WEDNESDAY 7 JUNE 2000 _________ Members present: Mr Donald Anderson, in the Chair Ms Diane Abbott Mr David Chidgey Sir Peter Emery Dr Norman A Godman Mr Andrew Mackinlay Sir David Madel Mr Ted Rowlands Sir John Stanley _________ MEMORANDUM SUBMITTED BY THE FOREIGN AND COMMONWEALTH OFFICE EXAMINATION OF WITNESSES THE RT HON ROBIN COOK, a Member of the House, Secretary of State for Foreign and Commonwealth Affairs, MR EMYR JONES PARRY CMG, Political Director, MR NIGEL SHEINWALD, Director, European Union, Foreign and Commonwealth Office, examined. Chairman 124. Good morning, Foreign Secretary. I know that this is going to be a busy day for you, as it is for the Committee. I would like to welcome you and your two colleagues, Mr Emyr Jones Parry, Political Director at the Foreign Office, and Mr Nigel Sheinwald, who is a Director for the European Union, shortly to be translated to Brussels as the United Kingdom Permanent Representative to the Council. We congratulate you on that. Can I say this, that we understand you will be leaving for Sierra Leone later ---- (Mr Cook) Immediately after this hearing. 125. So we have timetabled this for 10 o'clock until 12. We have a very busy agenda. May I also say that the Committee, at 12, will be having the press launch of our report on Kosovo which we believe is a significant report and, therefore, we will be, virtually immediately, going into the press conference relating to our report. (Mr Cook) I, of course, look forward to studying the report on Kosovo when it comes out. Can I thank the Committee for agreeing to shift the hearing to this morning. I am advised that if I do not land in Sierra Leone in daylight I have to transfer to HMS OCEAN by dinghy rather than by helicopter, and I am anxious to land in daylight. Sir Peter Emery: Even the opposition would not wish that on you! Chairman 126. Foreign Secretary, the very important Council at Feira. We know that much of the work is, in effect, not related to one council but is, essentially, work in progress, whether it be the size of Europe and innovation, and science, whether it be the social context deriving from earlier conferences, or justice and home affairs. I would like to begin on the IGC and enlargement, because we understand that a progress report will be given by the Portuguese Presidency at Feira on that. Of course, the progress report on the IGC will eventually point to the date timetable for enlargement since the whole institutional changes are an essential pre-requisite to enlargement. On this, do you recognise that some applicant countries are being frustrated at the slippage in the timetable? Poland and Hungary seem to have promised their electorates that they would aim to complete negotiations by, say, the end of 2001, then the ratification process, and they would hope to be members by the end of 2003. Now there is talk, in part because of the Polish question, of slippage until 2005. We understand that Commissioner Verheugen was talking of a timetable in the autumn but he may have been slapped down by the Council of Ministers on that. So may I put this to you: first of all, is it your judgment that there is inevitably slippage from the original expected date of 2003 or thereabouts for the first wave - perhaps, the Luxembourg wave - of candidate countries? (Mr Cook) Can I firstly say that the policy of the British Government, and I think this is the consensus when one compares it with the European consensus across all parties, is that we must maintain momentum in the enlargement process. It is fair to say that within the European Union Britain has been the foremost advocate of rapid progress in enlargement and the need to take the decisions that are necessary to prepare Europe for enlargement. At the same time, even Britain has been careful not to, at any point, announce specific deadlines on dates, precisely because, as we have always said, the rate will be determined on the pace of reform in the European Union and, also, amongst the applicant countries themselves. That is what will decide the date, not any arrival of a day in Canada. I would not accept that there has been any slippage in any realistic timetable. For instance, on the question of the intergovernmental conference, there has been intense discussion. We have not yet reached decisions but decisions were anticipated at the end of the year. It remains our judgment that it is possible to get the decisions at the end of the year, if there is a willingness to face up to the decisions that are required. So I do not see slippage in the IGC's timetable. What Commissioner Verheugen said at the end of last year was that the objective should be to prepare the European Union to be ready to receive new members in 2002, and by that he meant that we should have completed our own internal reform process. If we complete the IGC at the December Nice European Council it is entirely credible that we could complete the ratification process in 2002. That, of course, does not imply a judgment as to whether enlargement can then proceed because that will require the candidate countries to bring their laws and their economic practices into line with European standards. We have made good progress on that. We have managed to get through most of the chapters of the European Union acquis with the first wave of applicant countries. I would shade in the margin, of course, that one of the reasons we have secured that is because, I think rightly, the more difficult chapters were left to the end so we could build up momentum to help carry us through the larger hurdles. There will be some difficult decisions reached then, but at the moment I think we have made as realistic progress as was possible. There has been, I share this with the Committee, some concern among the applicant countries, not I think about any real complaint about the timetable but about the tone of some of the comments from parts of Europe over recent months. I think they have found it helpful to have Britain constantly saying we must make rapid progress on enlargement and that those coming in must be full members of the European Union. 127. Provision is made in the six-year budget as from 2003 for new applicants. That may be some target date. (Mr Cook) I am told that there is provision made in 2002 but, let us be clear, that is very much contingency planning. At Berlin the European Union did adopt a financial perspective up to 2006 which did involve quite substantial changes to the budget lines in order to create the room for enlargement. It is well-known Britain would have liked to have gone further in relation to the agricultural spend, but we made good progress and some painful decisions were taken. 128. Certainly some of us have noticed a degree of frustration on the part of the candidate countries. If, Foreign Secretary, you agree that the process of enlargement is irreversible, can one not see some way of giving a clear signal to the candidate countries that they will be accepted by, say, making progress where progress can be made and allowing them already to be part, say, of the CFSP process, where I understand already the dossier on CFSP has already been closed in respect of a number of countries - I think in respect of Bulgaria, as it happens, was it last week. Since this is not something which impacts on the budget as such, would it not be a useful signal to allow those candidate countries to be accepted as part of the CFSP? (Mr Cook) In terms of practical execution of the CSFP I think it is fair to say, to all intents and purposes, they are part of it. For instance, if we adopt sanctions as a European Union we expect associate members also to apply those sanctions, and in relation to the Serbian conflict in Kosovo most of the associated countries were quite diligent during the period of the conflict in applying the measures we took and have been supportive. It is difficult to foresee us getting agreement to a situation in which associate countries sat with members of the European Union and participated in decisions of the European Union while they, themselves, are not members of the European Union. We have regular discussions with them and, indeed, they will all be coming to Brussels next week for discussions with the General Affairs Council of Foreign Ministers, and I think it is fair to say that there is no major difference in our international perspective. We would certainly wish them and encourage them to carry out with us a foreign policy, but it is difficult to see them as being participating members whilst not members of the European Union. 129. Although it is a relatively discrete area with limited financial implications. (Mr Cook) The financial implications of the CSFP is a matter of some controversy at the moment, but it is not that discrete. For instance, let us take the case of Montenegro. The General Affairs Council adopted the position that we really do have to show solidarity in Montenegro, and we also had to defeat Milosevic's attempt to undermine the economy of Montenegro. This has involved us, over a period of time, in consultation with the finance ministers and has had substantial impact on the decisions of the finance ministers. I think it would be more difficult to get finance ministers to listen with care to us if they felt decisions were heavily influenced by people who were not representative of the finance ministers. 130. I think, with respect, your own views are less advanced on this than those of the Portuguese Presidency, who seem more willing to make that sort of gesture. (Mr Cook) I am not aware that we are behind anybody on the question of enlargement. As I said, to all practical intents, in terms of carrying out the CFSP, associate members are shoulder to shoulder with us. I am not aware of any complaint with them on this matter. Dr Godman 131. You talk about realistic progress being made and you are not so sure that slippage will occur. You are being a little optimistic, are you not? If part of the task is to prepare the European Union itself for enlargement - in other words, prepare Member States for enlargement - it seems to me, and I have said this to you before, that a major stumbling block, particularly where Poland is concerned, is the failure of our partners in the European Union to agree to the radical reform of the CAP. (Mr Cook) Our views on this are on the record, and I am very happy to confirm that there has been no change in that. We wanted to see a more radical reform of agricultural spending, and, actually, within the Agricultural Council, which operates by a qualified majority, we secured a more radical package. Some of those changes were rolled back upon at the meeting of the European Council, which presently proceeds not by majority voting but by unanimity. It is a clear example where majority voting works in Britain's interests and not against it. 132. Even with majority voting, the opposition amongst Member States to such comprehensive reform of this institution, of the CAP must mean we are still not going to hit the target dates, are we? There are some countries which are perfectly prepared to delay enlargement in order to protect their farming communities, in order to see that CAP remains largely unchanged. It is not going to change before 2006, is it? (Mr Cook) It will change in that the decisions on the dates and the decisions on the price cuts were taken at Berlin and at the European Council, and only a further European Council could change those decisions. There are no proposals for it to do so. We would have liked to have seen more rapid progress on those dates and targets, particularly in relation to dairy products, but the package is still quite substantial. Indeed, in the food bill for the average household of four it will represent a saving of œ64 a year. So one should not under-rate what we secured. Britain, traditionally, quite rightly, is in the forefront of demanding further reforms of CAP. I do think, on this, the tide of international pressure is with us. The next WTO round is almost certain to compel the European Union to look even more searchingly at what is a protectionist system. 