TUESDAY 21 NOVEMBER 2000 _________ Members present: Mr Donald Anderson, in the Chair Ms Diane Abbott Mr David Chidgey Sir Peter Emery Mr Andrew Mackinlay Sir David Madel Mr John Maples Mr Ted Rowlands Sir John Stanley Dr Phyllis Starkey _________ RT HON MR ROBIN COOK, a Member of the House, Secretary of State for Foreign and Commonwealth Affairs, MR EMYR JONES PARRY, CMG, Political Director and MR KIM DARROCH, Director, European Union, Foreign and Commonwealth Office, examined. Chairman 1. First, Foreign Secretary, the good news is I hope you have learnt that "Foreign Affairs" won the 1.05 at Wolverhampton, and I hope too in the course of your busy day you were able to do the necessary. (Mr Cook) Sadly, no, but I am sure it is an omen for the future. 2. Foreign Secretary, we welcome you, we welcome Mr Emyr Jones Parry, who is the Political Director of course, and Mr Kim Darroch, Director, European Union. You know, of course, that we have this meeting before every European Council and one of the advantages of this is that our meetings help to inform subsequent debates in the House of Commons. The debate in the Chamber will be on Thursday. I understand that the transcript of this meeting will be in the Vote Office tomorrow morning and on the internet about noon tomorrow, so it will hopefully be of assistance to parliamentary colleagues in terms of their preparation for that debate. The position in terms of the Nice Council, Foreign Secretary, is this, that, yes, it is the left-overs of Amsterdam, and it is the essential pre- requisite to enlargement. We, both the Prime Minister and yourself on behalf of the Government, have shown great enthusiasm for enlargement, not least in the Prime Minister's Warsaw speech. In that speech he, without naming names, was critical of those who indulge in grand declarations of enlargement without following it through into the detail of policy decisions. Is it your view that the enthusiasm of this Government is shared by other Governments? (Mr Cook) Yes, I think it would be fair to say that is true. I think in practical terms we have perhaps been of value during the negotiations, partly because we are the least protectionist of the states and therefore tend to be willing to sign up to the most generous terms for the applicant countries; partly also because we attach great significance to the security of Central and Eastern Europe and we understand embracing the new democracies there into the European Union will help to underpin that security; partly because we ourselves have formed very good, strong friendships and alliances with those countries. I do not think you will find a single one among the applicants who do not recognise Britain as a friend and an ally. 3. But there is a difference between acceptance in principle and the readiness to make the necessary concessions in terms, for example, of competition and agricultural policy, concern about an influx of workers in competition. Is it your fear that there will be such hesitations and that the timetable at Nice will be held up? (Mr Cook) No. I would very much expect partners to come to Nice seeking to reach an agreement on the Intergovernment Treaty amending the existing Treaty in order to pave the way for a European Union which can function with a larger membership. I do not think any partner would come there in order to prevent that from happening. The two points you touch on are two of the reasons why we are natural allies of the applicants. The first is we are one of the strongest advocates of reform and modernisation of the Common Agricultural Policy and we see enlargement as naturally increasing the urgency with which that must be tackled. Secondly, on the question of the free movement of people, we are possibly less immediately exposed because we are further away than some of our partners from the new members. At the same time, we have vigorously argued, and it is my own strong belief, that if we actually want to tackle the issue of migration which gives rise to some popular concern in some countries, the better way to do it is to bring these countries into the European Union, enabling them to share our prosperity and enabling them to have the prospect of a career and a job and a future within their own country. That was the experience with Portugal, and as a result of Portugal's membership there are now fewer people from Portugal working elsewhere in the Union than there were before Portugal became a member. 4. I would like to turn to the European Security and Defence Initiative and call Sir John Stanley, but one final question on this introduction. If all goes well at Nice, there is the Nice Treaty, that Treaty will have to be ratified, at least some of the countries, like Ireland and Denmark, may need a referendum, it will presumably be three months before the Treaty is completed in proper legal form subsequent to Nice. If that is the case, what can you say about the ratification process in this country, that it may well be that the formal legal document will not be available prior to perhaps a May election in this country? What is your expectation about the likely ratification process in this country? (Mr Cook) For the benefit of the press, I should perhaps say that no May election has been announced and I am not going to answer the question in a way that suggests there will necessarily be a May election. Our position is that we will seek ratification as soon as is practical. First of all, we have to have, as you precisely say, the legal text, and then there will be a signing ceremony which will follow some time after Nice. Thereafter, when that text is signed and ready to be put before the House, we will put it before the House as soon as we can. Chairman: I would like to turn to the ESDI. Sir John Stanley 5. Foreign Secretary, in the last few days, as we know, the EU Member States have announced their force commitments to the ESDI. As far as the UK is concerned, of course, all our armed forces are already committed to NATO. The question I would like to put to you first is this, in the event of a commitment of part or all of the armed forces that we are allocating to the ESDI to an operation elsewhere in the world, and that commitment has taken place, if following that deployment NATO finds itself with an imperative need to deploy its own forces, who will take the decision as to whether the British forces remain committed to the ESDI deployment or are recalled to take part in the NATO deployment? (Mr Cook) The British Government. 6. Can you therefore give me an assurance, and the rest of the Committee, that if such an eventuality arose, the right of the British Government to recall these forces without notice, without any delay, to take part in a NATO operation in preference to the ESDI operation, is wholly untrammelled and unqualified and is absolute? (Mr Cook) Yes. Sir John Stanley: Thank you. Mr Rowlands 7. Foreign Secretary, just to clarify what I think so far have been the statements which have been made, these decisions would be by unanimity, by consensus, to commit the forces? (Mr Cook) To commit the forces, yes. Once the forces were committed, the management of the operation would be taken in the hands of those who are participating in the operation, not in the wider European Union. In other words if a country, for whatever good reason, did not commit a force it would then not participate in the management of the forces. Can I confirm I have that precisely right? (Mr Jones Parry) The decision to launch the operation is one that the 15 would take by unanimity. The decision as to whether or not British troops should in any way be involved in it, is absolutely for the British Government and the British Government alone. Then what happens afterwards is what the Foreign Secretary has said. 8. I think in an earlier session we had, when this issue was first raised, one of us - perhaps I did - asked you whether frankly, however substantial this rapid deployment force is going to be, without American assent or support it was highly unlikely there would be any effective ability to launch this force, and we asked about Kosovo and Bosnia for example and if both those situations were re-run, would this new European defence force be capable of acting on its own without American logistic support or assent? (Mr Cook) First of all, we have put immense effort into working with NATO to make sure that we can get access to the common NATO assets which we have all jointly created within NATO. Much effort has gone into that and considerable progress has been secured with it, and you will have seen the letter from George Robertson in the Telegraph this morning. Now we would anticipate that if there was a major operation, then that major operation would draw upon central NATO assets for planning to make sure we could launch a successful operation. To be candid, I do not think a major operation could be mounted without those NATO assets. At the present time, we have no reason to suppose in those circumstances the United States, or any other NATO ally, would withdraw its consent for the use of those common assets. Do remember here that we have quite explicit statements in all the key documents relating to the European Security Initiative that we will only launch a European-led operation where NATO as a whole is not involved, in other words the kind of operation that you are contemplating would only happen if NATO itself had decided not to launch such an operation, presumably because the US itself did not wish to be involved. In those circumstances, we would expect there to be a presumption in the United States, not wishing to take part itself, to facilitate the use of the common NATO assets so that somebody could do it. 9. It would require US consent for any NATO assets to be deployed? (Mr Cook) Insofar as the United States is a member of NATO, yes, just as it would require the consent of other NATO allies like Norway who are not members of the European Union. 10. You slightly beg the question in the use of the word "major". How do you define what is minor and major in those circumstances? (Mr Cook) I would not attempt to define it by hard and fast rules, but let me take three cases in the Balkans which might illustrate it. First of all, I do not think anybody would be seriously contemplating the EU-led operation replicating what happened in Kosovo, that was a conflict, and indeed, as the Prime Minister said this morning, we are not contemplating this EU force participating in a conflict, it is there for humanitarian intervention and peace-keeping operations. Conversely, at the other end of the scale, you will recall in the mid-90s there was a state of anarchy in Albania in which the military forces and police forces broke down. On that occasion it was impossible to find an institution willing to mount an institutional response to that, and in the end there was a coalition of the willing led by the Italians. This could well be an example where had this EU possibility been present at the time of Albania, the EU could have mounted that and we would have had a much more effective and immediate and rapid response because we are dealing with an existing structure. I think Bosnia comes in between those two. It is quite possible that if we had available to us a core strength of 60,000 rapid reaction forces we could have committed it in Bosnia during those years in the early 90s when the United States were not willing to be present on the ground, and possibly had we been able to do so massacres like Srebronica might not have taken place. Mr Rowlands: May I finally ask you about the very strong words used by the Prime Minister in his Warsaw speech? I understand how we have wanted a better co-operation with the European Union to exercise political influence, but the words in his speech, if I could just read them to you, sound very different from just that. "Whatever its origins, Europe today is no longer just about peace, it is about projecting collective power." Now any layman would suggest that means projecting military power and that links to the reference to the super state. Chairman: Super power. Mr Rowlands 11. There is little wonder the media distort things and put those two things together and say that this is all part and parcel of the development of a military arm to the whole of the European Union. (Mr Cook) Let us be quite clear, as the Chairman was pointing out, that the Prime Minister did not say that he wanted Europe to be a super state, he did talk about super power but not a super state. 12. Super power. (Mr Cook) On the question of the military role here, if we look back over the crises of the past decade, and we have tragically seen too many of them in South East Europe over that decade, the military role was a very important role in making sure that one could restore, establish and sustain peace. 