Select Committee on Foreign Affairs Minutes of Evidence


Examination of Witnesses (Questions 60-79)

RT HON JACK STRAW MP, MR KIM DARROCH AND MR DAVID FROST

25 MAY 2004

  Q60 Sir John Stanley: Do you feel it satisfactory to continue with this quite difficult split of responsibility between the Commission and the so-called EU Foreign Minister for those acting in the name of the EU overseas? Have you given consideration as to whether it might be better for them all to come under one or the other, that it would be practicable?

  Mr Straw: They will come under one, they will come under the External Action Service, as I understand it, run by the European Foreign Minister and therefore responsible to the Council of Ministers. I think it is a good thing. There will be individuals within an office—if you take the really big offices, say Washington—who will be responsible, say, for trade, and day by day they would report to the Commissioner for Trade rather than to the European Foreign Minister; but the overall exercise there would be coordinated by somebody responsible to the Council of Foreign Ministers through the European Foreign Minister. I think it is a better way of proceeding. So at the moment, as I say, you have a lot of these people abroad and it is not entirely clear what they are doing in every case.

  Mr Darroch: I want to add to this that the point about this process is that you are merging, as the Foreign Secretary has said, a few representatives of the Council who work for Solana and all the permanent Commission Offices overseas at the moment, who will then have a unified service. This gives the Council much more control than at present over what these overseas, offices are doing, and they will all be working within the framework of policy that is set by the Council, which the European Foreign Minister is there to implement. So the net result of this is more control for the Council and Member States over what these offices are doing overseas, than is the case at the moment.

  Q61 Ms Stuart: There was me thinking that there was not any need for any Treaty base for the External Action Service whatsoever and we are just putting it in to keep Joschka Fischer happy. The Declaration, as I understand it, has not got a legal basis, and there is a really strong argument to be made that we are going into detail that actually is unconstitutional, or does not have a proper place in the Constitution and the Foreign Ministers and the Council of Ministers ought to make up their minds what is the best thing to do. Can I move on to my favourite pet hate, and that is the Passerelle clause, 24.4? The House of Lords report in one of its reports that its strongest criticism of the Constitution was not so much what is in there but the way they initiated some processes, and the Passerelle clause has actually been made by Her Majesty's Official Opposition as one of its "red lines" or its acceptability of the Constitution or not. As I understand it, the last debate we had is that that clause has been removed, as it stands, and from what I understand has actually been improved in a way that has strengthened tremendously. As we stand now, is the Naples text still the one which we think will be accepted?

  Mr Straw: Yes, it is now to be found in document 76 of the Irish Presidency, which is essentially the Naples text. It completely transforms the Passerelle clauses, objectionable for the reasons, which you have indeed often rehearsed, Ms Stuart. It is now strengthened so that if any national parliament, i.e. just one, "makes known its opposition within six months of the date of such notification, the European decision referred to above shall not be adopted." So it gives each national parliament a veto. I think it is very satisfactory, and as a result of us arguing our corner.

  Q62 Mr Pope: Can I ask briefly about the Charter of Fundamental Rights, and can you say what you believe the status of the Charter will be? Will it be an integral part of the Constitution or will it be merely a list of aspirations appended to it?

  Mr Straw: If the Treaty is agreed it will appear in the Treaty. That is not a problem. We agreed the Charter of Rights in any event. The issue has always been its legal status, and it is for that reason that there were negotiated in the Convention what were called Horizontal Articles, which were Articles 251 and 252. Its effect was to make absolutely clear—and I quote from Article 251-2: "The Charter does not extend the field of application of Union law beyond the powers of the Union or establish any new power or task for the Union, or modify powers or tasks defined in other Parts of the Constitution." It also makes clear that the provisions of the Charter contain principles, which are very general, and not just rights, and that they shall be "judicially cognisable only in the interpretation of such acts of the Union and in ruling on their legality." There is then the issue of the explanations. There were explanations prepared at the instigation of the Praesidium of the Convention, which drafted the Charter, and the Preamble of Part II says that, "The Charter will be interpreted by the courts of the Union Member States with due regard to the explanations . . ." We carry on looking at this carefully to ensure that we pin this down but there is already a very, very significant amount of protection here. May I give you one last example, which is about the rights of collective bargaining and action? This is Article II-28. which says that, "Workers and employers, or their respective organisations, have . . ." and it adopts the "right to negotiate and conclude collective agreements at appropriate levels and, in cases of conflict of interest, to take collective action to defend their interests, including strike action." But this is subject to very important saving, where the dots were, "in accordance with Union law and national laws and practices". So this does not add to any of the rights which people currently have, either under domestic law or, for example, under the ILO Convention or various Articles of the European Convention of Human Rights.

