Tag: Ukraine

  • Sir John Major’s Speech at Attlee Foundation Lecture – 18 March 2026

    The Attlee Foundation Lecture 2026, delivered by Sir John Major at King’s College London on 18 March 2026.



    ATTLEE FOUNDATION LECTURE 2026

    A PIVOTAL YEAR FOR DEMOCRACY

    First of all, I would like to thank the Attlee Foundation for inviting me to deliver this Lecture.  I am privileged to be here this evening, and delighted to be at King’s, where I feel very much at home.  

    It is a quarter of a century since I left front line politics, but I still have an observer’s interest in our world and our country.  Both are in an uneasy state, and actions – or in-actions – this year may be pivotal to the future.

    Let me do a little ground clearing.

    Some may be surprised that a former Conservative Prime Minister would deliver a lecture in honour of a former Labour Prime Minister.  

    They shouldn’t be and, in a world of grown-up politics, they wouldn’t be.  

    It is easy to admire Clement Attlee for his record of achievement;  his political courage;  his resolute defence of our country’s values;  his creation of the NHS;  his commitment to public service;  and the manner in which he put the interests of his country before his own – or those of his Party.  

    Of course, were he and I both active in politics today – there would be differences of policy, of priority, of philosophy.  We are political opponents.   But mark this:  Opponents, Yes.  Enemies, No.  

    Democratic Parties do have enemies in politics, but they are populist insurgents who seek to divide and not unite.  

    They are careless of the strife they cause.  They trade on grievances in our society.  Where ills exist – they exaggerate them.

    They then blame those ills on minority groups of a different race or religion.  It is ugly politics that deserves no place in our country.

    Our political system would work to better effect – and be more honest – if mainstream politicians acknowledged that their priorities – I emphasise priorities – have far more in common than they wish to admit. 

    That may surprise you, but consider this:  all our three main Parties are in favour of greater economic wellbeing;  secure defence;  decent public services;  thriving health provision;  affordable housing;  flourishing education;  and healthy employment.  

    This is what we expect in our liberal democracy, and when these priorities are not delivered the nation becomes disenchanted ‒ as it is now.

    We are not alone.  

    Over the last two decades, democracy has been retreating around the world.

    Nearly three-quarters of our world live outside democratic protection.  

    Autocrats undermine democracy to entrench themselves in power.  If we do not recognise the dangers of that, and protect ourselves against it, autocracy may, one day, overwhelm us.

    At my age I have a limited lease on the future, but let me say with all the force I can muster:  if we were to cast aside our mainstream politicians – as polls suggest we may do – then a gap would open up, and that gap may not be filled by democrats.  

    So – if you rejoice at the dire polling of Labour and the Conservatives ‒ beware of what you wish for.  

    If they were to fall, who knows what will rise:  you may find that autocrats-in-power do not share the democratic instincts of the politicians you have discarded.  

    Many people worry about what lies ahead.  Some are bewildered, even frightened, by the changes in our world.  It would be a self-inflicted wound if they turned to the extremes of politics because democracy was not speaking for them.

    We know democracy can succeed in the most unpromising circumstances:  the Attlee Government proved that eighty years ago.  

    After a crippling war, our country was near bankrupt.  The War had enhanced our reputation for courage and persistence, but left our immediate prospects in tatters.  Six years of conflict had left families bereaved, cities destroyed, and the Exchequer bare.  

    The British people had endured years of hardship.  The age of deference was on its death bed – and our battle-weary predecessors demanded a brighter future.

    In retrospect, 80 years on, the 1945-50 Government, and its Prime Minister, are held in high regard.  The problems they ‒ and their successors ‒ faced, and overcame, should be an inspiration for what could be achieved today.

    But there is no room for complacency.  No reason for the careless assumption that democracy is so entrenched it cannot be undermined.  It can – and around the world – it is.  

    Electors should treat with suspicion rash promises from infant Parties that have never experienced the complexities of democratic government.

    Our liberal-democracy is not perfect, but it is far preferable to any of the alternatives.  It has checks and balances unknown to other systems.  It has the ability to dismiss the inadequate, and haul down the over-powerful.  

    It exists to serve the nation.  It does not compel the nation to serve the State.

    Our political system is an enabler.  Its policies enable peace, resists war whenever possible, and promotes justice, wellbeing, growth, care where needed, enhanced life expectancy, and transformation of life opportunities.  

    Along the way it makes mistakes, but its purpose is to extend freedoms of choice and action that more extreme politicians would curtail.

    Butbut … we cannot ignore the uncomfortable truth that, in recent years, our democracy has fallen short of expectations.

    People have faced higher costs and rising taxes.  They have seen no real increase in their post-tax income – nor in their standard of living.  

    When – over a period of many months – our three mainstream Parties collectively register barely 50% in opinion Polls it is time to be concerned over what may lie ahead.

    In a bid to reassure electors, politicians talk of “reform” to come.  It’s a useful word – reform.  It can mean everything or nothing.  Reform means change.  Change means upheaval.  Upheaval provokes opposition.  

    Upheaval may be necessary but – sometimes – it is better to make progress on the everyday issues of politics.

    Is policy strangling initiative or encouraging it?

    Are tax levels deterring savings and investment?

    Is planning holding back housing for the homeless and the would-be home owner?  

    Does the benefit system encourage or discourage unemployment?  

    Can the triple lock be targeted to pensioners who really need it?  

    Can Parliament act more strongly against the misuse and abuse of social media and, if so, how?

    Can we fund the Armed Forces we need?  

    Will this mean more spending – or savings elsewhere?

    There is certainly no shortage of issues to settle.  But it is not only policy that needs updating:  so does our political system.

    Politics has a grubby underbelly that can make it look seedy.  

    We need a spring clean.

    Is political funding corrupted if ‒ with no qualifications other than money ‒ donors receive honours or preferential access to Ministers?  

    Should political donations be capped to protect against undue influence?  I believe the answer is – yes.

    Should the House of Lords be elected or appointed?  An elected Upper House would meet democratic aspirations, but would be a monumental mistake.  It could – and would – challenge the primacy of the Commons and create constitutional confusion.

    It would not retain the wisdom and lifetime experience to enable it to discharge its primary function of revising legislation.  It would not be a partner to the Commons:  it would be a rival.

    Recent General Elections have thrown into doubt the continuing validity of the “first past the post” system of voting.  

    As voting preferences spread more widely it provides distorted results.  The democratic case for examining this is growing, although changes would come with distinct drawbacks.  

    Should Members of Parliament who defect to a different Party be compelled to face a by-election?  Constitutionally, no – as they are deemed to be elected as individuals.  

    But, in the real world, they are elected as representatives of a political Party.  So – yes:  logic and common decency suggest they must face the electorate again in a by-election.  

    If the House of Commons wishes to regain the respect it has lost, it must justify the status-quo – or change it.    

    And one further thought:  is it not time to recognise that Brexit has failed to deliver its many promises, and the loss, each year, of £100 billion of European trade, and £40 billion of tax revenue is doing enormous damage to the lives and livelihoods of the British people – and their future?  

    Money is the root … of good public services.  Imagine how much better they – and our military power – might be if that money was still available to the Exchequer, instead of being thrown away with such a casual disregard of the consequences.  

    I do not believe we can fully rejoin the European Union in the near future.  But economic wellbeing tells us we should re-build relationships with our closest neighbours as swiftly and as comprehensively as possible.  

    When we left the EU, we broke up a European alliance of 500 million people.  We did so as America – with its 340 million citizens – pivoted away from us towards the East.  

    Suddenly, our closeness to the European and American power blocs was reduced.  This left the UK more solitary and vulnerable.

    My father was brought up in America, and taught me to admire the virtues of that great Republic.    

    Our two countries saw the world through similar eyes, and had much in common.  But our relationship, once rock solid, is now more nuanced – and more distant.  

    After WWII, the Marshall Plan helped rebuild shattered European economies and – in the post-war years – America was the rock upon which democracy prospered.

    America’s influence was overwhelmingly benign when President Truman committed to “support free people who are resisting attempted subjugation by armed minorities or by outside pressure.”

    America’s purpose, echoed by later Presidents, was to secure a freer – and safer – world, in which the strong pledged their protection of the weak.  No fee was asked.  No deal demanded.  No investment or payment expected.  It was altruistic policy in a harsh world.  

    It was what made America great.  

    I saw this first hand at meetings in the White House and Pentagon, when the most senior Military personnel of both countries were present.  Their mutual respect and friendship was self-evident.  Trust was instinctive and total.  Nothing was held back.

    Our political and military relationship was one of shared values – on every issue from human rights to free markets.  So I know what we had, and deeply regret that it seems to be falling away.

    Since the turn of the century, America has economically out-paced both the UK and the European Union.  At the millennium, the GDP of America and the EU was similar.  Today, America is half as big again.

    There is now a new tone from America.  President Trump argues that America is being “ripped off” by trading partners and – without consultation – he raised tariffs on imports from wealthy and poor countries, whether friend or foe.

    When the Supreme Court ruled these to be illegal, he reimposed a 15% general increase using different powers not yet tested in Courts.

    Uncertainty was reinforced by the President’s dismissive attitude to Europe, his demands for the ownership of Greenland – the territory of a NATO ally – and his expressed view that the incursion of Ukraine by Russia was solely a problem for Europe.

    This is not the America we have known.  

    Vice-President Vance also accused Europeans of being a greater threat to freedom in Europe than Russia.  That was offensive and absurd in equal measure.  

    It was President Putin who sent Russian troops to invade Ukraine ‒ not vice-versa.  It is Russia and Putin that conducts a “shadow war” of mis-information;  takes cyber action aimed against Western Europe;  and murders political opponents within Russia and – as we saw at Salisbury – in other territories, too.

    When President Zelensky visited the White House to seek support, he was “ambushed” – no other description suffices – by President Trump and Vice-President Vance.  It was Zelenskynot Putin – who was accused of “gambling” with World War III.  This turned truth on its head.

    Yet when President Putin arrived in Washington, he was greeted with full honours.  Putin revelled in his red-carpet reception, and appeared able to persuade President Trump that black was white.  

    President Trump’s priority is set out in two alluring slogans:  “America First” and “Make America Great Again”.  This explicitly puts self-interest before the wider international interest, and has begun to further pry apart the “rules based” system that was built and led by America herself.  

    That system was fraying ‒ but is now fracturing.  If diplomacy, consultation and co-operation breaks down, we will be moving towards the law of the jungle with which no country should be content – and in which no country is safe.

    My fear is the risk of stepping into a world in which “might is right”, and the mighty behave in an unprincipled and lawless manner.  

    In such a world the rights and prosperity of weaker nations are subordinate to the will of the strong;  greater powers are deferred to – not because they have justice on their side – but because they have the power to compel acceptance of their will.

    Such a concept is truly terrifying.

    How different that is from our expectations.  In 1949 – one year after the Marshall Plan was put into action – the NATO Treaty was signed.  

    The Treaty included an Article 5 Agreement that an attack on one Member will bring all others to their defence.  

    But is that still so?

    Will America – with all her military power – still be willing to come to the defence of a NATO ally?  NATO is, of course, a defensive – not an offensive alliance.

    I hope so.  But the Vice-President is on record as saying “I just hate bailing out Europe again”.  The American Defence Secretary added:  “I fully share your loathing”.

    Were these remarks merely frustration?  Or were they voicing future policy?  

    It is striking that neither comment was disowned by the President.

    If America did resile from Article 5, it is hard to see how an American could remain as Supreme Allied Commander.  Yet it is inconceivable – given America’s great military power – to imagine anyone other than an American leading NATO, as it is currently constituted.

    I suspect that, underlying all this, is America’s determination that Europe should bear a higher share of NATO’s overall costs.  That would be fair.  The burden has fallen too heavily – and for too long – on America’s shoulders.  

    American power was vital in winning both World Wars in the last century, although history tells us that she joined World War I only in 1917 after German submarines sank American ships.  

    And, in World War II, only after Japan attacked the American fleet at Pearl Harbour in 1941. 

    The worry for the future – to voice the private fear – is that past American Presidents only gained the support of their public to enter the two World Wars after America herself was attacked.  In future, without that imperative, can we be utterly confident of American participation?

    President Trump – against his own campaign oratory – has shown himself prepared to use America’s muscular power on overseas missions.

    I am conflicted by the American-Israeli attack on Iran.  

    In one sense, this was a wholly understandable response to Iran’s behaviour over many decades.  

    I have no illusions about the distasteful nature of Iran’s clerical leadership.  They unleash terror ‒ and fund murder and mayhem through their proxies.  

    This brutal regime has shown it is willing to murder any of its own citizens who are brave enough to protest at the mis-government that scars their lives.

    So ‒ why am I conflicted?

    It is because of what was not done ahead of any military action and ‒ crucially ‒ the wider implications beyond that.  

    There was no diplomatic attempt to obtain a UN Resolution to give legality to the war.  No nation – other than Israel – was even consulted.

    This was despite the fact that the war was bound have much wider repercussions across the Middle East – and beyond.

    Many nations will pay a price for this war.  

    Hostilities will not end when bombing stops.  Old hatreds will linger.  New hatreds will have been born.  A new generation may have been radicalised.  Retaliation may be deferred – but it is likely to come.  

    This war will have a long tail.

    Its aims have never been clear and – since the conflict began – they have been changing by the day.  No exit strategy is known.

    The President demanded surrender.  He is unlikely to get it.  

    For Iran, one should think Persia, and remember her history.

    Persia was a dominant world power when America and the UK were still living in mud huts.  She will not admit defeat.

    Neither America nor Israel were prepared to put “boots on the ground”.  This comforted their domestic audiences, but made regime change – always unlikely ‒ completely impossible.

    Whilst they restricted conflict to the air, American leaders encouraged Iranian citizens to take to the streets and confront well-armed Basij volunteers.  These are part of the Revolutionary Guard, which murdered 30,000 demonstrators only weeks earlier.  

    Unless – and until – the regime is seriously tottering, that encouragement to rise up is an invitation to suicide.

    In due time, the war will end.  

    What will it have done for the rule of law and the protection of the rules-based-system of behaviour that has served the world so well in the aftermath of World War II?

    The American Defence Secretary was contemptuous of …. “vague notions of international law” and the “…. stupid rules of engagement”.  

    Such disregard of law is a shameful example for a law maker to set.

    If the international rule of law is dismissed so casually, what are we left with?

    I can only speculate, but I believe we will be left with a more fearful world, in which wars may be more numerous and alliances less secure.  

    A world in which disputes are settled ‒ not with diplomacy or adjudication or agreement ‒ but by force:  the victor being the most militarily or economically powerful.

    This heralds a playground for the strong, perhaps Russia or China – or even America ‒ and a future of unease, even fear, for the weak.

    That would be a wretched legacy to pass on to the next generation.

    The mercurial nature of President Trump upends the accepted norms of diplomacy.  

    But the message for the UK and Europe is clear and unmistakable:  we must plan and enact policies to improve self-dependence.

    This will require us to raise budgets to enhance our military capacity for defence and offence.  That effort must be within NATO and not separate from it.  

    It will be an expensive and long-term commitment.  After decades of peace, Governments must now persuade their electorates that military spending must rise – perhaps at the expense of social expenditure or higher taxes?

    Assuming that can be done, countries must agree to purchase arms collectively.  And, in doing so, the weapons must be inter-operable on land, air, sea – and below the sea.  That will mean purchases from national suppliers may be less easy.

    Matters such as these – complex as they are – cannot be left undecided if NATO is to be battle ready and a credible deterrent to any hostile intent.  

    Do not misunderstand me.  I do not – in any way – wish to push America aside.  She remains the most important ally to the whole of Europe.

    For the UK, the Trans-Atlantic partnership is key to our security and intelligence.  It is in our national interest to sustain this relationship even if we are in dispute on other issues.  

    At No10, during Gulf War I, I experienced first-hand what could be achieved when working closely with one of the finest foreign policy teams America has had:  George H W Bush, James Baker and Brent Scowcroft.  President Bush and I never held back from speaking truth to each other, and never once did that impair our relationship.

    But today, there is a tendency to tip-toe around the President to avoid upsetting him.  Although I understand that, I do not agree with it.  

    Sovereign States that demean themselves will be seen as subordinates and not allies.  That is not a role for the UK.  

    If we disagree with American policy we should say so – as a friend that cares for the wellbeing of an ally.  Statesmen do this in private ‒ not in public.

    Our frankness may cause uncomfortable interludes, but we must never lose sight of what is morally decent and right, and stand up for what we believe.  

    In all our years of history, this is what the UK has done:  it was right then – and it is right now.    

    Let me return to the words of Clement Attlee:

    “…. peace does not come about through wishful thinking.  Peace is not just a negative absence of war;  peace means that you get rid – as far as you can – of the causes of war.”

    What do we mean by “Peace”?  It seems an easy question – but is not.  

    To fully enjoy peace, men and women need to be free.  By free, I don’t only mean to be at liberty.  I mean to be free of war;  free of fear;  free of want.  I mean freedom to worship without persecution, and freedom to speak against injustice and oppression.

    The concept of peace is wide-ranging.  Peace of mind is very precious but ‒ in the 21st Century ‒ a majority of people in the world don’t enjoy it:  the growth of stress, of pressure, of mental health, tell us that we are far from that ideal.

    There has been progress.  Many diseases that killed or crippled have been overcome.  Child mortality has fallen dramatically.

    Hundreds of millions have moved out of dire poverty;  similar numbers now have fresh piped water and electricity.    

    But, as rich nations reduce their aid budgets, poor nations continue to struggle – and the international liberal order loses its attraction … and its potency.

    There is an ancient responsibility upon every generation to leave behind a better world than they inherited.  We are not doing well on that front.  

    Our young generation has no direct experience of war.  They have grown up in a better environment.  They travel more.  Intermingle more.  Inter-marry more.  They are blind to colour and ethnic background.  They are free of many of the inhibitions and prejudices of their forebears.

    They do not view ancient enmities through the same eyes as previous generations.  They welcome communal action on issues like climate change that can only be overcome by working together.

    “Peace” ‒ said Attlee ‒ “does not come about through wishful thinking …”

    Indeed not….. not in any form.

    It comes about by working together – with civility, respect, fortitude, and mutual understanding – to diminish the causes of dispute and strife.  

    If we truly wish to create a safer world, that is the route we must take. 

  • Sir John Major’s Speech at the Inaugural Lord Lothian Lecture – 15 October 2025

    The text of Sir John Major’s speech to the inaugural Lord Lothian lecture at the Global Strategy Forum on 15 October 2025.


    When Clare and Mary asked me to deliver this inaugural lecture on behalf of the Global Strategy Forum, it was easy to say “Yes”.  

    Michael and I became friends – and allies in politics – from the moment we met 50 years ago.  We came from different backgrounds, mixed in different circles, had different leisure pursuits ‒ but we shared the same political space, and beliefs about the purpose and practice of politics.  

    Michael was an easy colleague.  Loyalty and moderation were at the very core of his politics.  He believed in the power of persuasion, and the essential decencies of human behaviour ‒ even when faced by adversaries that denied both of those virtues.

    He was clever, compassionate, sensitive and intuitive and – where he saw wickedness or hardship – he felt an obligation to put it right.  

    Michael carried his compassion as a shield against bigotry.  He preferred to offer a hand up not a put down.  He wished to understand rather than condemn, and to face up to challenges rather than pass them by.