133. Not dismissing for one second some of the gains that you have secured - this question of the saving of œ60 odd on the food bill is very important, especially for families on low incomes, that goes without saying. However, at the same time, if the CAP is not comprehensively reformed we face the danger, if we stick to the timetable, of introducing a two-class system vis-a-vis the CAP. Do we not? (Mr Cook) That is a contentious issue, and the Berlin agreement made the assumption that there would not be direct payment to farmers in accession countries. That, of course, is not something that is necessarily welcome news within the accession countries. I have to say, if we are serious about reform of the agricultural policy then the direct payment to farmers is not something that we should be expanding at the present time, and I think if we want to secure a more searching reform of the agricultural policy in the future we should minimise the extent to which we create clients to the present programme in the process of enlargement. 134. Some of these other Member State governments are keenly aware of the farming vote. (Mr Cook) Not just the accession countries, some of the present ones, too. 135. Sure. I think of the Republic of Ireland and other countries where these matters loom large. This question of the applicant countries facing the problem of being denied the same rights that others enjoy vis-a-vis the CAP must cause you, surely, considerable concern. You are not going to achieve that radical reform, are you? Bluntly. (Mr Cook) I think there will be radical reform of the agricultural policy, yes. I think it is inevitable. We can speculate and debate the time it happens but it is inconceivable that in the modern world the agricultural policy will continue unchanged and without radical restructuring. Norman, you began your question, quite properly and quite rightly, by encouraging me to reach further for reform of the agricultural policy, and I am very receptive to further ambitions and aspirations in this regard. However, if we are serious about doing that then I think we have to be very careful about the extent to which enlargement creates further clients and further pressures against reform. That is why we are very anxious that in the course of enlargement the process of reform of the agricultural policy is given a boost and not given a major obstacle. I think the other point I would make is that one should look at the totality of the package available for the accession countries. The terms of the package are pretty generous. The major changes that were made at Berlin were in relation to the Structural Fund spending. Those were painful - painful for us and more painful for other countries. But the consequence of that is that we provided the headroom for up to 4 per cent of GDP to be received by each new member country in Structural Funds. 4 per cent of GDP is a very big contribution. It is equivalent to the contribution of North Sea oil at its height in Britain. One should not under-rate the extent to which the overall financial impact is positive. To some extent it is down to the countries as to how they contribute and how well they use that additional resource. Sir John Stanley 136. Foreign Secretary, could I turn to European defence. In the paper, which you have tabled for the Committee, you say that amongst the United Kingdom objectives in this area are (and I quote from your paper) "agreements that the EU can carry out crisis management operations under the existing Treaty provisions but that a package of desirable Treaty amendments could be incorporated into the IGC." The question I would like to ask you is: does the British Government support amendments of the existing EU Treaty to accommodate a greater defence authority for the EU, or does the British Government oppose going so far as Treaty amendments in this area? (Mr Cook) We are not in favour and are opposed to the European Union having a defence competence. For instance, on the question of the European Security Initiative, we see that strictly as an intergovernmental arrangement within the Union. We do not see a role in the Commission for it. Nor at any time have we countenanced an Article 5 commitment for territorial defence. Our view is that this is squarely within NATO. On the issue of Treaty amendment, there is something of a debate at the present time within the European Union, as to whether a Treaty amendment is necessary in order to legitimise the arrangements we are making for crisis management. Our view is that it is entirely possible for those arrangements to proceed without any technical amendment to the Treaty. Frankly, we are quite keen that we should get on with making progress and putting structures into place, rather than disappear down what could be a lengthy process of Treaty amendment and ratification. On the balance of views at the present time, I think most countries, with one or two exceptions, are now subscribing to that view. I would anticipate that the balance of probability is that the European Security Initiative will proceed without Treaty amendment but any Treaty amendment required is of a fairly narrow and technical character. 137. That is very helpful. Obviously you cannot foresee immediately what the outcome is going to be. You have given a view that it is unlikely that at the end of this Council there will be a proposal to make Treaty amendments in this area. However, (I am speaking, of course, entirely theoretically), if it came out differently and there was some endorsement of Treaty amendments in this area, would you be able to assure the Committee that this would be a matter that would be dealt with, with immense care, with NATO? This is because amongst your four working groups, which you refer to in your paper - the four working groups between EU and NATO on Berlin plus, capabilities, security issues and permanent EU-NATO structures - none of those four groups specifically deal with probably the most important issue of all, if we are going to get into the Treaty amendment area, which is the interface between the EU Treaty and the North Atlantic Treaty. Can you, therefore, assure the Committee that if by any chance it came out that the EU was going to go down the road towards Treaty amendment, that this would be the subject brought up most carefully within the working groups, that it is proposed to set up with NATO. (Mr Cook) I am very happy to give an assurance that we would handle this with exceptional delicacy and care. It might be helpful if I repeat that although it may be desirable at some point to amend the Treaty to recognise what we are doing with European security, we are very clearly of the view that this must not either give a role for the Commission or in any way undermine the Article 5 commitment that is squarely within NATO. I would say that this is not a matter of contention within the European Union. There are few countries who would welcome an Article 5 commitment. All the non-NATO countries would find it extremely problematic because they have never agreed to a collective defence alliance. There are other members of NATO within the European Union equally committed, as we are, to preserving the central role of NATO for territorial defence. The argument about whether there is a Treaty amendment is a relatively narrow and technical area permitting the present proposals for crisis management. The country, at the moment, that is most attracted to a Treaty amendment is the Netherlands, which alongside Britain is the most pro-NATO member of the European Union. I would not see this, in any way, infringing upon the prerogatives of union with NATO. Mr Chidgey 138. Continuing with defence for a moment, particularly with regard to the CFSP, given that there is a drive to create a rapid reaction force, which would be, quite rightly, capability led, I was interested in the plans for a Capabilities Commitments Conference, which would seem to me to require some of our European allies (and indeed ourselves) to look very hard at our defence budgets. What sense do you get that Member States are prepared to increase their defence spending in order to make the CFSP a reality? (Mr Cook) Let me take one step back to be clear about what is proposed. It is very substantial. We have adopted, as the headline goal, that in the event of a crisis requiring an intervention or a peace keeping role, the European countries should be capable of putting into the field within 60 days a force of core strengths of about 60,000 personnel, and then maintain that in the field for at least a year. Now since you anticipate a roulemont every six months, that actually means you have to find 180,000 personnel, not just 60,000 personnel. We have taken the lead within this debate in trying to focus the European initiative on capacity, not just on elegant decision making mechanisms. We have also stressed the great importance of working with NATO in defining this capacity. I have to say that I think we have made very good progress under the Portuguese Presidency in getting the interface with NATO right, and we very much welcome the paper that the Presidency have negotiated on collaboration with NATO. 139. What sense do you have that other Member States are prepared to make the same commitments that you are putting forward? (Mr Cook) I think there is going to be a willingness on the part of a large number of the European countries to make such a commitment. To come back to your earlier point of an uplift in the defence budget, for most of them this is not necessarily going to be a question of uplift in the total bottom line of the defence budget, but it will require some searching examination of what they require their defence spending to do and what is the posture of their military forces. In Britain we are widely recognised in Europe as having trail-blazed on this with the development, particularly through the Strategic Defence Review, of more mobile, rapidly deployable, flexible forces. We and France are the two countries in Europe which can actually do that at the present time. There are other Member States who have quite substantial standing armies but they lack flexibility. They are not deployable, not mobile. Therefore, the first task for them is within their existing defence spending: to look and make sure that they are allocating in a way that would be supportive to the kind of roles that a modern defence force has to do in an intervention capacity, rather than simply static defence of their home territory. Some, at the end of that exercise, may need to look at whether their overall spend is sufficient, but for most the starting point is to look at whether they are spending wisely. Sir Peter Emery 140. In replying to Sir John, I think you made it clear that you were not in favour of any defence activity being a matter of control by the European Commission. (Mr Cook) Yes. 141. I wonder, therefore, whether you would explain to me how we are going to stop that when it appeared quite definitely at the NATO Environmental Assembly in Hungary last week that WEU was going to merge and move into the European Union. With Mr Solana now in Brussels, how is his role really not that of yet another commissioner, a defence commissioner, of the European Union? (Mr Cook) Xavier Solana is not a member of the European Commission. 