  Q63 Mr Pope: There are a lot of serious concerns about this, are there not, Foreign Secretary, as we appear to be facing a Spring of discontent, as a variety of sectors are looking at strike action—thinking of the railways and the London Underground. There will be real public concern if it was felt that this Charter extended the right to strike. Could you give us a categorical assurance that that is not the case; furthermore, that you will not sign up to if it it does?

  Mr Straw: I can give you that categorical assurance. Neither does it detract from the right to strike. The point is, it leaves the right to strikes within the purview of domestic parliaments—that is exactly where it should be. That is why there is this very important wording in II-28, people have these rights, "in accordance with Union law and national laws and practices", not just national laws but national laws and practices.

  Q64 Mr Illsley: Foreign Secretary, can I ask a few questions on European Security and Defence Policy? The first of which is that last year, last November, at the so-called Naples conclave, the Foreign Ministers agreed a test for the so-called mutual defence clause. Are we happy with that or is there a risk that the current text could jeopardise our standing within NATO? Is there any possibility that the text for that clause will be opened up for further discussion?

  Mr Straw: We are happy about the draft changes in the text. As I say, they were to I-40 and to later parts of the text. There has been no suggestion that this should be reopened—although they could be—and I do not recall a single occasion since Christmas when it has been reopened because there was overall agreement in both the Foreign Ministers at Naples and by Heads of Government. This was an issue on which people predicted there would be a great argument; there was a great debate and a very satisfactory conclusion was arrived at.

  Q65 Mr Illsley: Moving on to Structured Cooperation, I think we as a government proposed the original proposal for a small group of Member States to move ahead in terms of defence cooperation. The Irish have now amended that to include any Member State within that group. Does that meet our fears for the original draft? Are we happy with the latest proposals?

  Mr Straw: Mr Darroch indicates assent, and I agree with him.

  Q66 Ms Stuart: Does that mean that you can no longer have the system where you set up the inner core by unanimity and then the core can move on by QMV? The core has to require validity on unanimity, that was the real objection?

  Mr Darroch: In relation to Structured Cooperation or in relation to Enhanced Cooperation?

  Q67 Ms Stuart: Enhanced Cooperation?

  Mr Darroch: There is still a debate about that provision under Enhanced Cooperation, on whether the decision had been taken by unanimity.

  Q68 Ms Stuart: That was the real problem.

  Mr Darroch: There is still a debate on that so that clause is still important.

  Q69 Mr Illsley: If the Irish have opened a proposal whereby any Member State can be included within a small group, that could still produce a small group in the way that it was as originally envisaged and we objected to it. In other words, although we could all, say, as a group be involved in Structured Cooperation, it still might lead to a small group of States acting on their own. Even though the facility or the mechanism is there for any country to be involved, they might just choose not to, leaving a group of countries who are interested in being involved. Is there a danger of that?

  Mr Darroch: I am not sure if I have quite followed the question. The point about Structured Cooperation as opposed to Enhanced Cooperation is the provision is designed essentially to allow small groups to move ahead, especially with defence cooperation matters, and that could be developing particular defence systems or whatever. I think the text does have some sort of entry criteria for joining that small group that is taking the Structured Cooperation forward, so you have to meet certain levels or have a certain commitment about the contribution you are going to make to the Structured Cooperation.