    His focus was progress, not regress;  the future not the past;  and his aim was to put right what was wrong.

    When, in the early 1990s, I was trying to build a Peace Process to end violence in Ireland – North and South – I knew I would benefit from the abilities of Paddy Mayhew and Michael Ancram.  They were both custom made for the task, and never once did they disappoint.  

    Michael and Paddy had extensive private contact with all the Northern Ireland Parties:  often a frustrating experience, but both had the gift of listening – amid, of course the occasional Paddy eruption ‒ and, slowly, progress was made and early trust established.

    It was essential preparation for more challenging meetings that were to come.  When we reached the stage of face-to-face discussions with the IRA Michael ‒ as Minister of State ‒ was the obvious choice for the initial contact.  

    This was at a time when such responsibilities carried great personal risk and thus ‒ before appointing Ministers to the Northern Ireland Office ‒ I would always ask if their families were content.

    It is to their credit, and that of their families, that no colleague invited to serve stepped away from the challenge.  And so it was with Michael, who didn’t hesitate.  

    There was deep suspicion of the Peace Process from many of the Northern Ireland Unionists, and their allies in Parliament and Press.  Michael was an arch-comforter, damping down Unionist fears of “secret deals” or “unadmitted concessions” to Sinn Fein or the IRA.  Progress was not easy.

    I recall briefing John Smith, the then Labour Leader, in my office in the Commons.  Whisky in hand, John offered “help in principle” and chuckled as he added “but you do know there are no votes in it”.  Nor were there – but that was never the purpose.

    A Belfast without bombs, with blood ties not blood flowing, a generation able to grow up without inheriting the hostility and hatred of community division.  That was the purpose.  And Michael’s instinctive character of peacemaker made him perfect for the job.  

    His brief was tough as the IRA peered suspiciously at every proposal.  History was a bar to progress.  The memory of past grievances was ever present:  the Black and Tans, the Hunger Strikes and Bobby Sands ‒ these, and much more, were always a block to trust.  

    But Michael’s efforts were brave and unrelenting.  The progress he made with Gerry Adams and Martin McGuinness paved the way for Paddy Mayhew to join him for more in-depth discussions.  

    He, Paddy and I were hugely frustrated that we were unable to complete the Process ‒ but were comforted in the knowledge that – against all predictions – we moved the dial from conflict towards peace:  and delighted that Tony Blair and New Labour completed the work.  

    Today, in Ireland – North and South – we are at a place where none of us dared to hope we would be.  

    Michael truly deserves his place in the pantheon of Irish peacemakers.

    * * * * *

    There are times ‒ and now is one such time ‒ when change seems to come at a gallop.  Between Ancient Greece and the 15th Century no-one challenged the wisdom of the ancients until the Renaissance.  

    A 10th Century European would easily have recognised 15th Century European life:  a child today would barely recognise the way of life 50 years ago.  

    As we meet, our world is in an unsettled state.  Liberal Democracy is in retreat.  Autocracy is thriving and spreading.  Globalisation is fraying.  The post-war consensus is weakening at best and – at worst – may be on its way to breaking up.  

    As for our own country, we now have fewer committed friends than once we had.  We need to remedy that.

    As these trends thrive, I hope nation states recognise the risks, step up, urge conciliation and begin the repair of our failing institutions.  Leaders need to be proactive – not locked in a defensive crouch.

    In our unsettled world, only an unpredictable America, and a hard-to-read China, are political, economic and military super-powers:  no other country comes close.  Their future behaviour and bilateral relationship are critical to us all.  

    Both countries know they are destined to be rivals ‒ and allies only on individual issues.  The world needs them to find an accommodation with each other, while they must persuade their domestic audiences they are hard-nosed defenders of their own philosophy and national interests.

    There are trip-wires ‒ most obviously Taiwan ‒ but, if diplomacy and self-interest prevails, with trade and regular contact uninterrupted by threats of high tariff impositions, then a long-term, and mutually beneficial relationship is entirely possible ‒ but only if they will it.

    If they do not, and lapse into serious conflict, then they could set the world aflame.  

    But I don’t foresee that.  Sensible diplomacy and pragmatic self-interest should be able to prevent full-fronted confrontation whenever – as is likely – frustrations and disputes arise.  

    CHINA

    Historically, China has been the victim of military conflict, not the aggressor.  That said, she has been dramatically increasing her military capability, at an extraordinary pace.  No-one should underestimate the scale of this, nor her growing capacity to enforce her will militarily.  

    Events ‒ and American policy ‒ may determine the future:  if America withdraws from her post-war role in favour of more isolation ‒ will China step up and try to fill it?  The answer to that is likely to be “Yes”.

    There is much we neither know, nor understand about China.  She is an enigma.  The first verse of her National Anthem is encouraging:  telling citizens to “Arise, you who refuse to be slaves”.  

    It’s an enticing invitation, but not to be taken too literally.  Perhaps my view is cynical, but I have vivid memories of Tiananmen Square.  Those who did arise were soon silenced – and none too gently.  

    As China has grown in power, she has begun to assert herself in Asia, and increase her influence worldwide.  She is an avowed opponent of democracy, which she considers an alien and inefficient form of government.

    China is sufficiently self-confident to break international Treaties.  Persecute the Uighurs in Xinjiang.  Threaten Taiwan with a military assault.  Ignore promised freedoms to Hong Kong.  

    All that ‒ and multiple cyber threats and industrial larceny – may be laid at her door.  These are the actions of an ambitious nation prepared to bend others to her will.

    Her trade and investment grows each year.  A majority of countries around the world now conduct more trade with China than America ‒ in some cases, far more.  Apparently blind to the implications of this, current American policy on tariffs may widen that lead.

    I have no doubt our government wishes to have a good relationship with China.  Who would not?  But it cannot be a subservient one.  China would not respect that.

    AMERICA

    For most of the post-war years, America has been the rock upon which democracy prospered.

    Her influence was overwhelmingly benign when President Truman committed to:  “support free people who are resisting attempted subjugation by armed minorities or by outside pressure.”.

    So was it when, over a decade later, President Kennedy committed to confront: “the common enemies of man ‒ tyranny, poverty, disease and war.”.

    The purpose behind these noble sentiments was to create a freer and safer world, in which the strong pledged their help to the weak.  No price was asked for this.  No deal demanded.  No investment or payment expected.  

    It was high politics in a harsh post-war world, when to help others was not seen as a business opportunity.  This approach, it seems, is now out of fashion.

    Today, America has a less altruistic policy.  The President’s ambition is to “Make America Great Again” – although it is puzzling that being the richest and most powerful nation in the world is not already seen as an indication of greatness.

    In the MAGA quest, America has embraced national self-interest.  The President ‒ with the support of the world’s richest man ‒ abruptly cut off aid to the poorest people in the world and those organisations whose role is to cure the diseases that most afflict them.  

    Forecasts of the long-term implications of this are dire.

    A Report in the Lancet tells us that US aid alone prevented over four million deaths ‒ one third of them children ‒ in every year of the first two decades of this century.  That support has gone.  

    It is a harsh policy that ends such a benevolent approach, despite the pain and loss it will cause.  But America is not alone in turning her face away from the human rights of the weak.

    Other countries, including the UK, have cut aid.  I know that times are tough for us and many others, but we are not facing mass hunger, and our sick are not going without medicine or care.  

    In reflective moments one may wonder:  where is the Good Samaritan when he is most needed?  

    I believe the scale of cuts to aid is wrong on practical as well as moral grounds.  In due time, whenever more people flee poor countries for richer pastures – as they will – we may regret how little we did to keep them settled where they are.  

    President Trump has also imposed tariffs on imports from most of the world in pursuit, as he cheerily puts it, of:  “making America richer and richer by many billions”.  

    This not only hurts allies, some wealthy, some not – but also countries that are poor and, in some cases, very poor indeed.

    Apart from filling the US Treasury coffers, the tariffs are justified by the claim that they are imposed upon countries which had allegedly been “ripping off America” for years.  If that were so, they were remarkably unsuccessful given America’s economic pre-eminence.  

    It may be ‒ when American consumers realise that the tariffs are raising prices in their own High Streets – that they might consider it is they who are being “ripped off”.  American taxpayers please note:  rising prices are a regressive tax.

    I was brought up to admire America.  I still do:  there is much to envy.  But I don’t admire her present approach.  Nor should the American people.  It comes at a high cost to her reputation for free trade and sensible economics.

    Many countries will be bruised by the new tariffs, and resentful that they felt forced to accept for fear of more severe impositions if they did not do so.  

    In what passed for “negotiation” I do wonder what negotiating power smaller nations had to deploy?  “Little or none” is my guess.  They faced a choice of submitting – or a worse deal.  If nothing else, the tariffs showcased the raw power of America.

    Our flexible English language has a word for pressure imposed by the powerful on those who are weaker.  It is a good old word:  we call it “bullying”.  We may fear the bully.  We may accommodate the bully.  But we never forget the bullying.

    There is no doubt that America is a great power.  But with that power comes great responsibility about how it is used.  

    The President needs to understand that any casual disregard of long-standing international mores risks undermining – to the point of destruction – the rules-based system of laws and behaviours that have been a shield and guardian to the world over the last seventy years.

    Leaders who do not make that clear – preferably privately, but unmistakably – are betraying their responsibilities.

    Allies and opponents alike are baffled by the President’s inconsistency.  

    Such unpredictability may be a useful enforcement tactic in negotiations – as we have seen – but it carries a dangerous risk of misunderstandings and misjudgements that could be very damaging in the longer-term.  Trust and certainty matter in Statecraft.    

    RUSSIA

    I wish to turn – but briefly – to Russia.  She is a real and present danger to democracy.  The war in Ukraine is indisputably Putin’s war.

    Putin has moved from being an authoritarian Leader to a totalitarian one.  There seems to be no domestic check on his behaviour.  Outspoken opponents disappear or die mysteriously.  Planes fall from the sky.  So do opponents from high windows.  National assets are looted to support Putin’s cult of personality.

    In war, Russia shows no restraint.  The civilian is as much a target as the soldier.  Even Ukrainian children are stolen and indoctrinated against their own family and country.  Let me not mince words:  that is wicked to the core ‒ no other description suffices.

    We should not be surprised.  Russia has become a repressive rogue State, hostile to democracy.  The controlled media feeds civilian Russia with untruthful propaganda that includes bare faced lies about the West.  The truth – in Russia – is whatever Putin wishes it to be.

    Russian citizens – patriots by instinct – are fed untruths throughout their lives and, because that is all they hear, they believe it.   

    By any yardstick, Putin is a warmonger, not a peacemaker, and little will change in Russia until he is gone ‒ at which time someone will be brave enough to list his many crimes.

    It was revealing that, when Prigozhin, Leader of the Wagner group of mercenaries marched on Moscow, no-one of influence spoke up for Putin conscious that he ruled by fear ‒ nor against him knowing it would be life-threatening to do so.

    I hope no Western policy maker forgets that Ukraine is our battle as well as theirs:  even though it is Ukrainian blood that is being spilled, our own interests are also at stake.  If Putin gains from war, his demands will grow and not diminish.  

    The present outlook is that, unless America and Europe combine, in a far more powerful response to Russia’s aggression, the war will continue – perhaps for a long time.  

    Hopefully, President Trump will see Ukraine through the eyes of his Western allies, and use America’s power to protect Ukraine and deter further Russian adventures.  If Russia loses, the world wins.    

    And what a boost it would be to confidence and the global economy if wars in Ukraine and Palestine were to end.    

    Conflict, of course, takes me to Gaza.  

    GAZA

    It would be a miserly mind that does not welcome the ceasefire that has been agreed.  The killing has stopped, the hostages freed and – I hope – aid will swiftly alleviate suffering in Gaza.  

    I warmly congratulate President Trump, Qatar, Egypt – and, I suspect, contributors here in the UK – for this advance.  On this occasion, the President’s unconventional approach succeeded where others had failed, and a breakthrough to a better future may have begun. 

    But – it is a beginning not an end.  A ceasefire – not a certain and continuing peace.  Ahead lie serious questions, the answers to which will require good luck, good intentions and a herculean effort over a long period.    

    Wars have consequences that endure.  

    The bombs may stop, but will Hamas surrender weapons?  Who will rebuild the bombed-out wreckage and pay for it – with years of construction at a cost of many billions?  

    Will any Israeli Government accept Palestinian aspirations and, if so, can it be delivered against domestic opposition?

    Is a “Two-State” solution still even possible if Israel sets her face against it?  If not, what is the future for Palestinians?

    What, under any final agreement, will happen to the illegal settlements?  

    Will land be returned?  Or compensation offered?  Will future settlements be prevented?  

    Can Israeli-Palestinian relations be restored?  The Hamas attack on Israel killed 1200 people, and took many hostages – many of whom have since died in miserable circumstances.  It was an act of profound evil that led to an unrelenting response.

    In pursuit of Hamas, Gaza was turned to rubble.  The stated objective was the complete destruction of Hamas, which was never likely, and has not been achieved.  

    What was “achieved” was over 60,000 civilian deaths and many life-changing injuries that will not be easily forgotten.

    Nor will the blockage of aid;  the harrowing sight of starving men, women and children;  the image of dead bodies in ruined streets;  or the displaced families being herded around from place to place.  

    It will be hard for both sides to find forgiveness.  The Palestinians dreamed of a homeland.  Israeli Ministers wanted (I quote) to “bury the idea of a Palestinian State”.  

    This is not easily reconciled.  The risk of a legacy of hate passing down to future generations is very real.  Over time, war damage can be re-built.  But can minds be changed?

    Israel must also repair relations with much of the world.  Her approach – including the colossal misjudgement of banning the media from the war zones – lost the Israeli Government the benefit of any doubt over its actions. 

    The whole world knows the history of the Jewish people.  They have been treated cruelly throughout the ages.  But some of the actions of the Israeli Government lost them the sympathy and understanding they had earned throughout the post-war period.

    I have Jewish friends whom I cherish, and it is heart-breaking that antisemitism and fear has been returned to their lives so unfairly in so many countries ‒ not least our own.  

    Hundreds of thousands of Jewish people around the world have shown their dismay at the conduct of the war.  They do not deserve to be treated as complicit in what has been happening in Gaza and the West Bank.

    It is the Israeli Cabinet – and they alone – who must answer for their decisions.

    LOOKING OUTWARD

    As more nations look inward I see opportunities to look outward.  The UK’s relative “hard power” has fallen in recent decades and, even though events suggest that will be repaired – as it must – it is still wise to build up our “soft power”.

    Our links to Europe and America may be looser now than once they were – and that is a loss – but it does free us up to be a far more independent voice in our troubled world.  

    An Age of Reason is badly needed, and we can help usher it in.

    Let what we say about international policy echo for its good sense:  let it have a clarity beyond pious statements issued for the sake of form.  I wish our voice to be heard and our nation to earn respect in a role that no other nation has taken up.

    There is ample scope and appetite for such a voice.  Much of what should be said is held back ‒ and why?  Is it because of diplomatic niceties;  an unwillingness to stir controversy;  or common or garden plain funk?

    Meanwhile, the post-war institutions are failing to deliver what the founders expected of them.  Self-evidently, hampered by its own rules, the United Nations is not delivering peace and security. 

    The membership of the Permanent Five is out of date and needs reform.  A credible option is to enlarge it to embrace countries such as India, Germany, Brazil, and end the single nation veto on action that so often leaves the UN looking powerless when a powerful lead is vital.    

    As a founding Member of the Permanent Five, the UK is well placed to argue the advantages of such a change.

    Our worldwide reach and assets leave us in a position to be a candid friend, a conciliator, a conscience in support of those who have no voice of their own.

    We should dust off our “soft power” assets.  Our voice, our global spread, our language, the BBC World Service, our Universities, our culture – especially our theatre.  Until recently, I would have added our leadership in Overseas Aid.  I hope, soon, to be able to do so again.    

    I hear the objections ringing in my head.  It’s altruistic.  It’s pointless idealism.  It will come to nothing.  It will gain us nothing.  Perhaps not.  

    But it will gain us respect.  Friendship.  It will help our voice resonate far and wide.  More than anything, it is also the right thing to do.  In our mercenary world, is that too naïve a reason?

    We British are 70 million people in a world of 9 billion.  We are not the mighty power that once we were.  We cannot compel as once we could.  But we can offer the world an example, and speak out for the decencies and civilities that lie deep-rooted in the British instinct.

    What do we stand for as a nation if not for that?

    I will close as I opened.  

    I spoke of Michael’s belief in the power of persuasion and the decencies of human behaviour.  I reminded myself that where he saw wickedness or hardship, he felt an obligation to put it right.  

    I believe – throughout our world – there is audience crying out for such qualities of leadership.  

    Let us show that it can be done. 

  • Sir John Major’s Interview on The World This Weekend – 16 February 2025

    The text of the interview between James Naughtie and Sir John Major on BBC 4’s The World This Weekend on 16 February 2025.


    JAMES NAUGHTIE

    Sir John Major, who combines a razor sharp observation of the here and now, with his own experience as Prime Minister. Coming to power soon after the fall of the wall, deeply involved in the chaotic translation of the Soviet Union into the Russian Federation and a leader who found himself involved in armed conflict in the first Gulf War shoulder to shoulder with an American president, George H W Bush. So I asked Sir John to put these days, now, in Europe in perspective. How serious did they seem to him? What change did he think was afoot?

    SIR JOHN MAJOR

    There’s no doubt in my mind that the world is changing and that it’s reshaping, that it may not be reshaping in a way that’s congenial to the west and that it’s a very unsettled time indeed. Many of the gains we thought we’d made over recent years, for example, as you said, when the Soviet Union collapsed, are now being reversed and you see a very aggressive Russia again in Ukraine. If they were to succeed with their adventure in Ukraine, no doubt they would be elsewhere before too long. We see globalisation retreating and there’s no doubt in my mind that democracy is threatened. It’s been in modest decline for the last 18 years, there’s an ugly nationalism growing, mostly from the intolerant right. So it is, as I say, a very unsettled time. At this particular time, the big nations, America, China, Russia, are beginning to act unilaterally, where once they would have consulted. That is a concern, because it does presage the prospect of very great and rather unpleasant changes.

    JAMES NAUGHTIE

    You allude to what’s happening in the United States and it brings us to President Trump’s dealings with Vladimir Putin and indeed to JD Vance’s speech to the Munich Security Conference. This is a kind of administration, to be quite blunt about it, you’ve never seen in your lifetime before.

    SIR JOHN MAJOR

    No, that’s perfectly true. It’s a very different presidency from Kennedy, from Nixon, from Clinton, from Obama, from the two Bushes. In fact, it’s a form of presidency I haven’t previously seen. The President’s phone call to Putin, in which we learned that negotiations to end the war would start immediately. There had been no consultation with Ukraine or anyone else. He then made concessions to Russia, which I think is fairly unprecedented, having made perfectly clear that the US troops would not defend Ukraine, that Russia might be able to keep land that Putin had taken by force and that Ukraine would not be able to join NATO. These were all unilateral remarks from the present administration in the United States to the world. Yet consider what happens if Russia can claim a win. China is going to notice that, and so will the world, and so will every tin pot dictator around the world. If America is not to stand behind its allies in the way the world has previously seen, then we are moving into a wholly different and in my view, rather more dangerous world.

    JAMES NAUGHTIE

    From what you think you have read into Trump’s dealings with Putin, that is exactly what you expect to happen?