142. As I say, working with the European Commission. (Mr Cook) Xavier Solana and the Commission are both very jealous of the fact that they are distinct entities. Xavier Solana is technically the Secretary General of the Council of Ministers. He is the servant of the intergovernmental arm of the European Union, not of the institutional arm of the Commission. You use the phrase "working with". Of course, we will work with them. Indeed, what we want to achieve - and I think this is the attractive strength of the European Union in crisis intervention - is a positive synergy between the defence contribution that Member States can make collectively through the Council, and with the oversight of Xavier Solana, and all the many humanitarian and financial economic assets which the Commission can sum up. For instance, we saw in case of Kosovo - and have repeatedly seen in the Balkans - that successful intervention requires a range of tools available, one of which indeed is the military component, but equally important is the humanitarian and economic involvement. I think the European Union is the best placed organisation to bring those assets together in one coherent holistic approach, but that does not mean to say that the Commission will gets its fingers in the pie running the military. 143. Two further questions. If the WEU does merge, surely it will mean that where there are specific commitments amongst the present members of the Western European Union, where do the non-WEU members come to fit into the decision making which will then arise with the European Union WEU unification? Ireland, Austria, Sweden, Finland, all non-members of WEU, but obviously having some role in whatever is newly created. That is the first question. The second question is: if this comes about, what sort of Parliamentary control or say might we have on what is happening? Will it be entirely ministerial? Will the British Parliament have any sort of interplay with the decisions that might be being made? (Mr Cook) The national Parliaments would, of course, have the key democratic role of holding Ministers to account for what they do in that intergovernmental context. I would stress that we see that as very important. This is because we are quite explicit that in terms of security commitments we are contemplating this as not something on which we should be accountable to the European Parliament. It is something for which Ministers should be accountable to their national Parliaments. On the issue of the four members of the European Union who are not members and, therefore, not fully in the WEU, those countries that are fully participative in the development of the structure, I think in some of them there was some concern, (which is understandable, given their traditional posture of neutrality and non-alliance), where this was going. They are now all content and some enthusiastic about what is proposed. Sweden and Finland, although they have never been part of a collective defence alliance, have played a very positive and honourable part in peace keeping around the world. There is also the issue of the interface with the other members of the WEU, particularly the six who are in NATO but not in the European Union. Now I think it is reasonable to say that we have played a leading part in trying to broker arrangements with which they would be content. The paper that has now come out of the Presidency, and approved at the recent General Affairs Council, reflects a lot of our thinking. It is a very good base for co-operation with those six. In brief, they will have the right to routine meetings - at least one at ministerial level - during every Presidency, to discuss common co-operation in this area. They will have the right to consultation if we are contemplating launching a European led operation. And they will have the right to participate in it. If they choose to participate in it, they will have the same rights over the management of that operation as any other participant, whether or not they are members of the European Union. 144. Thank you. Lastly then, how do you see certain worries and criticisms from the Americans and Canadians about their having no participation or role at all in this new European structure, which on the one hand they are delighted to encourage and on the other hand they appear at times to be slightly worried about? (Mr Cook) America has certainly been very supportive of what we are doing. Indeed, I notice that President Clinton, when he was in Portugal at the European Union Summit only last week, did make a very bald statement saying that there is no contradiction between a strong European and strong trans-Atlantic partnership. Canada has a slightly different area of concern. It is not at all hostile, in any way, to the European Union initiative. It does want to be able to participate in such an initiative. We are looking for ways in which we can reassure the Canadians that contributions from them will be possible when it is appropriate. Obviously Canada is not a member of the European Union and does not aspire to be so. However, it does have some very real military assets. For instance, it has a team of 30 doing aircraft movements at Lungi Airport in Sierra Leone at the present time. We certainly want to keep open the door to create ways in which they could contribute if we were in the field. Sir David Madel 145. Can greater mobility of the static European forces be achieved without greater expenditure? (Mr Cook) The answer to that is certainly yes. After all, we have achieved it in the United Kingdom. Our forces are more mobile, more flexible, and as we have shown in Sierra Leone, that can be deployed more rapidly over a budget that reduced very substantially in the past decade and is not increasing now. Whether all countries can achieve that envelope is a matter for them to address individually but some certainly can. 146. Do you think there is a political will in Germany to do this? (Mr Cook) The great advantage of handling this issue of crisis management for security within a European Union level is that in a number of those countries it creates political momentum for fulfilling a commitment that would not otherwise be there. Of course, in a sense, the proof will come in the autumn when we have the Pledging Conference on Capabilities but the existence of that conference does increase the pressure on Member States to honour the obligation that they undertook a year ago when we set out that headline goal. It is, if you like, an added source of incentive, an added source of pressure, to move towards rapid, deployable, flexible, mobile forces. If we do not do it this way, we will never do it any other way. 147. To what extent are you relying on German co-operation to make it more effective? (Mr Cook) Well, we rely on the co-operation of all Member States. 148. Yes, but Germany is the largest contributor. (Mr Cook) Germany has a very large standing army and the Kosovo experience has prompted a very healthy and proper debate within Germany as to whether their very significant standing army is sufficiently flexible and mobile. Chairman 149. But Germany has already cut back substantially on their present defence budget. (Mr Cook) Yes, and so has Britain, but Britain does have a more flexible and mobile force. Dr Godman 150. The Helsinki Summit called for the creation, and I quote: "of an autonomous capacity to be used for NATO as a whole ... is not engaged to launch in conduct EU led military operations in response to its national crisis." Is the thinking that such military operations would only, or very largely, be conducted under the auspices of the United Nations? Which operations, does the thinking go, would be concerned with peace keeping operations out with Europe? (Mr Cook) There is no present contemplation of a European Union led operation outside Europe. 151. Outside the United Nations? (Mr Cook) We would not be perceived to be (to use your phrase) "under the auspices" of the United Nations in the sense of being a United Nations force. I think recent experiences have shown that there are sometimes advantages in the UN sub-contracting the running of the force to other regional organisations. But we would always seek, wherever it is possible and appropriate to do so, United Nations authorisation for what we do. We would not necessarily wish to make that a precondition because there may be circumstances in the case of the veto, where it might not be possible to secure that authorisation, but it would be our preference to do so and we would achieve it where it can be done. 152. You said "preference" and you mentioned the term "sub-contracting". That sub-contracting for the United Nations would, of course, give any such operation legitimacy in the eyes of the international community. (Mr Cook) Absolutely. We have been very supportive of the United Nations and it is highly recognised that Britain has worked very hard to uphold the authority of the Security Council. The reason why we would find it difficult to make that an absolute precondition is, of course, that there are four other members of the Security Council veto, two of whom are not members of NATO nor of the European Union. If you take the Kosovo example, we achieved early in the Kosovo conflict a vote in our support of 12 to 3, but since two of the three had a veto it was never possible to get Security Council authorisation. 153. But an EU led military operation, if it encountered hostility or opposition within the Security Council, that would be likely to cause, would it not, some considerable dismay amongst some of our EU partners? (Mr Cook) First of all, I would very much prefer that we proceed on a basis which has not only consensus within the European Union, but within that wider group of the European Union plus the six European members of NATO, which also had a wide international consensus. That would be our objective. On many occasions that would be entirely achievable but I do not think I could persuade my European partners at the outset that there would be, in effect, a rational veto on what the EU decided to do, which is where you find yourself if you make authorisation of the Security Council as a precondition. Mr Rowlands 154. Following that up, Secretary of State, could you envisage a relationship where the European Union would proceed against US opposition? (Mr Cook) No, frankly, because any significant operation requires access to NATO common assets, such as planning, intelligence, logistics support, and it is not going to be possible to get access to that without the consensus of NATO. Chairman 155. Whilst we are on defence, the Russian Federation has been fairly relaxed about the Baltics' accession applications. As the European Union takes on a greater role in defence, do you anticipate that this might lead to a change in the Russian attitudes to the Baltics? (Mr Cook) It would be a complication if we went down the road by which Sir John was quizzing me earlier, namely an Article 5 commitment to collective territorial defence, but that is not on the horizon. What is currently proposed is a crisis management operation. We have detected no unease about this on the part of Russia. Mr Rowlands 156. A couple of aspects on enlargement. Foreign Secretary, are we happy now that all applicant countries are meeting the Copenhagen criteria on good governance, etcetera? (Mr Cook) Those within the accession process have made very good progress on this. There is always room for further improvement and we continue to have dialogue with a number of these countries, for instance, on the question of ethnic minorities. But, broadly speaking, those currently within the accession process are making good efforts to meet the Copenhagen criteria and have accepted that this is the standard by which membership will be judged. 