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Foreign 
atreet | 
ilinenkletye 
Service 


ANNIVERSARY 
1941 - 1991 | 








Daily Report— 








West Europe 





FBIS-WEU-91-122 
Tuesday 
25 June 1991 











Daily Report 
West Europe 











FBIS-WEU-91-122 CONTENTS 


NOTICE (O READERS: An * indicates material not disseminated in electronic form 
INTERNATIONAL AFFAIRS 


Greenpeace Warns of Pacific Nuclear Pollution /4FP) 

EC Ministers Reach Compromise Agreementon VAT /4FP/ 

EC Warns South Korea on Patent Discrimination /4FP/ . 

Fishing. Transport Block Open Europe Talks /4FP/ . 

Danish Official on Sweden's EC Membership /Oslo ARBEIDERBLADET 22 Jun] 
Greek Leader Attends People’s Party Meeting /4Athens T1/ 


UNITED KINGDONI 


IFP’s Buthelez: Pushes For Peace in RSA = /l miata Radto/ 
Warns of “Civil War /Johanneshurg SAPA/ 
Urges Change in Policy /Johanneshure Radio] 


CANADA 


* Economic Chaos From Deconfederation Predicted /L4 PRESSE ~ May/ 
* Bourassa Comments on Environmental Policy /L4 PRESSE 2° May/ 

* Montreal Civic Party Divided by Crisis /L4 PRESSE 6 May] 

* Quebec Takes Over Industrial Development /LE DETOIR 3 May 


GERMANY 


EC To Continue Support for Eastern Laender /4DN/ 
No Constitutional Amendment /4DN/ 
Kohl Meets With UK's Kinnock, Discusses EC /4FP) 
Kohl, Gorbachev To Meet in Kiev for Talks 5 Jul /Cologne Radio] 
SFRY's Loncar on CSCE, Role of Country /NEUCES DEUTSCHLAND 19 Jun] 
Berlin Vote Count Error Found: Result Same /DP4/ 
Ministry Starts Work on Government Location /4DN/ 
Suessmuth Interviewed on Decision Favoring Berlin /DER SPIEGEL 24 Jun] 
Charges Brought Against Judges. Prosecutors /BJLD AM SONNTAG 23 Jun] 
Bundesrat Passes First ‘All-German’ Budget /DP4A/ 
Bundesbank Calls For Spending. Subsidy Cuts /DP4/ 
Trust Agency Reports on Internal Debt Situation /DP4/ 
Modrow on Continuing PDS Congress in Berlin /DP4/ 
Official Responsible for Foreigners Resigns /D?P4/ 
Government May Cut Aid to Armed Third World /DP4/ 
Stoltenberg. De Cuellar Discuss UN Forces /DP4/ 


FRANCE 


European Operation To Aid Kurds in Iran Sought /4FP/ 
Mitterrand, UK’s Mayor Hold ‘Private’ Meeting /Paris Radio 

Discuss European Unity /4FP/ 
UK's Hurd, Lamont Downplay EC Differences /London PRES » ASSOCIATION] 
European Affairs Minister on European Union /LE VONDE 23-24 Jun] 
Expulsion of Moroccan Writer Prompts Reactions 

Human Rights Group Protests /Paris Radio] 

Mitterrand Comments /Paris Radio] 

Protest March Held /447 


25 June 1991 


wailiti—_—— — 


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FBIS-WEU-91-122 


25 June 1991 2 West Europe 


ITALY & VATICAN CITY 


German President Von Weizsaecker Arrives in Rome /Hambureg viele ee 
Pyime Minister Receives Omani Defense Official /Muscat Radio] - . emeuseusees scansapaneaenpneeans 
Occhetto’s Deputy on Privatization Options /MONDO EC ONOMIC 02 27 Apr} saiebpalalonnenientsnsiiedisnuaiiet 


SPAIN 


Spokeswoman on “Murky Perception’ in Politics /YA 16 Jun] . ‘cautinaseyebaanesseeesnshiiminassdatedédsesiamiansstil 
ETA Car Bomb Attack Injures 8 in Madrid /Madrid Radio] . sAennesnbsevesehessionesthecetediapeNisasapeeeaaianns 
* Strikes, PSOE-UGT Relations Examined /C4MBIO 16, 27 May) - | pinsauinnteensaniareesnnsatinesebsubsanssciaenewiads 
Scientific Agreement Signed With Argentina /Buenos Aires TELAM) |........................ menesstnntabeusecbaiamens 


NORDIC COUNTRIES 
Denmark 


* Greenland Leader Lars Emil Johansen Profiled /BERLINGSKE SONDAG 14 Apr] .................. 
* Byerregaard Seen Unlikely To Head SD /BERLINGSKE TIDENDE 17 May) ....................... acess 
* Greenland Trade Surplus for Last 2 Years Noted /Nuwk GRONLANDSPOSTEN 25 Mar] ........ 


Finland 


* Collapsing USSR Trade, EC Tie Linked /Stockholm DAGENS NYHETER 28 May) iqmoenveniecss | 
* Role of Soviet Ties /DAGENS NYHETER 28 May] . aueunusconesies 


Sweden 


Two KGB ‘Spies’ Reportedly Seek Asylum /Stockholm Radio] ....0.0....00000000060000000cceeveceevveeeeveveeveees 
* Liberal Party Leader Rejects NATO Tie /DAGENS NYHETER 28 May] ooocccc..00600000000000000000006 
* Parties’ Stand on Neutrality, EC Examined /DAGENS NYHETER 29 May] oo...0...0..006...00.0006 
* Neutrality Deemed Compatible With EC Tie /DAGENS NYHETER 29 May) ........... ssusiuoonienboed 
* Prime Minister on Job, Upcoming Election /DAGENS NYHETER 12 May] o.o.....00....000.00000-. 
* Defense Industry Affected by Budget Cuts 200.000.0000. cccccccccccccccccsceeeveseeeessseseerseseevseereeseneneeeennees 
* Defense Budget Frozen /DAGENS NYHETER 18 May] oo0..00..00.c00c00000c00c0ecseeseeveeseereeeeevevevnes 
* Exports Also Hurt /DAGENS NYHETER 25 May] ....................... snedbsdaneaeidiansenmenaniies 
* Navy Reducing Acquisitions /DAGENS NYHETER 17 May] seubecudesuebhetacsonhorsahecsouenbaben 
* Arms Maker Cutting Jobs /DAGENS NYHETER 31 May) ......... mesecesmonuneeceesenebints 
* Political Apathy Among Youth Said Growing /DAGENS NYHETER 8 May) sjenapasscenmessesnanetstsainn 


GREECE 


Iramian Delegation Pays Official Visit to Athens /T7Tchran — cackadeotuspsseaverssabelieubesevsieiapmespsataninintaieases 
Trade, Economic Ties Viewed /Tehran IRNA/ . sseaephonsnabeedesnssenssnnesonunsessensubnedsonneeeetanette 
Cooperation Agreement Signed With Albania /4Athens Radio) ssseeusshmiseaaneusaansennansons aanscaveneeenastsaneeaueneninni’ 


TURKEY 


Article Examines U.S. Involvement in Cyprus /MILLIYET 2] Jun/ .... seshandssaneaghesedsanssonsseddasssuesnnannnn 
Mistakes in Policy Toward Cyprus Examined /GUNAYDIN 20 Jun] ae ienohieneecesswastdasavenbinvennounbens 
Kurdistan Workers’ Party Militant Captured /MURRIVET 22 Dem] ooccccccccccccccccccccccceccccesseevseenseenseerennvvne 
* General Manager on Opening Banks in Germany /DUNYA 22 Apr] saueetosaseeheaieentas 


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FBIS-WEL -91-122 
25 June 1991 


Greenpeace Warns of Pacific Nuclear Pollution 
AU 2406131691 Paris AFP in English 1235 GMT 
24 Jun 9! 


[Text] Brussels, June 24 (AFP)}—The ecological organi- 
sation Greenpeace said here Monday [24 June] that 
radioactive clements were leaking from French under- 
ground nuclear testing sites in the South Pacific, and 
called for an independent probe. 


It called on the European Commission, executive arm of 
the European Community (EC), to back its demand for 
an independent study of the effects of nuclear testing on 
two coral atolls in French Polynesia. 


Greenpeace official Jean-Luc Thierry told a press con- 
ference: “The tests and the concealment must stop.” 
“The environmental consequences of damage to the 
coral atolls (of Mururoa and Fangatau) and marine 
er. vironmeat from France's nuclear tests are far too 
serious t» be hidden behind military secrecy.” 


Greenpcace said plankton samples it collected in 
December 1n the ocean near the testing area contained 
cesium-1! 34, which results from nuclear testing. It said 
this indicated radioactive contamination from the 
testing site. 


But the organisation said it had been unable to obtain 
final proof because the French military had barred access 
to its military exclusion zone around Mururoa, and had 
arrested five Greenpeace researchers venturing inside it. 


“Greenpeace is concerned that radioactivity may 
already be leaking from the French underground nuclear 
tests at Mururoa and Fangatau, despite official French 
assurances that no leakage will occur for hundreds of 
years,” it said. 


It said the European Atomic Energy Community (Eura- 
tom), the EC’s nuclear energy arm, had the legal right to 
demand French cooperation in an independent investi- 
gation, and should enforce this right. 


Greenpeace also released a copy of a letter to French 
Prime Minister Edith Cresson, signed by 15 scientists, 
calling for an independent probe of what it called a 
“potentially grave environmental threat.” 


The scientists, from France, Britain, Germany, the 
United States, Japan, New Zealand and Fiji, rejected a 
recent French offer of an investigation by scientists at 
nuclear institutions because they said it lacked indepen- 
dence. 


EC Ministers Reach Compromise Agreement on VAT 


AU 2506100791 Paris AFP in Enelish 2340 GMT 
24 Jun 91 


[Text] Luxembourg, June 25 (AFP)}—Finance ministers 
from the 12 European Community states on Monday 
reached a compromise agreement on basic EC-wide 
indirect tax rates. 


