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Mr. Donald Anderson (Swansea, East): No objective observer, on the continent or in this country, can deny that the Berlin Council was a triumph for both the European Union and the Prime Minister. Why? Because we are now perceived as a part of a team, not as isolationists sniping from the sidelines. As part of a team, we can reach a good deal for this country, including--I speak as a Member from south-west Wales--objective 1 status for my area. On that subject, how will the Government respond in terms of matching funds for my region and others?

On Kosovo, the solidarity of the European Union and the NATO 19 has been magnificent. Will my right hon. Friend spell out what financial assistance will be given to the neighbouring countries to allow them to cope with the flood of refugees? Will he confirm that, throughout the bombing campaign, we shall not lose sight of the fact that, ultimately, there will have to be a political settlement?

The Prime Minister: I thank my hon. Friend for his comments on the Berlin summit. The issue of matching funds, like any expenditure of money, will have to be dealt with within the resources that we have available to us. My hon. Friend was right on the rebate. I should point out to hon. Members that, over the next few years, because of the settlement that we have gained, not only on the rebate but in the structural funds, Britain's actual net contributions will--for the first time since we joined the European Community--be far more in line with those of comparable countries such as France and Italy.

On Kosovo, we are giving financial assistance to the countries that have to deal with the problems of refugees. Part of the £10 million that I announced earlier is to deal

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precisely with that. I agree with my hon. Friend that, ultimately, there will have to be a political solution. We have always wanted a political solution. First, however, we must stop the murderous repression in Kosovo.

Sir John Stanley (Tonbridge and Malling): Will the Prime Minister place in the Library a paper setting out in the fullest possible form the justification for his statement today that, two months prior to the current military operations, Milosevic was planning the comprehensive ethnic cleansing of Kosovo?

The Prime Minister: I am perfectly happy to give the House--and anyone else--the evidence of that. There is absolutely no doubt about what has been happening. If the right hon. Gentleman and others like him want evidence of it, I shall list some of the things which happened long before this NATO action started. For example, over a year ago, in February 1998, in Likosane, 26 people were killed. Shortly afterwards, in March, in Donje Prekaze, 54 people were killed. Shortly after that, in August 1998, the entire town of Junik was destroyed. In Donje Obrinje, in October 1998, 18 people died. In Racak, in January 1999, 45 people were killed.

Those examples do not include all the places that were "cleansed" of people who were driven from their homes. A quarter of a million people were homeless before the action even started, and that number is on top of those who had to leave their homes even earlier. There is no doubt about what has been happening in Kosovo. To those who say that such actions began only when the NATO bombing began, I say that it has been going on month after month after month. The only difference is that now the situation is getting the publicity that it deserves.

Mr. Bill Rammell (Harlow): Will the Prime Minister reject out of hand the perversity of the position of the Conservatives--who reject federalism while in the next breath complaining when various European Union countries try to assert their national interest and when they do not get all they would wish out of a European Union summit? May I also warmly welcome my right hon. Friend's defence of the British abatement--which demonstrates that the fact that we are positive in our relationship with Europe does not mean that we have abandoned our national interest? Finally, does my right hon. Friend feel that enough progress was made on reform of EU finances to ensure that enlargement startsbefore 2006?

The Prime Minister: On the desire for even greater reform, my hon. Friend is right to point out that part of the difference in the common agricultural policy reform agreed at the Agriculture Council was that it was agreed by majority voting, whereas there has to be unanimity at the Council of Ministers and at the prime ministerial, Heads of Government and Heads of State level. Of course, we should have liked things to go further, but that is not to understate the reform that was agreed.

On the rebate, I have always noticed that other countries firmly defend their interests within the European Union. Any notion that France, Germany or Spain do not fight for their own national interests would be contradicted by attenders at any one of those meetings. The difference is that, when those countries have a national interest to be secured, they do not think that

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standing up for their own national interests will be helped by being anti-European. That is the difference between the two.

On my hon. Friend's final point, the settlement provides a basis for enlargement. Now there should not be any hold-up in the enlargement process, except for what is necessary to ensure that those countries are in a fit state to join.

Mr. David Davis (Haltemprice and Howden): Everyone will be just as appalled as the Prime Minister at the increasing viciousness of the Milosevic regime to the Kosovars since the start of the bombing. Did the Prime Minister predict that increasing viciousness, particularly given the evidence that he has just outlined? If he did, why was not more of the immediate military action focused on mitigating it?

The Prime Minister: We held back from military action to give the political process a chance to work. That is what we were trying to do for months and months. We were doing that not because we were unaware of what was happening on the ground but because we wanted, if at all possible, to go the extra mile to get a diplomatic solution. Unfortunately, we did not get that. Repression is going on now in Kosovo and our obligation is to act. We have taken action and we should take it all the way to see it through.

Mr. Tony Benn (Chesterfield): Is the Prime Minister aware that, whatever the legality or morality of the war that has been launched against Yugoslavia, the bombing has gravely worsened the refugee crisis, quite apart from the ethnic cleansing, which, as he said, has gone on for some time? The refugees alone may well destabilise the Balkans and the situation may get out of control. Is he also aware that General Wesley Clark saying that NATO would "devastate" Yugoslavia--a phrase that I heard him use on the television--was bound to consolidate opinion in Yugoslavia around their Government, as would happen in any country?

Russia--the one country that might have some influence--has been alienated. Is it not clear that, at some stage, there will have to be discussions? Rambouillet is dead. There is no possibility of going back to Rambouillet and sending troops in after we have bombed a country. What is required is United Nations action, a ceasefire of the kind that the Prime Minister urged so skilfullyin Northern Ireland, and bringing in someone of international status--maybe Nelson Mandela or someone of that character--to try to get the sides together before the situation gets totally out of control.

The Prime Minister: First let us be clear where the responsibility for the refugee crisis lies. It is not NATO bombing that has caused the refugee crisis; it is the policy of brutality and repression against innocent Kosovar Albanian people. I have no doubt that, when their country is subject to air strikes, there will be anger among the Serbian population, but let us not forget that they do not get the full picture. There is no proper news communication. There are no free newspapers. There is no independent television station that reports to the Serbian people what is being done in their name in Kosovo. Many ordinary Serbian civilians, even though they may dislike the NATO bombing campaign,

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would be horrified by what is happening in Kosovo under the Milosevic regime. We remain willing at any point to engage in peace talks and mediation, provided that Milosevic comes back into line with the agreements that he made last October and has never honoured. Any agreement has to take Rambouillet into account. Of course it has to be based on that. Rambouillet offered a good deal for Serbia. That makes it all the more tragic that Milosevic preferred to intensify his repression rather than accept the deal.

Mr. Bowen Wells (Hertford and Stortford): Is not the Prime Minister's failure in Berlin demonstrated by the fact that the European Union development budget for the next seven years was passed without alteration, in spite of the fact that we are highly dissatisfied with it, that it is the cause of much of the fraud and maladministration of the Commission and that it is not focused on the poverty base that we want to tackle?

The Prime Minister: The negotiation concentrated on Agenda 2000, the structural funds and the common agricultural policy, but Britain is taking the lead on development issues in the European Union, and doing a good job of it. I do not know whether the hon. Gentleman meant to say that the Berlin summit was a failure in general. I am too modest to read out quotes from newspapers from other European countries. [Hon. Members: "Shame."] I could be prevailed upon. It may be perceived as a failure by the hon. Gentleman, but that is not the picture from outside.


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