157. And the slightly larger group outside? (Mr Cook) The one case that is not yet in negotiation but is recognised as one of the candidate countries is Turkey. The Helsinki conclusions recognised Turkey as a candidate for membership but also made it clear that negotiations could not commence until Turkey met the Copenhagen political criteria. 158. The other point you made was, in fact, that a lot of the access countries already have close relations within the CFSP. Are all applicant countries prepared to accept in advance of accession the Code of Conduct on arms sales? The European Union Code of Conduct on Arms Sales? (Mr Cook) I think my impression is that they all do. 159. Because that is quite serious. Places like Bulgaria and others are major suppliers of small arms - and brokers. (Mr Cook) Indeed. The Code of Conduct is part of the European Union acquis. They would have to accept it as a condition of membership. I think the governments do accept it also as an obligation on them at the present time. Some of them have perhaps a more challenging environment in which to apply it than existing Member States, such as ourselves, and one of the serious issues - and it is one that is recognised by the governments - is that Central and Eastern Europe have large quantities of surplus weaponry, not all of which is under the immediate control of the government. 160. But the process of consultation and denial is in force, as it were, in Central and Eastern European countries? (Mr Cook) I would need to take advice as to whether the denial process works. I am advised that probably the process of notification and denial does not at present embrace the accession countries, but possibly I could do a note to the Committee on this because this is an interesting point. Mr Rowlands: An important one, I think. Mr Mackinlay 161. If I could take you back to questions which were largely raised by my colleague, Dr Godman. Both in this session and other sessions we have had with yourself and other Ministers, this matter of the scale of agriculture in the applicant countries. Poland is mentioned frequently when this comes up. I have listened to these questions but it seems to me, and from my own discussions with Polish Ministers and Polish politicians, none of them are saying that they want - I think it is your phrase - to be additional client countries to the agricultural subsidies. I think the question is, this is a red herring, is it not? While it is a fact that they have big agriculture - and I am not trying to minimise that as not being important or a problem - they do understand, do they not, that there is not going to be an extension of the subsidies? That is accepted, is it not? (Mr Cook) It is certainly understood by them. I would not wish to pretend that it is universal assent throughout all political classes but it is understood and it is not a matter of live negotiation. 162. That is right. (Mr Cook) Mr Sheinwald, do you wish to add to that? (Mr Sheinwald) I think, as far as I know, all of them, and certainly Poland, the factual position is that countries among the applicants, including Poland, have sought to have direct payments applied to them from the date of accession. They also understand, as the Foreign Secretary has made clear, that there is not an understanding amongst the EU Member States that is part of the Berlin settlement, so there is a problem there; a problem which will have to be dealt with later in the enlargement negotiations. That will not, fortunately for the United Kingdom point of view, prevent us, we hope next week, from opening the Agricultural Chapter for all the Luxembourg six countries. It will be quite an achievement to get the negotiations on to that new footing. By next week we should have opened 29 of the 31 Chapters, which comes back to Dr Godman's point about maintaining some momentum in the negotiations, which I think we have achieved during the Portuguese Presidency, despite some of the doubts that have been raised. So there is this problem but it is not a problem for today. It will come back later in the negotiations. Ultimately, whatever the ultimate regime for agriculture is, it has to be one which treats the new Member States and the old ones on the basis of equality. But usually after an accession you have a period of transition. Maybe during that period of transition this issue can be sorted out. (Mr Cook) Our own preference would be that the issue of equality is secured by reducing spending within the Member States rather than increasing it among the applicant countries. 163. On flexibility, it is called various things - multi-speed Europe, flexibility - I think in the past HMG has expressed the view that we do not want to favour this. I wonder if you could give us an update on the latest position on this. I happen to agree. I think HMG is quite correct. (Mr Cook) Thank you. I am very happy to rest on this point. 164. I do not know there is much more I can do but assent! (Mr Cook) The current in-vogue phrase is "enhanced co-operation", by which it is proposed that a number of core members may forge ahead with a further development of integration between themselves. One should clearly distinguish between that concept and the other use of the word flexibility, which sometimes appears, which is the flexibility to opt out of existing parts of the acquis. There is no such proposal among the present Member States and interpretation of flexibility in that form would mean vigorous resistance of the very countries which were proposing the enhanced co-operation of flexibility. We should remember that enhanced co-operation was, of course, provided for in the Amsterdam Treaty. Therefore, it has been fully enforced now for well over a year. In the times since Amsterdam nobody has actually produced an example of what would be a function of enhanced co-operation. It is broadly accepted that it would be improper to proceed with enhanced co-operation if that would distort the single market. You must have a single market. You cannot have an outer and an inner single market. There is already a form of enhanced co-operation in Justice and Home Affairs through the Schengen Agreement. Within the Common Foreign Security Policy, by definition, a common foreign policy has to be a common foreign policy. Things like the European Security Initiative offer models for variation of participation. Not every country might take part in the European led organisation and those who do not take part would not be responsible for its operation. Beyond these different observations, which affect all three pillars of the European Union, it is very hard to see how much room there is for further enhanced co-operation; and those who are promoting it as a model have not come up with an example of where it might be applied. Now what would be under discussion, perhaps in the remainder of the Intergovernmental Conference, is how we refine and amend the arrangements that were put in place at Amsterdam but, to be candid, those refinements would be relatively modest and at the present time those promoting enhanced co-operation have not come up with a model of how it would work. Chairman 165. One form of enhanced co-operation is the euro. (Mr Cook) Indeed. Sir Peter Emery 166. Enhanced co-operation without us seems to be the move which was announced over the weekend, with a greater co-operation of what I think used to be known as the X Committee working towards a furtherance of economic, financial and commercial policies of the 11, with us sitting outside the door, having no say in what is going on. That is hardly enhanced co-operation, is it, Foreign Secretary? (Mr Cook) I fear, to come back to what you say, that you put your finger on exactly why we have a degree of scepticism about enhanced co-operation. On the question of Euro 11, the rules for Euro 11 were drawn up at the Luxembourg European Council. Those rules may be perfectly plain. Where every financial or economic decision is taken affecting the whole of the European Union, then the whole of the European Union has to take part. In other words, those decisions have to be taken in the full ECOFIN meeting. Plainly we cannot and should not object to members of the euro currency taking technical decisions about the management of the currency of which they are part. As we are out of that currency we cannot expect to participate in that. But where this moves beyond technical decisions about the currency to wider financial and economic issues which affect us, then that is certainly something where all members of the European Union within ECOFIN should participate. 167. But if the Government made its position much more clear about its final intent to enter into the euro, would this not allow us to be a greater participant in the Committee of the 11? (Mr Cook) No, you could not join the Committee of Eleven unless you were joining the euro. A statement of intent is not going to give you the pass to the door. But, of course, it is very important for us that our partners in Europe understand that this Government accepts the case for membership in principle has been made and that it is our intention to join if the economic conditions are met. Perhaps I should add for the Committee, that after Feira it will not be the Euro Eleven, it will be the Euro Twelve, because Greece will become a member at Feira. Denmark is holding a referendum in September, Sweden has an active debate at the present time, and plainly a consideration for the British debate is the extent to which the balance of forces shift further every time somebody else joins and we are left that bit --- Sir Peter Emery: We are left more isolated? Mr Rowlands 168. Are you accepting the word "isolated"? You are nodding. Is that the word which could be put in your nodding mouth? (Mr Cook) I do not express a view on it. Sir Peter Emery 169. Oh do! (Mr Cook) I have always expressed the view, and I do not resile from it, that the longer the euro continues and achieves stability and soundness, the greater the arguments tip in favour of Britain eventually becoming a member. Chairman: Foreign Secretary, linked to enhanced co-operation is Franco- German co-operation and the recent speech made by Herr Fischer, and I think Sir David as a question on that. Sir David Madel 170. Foreign Secretary, this is the speech that the German Foreign Minister made in Berlin on 12th May in which he supported the EU moving towards a new constitution and direct elections for a European government. Would it be correct to say that that would not be your view and would not be the view of the British Government? (Mr Cook) I am happy to say that is absolutely the case. One of the delights of being a member of the European Union is that we have 15 foreign ministers and that greatly adds to the richness and diversity of European Union debate, but a speech by one of the 15 does not become European Union policy. I think it is also fair to say that in this reaction we are not alone. There was a very robust statement from the Swedish Foreign Minister recently saying that a Federal Europe is not the vision of the Swedish Government, and they of course will have the presidency come January, and indeed the Finish Foreign Minister has been even more robust in his comments. 