INTERNATIONAL AFFAIRS 1 


Britain said it would apply the new rates although it 
would not agree to a formal EC directive making them 
obligatory. 


Officials said the ministers had agreed that the 12 
countries would apply a main value-added tax (VAT) 
rate of 15 per cent from the start of 1993, with five per 
cent as the lower rate. 


The ministers also reached partial agreement un future 
EC-wide excise taxes—those affecting fuel, tobacco 
products and alcoholic drinks. 


Agreement was not forthcoming on excise taxes for 
spirits, although the |2 ministers did resolve a dispute 
among wine-producing states by agreeing to Germany's 
proposal that wines would be zers. rated. 


France, which had sought high tax rates on wines 
because it wants to encourage betier quality in the 
industry, got an agreement to investigate ways of con- 
trolling wine grades, even with a zero tax rate. EC 
officials said this should be possible. 


Britain, which is refusing the principle of compulsory EC- 
wide tax rates, agreed to apply the new rates nevertheless, 
said Luxembourg Finance Minister Jean-Claude Juncker. 


However, the other |! states agreed to enshrine the new 
agreement in an EC directive, which will be binding on 
members. 


As EC rules call for all decisions on taxation to be taken 
unanimously, Britain will have the possibility to derail 
the agreement when 11 1s finally voted on, analysts noted. 
It was not clear whether London would decide to take 
such a course. 


A last-minute objection from Britain also prevented full 
agreemeni On excise taxes On spirits. 


Mr. Juncker said the British delegation, after calling for high 
excise taxes On spirits, changed its mind and decided to ask 
for low rates. However he said the problem was expected to 
be ironed out in the next few months. 


Denmark obtained a special clause in Monday's agree- 
ment allowing it to restrict the amounts of tobacco 
products and alcoholic beverages its nationals can pur- 
chase in other EC countries, even after 1993. 


The country applies very high taxes, and fears problems 
with smuggling from neighbouring Germany. However 
Mr. Juncker said the special dispensation for Denmark 
should disappear after a transitional period. 


EC Warns South Korea on Patent Discrimination 


AU 2406170891 Paris AFP in English 1700 GMT 
24 Jun 91 


[Text] Brussels, June 24 (AFP)}—The European Commu- 
nity (EC) warned South Korea here Monday that good 








tw 


relations between the two sides depend on resolving a 
long dispute over protection of intellectual property 
rights 


4 spokesman for the EC's executive commussion said the 
warning was given by commission vice-president Frans 
Andriessen to the visiting South Korean Trade and 
Industry M:nister, Lee Bong-Suh. He quoted Mr. 
Andnessen as insisting that South Korea should extend 
the same patent protection to goods from EC countries 
as it did to US. products 


For years the EC has takcn every opportunity to protest 
a 1987 South Korean law that enforces intclicctual 
property mghts, bul gave retrospective protection to 
patents and copyright issued only in the United States 


Mr. Lee was reported as saying in London last week that 
his government was planning an initiative to resolve the 
dispute. The pharmaceutical industry in EC countries 
has been a particular victim of South Korean imitations. 


The commission spokesman said Mr. Andriessen had 
also pressed for financial services in EC countries, par- 
ticularly banking. to be given more access to the South 
Korean market 


The EC commissioner, who visited South Korea last month, 
warned at the time that cooperation in science and tech- 
nology. as well as political relations, risked being damaged if 
the intellectual property dispute 1s not solved 


Mr. Lee 1s scheduled to attend an economic forum 
organised by EC and Korean business here Tuesday 


Fishing, Transport Block Open Europe Talks 


il 240614589] Paris AFP in Enelish 1401 GMI 
24 Jun 9! 


[Text] Salzburg. June 24 (AFP)}—European ministers 
were working here Monday to break a deadlock which 
has delayed signing of an agreement between the Euro- 
pean Community and seven northern European states on 
a free trade zone 


The two-day ministerial meeting in Austria had been duc 
to finalise negotiations and initial the agreement 
between the 12 EC countries and the seven members of 
the European Free Trade Association (EFTA) 


But disagreement, chiefly over fishing rights and trans- 
Alpine travel has meant that initialling of the agreement 
has been postponed. It will now probably take place in 
Finland in July 


The Salzburg meeting is however expected to issuc a 
Statement announcing political agreement in principle 
on setting up the European Economic Area 


The EC has no intention of signing an agreement to sect 
up the European Economic Area unless the problem with 
EFTA members Austria and Switzerland over trans- 
Alpine lorry traffic 1s resolved 


INTERNATIONAL AFFAIRS 


FBIS-WEL -91-122 
25 June 1991 


Negotuations are deadlocked, with Austria insisting on a 
reduction in the current level of traffic. something the 
EC 1s refusing. 


Austria and Switzerland want to maintain strict lumits on 
truck numbers and weights, despite EC guarantees to 
reduce pollution from the trucks. 


There are also disagreemets over access for EC trawlers. 
chiefly Spanish, to Norwegian and Icelandic waters. 


But the two sides have reached agreement on the setting 
up by EFTA of a solidarity fund to help the poorer EC 
members, although the amount has not been fixed. 


There are also 18 technical points which remain to be 
resolved. 


EFTA groups Switzerland, Austria, Finland, Sweden. 
Norway. Iceland and Liechtenstein. 


Danish Official on Sweden's EC Membership 


PM2506095 291 Oslo ARBEIDERBLADET 
in Norwegian 22 Jun 91 p § 


[Report on interview with Danish Foreign Minister Uffe 
Elilemann-Jensen by Byorn Haugan: place and date not 
given] 


[Text] Uffe Ellemann-Jensen has made it clear that he 
intends to do his best to see to it that the processing of 
Sweden's EC membership application 1s completed 
while Denmark has the EC chairmanship in the first half 
of 1993. This means that our Swedish neighbors could be 
EC members as carly as 1994. If Ellemann-Jensen 1s right 
in what he told ARBEIDERBLADET today, he has 
pulled the rug from under the EC timetable proposed by 
the [Norwegian] Labor Party which the party's national 
executive commitice will discuss today 


The temetable means that the party will not reach any 
decision on whether Norway should seck EC member- 
ship before its national congress in November 1992 


It was in connection with Sweden's application for EC 
membership on 14 June [as published] that Ellemann- 
Jensen said that he would like the Swedish application to be 
completed by spring 1993, while Denmark has the EC 
chairmanship 


{Haugan} Mr. Eliemann-Jensen, if Norway 1s to have its 
membership application dealt with in parallel with Swe- 
den’s, when should it be submitted” 


[Eliemann-Jensen] It is to be expected that the EC 
Commission's statements on Austrian and Swedish 
membership—compare the Treaty of Rome's article 
237—will be ready at some point in 1992, with Austria 
first. Once the statements have been made, negotiations 
on the expansion of the EC can begin. It would be 
reasonable to assume that these negotiations could begin 
toward the middie of 1992. If this scenario does hold, a 








FBIS-WEL -9!-122 
25 June 1991 


Norwegian membership application ought probably to 
be submitted before the end of 1991. if parallel negotia- 
tions for Norway and Sweden are what 1s wanted 


[Haugan] The Labor Party ts to reach a decision on a 
tumetable at the party's national executive commitice 
mecting today. If they decide to wait until November 
1992 to possibly decide in favor of submitting an appli- 
cation, what will this mean in purely time terms—when 
could negotiations between Norway and the EC then be 
completed” 


[Ellemann-Jensen} If Norway 1s not involved in the next 
round of negotiations alongside Austria and Sweden. 
negotiations to expand the EC to include Norway could 
only begin in a new round of negotiations. When this 
next round of negotuations can be complcted depends on 
how many other applicant countries there are at that 
point in time—Finland, Iceland. Switzerland, Poland. 
Hungary. Czechoslovakia” 


[Haugan] In many ways—socially, economically. polsti- 
cally, and geographically—Norway and Sweden are sim- 
ilar countries, with many common features. What 
advantages would there be for tie two counines in 
negotiating EC membership in paralic!” 


[Ellemann-Jensen] The great similarity between Sweden 
and Norway will mean that the two countries will not 
slow down cach other's admission to the EC. if they 
negotiate together. | will leave it to the Norwegians 
themselves to assess the extent of features shared with 
the other countries which will be seeking membership in 
the future 


[Haugan] In Norway there 1s a fear that we could have a 
carbon copy of the agreement between the EC and Sweden 
forced on us, if we negotiate with the EC after Sweden has 
completed its negotiations. This fear 1s due precisely to the 
fact that Sweden and Norway have so many common 
Starting points. Can you understand this fear’ 


{Eliemann-Jensen] If Norway and other Nordic coun- 
tries negotiate admission to the EC after Sweden has 


INTERNATIONAL AFFAIRS 3 


become a member. the EC will clearly use the model for 
Swedish admission as a foundation for negotiations on 
further expansicn to include these Nordic couptrics. but 
naturally consideration will be given to differences 
relating to cconomuc structures, and so on 


[Haugan] If Norway has to negotiate after Sweden. could 
i be difficult to give Norway somewhat better terms 
than Sweden. in ficlds where the starting port 1s more or 
less the same” 


[Eliemann-Jensen]} Difficult, yes, but on the final analysis 
this would depend on the arguments put forward 


Greek Leader Attends People’s Party Meeting 
NC 2106183591 Athens ERA Tessera Radiw Network 
in Greek 1800 GMT 21 Jun 9! 