  Q70 Ms Stuart: The real question is: if you have a mechanism that allows a small group to move ahead and then the process is so open that late comers may join as they choose, that is fine; but there is a flaw at the moment that it could actually allow the small group to form and that small group in itself becomes more exclusive by moving on QMV and not allow outsiders to come in.

  Mr Straw: Have QMV within the small group and it becomes less exclusive in terms of who else can join, and that has been quite an important part of this. If you have unanimity that means that any member of the core group can veto the joining of others. This is an area where QMV works to the advantage of the greater number. So you have QMV in it so that one individual country could not veto another nation seeking to join, and that has been one of the things we have been arguing for. Sometimes QMV works in a counter intuitive way, just as one example; the Zimbabwe sanctions is another. Can I also say, Mr Illsley, there never has been anything to stop Member States of the EU from cooperating bilaterally, trilaterally, quadrilaterally outside the Treaties, and plenty of that goes on at the moment, and long may it continue.

  Mr Darroch: Just on the Structured Cooperation point, because there is a difference here between Structured Cooperation and Enhanced Cooperation. The text that we have arrived at, which is no longer under debate, it is more or less agreed, makes it clear that structured cooperation is about capability commitments, and it is pen to any Member State that wishes to join. The provisions on the Structured Cooperation mean it has to be agreed by all 25, as a whole, not just by prospective participants, before it can be launched.

  Q71 Mr Illsley: I think I have it now.

  Mr Straw: You are the only one who is confused, by the way! They have Enhanced Cooperation in Afghanistan, by the way!

  Q72 Mr Illsley: Et tu, Brute! Turning to the European Armaments Agency, what is the progress on the European Armaments Agency, and can you say a little bit more about this conflict between ourselves and the French in terms of this suggestion that it should have a bi-Europe policy, rather than look outside of Europe, or perhaps leasing equipment, purchasing of equipment?

  Mr Straw: I think it is working all right, actually. The French Defence Minister said in Le Figaro on 20 May, "There is no French-UK divergence on the role of the Agency. This will in a balanced way cover four areas: future military capabilities, harmonising operational needs, new armaments programmes and research. The British, like the French, believe that Ministers of Defence should take on the primary responsibility within the Agency. This now seems to be agreed by everyone else. On finance and decision making there is no difference between the UK and France." The Committee may know that Nick Whitney, who is an official in the Ministry of Defence, has been appointed to head the Agency Establishment Team. I think it will work out fine, and it is to the advantage of the UK's defence capabilities; it is also, in my judgment, to the advantage of the UK's defence industry.

  Q73 Chairman: You are convinced that there is no divergence on a more protectionist little European defence procurement policy by the French and ourselves looking more flexibly and more widely?

  Mr Straw: I am quite sure of that. In any event, defence exports will remain a matter for each individual state, and that is very clear. As you know, we have a co-operative arrangement on defence exports within Europe with the common criteria for export controls but what we export is a matter for us.

  Q74 Mr Illsley: Finally, Foreign Secretary, could you tell us a little bit more about the EU planning cell within NATO? How is that developing and is there any danger of it duplicating existing NATO structures?

  Mr Straw: Yes. A lot of work has been going on on this, both about where it should be housed, how it should be housed, who should be alongside it and its numbers. There has been a debate among the partners over this. We have been concerned to ensure—and I personally have taken a lot of interest in this—that it does work as efficiently as possible and with as light a touch as possible, and that is where we have got to.

  Chairman: Foreign Secretary, I would like to turn now to broad questions of enlargement, the next stages of enlargement, the new neighbours and so on. Mr Olner will begin.

  Q75 Mr Olner: Foreign Secretary, before we get on to enlargement, one of the difficulties that has been faced is one of the 25, of course, is Cyprus and Cyprus still sadly—and I am sure you share that sadness—is divided. I know you said in a letter to us on 17 May I believe that as a country we are going to work to encourage tourism to Northern Cyprus and to have political contacts with Turkish Cypriot leaders. Can I ask how far down the road are we on that? I think it is tremendously important, seeing as the Committee has just announced it is going to do a new inquiry into Cyprus and the situation.