    SIR JOHN MAJOR

    That is what he appears to have been signalling, yes, and it’s extremely dangerous and it’s hard to understand why. The Vice President’s speech at the Munich conference, a rather unlikely venue for the speech he actually made, the political signal was obvious and misguided, I think, in the middle of an election in Germany. This is just an illustration of what is happening, but if you recall, hundreds of thousands of American servicemen died relieving Europe from the tyranny of fascism and the Vice President goes to Munich, ignores his host Chancellor Schulz, and arranges meetings with the leader of the most far right party. That is not what we expect from the foremost nation in the free world. It’s certainly not statesmanship, and it potentially gives off very dangerous signals.

    JAMES NAUGHTIE

    And he lectures Europe at the same time on the issue of free speech?

    SIR JOHN MAJOR

    Well, that is extremely odd. It’s extremely odd to lecture Europe on the subject of free speech and democracy at the same time as they’re cuddling Mr. Putin. In Mr. Putin’s Russia, people who disagree with him disappear, or die, or flee the country, or, on a statistically unlikely level, fall out of high windows somewhere in Moscow. To lecture the West about democracy seems to be rather odd. He really should be doing that in Moscow, or perhaps even in Beijing.

    JAMES NAUGHTIE

    Well, your view is plain, but I have to put it to you that Donald Trump is practicing what he preached. The voters, after all, a bare majority of those who did vote in the United States give a man a mandate to do this, and as a consequence, you might dislike it, but you can hardly complain that he’s doing something illegitimate.

    SIR JOHN MAJOR

    He certainly won a mandate. I don’t recall in his mandate a suggestion that he might take over Canada or Greenland or the Panama Canal, or any of the other things that are being suggested. I mean, let me say what I think Western governments will be unwilling to say publicly, but which I am sure they all feel. If America behaves in this fashion and retreats towards isolation, she leaves the door open to China and Russia to supplement her place in the world. The free world, I believe, now fears that America, with all her great power and prestige and all that she has done to keep the world safe in recent years, may now be turning her back on the international responsibilities she has previously taken. If she does so, there’s no other nation state that can replace them, other than China, and that is not something I think the West would certainly wish to see. If that happens, the world, including America, may regret what subsequently follows.

    Now I understand President Trump’s desire to make America great again, though I would have thought, since she is the most powerful and richest nation in the world, she could already claim that, but he wishes to make her great again. It’s a very different tone from a former American tone of paying any price and bearing any burden for the freedom of mankind, and the world needs to take account of that and discover precisely what is meant by all this, and then, as necessary, take action to safeguard their own interests.

    JAMES NAUGHTIE

    So John, it’s unusual to hear a former Prime Minister talking, if I can use the word, so frankly. Because, you know, there are protocols and a sense of politeness that prohibit people who’ve been in high office from maybe always saying what they think. You clearly feel that you’ve got to let this go, you’ve got to tell people what you believe.

    SIR JOHN MAJOR

    I rarely these days appear on the media. I’d rather take the view that former Prime Ministers by and large should keep out of the way and leave it to the current generation. But sometimes there are things that need to be said that perhaps can’t be said so easily by the present Government or by politicians in office but that nonetheless need to be said.

    Now let me say something personal about this. My father was brought up in the United States, he was brought up in Pennsylvania and he lived there throughout his youth. He taught me as a boy to love and respect the United States and its people, and I always have respected them. It seems to me that it would be a very great tragedy with very uncertain outcomes if this great Republic began to preside over the death of the rules based society that has kept the world safe over the last 50, 60, 70 years. Yet, I’m not alone among politicians who think that rules based society is now at risk.

    JAMES NAUGHTIE

    I’m bound to take you back a little bit at this juncture and say that George H W Bush, father of a president, as well as a president himself, of course, was the first American president that you came to know well in office. You fought together, as it were, in the Gulf, and you saw through some very tumultuous times together, but the contrast with the current incumbent is dramatic, isn’t it?

    SIR JOHN MAJOR

    I think it’s total, yes. George H W Bush was not only President of the United States, but from my point of view, during his presidency and for many years afterwards, he became a much cherished friend and he was an internationalist of a very remarkable kind. He understood the world, and he understood that for every action, there is a reaction. I make that point because if America stepped back from the responsibilities they have so generously and bravely taken over recent years, somebody else will step forward to replace them, and I think we have to realise that, and we have to prepare for that if it should prove to be necessary.

    My preference would be for the United States and Europe to reach a great concordat again and to conduct negotiations in private and not by megaphone and not without consultation first. But if that can’t happen, then Europe, and I include the United Kingdom as well, even though we’re not in the European Union, then we need to look at our own future and begin to repair some of the gaps in our present position that would appear were America to retreat a little more behind American borders,

    JAMES NAUGHTIE

    Which must mean spending more on defence?

    SIR JOHN MAJOR

    Undoubtedly.

    JAMES NAUGHTIE

    So if you were Chancellor, which you once were, you’d break your own fiscal rule wouldn’t you, and say ‘come on, this is a moment that really demands action, whatever we said in an election campaign?’

    SIR JOHN MAJOR

    I sympathise with the present Chancellor with the position she’s got. It’s very, very easy to say, from outside the government, I’d just do this and I’d spend all this money. I would prefer to say, I would realise in my plans that we have to make a very material increase in the level of defence expenditure and do it as a priority as soon as it is credible to do so.

    JAMES NAUGHTIE

    In terms of the Ukraine negotiation itself bringing this war to an end, there are two issues that arise very obviously. When European leaders, including Keir Starmer at this occasion, meet in Paris tomorrow night, it will be on their minds. The first is the inclusion of Ukraine in conversations between Trump and Putin, which hasn’t happened yet as we know. And secondly, there is the question of NATO membership, on which the United States seems to be determined, or at least minded, to block Ukraine from its ambitions to join. How would you see your way through those two problems?

    SIR JOHN MAJOR

    We need to consider, because it is relevant to what we decide, what happens if Mr. Putin wins? I use wins in the sense of gains territory, the world will see that at the same time as they see Mr. Trump talking of annexing Canada and Greenland. Now contemplate those two events running together, and ask yourself this question, what do Mr. Putin and President Xi think? They are dancing with joy. 

    Mr. Putin will see that he has received some reward for seeking to invade and annex Ukraine, and Mr. Xi will feel, if that has happened, what restraint is there on China beginning to grab Taiwan back again in a few years time? So we have to look at what the world would look like if that happened and it wouldn’t look very attractive, and we would wish it not to happen. So I do think we have to speed as rapidly as we can defence expenditure. I can’t say I have focused particularly on the credibility of Ukraine joining NATO, but if it’s not credible for them to do so, now, I think we ought to assist them so that it becomes credible as soon as possible.

    JAMES NAUGHTIE

    From your point of view, as somebody who was engaged in serious international negotiations at a higher level, the centrality of Ukraine to a settlement which is going to decide the future, not least in terms of its own borders of the country, is surely an absolute fundamental principle that Europe has to defend?

    SIR JOHN MAJOR

    Yes, Ukraine should be a part of the negotiations. There is no justification for other nations and negotiating over Ukraine’s head, whether it is the United States alone, or indeed the United States and other allies, it is Ukrainians who have lost several 100,000 people in the battlefield. They have lost blood and treasure and a large part of their country, it would be intolerable were they not to be a significant part of the negotiations.

    JAMES NAUGHTIE

    And there will have to be some kind of security presence to safeguard their borders in the event of some kind of settlement?

    SIR JOHN MAJOR

    That was a notable absentee from the reports of what was said by the President to Mr. Putin. There was no mention of any concessions to be made by Mr. Putin. There was no mention of any security guarantees to be given to the Ukrainians and both of those are an important part of what must happen when there is proper negotiations.

    JAMES NAUGHTIE

    How difficult would it be for Europe and for NATO, dominated of course by the United States as a member, where some possible deal on Ukraine would be seen by them as a sellout to Russia?

    SIR JOHN MAJOR

    I think it would be immensely difficult, firstly, against the prestige of the United States. There are countries all around the world who rely on the power and strength and democratic power of the United States. If they believe the United States is no longer to be relied on, they will rethink their position. Many of them who are non aligned, might well realign behind China. Others may decide they’ll increase their own expenditure on defence. Some may decide, well, we had better get a nuclear weapon as well, because it seems as though it may be necessary to protect ourselves. Now, all of those things are speculation, but they’re not wild speculation. All of them are perfectly credible things that might follow from a belief that America had ceded its present role in the world as a whole simply to concentrate on the domestic greatness of the United States.

    JAMES NAUGHTIE

    You’re being very frank. You obviously feel very deeply about this.

    SIR JOHN MAJOR

    Well, I suppose I have a limited lease on what happens in this country. I’ve been in it for my eight decades, but my children haven’t, my grandchildren haven’t and millions of other people haven’t. The future lies ahead. I would like our political parties to stop looking back at past generations of politicians and look forward to what is going to happen in the 2030s and the 2040s and the 2050s, to begin to plan for it, to begin to act for it, to begin to understand the way the world is changing and prepare for it.

    Those things seem to me to be extraordinarily important. Politicians today have a harder time, I think, than any of their predecessors, because of the advent of social media, the way in which the chequerboards of the world are changing shape at the present time and and the fact that our country has had 15 years without any noticeable increase in the living quality of most British people. in any part of the United Kingdom. That’s an extraordinarily difficult back loss for them to operate, but we do have to look forward. If we look forward, we can bring hope where there is none, and provide opportunity to a greater extent than there is at present. Those things need to be done. I hope Governments, this one and the next one are not too small ‘c’ conservative in what they think and what they do and what they believe can be achieved, because the world is moving and changing very rapidly. We have to move and change with it.

    JAMES NAUGHTIE

    If by some possibly divine intervention, you were given the opportunity to have a private conversation with President Trump, what would you say?

    SIR JOHN MAJOR

    I’ve always believed conversation should be private, and I’m absolutely sure Jim that our conversation would far better be left private than public.

    JAMES NAUGHTIE

    Sir John Major, and he writes our closing headline for us, because he has told this programme that democracy is under threat than it if the US retreats towards isolation, it will leave the door open for Russia and China to take its place in the world.

  • Presidency Conclusions Following the Dublin European Council – 14 December 1996

    Below is the text of the Presidency Conclusions following the Dublin European Council meeting on the 13th and 14th December 1996.


    PRESIDENCY CONCLUSIONS

    1. INTRODUCTION

    The European Council, meeting in Dublin on 13 and 14 December 1996, took a number of significant decisions for the continued development of the European Union.

    The European Council:

    – achieved further decisive progress on Economic and Monetary Union,

    – identified a broad range of measures to be implemented at national and Community level aimed at boosting employment,

    – adopted the Dublin Declaration on Employment,

    – welcomed the general outline for a draft revision of the Treaties submitted by the Irish Presidency as a good basis for the final phase of the Intergovernmental Conference which should conclude at Amsterdam in June 1997,

    – adopted an important series of measures in the area of Justice and Home Affairs and, in particular, agreed ways and means to combat the scourges of drugs, organized crime, including terrorism, and the sexual exploitation of children,

    – reviewed the Union’s action in external relations.

    The European Council began its proceedings by an exchange of views with Mr. Klaus HÄNSCH, President of the European Parliament, on the main subjects for discussion at this meeting. It thanked Mr. HÄNSCH, who will be stepping down from office next January, for his valuable contribution to furthering constructive cooperation between the Institutions.

    A meeting also took place today with the Heads of State or Government and the Ministers for Foreign Affairs of the associated countries of Central and Eastern Europe, including the Baltic States, as well as Cyprus. There was a broad exchange of views on these conclusions and on matters pertaining to the field of Justice and Home Affairs, with particular reference to the fight against drugs and organized crime.

    1. ECONOMIC AND MONETARY UNION
    2. Economic and Monetary Union

    The European Council welcomes the further decisive progress which has been made in the preparations for EMU, which will begin on 1 January 1999.

    – The structure of the new Exchange Rate Mechanism has been agreed.

    – The urgent aspects of the legal framework for the use of the euro have been finalized for early adoption.

    – The principles and main elements of the Stability and Growth Pact for ensuring budgetary discipline in EMU have been agreed.

    The European Council therefore urges the institutions, public authorities and economic agents to intensify their preparations for the starting date of 1 January 1999.

    The European Council welcomes the excellent Report by the ECOFIN Council (annexed) on preparations for Stage 3 of EMU, which is fully in line with the conclusions of Madrid and Florence, and it pays tribute to the contributions, in their respective fields of competence, from the Commission and the European Monetary Institute (EMI). The contents of this Report are subject to Parliamentary reservations.

    In particular the European Council:

    – endorses the conclusions on the new exchange rate mechanism (ERM2) as proposed by the ECOFIN Council and the EMI. It invites the ECOFIN Council to prepare for the European Council in June 1997 a draft Resolution setting out the fundamental elements of the ERM2, following the precedent set in 1978 in relation to the present ERM. The EMI is invited to prepare, in parallel, a draft for an inter-central bank agreement, for submission to the European Central Bank and the central banks of the Member States not forming part of the euro area.

    – underlines the need to ensure durable budget discipline in Stage 3 of EMU and welcomes the agreement reached on the Stability and Growth Pact. It requests the ECOFIN Council to examine intensively the Commission proposals for two Regulations, one on the strengthening of the surveillance and co-ordination of budgetary positions and the other on speeding up and clarifying the implementation of the excessive deficit procedure. It invites the Commission to put forward a proposal for a Regulation on non-participating Member States. Furthermore, it invites the ECOFIN Council to prepare a draft Resolution on the Stability and Growth Pact to be adopted by the European Council in June 1997, recording the commitments of the Member States, the Commission and the Council to a strict application of the Treaty and the legal provisions on budgetary stability. The European Council notes that after it has adopted the Resolution, the Council will adopt the respective Regulations.

    – welcomes the agreement by the ECOFIN Council on the two Regulations establishing the legal framework for the euro which are being made public by the Presidency. It invites the Council to adopt the first Regulation based on Article 235 of the EC Treaty without delay. The second Regulation will be adopted by the Council as early as possible in 1998, once the decision on the Member States participating in the euro area has been taken.

    The Council, meeting in the composition of Heads of State or Government, has taken its decision under Article 109j(3) of the EC Treaty and confirms that the procedure laid down in Article 109j(4) will be applied as early as possible in 1998, with a view to the commencement of the third stage of EMU on 1 January 1999. In this context, the European Council welcomes the intentions of the Member States to further reduce budgetary imbalances in 1997 with a view to achieving the high degree of sustainable convergence required for participation in the single currency and it underlines the need for durable convergence in the third stage.

    The European Council underlines the importance of exchange rate stability for the process of convergence and the smooth operation of the internal market and accordingly warmly welcomes the entry into the ERM of the Finnish markka on 12 October 1996 and the re-entry of the Italian lira on 24 November 1996.

    The European Council underscores the need to make the euro tangible for citizens. In this regard, it welcomes the designs for the euro bank notes presented by the European Monetary Institute. It also welcomes the arrangements being made by the Commission for the design competition for the coins; this will allow the choice to be made during the Dutch Presidency.

    The Heads of State or Government decided to reappoint Baron Alexandre LAMFALUSSY as President of the European Monetary Institute as of 1 January 1997 until 30 June 1997. They decided to appoint Dr. Willem Frederik DUISENBERG, President of De Nederlandsche Bank, as President of the European Monetary Institute as of 1 July 1997 until the establishment of the European Central Bank.

    1. SEM 2000 (Sound and efficient management)

    The European Council endorsed the Council conclusions of 2 December 1996 on the report of the Personal Representatives Group on Sound Financial Management.

    It reaffirmed its support for the Commission’s SEM 2000 initiative and generally welcomed the recommendations in the report which constitute a substantial action programme to improve the financial management of EU expenditure in partnership between the Commission and the Member States.

    The European Council invited Council and Commission to report on progress in implementing the recommendations to its meeting in December 1997.

    III. EMPLOYMENT

    1. Growth and Employment in Europe – the way forward

    The fight against unemployment is the prime responsibility of the Member States but also a priority task of the Union. The European Council had an in-depth discussion on the growth and employment strategy, based on the joint report from the Council and the Commission on employment, the Commission’s progress report on the initiative for “Action on employment: a Confidence Pact” and the joint contribution by the social partners on the Confidence Pact which they adopted in Dublin on 29 November. In its deliberations it has also taken account of the proposals in President Chirac’s Memorandum on a European Social Model with a view to giving greater emphasis to the human dimension of the Union.

    The European Council, building on the Essen strategy, endorses the analysis contained in the Joint Report and urges the Member States to pursue this strategy with determination and consistency. It calls for continued support for this strategy by all relevant actors at European, national and local level, including the social partners and reaffirms the importance of equal opportunities.

    To underline its commitment to this strategy the European Council has adopted the Dublin Declaration on Employment (annexed), which reflects the recommendations in the Joint Report on the need for:

    – a continuation of the macroeconomic strategy for economic growth and employment in line with agreed economic policy guidelines,

    – increased efforts to modernize the markets for goods and services and to exploit new sources of employment,

    – a focusing on labour market efficiency and on investment in human resources,

    – making taxation and social protection systems more employment-friendly,

    – strengthening the interplay between macroeconomic and structural policies in the Member States’ Multi-annual Employment Programmes.

    It invites the Commission and the Member States, especially in the framework of the new Employment and Labour Market Committee and the Economic Policy Committee, to develop further the instruments for the effective monitoring and evaluation of employment and labour market policies and the identification of good practice. In particular, common employment indicators should be further developed and the possibilities of benchmarking should be assessed.

    The European Council welcomes the positive reaction to the initiatives on territorial employment pacts and urges swift implementation of the 60 projects proposed by the Member States.

    The European Council stresses once again the essential role of the Internal Market in promoting growth and employment in the Union. Enhancing the competitiveness of small and medium-sized enterprises has a crucial role to play to this effect. Whilst noting the progress that has been accomplished in this area, it remains concerned with the delays in the transposition and implementation of a number of Directives. It takes note of Commission’s intention to submit before the Amsterdam European Council an action plan and a timetable covering all necessary measures that must be taken to ensure that the full potential benefit of the Internal Market is achieved before the beginning of Stage 3 of EMU.

    The European Council noted the Commission report on the development of tax systems, which was drawn to its attention by the ECOFIN Council, underlining the need for further work on this issue. The European Council welcomed the Commission’s intention to continue the discussions in a tax policy group, paying particular attention to the effects of this policy on employment.

    The European Council welcomes the Commission’s plans in relation to innovation and the development of the information society as important inputs for the future development of the Union’s competitiveness. Investment in education and training are crucial for securing equal opportunities for all citizens to participate in and benefit from the information society. The European Council believes that there should be regular monitoring and evaluation of the Union’s competitiveness against world best practice along the lines of the conclusions on benchmarking adopted by the Industry Council.

    The European Council reiterates the importance of regulatory simplification and requests, in this context, the extension of the Simpler Legislation for the Internal Market (SLIM) initiative. It emphasizes that the effort to reduce administrative costs for enterprises, particularly small and medium-sized enterprises, is necessary for Member States as well as the Community institutions and invites the Council to follow up in this respect its resolution on legislative and administrative simplification in the internal market.