13. That was done by NATO. (Mr Cook) By NATO in some cases. In Albania by a coalition of the willing. In the case of Bosnia it was actually not done initially by NATO, it was done by the UN mandating a force, UNPROFOR, in which many European nations took part but the Americans did not. The central point is there in that given a state of insecurity and instability the military had a very powerful part to play in restoring stability and in maintaining that security. This does not mean that we are going in any way to contemplate an outright conflict but where there is insecurity, where there is instability, if we want to have an EU capacity to restore the peace then we have to have the capacity to project a military force. 14. So it is about projecting collective power that was anticipated in this kind of development that we have seen? (Mr Cook) Yes. The Prime Minister has been utterly explicit on many occasions that we do not see the European Union as the instrument of collective defence. We have always said and repeatedly said that that is a job for NATO and nothing that has happened in European security is going to undermine that central role of NATO and NATO is the sole provider of that collective defence. Sir Peter Emery 15. Foreign Secretary, you will know that the Parliamentary Assembly of NATO was meeting in Berlin last weekend and yesterday. There were a number of American Congressmen, both senators and members of the House of Representatives, who were very neutral on ESDI. They, rather surprisingly, were not giving much away either for or against. You obviously will have had discussions with your opposite number in the American Government. Can you tell the Committee what you judge is the American Government's view about ESDI? (Mr Cook) The American Government's view is well known and widely available in public. Madeline Albright only yesterday did say that "the European Rapid Reaction Force is a strongly positive development. We wholly support it", which could not be more explicit. She went on to recall that the United States is working closely with the European Union to make the initiative a success and that it will strengthen European and transatlantic security. There are similar statements from the Defence Secretary who has said that they wholly and unequivocally support it and there are similar statements of support from President Clinton. There is no actor in the American Government who is immediately relevant to this issue who has not gone in public on this with very strong statements of support. 16. They do not consider that this is a weakening of NATO? (Mr Cook) No, and indeed Madeline Albright's statement of yesterday actually does say it will strengthen it. The reason for that is that the United States has for long been concerned that Europe could do more to share the burden. The stress that we have been successful as Britain within the European Security Initiative for putting on capability has meant that we have now had to face up to the need to make sure that we can have available flexible, mobile, rapid forces that we can move in the event of a crisis. Do remember of course that as we develop these forces they are not available only to the European Union. Should NATO decide that it wishes to lead the operation rather than the European Union then they are available also to NATO, so it is an additional resource to NATO. 17. But of course it will as a force not have the lift capacity which NATO has with the Americans of going very far even within Europe. (Mr Cook) You are right to identify one of the weaknesses of the European military forces, the absence of strategic air lift capacity, and that has been identified by the military in the course of discussions leading up to the Capabilities Conference. We are looking at ways in which Europe can strengthen this, for instance through the acquisition of the Airbus. But in the event that we had an agreement that the European Union would lead an operation and NATO in which, as I say, effectively here the United States was not going to take part, it is by no means impossible in those circumstances that the United States, faced with an operation in which they may not wish to take part but an operation which it wishes to succeed, might assist with air lift. Mr Chidgey 18. Foreign Secretary, as I understand it the force we are talking about is 60,000, which is probably 120,000 allowing for flexibility and operational roles. I understand also that the expected range of operations for the force could be as much as 2,400 miles. I presume that is assuming that the Airbuses come on board. In that scenario, and given the different rates of funding that different members of the European Union have akin to their armed forces, how confident are you that in fact this is going to work and that the Member States will honour the promises they have made? (Mr Cook) The headline goal is to put in the field a core strength of a rapid reaction force of 60,000 personnel, to put it in the field within 60 days and to sustain it there for at least a year. 19. It means obviously far more than that available to maintain it? (Mr Cook) You would have to have a process of allocation or something like that. At the present time the commitment has been made at the Capabilities Conference to exceed what is required for that 60,000 figure. We have commitments of 100,000 that have been made. Indeed, I would stress that the Capabilities Conference in this sense has been a very considerable success. Remember also that we are looking really at the top whack, for instance, if one or two of the kind of scenario that we were discussing earlier in Albania, you would not be committing anything remotely approach the 60,000, maybe not even a tenth of that figure. Can I say something about the geographic scope? There is no decision either on the delimitation of that geographic scope, nor is there any decision on a particular ceiling, so the figure of 2,000 miles which you have quoted has no official provenance. The report from the Capabilities Conference is quite careful in that it makes its commitments only specifically within Europe and the European sphere of what is sometimes described as the European back yard, which is the countries immediately adjacent to it. I would not myself have thought that we are likely to be going outside the European continent other than in circumstances where we are doing so in response to a UN mandate. 20. Can I pick that point up because there are two things here. You said earlier that it requires total unanimity from all the nation states for the decision to be made to become involved, but could it be the case that, having got that consent, it would not necessarily require all the Member States to be involved in the action? Could this be an enhanced operation scenario, particularly, for example, in West Africa where we have interests in Sierra Leone and the French have interests in Guinea and, as you know, the overall conflict is now spreading over the borders northwards to Guinea? (Mr Cook) First of all we would not see enhanced co-operation as an appropriate model here and that raises a whole range of different issues, one of which of course is that with enhanced co-operation the Commission would have a role and we have been quite clear throughout this that despite what the papers say there is no role for the Commission in this initiative. To come back to the central point of your question, yes, if the European Union took a decision to launch an operation it is then a matter for decision for each of the members as to whether or not they take part. That must be the case since we ourselves are clear that we are not going to be mandated by the European Union on a basis on which we are compelled to take part; we will take our own national decision and we can hardly object if others do the same. 21. One final question. Given the overstretch we already have on our armed forces, is your colleague, the Defence Secretary, totally happy with this? (Mr Cook) Totally, enthusiastic about it, played a very strong part in it in the course of the conference today and yesterday, and the Chief of Defence Staff also played a very full part in this. The point that it illustrates I think is very relevant to the European Security initiative because, as I have been saying, one of the gains from this is that there will be perhaps a fair sharing of the burden of maintaining the peace and within that overall envelope of the 100,000 commitment it is true that we have committed 12,000. It is also the case that other partners have committed 88,000 and making sure that they can deploy flexible, mobile, rapid forces of the kind that many of them still have to work on is a very important gain for Britain. Sir David Madel 22. Before the ESDI operation began would we inform or consult the United States? (Mr Cook) In the event that we will be using NATO assets there would be no question that we would have to consult fully with all the NATO members. In the event that we were not using those NATO assets theoretically the requirement for consultation would be less. In practice however I think that there are no circumstances in which it is going to happen without extensive consultation with partners. Do remember that first of all NATO itself has to take a decision as to whether or not it is going to be involved. 23. Before the ESDI operation begins there has to be unanimity amongst the countries before they start an operation? (Mr Cook) Before it can be a European-led operation there has to be European Union unanimity. 24. Does there have to be unanimity to stop the operation? (Mr Cook) As I recall it, the inclusion of an operation to formally wind it up would be in the hands of all 15 but in practice if the participants decided to end it then it would end. 25. So if some participants said, "We should stop now", it would stop? (Mr Cook) Not necessarily some. I would hope that there would be unanimity among the participants to wind up the operation. Obviously if some withdrew there would be a question for the others whether they could realistically continue. Am I right in that? (Mr Jones Parry) Absolutely right, Foreign Secretary. Can I stress that all the structures, the decisions, have been put in place to ensure that the decisions when taken are militarily sound, so there cannot be a question of a capricious withdrawal. It would actually be sitting down with contributors on the ground, none of us can take decisions which affect contributors without them being involved. It is quite basic. If the view of the contributors was clearly that they wanted out, then no-one else can impose on them an obligation that they should actually continue. It is just not conceivable. Could I also stress one thing? Continually the phrase "a force" is being used in questions. There is no standing force. There is no European army. There are capabilities which have been declared to the Union but there they are also capabilities which are available for the United Nations, for NATO, for Member States to use in whatever way they wish. That is basic to this. When we talk about priorities, the priorities are no different for the Secretary of State for Defence now than they will be afterwards. There is always a difficulty in where do you put your priority. The assumption somehow is that there is a problem out there which the EU will take and therefore it will cause a problem for NATO. The fact is that if there is a problem out there somebody will have to deal with it. What this is doing is producing added capabilities so that some of it can be used if needed. (Mr Cook) If I could just summarise it, it is not going to be a Euro army. There is no permanent standing army. There is no permanent central integrated command as there is with NATO. We are under no obligation to commit our forces in the event that there is such an operation and we will only do so if we choose to do so. 26. A capricious decision to withdraw could be caused by changes in the political situation in one of the countries. Would you accept that? (Mr Jones Parry) Absolutely, but then you would require a sensible rational discussion so that you did not take decision unilaterally just like that which put others at risk. We would require that of other contributors but it does not in any way say that you could not withdraw, but the manner in which you did it would of course have to be done in the most responsible way. Mr Maples 27. Foreign Secretary, you said that one of the things the United States wanted to see was greater European military capability in the contribution to security in the region. One of the concerns some people had was that with the European Union setting up its own military committee, military headquarters, with no integrated control system but we are setting up a military staff, talking about our own communications and intelligence capabilities, duplicating those of NATO, is there not, at a time of falling defence budgets across the European Union, particularly in Germany which will be one of our main allies in this initiative, a danger that with these additional expenditures which are being called on the actual money going into military effort and military capability will be less and not more? (Mr Cook) But the additional expenditure is very modest. First of all, we are not going to have a permanent standing headquarters. There is no equivalent of SHAPE, for instance. There is indeed going to be the committee of military personnel from each nation in Brussels able to advise on what might be a feasible operation and how it should be run. But, for heaven's sake, that has to be a very sensible first base from which to make any sensible and informed decisions. But the cost of that is pretty minimal and probably the marginal cost of it is almost zero. As George Robertson has stressed in his letter today, what we are seeking to do is to complement not to compete with the assets of NATO. In the context of the Germans and the Dutch in defence spending which you mentioned, I think that this initiative has been extremely helpful in encouraging partners within the overall envelopes that they are willing to make available for defence to focus their efforts on making sure that their forces are flexible, are mobile, can move rapidly. Germany was rather taken aback by how difficult it was to get 5,000 of their service personnel to Kosovo in the course of the conflict. That and the European security initiative has helped to shape the debate in the direction of producing more flexible, more rapid, more mobile forces, even within the overall declining envelope. It is very much in our interests that that does happen across Europe; otherwise we and France will be the only people capable of responding. 