171. There was a robust statement last December by the German Chancellor at his party congress, when he said that the nation state would be the centre of Europe's hopes and needs. You would agree with that? (Mr Cook) I would, and indeed it is interesting that President Chirac recently, after the Fischer speech, did say that the European force today is a natural convergence of national desires. President Chirac is, of course, already on record as saying his vision is not a United States of Europe but a United Europe of States. 172. But really what the German Chancellor was saying last December was really giving us, if we so wish as a nation state, considerable flexibility within the European Union to do what we wish. We appear to have a powerful ally in the German Chancellor. (Mr Cook) I think it is fair to say that nearly every Member State of the European Union sees the future of the European Union as being very firmly based within the identity of the nation state and as a union of member states preserving their identity, preserving their own democratic traditions. It is quite interesting that if you look at Joschka Fischer's speech in detail, there are strong passages in the speech where he himself also recognises that, for instance in the context of the European Parliament he appears to propose that the European Parliament should be formed from the national parliaments rather than, as at present, directly elected. 173. Do you think that one of the reasons why there is a degree of unpopularity about the European Union in this country - and it is difficult to measure - is because so often the European Union has been over-ambitious in what it is trying to do? (Mr Cook) I would not accept that the Union has been over-ambitious in what it has set its hand to do. I think that we possibly get over-excited by an occasional isolated speech which then appears reported, as that particular one was, as some grand European master plan. I think - well, I know - at the present time I feel more comfortable that our approach over the European Union, working together in close co-operation, tackling in a cross-border way the increasing number of cross-border problems we have, but preserving our identity as Member States and our democracies as nations, is one which actually has much more support in the majority than a concept of a federal government with its own sovereignty within Europe. Mr Chidgey 174. Just on the back of Sir David's questions, could I refer you to a meeting that Sir Stephen Wall had before the European Parliament's Constitutional Affairs Committee when, understandably, the question of Herr Fischer's speech was raised? He replied to the comments made that he did not believe that Herr Fischer's speech was extraordinary and that close co- operation was always going to be on the agenda, "however it raised fundamental questions about the underlying philosophy of the EU." Would you agree with me that the underlying philosophy that is now being questioned is whether or not the EU will continue to be what it is supposed to be, which is an inclusive group of nation states, or that it will become an exclusive grouping of different states? (Mr Cook) I think you very accurately identify where the critical issue of debate is now going to develop. To be fair to Joschka Fischer, in his speech he does himself stress that, for instance, any version of enhanced co- operation must be inclusivist, not exclusivist, in other words must be open to all Member States who wish to join, and that the members of any enhanced co-operation project are not entitled to draw up rules by which others can then join which become barriers. So he would, were he here, argue that he adopted an inclusive approach to the European Union. I think there is an alternative perspective among particularly the applicant countries who are a bit nervous that the debate, of which that speech was part, runs the risk that they will not be treated as full members on membership. Our perspective --- 175. Full or equal, Foreign Secretary? (Mr Cook) I am very happy to accept either formulation. 176. One can see the difference? (Mr Cook) Well, full and equal, let's say. We believe that it is very important that they should, partly because in order to obtain membership they have to carry through some very painful and unpopular reforms, and it is vital that we give them every incentive to do so. 177. I have three or four questions, Foreign Secretary, on the Charter of Fundamental Rights which are a bit complicated, so I will try and take them carefully but I think they are very relevant to the current debate which, sadly, seems to be carried on in the press rather than Parliament about the Charter of Fundamental Rights at the moment. To start off, in your understanding will the Council during the deliberations on the Charter in Nice be able to amend the text of the draft charter in order to reach agreement, or will the proposals just be a text we either take or leave? (Mr Cook) Nothing can take away the right of the Heads of Government to amend anything they choose to set their hands to. By convention, we try to pre-cook it so that the Heads of Government can make as much progress as possible on consensus, but ultimately the European Council can make its own decisions and will do so. Can I say on the recent press reports that, of course, what was published on that occasion was not a final plan, what was produced on that occasion was the text of work in progress and there will be a lot of changes before we ever get anywhere near Nice. 178. Has the Government considered enabling the Union to become a high contracting party to the ECHR? How will that be achieved in the context of the Charter rights and its position in the Treaty? What will be the ramifications for our legal system and the ECJ in those circumstances? It is a three-part question. (Mr Cook) At this point I think it is probably prudent for me, Chairman, to confess to not being a lawyer, so I can robustly express my policy positions on this but at some point I may need to seek legal advice on some of the complex issues which have been referred to. First of all, the Government's position is that the Charter should not become a legally-based document. When this enterprise was launched in Cologne we foresaw it as, and it was agreed as, a presentation of existing rights. There is a case for a declaratory code which establishes what the existing legal human rights are in the European Union and I do not think anybody could reasonably object to gathering them in one document, but that is a different matter from that document becoming a legally-binding text with justiciable authority. Secondly, we were clear that going into the Charter should be a codification of existing rights which would not be the basis for rolling forward new rights. Indeed what are human rights are well-established and have been well- discussed over the decades, so there is not any great controversy as to what is within the corpus of accepted fundamental human rights. You raise a separate question which is the issue of the European Convention on Human Rights. One of our concerns about the Charter becoming legally binding is that this could have the perverse effect of undermining the present structure of human rights law in Europe which is firmly based on the European Convention and the European Court of Human Rights in Strasbourg. It would not seem to us actually helpful in reinforcing the primacy of human rights law within European societies if we were to create a rival to a system which has served us well. Presumably, if the Charter of Rights were to be legally justiciable, one could envisage a situation in which the European Court of Justice was giving rulings which may not necessarily be the same as the rulings in the Strasbourg Court. 179. Indeed I accept that readily. One final point, just to take us a little further, and I do accept it is incredibly complicated to put it in terms of our policy, but I think it is important just to tease this out, Foreign Secretary. As we have discussed, there has been a lot of press invective about the Charter as a sort of quasi-constitution for Europe but it is important to remember that Chris Patten was recently supportive of a document or statement specifying what the responsibilities of nation states should be with regard to the Union. That sounds to me a little bit like a constitution or a statute of limitations which sets out the roles of each tier. What is the Government's position on such a limiting document? Would you agree, Foreign Secretary, that should the Charter become justiciable - and I obviously heard your argument why it should not be but should it become justiciable - it would best be done within the format of such a document? (Mr Cook) We have always been very sceptical about any clear and, if you like, constitutional text setting down the European competencies of Member States. I understand why some people feel that clarity might be desirable, indeed one can see there are two sides to the argument, but, frankly, we think it would take up an enormous amount of energy, emotion and effort and it is probably rather better that we get on with making the European Union actually work. This may be a characteristically limited British perspective and does not always chime with the more Napoleonic approaches elsewhere within the European Union, but it does seem to us to be the right set of priorities. On the Charter of Rights, as I say we opposed it being legally justiciable. I do think you are right to be sceptical about some of the press claims of the last few days; it is very hard to see how a declaratory statement of existing human rights could possibly be misrepresented as a European constitution. These are the human rights we ascribe to, we do not challenge them, they are not in themselves a threat to the fundamental rights of Britain but our view is that for justiciable authority we should rely on the European Convention on Human Rights. Chairman 180. On this same matter, Foreign Secretary, the Portuguese Foreign Minister has recently said that the Council of Europe will ultimately follow the WEU into oblivion. There in one bound you will have solved the question of any conflict between the ECHR and this Charter. Do you think that will happen? (Mr Cook) I would be very surprised if I see that in my life time, Chairman. After all, the Council of Europe embraces a wide range of Central and Eastern European states, such as the Ukraine and Russia, currently suspended, and it has served an extremely valuable role over the decade since the collapse of the Cold War in helping to encourage and underpin democratic and human rights values within Central and Eastern Europe. I think the work done by the High Commission for National Minorities is, frankly, not sufficiently appreciated. I therefore do not see any foreseeable prospect of the Council of Europe and its very important work on Central and Eastern Europe being superseded by the European Union. 