  Mr Straw: You will be familiar with the fact of the referendum and its outcome. We discussed the matter at the end of April EU General Affairs and External Relations Council. We invited the Commission to bring forward comprehensive proposals to seek to end the isolation of Turkish Cypriots in the mainstream of the European Union, with particular emphasis on economic integration. I think my letter to you, which I have somewhere here, which was subsequent to that meeting, spelt out what the EU had agreed in that respect. We met on the Monday 26th, there was a regulation passed on the Wednesday which governed the green line to provide a model on which to base the new trading regime. The EU regulation established special rules concerning the crossing of goods, services and persons to take account of the fact that the Government of the Republic of Cyprus does not exercise effective control over the whole of the island. There are also proposals, which we await, from the Commission for spending the 259 million euro structural funds earmarked for helping the north ". . . catch up" with the EU acquis. Mr Olner, you will be aware that although the Government of Cyprus in practice represents only the Greek Cypriot side of the green line all citizens of Cyprus, north and south of the green line, are EU citizens and the territory as a whole is now part of the territory which has accepted its membership of the EU. That was the basis on which in the EU we accepted Cyprus's application. It is a complicated situation but what our policy was, is and will remain is for a Government of Cyprus representing a unified island being able to represent all Cypriots within the Council of the European Union.

  Q76 Mr Olner: On that basis it may well take, sadly, a time to achieve, will Northern Cyprus have access to all of the EU institutions and will they be able to play, as part of the island of Cyprus, a role in the European Union?

  Mr Straw: We do not recognise the so-called TNRC as a state in international law. We do not as a nation and neither does the European Union. Indeed in my letter to you I say we shall not recognise the north as a separate independent state. There is no question of any so-called government from a separate independent state of Northern Cyprus sitting around the table in the European Union. What we want to see is all the citizens of Cyprus, north and south, effectively represented in the European Union by a Government which represents north and south, that was the purpose of the Kofi Annan plan.

  Q77 Mr Olner: I accept that but how do the citizens of Northern Cyprus make their voice known in the European Union?

  Mr Straw: First of all, by easing the restrictions on movement both in terms of trade and of people, by contact with them and by encouraging a process of political dialogue. There was a unanimity in the meeting that the people of Northern Cyprus should not be penalised for the fact that they voted in favour of the unification plan, far from it. We have obligations to them and we should follow those through, obviously in a manner consistent with our overall view about Cyprus which is that we are seeking a unification of the island not a division of it.

  Q78 Mr Mackay: Continuing on Cyprus, Foreign Secretary, I think we all fully understand why it would be wrong to recognise Northern Cyprus. Having said that, do you agree with the Commission for Enlargement, Günter Verheugen, when he attacked Tassos Papadopoulos, and I quote ". . . for misleading the European Union by pretending to support the Annan plan but campaigning against it". Those are strong words but they look to many of us to be accurate. Would you support the Commissioner?

  Mr Straw: Can I just put it this way. Hard things were said at the time of the campaign for the referendum. I think we want to put all that behind us and look forward to constructive relationships and to a bridging of these problems. Anybody who knows the history of Cyprus, north or south, knows that it arouses strong passions, particularly among the residents north and south about what they perceive to have happened. In this respect it is not that different from the kind of passions that we all know in respect of Northern Ireland. We also know from Northern Ireland that the best way to try and help resolve these is to look forward rather than keep raking over the coals so that is what we are trying to do.

  Q79 Mr Mackay: You said, rightly, a moment ago that the people who live in the north of Cyprus should not be penalised for voting for the Annan plan, in fact the opposite. Is not the most practical way to ensure that we allow international flights into the north which would be the single best gesture to improve not just tourism but the whole economy of the north?

  Mr Straw: The issues of trade, which obviously include transportation both in terms of the opening of the sea ports and the opening of the airports, are on the agenda. I cannot say exactly when firm decisions will be made. In my letter to you, I talked about a balance to establish a clear legal framework and to facilitate trade and other links between the two parts of the island. A regime to allow direct trade with the north would need to strike the same balance. That is on the agenda.


 
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