean more than the absence of terrorism or violence, although I cannot stress how important the fight against terrorism is to the peace process. It is also important that all individuals enjoy an acceptable quality of life, free from economic deprivation.

People will lose faith in the peace process if they do not see tangible and concrete improvements in their daily lives. Sadly, Palestinian economic development has been limited by external constraints. Canada hopes that the implementation of the Wye River Memorandum will create an environment in which the development needs of the Palestinians will be met. We believe that the economic prosperity of the Palestinians is an essential underpinning of peace, and that it has benefits that will enrich the region as a whole.

We recognized this in 1993, when we pledged C$55 million in assistance to the Palestinians. This sum proved to be only a small portion of what we actually disbursed. Over the past five years, we have provided C$130 million to help meet Palestinian development needs. An important part of our contribution has gone to UNRWA [United Nations Relief and Works Agency for Palestine Refugees in the Near East], an institution we consider vital to meeting the humanitarian needs of Palestinian refugees and providing stability in the region.

Our development assistance program has included a variety of activities and sectors. We have supported job creation, the rehabilitation of basic infrastructure, and health and social services. And we have helped to support the establishment of a proper policy and institutional framework in the West Bank and Gaza Strip. In September, Canada opened a Representative Office in Ramallah, to help ensure that our aid program is delivered in the most effective way possible.

Today, I am pleased to advise that our contribution to the Palestinians will be extended by C$92 million over the next four years. We are substantially increasing our funding to bilateral projects. Our focus will be on meeting the basic human needs of the Palestinians, particularly the refugees. For this reason, we will continue to be a strong supporter of UNRWA. We believe that it is essential that UNRWA have the means to carry out its mandate, while the parties negotiate a political solution to the refugee problem.

Canada's role as Gavel Holder of the Refugee Working Group has given us a particular commitment to the refugee problem. I have seen firsthand the condition of the refugees, and I know their enormous economic and humanitarian needs. To help meet these needs, Canada has led a number of international missions to the refugee camps in Jordan, Lebanon and the West Bank and Gaza Strip. These missions, and the work of other countries involved in the Refugee Working Group, have mobilized well over US$100 million to assist the refugees.

The needs of the refugees, however, remain immense, especially in the area of basic infrastructure. The camps are also dangerously overcrowded, a fact I saw for myself when I visited Rafah camp last year. Moreover, UNRWA cannot keep pace with the growing demands for its services, particularly for children in health and education. I would encourage other members of the Refugee Working Group and donors present here to carefully consider the needs of UNRWA as you make decisions on how the money pledged today will be allocated.

During the course of Canada's chairmanship of the Refugee Working Group, I have had the opportunity to reflect on other aspects of the refugee issue and on how the Group might support the parties in finding a permanent solution to the refugee problem. The 3.5 million registered Palestinian refugees are a constant and tragic reminder of the human cost of war and conflict.

Let me reiterate Canada's view that the refugee issue should be resolved primarily through bilateral negotiations -- and it must be resolved -- in a just and comprehensive manner. The refugee question is central to the peace process. Without a just solution to the refugee problem, lasting peace will not be achieved. I should also mention that a solution to the Palestinian refugee problem will require sustained assistance and support from the international community.

Since the Madrid Conference, we have seen the beginnings of a profound transformation in political, economic and cultural relationships in the region. The fruits of peace have not yet been fully realized. But through our efforts today, we are taking another important step forward. We encourage the full resumption of the multilateral track to build an environment in which peace can truly flourish. And we hope in the period ahead that negotiations will resume between Israel and Syria and between Israel and Lebanon to bring us closer to our common goal of a comprehensive peace in the region.

Thank you.

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