---

Middle East

Mr. Andrew Turner: To ask the Secretary of State for Foreign and Commonwealth Affairs what recent assessment he has made of allegations of control by the Palestinian Authority of suicide bombers in Israel. [55431]

Mr. Bradshaw: We have seen the Israeli dossier alleging President Arafat's involvement in terrorism, but cannot verify its authenticity. The EU Commissioner for External Affairs, Chris Patten, has made it clear that he has seen no hard evidence corroborating its claims about the misuse of EU funds. The Palestinian Authority has denied its allegations.

President Arafat must make all possible efforts to prevent terrorist attacks. Both sides have a responsibility to end the cycle of violence and engage in a political process which offers their people a peaceful way forward.

Sir Teddy Taylor: To ask the Secretary of State for Foreign and Commonwealth Affairs if he will discuss with the EU the allegations by the Israeli Government that sums contributed by the EU to the Palestinian authorities have been directed to funding members of Fatah and of the Al Aqsa Martyrs Brigades. [57031]

Mr. Bradshaw: The allegations made by the Israeli Government about the misuse of European development funds relate to budgetary support provided by the European Commission (EC). The EU Commissioner for External Affairs, Chris Pattern, has made it clear that he has seen no hard evidence corroborating claims about the

20 May 2002 : Column 60W

misuse of EU funds. The EC attach strict conditionality to the direct budgetary assistance provided to the Palestinian Authority (PA). The conditions mainly reinforce the need for transparency on the PA's public finances, strengthening the prudent management of the budget, and encouraging progress on overall financial and administrative reform. We are satisfied that the EC, with the assistance of the IMF, is ensuring the conditions are met.

Sir Teddy Taylor: To ask the Secretary of State for Foreign and Commonwealth Affairs how much money the EU has provided to the Palestinian authorities in each of the past three years; what measures are taken by the EU to ensure that the money is spent on the issues to which they are directed; and if he will make a statement. [57030]

Mr. Bradshaw: Between 1994–2001 (figures most recently available), EC aid to the Palestinian Authority and to Palestinian refugees totalled euro 1.466 billion. The UK share of this is an estimated euro 245 million.

The EC attach strict conditionality to the direct budgetary assistance provided to the Palestinian Authority (PA). The conditions mainly reinforce the need for transparency in the PA's public finances, prudent management of the budget and progress on overall financial and administrative reform. We are satisfied that the EC, with the assistance of the IMF, is ensuring the conditions are met.

Angus Robertson: To ask the Secretary of State for Foreign and Commonwealth Affairs if he will list the meetings held between (a) UK diplomatic staff in the middle east and (b) staff from his Department with representatives of the Democratic Front for the Liberation of Palestine since 1 September 2000; and if he will make a statement. [55995]

Mr. Bradshaw: British diplomats in Damascus, Beirut and Jerusalem meet DFLP representatives on an occasional basis, including at diplomatic receptions. They have had no contact with the DFLP this year.

Mr. Kaufman: To ask the Secretary of State for Foreign and Commonwealth Affairs what assessment he has made of the military objectives that Israeli armed forces have achieved by their siege of the Church of the Nativity in Bethlehem. [56576]

Mr. Bradshaw: Israel's stated military objective was to root out terrorists. But neither side can achieve lasting security through force. Actions by both Israel and the Palestinian Authority have contributed to the crisis. Israel must withdraw from Palestinian controlled areas and act in accordance with UN Security Council Resolutions including SCR 1402 and international humanitarian law. The Palestinian Authority must do everything in its power to stop the violence against Israelis.

European Community

Mr. Austin Mitchell: To ask the Secretary of State for Foreign and Commonwealth Affairs what precedents and rules have been adopted by institutions of the European Community in coming to a decision as to whether actions are better achieved by national or Community action, with reference to Article 5 TEC. [56633]

20 May 2002 : Column 61W

Peter Hain: The treaty of Amsterdam annexed to the treaty establishing the European Community a Protocol on the application of the principles of subsidiarity and proportionality to define more precisely the criteria for applying them and to ensure their strict observance and consistent implementation by all institutions. Legislative proposals must be explicitly justified in terms of subsidiarity. The choice of legal instrument employed is also subject to the subsidiarity test.

The Government welcome the opportunity, afforded by the Convention on the Future of Europe, to examine the question of subsidiarity and the delimitation of competencies between the Union and the member states. We support the Amsterdam Protocol, but will be seeking ways to embed this principle more robustly within the EU's system of institutions, and to consider mechanisms that will monitor—and enforce—subsidiarity and proportionality more effectively.