181. There is one legal view that even this Charter, unincorporated into the corpus of the Union, will still be justiciable. Is that the view which you have? (Mr Cook) I am open to correction but I think it would not be justiciable but the European Court of Justice does have a record of accepting declaratory statements as guidance in judgments it might make. In other words, if it was not justiciable one would not expect individual citizens to appeal to the European Court of Justice on the basis of the Charter in the way they can appeal to Strasbourg on the basis of the Convention, but in giving any ruling on a matter before it, the European Court of Justice may make reference to it. 182. It can take cognizance of it? (Mr Cook) Yes. That, of course, is why we say that it is important that the Charter should contain only existing rights and not be used as the basis for a cutting edge for establishing new rights. 183. The French were particularly concerned that Lord Goldsmith, who presumably was effectively speaking on behalf of the British Government --- (Mr Cook) He is the leader of the British team. 184. --- was so adamant against the incorporation of any economic and social rights. How do you answer that as a Labour Minister? (Mr Cook) I do not have a problem as either a minister of the government or as a member of the Labour Party in saying there is a distinction between what is a fundamental human right and what is a desirable social and employment goal. For instance, at one stage, it was proposed within the discussions - it is not in the current text and some things in the current text will drop out between now and Nice - we should create a right for every citizen to three months' paid parental leave. That may or may not be a desirable policy goal but it plainly is not a fundamental human right. Mr Rowlands 185. I wonder if I could briefly turn to the tax issue because that is mentioned in both the memorandum by the FCO and we had very useful evidence on March 28th from Mr Vaz and Mr Lyall Grant which was quite clear. Can we first of all get up to speed and hear from you on the question of the withholding savings tax? Where does it stand and what is going to happen at the Council on that matter? (Mr Cook) There is a further meeting of ECOFIN before we get to Feira but it is not possible to anticipate what may come out of it, but the movement in Helsinki from our perspective has been very positive. It is now broadly accepted within the European Union that the way of resolving the perceived problem is not by a European Union-wide tax but by European Union-wide standards of disclosure of information, so that the appropriate country can make sure that the capital of its citizens is disclosed and is available for tax, and that we do that on the same basis ourselves, and that we then seek to make sure that such a disclosure of information is shared more widely than just the European Union. This results very much from the lead taken by Britain that the issue is a question of transparency, the issue is not one of a pan-European tax. We have made a lot of progress on that argument and we have got a very substantial majority of support. There is still a minority who are holding out against withholding information, some for their own differing domestic reasons, I hope that it will be possible to persuade them to join the consensus, but at the moment Britain is now in a very large majority. 186. So the confrontational high noon aspect of this is no longer a valid description of the situation? (Mr Cook) I think it was always slightly overdone but we are now in a majority and we are not in any shape or form isolated on this question. I also do think that the proposals we have made and the agreement we are near to reaching on exchange of information is entirely healthy. 187. The other area that we raised in March was the third element of taxation - there are three elements according to earlier evidence - and this was the code of conduct and unfair taxation. What new kinds of tax directives or harmonisation are going to flow from this code of unfair taxation? (Mr Cook) Let us be clear that the code of conduct on unfair taxation is not about harmonisation. The code of conduct starts on the principle that each nation state may have its own tax structure and its own tax rates. What it is not entitled to do is, in the context of that tax rate or tax structure, discriminate in favour of its own nationals or particular sectors of its industry. In other words, it can adopt whatever tax rates or tax structure it wishes, but it must apply it consistently to its own and to other European Union companies, citizens and industrial sectors. With that in mind, the working group has gone through the tax structures of Member States - it has of course been chaired by a British Treasury Minister, we have taken very much the lead on this - it has identified a significant number of practices which it regards as discriminatory and therefore unfair. I would say that overwhelmingly this exercise is in Britain's interests because of course that unfair discrimination discriminates against our own exporters and investors and, as one of the largest per capita exporting nations in the European Union, it is very much in our interests that such unfair discrimination is ended. 188. But there is a fine distinction between harmonisation, which you say is not going to happen as a result of this, and the idea that you have to conform with this tax and that tax because that is the level of tax in Country A, B or C. (Mr Cook) It is not a question of level tax. For example, if Country X had a tax rate of 20 per cent but had introduced a clause that its own domestic companies would pay the tax rate at only 10 per cent, that plainly is unfair and discriminatory. We are not saying to it, "You have to have a tax rate of 20 per cent or 10 per cent", but "You will have to apply the same tax rate to other Member States as you apply to your own companies." 189. So it would be possible, say under Objective 1, for the United Kingdom to have differential corporation tax rates of the Irish kind without offending this unfair code of conduct? (Mr Cook) I am not familiar with the Irish corporation tax, so I cannot really comment on that but we at the present time --- 190. It is very favourable, 10 per cent. (Mr Cook) Yes, but we have a low corporation tax, and we are perfectly entitled to a low corporation tax and nobody is saying we cannot have a low corporation tax, just so long as we apply it evenly across the board. 191. Just for confirmation and to make sure it is on the record, in reply to Sir John's question you said that there can be no tax change under QMV, it has to be by unanimity? (Mr Cook) We have repeatedly said that we do not see QMV applying to taxation. Our red lines are taxation, social security, own resources, treaty amendments, defence, border controls. By the way, I am advised that within the code of conduct list of unfair discriminatory taxes there are currently no UK practices. Mr Mackinlay 192. At the Summit, will the question of Gibraltar come up at all? (Mr Cook) It may well be discussed in the margins but there is nothing on the agenda relating to Gibraltar. There is a number of very serious European dimensions to the Gibraltar question. We have continued to press the Commission for action on the border controls. We are pressing for Gibraltar to have the right of election to the European Parliament in the course of the forthcoming legislation in relation to the European Parliament, and there is a number of other issues where we are seeking Commission support, for instance on telephone numbers. I am not myself sure that tactically the right place to raise that is in the European Council which would invite comments from another Member State. 193. I do not want to debate with you on that but I think you are wrong. Frankly, it is a thundering disgrace that some of our citizens are prevented from moving freely within the European Union, but you and I would disagree on that. (Mr Cook) No, we would not disagree. 194. It would be very unacceptable if they were from Livingston or Thurrock; there would be a hell of a row. (Mr Cook) We do not disagree on that at all. I totally agree with you on that. I do not think it is tactically wise, though, to raise it in the full European Council. 195. We have a debate tomorrow in Westminster Hall, where no doubt Mr Vaz will be responding, but how long are we going to have to tolerate this before Her Majesty's Government does raise it as a substantive item, this continuing unsatisfactory situation in Gibraltar? At what stage do you say, "This is intolerable", rather than "We will do it at the margins" and so on? (Mr Cook) We have been saying it is intolerable, we have been saying that for a long time. 196. But it is like hitting the door with a wet sponge. It has no effect, has it? (Mr Cook) You asked me when I was going to say it was intolerable and I was saying we have been saying it for some time. I am merely responding to the tactic you have been advocating. If it is an insufficient tactic, I am very happy to hear alternative proposals from you. We have raised this as intolerable both with the Spanish Government - repeatedly bilaterally - and also with the European Commission for action to enforce the European legislation in relation to border controls. 