Feb.  5, 2002

Stability in Egypt is enough for attracting more capitals

President Mubarak urged Palestinian and Israeli sides to launch dialogue, understanding and to start immediately in carrying out the agreements they signed before.

    The President warned that any attempt to replace Palestinian Leader Yasser Arafat would threaten to turn the region into chaos.

    The President said he delegated an envoy to meet Palestinian leader Yasser Arafat to discuss the situation in the occupied lands and to see what can be done in order to push Israel to move in the right direction.

    In a statement before teachers and students when he inaugurated Mubarak Education City at the October 6 city, Giza.

    President Mubarak said he was happy to visit this great education edifice that will lead to the development of education "so that we may keep pace with technological and scientific progress in the world."

    He added: we heard about the development of education in Japan, the United States and Europe.

    Even in China there was a big development in education. I have visited China recently.

    I am happy to see this edifice (the Mubarak Education City) which is fitted with the latest equipment which we give to our youth and the generation of the future (to benefit from), through the primary and preparatory stages up to graduation from university and so that they may keep abreast with world development and in order that there may not be any lagging behind at all as in some countries.

    I am very keen on the development of education development of curricula, development of scientific means. This edifice gives a very big hope.

    A meeting (under the President's chairmanship) was held two days ago at which we discussed the development of education and stressed the need not to overburden students with curricula as much as possible.

    We should be realistic as regards curricula in order not to overburden the child or pupil at the age of 9 or 10 we should not overburden him with redundant information that he may not need.

    The world is developing and there are many means of education and knowledge.

    Your conference has come following the (Cairo International Book Fair), there was a big seminar and I replied to many questions.

    At this opportunity (today's meeting) if there are questions which could add (to what the President had already stated) because I do not wish to repeat.

    Perhaps you would like to ask first about the Middle East issue and also about the economic situation or any other question.

    Economic situation

    As regards our economic situation, some people make a comparison with Argentina and other countries.

    Our position is completely different from that of Argentina.

    Argentina has debts amounting to more than 180 billion. Our debts are within safe limits that make us able to repay regularly.

    Before the Gulf war, our debts amounted to something like 50 billion. Now, the debt is about 26-27 billion. This is within permitted limits at world standards. We repay.

    I am be considered by the Cabinet keen that we do not borrow at all except for pressing needs to serve the masses.

    A loan should be obtained under a 1aw. The cabinet should consider it. I should approve it.

    In many cases I object to some loans. I have not signed any loan for some time. I never sign a loan except when it is needed.

    And if we can do without it and carry out what is required depending on our own potentials, then there is no objection.

    Loans

    The first time my attention was attracted to loans was in the 80s I was in Sharkia province (Nile delta) I visited a project there.

    The man in charge of the project told me: We received the ambassador of (a certain country).

    He was looking for someone to take money to be used.

    He was offering equipment worth 100 million dollars. I asked: and who is going to repay (the loan).

    The manager of the project told me: we shall take the loan and the Central Bank of Egypt will pay.

    This meant that he would not pay.

    He would enter in his books equipment without mentioning debts and show that he is making a profit because the central bank would pay from taxes collected.

    And all this for a company the major part of which is private sector. I told him that any company that receives a loan should be able to repay it.

    If not, then no loan. The companies should work in accordance with their local abilities.

    Since that date, I did not allow any sector, private or public, to borrow unless it is able to repay.

    When a loan is referred to me, I ask whether the receiver would be able to repay. Some government matters.

    If they tell me that the borrower would not be able to repay. When I doubt-- I refuse (to approve the loan) the result: local means are used.

    We should not seek the easy way. We should work hard not for ourselves at the present- but for four children and our children 's.

    We should not leave a heavy burden to the future generations.

    On this basis I am very keen not to burden the country with many debts.

    But if loans are required for sanitary utilities or services and if local means do not suffice then I am obliged to agree.

    And there are many other examples. The proof is that our debts do not increase. Sometimes, they rise within the limits of our ability to repay.

    The external debt now stands at about 26-27 billion. This is within safe limits.

    There is no comparison at all (between us and others) do not listen to what is being said. Someone writes an article about Argentina and us.

    There should be no comparison between Argentina and us. Argentina is a vast country. It was huge potentials in Agriculture and exports. It has very huge debts exceeding 180 billion.

    If we were burdened with a debt of 180 billion, this would do a great harm to the people and to future generations.