[Excerpts] Prime Minister Konstandinos Mitsotakrs 
arnved in Luxembourg this afternoon to participate im 
the European People’s Party conference which will dis- 
Cuss two important rssucs facing the EC. These rssucs are 
developments in the mmtergovernmental conferences as 
well as the econonomic, monctary, and political unifica- 
tion of the 12 EC members. The conference will also 
discuss the stance to be adopted at the Community's 
summit neat week. [passage omitted] 


Mitsotakis 1s accompanied by Konstandinos Pilarinos, press 
and information secretary general, and various asdes. The 
prime minister will return to Athens carly tomorrow 


Speaking to Greek reporters shortly before entering the 
conference hall, the prime minister sand: | availed myself 
of the opportunity to have a long talk with Luxacmbourg 
Prime Minister Jacques Santer, who visited us mn Athens 
to prepare for the Community summit. The Greek prime 
minister added: Today's conference 1s a summit of the 
members of the European People’s Party, and I beheve nt 
will be a very interesting meeting. We maintain a posi- 
tive stand on the question of political unity. We are 
interested in the common EC foreign policy. particularly 
the common policy on defense issucs. Mitsotakrs also 
pointed out: | will take thes opportunity to brict my 
colleagues on developments in the Cyprus rssuc, which ts 
now at a critical puncture 








4 UNITED KINGDOM 


IFP’s Buthelezi Pushes For Peace in RSA 


MB2406174791 Umtata Capital Radio in English 
1800 GMT 24 Jun 9! 


[Text] Inkatha Freedom Party [IFP] \cader Mangosuthu 
Buthelez: says he hopes the ANC [African National 
Congress] congress in Durban next inonth will resolve 
the struggle between realists and militants within the 


organization. 


Buthelez: was speaking at a media conference after his 
arnval in London, where he will meet British Prime 
Minister John Mayor for talks tomorrow. 


Buthelez: says, like others. the IFP sees occasional signs 
of realism in the ANC. but he says hopes are dashed cach 
teme militants regain the initiative. 


Buthelez: says the IFP belreves the realists, under ANC 
Deputy President Nelson Mandela, are trying to go 
about things in a sensible fashion, but are trapped within 
an organization whose internal power struggics make 
movement forward very difficult. 


At the same conference, Buthelez: down-played the signifi- 
cance of the weekend's peace agreement between the ANC, 
the government, and Inkatha. He says he would not say it is 
any more significant than the agreements reached between 
the ANC and Inkatha in January this year, which still have 
to be umplemented. He says about the only difference 1s that 
more parties are involved. 


Warns of ‘Civil War’ 
WB2506065091 Johanneshure SAPA in English 
2115S GMT 24 Jun 91 


[Text] Johannesburg June 24 SAPA—The African 
National Congress’ [ANC] insistence on an interim gov- 
ernment could provoke a massive white backlash and 
lead South Africa into a civil war, Inkatha Freedom 
Party President Mr. Mangosuthu Buthelezi said in 
London on Monday [24 June]. 


A copy of the speech was sent to SAPA in Johannesburg 


In a meeting with the secretary-general of the Common- 
wealth, Chief Emcka Enyouka, he said white South Africans 
occupied strategic positions throughout the country which 
would make them “very difficult enemies” if they were to 
turn against a future black majority government 


“Even if the ANC can succeed in establishing an interim 
government, that interim government will be destroyed 
by forces that will make what Renamo [Mozambique 
National Resistance] did and what UNITA [National 
Umion for the Total Independence of Angola] did like 
child's play by comparison.” he said 


FBIS-WEL -91-122 
25 June 1991 


The wrnne:-take-all attstude and demand for a constituent 
assembly and an intermm government—~whaoch 1s inherent 
to the Harare Declaratson—would lead to the monolithic 
State powers which successive Natoonal Party governments 
buslt for themselves. he sand. [no closing quotation mark as 
received] 


“Black South Africa docs not want thes.” he sand. “Black 
South Afnca wants the devolution of power (with) 
checks and balances which docs not permit the amassing 
of power al central government level.” 


On the issue of sanctions against Pretona. Mr. Buthulez: 
warned thal poverty and uncmployment was the biggesi 
politscal hurdle facing the country 


“Everywhere im Afrnca and the Third World we have seen 
how mass spreading poverty 1s the mortal enemy of democ- 
racy. In this decade, poverty will mobilise people against 
any authority there 1s, whoever runs the country,” he sard. 


Destroying apartheid would not necessarily ensure 
democracy mm the country. he said. but the frustrated 
ambitions of young. black South Africans—half of whom 
are under 15 years of age—<could only be met by massive 
international ard. he said 


Urges Change in Policy 
MB2506072391 Johanneshbure South African 
Broadcasting Corporation Network in English 
05800 GMT 25 Jun 91 


Text] The chief minister of KwaZulu and leader of the 
nkatha Freedom Party [IFP], Dr. Mangosuthu 
Buthelezi, has called on the Commonwealth to recon- 
sider its policy on South Africa 


Dr. Buthelezi, who 1s in London for talks woth the British 
prime minister, Mr. John Mayor, held tal) ih the Secre- 
tary-General of the Commonwealth, Mr. Emeka Anyaoku. 
He told Mr. Anyaokw that sanctions and the armed struggle 
were not decisive factors in developments in South Africa. 
He said South Africa needed a multiparty democracy and 
that the international community should not only support 
the ANC [Afncan National Congress). 


Dr. Buthelez: said South Africa faced spreading poverty that 
could be an obstacle to the negotiation process and a 
multiparty democracy. Dismantling of apartheid would not 
lead automatically to the introduction of democracy. The 
international community would have to provide aid on a 
large scale to enable a democracy to be established. 


Dr. Buthelezi, who arrived in London yesterday after a 
weck-long visit to the United States. 1s to hold talks 
today with Mr. Major and the foreign secretary, Mr 


Douglas Hurd. 


Mr. Anyaoku said at the talks that the agreement signed 
last weekend by the ANC, the IFP and the government, 
aimed at drafting a peace plan for the country, would be 
regarded in Commonwealth circles as removing a serious 
threat to the negotiation process for power sharing in 
South Africa 





FBIS-WEL -91-122 
25 June 1991 


* Economic Chaos From Deconfederation Predicted 


GVIENOSS86C Montreal LA PRESSE in French 7 May 9! 
peil 


[Lisa Binsse artecle: “Bank of Montreal President Pre- 
dicts Economic Drsaster if Canada Breaks Up™| 


[Text] Matthew W_ Barrett, president and chairman of 
the board of the Bank of Montreal. yesterday brandished 
the spectre of high interest rates and rising budget 
deficits if the unthinkable, the dismemberment of 
Canada, his adoptive country, occurs. 


In an address delivered before some 600 persons at a 
Montreal Canadyen Club luncheon. Barrett. who refuses 
to beleve in the drsappearance of Canada. nevertheless 
invoked the consequences of what he labels the “worst- 
case scenano.~ 


He said the country as a whole would feel the economic 
impact, but that 1 would mainly be the six smallest 
provinces (Prince Edward Island, Newfoundland, Nova 
Scotia, New Brunswick, Manitoba, and Saskatchewan) 
that would bear the brunt of a breakup of the country 
threatening transfer payments from Ottawa 


The consequence would be that these provinces would be 
forced to raise taxcs or make draconian cuts im services 


Barrett, born in Ireland in September 1944, said he could 
not imagine “any rescheduling of the national debt that in 
the eyes of investors here and abroad who would be 
financing it would not make Canada much less attractive.” 


“For example, Quebec's direct det during the fiscal year 
that has just drawn to a close totaled nearly 28 percent of 
the gross domestic product (GDP). When one adds the 
indirect debt (the debt of parapublic organizations. 
including Hydro-Quebec) guaranteed by the govern- 
ment, the proportion climbs to nearly $0 percent, 
without counting the share of the federal dett that 
Quebec should eventually assume if the country 1s 
indeed divided.” 


He was careful to emphasize the fact that Quebec would 
not be alone mm this situation. All regions of the country 
would have their taste of i 


Among the other “unfortunate” consequences of a 
divided country, Barrett mentioned new restrictions on 
the free circulatron of labor, capital, and goods that 
would hit Quebec and Ontario particularly hard. More- 
over, if Canada should be divided, no government could 
mecrease taxes im the slightest, particularly im the two 
provinces whose taxes already cxceed those in the 
United States by 20 percent 


Barrett does recognize, however, that the Canadian 
Constitution, which 1s 123 years old, 1s in great need of 


CANADA 5 


revision. He beheves an updated federalism could pro- 
vide for decentralized powers while leaving under fed- 
eral purrsdection the powers that would enable Canada to 
occupy its place m the mternational community 


* Bourassa Comments on Environmental Policy 


YIENO6I8C Montreal LA PRESSE in French 
27 May Yi p Ad 


{Andre Pepin article: “Bourassa: We Must Defend the 
Environment Realrstscally™] 


[Text] Prume Minister Robert Bourassa maintains that 
not only do Quebec's aluminum plants use the best 
technologies to reduce pollution by employing the most 
efficent methods in the world, but im the years ahead, 
they will also help to achieve a significar' reduction in 
the amount of steel used in the automobile industry. 


Al the conclusion of his department's general council 
meeting thrs weekend in Lavi. the prime minister sasd that 
protection of the environment must be closely linked with 
economic development. “Over the past two election cam- 
paigns. the environmental issue garnered far more attention 
than did the constitutional msuc. We must protect the 
environment resolutely. but with realism.” 


Bourassa also said that a ministerial committee had been 
sci up to enable the so-called “economic” ministries to 
meet with Environment to achieve better planning of 
industnal development 


Since February. deputy ministers have been meeting weekly 
to discuss future investments. Concerning SOLIGAZ im 
Montreal. Bourassa said the following “The minister of 
environment will soon report to the cabinet im order to 
study possible solutions.” We know this proposal from the 
petrochemical industry 1s now compromised by the Office 
of Public Hearings on the Environment 


Bourassa’s staff 1s currently developing a new policy that 
will lead to an overall evaluation of environmental 
impact before even proposing a project, this for the 
purpose of preventing companies from being blamed 
and enduring cursory trials before any imvesiment 
project 1s even proposed. For example, the Office of 
Prime Minister says, SOLIGAZ plans to sell natural gas 
in large volumes to supply automobiles im castern 
Canada, reducing the amount of pollution considerably. 
This overall impact analysis practically does not exrst 
with exrsting environmental legislation 


Speaking at a press conference, the prime minister was 
careful not to announce major modifications im the law 
on the environment, indicating only that “cases are 
studied by the Cabinet together with Pierre Paradis, 
head of the Ministry of Environment.” 


