Cosponsored by the National Committee on U.S.-China Relations, the US-China Business Council, the Council on Foreign Relations, the America-China Forum, the Asia Society, the Center for Strategic and International Studies, the Committee of 100, the U.S. Chamber of Commerce, and the U.S.-China Policy Foundation

Speaker: Wen Jiabao, Premier of the State Council of the People's Republic of China
Introductory Remarks: Christopher Galvin, Chair, the US-China Business Council Presider: Carla A. Hills, Chairman, Hills & Company

[Transcript provided by interpreter]

This evening I will just read out the text of my speech. I'm sure I won't impress you very much, although this text is a result of much thinking on my part and it was subject to more than 10 revisions. But still I would like to put the text aside for a little bit and share with you how I felt about my U.S. visit and probably introduce myself more to all of you.

As Premier of China, I am now in the United States on an official visit at the invitation of President Bush. Up until now my visit has been going on for 50 hours. In all these 50 hours' time, probably this event is my 25th event.

I almost had no sleep and I tried my best to reach out more to the American people. I brought with me the sincere friendship of the Chinese people toward the American people. At the same time I also felt that the American people also have the sincere desire to further develop relations with China.

This morning, President Bush hosted a very grand welcoming ceremony. Following that we had bilateral talks with each other. The talks proceeded in a friendly, sincere, candid and cooperative and constructive atmosphere. We talked about China-U.S. relations, and international and regional issues of mutual interest. We exchanged our views and reached broad common understanding. These results have been shown in our joint press conference and in the media coverage of these events to its full extent.

We exchanged our views and achieved broad common understanding. These results have been shown in our joint press conference and in the media coverage of these events to its full extent. Up to now, I can say that my visit has been successful.

So I need to thank President Bush, and apart from thanking President Bush and the U.S. government, I also would like to thank the American people, and all of you here, and those who may not have made it to this event, and all those who have contributed to the development of China-U.S. relations.

As for myself, I should say that I am a very ordinary person. Yesterday at the White House I made some impromptu remarks and they told me that they felt quite moved by what I said. Because when I was very young, my mother told me that I should be sincere with people and kind and earnest. She said that for every person if he or she could reach these four words then this person is a person of a very refined state. So it is in this spirit that I would like to have this dialogue with you this evening.

My childhood was spent in hardships of war. Even today, I still could remember that. Because even a child had to face the bayonets of fascist aggressors and he huddled against his mother. And I still remember how it felt and I personally experienced that. And my family's and my house was all burned up in the war and even the school, the modest school that my grandfather built with his own hands, was all destroyed.

Most of the time I worked in areas in China far away and with harsh conditions. That impressed on me more the fact that I must know my people and I got to know more about my country's past, present and naturally I cherish very beautiful dreams about the future of my country. Because for a person who went through all these hardships and difficulties, he understands that he needs to safeguard his own dignity but he also understands that he should respect the dignity of others. Therefore for a country, for a people, it should treat those nations, those countries who treat us as equals, as equals. This is a very important principle.

Shortly after my arrival in New York, I went to Ground Zero, because those towers, about more than 10 years ago, I once ascended to those towers. And yesterday, when I was there, I felt a lot of emotions. I said to my American friends, American escorts, that I felt very much moved by the strength, calmness and mutual help demonstrated by the American people following the September 11 incident. I thought that spirit was very admirable. At the same time, I believed that the September 11 incident, not just inflicted disasters on the American people, it had also affected the whole world. Today, when we commemorate the September 11 incident, we are both remembering the deceased and also we are trying to send this message to the living.

On this visit, sometimes I felt quite downcast, but at other times I felt very happy. For example, yesterday I was at the New York Stock Exchange. They asked me to open the Stock Exchange so I rang the bell. Actually, that was something very easy to do but I felt very nervous. I said privately to the Chairman, that I felt nervous not because of whether the bells would ring loudly enough or not, but because of whether the stocks would rise or fall that day. But I was very fortunate yesterday because the Dow Jones Industrial Average rose, and today it fell. So it had nothing to do with me.

Next, I will start reading the text of my speech, but before I do that I remembered something else. Today President Bush took me on the tour of the White House. He knew that I have a great deal of respect for President Lincoln, so he especially took me to the [Lincoln Room]. And he showed me the Gettysburg Address, actually the personal handwriting, the fifth manuscript of the Gettysburg Address, which was really a wonderful speech. Because without the principle that the Union is perpetual, established by President Lincoln, probably America would not develop to the country of today. I think you know this history very well.

In fact , the Gettysburg Address is very short. So I feel that in comparison, my speech is very long.

But I still want to share with you something that I have for myself and you can comment on that as you will.

[PREPARED REMARKS]

Question: At the White House, you spoke about respecting Taiwan's democracy. What does that mean?

Answer: I said we respect the aspiration of the people of Taiwan for democracy. This means what we are opposed to are the referenda that are aimed at Taiwan independence. The defensive referendum is one such example. This uses democracy only as a cover to attempt at Taiwan independence, to split Taiwan away from China.

Questions: Your Excellency, please discuss the financial reforms underway relating to the need for capital by China's small and medium-size enterprises.

Answer: The financial reform in China is the most difficult part of our overall reform. At present, they suffer from such problems as a high proportion of non-performing loans and bad debts, capital inadequacy, and limited profits.

We have made up our mind to proceed with the reform of the banking sectors. And the fundamental solution lies in the introduction and reform of their corporate governance. So the preparation is tremendous. We have to do a lot of preparatory work. To start with, we have to bring down the proportion of non-performing loans. And secondly, we have to increase their capital, to ensure capital adequacy. And thirdly, we have to make sure that they will make profits.

So when these conditions are met, we can start to introduce the shareholding system, and eventually they can be listed.

The objective has already been set. You may ask when you can see real action taken. I can give you a clear-cut answer. Action will be taken within six months.

Secondly, on the question about support to small and medium-sized enterprises, indeed, China's banks are plagued by many problems, and it is the small and medium-sized enterprises that create most of the job opportunities. So really we need to improve the management of our banking sector and reform the system so as to deliver better service to the small and medium-sized enterprises.

Question: This inquiry is about the emphasis your administration is putting on improving China's legal system. And the question is, what will you do and what do you believe needs to be done to ensure that individual rights are better protected by the police and the courts?

Answer: I think the fundamental solution lies in the reform of the judicial system. So the legal system would serve its purpose to protect the people and to punish the evil.