    Postal services form an essential component of the communications infrastructure in the Union. The development of the internal market for postal services bears huge significance in economic and social terms. The European Council welcomes the intensive efforts made to date to effect relevant measures, but notes with regret that the Council has not reached a Common Position. It asks the Council to take a decision by the end of the year, taking account of the work already done at its meeting on 28 November 1996.

    The European Council asks the European Parliament, the Council and the Commission to take all steps so that an immediate decision to liberalize postal services can be taken. The universal service in the postal sector must remain assured.

    The European Council recognizes the importance of the implementation of the Trans-European Networks. It agrees with the proposal by the Portuguese and Spanish Governments that priority project No. 8 in list 1 from the Essen European Council will become the Multimodal link between Portugal/Spain and the rest of Europe.

    1. Subsidiarity and Proportionality

    The European Council reaffirms the importance of ensuring that the institutions apply subsidiarity and proportionality thoroughly to all legislative proposals. It welcomes the Commission’s 1996 “Better Law Making” report on the application of subsidiarity and proportionality, on simplification and on consolidation of legislation. The European Council invites the Commission to provide a progress report before the end of 1997.

    1. THE INTERGOVERNMENTAL CONFERENCE

    The European Council welcomed the general outline for a draft revision of the Treaties submitted by the Presidency. This makes it possible for the negotiations to move now into their final phase.

    The European Council has also taken note of the recent letter from the German Chancellor and the French President which will be an important contribution to the further work of the Conference.

    The European Council reaffirms the importance of completing the Conference at Amsterdam in June 1997. The Presidency document provides a good basis for the work which lies ahead. As the document makes clear, delegations remain free to advocate their own proposals and to press their concerns in further negotiation.

    As it moves now into its final decisive phase, the Conference must seek to achieve a balanced outcome in all areas which will measure up to the aims and ambitions which the European Council has set for it. It is essential that the Union be equipped to face the challenges ahead as it prepares for the 21st century.

    The European Council notes with approval the progress at the Conference in identifying Treaty changes which would make the Union more responsive to the concerns of its citizens and it reaffirms the aims which it set out at Florence in this regard.

    The European Council notes with approval the particular importance which the Presidency document attaches to the area of Justice and Home Affairs. The European Council has agreed today on a number of important decisions under the existing Treaty provisions which are set out in Section V of the present conclusions. It asks the Intergovernmental Conference, taking account of the outline draft for Treaty revision presented by the Presidency, to work to reach agreement on a strengthened capacity for action in relation to visas, asylum, immigration, the crossing of external borders, the fight against drugs and international crime including terrorism, offences against children and trafficking in persons. Europol should have operative powers working in conjunction with the national authorities to this end. These issues are of the most serious concern to citizens in all Member States and the Union must be given the means to act effectively in these areas.

    The European Council also reaffirmed the aim which it set in Florence of developing the external action of the Union. The Union must enhance its capacity to ensure that its external action is coherent and effective in all its aspects, and it must improve its decision-making procedures, if it is to play a role in the world commensurate with its responsibilities and its potential. The European Council noted the approaches which the Presidency has identified in its document in relevant areas including the options for establishing a new function to enhance the visibility of the CFSP and the strengthening of links with the WEU.

    Institutional issues will be central to the next phase of the negotiations. The Union needs to improve its ability to take decisions and to act. This is already true today and it will be even more necessary as the Union moves to enlarge its membership further. The Union must have comprehensible, transparent and democratic procedures and strong and effective institutions which enjoy legitimacy in the eyes of its citizens.

    The European Council notes that the Presidency document, responding to a view of many delegations that certain issues can be settled definitively only at a later stage in the Conference, does not include texts in Treaty form on the issue of flexibility and on certain sensitive institutional questions, although it offers an analysis of the issues and identifies options. In the next phase of the Conference solutions must be found on all institutional issues, including in particular on the size of the Commission, the role of the European Parliament, the collective association of national parliaments, the voting mechanisms in the Council and the functioning of the Court of Justice, while respecting the balances which have always been an important feature of European construction.

    The European Council also notes the progress made thus far in examining the proposals for Treaty provisions which would permit more flexible approaches leading to enhanced cooperation in appropriate areas, subject to agreed conditions. This issue is of great importance and the European Council asks the Conference to devote particular attention to it.

    The European Council emphasizes strongly that the future of the Union and the success of the further enlargement to which it has committed itself will depend on a satisfactory resolution of all of these questions.

    The European Council asks the Conference to develop the important proposal to amend the Treaties to establish it as a clear principle that no citizen of a Member State of the Union may apply for asylum in another Member State, taking into account international treaties.

    The European Council notes also the proposal submitted jointly by three delegations, since the presentation of the Presidency document, for the Treaty to include the specific character of the outermost regions of the Union and it asks that it be examined by the Conference.

    Finally, the European Council asks the Conference, on the basis of the preparatory work already carried out, to continue to work to present a significantly simplified version of the Treaties with a view to making them more readable and comprehensible to the Union’s citizens. This must be done in a way which does not reopen the acquis of the Treaties, preserves the pillar structure and does not delay the outcome of the Conference.

    1. JUSTICE AND HOME AFFAIRS

    The European Council reaffirms its commitment to maintain and develop the European Union as an area of freedom, security and justice by putting to full use all of the instruments provided for in the Treaty on European Union.

    1. Fight against drugs

    The European Council welcomes the report from the Council on the substantial progress made since its last meeting in Florence and endorses the proposals for action contained in this report.

    The European Council welcomes, as a concrete expression of a shared political will, the agreement which has been reached on a Joint Action on the approximation of the laws and practices of police, customs services and judicial authorities in the fight against drug addiction and illegal drug trafficking, and the resolutions on sentencing for serious drug trafficking offences, on combatting drug tourism and on drug production and cultivation. It also welcomes the adoption of the Programme for Community action on the prevention of drug dependence.

    The European Council stresses that this constitutes a first step and that the momentum achieved must be maintained and further developed on those bases, in particular through:

    – continued examination of further harmonisation of laws, insofar as an agreed need for it is identified, complemented by reinforced cooperation between the Institutions and the Member States. In this context, the particular dangers posed by synthetic drugs deserve special attention;

    – continued review of further cooperation between law enforcement agencies to combat drug trafficking;

    – full application of the Directive on money laundering and its possible extension to those relevant professions and bodies outside the classical financial sector;

    – development by the Council and the Commission of the contribution which research activities can make in addressing the medical, socio-economic and detection aspects of drug abuse;

    – energetic implementation of the action plan to combat drugs in the Caribbean, as well as the implementation of the agreed follow-up of the report by the expert mission to Latin America;

    – further development of the structured dialogue with the associated countries of Central and Eastern Europe in regard to drugs issues; comparable cooperation with the Russian Federation, initiated during the current Presidency, should be pursued;

    – following a proposal by President Chirac and Prime Minister Major, to examine ways to assist Central Asian republics, utilizing the TACIS programme, to fight transit in and production of drugs.

    Cooperation with transatlantic partners in these fields has also to be continued and, where appropriate, improved.

    The European Council confirms the priority it attaches to sustained and coordinated action in the fight against drugs making full and coherent use of all the instruments of the Union.

    It invites the Council to draw up by the end of 1997 a first assessment of measures undertaken, with a view to strengthening and supplementing them.

    1. Fight against organized crime

    The European Council underlines its absolute determination to fight organized crime and, to this end, stresses the need for a coherent and coordinated approach by the Union.

    The European Council welcomes the report made by the Presidency on stepping up the fight against organized crime and decides to create a high level group to draw up a comprehensive Action Plan containing specific recommendations, including realistic timetables for carrying out the work. The Group should examine the fight against organized crime in all its aspects on the clear understanding that it would refer any issues involving Treaty change to the Intergovernmental Conference which is addressing Treaty changes in this area as a priority. The high level group should complete its work by March/April 1997.

    In order to implement rapidly the measures proposed in the report made by the Presidency, the European Council asks the Council to reinforce its Secretariat, by setting up a team of specialized national experts and practitioners, seconded for a limited duration.

    As a practical step in combating international crime, the European Council urges the ratification at the earliest possible date of the Customs Information System, Fraud and Extradition Conventions and their Protocols, as well as, by the end of 1997, of the Europol Convention and its subsequent Protocol. It also highlights the importance of bringing to a rapid conclusion the convention on Mutual Assistance in Criminal Matters.

    The European Council urges the Council and the Commission to take effective and coherent action to address the abuse of new communications technologies, including the Internet.

    1. Sexual exploitation of children and trafficking in human beings

    The European Council expresses its abhorrence at the sexual exploitation of children and trafficking in human beings and undertakes to take all necessary action to protect those most vulnerable in society. It welcomes the agreement on a joint action defining a common approach to offences against children and improving judicial cooperation. Other joint actions aimed at enhancing police cooperation by widening the competencies of the Europol Drugs Unit and creating centres of expertise in investigating such crimes were adopted. Community funds have been made available for fighting these odious crimes.

    The European Council calls on the Council and the Commission to implement actively these instruments and to consider necessary further action.

    1. Fight against terrorism

    The European Council condemns unreservedly all terrorist attacks and continues to pay close attention to the threat posed by terrorism both internally and externally. For this reason the EU is working closely with other international partners and international organizations to review and update measures already adopted against this threat and adopt, where necessary, new measures. For this reason the Member States reiterate their will to cooperate closely on the matter; the European Council emphasizes the need to do so.

    1. Racism and Xenophobia

    The European Council welcomes the progress made since its meeting in Florence and calls on the Council to complete its work with a view to the speedy establishment of a European Monitoring Centre on Racism and Xenophobia which will have to work in close cooperation with the Council of Europe.

    1. External frontiers

    The European Council draws again attention to the need to resolve speedily the remaining questions regarding the draft Convention on crossing by persons of the External Frontiers of Member States of the European Union.

    1. ENLARGEMENT

    The Commission informed the European Council on its progress on the opinions and other reports related to enlargement as requested of it at Madrid. The European Council welcomes the assurance given by the Commission that these documents as well as the communication on the future financial framework of the Union will be available immediately after the conclusion of the Intergovernmental Conference. It confirms the timetable for the enlargement process as set at its Madrid meeting. The European Council takes note of the Council’s report on the implementation of the pre­accession strategy in the second half of this year. It also notes the Commission’s endeavours to strengthen the present implementation of this strategy. Moreover it welcomes the Commission’s intention to present proposals for an overall reinforcement of the pre-accession strategy together with its opinions and other reports under preparation.

    VII. EXTERNAL ACTION BY THE UNION

    The European Council adopted the declarations on Former Yugoslavia and the Middle East Peace Process at annex.

    RUSSIA

    The European Union expresses its solidarity with the Russian people as they implement their historic choice in favour of democracy, the rule of law and a market economy. The European Council reiterates the Union’s readiness to assist the Russian Federation in meeting the difficult challenges ahead, notably through the Partnership and Cooperation Agreement, the EU/Russia Action Plan and by bringing Russia as soon as possible into the WTO and other international fora.

    The European Council warmly welcomes President Yeltsin’s important decision to withdraw all Russian troops from Chechnya and the recent agreement between Chechen leaders and the Russian Prime Minister. It notes the intention to hold elections in Chechnya on 27 January 1997. The European Council expresses its continuing support for the important work of the OSCE Assistance Group in Chechnya.

    UKRAINE

    The European Council welcomes the adoption by the Council of the Action Plan for Ukraine which demonstrates the importance which the Union attaches to its relations with Ukraine and its desire to develop closer cooperation in the framework of the Partnership and Cooperation Agreement.

    The European Council recalls its firm attachment to the implementation of the memorandum of understanding reached with Ukraine on the definitive closure of the Chernobyl nuclear power station by the year 2000. It welcomes the closure by the Ukrainian authorities of reactor number one as an important step in this direction.

    BELARUS

    The European Union is seriously concerned at developments in Belarus, in particular relating to the referendum on the new Constitution. The European Union wishes to see a Belarus committed to democratic principles, human rights and a market economy playing a full part in Europe. The European Council calls on the leadership of Belarus to re-establish full respect for internationally accepted democratic and constitutional principles and practices and hopes that the leadership will accept the Union’s proposal for a fact-finding mission. The absence of progress in these areas would have a negative impact on relations between Belarus and the European Union and on Union support for Belarus’s accession to the Council of Europe.

    COUNCIL OF EUROPE

    The European Council believes that the Council of Europe has a crucial role in upholding human rights standards and supporting pluralist democracy.

    It sees advantage in using to the fullest, in cooperation with other international institutions, the expertise and mechanisms of the Council of Europe to advance these objectives. The summit meeting of the Organization, in 1997, will provide a significant opportunity to review the progress made in these areas.

    REGIONAL COOPERATION IN EUROPE

    The European Council notes the wider range of regional activities in Europe reaching from the Arctic to the Black Sea. In this context, the European Council welcomes the Commission’s report on the Central European Initiative presented in response to its request at Florence. It notes that the Commission will submit regular reports to the Council on these regional initiatives.

    MEDITERRANEAN

    The European Council reaffirms the high priority it attaches to the European Union’s Mediterranean dimension and expresses satisfaction at the significant and balanced developments in the Euro-Mediterranean partnership during the year since the adoption of the Barcelona Declaration.

    In the political and security partnership, work on the implementation of the principles of the Barcelona Declaration will continue, notably through the action plan, towards the adoption of a Union-Mediterranean charter.

    TURKEY

    The European Council reaffirms the importance it attaches to the further development of the EU’s relations with Turkey in both the economic and political fields. It notes with regret, however, that certain serious issues remain to be resolved in the relationship. The European Council welcomes the Turkish Government’s stated intention to take measures to improve the human rights situation. In the context of closer partnership with the European Union it emphasizes the need for the observance of the highest standards of human rights.

    The European Council invites the Presidency to continue its efforts following the Council’s declaration of 15 July 1996 to promote an acceptable solution to the situation in the Aegean area in accordance with established international norms and to pursue contacts with the Turkish Government with a view to an early Association Council.

    The European Council urges Turkey to use its influence to contribute to a solution in Cyprus in accordance with UN Security Council resolutions.

    EU-US RELATIONS

    The European Council notes that the EU-US Summit in Washington on 16 December will be the first anniversary of the adoption at Madrid of the New Transatlantic Agenda and the Joint EU-US Action Plan and expects it to be another milestone in EU-US relations. It welcomes the qualitative improvement which this represents in principle as well as in practice over the past year.

    The European Council reaffirms the objectives which it shares with the US in promoting human rights, democratic values and fundamental freedoms in parts of the world where these are inadequately observed, but also its conviction that such objectives should be pursued by means other than unilateral action at the expense of close partners with shared values.

    The European Council reaffirms the essential contribution which close EU-US partnership can make to international stability, security and prosperity and the importance in this context of the Transatlantic Dialogue in deepening and widening the EU-US relationship through solid cooperation between them.

    EU-CANADA RELATIONS

    The European Council welcomes agreement on the text of a Joint Declaration and an Action Plan, which will further enhance cooperation between EU and Canada in pursuit of common objectives and on the basis of deeply-held shared values.

    GREAT LAKES

    The European Council expresses grave concern about the continuing violence in the Great Lakes Region, not only in Eastern Zaire but also in Burundi. It welcomes the return of large numbers of refugees, but underlines the need to facilitate the voluntary repatriation of the remaining refugees, and to initiate rehabilitation and reconstruction efforts. It recalls the considerable efforts undertaken by the EU to meet humanitarian needs. In the meantime, the continuing humanitarian emergency, particularly in Eastern Zaire, requires fast and decisive action by the international community. Underlining the need for a flexible approach in the light of the rapidly changing circumstances on the ground, the European Council agrees that the implications of these changes for the implementation of UN Security Council Resolutions concerning the establishment, for humanitarian purposes, of a temporary multinational force will need to be addressed rapidly. In this regard, the European Council restates the willingness of the European Union to contribute fully and urgently to these efforts, pursuant to the Joint Action of 22 November 1996, the associated Council Decision of the same date and the WEU Ministerial Declaration of 19 November 1996. It welcomes the Commission proposal for a strategic and comprehensive plan of action for EU assistance to the Great Lakes Region.

    The European Council welcomes the initiative of the regional leaders in seeking to resolve the problems in Eastern Zaire through dialogue. It hopes that, at the second Nairobi Summit of Heads of State of the Region on 16 December, they can build upon the principles already agreed by them, including the crucial importance of respect for the territorial integrity and sovereignty of Zaire, in pursuit of a peaceful resolution of the conflict. Recognizing the importance of the electoral process in terms of the stability of the region, it reiterates the commitment of the Union to play its part in support of the successful completion of that process in Zaire by means of the Joint Action adopted on 11 November 1996 and looks forward to the latter’s early and urgent implementation.

    The European Council reiterates its view that the problems of the region as a whole can only be resolved by political means. The European Union will, in particular through its Special Envoy, continue to support the efforts of the regional leaders and to encourage dialogue between the different parties to conflict in the region. The European Council reaffirms its support for the early convening of an international conference under the joint auspices of the UN and the Organization of African Unity in order to address within a global approach the root causes of the crisis and thus bring about a peaceful, durable and comprehensive resolution of the conflicts in the region.

    EAST TIMOR

    The European Council welcomes the initiatives within the European Union aimed at improving the situation, living conditions and human rights of the East Timorese people. It reaffirms its support for all efforts which can contribute to a fair, comprehensive and internationally acceptable solution, which fully respects the interests and legitimate aspirations of the Timorese people in accordance with international law. It hopes that the talks under the auspices of the UN Secretary General will lead to substantial progress towards the resolution of the question of East Timor.

    CUBA

    The EU wishes to see progress towards a peaceful transition to pluralist democracy, respect for human rights and fundamental freedoms in Cuba, as well as economic policies calculated to bring about a sustainable recovery and an improvement in the living standards of the Cuban people. The Common Position adopted by the Council on 2 December will be pursued through a result-oriented constructive dialogue. The EU will lend its support to progress towards democracy, including the possible negotiation of a cooperation agreement. Any agreement would, in accordance with EU practice, contain a suspension clause in the event of a serious breach of the human rights provisions.

    TRANSITION IN HONG KONG AND MACAO

    The European Council reiterated the European Union’s strong interest in the future peace and prosperity of the Hong Kong Special Administrative Region (SAR) of the People’s Republic of China to be created next July, and the European Union’s desire to do anything possible to contribute to a smooth transition. The European Union is committed to strong continuing relations with the SAR in the World Trade Organization and in all other matters where the SAR will enjoy autonomy under the Basic Law. The European Council underlined the European Union’s full support for the specific status of the SAR and its citizens in all respects, including their right to representative democratic institutions as already established The European Council requested the Commission to propose in due course during 1997 how best to ensure close economic cooperation.

    The European Council takes note of the positive way in which the transition process has been developing in Macao. It hopes that the implementation of the Sino-Portuguese Joint Declaration signed in 1987 will continue to contribute to the progress and social stability of the territory with a view to a smooth transfer of government in December 1999. It also hopes for the continuation of the respect for the fundamental principles of the Joint Declaration beyond that date.

    WTO

    The European Council noted with satisfaction the outcome of the first regular bi-annual WTO Ministerial Conference which took place in Singapore on 9­13 December 1996 and at which the European Union demonstrated once again the importance it attaches to the multilateral trading system and the efficient operation of the WTO.