General Affairs Council

Mr. Connarty: To ask the Secretary of State for Foreign and Commonwealth Affairs what the outcome was of the General Affairs Council held in Brussels on 13 May; what the Government's stance was on the issues discussed, including its voting record; and if he will make a statement. [57003]

Peter Hain: My right hon. Friend the Foreign Secretary and I represented the UK at the General Affairs Council (GAC) in Brussels on 11 May. Conclusions were agreed by consensus and no formal votes were taken.

Preparation of the Johannesburg Summit on sustainable development

The Council noted progress made in preparations for the World Summit on Sustainable Development (WSSD), which will take place in Johannesburg on 26 August to 4 September 2002. The Council instructed relevant Council bodies to prepare a substantive contribution on the EU's role in the WSSD process, to be approved at the GAC on 17 June and endorsed at the Seville European Council.

Annual Policy Strategy 2003

The Council endorsed the Commission's three main priorities for 2003: achieving enlargement successfully, continuing to ensure security for EU citizens, and developing a sustainable and inclusive economy. The Council agreed that the Commission's suggested budgetary allocations would be studied in the framework of the Preliminary Draft Budget examination for 2003. The Council recommended that future versions of the Annual Policy Strategy should be presented as early in the year as possible to improve the coherence of the budgetary process.

Effectiveness of the Union's external action

The Council noted work in hand and heard presentations on improving cross-pillar cooperation, strengthening the EU's role in international organisations, budgetary issues, development aid and the EU decision-making process. Commissioner Patten briefed Ministers on pilot studies aimed at improving the impact of EU external assistance and on the process of evolution of responsibilities to Commission delegations.

Economic Partnership Agreements (EPAs) with ACP countries

The Council welcomed the Commission's proposal for a mandate to negotiate EPAs with the ACP countries, recalling that the ultimate purpose of the negotiations was poverty eradication and integration of ACPs into the world economy. It also addressed questions of ACP market access and WTO compatibility. The discussion will continue in the Permanent Representatives' Committee, with a view to adopting the mandate at the June GAC.

20 May 2002 : Column 62W

Renewal of mandates and financing of EU Special Representatives (EUSRs)

Recalling the essential role played by EUSRs, the Council agreed to extend the functions and funding for FYROM and Afghanistan EUSRs and asked the relevant bodies to study financial formulae to make this possible.

Middle East

The Council discussed the possibility of convening an international conference and welcomed the end of the Church of the Nativity crisis in Bethlehem. It thanked the Cypriot Government for its assistance and thanked member states for provisionally offering the 13 Palestinians involved temporary residence on humanitarian grounds.

European Security and Defence Policy

The Council welcomed the participation of Defence Ministers, meeting as the GAC for the first time, and noted progress towards establishing the Capability Development Mechanism (CDM). It also acknowledged recent advances made in European military capabilities and discussed possible means of resolving current shortfalls with a view to meeting the headline goal.

Western Balkans

The Council conducted its annual review of the stabilisation and association process for south-eastern Europe (SAP), endorsed the conclusions of the Commission's first annual report on SAP, and confirmed the SAP countries' status as potential candidates for EU membership. The Council called on the SAP countries to devote adequate attention and resources to implementation of EU recommendations, with particular reference to strengthening the rule of law and judicial systems and visa and entry policies. The Council invited the Commission to assess progress made at its next annual review in March 2003. The Council proposed to establish a new ministerial-level political forum, linking the EU with the SAP countries. It also highlighted the need for a greater EU public information effort to foster greater understanding of the SAP. Crisis management in the Balkans, including the future EU police mission in Bosnia and Herzegovina and a possible mission in Macedonia, was also discussed.

Iran

The Council noted that broad agreement had been reached on substance and objectives for developing EU relations with Iran. In addition to commercial matters, it was felt important that this include dialogue on terrorism, proliferation and regional stability. It instructed officials to pursue discussions with a view to a decision at the next GAC on a negotiating mandate for a Trade and Cooperation Agreement with Iran.

Angola

The Council welcomed recent encouraging developments in Angola, including the signing of an MOU by the Angolan Armed and Unita forces culminating in a ceasefire. The Council, while expressing support for positive initiatives undertaken by the Angolan Government, called on the authorities to allocate the necessary resources to; reintegrating Unita and Angola armed soldiers into the armed forces, police and civil society; demining; and reconstruction of social and civil infrastructure. It also requested that the Angolan Government do its utmost the assist humanitarian needs.

---