Thank you for the kind words and for the New Year wishes that have just been conveyed to me on behalf of the Diplomatic Corps accredited to Lisbon. I gratefully return them and would like to ask everyone present to convey to your Heads of State my sincere hopes that 2006 will be a year of peace, concord and prosperity.

This ceremony has a special meaning for me as it is the last time I will be receiving your greetings. On this occasion I would like to say that as President of the Republic I have had great pleasure in my contacts with the foreign ambassadors accredited to Lisbon. Over and above your personal qualities and the benefits I gained from your knowledge and experience, your presence was always the cause of satisfaction, because it symbolizes the friendship between Portugal and the countries you represent.

Given our past, our geographical position, the presence in many countries of significant Portuguese communities, the projection of our language, and of course our place in the international community as a member of the European Union and, on another plane, of the Atlantic Alliance, Portugal has special relations with a large number of countries in all continents and extremely diversified political, economic and cultural interests.

Europe is the principal focus of our foreign policy. We consider the European Union as a true community of destiny to which we are indissolubly linked. Our participation in the European integration project is irreversible and in many ways moulds both our present and our future. The European Union produces a great many of the laws that govern us and sets the disciplines that we freely undertake to fulfil. It is in the European Union that we find our major economic partners. It is in the European Union that we define vital aspects of our foreign policy, within a process of permanent consultation and dialogue.

The last ten years were a period of great expansion and dynamism for the European Union. Two particularly important facts must be highlighted: the introduction of the single currency and the enlargement to 25 countries, which came into force on 1 May 2004. This was also a time of great activity in terms of defining the new rules for the internal functioning of the Union. The Treaties of Amsterdam and Nice were finalised and the negotiations for a Constitution for Europe were successfully completed.

2005 was nevertheless marked by the negative result of the referendums on the Constitution which took place in France and in the Netherlands. The ensuing rejections created a serious crisis mainly because it was voted on by a large majority of the citizens of two founding countries. Much time, patience and commonsense will be required to overcome the crisis. Nevertheless, by successfully completing the negotiations on the financial perspectives for the 2007-2013 period and confirming the decision to open accession negotiations with Turkey, to mention merely two highly relevant issues, the European Union has demonstrated that its decision-making capacity remains intact.

If the European Union provides the fundamental legal, political and economic framework for Portugal, our defence capacity continues to depend to a great extent on the Atlantic Alliance. The last ten years have also been for the Alliance a period of remarkable dynamism, mainly marked by two developments: its enlargement and a new interpretation of its missions, which led to its intervention in various operational theaters, namely Bosnia and Herzegovina, Kosovo and Afghanistan.

Portugal’s participation in these missions represented an important evolution in our foreign policy, a demonstration of the maturity of our democratic regime to shoulder international responsibilities and an important contribution for the modernisation and prestige of our Armed Forces. 2005 was negatively marked by the first Portuguese death in an operational activity within the scope of such missions, which occurred in Afghanistan. Although this will not deter us from continuing to fulfil our obligations.

The Community of Portuguese-speaking Countries (CPLP) is another core feature of our foreign policy. My two terms in office coincided with the first decade in the life of this organisation. The CPLP is not and cannot be considered an alternative to our participation in the Euro-Atlantic institutions. It represents a space of solidarity based on a common history and on a shared language - the third European language in the world and one of the few that continues to expand.

During this time and as a result of the existence and the action of the CPLP, Portuguese-speaking countries and their respective societies have strengthened their mutual knowledge and mutual cooperation. Many networks were developed within the CPLP between its members’ civilian societies, contacts between their governments were increased, know-how and experience were exchanged, and a common action within international bodies was outlined. Today the CPLP is a consolidated organisation whose action will certainly continue to grow.

Playing an active role within other frameworks of multilateral dialogue to which it attaches particular importance such as the Ibero-American summits and the Barcelona Process, Portugal attributes great value to its membership of the United Nations Organisation. Portugal, in fact, considers that the progress of international relations must be based on scrupulous respect for the law which implies the defence of the basic principles of multilateralism. We therefore consider that the United Nations and its specialised bodies play an irreplaceable role, one of decisive importance in international life. Despite some setbacks, this role has asserted itself with increasing force in this era of globalisation.

In 2005 I had the great pleasure of representing Portugal at the summit convened to mark the 60th anniversary of the foundation of the United Nations, which gave an important impulse to the reform of the Organisation. Within the scope of that reform, we were particularly pleased with the creation of the Peacemaking Commission, as it originally was a Portuguese proposal. It is vital not to lose the dynamics of this process; it is particularly important in 2006 to reach agreement on some of the pending issues, namely the operating methods of the new Human Rights Council. In this context I would also like to mention the appointment last year of António Guterres as UN High Commissioner for Refugees, the highest position ever held by a Portuguese in the Secretariat of this Organisation.

Heartfelt commitment to the process of European integration, faithfulness to the Atlantic Alliance, development of the CPLP, respect for international law and multilateral diplomacy under the aegis of the United Nations: these are the essential axes of our foreign policy, the object of major consensus within Portuguese society. I am convinced that this policy will continue to develop along these four axes. We want to defend Portuguese interests, while serving also the interests of the international community.

Ambassadors and Heads of Mission,

The year that has just ended was punctuated by a few events that I would like to mention. It was a year of terrible natural disasters: it was marked by the aftermath of the tsunami at the end of 2004, by the devastation caused by hurricane Katrina in New Orleans and by the terrible earthquake in northern Pakistan. I would like on this occasion to reiterate to the countries affected and to the thousands of victims of these cataclysms our deepest solidarity.

The terrorist attacks last year in London, Amman and Bali must also be mentioned as they merit forceful condemnation and total repudiation. The fight against international terrorism and against its ideology of hate and fanaticism must continue to be an international priority.

Unfortunately, 2005 was another year of great violence and tension in the Middle East. First of all in Iraq, still far from entering a time of peace despite the positive note of the impressive turnout during the elections that took place there. Secondly, in Lebanon, where totally condemnable political assassinations took place. Lastly, in the conflict between Israel and the Palestinians, although in this case a positive movement has occurred in a conflict that has been blocked for years: I refer to Israel’s withdrawal from the Gaza Strip and the dismantling of its colonies in that territory and in a small part of the West Bank.

Ambassadors and Heads of Mission,

Before ending I wish to recall with great pleasure the State visits I had the opportunity to make in 2005 to the People’s Republic of China, France, Chile and Belgium, as well as others that occurred within other frameworks: to Japan, Spain, the United Kingdom, Italy, Finland, Luxembourg, Paraguay, Mozambique and Angola. I would also like to mention the Heads of State I was honoured to welcome to Portugal: His Majesty the King of Spain, the Presidents of Mozambique, Turkey, Algeria, Slovakia and Estonia, without forgetting Kofi Annan, the UN Secretary General, with whom we worked most fruitfully over the last ten years. All these visits served their purpose of deepening friendships, consolidating understandings and enlarging cooperation.

A last word here to recall the end of the pontificate of His Holiness Pope John Paul II, whose funeral I was honoured to attend in representation of the Portuguese State, as well as the election of a new Pope, Benedict XVI, to whom I send a special greeting of respect, reflecting the feeling of the Portuguese Nation. I could not close without expressing my sincere regret for the absence, for health reasons, of His Excellency the Reverend Apostolic Nuncio, to whom I wish a prompt recovery.