    The European Council expresses its satisfaction at the renewed impetus which the WTO Ministerial Conference in Singapore has given to the liberalisation of world trade. It particularly welcomes the broadening of the WTO work programme to encompass issues which the European Union had identified as priorities. It also welcomes the breakthrough on trade in information technology products and urges the fullest possible participation by third country partners in the final agreement to be reached by 15 March 1997. The European Council also welcomes the continued momentum towards a successful conclusion of the negotiations on basic telecommunications in February 1997.

    The European Council welcomes the launch by the Commission of a new market access strategy and calls for enhanced and coordinated efforts by the Community and Member States to open up third country markets.

    With regard to the report on the evolution of the trade policies and preferential agreements of the Community, the European Council took note that the Council would finalize it in its February session with a view to presenting it at Amsterdam.

    VIII. SEATS OF OFFICES AND AGENCIES

    The European Council noted the progress which has been made in the implementation of its decision taken in Brussels in October 1993 on the location of Agencies and Offices. The Council endorsed the Commission’s decision of 10 December 1996 to arrange for the early transfer of the staff of the OICVP to Ireland initially and specifically thereafter to Grange, Co. Meath in premises to be made available at that location by the Irish authorities.

    The European Council urged that appropriate measures be taken by the different institutions to ensure that the required resources are made available to implement the Commission’s decision.

    The Council also notes the conclusions of the Agriculture Council of 18 November 1996 as regards staffing of the OICVP and urged that appropriate measures be taken by the different institutions to ensure that the required staffing resources are made available to enable the Union to discharge its supervisory responsibilities.

    Addendum

    The European Council has noted the following reports from the Presidency/Council:

    – Council report on achievements in the field of Justice and Home Affairs

    – Presidency report on stepping up the fight against organized crime

    – SEM 2000 (sound financial management): Council Conclusions and report of the personal Representatives Group

    The European Council also noted the following reports from the European Commission:

    1. Europe as an Economic Entity
    2. The impact and effectiveness of the single market
    3. Putting services to work
    4. Europe at the forefront of the global information society
    5. The first action plan for innovation in Europe
    6. Europe’s place in the world: fourth report of the Ciampi group
    7. Trans-European Networks
    8. Better Lawmaking (report on the application of the subsidiarity and proportionality principles, on simplification and on consolidation)

     

  • Mr Major’s Press Conference in Moscow – 20 April 1996

    Below is the text of Mr Major’s press conference in Moscow on Saturday 20th April 1996.


    PRIME MINISTER:

    Let me talk about the summit and the adjacent meetings I have had during the period I have been here in Moscow.

    The summit began last evening with a fairly extensive discussion on the situation in Lebanon. I think all of you know that there is a fair amount of diplomatic activity going on, even as we speak there are a number of Foreign Ministers at the moment engaged either in Lebanon, or in Israel or in Syria, to see what can be done to bring about a ceasefire. It was our view that a ceasefire would be the first step, beyond that we need something that is going to be rather more permanent to prevent re-occurrence of the difficulties there have been over the last few days.

    We moved on this morning to the main reason for the summit being called, you will recall it was suggested by President Yeltsin when he met the G7 in Halifax last year, and that was to examine comprehensively the question of nuclear safety. And I think the fact that the G7 attended in full, with President Yeltsin, is an indication of the importance that we attach to that process.

    Many people I think were quite sceptical at the time as to whether anything would emerge from a summit of this sort. In fact there has been quite a comprehensive range of agreements, some of them very technical, many of them the subject of discussion for some time. And I am extremely grateful to Neil Hurst for the work that he has done on that over the months that have gone.

    But let me just summarise the main agreements that have been reached: an agreement to bring into force the nuclear safety convention, we have long wanted that, it has now happened; agreement to work together on a new convention on the safety of radioactive waste management; thirdly, a commitment by Russia to sign the London Dumping Convention Amendment, that is the amendment which effectively bans the dumping of radioactive waste at sea; a programme to help prevent the illicit trafficking of nuclear materials, that too is something the United Kingdom has sought for some time and we are delighted to have that agreement.

    And of course also there was agreed at this summit a new impetus to the conclusion, by September we think is possible, of a Comprehensive Test Ban Treaty which bars all nuclear explosions on the basis of a zero yield. And I know from time to time in the past there have been conflicting interpretations of what is meant by zero-yield. Let me make it clear that what we mean by this, and what I think is understood by our partners, is that no nuclear explosion of any kind, however small, is permitted. That too I think is an agreement that many people will welcome.

    Over lunch, we discussed the situation, particularly as far as Chernobyl is concerned. We emphasised our commitment to make real the programme contained in the Memorandum of Understanding that we signed with Ukraine last December, and we were joined for this particular discussion by President Kuchma. You will recall, I am sure, there are three elements to the problem with Chernobyl: firstly, there are the grants that we made available to assist with work; secondly, there is the amount of international finance that will be made available to provide alternative sources of energy, that finance is agreed, it is not yet drawn down, the Ukrainians are still determining precisely what they need to do; and thirdly, there is the question of the temporary covering, the temporary sarcophagus over the reactor that exploded. There is no additional financing agreed for that.

    At the moment there is a European Union study being undertaken. When that is concluded, which will be later this year, we will need to look at the question of funding that and how it will be done. I have little doubt that it will need to be an international effort. I don’t think it is remotely likely that the Ukrainians would be able to fund that on their own and I think post-Chernobyl no-one is seriously going to doubt the need for that work still to be done. But at the moment we still await the experts’ report on the sarcophagus. As soon as we have got it, we will be able to move forward.

    One happy development today, President Kuchma said that he would see if it was possible, and he thought that it was possible, to close another reactor at Chernobyl by the end of the year. And we spent some time also discussing alternative energy sources and the need to develop them in Ukraine and beyond.

    We spent some time discussing Bosnia, I won’t elaborate upon that discussion unless questioned, except to say that although it has been more quiescent lately, I don’t think anyone is in any doubt about the importance of making sure the civil development of Bosnia proceeds, and that is a matter to which we will regularly have to return.

    At the conclusion of the summit proper, I had a bilateral for a little over an hour with President Clinton. We discussed a range of matters: Lebanon; the importance of Most Favoured Nation status from America for China, that is important to us of course because of the impact upon Hong Kong and I discussed that with the President; we discussed also the forthcoming Commonwealth meeting concerning Nigeria and the present internal situation there; and I took the opportunity of dealing with one domestic matter by briefing the President on the present state of the legislation on Northern Ireland and the preparatory work for the elections, the forum and the all-party talks that we hope will follow the elections, and that was an extremely worthwhile occasion.

    Let me just say one thing in conclusion before we seek to take any of the questions you may have. I think it has been a very valuable visit, very valuable because of the agreements that have been signed. But also very valuable, to be frank, because it is extremely useful on these occasions, you have the opportunity of discussing in a relatively informal manner in the sidelines of such conference a range of issues with the other Heads of Government who are present, and I think that increasingly close contact is a very reassuring element of international affairs these days. Heads of Government tend to know one another far better and far more personally than ever used to be the case in the past and I think that is immensely useful.

    During those bilaterals I had specific bilaterals with Prime Minister Chretien; President Yeltsin of Course; Mr Chernomyrdin, the Prime Minister; and also, as you know, a meeting last evening here to discuss the European problems of beef with the President of the Commission, the President of the European Council and the President of France and the Chancellor of Germany. So we were able to take the opportunity of reviewing the situation whilst we were here. So all in all a very useful and worthwhile visit.

     

    QUESTIONS AND ANSWERS

    QUESTION:

    On Ulster, we have heard that President Clinton was praising your efforts towards securing peace, and he also apparently made mention of the need for another ceasefire. Could you tell us a little more about that?

    PRIME MINISTER:

    The President has been very helpful for some time and I have absolutely no doubt at all that he will continue to play a constructive role in helping to take the process further. We do need a ceasefire. There is no immediate sign, I have to say, from Sinn Fein and the IRA that one is imminent. But I think there is no justification for them holding off from a ceasefire. For a very long time they have asked for the prospect of all-party talks, they have asked for a proper consideration of the problems of Northern Ireland. All those lie just weeks ahead. And upon that basis, to take them at their own evaluation, there is no justification for anything other than a comprehensive ceasefire so that they can join the talks that lie immediately ahead. I very much hope that they will do that. But let me emphasise again. If they do not, we will proceed without them. Sinn Fein and the IRA cannot, by not offering a ceasefire, stop the process that is now in hand, they cannot stop the elections, they cannot stop the forum meeting and they cannot stop the beginning of negotiations on 10 June. All of those things will go ahead, but of course one would like to see a ceasefire.

    QUESTION (The Guardian):

    You say that personal relationships are important. Did you feel that you advanced your personal relationship with Mr Zyuganov in your meeting with him yesterday and is Britain taking the [indistinct] that he represents seriously enough?

    PRIME MINISTER:

    I had an extremely good meeting with Mr Zyuganov yesterday. We discussed a range of issues. And I read with astonishment the way it was reported this morning. I don’t recall Mr Zyuganov saying to me any of the things that were reported in the media this morning and I am at an utter loss to discover how they got there. Perhaps if some of those present wrote them, they can explain to me how they got there. But I can certainly tell you they did not get there on the basis of what Mr Zyuganov said to me in the meeting that we had yesterday, in no sense did they. It was a good meeting, it was a constructive meeting. I asked him about his programme, he answered about his programme, and we discussed a range of other matters about the situation in Russia generally. But at no stage did he speak in the aggressive manner in which he is reported in the Western press as having spoken to me yesterday. It simply did not happen.

    QUESTION:

    Prime Minister, obviously quite an important meeting last night.

    PRIME MINISTER:

    Which meeting are you talking about?

    SAME MAN:

    Sorry! The meeting with Mr. Carl Sherak [phon] over the question of the beef ban. Do you feel more optimistic today that we are slightly closer to a lifting of the ban?

    PRIME MINISTER:

    Yes. I think we have made progress. Of course, that wasn’t a decision-making meeting last night, it couldn’t be. Decisions are for the European Union as a whole. Self-evidently, the Agriculture Commissioner will be deeply involved in these and neither of the other members of the European Union nor the Agriculture Commissioner were present last evening but it was an opportunity to explain in a relaxed atmosphere a good deal more of how this matter is perceived in the United Kingdom and to explain some of the misconceptions, as we see them, that are, present amongst our European partners.

    What we have seen since the ban was instituted firstly by our European partners nationally and then endorsed by the European Union collectively is that the beef market has fallen very dramatically in the European countries as well. The effect of that ban on British beef, which is unjustified on health grounds, has also reflected in a collapse of confidence in the beef market amongst our European partners as well.

    I took the opportunity last night of making several things quite clear:

    Firstly, the fundamental point that there is no public health problem. The scientific advice is unequivocal, British beef is safe to eat – the view of British scientists, the view of the World Health Authority, the view of scientists in other areas as well. All the measures recommended by the scientists have been adopted by the British Government, all those measures are in place. The problem, as our European partners have skid, is one of confidence not one of public health and we have introduced measures in Britain. Those measures will involve destroying elderly animals that would otherwise have entered the market; those elderly animals are the ones that people were most concerned about, they will no longer be in the market. There is no justification for the ban in my judgement at all and the ban has a number of absurdities in it. Let me just illustrate a couple of the absurdities:

    Firstly, calves born after 1 April this year when we instituted the new controls on foodstuffs, under the ban they can’t be exported. That is nonsense, total nonsense. Those calves couldn’t possibly have been exposed to BSE in any conceivable way. I made that point to our European partners.

    Secondly, let me take another illustration. A farmer – and there are a great many farmers like this in the United Kingdom – whose animals have never eaten anything but grass, never close to any possibly contaminated feed at all, and yet they are banned and so are animals identified as coming from a demonstrably safe herd and so are animals coming from herds no members of which breeds, no member of which has ever had BSE – palpably absurd!

    I took the opportunity of running through some of those absurdities last night in the meeting we had. It was a very constructive meeting, it was not a decision-taking meeting, it was a meeting where we were all addressing a problem that now affects the whole of the European beef market, not just a British problem, and I think it was a worthwhile and constructive meeting and I think it will have played its part in helping inform people better for the decisions that will need to be taken in the days that lie ahead and I am delighted I had the meeting, I think it was very worthwhile.

    QUESTION (John Craig, Daily Express):

    On beef, the impression we get, however, is that you didn’t receive what one might describe as support for your position. We have heard what you said to them but was there any indication that they said: “OK! Yes, we’ll take that on board and we will go back to our colleagues and recommend that because of the action Britain has now taken the ban can be lifted!”?

    PRIME MINISTER:

    The first thing that needs to be done is that people have to understand the reality of what the situation is and not operate under the misunderstandings that there have been over recent weeks. I think I removed a number of those misunderstandings though I am not going to anticipate decisions that have to be taken not by the people who were here last night but by the European Union as a whole. I don’t think that would be wise, it certainly wouldn’t be prudent and I am concerned about the whole of the European Union understanding the position but let me reiterate I think it was very worthwhile having that meeting last night, I think there is a much greater understanding of what is happening across Europe. Each of the other people present of course learned what was happening in the other European countries and the collapse in beef confidence does stretch across Europe, that was apparent, so I reiterate what I said. I am not going to be drawn further on the issue. It was a worthwhile meeting, it was a constructive meeting and I think it was time very well spent.

    QUESTION (Phil Reeves, The Independent):

    Prime Minister, it is pretty plain that the Russians are continuing to prosecute a war in Chechnya despite the ceasefire that Mr. Yeltsin announced on March 31st. Did you raise this issue with him, did you discuss the question of the violation of human rights going on in Chechnya and what was Mr. Yeltsin’s response?

    PRIME MINISTER:

    Of course I discussed Chechnya with President Yeltsin while I was here. He is looking to see what can be done to reach a negotiated settlement, clearly he needs to do that if it is possible. It needs two sides to negotiate was the point he made to me but he is clearly looking to see whether that can be achieved; it is desirable in order to move towards a settlement in Chechnya. He indicated to me that there were many areas of Chechnya where there was no difficulty, that it existed rather fiercely in a number of areas but in some areas it had gone away completely. I can neither verify nor dispute that, I report what the President said to me and he was certainly seeking to take a constructive role to see whether they could reach a settlement.

    I am sure that is so for two reasons: firstly, it is self-evidently the right thing to do and secondly, it is self-evidently the prudent thing to do; it would clearly be extremely helpful in the present political atmosphere if some movement could satisfactorily occur on Chechyna.

    QUESTION (Jon Sopel, BBC):

    Sir Edward Heath, writing in the “Express” today, has said that if you lost another by-election you should call a general election. Do you agree with that and if you don’t do you think you could still go the full term?

    PRIME MINISTER:

    I haven’t seen Sir Edward’s article. Sir Edward is a very wise man and I always read very carefully what previous leaders of the Conservative Party have to say. I don’t always agree with them but I will read it when I return with some interest, but I won’t promise to agree with it.

    QUESTION:

    We have got the “Telegraph” hitting your Government with an unusually strong editorial, the “Sun” saying that you are depressed, rumours of Tories about to defect, some misunderstanding with John Redwood.

    PRIME MINISTER:

    Were you present at Question Time last Tuesday?

    QUESTIONER:

    I am afraid I missed that.

    PRIME MINISTER:

    I am sorry you missed that because I read I was depressed but doubt many people who attended Question Time on Tuesday would have thought that was the case and as far as the “Telegraph” is concerned the “Telegraph” must write what the “Telegraph” thinks it must write, I must believe what I believe to be accurate and have no intention of commenting on what newspapers write or newspapers say, they must take responsibility for their own words.

    I will tell you what I am interested in. I am not so much interested in that; I would have a look at some of the things that are happening at the moment, some of the things perhaps that people ought to look at more often.

    I don’t think there is any doubt whatsoever at the Moment that life is getting better in the United Kingdom after the recession, self-evidently so and is going to get better yet and in case you think that is a standard bit of politicians oratory – “He would say that, wouldn’t he?” – let me give you some concrete examples of why that is the case:

    Mortgage rates at their lowest level since the early 60s; I think I recall reading that the Beatles were top of the charts the last time mortgage rates were at this level, I think the song was “I Feel Fine!” and understandably so as mortgage rates fall. The proportion of new mortgages taken out by women more than doubled between 1983 and 1994, around 18 per cent, that is quite a significant change. Look at education! Huge increases in the choices and opportunities for people in the education sector. Look at changes in other peoples’ personal circumstances! 27 million people a couple of years ago took holidays abroad.

    If you look at what is happening, when can you last remember inflation below 3 per cent for the third successive year, unemployment lower that any other major economy in Europe, investment rising and growth as high as most other countries in Europe and better than almost any other country in Europe, more people in work than any other major economy anywhere else in Europe?

    I will extend the list if you like but they are I think what in newspaper parlance you call “feel good factors” and they are all becoming very apparent so if you want to know how I feel, I am delighted we have low inflation, delighted we have falling unemployment, delighted we have increasing growth, delighted we have good investment and I intend to make sure that we maintain the most benevolent economic situation we have seen for a very long time indeed and I intend very cheerfully to tell as many people as I possibly can that that is what the situation is.

  • Mr Major’s Joint Press Conference with President Kuchma – 18 April 1996

    Below is the text of Mr Major’s joint press conference with President Kuchma, held in Kiev on Thursday 18th April 1996.


    PRESIDENT KUCHMA:

    It is a pleasure to welcome our honourable guest, the Prime Minister of Great Britain to the capital of Ukraine, the city of Kiev. This is a continuation of the political dialogue which began between our two countries. We discussed the issues of bilateral relations with our two countries and I expressed my gratitude to the Prime Minister for the support to Ukraine for its independence, for the support of Ukraine’s integration into the European Union. Priority number one for us is the economic relations, [indistinct] with such a country as the United Kingdom which is recognised worldwide as the leader in developing economic relations. The issue of European security has also been in the focus of attention of our talks. We discussed the issue of the impending G7 summit in Moscow, and many others.

    I am happy that we share opinions on most of these issues and we are progressing. For Ukraine has no way back. That is why I would like to extend my gratitude to the honourable Prime Minister for his visit and I am pleased to give the floor to him.

    PRIME MINISTER:

    Mr President, thank you very much indeed. Perhaps I can firstly say that I am delighted to be here in Ukraine, to have the opportunity of these discussions with you this morning and with the Prime Minister later this afternoon. I am also delighted that we have already been able to sign mutual confiscation agreements to deal with drugs and other serious crimes. That is a matter we discussed when last we met, I am delighted the agreements have been reached because I regard them as a key part of the international fight against crime.

    But I am delighted to be here too for another reason. And that is because we are now able to visit an independent Ukraine, independent for five years, that has now set its feet firmly towards a new and different future. We believe that Ukraine’s success is important to Europe’s stability and we are firm supporters of the independent and democratic Ukraine that has been created.

    Over the last few years, Ukraine has been undergoing some very remarkable political and economic reform. None of these reforms is easy, a great deal of progress has been made both economically and politically. We understand very clearly the difficulty of these economic reforms, but we are utterly confident that as they are carried forward they will lead to a far better economic future for Ukraine.

    We wish to assist to the extent that we can. We shall certainly be providing extra resources for the Know How Fund, particularly to help in the key energy sector in the Ukraine.

    We have been discussing over luncheon a new British Embassy in Kiev which will be a visible illustration of the improved relationship between our two countries.

    Later on today I will visit a new British Council office, and very shortly important business trade missions will come here, one in particular led by the Lord Mayor of London.