Another cxample of the importance of the law on the 
environment is that of a mayor company specializing m 








6 CANADA 


high technology and xheduled to announce a project 
costing tems of snullons of dollars mm the Montreal regson 
m the weeks ahead. bul awarteng a green light from the 
Minrestry of Environment. Bourassa was unable to out- 
lime the mature of the propect yesterday. preferring to 
awant the conclusion of all agreements. Various propects 
have thus been delayed. causing Bourassa’s staff to sct up 
an wmportant working tcam whose task will be to 
reconcile environmental and coonmomac obycctives 


The prime monisicr said that various groups. particularly 
the PQ [Quchec Party] opposition. have often con- 
demoed the arrival of the aluminum plants. whach “thes 
Say are energy guzzicrs and polluters.” even though they 
use State-of-the-art technologies and have created thou- 
sands of yobs. “They wordered about our sanity 20) years 
ago when we talked of developing James Bay Today. our 
major natural resource allows wus to create 2). S00 ~obs at 
Sept-lles with the Alouctte aluminum plant. i ocm- 
ploved workers from Gaspesic who would have had to go 
to Algeria of Asia can now cross the river and make a 
very good liveng very close to home” 


Bowrassa. vrsrbly on fine form. told Lrberal actrvrsts that the 
recessvon 1s defimiicly over with and that a vigorous recovery 
has already been announced m the United States 


Finally. concerning the constrtutronal dehatc. the prime 
minister simply undicated in hrs speech that the government 
he heads has already completed all the preliminary phases 
for settong wp a a negotiating process, rncluding Law | 50) on 
the referendum He added that two parhamentary commis 
wons would cast. one for prosovereignty forces and the 
other to study the offers of reform comung from Ottawa m 
the fall. “We are now learning (Sunday newspapers) that 
sovereignty will cost an estrmated |5 tilon. We already 
have problems with a deficit of 3} bullon, so that they wll 
surely allow me to make a thorough study of the neue.” the 
prime menester concluded 


* Montreal Civic Party Divided by Crisis 
VIE NOSSOA Montreal LA PRESSE on French 
6 Vay Yip 43 


[Raymond Crervans article “Civec Party Divided Over 
Asking Drapeau To Intervene” | 


[Text] Clasheng with hes leader, Pascal Comprerchio. the 
only councilman from the Civic Party (PC) mm office at 
Montreal Crty Hall, wants Jean Drapeau to mtervene as 
s00Nn as possible to try to find a solution to the mnternal crrsis 
that has wracked the party ever sence tts fownder left 


In contrast. Jacques Chadirdgian, acting bead of the 
Civic Party. beleves that wmmediate mtervention by 
Drapeau would be inappropriate and has no intention to 
request hrs assrsstance for the teme berng 


FBIS-WEL -91-122 
PS Jame 1991 


“Drapeau 1s a great man. He has done more for Montreal 
than any other poletscsan has cver been abic to do 
Without hem the Civec Party would not cart. 1 chal 
never close the door to Mr. Drapeau. but | do not thonk 
hes mmicrventoon m mcocesary 


“Mr. Drapeau ms 7S. We represent the Civec Party's nce 
ecncraton and ff up to us to act. In the most recent 
clectom, we won 2) percent of the votes. Many votes went 
to candidates from the vanous oppostron partes. which 
clearly wndicates that the Montreal Couzens Rally (ROM) 
docs not have the unanrmous suppor of the people and that 
1 what 1 emportant.” (haderdgian told LA PRESSE 


{ councilman C ompecrchro, who has been active m the 
PC for 20 years. hopes to mect with Drapeau m a few 
weeks to drscuss weth the man he affectionately calls “the 
grandfather of Montreal” a permancnt solutron to the 
micrnal malarse that has undermined party ranks and 
hurt its performance for five vears 


PC acteng pressdent C hederdgian admuts there 1 a certam 
malars withen the party with the departures and resgna- 
toms. the most recent of which «= that of Mrs. Nicole 
CGagnon-Larocguc. That resignation was preceded by the 
departures of German Preycan and Serge Sauvageau. The 
former now holds office as an independent. while the latter 
who was first clected under the PC banner, abdicated and 
youned the Mumncopal Party of Montreal 


Betore that came the case of Neck Auf der Maur, who wnce 
1974 has constant, managed to gct homectf reciected to the 
C rty Counc ender different banners, mnchoding that of the 
( rvec Party. before he also changed colors 


Finally, Chaderdgian, who has been active om the PC for two 
years. beheves the party now rests on soled foundations and 
has plenty of tome to get ready for the comung clecthons 


“Tt +s true that there have been rewgnatrons. bul most of 
them can be cxaplamned by personal reasons.” ( hadird- 
gian sard 


“tt Mr. Drapeau gets mm touch with me om a few months 
1 shall be happy to hear hem out and sce whether he has 
advice to give ws.” the emterem head of the PC concluded 


* Quebec Takes Over Industrial Development 
VIE NOSSOD Vontrecal LF DETOIR in French 
‘Way Vip as 


[Robert Dutrisac artecle “Quehec Reheves Ottawa and 
Sets Up Industrial Dewelopment Fund” 


[ Teat}] Quebec — The Crowernment of Quebec will hence: 
forth assume responsbelrty for Ottawa's share of ard to 
major mdustrial propects. a program that had been the 








FBIS-WEL -91-122 
25 Jeune 191 


subj ct of an auxshary agreement between Canada and 
Quebec sence 1985. It means addimsonal spemiing of 
$100 milhon mm two years 


The latest Levesque budget provides for the creatvon of 
the Quebec Industs:al Development Fund into whech the 
government will mngect $200 mithon over the ncxt two 
years. However, i 15 not im fact a new program. By virtue 
of the ausshary Canada-Quchec Entenic on industrial 
Gevelopment sened m 1985. Ottawa and Quchec 
mvesied equal sums of $40) millon mm propects whose 
best cxaampks are the ncw aluminum plants totaling $! 8 
billson. according to the Ministry of Finance 


Unable to arrive at an agreement with the Federal 
Government, the Government of Quebec therefore 
decided to shel! owt $100 millon more than anticipated 
and capects another wave of major industrial propects 
costeng $1 bilhon. Monester of Industry. Commerce. and 
Technology Gerald Tremblay 1s capected to announce 
the detarls soon 


Quebec docs not despar of reaching an agreement with 
the Federal Government eventually. but m the mean- 


tome. Quebec had no other way to intervene m a contest 
m which many nations heave incentives for attracteng 
mayor imvesiments The ertuation risked mortgaging 
indusinal promotion efforts already made and resulting 
m the loss of significant industrial projpects, Minister 


Levesque emphasizes on hes budget 


Modeled after the now-outdated Auwhar Entente the 
Indusinal Development Fund 1s interested om the estabirsh- 
ment. capansion, modernization. and reorganization of 
marufacturing or processing faciiitees worth a minimum of 
$10 mithon In addition, the government commitment 
cannot caceed 20 percent of the project's cost 


CANADA 7 


The Fund wel! covertheicss concentrate os efforts cr kev 
indusines transportation cquipment. processing of fr’ ast 
materials. acronautscs and acrospace. cnacrgy matcrials (such 
as 2 umerem) pharmaceutical and motechnological prad- 
ucts, and clectrica! and ciectron«s prods. ts 


The Fond well be weder the Menestry of Industry. Com- 
merce. and Technology with onc mnovation: The sclec- 
tron process will unvolve the Moenrstrocs of Environment 
Labor, fnoeree Securty. and Professsonal Tramung. as 
well as the Menrstry of Finance and Industrial Develop- 


ment ( ompany 


Another program announced amidst great tantare two 
years ago appeared. until only recently. to be much ado 
about sotheng the Technologecal Development Fund 
whech pledged to mvest $100 millon so far of the $350 
milhon promesed over wa years. with $50 mulhon car- 
marked for ens rrommental research and devclopment 


The menestry emphawres that every dollar m subsidies 
generates $4 on research in the arca known as “incentive 
proyects” and essentially began by bug business on basi 
research. an arca which already has firm commitments 
of $200 muthon 


The budget enables the Fund to expand its ad to PME 
[small and medrwm-si7¢ bwsincsses] that are not part of a 
more sMposing Comsoriiwm. as was previowsly the case 
Enterprises whose assets total under $25 millon or 
which have net assets of $10 mulhon of jews may present 
proyects for a menemun of $200,000 and a maximum of 
$10 muthon. Thes new arca 1s endowed with a budgct 
package of $20 millon spread owt over 4 vears. Based on 
the menrstry's calcwlations, any PME which uses thes and 
will have rts RAD project reduced by two-thirds 








‘ GERMANY 


FC le Ceontinee Sepport for Eastern Laender 


Bike 7. 80) Berlon 49% inrman [522 i M7 


ae 


afew wed prograr: 
rums tat md of 1995 ert] COMiner to 
provide the new lacnder with regronai and Carto Trosan 
dcpul retary gencral of the EC «© osmenssseor, 
Potsdam today during a round of tatks on 
Brandenburg and the European Community.” 
According to hes mmformaton. the current asd totals 3 
mthon ECT [European currency unsts] (Deutsch marks 
at. 9° 4 mithon ss for Brandentucrg. Haif 
nicnded tor regional purposes. 2 Quarter 
Qualifications. and jpob promoter and 
quarter 1s tor agricultural resireectari ag 


t Pre rma f ne 


(on rest on Brandenburg agriculture. tac Dee fhe an 
sand thal Ss not only m the Netherlands ‘hea Pec 
cooperative & atulet to serseve has been pros oc 

product ym marketing Tropan thenks that Brancs 


burg has advantages m wze over western German: 