28. If we take the case of Germany, for example, which has one of the lowest percentages of GDP on defence of any European Union country, setting up our own intelligence communications with additional military staff, that is not going to add to that capability of itself. Do you have any assurance from the German Government that they will spend more money on defence to make up at least for those duplications of assets and resources which currently exist in NATO so that we can guarantee that they will be providing a greater military effort as a result of this initiative? (Mr Cook) First of all, I would strongly resist the idea that there is any substantial expenditure on the duplication to which you refer. Secondly, it would be impertinent of me to seek assurances from any other sovereign state within the European Union for guarantees about their spending. I think you would strongly resent it if Germany was to require that of us. (Mr Jones Parry) On the intelligence, what is clearly necessary is that sources of intelligence should be available to the European Union. There is no plan that the European Union should have an intelligence gathering capability. At the moment, there is a WEU satellite centre which does a certain amount of work. That will probably continue, but there is no sense of extending beyond that. It may be that some Member States will put in national intelligence assessments if an operation is being contemplated but there is not going to be massive expenditure on intelligence by the EU. 29. Are you saying that we as a nation will share all of our military intelligence? (Mr Cook) No, not all of it. Indeed, we do not with anybody but we may well share intelligence which is relevant to an operation to the extent that we can do so without compromising our own terms of operation. I read in one paper this morning that the intelligence chiefs are very concerned about this. I have to report, as the Minister to whom the Secret Intelligence Service reports, that I have had no such concerns expressed to me at all at any point of this. Chairman 30. No concern about the leaky nature of Brussels? Interpreters are refusing to have positive vetting. (Mr Cook) There are bona fide issues of security within the European Union which is now embarking upon a new exercise for it and that will require both secure buildings and staff with a culture of respect for secrecy. Javier Solana has been working hard at this. I cannot think of anybody more likely to develop that culture of secrecy than the person who has just spent five years as Secretary General of NATO. Mr Maples 31. I understand the reason for the initiative, but I also understood very clearly the previous policy which the Prime Minister set out at Amsterdam, which is that defence was no business of the European Union. That policy changed in the autumn of 1998, in the two or three months in the run up to the Saint Malo Agreement. I have never really understood what the rationale was for that policy change because it was a very significant policy change. Sometimes the experience of Kosovo is prayed in aid for the change but Saint Malo happened several months before the Kosovo operation. I wonder if you can explain to us exactly why the policy was so significantly changed? (Mr Cook) I would make two observations. First of all, there has been no change in our view that collective defence is not the job of the European Union and nothing in this initiative in any way entrenches on that. Collective defence remains the job of NATO. We have been very successful in the course of all of this in making sure that that is repeatedly stated. Secondly, whilst you are quite right that the Kosovo conflict comes after Saint Malo, all of us could see the troubles in the Balkans and the difficulty in Kosovo and our recent experience in places like Bosnia. In those circumstances, I think it is entirely sensible that we should look at how we can use the European Union to provide better, effective decision making, to provide for the military capacity, in order that it can play a better part in controlling such crises. One of the great advantages of the European Union is that it has both the military capacity of the Member States and the immense humanitarian and financial assets of the European Union. Crisis management, unlike collective defence, requires you to get the right balance between both of those. You need both of those in any crisis and that is why the European Union is an appropriate agency to manage crises. It is not an appropriate agency, in our judgment, to manage collective defence. Mr Mackinlay 32. Quite apart from legislation which might arise from any treaty arising from Nice, will there not have to be self-standing legislation to deal with the defence and security arrangements? For instance, I hear what you say about security but manifestly there would need to be presumably some pan-European or identical legislation, including the neutral states and the Applicant states that might be participating, to see that there was some minimum level of security and parity of treatment throughout the arrangements? (Mr Cook) On treaty change, it is our judgment that there is no requirement for amendment of the treaty to provide the authority for what we are doing. There are some countries that, whilst not necessarily contesting that it is not required, think it might be desirable. There are other countries who would find it very unhelpful if there was such a treaty change in respect of defence at Nice. There has already been reference to the possibility of Ireland having a referendum. As I understand it, it does not propose to have a referendum on the Treaty of Nice, but it would be obliged to if we incorporated issues such as defence. The probability is that at Nice we will not make any treaty change in respect of this initiative, but we do not see that as a problem. Indeed, throughout this whole exercise, Britain has been trying to get the exercise focused on real capability and real improvements, not on legal or rhetorical change. 33. Do you see that there might be a distribution of responsibilities, either geographical or who has what assets, between countries? For instance, would some have more maritime responsibilities than others perhaps of cold weather climate? One of the concepts is to maximise the scarce resources of the individual states collectively, is it not? (Mr Cook) It would make a lot of sense for nations to contribute those parts of their military capabilities in which they have specialist skills and specialist experience. From my visits to Bosnia, it would require both cold climate and Mediterranean climate equipment. 34. I was thinking of some of the smaller countries. It would be a pity if the smaller countries replicated everything rather than ---- (Mr Cook) We are not asking any country to necessarily start out and develop from scratch a new capability to contribute. We are encouraging a number of them -- some of them have been encouraged by the very exercise -- to look at how they can make their existing forces more flexible and more mobile, but essentially what this is doing is making sure that the contributions we already make in the military can be pooled effectively. On the overall question of resources, collectively, the European countries of NATO spend the equivalent of two thirds of the United States defence budget. That is a very large sum of investment and I cannot say I am convinced that they get out of it two thirds of the American output. A more effective pooling of resources and perhaps a respect for specialised skills might give us a more effective use of the money we do spend. 35. I agree. Can I ask you about a political point? It seems to me part of the motive for this is a matter of prudence. Europe cannot always assume that the United States through NATO will wish to intervene in our backyard. Indeed, there have been some recent indications where there has been an incapacity either through Congress or the administration to do that. As I understand it, it seems to be a matter of prudence that we should make arrangements for that day perhaps when government or Congress or the people of the United States say, "We will sit this one out." That is a prudent course but the anxiety we have is also that by making these arrangements you give an amber light for the people of Congress in the United States to come to that view earlier than they might have done. Is there any way of taking initiatives to try and keep on board and continue the involvement and commitment of the United States in NATO and western Europe's security? I am not talking about Madeline Albright but longer term. (Mr Cook) There is only so much Madeline can do in the time available to her. Can I make a distinction? First of all, collective defence rests with NATO. I do not for one minute suppose that the United States will not for all future foreseeable time play its full part as a leading player within NATO. In the event of that collective defence being required, all of us are committed. Without the same ability of national decisions to pick and choose what you will have with the European security, we are obligated to take part in the event of an external attack. I am absolutely confident the United States remains very firmly committed to that Atlantic alliance as one of the corner stones of its foreign and defence policy and that that will continue. There is then the range of operations which are outside the NATO requirement of collective defence such as some of the peace keeping operations that we have had to mount in the Balkans. There may be occasions in the future -- there have certainly been occasions in the past -- when the United States has not felt they ought to take part on the ground. It does seem therefore sensible and, to use your word, prudent for the European Union to be able to mount an operation in those circumstances. On your point about the impact on political opinion within the United States, I would stand that argument on its head. The criticism one has heard more often in the past from Congressmen and senators is that Europe does not pull its weight and in particular does not pull its weight in being willing to undertake peace keeping operations within its own continent. I would have thought there was actually a greater risk to the alliance if we are not seen to respond to that perception that we do not pull our weight and a greater possibility that we will maintain the health, strength and vibrancy of the Atlantic alliance if the United States can see and is confident that its partner is pulling its weight. Mr Rowlands 36. On a question of clarification, what has emerged from these exchanges is that outside of minor operations the new rapid deployment force would be dependent quite quickly on NATO assets and utilisation of NATO assets. Those assets require unanimity by NATO countries. We focused on the United States but what about a country like Turkey which is