    The President and I have looked this morning at the opportunities for increasing trade and investment between our two countries. We both believe that there is ample scope to do so, both for bilateral trade and also for bilateral investment, one country in another.

    We have also had the opportunity of previewing some of the matters that we will discuss at the G7 plus 2 Summit later on this week. I have found it a most useful and worthwhile occasion and I am most grateful to the President for his hospitality.

    QUESTIONS AND ANSWERS

    QUESTION:

    Prime Minister, what can the West do to prevent another Chernobyl and what, if anything, will come out of the G7 that will be helpful to that process?

    PRIME MINISTER:

    That is clearly going to be one of the matters that is going to be discussed at the G7, important to the President, important to me, important to the rest of the G7. It is now the 10th anniversary I think since the terrible tragedy at Chernobyl. We are fully committed to the implementation of the Memorandum of Understanding that has been signed between Ukraine and between the G7. There are funds ready there to be used, there are expert groups looking at what needs to be done, there is a European Union review of the particular difficulties relating to the sarcophagus. So there is a lot to be discussed and I would anticipate that that would be an important issue in our discussions later this week.

    QUESTION:

    In what context was the issue of Chernobyl discussed, will there be a joint programme of action in Moscow?

    PRESIDENT KUCHMA:

    In fact the [indistinct] has been worked out already, starting with the Memorandum of Understanding signed in December 1995. Now it will be the decision of Ukraine to close down Chernobyl. There is a wish and the decision of G7 to participate in implementing this decision, there is such a wish and I am confident that there will be practical efforts and practical steps in its implementation.

  • PMQT Written Answers – 20 December 1995

    Below is the text of the written answers relating to Prime Minister’s Question Time from 20th December 1995.


    PRIME MINISTER:

     

    Organised Crime

    Mr. Duncan: To ask the Prime Minister what plans the Intelligence and Security Committee has to produce a report on the proposed involvement of the Security Service in the work against organised crime.

    The Prime Minister: I can confirm that I have recently received an ad-hoc report on “Security Service Work Against Organised Crime” from the Intelligence and Security Committee. After consultation I have concluded that the report does not contain any matter whose publication would be prejudicial to the continued discharge of the functions of the Secret Intelligence Service, the Security Service or Government Communications Headquarters, and I have presented the report to Parliament today. Copies are also being placed in the Libraries of both Houses.

     

    Ukraine

    Mr. Dalyell: To ask the Prime Minister if he will make a statement on his talks with President Kuchma of Ukraine on (a) co-operation on nuclear power matters, (b) co-operation on space matters and (c) future joint use of Baikenor expertise.

    The Prime Minister: During my meeting with president Kuchma of Ukraine, I informed him that the United Kingdom looked forward to the signing in the near future of a G7-Ukraine memorandum of understanding regarding the closure, by the year 2000, of the remaining reactors at Chernobyl. The memorandum sets out a comprehensive programme of co-operation to support Ukraine’s decision on closure within the framework of wider energy sector reform and investment. I stressed the Government’s firm support for this programme. I did not discuss with President Kuchma co-operation on space matters or the joint use of the Baikenor launching site in Kazakhstan.

     

    Small and Medium Enterprises

    Mrs. Roche: To ask the Prime Minister what advice has been given to procurement staff on the implications of purchasing from small and medium enterprises;

    (2) what work his Department has done to develop best practice in the publication of departmental procurement guidance material relevant to small and medium enterprises’ need.

    The Prime Minister [holding answer 19 December 1995]: Guidance is included in the Cabinet Office’s draft procurement manual, which is due to be issued shortly to supplement existing Treasury guidelines. The Central Computer and Telecommunications Agency has provided guidance to its staff on the treatment of small and medium enterprises by means of legal and commercial practice notices.

  • Mr Major’s Joint Doorstep Interview with the President of Ukraine – 13 December 1995

    Below is the text of Mr Major’s joint doorstep interview with the President of Ukraine, Mr Leonid Kuchma, in London on Wednesday 13th December 1995.


    PRIME MINISTER:

    Can I firstly say what a pleasure it is to have the President and his colleagues here at Downing Street today. We believe that Ukraine has an absolutely pivotal role to play in the future of Europe, and I very much welcome the opportunity today to discuss with the President a whole range of political, economic and security issues that concern both our two countries.

    The President has also generously invited me to visit Ukraine and I have promised to do so in the first half of next year, and I very much look forward to that visit.

    In our discussions this morning I expressed the British government’s very strong support for the reform programme that the President is following in Ukraine. And my colleague, the Foreign Secretary, was able to tell the President that we propose to increase our contribution in the Know How Fund to assist the further development of Ukraine.

    We also discussed at length the European Union’s developing relationship with Ukraine. We very much welcome the Partnership and Cooperation Agreement which the United Kingdom ratified earlier this year. And we look forward very much to the entry next year of the Interim Agreement which will increasingly open European markets to Ukrainian exports. We think this is an important development in a growing trading and investment relationship between Western Europe and Ukraine. Ukraine has a vital role to play in European security and we are very keen to see the development of the relationship between NATO and Ukraine, and work on this of course is already under way.

    I also took the opportunity of thanking the President for his courageous decisions over Chernobyl and I look forward to the early signature of the Memorandum of Understanding which will include the Western assistance to Ukraine as a compensation for their decision.

    All in all these were extremely useful discussions with the President and his colleagues and I am delighted they were able to come here. And I very much look forward to resuming our dialogue in Kiev and elsewhere.

    MR KUCHMA:

    First of all I would like to thank the Rt Hon Prime Minister for the possibility to visit Great Britain. So that I had a chance to thank the government of Great Britain for their steadfast position, including the issue of acceding Ukraine to the Council of Europe. And I would like to thank the Prime Minister for having agreed to visit Ukraine during the first half of next year. And I am happy to have these sort of [indistinct] relations between Ukraine and Great Britain at the eve of Christmas. In fact we had a chance to discuss a wide range of issues, especially the bilateral ones, and I am happy that there is a strong desire on the British side to be more active in reforming the Ukrainian economy.

    So thank you once again and I am certain that this is only the beginning of a wide range of cooperation between Great Britain and Ukraine.

  • Mr Major’s Speech at the Britain in the World Conference – 29 March 1995

    Below is the text of Mr Major’s speech at the “Britain in the World” conference, held in London on Wednesday 29th March 1995.


    PRIME MINISTER:

    Ladies and Gentlemen, good morning. When I heard Jim was here chairing the conference I tore up my speech and prepared 32 interruptions.

    The motto to this conference today perhaps is best epitomised by a leading British Ambassador, now retired, who kept what became a very famous plaque in the middle of his desk, and in capital letters it bore a single word upon it: “THINK” – not I think a bad motto. And these days when Ministers and officials, pre-occupied perhaps obsessively sometimes with the immediate issues of the day, find themselves constantly under pressure to react, and react immediately, perhaps thinking long-term thinking may be thought to be an optional extra, but in truth it is not, it is essential.

    And thinking of course, thinking widely, perhaps quite outside the normal drift of thinking, is precisely what today’s conference is about. In its 75 distinguished years Chatham House has done a very great deal of useful thinking about foreign policy and in doing so it has provoked a great deal of thought amongst others, and I warmly congratulate it for that.

    I congratulate also both Chatham House and Douglas Hurd in bringing together on this occasion industrialists, bankers, politicians, public servants, academics, journalists, non-governmental experts and specialists in a range of different fields. Britain’s place in the world, in a different way perhaps, is of concern to all of us present today and everyone else in the country.

    And I am delighted also that later on today the conference will hear of how the United Kingdom looks from the outside from two very eminent speakers, Dr Kissinger and Dr Joffe, and I am delighted to see them both here today.

    Mr Chairman, this conference might equally have been entitled Britain in the Wider World, because over recent years the domestic debate in Britain has perhaps too often focused, and too narrowly focused, simply upon the internal workings of the European Union. And of course they are vitally important to our interests in this country, but so too are the United Kingdom’s interests and responsibilities in the other four continents and the oceans between, to which the other half, and at the moment a growing half, of our international trade goes.

    So I think it is right to widen the focus today, to ask whether this medium size country of ours of 55 million people really needs a global foreign policy, and if so, how we should operate it over the next quarter of a century or so. And I think the timing is right to look at that as well because there is a sense in which one historical period has ended and another is just beginning. It is surprisingly 70 years ago since Winston Churchill said: “What a terrible century the 20th Century has been”. Well a terrible 20th Century, savagely deformed by totalitarianism, by fascism, by World War and by Cold War, but marked also by astonishing technological progress, and yet it has ended sooner and more suddenly than anyone could have foreseen. And it is not merely, I believe, that the world is changing faster than ever before, it is at least as much that the rate of that change is accelerating. Events happen on a speed and on a scale which risks running beyond the control of governments and of international institutions.

    Let me give you but one graphic example in the 24 hour global money market. Ten years ago daily currency flows were of the order of 300 billion dollars. Now, thanks to computerisation and space-age communications, 1 trillion dollars can cross the exchanges in a single day. So 10 years ago central bank intervention could be decisive. I suspect that can no longer be the case and a different approach is needed.

    And change of a different sort has affected international politics and security. Today’s world is less predictable and perhaps more volatile than at any time in the past half century. The old known threats to stability, huge though they were say during the Korean war, the Berlin Blockage and the Cuban Missile crisis, they have changed, they have been changed, supplanted by new, often unknown and diverse risks. For example, international terrorism, some of it state-sponsored, must be high on the agenda of all responsible governments and so is the need to deny the most destructive modern technology to extremist regimes.

    I would like this morning to divide my remarks really into two parts. And first, as a backdrop to your discussions today, I would like to describe in outline the British government’s broad approach to the world. And then I would like to pose some questions to you, questions about how we should respond to the challenges and the opportunities that lie ahead.

    I suspect, looking at this audience, that I scarcely need to remind them of Dean Acheson’s famous dictum in the ’60s, that Britain had lost an empire and not found a role. It hurt, it hurt at the time because Dean Acheson was uncomfortably close to the truth when he said it, and that is why we hated him for saying it.

    But that was 33 years ago. Britain has found her role in Europe and around the world and has developed it more successfully than many people in this country appreciate. We have operated in that time as a leading member of NATO and the European Union, a Permanent Member of the United Nations Security Council, part of the Group of Seven Economic Summit countries, and of course as a founder member of the Commonwealth. The UK now has troops deployed or stationed in over 40 countries around the world in a wider variety of roles than ever before. The end of the Cold War may have led us to reduce the size of our Armed Forces, but not their quality which we believe remains the equal of any in the world, and nor their importance to this country for which the Armed Forces remain an outstanding national asset.

    We have begun I think more than ever before to realise the power of our language and of our culture. We have built up a remarkable portfolio of investments overseas. Per head the United Kingdom’s direct investment is higher than that of the United States, of Japan, of France or of Germany. Our global investments are said to be worth around 300 billion dollars and only Japan and the United States can exceed that sum. And that very naturally gives this country a very lively interest in what happens practically anywhere across the globe.

    I will not attempt this morning a full inventory of our national interests, but let me try and define some of the main characteristics of the United Kingdom in the world.

    First, this is a nation state, a nation state in what I firmly believe will continue to be a world of nation states for the foreseeable future. We are attached to our independence, to our sovereignty and also to our national peculiarities. But there are numerous interests that we necessarily share with others. We work particularly closely with our partners in the European Union which remains essential to our prosperity and to our security. The world may no longer be divided into rigid blocks, and nations must act more closely together than ever before to deal with the global, economic and security problems that we all must face.

    And second, it follows inevitably from what I have just said that we have at the moment a global foreign policy. Prescriptions for areas of concentration and inner and outer circles were floated in the 1960s and they were done then on a pessimistic analysis of the future outlook for Britain. We did not follow them at that time and I think the politicians of the day were right not to follow them for events have shown that that is the case.

    Thirdly, no less than in past centuries, the United Kingdom remains a trading nation, but in a world where invisibles are now as important as visible trade, and one quarter of our GDP comes from external trade. Export success, investment success, have both helped our current account to go down dramatically last year from nearly 12 billion to more or less zero and we now have a current account surplus with Japan, a point perhaps not generally recognised in every part of the country.

    Promoting trade is an important part of our activities, an important part of my own business abroad whenever I travel. The Indo-British Partnership which I launched in India has helped the surge in trade. Visits to other parts of the world that I have made and that other senior Ministers have made have so often taken with them large parties of British businessmen interested in trading with the countries abroad, investing in countries abroad and attracting investment from those countries into the United Kingdom.

    Those of you who are here today who are businessmen will have noticed, I believe should have noticed, a cultural change in British diplomacy abroad. Carlton Brown has left the Foreign Office and the Foreign Office now devotes far more of its overseas resources to commercial work than to any other front-line activity, and rightly so. And that has made a significant difference to the way in which British commercial interests can be represented overseas.

    And fourthly, the United Kingdom remains one of the world’s leading free market democracies. We actively promote democratic values and liberal economics in our foreign policy, not simply to proselytise but because in our view they are the best guarantors of peace and of stability.

    And fifth, we have stopped taking for granted the English language, British science, education, training and broadcasting, we realise precisely what assets they are and what can be done with them both at home and abroad. Through immense good fortune the United Kingdom originated the world’s most valuable piece of intellectual property – its main international and business language – and we are now marketing it more aggressively than ever before.

    Let me add one more characteristic. The United Kingdom is a conservative country, with a small ‘c’. We have enjoyed enviable stability over centuries and we cherish our institutions – Monarchy, parliamentary government, a rigidly impartial Civil Service, professional Armed Forces, an independent judiciary and churches operating within religious tolerance. It has become fashionable in some circles, some cynical quarters, to snipe at those institutions. I believe that is a destructive tendency, but it will pass because those institutions remain the bedrock of this nation and the bedrock of Britain’s place in the world and they will outlast superficial criticism.

    But the essential conservatism of the British, and I am not making a party political point here, it spans the political divide, should not be mis-read in any sense. We are rightly averse to revolutions but we are not afraid of change or of risk. And indeed I would go further. I think that our willingness to take intelligent risks, to act sometimes quickly and independently and to give a political lead, underpins Britain’s standing in the world. It explains why, despite nature’s inevitable limits on our size and resources, the UK is one of the five Permanent Members of the Security Council and has the world’s sixth largest economy. It is not a quality that we should permit to be submerged, it brings value not only to this country but to the international community as a whole. And let me perhaps put some flesh on that assertion, some illustrations from current policy.

    One revolution we did back, and backed sometime before it became fashionable to do so, was Gorbachev’s revolution in Russia. We did not hesitate to support the reformers when they came under attack, both under Gorbachev and under Yeltsin, and we have no intention of changing direction now. It may take a generation, perhaps longer, before Russia has a full range of effective democratic institutions, more time still before its people enjoy the standard of living we take for granted here, but we shall continue to take the long view for I believe that is the wise view to take with the changes taking place in Russia.

    There will inevitably be set-backs. Chechnya I believe is one such example. The Russians there faced an unenviable problem. But the response of Russian military commanders was wrong and it was brutal, as many Russians to their credit will acknowledge. The fighting there must be brought to an end, international conventions and norms of behaviour must be respected. We should not pull our punches at all over Chechnya, but that huge error does not toll the knell of economic and political reform in Russia, it remains in our interest in this country and in the West to encourage reform in Russia and to develop further cooperation in foreign policy. And that is why I stand by my decision to recognise our common sacrifice in the World War II by going to Moscow in May, as I promised President Yeltsin last September. And it is also why I continue to support Russian participation in the Halifax Summit later this year.

    We have taken a similarly long-term view of China. No longer these days is China a sleeping giant. We have welcomed China’s advance on the world scene, we would like to bring China into economic partnership and political dialogue. But at the same time we have not minced our words about human rights and their abuse in China. We are fulfilling our vital responsibilities to Hong Kong. That approach has not been free of risk but I believe it has earned respect and we will continue with it.

    PRIME MINISTER:

    When Yugoslavia erupted, the United Kingdom didn’t hang back. we sent in an emergency aid programme which remains the lynchpin of the international humanitarian effort. We convened the international conference in London against I may say a very unpromising background indeed and got a diplomatic process moving. The UK was amongst the first to deploy troops to UNPROFOR in Bosnia and our large contingent has performed outstandingly there. I am in no doubt whatever that the suffering in Bosnia would have been far worse without the steps that we took and that the war would almost certainly have spread perhaps southwards, perhaps wider to a full-scale Balkan conflict.

    That Bosnian problem is still with us and may I fear be with us for some years to come. In the past few days, fighting flared up again in Tusla, in Kravnik, even though the cease-fire has yet another month to run and if there is all-out war in Bosnia, UNPROFOR’s position could become untenable but sooner or later the Bosnian parties will need to find a negotiated outcome and there will be no clear-cut military solution and the sooner that is recognised the better. But however hard the task, it is in Britain’s interest, working with Europe and the Contact Group, to edge the parties towards a settlement.

    Two weeks ago, I visited Israel, Palestine and Jordan. It is an area fraught with political risk but the United Kingdom has huge interests and a longstanding affection for the Middle East. I was the first G7 Head of Government to visit Chairman Arafat in Gaza and I went because we have an interest in supporting the peace process. Yasser Arafat asked me on that occasion if the European Union would coordinate international monitoring of the Palestinian elections and the Israeli government, when I spoke to them, supported this request. I hope that the European Union will now agree to take on that task and thereby to engage more directly than ever before in the attempt to build peace in the Middle East.

    We have had to take risks over Iraq. We took losses in the Gulf War and broke new ground promoting safe havens for the Kurds. When Saddam threatened Kuwait again last year, we responded very rapidly and in force. Now, Saddam Hussein is trying to blackmail the Security Council by causing his people to suffer. The world must not give in to such tactics, Saddam must comply with the United Nations obligations and must never again be permitted to threaten Iraq’s neighbours but we must also help the Iraqi people, themselves innocent, who are as much his victims as anyone else and we must do that by standing robustly against Saddam’s wanton abuse of human rights and declining any compromise or accommodation with him whatever his blandishments and of course by trying to get aid through to those who are today suffering. Britain is therefore launching a new proposal in the Security Council to allow Iraq to sell oil and thereby import food and medicines. We wish to see an end to malnutrition and deaths from curable diseases. Saddam must show whether he has any concern for his people and I hope he will take up the offer that now lies before him.

    Neither, Chairman, has our commitment to the Kurds of northern Iraq diminished. I understand Turkish concerns about PKK terrorism but Turkey itself should remain within the rule of law. We look to Turkey to withdraw its forces as soon as possible and to avoid harm to non-combatants and to relief efforts.

    South Africa, like Russia, is at the beginning of a long-term transition without a guaranteed outcome. It would have been wrong for the United Kingdom to hold back and wait and see what happened so we are doing all that we can to help this remarkable transition we see daily in South Africa move towards success. I believe the United Kingdom can be a tremendous power for good in South Africa provided we don’t shy away from taking risks and there could be no better demonstration of this than last week’s outstandingly successful state visit by the Queen in which the Foreign Secretary took part.

    Finally perhaps Ireland. For the past four years, we have worked more closely than ever before in our history with the Republic of Ireland and we have done so to promote peace in Northern Ireland. In doing this, the British and Irish Governments had to overcome historic tensions and entrenched positions. It hasn’t been an easy process for either of us and many more difficulties remain to be surmounted but a lasting settlement will only come about if all concerned are prepared to risk a new approach.