No Constitutional (mendment 


LD 24062006091 Bern ADS om German 1805 GUT 
“4 lun Y 


iTeat] NOP New York (ADN)}—There wall be no 
amendment to th nstirtutron whech only permits the 
deployment of Bundeswe chr soldrers on the so-called bluc 
helmet actroms of the Lanted Nathons. Thes was 
announced hy Defense Menester Gerhard Stoltenberg mm 
‘Ncw York today after talks with UN Secretary General 
Javecr Perey de Cuellar According to Stohenberg, the 
go of Chrestan Democratec Unmon- 
( brestran Socal | mon and Free Democratic Party is m 
compicte agreement that the addrtron to the constrtution 
at ft mest molede partcipatron m all 
military mrsseorms approved by the lL arted Natrons Thes 
also means those that are not conducted under the LN 
flag bul—as has post heen the case mm the Gulf—have 
Securnty Cowncl Crermany 
take on fewer dutrees than 
Denmark and the CSER. the menrster wen 
constant mnternational 
criticism Stoltenberg regretted that the Socral Demo- 
cratin Part sttier mech hesrtateon 6 only able to agree 
on blue helmet deployments Woeth that the two-thirds 
mapority comstituthonal amendments has 
hecoorn However, he pomted out tat 
the gucstion of Bundeswechr Participation om mulitary 
rrssecorns wall bye mcd Once again in 199) when the 
hasrs for European polrtecal emon vs discussed. “I do not 
can atiord to reyect the treaty on 
Stoltenberg sand 


mmrnent salit 


by ing AlrTve ad 


heen oontfermcd bry the 
cannot indefinitely afford to 
comntrees trhs 


om th sa thes would lead to 


' guired fow 


ygucstronabk 


thomk the OPprcrsit porn 
poviitecal unrern 


As thongs stand. however. the participation of German 
forthooming comprehensive UN merssion 
mm ( amhodia rs mot powwshlc, saed the menister m reply to 


a gucstiron ()m the other hand. he confirmed that 15 


scrhcive rs om thy 


PRIS-WEL -91-122 
PS Jom 1991 


bordcr guads eH OF posted | 1 5S cometmecnt 
seeing th  .cterendum m West Sahara 


ic hes talks eeth Perez de ( ucllar—the first Detecen a 
German defense menrstcr and a lt “ seccr tar econmera 
Stoltenberg tned to Cownticract cru om. wsheach mae 
came from American corcics. of a lack of mm 

the Goulf, by insteng all deployments of the Bundesw 
gnce the end of the war He annownced thal the W 
members of the MIMCSB COP ng divrmron stat 
Bahram sence April have almost compicted tt Lave 
Soldsers who have cstabirshed a refugee camp and Swild 
hospital on Iran are also almost on the pornt of handong 
over these estabinshments to the cowntr's author ‘ 
The 25C men who have flown and opcratronms for tt 
Kurds have saved the hives of thowsands Stoltenhers, 
sand. in addition there « the far-reacheong Crcrmar 
mvolverment m the { “N ?wecha! COmmesson for th 
elyrammation of Iraqi ecapons of mass dcstruwctoon. tor 
-fech the Germans have offered the | nrted Natoons a 
total of 49 specialrets 


Kohl Meets With L A's Kimmock. iccueses FC 
4l 20618 O98! Paris AFP om beelt eh 
24 Jun 9! 


[Text] Bonn. June 24 (AF P)}—Britesh oppostion leader 
New Kennock met with (Chancellor Helmut Koh! here f 
one howr Monday to discuss European ( omrmounr 
development and the EC summed m Lescmbhouwrg thr 
Friday and Saturday Mr Kohls andes sand 


Mr. Kennock's inp comes are growing speculation mm 
the Britvsh press that he will succeed John Major as 
prime mueniter, Hes Labour Party «= about caght per 
centage pornts abcad of Mr Major's consery atrves on th 
Opimon polls 


Kohl, Gerhaches To Meet in Kiev for Talks § Jol 


if SHB TIAISI TC. ure fy / Priced hed Paria Note 
m teerman 1100G WI C4 Jun 9! 


[Teat] Chancellor Helmut Koh! and Sovect Present 
Mikhail Crorhaches @ | meet m Keow on 8 I for an 
cachange of views lasting several hours (: ramet 
Spokesman Vogel sand on Bonn today that both pote) 
crans agreed on the date mm a telephone conversatowm 


SFRYV's Loncar on (SCE. Role of ( ountrs 
40 C1061 TSS 9l Bevin NET ESN IMT ISON AND 


im German 19 Jun 9! 


[Exclusive mtersvecs with Bude Loncar 
federal secretary of for en attarrs, hy Misrko Woenter 
Berlin “before the beernnime of the CSCE meetoneg 

“Yugoslavia Must Regan Trost”) 


[Text] [Woenter] } rown thre ‘ ry ginning VY ugers! 1a Yas 
plaved an mmportant role m the CSOT 


co-founder of the movement of nonalhened Mates and as 


prrkeess a6 2 





BIS WEL -91-122 
Jone 1991 GEKVIANY . 


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- — 
"2 . J . + . 
: »'d A . 
’ .” 4 : , 
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: ‘4 
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7 - ] _ 
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WA . 4 , . 
‘ , us 
> 
> ; ~~ , . 
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> . > 
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; 
wt Bertin Vote ( ount b irre / b ownd Result Sar 
: : 
- . : > ; 
\ “ Y we 
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be 
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10 GERMANY 


Geputies voted for Berlin. and 320 for Bonn. One vote 
was not valic, and one parliamentarian abstained.” 


Ministry Starts Work on Government Location 


1.D2106123291 Berlin ADN in German 1102 GMT 
2] Jun 91 


{Excerpt} Bonn (ADN)}—The Federal Construction Min- 
istry today began implementing the relocation of parlia- 
ment and the government to Berlin, as decided by the 
Bundestag yesterday. A working staff set up by Minister 
Irmgard Adam-Schwaetzer (FDP) [Free Democratic 
Party] will first clarify city planning law issues, as well as 
the consequences for planning policy in Berlin. Accom- 
modating the Bundestag and the government, as well as 
providing housing. takes priority. 


As the minister stressed, planning for construction and 
conversion in Berlin, as well as space needs and 
financing. have precedence. The ministry considers just 
under two years of planning for the conversion of the 
Reichstag necessary. By this time the new plenary 
chamber in Bonn will be ready. [passage omitted] 


Suessmuth Interviewed on Decision Favoring Berlin 


402406143391 Hambure DER SPIEGEL in German 
24 Jun 91 pp 26-27 


[Interview with Bundestag President Rita Suessmuth by 
unidentified reporter, place and date not given: “We Do 
Not Want a New Provisional Setup”) 


[Text] [DER SPIEGEL] The FRG has become larger. 
Until the decision in favor of Berlin, however, it seems 
that many people did not notice any of that. 


[Suessmuth] | cannot agree to that. But indeed, there has 
been a local and political shift. 


[DER SPIEGEL] In the Berlin motion, the date for 
moving the parliament 1s given as the beginning of the 
next legislative period. Do you think that this 1s realistic? 


[Suessmuth] It seems to be a very short period. Even 
during the preceding talks 1t was very important to clear 
up when the parliament could be functioning in Berlin 
According to the Construction Miaistry’s documents 
about the reshaping of the Reichstag building, this will 
take eight years. Planning and tenders alone will take 
about three years. The resolution in the Berlin motion 
will certainly have to be reconsidered. After all, we do 
not want a new provisional sciup 


[DER SPIEGEL] What would be a realistic schedule for 
you” 


[Suessmuth] Since government and parliament will not 
be separated, the first stage will take eight to 10 years in 
realistic terms. However, parliament mectings can tak« 
place in Berlin in the meantime, too 


FBIS-WEL -91-122 
25 June 1991 


[DER SPIEGEL] First experiences there were not par- 
ucularly encouraging. The deputies lacked places to 
work. and they came back frustrated. 


{[Suessmuth] Because of the lack of p’aces to work, only 
one meeting 1s expected in Berlin for the second half of 
the vear. Of course, however, one can also meet in the 
Congress Hall. Declaring Berlin the capitol city cannot 
only be a symbolic signal. This also means that we must 
really go there. 


[DER SPIEGEL] Will there not be a pull toward Berlin 
after this decision” 


[Suessmuth] On the contrary. Now we have a clear 
decision, therefore, we can plan in peace. We must not 
put ourselves under a new pressure of time and expecta- 
tions. Politics now has to tackle many tasks 


[DER SPIEGLL] Will priorities change now? 


[Suessmuth] As has been set down in the government 
Statement. the goal of creating comparable living condi- 
tions all over Germany has absolute priority. It 1s impos- 
sible now to reduce the financial aid to the new laender 
just to rmplement the new decision. The plans for Berlin. 
the improvement of the new laender, and also the 
compensation for the Bonn region must all be taken into 
account equally. Certainly, moving the government scat 
to Berlin also helps the sixth land of Berlin. 


[DER SPIEGEL] Will there now be struggles about 
dividing the means” 


[Suessmuth] The finance minister has not yet included 
the costs for moving parliament and government into the 
medium-term financial plans. He will have to present a 
plan about the periods he expects to help the new laender 
and Berlin and Bonn get their nghts. However, the 
international obligations, too, in particular those toward 
our Eastern European neighbors must not be reduced. 
This means that the periods mentioned in the resolution 
must also be seen in the light of financing. 


[DER SPIEGEL] What will happen then to the provi- 
siona. capitol city of Bonn” 


[Suessmuth] Conditions for the people have priority 
Social compatibility 1s the supreme command 


[DER SPIEGEL] How car a concrete compensation be 
effected” 


[Suessmuth}] The answer is very difficuli—otherwise i 
would already have been found. The question now 1s which 
parts of the administration can be left in Bonn, and which 
parts can be brought from Berlin to Bonn. | mean. to give an 
example, if the justice minester goes to Berlin, the Federal 
Administrative Court could be moved to Bonn. Large parts 
of the Interior and Labor Ministry could be left in Bonn as 
subordinate authorities 








FBIS-WEL-91-122 
25 June 1991 


{DER SPIEGEL] There are not too many things that can 
be moved from Berlin to Bonn. 


