FROM THE OFFICE OF PUBLIC AFFAIRS

Thank you for coming today.

Before taking your questions, let me tell you why I am here in Asia (for the 3rd time in 5 onths), what I am trying to achieve, and why my trip is of particular importance to President Bush and the United States Treasury.

I am visiting three Asian nations this week - Malaysia, China and South Korea. The purpose is to launch a new international economic initiative aimed at transforming financial sectors into engines of growth. This represents a new Bush Administration international economic policy initiative.

We believe that well-developed and competitive financial sectors must be the engines of growth in this decade. My intention is to spotlight what I see as early successes in Asian financial markets and to draw attention to where increased competition and better, more transparent regulation can clear a path to stronger economic growth. I will initiate a new economic dialogue

with my Asian counterparts on ways we can encourage further financial sector openness in Asia. These efforts are, in my view, essential so that Asian countries can make the best use of their deep pools of domestic savings. Efficient use of domestic capital will be the new economic challenge for Asia in this century. This is the real path to sustainable economic growth.

Gone are the days when a national airline and heavy investments in manufacturing were badges of economic advancement. Now, in the 21st century, the fate of all our economies is intertwined. The world economy is no longer a zero-sum game. We have entered a period of convergence. When the United States grows, Asia grows. And vice-versa. It's that fundamental.

The global economy now stands at the leading edge of a new millennium in which world-class financial sectors - that are deep, flexible and resilient -- will be the engines of growth.

The path to transforming the world's financial sectors into engines of growth, we believe is through increased productivity. And the path to productivity, we believe, is through freer trade and investment in financial sectors.

Freer trade and investment in financial services enhances capital market efficiency. It bolsters financial sector stability, stimulates innovation, and provides businesses and consumers with the broadest range of financial products at the lowest cost. In short, freer trade in financial services enhances productivity.

When I say trade, I include FDI, after all, the right to have a local presence is normally essential to providing financial services. Openness in financial services also promotes access to new technologies and best practices. This has sped the development of on-line banking, securities trading, insurance services, and financial information services.

Therefore, I am using this trip to heighten the visibility of stronger and more advanced trade and investment in financial services. The connection between fully developed financial markets and economic growth is clear. The issue warrants being placed squarely on the global economic agenda. More frankly, it has not been until now.

While in Malaysia, China and South Korea, I will be hoping to enlist key Asian policymakers in an international effort to persuade leaders here and elsewhere to embrace greater openness to financial services trade and investment and financial sector liberalization.

I hope - through listening and engaging in constructive dialogue this week - to deepen and diversify the economic ties so that we can bring this issue to the forefront of governments in Asia and the rest of the world.