    That, Mr. Chairman, is the sort of country I believe us to be and that I wish us to remain, perhaps a little less cautious and a lot more hard-headed than many people may believe.

    Now let me take the opportunity of speaking first at this Conference by throwing some of the difficult questions at you that governments will have to grapple with within the next quarter of a century and we perhaps may benefit from your advice today.

    How should the United Kingdom respond to future challenges and opportunities? If the last quarter of a century is anything to go by, the world in 2020 will be a very different place from the one we meet in today. By then, the Asian tigers, once aid recipients bearing a Third World label, should be prosperous players in the economic first division. How is that going to change the balance of political power around the world?

    Will China realise her huge potential and if so, to what effect? Will Latin America have consolidated democracy and taken off economically? Will South Africa have helped to generate an upturn not just in her own country but perhaps in all Africa south of the Sahara? What will be the consequences of the serious and mounting instability in North Africa? And in Europe we will, I hope, have embedded the new democracies of central and eastern Europe within an enlarged European Union but will we also have developed a close and harmonious relationship with the large states further to the east, with Russia and with Ukraine? How can we be sure of avoiding, as we must, a new dividing line down the centre of our European continent? Another question of some importance: to what extent will the United States still be engaged as an active partner in European security?

    Technology has made a huge change to the way in which the world operates. Instant television reporting can move public opinion in an instant, easy air travel brings people together more frequently at all levels, telecommunications and computerisation have revolutionised the work of overseas outposts, heads of government these days can pick up the telephone and speak to forty or fifty other heads of government whom they personally know and have met in a way that their predecessors could never have imagined and how will the march of technology affect us over the next generation?

    This is by no means an inclusive list but these are some of the variables in long-term thinking that are necessary for the present generation of politicians and businessmen and diplomatists to consider. Of course, we are often overwhelmed by short-term problems but how refreshing it will be to see some of these longer-term problems examined, considered and debated so that the public mood may be taken and the public wisdom gauged.

    What policies should we now be shaping to equip the United Kingdom for change to take advantage of the new opportunities, to be ahead of the curve as events move on and what is going to happen to the institutions of which we are a part?

    Let me here identify some of the key issues, turning first to the United Nations. The United Kingdom has supported the United Nations from its birth and played a leading role in it. Recently, we have been a leader of continuing efforts to reform the United Nations and make it more cost-effective and arguably – some would say unarguably – the need for a powerful, compelling United Nations has never been greater. The world is certainly replete with both man-made and with natural disasters and yet as we say that we see something else at the same time: the United Nations is in a profound financial crisis which is set to deepen; despite American arrears of $1.5 billion, the Congress has voted to reduce the United States contribution. Does the financial crisis present an opportunity for us to press for really effective reforms in the United Nations and if so, in what direction?

    Second, that crucial transatlantic relationship. Britain has a vast range of shared interests with the United States which I shall be discussing next week with President Clinton. We have traditionally favoured both a strong Europe and a strong relationship with North America. How can we help promote ties between the two heartlands of democracy now that we are no longer bonded together by shared fears over the Cold War? We have seen the first stirrings of a debate in Britain and in Europe about a new transatlantic community, it is a worthy aspiration but how should it be developed?

    Third, the United Kingdom and Germany have led the drive to extend western Europe’s security and prosperity to the east, to bring the countries of central Europe into the European Union and by forming closer ties with Russia and with Ukraine and this will require a huge political and economic effort over many years; it will require us to take the domestic strain of opening the markets of western Europe and of investing more in the east. Is this an attainable goal? Is western Europe simply strong enough to undertake that job?

    Fourthly, is our diplomacy adapting fast enough to new international problems?

    Some of the most acute threats to our interests and to our way of life are not posed by dictators, not posed by traditional conflicts but by terrorism and by crime, by the narcotics trade, by extremism in the name of religion, by diminishing natural resources and by environmental pollution. Do these problems receive a high enough priority? What new approaches to these problems should we now be developing?

    Fifth, how do we play our proper part in tackling world poverty? Official development aid can point to some successes, for example in South Asia, but it is trade, investment, education and entrepreneurship which have fuelled the more spectacular development of South East Asia. Hundreds of millions of people in sub-Saharan Africa have seen little improvement in their living standard despite huge flows of official aid over many years. How can we promote investment and entrepreneurship there? Is there still a rationale for official aid, tackling emergencies, promoting reform and spreading know-how? We have in the United Kingdom a tightly-administered aid agency in the ODA, it delivers both value for money and I believe credit to this country but increasingly the British bilateral aid budget is being swallowed up by our contributions to the multilateral programmes of the European Union so looking into the next century, what kind of aid programme should we maintain?

    Without pre-empting the many questions already on the agenda, let me just raise one final point. I am a firm believer in the Commonwealth. It is more of a family than an institution and it brings us together with nearly one-third of the world’s nations. Sometimes we make good use of its assets as in the Trinidad Terms initiative or the Harare initiative on good government but if we don’t keep using it, then I believe we will lose it. The Commonwealth needs a focus, it needs a raison d’etre; what should it be as we look at the years ahead?

    Mr. Chairman, as the opening speaker, I have had a luxury perhaps denied to others, a luxury of raising questions and inviting you to debate and perhaps supply some of the answers but I hope in some way I may have done a little more than that. I believe that this Conference is about building on success. The United Kingdom, as an island with a trading and a seafaring tradition, has always looked outwards. I am sure that we should continue to look outwards. We cannot afford a “Little Englander” mentality and frankly, I see little danger of that but I do think we will have to work even harder in the future to maintain the United Kingdom’s influence and a healthy competitive position.

    I hope that the outcome of today’s Conference will help to guide our way in the years ahead, I hope it will inject fresh thinking into our external strategy, I hope it will assess our strengths and our assets critically but fairly and suggest how they can be best applied to the greatest benefit. If this gathering of nearly 700 people with such wide experience at home and abroad can do that, as I believe it can, then Chatham House in the Institute’s 75th year will have made yet another invaluable contribution to national policy and for that we may all be grateful. [Applause].

  • Mr Major’s Commons Statement on the 1994 Economic Summit at Naples – 11 July 1994

    Below is the text of Mr Major’s Commons statement on 11th July 1994 regarding the 1994 Economic Summit at Naples.


    PRIME MINISTER:

    The Prime Minister (Mr. John Major) With permission, Madam Speaker, I shall make a statement on the Naples summit of 8 to 10 July, which I attended with my right hon. Friend the Foreign Secretary and my right hon. and learned Friend the Chancellor of the Exchequer. I have placed the communique of the seven-nation economic summit and the chairman’s statement on the eight-nation political summit in the Library of the House.

    The summit process is changing in two important ways. In 1991, I invited the then Soviet leader to join the seven for a meeting after the London summit. This practice was continued in 1992 and again in Tokyo last year. I discussed a new format with President Yeltsin in February. That was to invite Russia to become a full and equal partner in our political meeting. That was accepted and President Yeltsin’s involvement brought an extra dimension to the political aspects of the summit. He made it clear that Russia will co-operate closely on the most difficult international problems, from Bosnia to North Korea ; and he was warmly welcomed in that spirit.

    The second change is that the summits are returning to the informality and free debate which characterised the early meetings 20 years ago. The move away from set-piece speeches and pre-scripted discussions made it the most wide-ranging summit which I have attended. We shall allow even more time for unscripted discussions next year at Halifax.

    We spent some time discussing international institutions. Many of the main world bodies–the United Nations and the Bretton Woods institutions, for example–have been with us for nearly half a century. The world has changed enormously in that period and so have some, but not all, of our institutions. For example, the World Trade Organisation will take over as a permanent body in place of GATT, itself originally a temporary structure. But, generally, we concluded that we should think about further changes to those institutions which may be needed in the future. We need to decide how best to meet the huge tasks confronting the different parts of the United Nations and how to respond to new economic problems. We may need to revitalise those institutions. We shall all consider that between now and the summit at Halifax next year. If we conclude that changes are necessary, we shall begin the process of bringing them about. The summit countries alone cannot make those changes, but it is right for us to ask whether they may be necessary.

    On economic matters, the summit built on the G7 countries jobs conference held in Detroit earlier this year. The world economy is now emerging from recession. At Naples, there was wide agreement on the policies that the G7 countries now need to pursue : free trade, flexible labour markets, deregulation, policies that help and encourage unemployed people back in to work, and investment in education and training. Those themes will be familiar to the House, because they precisely match the policies that this Government have been pursuing. They were all warmly endorsed by the G7.

    Further trade liberalisation is an important part of the G7’s strategy. The completion of the Uruguay round was a significant achievement that will increase trade and growth right around the world. We need the various agreements to be ratified by the end of this year. Thereafter, we should consider further initiatives on trade and on economic liberalisation.

    The summit proposed additional debt relief for the poorest countries. That is something I have long been pressing for. At Naples, we agreed on two specific measures to help those countries facing special difficulties : first, more help with debt payments, taking the level of relief above 50 per cent.–to two-thirds and perhaps beyond ; and, secondly, reductions in the stock of debt. We also agreed to explore ways of getting the international financial institutions to use their resources more effectively to help the poorest and most indebted countries.

    Since I introduced the Trinidad terms initiative four years ago, 22 countries have benefited, with nearly $3 billion of debts written off thus far. The new proposals agreed at Naples will provide further help to lift a burden from some of the world’s poorest countries. We urged that there should be more help for the Palestinian authority, which is setting up an entirely new administration in Gaza and Jericho and needs to encourage new enterprises. Britain is contributing £75 million, bilaterally and multilaterally, over three years, including the extra help for running costs and technical assistance announced last week.

    Likewise, in South Africa, Britain has allocated £100 million to transitional aid over the next three years. South Africa’s re-entry into the economic mainstream could do much to revitalise southern and central Africa.

    We also spent some time on Ukraine, where there is an evident need to restructure the economy. Given her position and size, it is important to have both a stable and prosperous Ukraine. The summit countries and the international financial institutions are keen to help that process, which must include reform of the energy sector. We are putting forward an action plan to close the Chernobyl nuclear plant, where there are continuing worries about the risk of another accident. Our plan will require reform by the Ukrainians as well as providing significant financial help from the west. We agreed also to replenish the nuclear safety account.

    On the environment, the G7 were concerned about the slow progress in meeting the commitments made at the Earth summit in Rio, and agreed to speed this up. Britain itself has fully met her commitments under the action plan agreed after Rio by the Group of Seven. We have published the plans required under the climate change convention. We all agreed to report further progress at next year’s G7 summit. At the Commonwealth conference last year and the European Council in Corfu, I argued for more action by Governments to oppose transnational crime, drug trafficking and money laundering. This approach was strongly supported at Naples. Where necessary, we are urging countries around the world to introduce legislation to prevent money laundering.

    Bosnia was discussed in my bilateral meetings with both the Russian and American Presidents and, of course, at the political summit itself. Collectively and individually, our Governments will urge the parties to accept the Contact Group’s settlement proposal. We are completely united on that point. There is a risk of a wider and more intense conflict if this opportunity for peace is not taken. Later this week my right hon Friend the Foreign Secretary, together with the French Foreign Minister, will visit the former Yugoslavia to impress this point on the parties.

    We need assurances about North Korea’s nuclear programme, including compliance with the non-proliferation treaty and with International Atomic Energy Agency safeguards. The summit supported the efforts of the United States and of South Korea to develop a dialogue with the north, and I hope that they will be resumed when North Korea has a new leader.

    In Yemen, the recent, brutal civil war has left fears about the country’s future stability. Iraq’s support for the north has caused justifiable concern to our friends in Saudi Arabia and Oman, both of which border Yemen. The summit called on the Yemeni authorities to resolve internal difficulties without repression. We were concerned that Yemen would become a new source of instability in the region. I have highlighted the key political and economic points of what was effectively two summits in one. Summitry has proliferated over the past 20 years. I believe that we need a critical approach to make the best use of these occasions. Many worthwhile changes are now taking effect, and the Naples meeting was much more valuable as a result. I commend the outcome of the summit to the House.

    Mrs. Margaret Beckett (Derby, South): There is much in the communique that we welcome, and much on which the Prime Minister touched only lightly, if at all. In particular, we welcome the communique ‘s strong emphasis on the need for action to create jobs, to promote growth and the increased wealth that that creates ; to tackle the damage being done to our environment and especially the problem of Chernobyl, to which the Prime Minister referred, and to work with the Ukraine to remove its nuclear stockpile. I join the Prime Minister in urging acceptance of the settlement proposals for Bosnia since, unsatisfactory though some may think them, continued conflict could surely only be worse.

    We were also pleased to see in the communique that a start is being made on the reform and modernisation of the World bank and the International Monetary Fund. After talking about third-world debt relief on Trinidad terms for four years, it may actually begin to happen on a wider basis.

    However, does the Prime Minister acknowledge that for many in the developing world, money will still just be going around in circles with money freed by bilateral debt relief going to the World bank or the IMF instead unless steps are taken towards multilateral debt relief, building on the approach already adopted ?

    Although the Prime Minister spoke this morning of the advantages of increased international trade, does he accept that unless we find some way of oiling the financial wheels and promoting international support for the economic reconstruction and development to which he referred–in South Africa, the middle east as well as in eastern Europe–it simply will not happen ?

    We welcome the reference in the communique to the fresh allocation of special drawing rights for which the IMF and the new members from eastern Europe have called. However, can the Prime Minister tell us anything about the time scale for that decision and what discussions were held on other measures, perhaps, as in the past, financed from IMF gold stocks ?

    Will the role of the G8 be reviewed alongside the IMF and the World bank, as John Smith urged earlier this year, exploring the idea of an Economic Council of the United Nations alongside the Security Council and drawing in therefore, as the G8 at present fails to, other major economic players such as China and South America ?

    The Prime Minister’s principal contention in what he said about the economic summit is that the rest of the world is following Britain’s lead and that this because of our proven economic superiority. I can only describe that observation as self-deluding since it is supported neither by the words of the communique –and I urge Conservative Members to read the communique in the Library–nor by the facts. As anyone who reads the communique will discover, it calls for the co-ordinated pursuit of growth, job creation, skills enhancement, support for innovation and infrastructural renewal. Those are all Labour party policies since before the last election and they were all denounced by the Prime Minister as irrelevant and wrong. That leads one to wonder why he signed a communique which calls for precisely those measures.

    The Prime Minister should recognise that, if those words in the communique that he signed are to be more than empty words, a complete change of British Government policy will be required. Is it not the case that, far from endorsing the Government’s recipe of never-ending deregulation and lower wages, in the discussions the American Secretary of Labour called it

    “part of the problem not part of the solution”

    and that, although there is a call in the summit communique to reduce employment costs, this Government have increased them by pushing up national insurance and loading sick pay costs on employers ?

    The Prime Minister must also be aware that the truth is that, while all our competitors are keeping, and in some cases increasing, minimum wage protection–for example, in France and in some parts of the United States–and bringing measures like extra family leave into train, their record on growth, skills and job creation is better than ours.

    Is not the real message of the communique that our more successful rivals are pursuing, not the policies of this Government, but the path that we advocate? The Prime Minister and his colleagues show every sign of failing, yet again, to understand why they are failing Britain.

    The Prime Minister: I must say that that was a very novel interpretation, on which I shall comment in a few moments. I welcome the support that the right hon. Member for Derby, South (Mrs. Beckett) offered on a number of proposals in the communique relating to jobs, energy, environmental matters and on the approach that we are proposing on Bosnia. I also welcome what she said about the Trinidad terms. A substantial amount of debt has been written off already, but there is further to go. Some countries have been resistant to implementing the Trinidad terms, but I think that the Paris Club can now move ahead as a result of the agreement reached at the G7 in the past few days. That will be immensely helpful to many poor countries.

    As the right hon. Lady intimated, there are other ways of helping poor countries. It was rather masked in the arcane language of the communique , but we looked at using the IMF’s gold stocks to assist not only the very poorest countries in the world, but areas such as Gaza and South Africa, where there is a self-evident need for help. That is a wise way for us to proceed. In terms of job creation in those countries, the opening of markets, the liberalisation of trade and the elimination of debt will all provide an incentive for growth that will show within those countries–providing we are able to proceed with those proposals. The right hon. Lady then moved on to other matters and quoted rather selectively from the communique . Alas, she missed some points, such as a number of structural measures to reduce labour rigidities, which add to employment costs or deter job creation, eliminate excessive regulations, which will ensure that indirect costs of employment are reduced where possible, and to pursue active labour market policies.

    The right hon. Lady’s eyes apparently skimmed past a range of other things as she quoted from the communique . If she thinks that all those measures are Labour party policies, my hon. Friends and I will be very pleased to have learnt, at last, what it is that the Labour party stands for in terms of economic policies. As for the right hon. Lady’s concluding remarks about the relative performance of the United Kingdom, that is an old ground of dispute between us. I do not agree with her interpretation, because there is no doubt that our country is leading the European Community out of recession–there can be no doubt about that, because our growth this year is likely to be twice as high as that of any other European Community country. I find it astonishing that, when this country is doing well and companies and the work force are doing well, that is something that the Opposition appear to regret deeply. I am sorry to learn that.

    I must tell the right hon. Lady that we are leading the country and Europe out of recession. It is extremely good news for the world economy that the American growth now exists, that the Germans are now out of recession and that the G7 as a whole is moving back into growth by following the sort of policies that have brought this country out of recession, and not the policies that the Opposition advocate, which would take it straight back into recession.

    Mr. David Howell (Guildford): Does my right hon. Friend accept that he did an excellent and workmanlike job for Britain at the Naples summit ? He is to be congratulated on it. Like my right hon. Friend, I hope very much that the Contact Group will succeed in bringing peace of some kind to Bosnia. Can he explain why the Serb Bosnians should cease their fighting, after a 100-year ambition to expand their areas of control, when they have an unending supply of arms and equipment from Serbia proper? Has not the time come, particularly as Mr. Yeltsin is more on side now, to strengthen the embargo against Serbia proper in all sorts of ways? That would bring home to the Serbians and Serbian Bosnians that they cannot go on defying world opinion and that they must come to the peace table with everyone else.

    The Prime Minister: In his last few words, my right hon. Friend set out clearly the message which my right hon. Friend the Foreign Secretary and the French Foreign Minister will take to the Serbs in the course of the next few days. It must be made clear to Serbia that Serbia and the next generation of Serbians have no future unless they are prepared to come to an agreement that is satisfactory to the world community. They cannot continue as they are and they can certainly expect no relaxation of sanctions or any international help until and unless they reach an agreement that will bring the fighting to an end.

    For some time, both the Serbians and, on occasion, other parties have moved away from the settlement that could have been reached in the belief that, if they waited, they would get a better deal in the future. There is now no doubt that the international community is determined to do whatever it can to enforce a settlement. I find it striking that each of the political heads of the G8, including the President of Russia, were determined that now was the opportunity to put every conceivable pressure on all the parties to come to a satisfactory settlement.

    Sir David Steel (Tweeddale, Ettrick and Lauderdale): Does the Prime Minister acknowledge that the forthcoming mission of the Foreign Secretary and the French Foreign Secretary, backed by President Yeltsin, to try to persuade the warring parties in Bosnia that they must accept the peace settlement, however imperfect, deserves the united support of this House?

    On the economic section of the communique, will the Prime Minister forgive me if I do not quote bits of Liberal Democrat policy in its support, following the pattern already set? On the institutional changes contemplated in the world financial bodies, will he assure us that he will also look at their lack of accountability to member Governments and member Parliaments for the policies that they pursue?