    I am very cautious. I take into consideration our children and our children's children so that we may not leave for them a heavy burden that they would not be able to bear.

    There were ups and downs in the world economic situation following the September 11 events.

    Economy never takes an easy course because there are many demands and there is a great increase in population. World problems are many.

    For instance, the Luxor incident (when tourists were attacked) dealt a deadly blow to tourism. Tourist companies, hotels and similar establishments suffered. That was one of the problems.

    There was a "Horrible setback" in the Far East. It affected us. Some people rushed to import cheap goods. There were debts, this affected our local production.

    After September 11, tourism "shrank" it is not as was before. All this affects economy. In economy, you do not push a button to improve economy. It takes a long time.

    Maybe there were some practices in previous years that led to some confusion. But we are avoiding all this.

    The government is taking the straight course. May be some people do not have confidence.

    But we should have confidence. There is freedom of criticism but we should have confidence in what is being done.

    If there is any doubt, there should be discussion with the officials. I assure you that I follow up and review the economic situation daily.

    I ask what are you doing, what direction are you taking?

    Dollar crisis:

    The question of the dollar on which there was a big fuss. It is some people who cause a rise or a drop in the exchange rate of the dollar. They mention a certain price. Then the exchange rate jumps.

    Now there is the Euro let us see what they will say about the euro. There is no problem with the dollar.

    The exchange rate of all foreign currencies rise and drop.

    Let me remind you. At a certain time, in the early eighties, the exchange rate of the dollar was 3 Deuteschmarks.

    There was not uproar in Germany. We make a fuss in newspaper. Fiery articles are published.

    In the early 80s, a dollar was exchanged for 10 francs. The rate came down. Before that it was 3.5 it rose to ten and then dropped to 4 and then rose to 7 and a little over.

    The exchange rate of all currencies (the Italian, Swiss) against the dollar rise and drop. The Japanese yen.

    In one of my visits to Japan, I wanted to make a purchase. I found that the exchange rate of the dollar was 85 yen. That was very expensive. I decided not the buy.

    There came a time when the exchange rate of the dollar was 135 yen. Now it may be 110 or 115. There was no turmoil in Japan, in Italy or in France.

    We should not be perturbed. No sensational headlines should be used because this gives a chance to some people to raise prices.

    It is a matter of supply and demand. Some people draw dollars from banks and hide them expecting a rise in the exchange rate to sell and make a profit.

    All this is manipulation. If we do not resort to it, matters will take their natural course.

    Our economy is taking the correct course. No economy in the world takes a straight course all the time. Some big influences happen. The course of life changes from time to time.

    There is no fear about our economy. We have very sound economic policies.

    Middle East Issue

    Let us talk about the Middle East issue. Talk about this issue at the present time is very sensitive.

    Therefore I shall be brief because there is a dynamic going on these days.

    I do not wish to be ahead of events and talk much about the Middle East issue. I call it the issue of lost opportunities since 1948 when they offered partition, it was met with No56, 67, and they said we would give you all the land. No.

    Then there was Camp David in the time of President Sadat when Israeli military forces withdrew from the territories of the west Bank and Gaza. Principles were laid down Security points outside to be agreed upon in negotiations. . No No.

    Some countries championed a no-solution approach.

    At the time of the framework drawn up by Anwar Sadat, there were only 18 settlements in the West Bank and Gaza in all occupied territories.

    They were small settlements.

    Rabin told me before he was killed that there was a very big opportunity. There were 18 settlements in all with 40 or 50 persons in each. When he came to seek a solution with the Palestinians, they said they wanted to close down settlements.

    He told me that the settlers would leave by themselves. Actually some settlements near Gaza were evacuated voluntarily.

    This was the nature of things. They wanted to live with their own people.

    That was an excellent opportunity that was missed. The forces were to withdraw.

    Initiatives:

    Then came the days of (former US. President Bill Clinton) and initiatives. There were endless problems.

    Violence erupted in September last year. We are exerting a very big effort. But the basis is the United States, Israeli response and Palestinians response.

    It is said that the problem is between the Israeli government and the Palestinian authority. There is violence.

    It is the result of siege imposed on (Palestinian) villages and cities. People reach the extent of despair. That is why we told them that we should seek a solution to this state of despair.

    There should be some easing (of the siege) so that people may go to work instead of remaining idle and not being able to make a living.