pretty peeved about this project anyway? It would require Turkish consent to utilise any NATO assets, would it not? (Mr Cook) Of course. As a member of NATO, Turkey would have a say in the use of common assets to which Turkey and the rest of us have contributed. I would not want the Committee to think that this has arisen with us as an afterthought. For well over a year, we have been engaged in intensive dialogue both with NATO as an institution and also with the other members of NATO who are not members of the European Union. That has resulted in two separate sets of agreement. One of those agreements is that the European members of NATO who are not in the EU can participate in any EU led operation. In other words, if we decide in the European Union that we are going to mount such an operation, it will be open to Norway or to the three candidate countries, the Czech Republic, Hungary and Poland who are not yet in the European Union, to take part; also Turkey. The other set of agreements relates to our access to NATO assets and the decision making within NATO on that. A lot of work has been done on that. Some of that will be approved at Nice. It is perfectly true that Turkey will want to be sure that its interests are fully safeguarded, but it is not saying no in principle to this concept. Ms Abbott 37. To return to the question raised by my colleague, Mr Mackinlay, on the possible effect of the European rapid reaction force on the US, everything you have said about US sentiment applies to successive US secretaries of state in what you might call the east coast foreign policy establishment. Is it not the case that on the hill in Congress there has always been a thread of isolationist thinking which may or may not find a new arena if there is a change of president? Even though President Bush seems to be in the hands of his father's advisers more or less, nonetheless, there is a strong isolationist thread running throughout the thinking on the hill. We know this because we meet regularly with our colleagues. Is there not a danger that the emergency European rapid reaction force may play to that longstanding, isolationist thread in Congress and therefore not necessarily be constructive? (Mr Cook) At this particular moment in history, I am not going to get drawn on any speculation as to who will be the next president of the United States. It is the case that within the United States, which is a lively democracy, you can hear different views. The view of the current administration is united on this. 38. What about Congress? (Mr Cook) I will come back to that in a moment, if I may. We have a dialogue with some of those who are around both the candidates for the presidency and I do not anticipate that their view will be any different. 4I have spent some time over the past year on the Hill and the views that tend to be expressed to me by Senators and by Congressmen is not opposition to what Europe is doing, but some disbelief as to whether we would actually deliver on the commitment to the core of 60,000. I look forward to the next time I return to the Hill because that disbelief is plainly misplaced. I have read regularly in the papers over the last two days thinking similar to the one you have expressed that if Europe improves its capability it will encourage the United States to loosen its ties with Europe. I think that is flatly wrong. I think if those Congressmen and Senators did not see Europe responding to what plainly is a need for a capacity to mount a crisis management within Europe then they are more likely to be against being supportive of Europe. If they see Europe playing its part and making the kind of modernisation that we have done they are more likely to recognise us as a viable partner with whom they can work. Chairman 39. Secretary of State, before coming on to the leftovers via the Middle East, I would just like you to comment on the two areas where perhaps the spirit of St Malo is not as strong, and where there are possible divergences between our own position and that of the French Government on the nature of European defence: one, in terms of the military personnel in the Committees of the European Union. I understand we are double-hated in that our personnel assigned to NATO will also be those assigned to the European Union, and that is the position of the majority of countries; whereas the French will not in fact double hat - suggesting that they have a rather different view of what the European Union could be. Is that correct? (Mr Cook) I am not sure whether it would be correct to proceed from a different view of what the European Union can do but, famously, they do have a different perception of NATO and, of course, they are not part of the integrated central command in NATO, which is why they may well feel that their representative to the European Union initiative should be different from their representative to NATO who fulfils a different role there - different compared with our own representative. As a matter of fact, the majority of the European Union nations have shared the same approach that we have. From memory, France and Belgium are the two exceptions but I do not think we should feel uncomfortable with the company we are in. 40. The other area of possible divergence is this: you said to the Committee a few moments ago there is no room for the Commission in this. When you came before us last time you said this was essentially intergovernmental. There remains the question of parliamentary oversight. The French, I understand, want that oversight to come through the European Parliament. We have not heard the question of where we stand on it. Can you ensure that we follow the Dutch initiative and ensure that there be discussion at the Nice Summit of the nature of the necessary democratic parliamentary oversight over this defence policy? (Mr Cook) First of all, I am very happy to say that we have always taken the position from the start that because this was intergovernmental and because the military forces are accountable to their national governments this was not a matter in which the European Parliament had any locus. I have noticed one or two papers in the last day or two have taken some scare stories from resolution to the European Parliament. Those resolutions, of course, have no status whatsoever in the context of the initiative and will have no bearing in the future of the Force. The oversight of the commitment of British Forces remains with the British Parliament and, similarly, with the French - who I do not think actually have said that they want the European Parliament to have a role in this. I think they share our perspective on that. There is an issue of how does one provide some form of pan European parliamentary scrutiny. This is one of the issues that prompted the Prime Minister to float the concept of a second chamber. 41. That is after another IGC after perhaps five years. How do you fill the void prior to the five years of another IGC? (Mr Cook) We are going to create a new institution but it is not going to happen overnight. In any case, this particular institution, the European Security Initiative, will not be there until 2003. 42. Will you ensure that this is on the agenda at Nice? (Mr Cook) We have already put it on the agenda by Mr Blair's speech in Warsaw and part of the discussion at Nice may well be to follow up to Nice. 43. Will you ensure that it is? (Mr Cook) I think we will have to take a judgment on where it comes in the long-term issues which we are negotiating. Other partners are keener in pushing the post-Nice agenda than we are. Dr Starkey 44. Can I take up from the outcome of the Euro-Med conference that was held in Marseilles last week, which I take it will be discussed in Nice. Is it realistic for the European Union to pretend that progress can be made on the Euro-Med process when the conflict in the Middle East is continuously deepening. I noted in the Foreign Office memorandum it says the Palestinians and the Israelis expressed appreciation for the help and support the EU has given. Could you say what practical and specific measures the European Union is now proposing to actually take the peace process forward to deal with the conflict? If the European Union as a whole cannot come to any specific action might Britain and the French between them actually to propose some specific action? (Mr Cook) First of all, in the course of the very interesting discussion we had in Marseilles there were a number of specific proposals put forward, including I am happy to assure you by myself and also by Javier Solano. It was a private discussion and I do not think I am at liberty to discuss the particular points that were discussed. The European Union is now more important for the peace process than at any previous time. Javier Solano was present at Sharm-Al-Sheikh. His participation there has been widely praised by the others present with whom I have discussed it. He is also now appointed to the Mitchell fact finding commission and will very shortly be visiting the regions in that capacity as well as in his European Union hat. We are very willing to do all that we can to take forward the peace process and we made that plain at Marseilles, where I also had separate private meetings with both the Israeli Foreign Minister and Nabil Sha'ath on behalf of the Palestinian authority. There are a number of issues that I think can be taken forward. First of all, if we are looking at it problematically, both sides should carry out the implementation of the agreements they have already reached at Sharm-Al-Sheik. Secondly, the fact finding commission should be put in place as quickly as possible, Javier Solano is taking a very active interest in the region. Thirdly, there is a strong feeling that it would be helpful if we could get agreement on both sides in some form of observers; and one possible way in which that could be secured in the immediate future might be for the fact finding commission itself to appoint people who can look at the facts on the ground in the present as well as in the past. The Israeli government has already agreed to the fact finding commission; it might be easier for it to agree to observers that are attached to the fact finding commission. We need some confidence building measures. Possibly Europe itself can help to reduce the tension by addressing the situation in the West Bank and in the Gaza. All of us attach high importance and yesterday called upon an end to the blockades of the towns and the villages within the West Bank and the Gaza Strip; and Europe itself has already released some funds to cover suspension by the Israeli Government of the payments of tax to the Palestinian authority. There is a lot underway and we are very keen to take it further. Chairman 45. Foreign Secretary, we will resume on the Middle East. We will aim to begin as soon as possible after five past. I hope we can claim some injury time. (Mr Cook) I do have a commitment at the office at 6.15 so I will need to leave at 6, but I will try to speak as quickly as possible. The Committee was suspended from 5.55pm to 6.05pm Chairman: Dr Starkey is going to continue with the Middle East, then Sir David has one question and then we move on to Mr Maples. Dr Starkey 46. Before you were so rudely interrupted, Foreign Secretary, you were talking about the EU urging the Israeli Government to lift the blockades. Can I ask whether you have considered using the human rights instruments within the trade agreement with Israel? Can I remind you that when I asked this before in May 1999 you said that it was not the moment to use the human rights clauses at the start of the Barak Government. Can I point out to you that we are now at the point where under Barak actually more illegal settlements have been built in defiance of international law than were built under the previous Netanjahu Government and, of course, despite the UN Security Council Resolution, a wholesale disregard of Israel's obligations under the Fourth Geneva Convention culminating in yet more collective punishment in response to armed attacks from the Palestinian side. Can I ask whether the EU is seriously considering using the human rights clauses within the trade agreements to suspend the agreements, to encourage the Israelis to comply with the Security Council and their obligations under international law? If not, how bad do human rights abuses have to get before those human rights clauses will be invoked? (Mr Cook) I think, Phyllis, you have to be clear what it is you are asking of the European Union. Your previous question was what are we doing to help the peace process. Your second question is, what are we doing to make life so difficult for the Israeli Government that they may reconsider the conduct of their policies. Either of those is a tenable strategy. What is not tenable is doing both at