197. Moving away from Gibraltar and moving on to more of a machinery point, when we had Mr Vaz here in March we raised the question with him, and I think the officials were going to look into this, of the disparity of treatment amongst the 15 Member States of governments in relation to their national parliaments. Some, as you know, choose, and it is a matter for their choice, to actually come before parliamentary committees prior to Councils or indeed IGCs with a view to canvassing the agenda with parliament and that is a matter for debate elsewhere. What there did seem to be a disparity about, and they said they would look into it, was that information should be available to national parliamentarians simultaneously throughout Europe. Another point was that there was evidence that the Council itself was going to discuss what category of information should be available and when because there had been a patchy situation depending on the presidency as to when information should be put in the public domain. I do not want to belabour the point but I wonder if you or your officials have any news on that or if it could be looked at with some expedition with a view to coming back to this Parliament because what was canvassed there was that documents should be made available in the Vote Office. So it is availability in the Vote Office, clearly the availability for parliamentarians, there should be parity of treatment throughout the 15 states, and the Council itself was to discuss that there should be consistency in the availability of information in the public domain regardless of presidency. (Mr Cook) First of all, on the issue of principle, Britain is very much at the front of the debate on transparency, and we have consistently argued for greater transparency and openness and we did use our presidency in order to establish some new bench marks. In particular, we exploited the use of the growing internet websites to make available documents on that so there was universal access not just by Members of Parliament but also members of the public, and we will continue to press for maximum transparency. Broadly speaking, once each presidency establishes a new bench mark subsequent presidencies then carry out that practice, and I do not think any of the introductions we made in our presidency have actually been rowed back. Possibly, Mr Sheinwald could bring us up to date on the current controversies. (Mr Sheinwald) We can certainly provide another piece of paper on that subject. There is a negotiation going on which has not yet reached the Council on the issue of access to documents which is what probably our Europe Minister was referring to. The main part of that negotiation has been the rights of individuals to documents which have not already been released, and I think what you are asking about is primarily to get a level playing field for the release of information to parliaments and to the general public in the first place. There is much more information around. We can look at the Scrutiny Committee's Report on the IGC and they, very early on, give a list of a dozen or 15 websites which have a vast amount of information on the way in which the IGC is being conducted. So compared with a few years ago, there really is a lot of information around, but we will follow that up. (Mr Cook) During our presidency there was quite a step change in the availability of documentation. I would also add from my own experience, Brussels is not a particularly secretive institution, indeed sometimes the problems are quite the reverse. Mr Chidgey 198. Just returning briefly to this issue of the IGC and tax, you said a few minutes ago that it was one of your red line issues, by which I understood that the Government would veto such measure as was discussed but, nevertheless, there has been speculation in the press that France and Germany may push for a constitutional amendment at the IGC which would give effect to qualified majority voting on fiscal matters. Firstly, do you expect such a measure to be on the table at Nice? I imagine, secondly, we can be assured that the Government would veto that, but, thirdly, are you aware of the level of support that there might be in other Member States for such a measure? (Mr Cook) I try to fight shy of the word "veto", because the word "veto" immediately confers the implication that you are isolated, and winning on this is also a matter of making sure that you have alliances and partners and support, and on none of those issues are we isolated. I can assure the Committee that we will remain robust and firm on this question and I do not anticipate that in Nice we will be confronted with having to agree to such a proposal to which we take exception. There is a very few number of areas yet identified in which there is consensus for movement to qualified majority voting. Some of them are issues we have proposed. For instance, we would actually like to see qualified majority voting in terms of the reform of the procedures of the European Court of Justice. I think it is very much in Britain's interests that we should enable the Court of Justice to give more expeditious rulings on breaches of Community law, and if we can secure qualified majority voting on that, that would circumvent obstacles to reform and an effective European Court of Justice. 199. Do you expect to see on the table at Nice such a proposal? (Mr Cook) On none of our red lines is there a consensus against us. On none of them are we alone. Dr Godman 200. On a point of order, Mr Chairman, with respect to the Foreign Secretary, in light of the contents of the note I have just passed to you, it is my view that this session should end somewhat earlier than planned in order that we can discuss that matter before our next meeting. I would be happy to explain to my colleagues why I have raised this unusual point of order at that time. (Mr Cook) I hope it is nothing I said. Chairman: It is a matter relating to our report on Kosovo. Dr Godman: It has nothing whatsoever to do with the Foreign Secretary and his two officials. Chairman: I would still hope we could use the time available with the Foreign Secretary, and then deal with that matter depending on the amount of time. We will go into private session obviously immediately afterwards. Sir David Madel 201. Foreign Secretary, you gave one example of where Britain supported QMV, in relation to reform of the European Court, I wonder if you could give another one? (Mr Cook) The truth is, David, that there are really small, modest areas for further movement on qualified majority voting. Remember, if you take the actual decisions they made within the Council of Ministers in the last couple of years, 80 per cent of all decisions have actually been made by qualified majority voting, and much of the balance is where there is consensus but it has to be decided by unanimity. So the margin for further advance is not great and it will mostly refer to areas where it will not give rise to the anxieties of those within our red lines. There are some other areas which we have considered on a case-by-case basis where we could see merit in moving forward qualified majority voting. For instance, there are some aspects of transport and industrial policy where we feel it would be of help in completing the Single Market if we could do it by qualified majority voting, but we are approaching it with great care. Chairman: Foreign Secretary, one of the remarkable features of the Portuguese Presidency has been the enhanced clout of the Union in external relations. We had the EU/Africa summit at Cairo which of course you attended, new relations with MERCOSUR, the San Jos‚ Group and EUROMED, and the Stability Pact, and it is that broad area I would like to turn now and ask Mrs Abbott to begin on matters of external policy. Ms Abbott 202. I want to ask a couple of questions on external policy, one on China and the other on the Balkans. As you know, the Committee is going to China in two weeks' time. We are very concerned about human rights and we are hoping to meet human rights activists when we are out there and we are assuming obviously that the Embassy will be able to facilitate that. The specific question I wanted to ask you is we understand that the EU has reached a deal with China on China's entry into the WTO and we wondered whether the EU would be considering imposing human rights conditions on China's membership of the WTO? (Mr Cook) I do not think that it would be proper for us to do so within the WTO rules. I am open to advice on that but I do not think the WTO Charter provides us with any basis for making a human rights requirement. I would also say that there are a number of human rights activists who have expressed support for China's membership of the WTO on the basis that it would bring China into the wider world and be of assistance in pursuing the reform agenda. I welcome the fact the Committee is going to China and I welcome the fact that you will be focusing on issues of human rights; they are a matter of concern to us. Chairman 203. You will be happy to facilitate meetings with human rights activists? (Mr Cook) We will certainly seek to do all we can to assist that. In the nature of China we cannot guarantee we will succeed but we will certainly give you every possible support. Ms Abbott 204. We are pleased and charmed by your willingness to give assistance. The other question is really about the Balkans. Again we are about to launch a major report on Kosovo in ten minutes and we wondered if there are likely to be any measures to be taken at Feira in relation to the Balkans and in particular will there be any response made to the clamp-down by Milosevic on independent media in Serbia? (Mr Cook) We have already responded bilaterally. For instance, when B92 was taken off the air we immediately arranged to reconnect it to the BBC World Service. We give quite a lot of support to independent media operations in Serbia. One of the things changing some of the access to independent opinion in Serbia has been the dramatic change in Croatia which of course has resulted in a very different message of news coverage coming out of Croatian television which is widely received in Serbia and of course they can fully understand it, and that is very positive. The Balkans tend to make up the largest item of discussion at virtually every monthly meeting of the General Affairs Council. We have a substantial programme of activity in and around Serbia and we will continue to exploit every opportunity we can to get messages into Serbia. Dr Godman 205. I am glad that you emphasise the importance of the independence of the media. What I would have thought was also of considerable significance is the holding of elections in Kosovo and given, as you have just said, that the Balkans are always on the table when you meet your colleagues from other Member States, at your last meeting with colleagues was concern expressed over the delays to the holding of local elections in Kosovo? (Mr Cook) I am not sure I accept the definition of delays. The OSCE is charged with making the election preparations and is making reasonable progress, given the nature of society in Kosovo, in making those preparations. We are all committed to local elections and, indeed, I met the Foreign Ministers to discuss specifically the question of the Balkans last week and we were all united in our support for local elections as soon as can be reasonably done. There is one difficult question which I will share with the Committee and that is the participation of the Serb minority in those elections. We are keen that Serb residents of Kosovo should take part in the elections. We are keen also that Serb residents of Kosovo currently in Serbia should have the right to register for those elections. It would obviously be very important for them to have the opportunity to cast their democratic vote. It is perfectly plain that Belgrade is operating an intimidatory policy of persuading Serbs in Kosovo not to register and preventing us from registering Serbs normally resident in Kosovo currently in Serbia. We have come to a view that we cannot allow Belgrade to beat us on whether the elections proceed but we will still work hard to try and encourage those Serbs who are willing to do so to register to vote. 206. Your view is that local elections should proceed Kosovo-wide for some kind of assembly. Is that view shared unanimously with your colleagues in the other Members States? (Mr Cook) These are elections at a local municipal level. They will have significant local control of services and administration and they will work jointly with the UNMIK administration and UNMIK have also just created a joint interim administration with Kosovar Albanian participation and from time to time also Kosovo Serb participation. I think it is very important that we do get those local elections embedded first so that the Kosovar Albanian population can take responsibility for the delivery of local services. It would be unhealthy if UNMIK remained the sole body responsible for delivery of education and health services. Thereafter, at some future date there will need to be some Kosovo-wide elections. That is not currently in the foreseeable future timetabled. We would want to see evidence of progress in local elections before we make any further commitment. But you are right it is the next logical stage. 