    They feel despair because they cannot provide for their children. I believe that there is understanding of this now. I think contacts are taking place now. I hope that they will get us to a solution.

    Contacts:

    Two days ago, the Israeli Prime Minister met with a Palestinian delegation. There is a Palestinian delegation conducting meetings in Europe.

    We are making contacts. Today, I am sending any envoy to meet (Palestinian President Yasser Arafat) Abu Ammar. They will meet in half an hour.

    The envoy will discuss with him (Arafat) what could be done in order to give Israel a chance to move in the right sphere.

    We are making effort. The Palestinian people are at present suffering. Even the Israeli people are suffering. Shall we leave things, as they are not possible? There should be a solution.

    The two sides should reach an understanding and respond to each other. They should begin to carry out agreements (signed between them). Failure to carry out agreements is one of the main reasons that make matters become more complicated.

    I received Israeli Defence Minister (Binyamin Ben Eliezer) at Sharm AL Sheikh. Of course, he is not authorized to take a decision.

    But I seized the opportunity to explain the situation to him and acquaint him with our point of view.

    I explained that it is not in our interest or in the interest of the area that violence continues to increase it is not in the interest of Israel or in the interest of the Palestinians or the interest of the entire area.

    They say that Arafat must go and that Arafat is not a partner. These are irresponsible words.

    I am not sympathizing with this person or that; I am on the side of and work for peace and stability in the area. This is the main and basic goal of my movement.

    I do not support a certain person against another.

    No I support peace that leads to stability in the area.

    I discussed with him (Ben Eliezer) the question of Arafat. Some Palestinians come here and meet with the foreign minister and some officials.

    They (Israelis) confess that they want Arafat changed. I tell them frankly that this would lead to chaos in Palestinian territories.

    Who will take over the leadership in territories?

    This makes me feel a terrible fear and I tell them that I wish that this would not happen.

    This man has been leader of the Palestinian people for about 50 years. I am not defending Arafat. I am defending peace and stability.

    I tell them (Israelis) let us get things moving in order to get the Palestinian people moving.

    Arafat has been leader for 50 years. They (palestinians) have confidence in his words.

    We should help to take the course of peace in order to have someone else comes (to replace Arafat) God knows who will come would he win the support of the Palestinian people at home and abroad?

    They would attack each other and 5 or 6 organizations would race to assume the leadership.

    The race would be in the direction of violence, killing and destruction in the whole area. This is what I fear.

    Therefore, I am trying to talk with the American administration and receive envoys. I am meeting some people tomorrow.

    All this for the sake of peace and stability and so that people may live. Instead of spending all our resources on fighting and bloodshed, let us spend on people whether in Palestine or Palestinians.

    We hope that they will live. We hope that their leaderships will work for the comfort of citizens and make life easy.

    I do not wish to enter into details in order not to spoil efforts taking place at present.

    I do not wish to say more, because what I say is sometimes used against the cause.

    President Hosni Mubarak Tuesday inaugurated Mubarak Education City in the city of sixth of October, Giza governorate.

    The city is the first specialized one that includes high technology in the Middle East.

    It is built on an area of 58 Feddans (acres) and includes a conference auditorium, an institute to train teachers and Information and Decision Support Centre (IDSC).

    President Mubarak then toured the city's different halls including one for graphics, and one producing and designing three dimension movies and softwares, which can upgrade the teachers abilities.

    He also visited different laboratories including one for sciences, computers, and physics, the Internet and for laser.

    An education Ministry official said distance learning has now covered all of the Egyptian governorates.

    The seven-ebucational channels are now serving 16,886 schools in Egypt, he said, adding that the remote areas are the most side that benefits a lot from such an advantage.

    The President then watched a three-dimension documentary on marine life.

    President Mubarak listened to a full explanation on the entire education process from Minister of Education Hussein kamal Bahaeldin.

    At the end of the tour, Mubarak held a meeting with the education staff.

    The meeting was attended by a host of ministers and senior officials.

    Addressing the meeting, Bahaeldin lauded Mubarak's role in fighting terrorism.

    He added that Egypt is not a member of any alliance but it is a prominent member in the international campaign aiming not only at tracking down terrorists but also at treating the reasons leading to terrorism.

    He noted that Mubarak was the first to call for an anti-terror conference in January 1986,at the European Parliamentary union meetings in Strasbourg.