{[Suessmuth] In this respect. the FRG Government's 
answer was really very cautious and. at the same time. 
realistic. Because it 1s extremely difficult to move the 
Federal Insurance Company for Employees with more 
than 10.000 employees to Bonn. This would have effects 
on the processing of applications for pensions. The 
Federal Company would not be fully functioning during 
this stage of moving. 


[DER SPIEGEL] It ts promised that Bonn allegedly will 
become a science center or the seat of European institutions. 


[Suessmuth] There are not so many people employed as 
scientists that this would be a great help. Regarding Euro- 
pean institutions, I see that this will cause some difficulties 
with other countnes. In the past, however, the Germans 
worked for Europe and now we have to negotiate with the 
Europeans. It would also be difficult to establish CSCE 
institutions in Bonn, as has been proposed. The main office 
1s planned in Prague. The parliament, too, should be estab- 
lished in Eastern or Central Europe as an important part of 
European integration. 


[DER SPIEGEL] When will the final move to Berlin take 
place” 


[Suessmuth] The 10 to 12 years mentioned 1n the Berlin 
motion are at the lower end of the schedule. | see my 
most urgent concern now in making sure that the condi- 
tions for implementing the resolution are acceptable. 
The people affected in the Bonn region are very worried 
about what will happen to them, but they are willing to 
accept the decision in a democratic way. 


[DER SPIEGEL] What was the decisive factor for the 
decision in favor of Berlin? The mood of the people in 
the new laender? 


[Suessmuth] It was the question of the credibility of all 
previous statements made in support of Berlin. Further- 
more, experience and reason stood against emotion and 
visions of the future. 


[DER SPIEGEL] Occasionally, one gets the impression 
that the citizens from the new laender expect miracles 
now since they Save noticed with disappointment that 
their situation has not improved essentially after the 
opening of the wall, the introduction of the monctary 
umon, and after 3 October. 


[Suessmuth] Economic and social aid 1s one thing. sup- 
port by political signals and symbols 1s another. I do not 
want to diminish the symbolic valuc, but it 1s maintained 
only if improvements of the social situation in the new 
laender also become visible. Otherwise. the citizens there 
would be justified in being disappointed 


GERMANY i 


Charges Brought Against Judges, Prosecutors 
112406163191 Hambure BILD AM SONNTAG 
in German 23 Jun ¥1 p 2 


{Helmut Soeger report: “First Charges Against GDR 
Lawyers] 


[Excerpts] Charges will be brought against five judges 
and three public prosecutors of the former GDR 1n the 
next few weeks. The Department of Public Prosecution 
has conducted investigations against the eight lawyers 
since the spring. BILD AM SONNTAG learned this 
from Berlin judicial circles. 


The lawyers of the former GDR who all worked for the 
Prosecutor (ieneral’s Office are accused of perversion of 
justice and unlawful detention. They have to stand trial 
because they detained well-known civil activist Baerbel 
Bohley for six weeks on 26 January 1988—because of the 
accusation of “treasonable intelligence operations.” At 
that time she had addressed the Rosa-Luxemburg rally 
(“freedom 1s always the freedom of those who think 
differently”) in East Berlin and condemned the inroads 
of the increasingly nervous “GDR security organs” on 
civil rights activists. [passage omitted] 


According to information acquired by BILD AM SONN- 
TAG, several hundred proceedings against judges and 
public prosecutors of the former GDR are pending. 
However, the handling of numerous complaints from the 
east German population, the working off of documents 
of the Salzgitter central registration office for the 
laender, and the evaluation of several kilometers of files 
of the court archives of the former GDR will take some 
years—until justice 1s administered to all unjust lawyers. 


Legal proceedings against the eight lawyers who impris- 
oned Baerbel Bohley would be the first in the history of 
the German judiciary in which lawyers wouk be pun- 
ished because of politically caused unjust sentences. 
From the $77 judges and public prosecutors of the Third 
Reich People’s Court of Justice who were instrumental 
in bringing about $.243 death sentences from 1934 to 
1945, not a single one has ever been finally convicted by 
a German court 


Bundesrat Passes First *All-German’ Budget 


LD2106210491 Hambure Dri in German 0826 GM 7 
21 Jun 91 


[Text] Bonn (DPA}—The Bundesrat today passed the 
1991 federal budget. The first all-German budget, with 
410 bihon German marks [DM] of expenditure and fresh 
debts of more than DM66 billion thereby comes into 
effect. However, the laender call upon the Federal Gov- 
ernment in resolutions to improve financing for the new 
laender from 1992 and not to negicct the old laender in 
the provision of money for investment. 


An urgent need to act, mainly for the new laender, 1s also 
seen because of the financing of the “German unity” 
fund, which 1s to decrease over the next few years 








12 GERMANY 


Joachim Gruenewald, parliamentary state secretary al 
the Finance Ministry, reyected the demands. He pointed 
in particular to increasing risks for the 1992 federal 
budget which must be seen both in the area oj the 
reconstruction in eastern Germany, as well as in connec- 
tion with Eastern Europe and within the framework of 
the European Community. The Federal Government's 
yardstick—it wants to reduce its borrowing in 1992 to 
around DMSO billion—must not burden the money 
market over the next few years, Gruenewald said. 


Bundesbank Calls For Spending, Subsidy Cuts 


LD2006 154391 Hamburg DPA in German 2313 GMT 
18 Jun 91 


[Excerpts] Frankfurt/Main (DPA/VWD)—The German 
Bundesbank has made an urgent appeal to politicians in 
eastern and western Germany to make a radical reduc- 
tion in public subsidies and limit state spending. The 
deficits in the budgets of all the regional authorities 
throughout Germany will increase in 1991 by 150-170 
billion marks [DM], the central bank warned in its latest 
monthly report. 


Even after the deduction of the surpluses in social 
insurance, a public budget deficit of between DM140- 
160 billion would still remain, corresponding to approx- 
imately 5.5 percent of the gross national product. This 
figure was only exceeded in the old federal territory in 
the recession year of 1975 (with 6.5 percent). “The 
proportion of state spending of the gross national 
product could, at 5.2 percent, be higher in 1991 than 
ever before in the former federal republic,” the Bundes- 
bank economists conclude. 


The most imporiant financial task is, therefore, in the 
opinion of the central bank, to limit the increase of 
spending in the medium term and to transfer the funds 
available to aid economic development in the new 
laender. “This also requires a considerable reduction in 
the subsidies granted in the west up to this time.” 


In the opinion of the Bundesbank, there is also consid- 
erable need for action in the former GDR. The particu- 
larly high deficits of the eastern German laender and 
communities must be reduced. In addition to consumer 
subsidies (e.g. rents) the Bundesbank also calls for per- 
sonnel reduction in the public se~*or. “By concentrating 
the scarce public funds in the =» laender on invest- 
ment, the economic upswing the:e could be given con- 
siderable support.” 


Nevertheless, a deficit is looming in the eastern lacnder 
and communities this year, which is almost as high as in 
the west. “Considering that the population in the eastern 
laender is only a quarter of that in the west, it is clear 
how tight the financial position is.” 


In an economic sense eastern and western Germany 
continue to be divided. While in the old federal republic 
the gross national product increased by a good 4 percent 
in the first quarter compared to the beginning of 1990. 


FBIS-WEL -91-122 
25 June 1991 


“the general change for the better has not yet become 
apparent™ in the former GDR. says the central bank's 
June report. In the west, however. despite the new surge 
in growth, the economic tensions have finally clearly 
subsided.” [passage omitted] 


In the opinion of the Bundesbank economists, the eco- 
nomic climate in the new laender seems to have “become 
somewhat brighter.” Looking from a wider perspective, 
however, the economic situation has not improved up to 
now. Since the beginning of the year the “economic 
down-turn™ has for the time being “continued further.” 
The drastic decline in production in the manufacturing 
industries in January and February to almost one-third 
below the level of the fourth quarter of 1990 alone 
demonstrated how serious eastern German industry's 
adjustment problems are. following 40 years of socialist 
mismanagement. With the taking over of the mark and 
the opening up of the former GDR. the large range of 
“east products” has become practically unsaleabie 


The Bundesbank 1s very concerned at the deteriorating 
price climate. Following an inflation rate of 3 percent in 
May, the tax increases in mid-year could “push up the 
price increases yet further.” The recent wage deals aver- 
aging 7 percent have increased the price risks. “The 
federal authorities and laender, the central bank, and 
wage negotiators are called on to prevent a wage-price 
spiral from developing from this, which could threaten 
the high standard of stability of the mark which has been 
reached over the last few years.” 


Trust Agency Reports on Internal Debt Situation 


LD2406202891 Hambure DPA in German 1241 GM1 
24 Jun 91 


[Excerpts] Bonn (DPA)}—The state 1s facing accumu- 
lated debts from the bankrupt economy of the former 
GDR of at least 300 billion German marks [DM] by the 
end of 1993, that 1s, in just two and a half years. Until 
then the government-owned Trust Agency will incur 
interest charges of DM 50 billion and the government an 
additional DM 25 billion, Christian Neuling (Christian 
Democratic Union), chairman of the Trust Agency 
budget subcommittee of the Lower House. said in Bonn 
today. They are duc, above all, to state debts incurred by 
the former GDR and old commercial debts. Because of 
the increasingly difficult privatization, Trust Agency 
deficits of over DM 20 billion in 1991 wall rise to DM 90 
billion by the end of 1993. [passage omitted] 


In his interim report Neuling said: “Actually, looking at 
all this the state leadership of the Socialist Unity Party of 
Germany regime should be charged with frauduiently 
bankrupting the state. Surely nobody could have fore- 
seen such a wretched and catastrophic situation in the 
autumn (of 1990).” [passage omitted] 








FBIS-WEL -91-122 
25 June 1991 


Modrow on Continuing PDS Congress in Berlin 
LD2206010291 Hambure DPA in German 0912 GMI 
21 Jun 91 