207. Would you agree that the role of the media in Kosovo is well nigh essential in attempting to maintain the fairness of election campaigns and the election itself? (Mr Cook) An independent and free media is essential to a democratic process anywhere. Within Kosovo it is more open than it ever was before the entry of KFOR but there is always room for debate about the objectivity of the media, even in Britain. Sir David Madel 208. Are the Russians encouraging the Serb minority to register for local elections? (Mr Cook) My understanding is that the answer to that is yes. To what extent Russia really have influence over Milosevic is of course a very debatable proposition. I should say one of the possible ways forward we are contemplating on this is if we are frustrated by a Serb embargo on the elections, one way of proceeding may be in the appropriate municipalities where they are a Serb minority to reserve places for them on the Council. If they choose themselves not to take part in the election and if those remain empty seats it is plainly their choice not our choice. 209. Has Russia really washed its hand of Milosevic completely now? (Mr Cook) No, I do not think that would be a fair way of expressing it but it is perfectly plain that Russia shares the frustration at the difficulty of getting Milosevic to behave in a manner that recognises international obligation and from time to time has been treated by Milosevic very directly in a way which they find unreasonable. I would say to the Committee that we are, of course, deeply concerned by the very sharp increase in repression in recent weeks but my own interpretation of this - and it is one shared by many people in the region - is that the recent ratcheting up of repression is not a sign of strength with Milosevic, it is a sign of desperation. The situation in Serbia is becoming much more difficult and challenging for him. 210. Is the opposition in Serbia growing in strength and competence? (Mr Cook) I am not sure I would necessarily say that of the formal opposition parties, but there are new networks in civic society which he is finding much more difficult to respond to. The new student network, for instance, is showing a capacity for imaginative and innovative ways of registering their disagreement with his policies. What he is now faced with is something much more difficult to contain. It is not a number of opposition figures, it is a wide movement across civic society. Sir John Stanley 211. Foreign Secretary, if I could just come back to defence again. As European defence is obviously going to feature in the Council and given the fact that President Clinton has offered American National Missile defence technology to European countries, will the British Government be seeking in the final Communiqu‚ for this Council to establish any EU-wide view on the American National Missile defence programme, and if the British Government is not going to do so, do you anticipate any other European countries might be seeking to get a reference to this into the final Communiqu‚? (Mr Cook) I am not sure I would regard it as wise for us to seek a specific European Union policy on NMD given our own very entrenched view that the European Union should not be a place for territorial collective defence. NMD has been intensely debated in NATO. Indeed, we had a very full discussion about this in the North Atlantic Council in Florence only the other week and we would see NATO as being the forum in which America consulted its European allies rather than the European Union. I do not know that it would necessarily help that process if we were to seek a specific Communiqu‚ statement on that in Europe. 212. I am delighted that is the British Government's view but do you think that same view would be shared by other European nations, for example by the French? (Mr Cook) I do not think France will seek to text on NMD and certainly the NATO members of the European Union will, by and large, see NATO as the proper forum for that discussion. Chairman 213. We are having what used to be called a "Cook's tour" but I hesitate to use the phrase now. Would you confirm that you and your colleagues have agreed in respect of Zimbabwe that representatives of only ten of the EU members will send representatives to monitor the elections? (Mr Cook) I think the European Union response to the call for observers has been very good. If I remember rightly, we have got 130 observers from the Union. 214. Is it right that those observers will only be drawn from ten of the Union countries? (Mr Cook) I think that is possibly correct. Mr Rowlands 215. In effect, have we accepted a de facto veto on any British participation? (Mr Cook) No, there are, I believe, British participants in the Secretariat to the Commonwealth observers but I will be quite candid with the Committee, and I do not see this as a basis for dispute, our objective throughout has been to get international observers in. We took the lead both within the European Union and within the Commonwealth in proposing international observers and I can say to the Committee we have been vigorous in prodding, pressing and cajoling to make sure not only that we fulfilled and delivered on that decision but that we moved on as expeditiously as we could to get observers into the field as quickly as possible. I am pleased with the outcome. 130 European observers is a large number, 40 from the Commonwealth is the largest team we have ever put into the field for international observers and, remember, that they will be working with a network of thousands of monitors at the polling stations. I spoke at the weekend to Morgan Tsvangirai, the leader of the opposition in Zimbabwe, who did particularly express his appreciation of all we had done to get international observers in. Of course it is a matter of judgment, but I think the most important issue is to get international observers in. 216. What you are saying is we decided to pay a price for that by not putting in any significant high-profile British observers? (Mr Cook) I do not think we paid any price for it. We have got the same number of observers in without any reduction in the number of observers and we have secured our objective of getting those observers in. I certainly do not think it would be wise for us to hand an excuse to President Mugabe to prevent the deployment of these observers. Chairman 217. But for the greater good we have been prepared to acquiesce in the refusal of President Mugabe to accept British observers? (Mr Cook) I have never formally accepted that, Chairman, and I would suggest it would be unwise for me to do so. 218. In fact you have just done so. (Mr Cook) I have not formally accepted that, Chairman, and I am not going to concede any formal statement that we are accepting that refusal. It is a matter of record that we have got observers teams in and I am very pleased that we have and I think that was the objective, not to stand pat on our own dignity. 219. The European Union has decided to send representatives from only ten countries of the European Union. (Mr Cook) That is not unusual, Chairman. Mr Rowlands: It is Zimbabwe after all, Secretary of State, and we have long contacts. Chairman 220. We do have long contacts. (Mr Cook) I have to ask if we can get real in this discussion. You are right of course that we have long contacts. President Mugabe is trying to run this election in which he is a candidate standing against Britain and in which Robin Cook is the opponent. I have consistently sought for the last two months to deny him that election strategy. He is standing in Zimbabwe as to who can best run the economy and society of Zimbabwe and his opponent is the leader of the opposition, not the foreign spokesman for Great Britain. I do not think it would have been helpful to the opposition if we had got ourselves into a another, frankly, rather pointless conflict. 221. That is the stage you have got to with the opposition as well? (Mr Cook) I have regular contact with the leader of the opposition. We have fully discussed how we conduct our policies. His consistent message has been that we should not ratchet it up in a way that enables Mugabe to try and pretend he is a national liberator standing up to bullying by Britain but he should be forced in the election to confront the damage done to the economy and society of Zimbabwe during the time while he has been President. The clear demand of the opposition is that they wanted international transparency as the best prospect of inhibiting the violence and intimidation of the past two months. Mr Rowlands 222. Has it been inhibited? We are getting very confusing reports but most of them are pretty depressing ones. (Mr Cook) Peter Hain on Monday did express our deep concern at the continuing intimidation and violence within Zimbabwe. I do not think there can be any doubt that already the process of democracy has been compromised by that violence and that intimidation. Our task is to try and make sure that the observers are there as quickly as possible as widely deployed as possible in order to make it difficult for that violence to continue. Although the violence unquestionably has continued there is beginning to be some evidence that they are hesitant where the observers are present and there have been some moves by the police in towns which have been quite encouraging. It is important, though, that we get observers out of the towns into the countryside which is where most of the intimidation is taking place. Chairman 223. Foreign Secretary, before wishing you bon voyage can I address a question to you as a fellow parliamentarian. You know that there is in respect of European matters on defence currently a turf war between the WEU Assembly and the European Parliament as to who will have the degree of oversight over defence arrangements and you have said specifically that the whole defence initiative is inter-governmental and therefore ourselves and the Westminster Parliament are more relevant here. How do you see the question of parliamentary accountability in respect of the new defence initiative working out? (Mr Cook) I am unequivocal that as this is an inter-governmental matter that the parliamentary scrutiny should be carried out by national parliaments holding ministers accountable for the decisions they make as representatives of the nation. It is difficult to see how the European Parliament could properly become involved in this in circumstances in which the Commission has no immediate role. 224. I am obliged. May I thank you again. We have rearranged this and we are delighted you are with us. More particularly, we wish you every success in your mission in Sierra Leone. (Mr Cook) Thank you very much, Chair. I look forward with interest to reading the copy of the Kosovo report on the way back. 225. Some newspapers claim that they have previews of it. (Mr Cook) I never believe anything I read in the newspapers!