the same time. If we chose to invoke the suspension of the trade agreement on the grounds of the human rights clauses, that would become the total focal point of our discussions and negotiations with the Israeli Government, there would be no room for anything else in the context of our relationship with the Israeli Government. Indeed it would be a pretty tough and harsh negotiation which, if we persisted, could result in the suspension of a very large volume of trade which is of interest to Israel. I cannot honestly see that as a useful back-drop to us trying to play a facilitating role in the context of the peace process. There is a general truth here and we had better face up to it honestly. If we are going to play a role in the peace process, if we are going to play the kind of role we did in Marseilles when actually we brought the two foreign spokesmen together for a lengthy and very useful and honest discussion in a way they do not have in other forums, then we have from time to time to bite our tongue and not say things and do things which one side or the other is going to find makes us unacceptable as a body which can play that mediating role. 47. But we are also high contracting parties to the Fourth Geneva Convention. By not acting we are actually abrogating our obligations, our obligations, under the Fourth Geneva Convention. How long can we go on not using the powers that we do have to try to protect people who are being killed? (Mr Cook) We have many obligations and as Foreign Secretary quite a large part of my time is spent reconciling the differing obligations we have. At the moment in the context of the Middle East, the most pressing obligation we have is to play what part we can in ending that bloodshed and nothing less than that will actually end the loss of life to which you refer. Suspending the trade agreement most certainly will not. Dr Starkey: I think that is a matter of opinion. It does appear that the human rights clauses in this trade agreement are a complete dead letter and there are no circumstances in which the EU would actually invoke them, in which case I do think the previous minister in the previous Government who assured Parliament that those human rights clauses were important and could be used as added pressure was talking through his hat. Mr Mackinlay: Who was that? Dr Starkey 48. Mr Hanley. Finally, I want to bring up another more technical point in relation to the trade agreement, which is that I note in the conclusions of the Presidency Report that there is mention that there is going to be a move towards bringing in the diagonal accumulation in the trade agreement to encourage inter-regional trade. Could I at least have an assurance that there will be no discussions on diagonal accumulations involving Israel until the current dispute between the European Union and Israel, over the way in which the Israeli Government is misapplying the rules of origin so as to designate goods produced within illegal Israeli settlements as "made in Israel", is sorted out and resolved to the satisfaction of the European Union? That there will be no discussions about diagonal accumulations involving Israel? (Mr Cook) I think that is pretty certain but I also have to say that fears about diagonal accumulation involving Israel are possibly at the outer margin of the areas of immediate concern in Israel, because the reality is that there is not any other country in the region which is going to get into diagonal accumulation in the present circumstances. Sir David Madel 49. For clarification, Foreign Secretary, am I right that both Israel and the Palestinian authority have agreed to the stationing of observers? (Mr Cook) No. The Palestinian authority is very keen on it and lobbies internationally for it, but there is no agreement on the Israeli side. Chairman: I would like to move on now to the main areas of the Nice Council, QMV. Mr Maples? Mr Maples 50. Foreign Secretary, there is a rather long list - rather longer than many of us expected - of 50 items in the draft which the French Presidency has produced, suggesting a move from unanimity to QMV. I am sure everybody is happy to know it is not my intention to go through the lot, and I am sure you would say that some of them are very minor, but there are two or three of them we can deal with quite quickly and then on social security and tax perhaps you would like to take a little more time to elaborate which proposals fall within the category which the Government will not agree to. The first thing I want to ask you is that the appointment of the special representative to the CFSP is now going to be done by qualified majority voting. Does the Government have any difficulty with that? (Mr Cook) No. In fact we pressed for it. 51. You do not think that falls within the definition of the area that you said you would not allow? (Mr Cook) It is not an issue of a defence commitment or indeed a foreign policy itself, but we have taken the broad approach throughout this IGC that actually we would welcome majority voting on appointments, otherwise you end up with a situation in which one country can use an appointment as a pressure point in relation to something which is nothing to do with the appointment. Javier Solano, it should be remembered, was appointed by unanimous consensus without any real competition to him because he was such an outstanding and first class candidate. He is technically the Secretary of the Council of the General Affairs Council and it would be inconsistent for us to press for appointments elsewhere to be settled by majority voting whilst exempting ourselves at the General Affairs Council. 52. It is proposed that Article 13 of the Treaty establishing the Community is amended to allow in areas of combating discrimination based on sex, racial or ethnic origin, et cetera, that "where the Council adopts Community incentive measures to support action by the Member States ...", et cetera, it can do so by QMV. Is this not opening up a whole new area to the competence of the Commission? Does that concern the Government or are you happy with this? (Mr Cook) Can I perhaps say for preface that this of course is a very long shopping list produced by the Presidency. Out of the 50 I think there are only a couple in the entire 50 which have nobody opposing them. All the others do have at least one, and mostly more than one, country opposing them. As to the UK, the majority of these we would not regard as acceptable and you are referring to one of those. The mere fact the Presidency publishes this shopping list does not mean that we intend to go into the shop and buy the goods. 53. I understand that but if I assumed you were going to subscribe to these, there would be no point in putting the questions. The third point which I hope you can deal with shortly is that it is proposed that Article 191 of the Treaty should be amended to allow the Council by QMV to lay down regulations governing political parties and rules regarding their funding. This does seem to be an area which touches on both of us, though not in quite the same way. (Mr Cook) Could you repeat which number it was? 54. Article 191. It is proposed it deals with political parties, which it says are a good thing, and it goes on that the amendment is that the Council acting by QMV should lay down regulations governing political parties in Europe and in particular rules regarding their funding. (Mr Cook) You will be intrigued to hear that it is missing from the Foreign Office list, by which I take it that we are not wildly enthusiastic about it. Can I say a word on this though because there will be statutory parties in the IGC and we are supporting it because we think it would be more helpful and more transparent if the European-wide parties - the EPP for the Conservative Party and the PS for the Labour Party - were separately funded in their own right rather than, as at present funded, as a by-blow of the parties in Parliament. So there will be such a statute agreed at Nice. I personally am not aware of having given a view whether or not it should be QMV. 55. Can I take it then that you would support pan-European parties operating in relation to the European parliamentary elections and it would not relate to your party or mine operating in European elections within the United Kingdom? (Mr Cook) I am not sure I would narrow the definition down solely to participation in European parliamentary elections, but it is the case that I think all three parties represented around this table have sister parties and umbrella groups for their sister parties throughout the European Union, and in this the Conservative Party is no different from us. The EPPE has always supported exactly the same requests for a party statute that we have, indeed the letter to the Commission was signed jointly by the leaders of all the different parties. But this is not the creation of a European party to which individual citizens would subscribe, what this is is the umbrella group for the different national parties. 56. Could I ask you to deal with the two areas which perhaps do fall within the area you said the Government would not allow QMV on, one is social security and the other is tax? There are different drafts of the tax proposal around but one of them does talk about measures to co-ordinate the provisions of Member States to prevent discrimination and double taxation; measures to prevent fraud and tax evasion; the exchange of information. These go really quite a long way and it does bring within the unanimity provision of Article 93 provisions relating to direct taxation. I know that is unanimity and not QMV but it is the first time, as far as I know, that direct taxation has been sought to be brought within Community competence, and is that not the thin edge of the wedge? I wonder if you could deal with both of those issues, direct taxation and QMV for indirect taxation? (Mr Cook) First of all, as a general principle, we are taking the position in this IGC that we are not in favour of the extension of Commission competence and therefore, although I have not discussed that specific point recently with my Treasury colleagues, I would be very surprised if we did not take a position against direct taxation becoming part of the competence. I can write to the Committee to clarify that. On the issue of the procedure of decision-making, we will be very robust in insisting on unanimity on all tax matters, embracing also the matter of tax fraud which, as you rightly say, are rather widely drawn, and we would not wish to create a situation in which with ingenuity it could be used to affect the tax position of any national country. 57. The final question I want to ask is about social security where it is proposed to extend qualified majority voting to Article 42, to the co-ordination of national laws in the field of social security. It goes on in other areas in the current draft, as it did previously, to say that although in Article 251 it should be by unanimity - it is not proposing as I understand it this be done by QMV - it should extend to the co-ordination of national laws. Does this fall within the Government's policy of not acceding to QMV in areas of social security? (Mr Cook) I am happy to say, yes. It is one of the five areas we identified at the beginning of the proceedings where we would not believe that the application of majority voting would be appropriate. Lest I be thought to be too negative, perhaps I can end by saying, for balance, that actually the number of areas where we have strong views in those 50 are not actually much out of line with those of other countries, indeed France has a broadly similar number of objections, which complicates their role in the presidency. Mr Chidgey 58. Foreign Secretary, I would like to ask you a couple of questions about the mechanics of this process, the re-weighting. Then I have a question about the transparency of the operations of the Council of Ministers in this regard. It has been reported that although a final decision on weighting will be left to EU leaders in Nice, most delegations have agreed in principle that future decisions taken by QMV should reflect the support of at least half the EU's population and half its Member States, and that officials will now work to prepare options along these lines. I am sure you are aware that on the decisions where QMV currently applies a threshold of 71 per cent is required to reach agreement, and over time as the European Union has expanded the percentage of population needed to reach that threshold has dropped from around 70 per cent when it was founded to around 58 per cent today and we are now looking at a scenario that with 28 Member States that could fall to below 50 per cent, so consequently it would appear that officials are working along the lines of preserving a 50 per cent minimum. Is the Government happy with that or does the Government seek to get closer to the original concept of a simple majority? (Mr Cook) That is not our starting point. Our starting point is that there has to be a substantial simple re-weighting of the votes of the larger countries and that there has to be a clearer approximation between the votes in the Council and the populations of the countries. Nobody is asking that it should be pro rata. That would be not to pay sufficient attention to the status of the Member States as Member States. We need to get the balance right. 