[Text] Berlin (DPA}—The delegates of the Party of 
Democratic Socialism (PDS) have begun discussions to 
continue their second party congress in Berlin today. 
against the background of a serious crisis. At the start of 
the three-day discussions, PDS Honorary Chairman 
Hans Modrow said that all differences in the party 
should be respected but the search for a common way has 
to be a priority. He spoke oul against a “solidarity and 
siege mentality” (“Schulterschluss-und Wagenburgmen- 
talutaet™] but spoke for solidarity among themselves 
Democracy al grassroots level 1s important but must not 
lead to an inability to make policies 


Official Responsible for Foreigners Resigns 


LD2006135691 Hambure DPA in German 1607 GM 
19 Jun 91 


[Text] Bonn (DPA)}—Liselotte Funcke, the Federal Gov- 
ernment official responsible for foreigners, has sub- 
mitted her resignation, with massive accusations against 
the government and the political parties. The 72- 
year-old Free Democratic Party politician announced in 
a letter to Chancellor Kohl her intention of ending her 10 
years in office on 15 July. A warning signal is the growing 
hostility to foreigners in the new laender. The lack of 
support from the Federal Government and the political 
parties has made her work more difficult 


GERMANY 13 


Government May Cut Aid to Armed Third World 


LD2206084291 Hambure DPA in German 2300 GM1 
21 Jun 91 


[Excerpts] Osnabrueck (DPA}—The Federal Govern- 
ment wants to cul or stop entirely us development aid 
for highly armed countries in the Third World if these 
nations are not prepared for disarmament. Development 
Aid Minister Carl-Dieter Spranger (Christian Demo- 
cratic Union) told OSNABRUECKER ZEITUNG news- 
paper (Saturday edition). This. he said. also applies to 
parties involved in a civil war and developing countries 
that are at war. Spranger stressed it 1s high time to give a 
signal. The Federal Government 1s doing all i can to 
achieve a relevant international agreement. If that 1s not 
possible, he 1s prepared to reorientate German develop- 
ment aid policy, the politician said. [passage omitted] 


Stoltenberg, De Cuellar Discuss UN Forces 


LD2406212291 Hambure DPA in German 1520 GMI 
24 Jun 91 


[Text] New York (DPA)}—Defense Minister Gerhard 
Stoltenberg and UN Secretary General Javier Perez de 
Cuellar met for a talk today at the United Nations 
headquariers in New York. German diplomatic circles 
State that the main issue was possible future participa- 
tion by German soldiers in UN “blue-helmet™ peace- 
keeping operations. 


Stoltenberg wants to explain the constitutional problem 
to Perez de Cuellar and the Federal Government's desire 
to make possible participation of this nature by means of 
a constitutional cha’ ~. 











i4 FRANCE 


European Operation To Aid Kurds in Iran Sought 
AU 2506093491 Paris AFP in English 2155 GMT 
24 Jun 91 


[Text] Paris, June 24 (AFP)}—France is hoping for a 
mayor European operation to repatriate an estimated one 
million Iraqi Kurds who have iaken refuge in neigh- 
bouring Iran, Minister for Humanitarian Action Bernard 
Kouchner said here Monday on television. 


Interviewed on the private TF! channel, Mr. Kouchner 
said: “I can for the first time announce a European 
humanitarian action, under the flag of Europe. which 
will I hope take charge of...accompanying these Kurds 
back to their homes.” 


The minister s id the planned operation would take place 
once an agreement had been signed between Iraqi Kurdish 
leaders and President Saddam Husayn for the return of the 
Kurdish refugees. He gave no further details. 


In the same programme, Mr. Kouchner condemned the 
death sentences being handed down in Kuwait's war 
trials, while at the same time admitting that the war to 
expel Iraq from Kuwait had been a just one. 


On the general question of aid to the Third World, the 
minister said rich countries such as France had to help 
poor countries in order that migrants from those coun- 
tries “don't come to over here because they are hungry.” 
He also said he was in favour of France allowing young 
people to carry out their compulsory military service by 
engaging in humanitarian work. 


Mitterand, UK's Major Hold ‘Private’ Meeting 


L.D2406162691 Paris France-Inter Radio Network 
in French 1500 GMT 24 Jun 91 


[Text] French-British mini-summit in Dunkirk: Presi- 
dent Mitterrand and British Prime Minister John Mayor 
have had a private meeting at Dunkirk town hall. 
applying themselves mainly to preparing for the Counc! 
of Europe meeting in Luxembourg at the end of this 
week. The meeting apparently took place in an atmo- 
sphere of clarity. The two men talked about a single 
currency and foreign policy backed by a joint security 
system, points on which Paris and London still have a 
long way to travel to reach agreement 


Discuss European Unity 
412406195591 Paris AFP in English 1949 GMT 24 
Jun 91 


[Text] Dunkirk, France, June 24 (AFP)}—French Presi- 
dent Franco:s Mitterrand and British Prime Minister 
John Major agreed here Monday that the details of a new 
European treaty should be resolved before the end of the 
year. Such a treaty would set terms for political union, a 
common currency and a common defense, issucs on 
which France and Britain have been at odds. 


FBIS-WEL -91-122 
25 June 1991 


The differences still seemed to exist after the two men’s first 
summit although both agreed that European Community 
(EC) leaders in Luxembourg should assess the first six 
month's work of two intergovernmental conferences on 
political union and a common currency. A crucial meeting 
of the leaders of the 12 European Community leaders takes 
place in Luxembourg at the weekend 


“We have the joint intention to reach an agreement” 
before the Maastricht summit in the Netherlands in 
December, Mr. Major told a joint press conference 
following the summit. The Luxembourg meeting “will be 
an opportunity to take stock for the two intergovern- 
mental councils and we agreed to build on that 
progress.” he said. 


Mr. Major said that there was no question of making a 
“partial decision” in Luxembourg. The issues involved 
required “whole negotiating.” he said. The problems. 
economic and political, were “interrelated.” said the 
British leader. 


Mr. Mitterrand said that the EC leaders should report on 
their work in Luxembourg and define the outstanding 


points. 


The two leaders agreed that the discussion remained 
open on the structure of a new Europe. although Mr 
Mitterrand declared his preference for a “federal” struc- 
ture with Mr. Major opting for “closer union of the 
peoples of Europe.” as enshrined in the Treaty of Rome 
As for monetary union, the Britssh leader said that 1 was 
“utterly dependent on economic convergence.” Mr. Mit- 
terrand defined the differing positions by describing the 
concept of a single currency was an “assumption” for 
France but a “consequence” for Britain 


Finally, as regards joint defense, differences were also 
expressed. Mr. Major was reserved, noting that Europe's 
defense had been based on NATO) for a long time. It will 
be necessary, he said, to examine the development of the 
North Atlantic Treaty Alliance (NAT©) and in that 
context, it was “desirable and inevitable to bring a larger 
contribution of Europe to its own defense.” For his part. 
the French leader called for debate on the future of the 
Western European Union (WEL). a solely European 
defensive organization 


The plight of the Kurds was also discussed by the two 
leaders. They agreed, Mr. Mitterrand said, “that guaranices 
must be given to the Kurdish population and that the 
protection measures should stay in place.” He added that 
the past experience of the Kurds must not be repeated 


The two leaders agreed to meet again im Calais in the 
north of France on July 29 to mark the fifth anniversary 
of the Channel Tunnel treaty 


Mr. Mayor was accompanied to the 1 Sth Franco-British 
summit by his Foreign Secretary Douglas Hurd, Defence 





FBIS-WEL -91-122 
25 June 1991 


Secretary Tom King and the Chancellor of the Exche- 
quer Norman Lamont. The British leader also met the 
new French Prime Minister Edith Cresson while the 
French Defence Minister Pierre Joxe met Mr. King. 


Meanwhile in an interview published Monday in LE 
FIGARO newspaper, Mr. Major set out his ideas and 
concerns over the future structure of the EC. He said that 
Britain did not rule out the introduction of a single 
European currency in the distant future. but added that 
an “authoritarian” approach by the EC on monctary 
matters would be “dangerous”. Mr. Mayor referred in the 
interview to moves to create an EC central bank. 


It would be “dangerous” for the Community to move 
towards economic and monctary union (EMU) along an 
authoritarian route without taking sufficient account of 
the necessary convergence of economies. Such an 
approach would depend more on pre-determined time- 
tables than on the progress of events, he said. 


Britain did not rule out the adoption of a single currency 
if it were desired by peoples and governments, but the 
British parliament would have to decide at the appro- 
priate ime. 


Britain was playing a “constructive” part in negotiations 
on reform of the Community, but political union was 
“an organic process”. It was not possible to decide today 
how the EC should look in 10 or 20 years’ time. 


The EC should interfere as lithe as possible with the 
freedom of individuais and of companies, should be 
accountable, should not interfere with the principles of 
free markets and should remain open to the admission of 
new members, he said. 


UK's Hurd, Lamont Downplay EC Differences 


LD2406121291 London PRESS ASSOCIATION 
in Enelish 1214 GMT 24 Jun 91 


[By James Hardy, PRESS ASSOCIATION lobby corre- 
spondent|] 


[Excerpt] Semor British ministers arrived in Dunkirk 
today insisting there would be no row with their French 
counterparts over closer political links mn the European 
Community. Foreign Secretary Douglas Hurd, chan- 
cellor Norman Lamont and other Cabinet ministers were 
holding talks with leading French politicians in the 
run-up to Friday's full EC summit in Luxembourg. The 
summit could see Britain almost isolated over the speed 
of progress towards political union 


The Prime Minster was arriving later for face-to-face 
talks with French President Francors Mitterrand in a bid 
to persuade him not to press Britain too far or too fast on 
the thorny rssuc of political ties 


Mr. Hurd and Mr. Lamont played down differences 
between Britain, which opposes the imposition of an EC 
federal structure, and France, which supports the idea. 
Lamont insisted: “We agree on the fundamentals.” Mr 


FRANCE 15 


Hurd claimed, without elaborating, that the two countnes 
agreed on the basic structure of the future Community. 
“Neither of us believe you can put all European co- 
operation into a straightjacket,” he said. “We both want to 
have flexibility on that. We disagree on some of the points 
within that but we are pretty close on the structure.” 