    Finally, does the Prime Minister accept that, although the communique is less specific than his statement, we welcome the new debt relief proposals that he has achieved? He will know that the all-party Africa caucus lobbied the Chancellor before the meeting, and he saw us last year. We are deeply grateful for the progress that has been made. It will certainly bring widespread relief to at least six of the poorest countries in Africa.

    The Prime Minister: I am grateful to the right hon. Gentleman for his final point. As soon as we have moved a little further with debt relief, we need to look again at the countries that are eligible for it. Some countries fall on just the wrong side of the debt relief line currently available under the Trinidad terms, but those countries may be helped by the point which the right hon. Member for Derby, South (Mrs. Beckett) asked me about–the proceeds of institutional gold sales by the IMF. That would not necessarily be restricted to Trinidad terms countries.

    On the institutional changes, accountability certainly needs to be examined. That is perfectly clear. The underlying reason for that examination is simply to determine whether, after so many years, the institutions themselves are still relevant to the problems that are likely to face us in the next 10 or 15 years. By “institutions”, I mean not only the Bretton Woods institutions–the IMF and the World bank–but we need also to look at the United Nations, the development of NATO in the light of “Partnership for Peace”, and the enlargement of the European Union, as well as the changes that we have already seen with GATT becoming the World Trade Organisation. Those are not matters which the G7 can determine but, in all those institutions, the G7 countries are leading members.

    If we decide that there needs to be some reform, at that stage we shall wish to consult other members of those institutions in an attempt to bring about the reform. But I emphasise that the G7 does not see itself as a directorate that can impose those changes on the institutions. We are simply making the point that now is the time to examine them to see what changes are necessary.

    I agree with what the right hon. Gentleman said about Bosnia and I am grateful for his support for the visit of my right hon. Friend the Foreign Secretary.

    Several hon. Members rose

    Madam Speaker: Order. A number of hon. Members seek to question the Prime Minister. I am now looking for one brisk question each and, if I may, brisk answers.

    Sir Peter Emery (Honiton): Was further consideration given to the extension of the non-proliferation treaty to those countries that have not signed it? Will Japan support any action that might be taken against North Korea if the situation deteriorates rather than progresses?

    The Prime Minister: There was, in discussion, unequivocal support by all the G7 members, including Japan–and of course Russia as part of the G8–for the indefinite extension of the non-proliferation treaty in 1995.

    Mr. Peter Shore (Bethnal Green and Stepney): The summit communique reads remarkably like the election manifestos put out by my hon. Friends who are candidates for the Labour leadership– [Interruption.] –so, obviously, there are good things in it. In particular, I welcome the movement of the G7 into the G8, including Russia, and the arrangements for a very searching 50-year anniversary review of the institutions set up in Bretton Woods. On the question of aid, can the Prime Minister tell us what figure he hopes to put on the further concessions of debt relief as compared with the $3,000 million debt relief already gained ?

    The Prime Minister: I think that it is difficult to put a precise figure on it. I will examine the scope for further reduction, and I will write to the right hon. Gentleman with a figure. It will be a very substantial figure indeed, but I cannot immediately put a figure on it.

    On the earlier points, I am pleased to have the right hon. Gentleman’s support for the review of the institutions. I was a little surprised to hear of the apparent similarity between the communique and the manifestos of the potential leaders of the Labour party, which I have read with great interest– [Interruption.] I am not sure that my vote would swing the result–not least, though, alas, he is not with us this afternoon, that of the hon. Member for Kingston-upon-Hull, East (Mr. Prescott), who, despite what was in the G7 communique , said on 4 July :

    “Deregulation has been an economic failure”.

    Mr. Iain Duncan Smith (Chingford): Notwithstanding my right hon. Friend’s reply to the question of my right hon. Friend the Member for Honiton (Sir P. Emery) about nuclear proliferation, does he agree that one of the biggest problems is that North Korea and China are at the apex of a chain of proliferation which has already taken place, and that many countries in the middle east, not least Iran, Iraq and Libya, have significant capability and within the next five or six years are likely to have a launch facility which will be able to strike parts of Europe? Does he agree that now is the time for us to accept that proliferation has to some extent failed, and to find new measures?

    The Prime Minister: I am disinclined to accept the concept that proliferation has failed because I think that it is extremely important that we press the case for non-proliferation whenever and wherever we have the opportunity. It is not always entirely clear precisely who has the capacity to launch nuclear weapons and who has them. I wish it were a good deal clearer than it sometimes seems to us. But there is no doubt that we need to maintain pressure. My hon. Friend mentioned a number of countries which we have been pressing precisely on this point. He could probably name others, and so could I. However, we intend to continue to press for non-proliferation both through the treaty and, of course, bilaterally.

    Mr. Tam Dalyell (Linlithgow): What did President Yeltsin say to his colleagues about sanctions against Iraq ? How does the Prime Minister feel about continuing sanctions and the shortage of water filters and water pumps in the sweltering heat of Baghdad which will most certainly lead to massive disease in the Euphrates and Tigris valleys ?

    The Prime Minister: The hon. Gentleman knows of the humanitarian options that are available, and he and I have had the opportunity of discussing them in the past. President Yeltsin did not express a view on this matter, but Russia, of course, has supported the imposition of sanctions on Iraq, and continues to do so.

    Mr. Toby Jessel (Twickenham): Can my right hon. Friend tell us whether the Group of Seven considered the long-term economic impact on the rest of the world of the growing industrial strength of Asiatic countries, not only Japan, Korea and Taiwan, as it was, but now increasingly India, China and half a dozen other countries?

    The Prime Minister: We did not specifically discuss those countries in that sense, but in all the economic discussions of employment and growth, the changing position of south-east Asia and the Pacific basin countries was ever present in our minds. Many of the countries that were relatively captive markets to western states 20 or 25 years ago are now not only competing with those previous supplier countries but competing very successfully with them in different parts of the world. That is one of the matters that I think underlies the concern that we have for the maximum amount of industrial efficiency in this country, because competitiveness is far greater as a result of what has happened in the Pacific basin than it has ever been before.

    Mr. Andrew Faulds (Warley, East): The right hon. Gentleman mentioned the contribution that Her Majesty’s Government are making to the rebuilding of Palestine. Would he be good enough to give the House some idea of what contributions his G7 colleagues are likely to make to that purpose, and does he consider them anything like sufficient for the immense job that faces President Arafat?

    The Prime Minister: It is, as the hon. Gentleman says, an absolutely immense job. Apart from our bilateral contributions, there will be bilateral contributions of various sizes from a number of the other G7 countries, and also a substantial collective contribution from the European Union. I shall write to the hon. Gentleman with details of the figures that we have.

    Mr. Nigel Forman (Carshalton and Wallington): May I return to the issue of non-proliferation in relation to nuclear matters ? Was there any consideration at the summit of measures that it might be right for the G7 to take–and Russia to take–to encourage other sources of energy in countries that might be tempted to go nuclear precisely because they see nuclear power as their best chance for the future ?

    The Prime Minister: There was no discussion on that point–time did not permit detailed discussions on it. We are primarily concerned to make sure that the non-proliferation treaty is extended and that it sticks. As my hon. Friend will know, a large number of countries are at the moment disinclined to sign it; we are very concerned to make sure that they do.

    Mr. Dennis Skinner (Bolsover): Another summit, another jamboree. Why did not the Prime Minister tell us about the part of the communique that he had to deliver at the end of the summit in respect of those two Tory Members of Parliament with their noses in the trough?

    On the subject of deregulation, why should big business have to carry the on-costs of lining the pockets of Tory Members to put down questions ? In some of the other G7 Parliaments, the rule is : one Member of Parliament, one job only. If people cannot manage on £31,000 a year, they should not put up for the job.

    The Prime Minister: The hon. Gentleman no doubt thinks that these summits are enormous fun. Set against the attractions of a cricket final at Lords they do pale to a certain extent, at least for me. The matters mentioned, with his usual delicacy, by the hon. Gentleman were not discussed at the summit.

    Mr. Patrick Cormack (Staffordshire, South): When the Foreign Secretary goes on his crucial mission this week–we all wish him success in that–will he and his colleagues see President Milosevic, Mr. Karadzic and General Mladic together, to impress on them not only how seriously the G8 view their appalling actions but also the fact that those who are responsible for war crimes will be brought to book?

    The Prime Minister: I am confident that my right hon. Friend will meet each and every one of those gentlemen, but I very much doubt whether he will meet them together. There are likely to be separate meetings. He certainly proposes to see the leaders of the Serbs and the Bosnian Serbs, and I have no doubt that he will make my hon. Friend’s final point to them.

    Mr. Peter Mandelson (Hartlepool): Did the Prime Minister, in one of his scripted or unscripted moments in Naples, discuss the presidency of the Commission? In his quest for anyone but Dehaene to succeed Delors, can he tell the House who now is in the frame and what qualities they have?

    The Prime Minister: That too was not a matter for the G7 summit. There was no formal discussion at Naples of the Commission presidency.

    Dr. John Cunningham (Copeland): Go on.

    The Prime Minister: I shall repeat it for the right hon. Gentleman’s benefit : there was no formal discussion in Naples of the Commission presidency. It would be wholly wrong for four member states to form a caucus. [Laughter.] The House is well aware of the objection that I took to that on a previous occasion when there seemed to be a caucus. What is needed is thorough consultation between all 12 states, and that is what the German presidency has in hand.

    Mr. Anthony Coombs (Wyre Forest): The conclusions of the summit properly recognised the importance to economic growth of deregulation and labour market reform–despite the somewhat spurious claims of the Johnnies-come-lately on the Opposition Benches. Would my right hon. Friend agree that, in a European context, subsidiarity is particularly important? Does he agree with Klaus Kinkel, the German Foreign Minister, who recently said that subsidiarity provides the opportunity to roll back European decision making? Is not that evidence that European decision makers are at last coming round to the British view on subsidiarity?

    The Prime Minister: I certainly know that the German presidency proposes to take subsidiarity a good deal further during its presidency of the European Union in the second half of this year. I have not heard the particular quote by Mr. Kinkel, but it is certainly one to which I would subscribe, and it is an indication of the extent to which the terms of debate in Europe have changed.

    Mr. Harry Barnes (Derbyshire, North-East): If the Government think that they are dragging us up the economic hill, taking the G7 countries behind us, who took us down in the first place?

    The Prime Minister: One might ask the same question of all the G7 countries which suffered recession.

    Mr. Barry Field (Isle of Wight): In three weeks’ time, the Bank of England will be celebrating 300 years of survival. Does my right hon. Friend agree that the best news to come out of the summit is that the G7 central banks, and the Bank of England in particular, would no longer be required to chase the US dollar all over the Pacific?

    The Prime Minister: The tercentenary of the Bank of England is a remarkable occasion : the bank has been an astonishing institution over the years. My hon. Friend makes his point with great clarity.

    Mr. Harry Cohen (Leyton): Virtually the whole House will approve of the G7 putting up the money to close down Chernobyl nuclear power station. When is that likely to come about? There are other nuclear power stations of similar design in the former Soviet bloc. Will money be put up to close them down as well?

    The Prime Minister: We have reached agreement on the way to help the Ukrainian authorities to close the Chernobyl plant. That involves closing the remaining reactors and assisting to complete new reactors with modern safety standards. That will now have to be discussed with the Ukraine. That will happen speedily, and I hope that the resources can then be made available. We have centred on Chernobyl because of the nature of that reactor and its condition, which is one of the special concerns.

    Mr. John Greenway (Ryedale): Given that much of the nervousness in world financial markets appears in part to be due to worries about long- term inflation, what discussion took place on inflation prospects? Were other countries present able to point to the good news on inflation such as that we had today on factory prices?

    The Prime Minister: Yes, there was some discussion on inflation. There is no doubt that at the moment inflationary tendencies are subdued, not just in this country but in other countries. It is certainly the intention of the G7 Governments, as far as it is practicable, to keep inflation at the lowest possible level. I hope that that will have its long-term impact on the markets as soon as it is apparent to them that that is happening.

    Mr. Tony Worthington (Clydebank and Milngavie): The news that the United Nations and its organisations and the international financial institutions are to be reviewed is welcome, but is not this a matter of such importance that it would be appropriate for the Government to issue a consultation paper so that there could be widespread debate in this country on those matters?

    The Prime Minister: We first have to consider the matter ourselves. I shall consider the hon. Gentleman’s point. I am not immediately attracted to issuing a White Paper. I think that the first process is for us to consider as a Government–and I accept that it is certainly a reasonable matter for a debate in the House–whether we think that changes are necessary and, if so, what they might be. However, I would prefer to engage in discussion with other Governments before deciding what to press for. Although I hope that other people would not hesitate about letting us have their views, I am not at the moment attracted to publishing a White Paper.

    Mr. Jacques Arnold (Gravesham): May I draw attention to the pressure, according to the communique , that the G7 countries and Russia are putting on the Haitian junta to step down? In his campaign for democracy and human rights, will my right hon. Friend bear in mind the last Latin American republic that has still not returned to democracy and human rights–Cuba?

    The Prime Minister: My hon. Friend is right : Haiti is a matter of some concern to a number of countries and, of course, particularly, for self-evident reasons, to the United States. We should certainly like to see the restoration of President Aristide and democratic government. That is equally the view of the other G7 Heads of Government.

    Mrs. Ann Clwyd (Cynon Valley): The Prime Minister spoke of the concern of the G7 Governments for the poorest in the world. Was he able to tell them when his Government would reach the UN target of 0.7 per cent. of GNP for overseas aid?

    The Prime Minister: No Government was able to give a commitment as to when that would be. As the hon. Lady knows, I think that we have the sixth largest aid programme in the world. I think that our record is unequalled by any other country in terms of the amount and speed with which we have completely written off historic debt.

    Mr. Michael Brown (Brigg and Cleethorpes): I believe that my right hon. Friend said that South Africa was discussed at the summit over the weekend. Will he confirm that it is imperative that the G7, rather than just the United Kingdom, contributes to ensuring the economic development and regeneration of South Africa? If that country succeeds economically, the trickle-down effect across the whole continent will be of great benefit.

    The Prime Minister: I agree with my hon. Friend. There is no doubt that other countries also recognise the importance of South Africa. In effect, they recognise that in two ways–the importance of dealing with the internal difficulties of the new South African Government ; and, equally, the impact of a successful South Africa on the whole of southern and central Africa. I have no doubt that other countries will offer assistance. My right hon. Friend the President of the Board of trade is currently in South Africa, with business men, to determine what assistance can be given.

    Mr. Geoffrey Hoon (Ashfield): In his statement, the Prime Minister suggested that the G7 supported his Government’s calls for flexible labour markets. However, was it not the case that in the final communique other members of the G7 insisted specifically that the word “flexible” was not part of the final words? Is not that because they have quite a different view from Government policy on the best way to create jobs?

    The Prime Minister: I am not sure where the hon. Gentleman heard that, but it did not occur in any discussion to which I was party.

    Mr. Ian Bruce (South Dorset): Following directly from the question asked by the hon. Member for Ashfield (Mr. Hoon) about job creation, did not the G7–now G8–countries discuss the introduction of an information super-highway? Did not they have before them the European Commission’s White Paper on growth, competitiveness and trade? If so, were not they surprised that it is full of the British solution to introducing an information super-highway, which is competition, deregulation and privatisation?

    The Prime Minister: That White Paper was referred to in the discussions, although the super-highway was not mentioned other than in the general sense of greater liberalisation of telecommunications.

    Ms Glenda Jackson (Hampstead and Highgate): Will the Prime Minister tell the House why the G7 nations cannot bring pressure to bear on the International Monetary Fund and the World bank on the issue of accountability? Will pressure be brought to bear on the IMF and the World bank to ensure that in future developing nations will be genuinely treated as equal partners and not as beggars?

    The Prime Minister: I do not think that the IMF views indebted countries in that fashion. It tries to assist them and to help them out of their difficulties. That is one of its purposes. Certainly those IMF officials whom I have met would not in any way characterise the countries in the way that the hon. Lady described them. There is no doubt that there is a need for assistance for those countries. I believe that the IMF provides it. However, as we examine the future of the IMF and other institutions, we need to consider whether that can be done better in the future than it has been done in the past.

    Mr. John Marshall (Hendon, South): Although the whole House welcomes the trade and aid policies being pursued by the European Union towards Gaza and Jericho, does my right hon. Friend agree that the responsibility for helping those parts of the world goes much wider than just Europe? Was any estimate made of the contribution that the oil-rich Arab states could make to the regeneration process?

    The Prime Minister: My hon. Friend touches upon an important point. There is no doubt that the Arab states–many, although not all, of which are oil-rich–should make a significant contribution to the future development of Gaza. That point is relevant– [Interruption.] I hear an Opposition Member whispering that some of them have already committed.

    Mr. Dennis Skinner (Bolsover): Some of the money has gone.

    The Prime Minister: The hon. Gentleman interrupts me. An Opposition Member whispered that some of the Arab states have already contributed. Others have indicated that they will do so.

    Dr. Norman A. Godman (Greenock and Port Glasgow): Was there any discussion of the urgent need to provide continuing financial assistance to those countries most heavily affected by the imposition of United Nations sanctions against Serbia and Montenegro? The Prime Minister will surely agree that Bulgaria, Romania, Hungary and Macedonia deserve continuing assistance.

    The Prime Minister: There was no specific discussion of that matter, for the simple reason that the international financial institutions take that into account in the assistance that they provide at present.

    Mr. Michael Bates (Langbaurgh): Is my right hon. Friend aware that news that the considerable needs of the poorest nations of the world featured so high on the agenda of a meeting of the richest seven nations will be deeply refreshing to many people throughout the country? Will he ensure that the review of international institutions, which is long overdue in the eyes of many, will specifically examine the costs of bureaucracy and duplication so that the maximum amount of money can go to those who need it most?

    The Prime Minister: My hon. Friend is entirely right about that. In providing further assistance to many of the poorest countries, there is a need not only for cash assistance–and I do not resile from the fact that much of that is necessary–but to do whatever can be done to ensure that the money is used for the purposes for which it was intended.

    Mr. Michael Connarty (Falkirk, East): Did I hear the Prime Minister make a fleeting reference to unemployment and employment creation? If I did, does the right hon. Gentleman accept Library statistics that show that, in Britain today, only 25 million people are in employment when the peak figure in 1990 was 26 million? We are 1 million jobs short. Will the Prime Minister give an assurance that, when the G7 nations discussed that matter, they did not settle on the part-time, low-wage, poverty-making employment that the right hon. Gentleman’s Government have created? What will they do to provide real jobs at decent wages for people in G7 countries?

    The Prime Minister: I have to say to the hon. Gentleman that he is completely wrong. Perhaps he would like to tell me how many countries have a higher proportion of their adult population in work than does this country. There is only one in the European Union, and the hon. Gentleman would go a long way outside to find another that is better. The drivel talked by his hon. Friends can safely be ignored.

    Mr. Mike O’Brien (Warwickshire, North): Will the Prime Minister confirm that, either at the summit or in his bilateral discussions with President Clinton, he raised concerns about the fall in the US dollar and the impact that that would have on constituents such as mine who work at Jaguar who need to export to the US market?

    The Prime Minister: No. I am not going to make any comments in the House on currency values.