59. Are you in favour of double majority? (Mr Cook) No. We have never ruled out double majority but that is also not our starting point because if you go for the double majority then that will have the effect on most models presented of reducing the level of increasing simple re-weighting. In other words, we are not willing to trade off the increase in Britain's vote in exchange for a dual voting system which will also count populations. Of course, if we could get a satisfactory outcome on the simple re-weighting of our vote then we would not have any national reason for opposing dual majority, but we are not going to lobby for that in circumstances where it might blunt our number one priority which is to get an increase in our vote. 60. My second question is in the context of core beliefs and objectives of institutional reform. You probably recall, Foreign Secretary, that earlier this year a joint paper was issued in which the Government agreed that "we" (as the Government) "also believe that to be properly accountable the Council of Ministers must be open and transparent. We therefore favour publication of all votes when the Council of Ministers is acting in a legislative capacity". My question to you is, when can we expect to see signs of the Government following that agreement? (Mr Cook) If you mean honouring it, pressing for it, we continue to do so. If by honouring it you mean achieving agreement to it, I have to say we are not yet there and there are quite a number of other countries who do not necessarily share our commitment. 61. Would you agree, if you could get the agreement with the other countries, that when the Council is acting as legislature, when those meetings are held they should be held in public and there should be full reports on the proceedings of those meetings and that votes should be published and that within a fixed deadline ministers should actually be obliged to explain how they intend to implement domestically the legislation that has been agreed in the Council? (Mr Cook) I totally agree with the last point and that of course is a matter for national parliaments. Secondly, if we could secure our objective, which is a more transparent recording of votes and the publication of those votes, that then would go some way to meeting your concern. Opening up the meetings to being held in public would make it often, I am afraid, more difficult to secure the agreement. In the course of the end game there is inevitably a requirement to compromise which might be more difficult if it were taking place under the public gaze as it is actually done. Here there is a very difficult task to be made in getting the right balance between transparency and the need to get the decisions taken. At the moment we do not think we have made sufficient progress on transparency to press for it. Sir John Stanley 62. Foreign Secretary, in one of your replies to Mr Maples I thought you gave the Committee the impression that the Government's commitment to preserving unanimity was in five areas when, as I understand the Government's position, it is in fact in six. In the Government's response to the Committee's report, Developments at the Intergovernmental Conference 2000, you say, "The Government has made it clear that it will not agree to QMV for tax, social security, treaty change, own resources, border controls and defence". (Mr Cook) You are quite right. I had forgotten about the own resources. Those are the ones we listed both in the White Paper and in my statement to the House, and I am happy to correct that one. 63. Thank you. Could you therefore confirm to the Committee that in each of those six areas the British Government will if necessary use its right of veto at Nice to ensure that unanimity is preserved in those six areas? (Mr Cook) We are not going to agree to majority voting in those areas. Can I just say a word about language? In the context of what will be a very protracted discussion in negotiation in Nice, in which France has set aside two whole days for this and suggested that we should be ready for three whole days if necessary to get to the end of it, it will not actually be the case that at any point the President will press a buzzer and ask who is going to cast a veto. It does not operate like that. We will be making it plain that we cannot agree and the discussion will continue until we can move on. 64. In relation to the remaining items of the 50 or so that have been referred to you previously said to the Committee, and it is again reflected in your response to the Committee's report, that "but in all other areas" - that is, in all the other areas over and above the six we have referred to - "we support the case by case approach adopted by the Portuguese Presidency". Am I right therefore in thinking that the case by case approach will be adopted in relation to all the remaining areas and that the British Government holds itself in principle ready to concede QMV in any of the remaining areas apart from the six to which we have referred? (Mr Cook) No, that would be false. The six that we identified then are those where we established bottom lines on which we did not think that any majority voting would be appropriate since they are so central to the prerogatives and decisions of national governments and their parliaments. But that does not mean that you can adopt what would be a false corollary, that anything outside those areas we are willing to sign up to. As I said earlier, we have our reservations about the majority of those listed there and many of them go well into very different fields from the ones that we quite properly listed as our six bottom lines. 65. That being the case, Foreign Secretary, could I ask you - and I certainly wholly understand the importance of any government going into an international negotiation quite properly wishing to hold its full negotiating position to itself - whether the British Government intend, prior to Nice to indicate which of the other areas outside the six but within the 50 or so which are possibly up for QMV it has already decided it is not prepared to see move from unanimity to QMV, for example, in the forthcoming debate this week? (Mr Cook) I am not sure that in my speech as I developed my speech in the House I went through each of the 50 different articles, but we regularly exchange with our partners our views on each of those. We have a number of discussions still coming up in which we will repeat our position on those. You did, quite generously and correctly, Sir John, touch on the difficulty in going too public and too precise in public on this. This is a negotiation and it is not, if I can just make this point of correction, a case that on those where we are going to agree to qualified majority voting we are ready to concede majority voting. In some of them we ourselves are pressing for majority voting, for instance, on the question of freedom of movement of professionals, recognition of professional qualifications. A number of British employee organisations are pressing us to secure this because they see it as a way of freeing up access to European employment for their members. In the end again there will be some trading off in which we will actually want countries to accede to those which are in our interests and for which we are lobbying on our behalf and in which we will have to consider what flexibility may be necessary on our side, but we are not going to cross that road, nor are we going to agree to the majority of these 50. Mr Rowlands 66. Just to reinforce Mr Maples's point about revised Article 42 on social security, interestingly, in the way it is headed, "Measures required in the field of social security to provide freedom of movement", so their attempt is actually to introduce these almost as part and parcel of making the single market work. May I just draw attention not only to the article but to the huge protocols attached to it which list almost every single benefit that would as it were fall within some kind of new revised Article 42. I assume because you have already said that you are opposed to this proposition fundamentally. Do you have substantial support amongst other Member States for opposing this measure? (Mr Cook) We have understanding. We have not necessarily got the same degree of support on, say, social security as we have on taxation in which there are quite a number of countries who share our apprehensions for unanimity on taxation. Our concern about social security is that if that became subject to majority voting there is the danger that it could potentially trigger significant additional sums on spending. Since that is potentially the case it is appropriate that it should be done by unanimity and not by majority voting. 67. What these revised articles and the protocols are after is, I think, a whole new area of harmonisation on benefits. How do you feel about that because that is what this is really behind all this? (Mr Cook) In fairness to the Commission, and this in no way detracts from what I have just said, that we are not going to agree to majority voting, what we are dealing with here, which is not a new article; this is an existing article of the Treaty, in the exercise with this 50 is not the creation of new competencies and new articles but identifying some articles within the Treaty which are currently done on unanimity and could potentially move to majority voting. We do not think that this is one that is appropriate to do that, but, to be fair to the Commission and the Presidency, they are not proposing a new article that is not already there. 68. I think the logical consequence of what has been drafted before us is a very considerable extension of attempts to harmonise benefits right across Europe in the name of the single market. (Mr Cook) I do not dispute your point about majority voting and unanimity. We believe that that should be retained on a unanimity basis. It is perhaps worth putting on record that actually the great majority of decisions that are taken within the Council of Ministers are taken on the basis of majority voting. Our analysis of the past three years shows that 80 per cent of all decisions taken by Council ministers were taken by majority voting, not by unanimity. It is different if you look at the articles and the Treaty in which you will find that there is a much higher proportion than 20 per cent of the articles that are based on unanimity but they are mainly articles that are rarely used, for instance, own resources only comes round every six or seven years. It is already the case that effectively for decision making within the Council of Ministers the rule is majority voting. Indeed, as I pointed out to the House in the last debate, Britain actually does rather well out of that. We are defeated on majority voting less often than France or Germany or the Netherlands or Spain. 69. But at least you can say that it is not going to happen? (Mr Cook) No. Ms Abbott 70. Foreign Secretary, I want to ask you two questions about the size of the Commission and then move on to something which I do not think will come up in Nice but is a Commission proposal. It is nothing about arms initiatives but is a trade proposal. On the size of the Commission, according to press reports discussions on the size of the Commission are focusing on a system where there will be first one commissioner for Member States and then shift to a cap on the size of the Commission with a system of rotation to the Member States. Can you confirm for me whether you would support a system under which the United Kingdom will not at all times be able to appoint a commissioner? (Mr Cook) It is very difficult to be precise about what may come out of Nice. My own view is that if the five larger countries give up their second commissioner we have enough room to accommodate any probable or likely first wave of enlargement without any significant increase in the Commission. The first wave is unlikely to be more than about half a dozen. Therefore, the likely outcome of Nice in terms of Treaty amendment would be for every country to have one commissioner. Britain though will only agree to that if we get the other part of that package which is a substantial increase in the simple re-weighting of our vote in the Council to compensate for the agreement to give up our first commissioner. In the longer term, if all 12 countries of the applicant countries become members of the European Union, we will have to look very seriously and very imaginatively at how we try and accommodate those additional members with the current requirement that every country has one Commissioner or, at present, two Commissioners. Plainly, it will be very difficult to make the Commission work coherently if it ends up with 26 or 27 Commissioners, but I doubt that that is an issue that will be resolved at Nice. It needs to be but some way down the track. 