Chinese Premier Wen Jiabao outlined his proposals to overcome difficulties and challenges in the region while addressing the first East Asia Summit in Kuala Lumpur on Wednesday.

In his speech, entitled "Be Open and Inclusive, and Achieve Mutual Benefit and Common Progress", Wen said the world is experiencing complex and profound changes, which have presented East Asian countries with both rare opportunities and numerous challenges.

East Asia, with abundant resources, a huge market and rich experiences gained over the years, has a solid foundation for developing and revitalizing itself, he said.

However, Wen noted that in East Asia, there are both problems left over from the Cold War and long-standing territorial, ethnic and religious issues, as well as increasingly acute new problems such as terrorism, transnational crimes, natural disasters and the spread of communicable diseases.

The region also faces problems such as unbalanced development and a widening divide between rich and poor, a sharp increase in energy and resource consumption, and the deterioration of the ecological environment, he added.

Wen believes that East Asian countries should strengthen coordination and tackle the challenges together.

"First, we should give priority to development and promoting common prosperity," Wen said, citing the status quo that East Asia is home to a large proportion of the world's poor.

"Development is the most pressing regional issue and number one priority for national governments," he stressed. "If the development issue is not addressed in a fundamental way, our region cannot expect to enjoy lasting peace and security."

"Second, we should build harmonious relations and safeguard peace and stability," Wen said.

Elaborating on his proposal, Wen said: "We should respect and treat one another on an equal footing, resolve disputes and differences through dialogue and coordination, increase high-level exchange, and strengthen consultation and coordination on international and regional issues."

"Third, we should strive to achieve win-win progress through cooperation. Under the current circumstances, cooperation is the only way to common development," Wen stressed.

Wen also emphasized the importance of the East Asia Summit, saying that it marks a new phase in East Asia cooperation and provides a new platform for attendants to discuss important issues.

The inaugural East Asia Summit was attended by leaders from the 10 member states of the Association of Southeast Asian Nations (ASEAN), China, Japan, South Korea, India, Australia and New Zealand.

(Xinhua News Agency December 15, 2005)