71. Something that has foreign policy implications is the EBA, Everything But Arms, initiative which has been put forward by Commissioner Lammy, the EU Trade Commissioner, and is now a formal Commission proposal. That would give the 48 least developed countries tariff and quota free access to European markets. What it would do is completely capsize the economies of the ACP countries that currently have protected access for sugar, bananas, rum and rice. The Caribbean countries are very concerned about this. They are concerned that in respect of the least developed countries you will have a shattering effect on the economies of countries which are only slightly more prosperous and longstanding than this country. It appears the Commission wants to force this through by December and the Caricom countries are in uproar about this. (Mr Cook) That is not a matter for the General Affairs Council. 72. I am aware of that. (Mr Darroch) I think you have described the proposal of Commissioner Lammy accurately. There is indeed a proposal to offer wide trade concessions to the least developed countries. In general, as you suggest, this is something that, as a country that believes in a liberal trade agenda, we support. It does have implications for those countries just outside the least developed which have to be worked through. It has only just come out as a proposal. It needs to be discussed in the working group at technical level and then it will come up to the Council. We shall try to preserve the best features of the proposal while protecting the interests of the Caribbean countries who are just outside that group, but we have not worked through the detail of this yet. 73. What is the timescale for implementation? The Caribbean countries think it is going to start in December. (Mr Darroch) The Commission has an ambitious timescale in mind but it needs to get agreement from the Council on it and whether that can be achieved by December must be open to question. 74. I am sure it seems a relatively small matter to you but for the people of the Caribbean ---- (Mr Cook) It is not small at all. The interests of the ATP countries are very important, particularly important to Britain and France as the two previous countries with most contact with them. It is a very major issue. It is not one coming before the GAC or before Nice and I am unsighted on this but I can undertake to write to the Committee more fully about it. 75. What the Caricom countries are saying is obviously this has been discussed with them and it is the long term thrust of EU policy opening up to the markets but they were promised that there would be full impact studies of the effect on commodities like bananas and sugar. It seems for political reasons all this has been short circuited and there is an attempt to ram it through by December. This is a DTI thing really but I am flagging up the foreign policy implications and the concern of the Caribbean countries. (Mr Cook) The Commission is perfectly entitled to set whatever ambitious agenda and timetable it wishes. That does not necessarily require the Council to give a positive or a negative answer in that timetable. Personally, from what I have heard, intuitively I would be surprised if they got agreement from any Council by December, but I can write and clarify that. (Mr Darroch) We are aware of the Caribbean countries' concern. They have talked to our missions and we will take their views into account. Chairman 76. The last major chunk is enlargement and the dates of enlargement. You argued in the past that to set dates might reduce the pressure on certain countries to do well in terms of incorporation of the acquis. Now it is said that the Swedish presidency might seek over the first six months of next year to set dates presumably because of progress in terms of the chapters. What is the current HMG view on setting dates? (Mr Cook) I set this out for the first time in July when I spoke in Budapest and made a major speech on our approach to enlargement. In that speech, I did call for target dates and said we believed the time was right when we should consider target dates for the candidates. It is not a view shared by the current presidency, the French government, and therefore we have never thought it a realistic prospect for Nice, but I think it is quite possible that it will be set at the Gothenberg Summit which will come at the end of the Swedish presidency. Because of its traditional and geographic connection with the Baltic states, Sweden is very forward on the enlargement issue. I would hope that we can get consensus by then for target dates for the applicant countries. One of the reasons why we can be hopeful on that front is that the recent report by the Commission on the enlargement is very positive and does show that, in the majority of cases, good progress is being made by the applicant countries. Therefore, by the middle of next year, it should be possible for a number of them to set a target date by when we could complete negotiations. Of course, the completion of the negotiations is only then the start of the ratification process, but the Committee may be aware that the Prime Minister, in his Warsaw speech, did say that we wanted the new first members to join us in time for the next European Parliament elections which would be in 2004. For completion of the negotiations and completion of ratification, that is the basis for deliverable targets. Mr Mackinlay 77. You have clarified something I was going to ask you. Where the Prime Minister said that he hoped the principal applicant countries would be in by the European elections 2004, I had interpreted that as almost like them having the parliamentary elections and being able to sit in the Parliament in advance of membership. That was his target date, was it, for membership? (Mr Cook) They could become members in advance of polling day for the European Parliament but if, say, we get half a dozen members joining ad hoc addition to the European Parliament will be tricky because there will have to be a redistribution of seats between the nations. 78. I am sorry to labour this. It is probably not the most important thing in the world but the way I interpreted it was that he was saying that accession might be 2005 but they will be able to participate in the elections and take seats. (Mr Cook) I am not sure that that would be legally possible. For them to legally take part in the elections, they would have to be members of the Union by then. Indeed, they would wish to be and it would be our objective too. We would not, certainly at this early stage, countenance setting a later date. Chairman 79. If the ratification process were far advanced, you would not be against not holding up countries having shadow elections prior to formal accession? (Mr Cook) Speaking for the United Kingdom, we would be certainly open to such a creative solution but whether that is legally possible I would not like to say offhand. (Mr Jones Parry) In the case of Spain and Portugal, both had members of the European Parliament under special arrangements for the general election which then followed their accession. (Mr Cook) Am I not right in saying that that did not require a redistribution of seats? A bolt on is one thing, but ---- Mr Mackinlay 80. What is clear this afternoon is that it is not clear exactly what the Prime Minister had in mind on this narrow point. (Mr Cook) I think it is quite clear what the Prime Minister had in mind which is that they should be full members of the European Union in time to take full part in the European Parliament elections in 2004. I would not want to get into speculating about that timetable not being met, because it lessens the pressure on our partners, but we can investigate the legal position. Chairman 81. Could you give us a note on that, please? (Mr Cook) Of course. Sir John Stanley 82. Foreign Secretary, you said this afternoon that you think both entry and ratification for the six applicants in the first wave are a realistic target for 2004. Would you agree that almost all the attention in relation to the next wave of enlargement, with particular reference to the six countries that are coming in, not least Poland and Hungary, has been very much focused on the institutional changes which are necessary to accommodate them, but there has been grossly insufficient attention paid to the financial, particularly CAP, reform changes which are required? Would you agree that it is now going to be imperative that France and Germany in particular seriously address the need to deal with the financial implications and the CAP reform implications of entry, particularly of Poland and Hungary, if there is going to be any sort of prospect of achieving the 2004 date which you said this afternoon you think is realistic? (Mr Cook) First of all, can I make an entry in the margin? It is true I used the phrase "half a dozen" which is slightly elastic, but I would not want to be pinned down to that being precisely those who started the process of accession in the first wave because we have always been clear that this is not a block process. In other words, those six do not necessarily come in as a block. Equally, those who are behind them have the opportunity of catching up. This is quite relevant since Malta, which started last, has made the best progress in view of its previous work and has pretty well caught up on the first six. It is not necessarily those who are in the first wave for accession who may be in the first wave for membership. The answer to your substantive question is no. That was the whole point of Berlin. Berlin set a financial perspective for seven years and set a financial perspective in the expectation that new members would be coming into the European Union in the course of those seven years. It created sufficient room within the financial perspective to accommodate new members towards the end. That financial perspective comes in in 2006 and there will be renegotiation of that financial perspective starting effectively in 2004. That enlargement will coincide with the debate about the next financial perspective in the course of which we would certainly hope to see further reform of the Common Agricultural Policy and would ourselves expect the WTO to be applying pressure for that objective. 83. This afternoon you are saying something which has come as quite a surprise to me because we have taken this very precise issue previously in the Committee in believing that the first wave of applicants was being treated as a block and would come in all together. You are now saying to us that possibly the more difficult countries in financial terms -- I suppose Poland would particularly stick out -- might find that their applications are going to be deferred because of the difficulties that France and Germany in particular have with accommodating their agricultural economy against the existing subsidy system for the CAP. (Mr Cook) I do not honestly see how you can draw the last inference from what I said, because what I said was at Berlin all the countries of the European Union, including France and including Germany which was in the chair of the Berlin Summit, agreed to a financial perspective spanning for the next six years which was carved out specifically in order to provide room for enlargement and on the assumption that enlargement would take place in the course of that financial perspective. That is not a fair inference from what I said. I am surprised if it comes as news to the Committee that we are not approaching this as a block process. We have said that right from the start in 1998 when accession was launched under the British presidency. The principle of differentiation is very important to the applicant countries because they want to know that they will get in on the merits of their case, on the work that they have done to prepare for membership and are not necessarily kept waiting whilst others catch up. Sir David Madel 84. A recent Commission report referred to the slow progress of Polish agricultural reform. Am I right in thinking that we are not prepared to overlook that in our desire to get Poland in and, if agricultural reform in Poland proceeds at a slow pace, there will be inevitable delay? (Mr Cook) There is no guarantee that any one country will get in in the first place, and all of them will have to meet the criteria for membership - the labour criteria, and the adoption of the acquis in which agriculture is part. That said, we should bear in mind that one of the difficult issues yet to be resolved in negotiation with the applicant countries is the question of direct payment to farmers. The Berlin financial perspective assumes that there will be no direct payment to farmers in the applicant countries as they became members. In some ways that would be a helpful outcome because what we would not wish to create is a new constituency of support for direct payment within the European Union which would be inconsistent with our own wish for reform. This is not something which for obvious reasons is attractive to the applicant countries that will be the centre of much negotiation over the next year. Chairman 85. Nor would it be consistent with broad Community principles of fairness and treating all Members equally? (Mr Cook) It is indeed a point that is vigorously put out by the applicant countries but, at the same time, it does climb with the need to achieve reform and reduce spending. Sir David Madel 86. Of existing members of the EU probably the country keenest for Poland to join is Germany, for understandable reasons. Do you get the impression that Germany is not prepared to overlook the slow pace of the Polish agricultural reform? (Mr Cook) No. Indeed, as I said earlier, Britain is one of the less protectionist members, and in some ways we are more supportive than those countries which are nearer. Mr Mackinlay 87. If I can say to you, Foreign Secretary, my recollection of the British Government's position is somewhere between yours and John Stanley's - it is a nuance. (Mr Cook) A very interesting correlation. 88. If it is just left like this, this afternoon, I think it could negate all the very positive vibes which came from the Prime Minister's Warsaw speech, if I might say so. Apart from clarity here, I think I should invite you - surely the position of the British Government is saying, of course, ultimately there is no guarantee that countries coming to Visigrad, Estonia and Slovenia, come in en bloc; but as a matter of policy and as a matter of objective and target that is the intention that we should reach that - because to bring other countries in (particularly Hungary and the Czech Republic) and for Poland not to be admitted would have profound other consequences either within the 40 million people of Poland, which is bigger than all the other countries put together, and be an enormous loss not just to them but to the rest of the European Union. It seems to me that what you personally have uttered in this Committee is the objective that they should come in together. It is fair but it is not an absolute guarantee, but if you are departing from that this afternoon then that is a departure which should be noted? (Mr Cook) No, it is no departure. I think it is very important we are quite clear about this. It is not only one country that may be listening to what we are saying here but also the others, and they all want to be treated on their merits and not as members of a bloc. Malta wishes the opportunity to catch up. 89. Malta is about the size of Wandsworth. Let us put things into perspective. (Mr Cook) I am not sure I would find it helpful to endorse that observation. Malta is a sovereign independent state which is entitled --- Chairman 90. Under clear democracy. (Mr Cook) ----- to have its application judged on its merits. I do not think we should diminish Malta's case. If I can go back to where I was - Malta would wish the right to catch up. We have always promised that there was a fast lane, as we said, in which those who were further behind could catch up. We would want to make sure, for instance, that the other Baltic States if they made the progress could catch up with Estonia, but that is down to them. Let me stress, Chairman, I have said nothing in the course of this hearing to suggest that we do not want Poland to be a member and we do not want Poland to be a member in the first wave. All I have said, and this has been our policy right from the start, is that each country will be judged on its merits and on the progress it has made. Mr Mackinlay: It is a different nuance. Chairman: We have several blocs I would at least like to touch on - enhanced co-operation first with Mr Rowlands and Mr Maples. Mr Rowlands 91. Foreign Secretary, when you last came before us on these issues you and the Department's position was why do we have to build a new provision for enhanced co-operation. The provision had been made and had not been used at all previously. Has there been an example of enhanced co- operation under the existing arrangements? (Mr Cook) No. 92. We nevertheless are faced with the quite considerable pressure to have new provisions for enhanced co-operation which include, among other things, no veto or emergency brake on enhanced co-operation for the first pillar. Do we support that? How are we going to handle that issue? (Mr Cook) The present situation is satisfactory at this point. It does provide that if a Member State objects to enhanced co-operation then it should be referred to the European Council before a decision is taken for enhanced co-operation to proceed, and we are not uncomfortable with that as an outcome. 93. On the first pillar we would accept possibly qualified majority voting to proceed? (Mr Cook) No, that is separate. What it does provide for is that if a member country objects it has to go to the full summit meeting before it would proceed. Also that has to be read in conjunction with the conditions for enhanced co-operation. For instance, we are very keen and are making good progress in securing strong language that makes clear that enhanced co-operation cannot disrupt the Single Market. To be perfectly honest with the Committee, I do not think that leaves much scope for enhanced co- operation within the first pillar. 94. Secondly, the concept of a veto has been retained for the second and third pillars, although our Government White Paper envisaged that there could be some kind of enhanced co-operation without a veto on the issue of security and defence. Is that right? (Mr Cook) No, our position is that any decision to adopt a policy on the Common Foreign and Security Policy has to be unanimous. However, we have always recognised that, having adopted policy, the issue of implementation is one where a group of countries may wish to proceed and others may not want to take part. After all, if we are realistic the capacity of the Member States to project foreign influence in different parts of the world varies depending on their history, depending on their scale and depending on their current trading pattern. It does make sense to have the possibility of a number of countries going ahead without everybody having to take part; but we would retain unanimity for that initial decision in adopting policy. 95. Can you give us an illustration of what would be the subject of enhanced co-operation if these provisions went through under pillar one? (Mr Cook) I would be reluctant to attempt that, Chairman. We are content to listen to our partners concerns about this. If, for instance, in the case of implementation of Common Foreign and Security Policy there was to be a smaller group going ahead, it may well be us that go ahead. I personally would hesitate to put forward an example. 96. Because it is very difficult to find one, as we have not had one already? (Mr Cook) You are perfectly correct to point out that we have not had one - indeed, I have made this observation myself. Also, once you deduct issues like the Single Market there is limited room for this to apply. I do think it should be born in mind that those who are arguing for this - for instance, particularly the Benelux countries - are not thinking of the present European Union (and remember this has all been done in the context of enlargement); they foresee an outcome in which there may be a European Union of 26 Member States. To take one area which they themselves do refer to, the issue of the environment in, say, the Netherlands and Denmark, there is extremely high public pressure for high standards of environmental protection. It may not necessarily be the case that the applicant countries, coming as they do from a much lower GDP base, would necessarily be capable or wish to adopt such high standards in environment and, therefore, they argue there may be a occasions in the future when a number of countries may wish to proceed with enhanced co-operation on environmental issues which not everybody might take part in. That then brings you to a debate of whether a group of countries can do so without it distorting the Single Market, for instance, and could not apply environmental regulations on trade. I understand the point they are making - it is a valid one. 97. If I could summarise the position we are going to take - these revised draft proposals we would go along with them or would we dig our heels in? (Mr Cook) We do not see any reason to object to what is done and on the table which appears to fully protect our interests and, indeed, to take the example of the environment if it was to proceed, we may wish to be part of that inner group. Mr Maples 98. There have been some other changes though - it talks about one of the purposes of enhanced co-operation being to reinforce the process of integration, and what used to be a majority of members who had to want to participate and it is now eight, which is the current majority but it might not be in the future. There is a provision in the Amsterdam Treaty that any Member who was not part of the initial group could join later. That has now changed as well. It seems to me this is a very different proposal, substantially different, and particularly if countries that do not want to join have given up their veto. (Mr Cook) First of all, we would not accept an exclusive form of enhanced co-operation. We would wish to insist on the right of any member having the right to take part in any subsequent state. On that point, I can assure you we would still insist very much on what was part of the architecture of the original proposal. On the threshold of enhanced co- operation, I personally do not have a difficulty with eight. Eight is a very substantial number, whether or not it is the majority of a European Union of 20 or whether it is only a majority of a European Union of 15, and I would not necessarily wish to stand in the way of eight members going ahead, provided what they are going ahead with does not damage our interests. It may well be in the case of the environment we might ourselves want to be part of that eight. 99. Finally on the CFSP, I understood you to say that we would not be prepared to allow any enhanced co-operation in this area to go ahead unless there was a veto from those who do not want to participate in stopping it. That is not the way the current draft works because it refers to the use of Article 23(2) of the Treaty of the European Union and refers to bits of that which do not actually include the right of a veto. Are you saying quite categorically we do not allow enhanced co-operation in the Common Foreign and Security Policy area without a veto on behalf of those countries that do not want to join, if they stated they were of a crucial national interest? (Mr Cook) What I was stating was that we do not see the case for majority voting on the adoption of a policy. We have been willing to look at the case of majority voting on enhanced co-operation on the implementation of policy. It may well be right that the current draft does not fully reflect our negotiating position but then that is not an agreed text. Sir David Madel 100. Foreign Secretary, do we want Nice to fix the date of the next IGC? If we do, do we want that date to be 2004? (Mr Cook) Our position is that we believe that the first new members should be present from the start of the next IGC and take part in the IGC. We have already had an extensive debate as to whether or not 2004 is a realistic target date for the first new members. I think it is difficult to be precise about when a future IGC may actually get underway. At this present point we have not taken a view on that. The issue of principle I think is very important, and those who pressed for an IGC to commence in 2004 we would want to see make a commitment that they will themselves work for enlargement to take place before 2004. These are two interlocking issues, both of which are subject to wide margins of judgment as to whether or not 2004 is the right year, and at this point I do not want to commit myself. Chairman: Foreign Secretary, a relaxing three days at Nice it will not be. I would like to thank you and your colleagues.