Little progress was expected on moves towards a federal 
structure for the EC today—but Whitehall sources were 
continuing to hint a compromise solution might be 
possible. The summit in Luxembourg on Friday has been 
officially called to “take stock” of plans for closer 
political ties. [passage omitted] 


In Dunkirk today, Mrs. Elisabeth Guigou, French min- 
ister for European Affairs, said Britain had nothing to 
fear from a federal structure, which she claimed already 
operated in some areas of the EC, notably the Common 
Agriculture Policy. She warned against “giving words 
more than they mean™, a clear reference to Britain's 
difficulty with the interpretation of the word “federal” in 
the new draft treaty for political union. “It is an objec- 
tive, obviously, and I don’t think anybody can be afraid 
of that since it already works in some fields.” 


As the Prime Minsiter set off for Dunkirk, Downing 
Street sources remained firm that the bogey word “fed- 
eral” could not remain in the treaty, certainly without a 
precise definition of its meaning in this context, writes 
Chris Moncrieff, PRESS ASSOCIATION political 
editor. Officials suspect that some European politicians 
are “playing the federal game™ for their own ends. No 
names were mentioned but the suspicion is that they 
have EC Commission president Jacques Delors in mind. 


It is recognised that “federal” means different things to 
different Europeans. To the British, it implies the even- 
tual arrival of a centralised United States of Europe—a 
concept to which Mr. Major is bitterly opposed. Yet to 
the Germans, for instance, the word has an almost 
diametrically opposite meaning. The British Govern- 
ment recognises that this has, at the moment, more to do 
with semantics than anything else. But if the word is 
allowed to remain in the treaty, it will have to be 
accompanied by a precise definition. 


The issues of closer political and monetary ties will be at 
the top of today's agenda. Then the two leaders move on 
to EC external issues, European security and defence, 
special Anglo-French interests particularly on defense. 
and the Soviet Union. If there is time—and this 1s 
doubtful—Mr. Major and President Mitterrand will dis- 
cuss Yugoslavia and South Africa. Other ministers in 
Dunkirk today are Defence Secretary Tom King. the 
Agriculture Minister John Gummer and Forcign Office 
Minister Tristan Garel-Jones. 








16 FRANCE 


European Affairs Minister on European Union 


P412406112291 Paris LE MONDE in French 
23-24 Jun ¥1 pp 14 


{Interview with European Affairs Minister Elisabeth 
Guigou by Jacques Amalric. Jean-Pierre Langellier. and 
Eric le Boucher. place and date not given] 


[Text] [LE MONDE] Are you satisfied with the progress 
made in the negotiations on economic and monetary 
union” Are you not afraid of a k:ad of alliance between 
Bonn and London to slow things down? 


(.sugou] First, allow me to remind you of the context of 
economic and monctary umon. Since the Treaty of 
Rome in 1957. we have been building the Europe of 
goods. With the Single Act in 1985, we decided to 
organize freedom of circulation for goods. services, and 
capital within the EC. Last year. the president of the 
Republic and Chancellor Kohl suggested to their part- 
ners a new step forward—that this economic Europe 
which has already been largely achieved, should have a 
single currency and a common foreign and ultimately 
defense policy 


That sets the general scene. These are very ambitious 
objectives which, if they are achieved, will make the 
European |2 a real power in all spheres. | will return to 
your specific question 


Economic and monetary umon consists of having an 
objective, an objective which cannot be achieved imme- 
diately—having a single currency one day. This is an 
objective now accepted by all the Community countries. 
except the United Kingdom which is nonetheless playing 
an active part in the discussions. In this respect, every- 
body 1s prepared to take account of the particular situa- 
tion of the United Kingdom, which has been a full 
member of the European Monetary System [EMS] for 
just a few months whereas most of the others have been 
in the EMS for 12 years. The aim is not to introduce the 
single currency immediately but in a few years’ time, 
beginning in 1996 or 1997. Between now and then, we 
can assume that the differences—for instance, regarding 
inflatron—will have been absorbed. 


We do not want tv force anybody, but we cannot be 
prevented from progressing. We set ourselves a timetable, at 
the suggestion of the chancellor and President Mitterrand, 
in a letter written in April 1990, ratified by the 12 in Dublin 
in June 1990, and confirmed by the European Council of 
Ministers in Rome in December 1990 


This timetable makes provision for concluding. before 
the end of this year, the two mtergovernmental confer- 
ences on economic and monetary union and on political 
union. These two conferences have the job of drawing up 
anew treaty which will include currency, foreign policy, 
and security policy. This will be crowned with institu- 


tions which will guarantee this union efficacy, coherence, 
and demociatic legitimacy 


FBIS-WEL -91-122 
25 June 1991 


[LE MONDE] In Germany. the Bundesbank seems to be 
questioning the benefits to be expected from monctary 
unnon 


[Guigou] It 1s not the Bundesbank which makes the 
political chowes, «t 1s the German Government. Those 
choiwes have been confirmed several times since April 
1990. It ss true that when you listen to some people you 
wonder whether our European partners really want to 
make progress. Are they not secking tactical pretexts for 
postponing deadlines’ If you think about 11. this turmoil 
iS NOt surprising. We are engaged in a very difficult 
enterprise. because 1 1s infinitely more ambitious than 
the Single Act. | cannot umagine that the pledges made 
and reaffirmed recently can be called into question 


[LE MONDE] Would France agree to extend this tume- 
table a little? 


[Guigou] We have drawn up a common timetable. We 
are in an initial phase of economic and monetary union 
We will enter a second phase. which will also be transi- 
onal, on | January 1994. Provision has already been 
made for us to decide whether we are ready to enter the 
third phase after two or three years. and at the latest on 
1 January 1997. It wall be on the final phase that the 
single currency will be created. It 1s a reasonable and 
very gradual timetable. We must stand firm on our 
objective of concluding the preparatory negotiations 
before the end of the year. If we had to change the 
tuumetable because a particular country has clections, we 
would never do anything in Europe 


[LE MONDE] Did British policy change between Mrs 
Thatcher and Mr. Major” 


|Guigou] There was a marked change of style, a desire no 
longer to be considered the naughty child to be put in the 
corner. The United Kingdom no longer wants to stand 
on the platform while the train leaves, but there 1s 
certainly a general tendency in that country to slow down 
the convoy or even stop ut from leaving. We are begin- 
ning to see a real change of thinking, however, especially 
among the young people. We hope that the United! 
Kingdom will be complete!y with us and the changes in 
its public Opinion are a step im the right direction. It 1s 
important to maintain our impetus. We are prepared to 
find the pace which surts the largest number of people. 
but certainly not to abandon our objectives. Moreover. 
that 1s the best way of making the United Kingdom 
follow us and move closer to Europe, because it will not 
wish to remain rsolated 


[LE MONDE] Does German reunification not slow 
down the process” 


[Guigou] Germany 1s obviously very absorbed in this 
enormous task, but the German leaders want to place 
that unification under a European roof, What 1s impor- 
tant 1s that the other European countres—particularly 
France—are involved on this rebuilding process. We are 
the main non-German investor in the former GDR 
Having said that, our share 1s still small. The government 








FBIS-WEL-91-122 
25 June 1991 


and the prime muyunrster herself are making mayor efforts 
to ensure thal our enterprises go over there. All these 
efforts strengthen the convergence of our economics. We 
have reduced our inflation differential with Germany to 
half of | percent. we are now al a very comparabic 
interest rate level. Who would have thought th:s could be 
the case 10 years ago when the inflation gap between 
France and Germany was 8 percent’ 


{LE MONDE] What form will the future European 
Central Bank take” 


[Gousgou] The European Central Bank will be fully inde- 
pendent in the management of the single currency in the 
final phase. We have had agreement on that for almost 
two years. We are discussing the means of achieving that 
independence in detail—appointment procedures, dura- 
tron of mandate. and so forth. It 1s also umportant that 
the central bank should not encroach on the responsi- 
bility of the political authority which 1s responsible for 
ccoemic options 


{LE MONDE] What ts the most important issue at the 
forthcoming Luxembourg council of ministers meeting” 


[Gungou] This council meeting must gather together every- 
thing on which we have already agreed. Furthermore. the 
achievements made in the negotiations, particularly thanks 
to the Luxembourg chairmanship, are considerable. This 
European summit will also have to give new impetus to 
three or four mayor questions which must be settled by the 
Maestricht summit in December. If all the decisions were 
postponed until the end of the year. there would be an 
obvious risk of overloading the boat. 


[LE MONDE] Are you expecting a two-speed economic 
Europe in the spheres of economic and monctary union” 


[Gousgou] Your question could be formulated im a dif- 
ferent way. How can we give the countries which are not 
quite ready the chance of yomning the others later? We do 
not want a two-speed Europe. We do not want to exclude 
anybody a pror, the c<:rollary of that being that nobody 
must have the nght of veto. We must therefore make 
provision for transitional solutions, temporary dispensa- 
tron solutions for the countnes which need time. We are 
used to this kind of situation in the Community. In July 
1990. when we had to introduce freedom of movernvent 
for capital, some countries were given extra time 


[LE MONDE] Who needs more time” 


[Coungou] Primarily the countries that are not in the EMS 
exchange control mechanism or those whose level of 
economic development 1s below the Community aver- 
age—Cireece and Portugal for instance 


[LE MONDE] Is this a return to a six-member Europe? 


[Gusgou] Not at all. A country like Ireland has no 


problem, it 1s on the EMS and the Irish pound 1s holding 
well. The same applies to Denmark. We want everybody 
to sign this treaty at the end of the vear. provided we 


FRANCE 17 


then find the practical means to enable various countrnes 
to youn the unson when they are ready. I see no reason to 


overemphasize this problem. 
{LE MONDE] What about political union” 


[Guigou] Political union consists of the compiction of 
the single market, economic and monctary union, and 
three very new clements: European citizenship, cooper- 
ation in the sphere of j-::cing and justice, and foreign 
and security policy. This last subject will probably be one 
of the main Guestions debated at the European summit. 


[LE MONDE] What would France have done in the Gulf 
crisis, if there had been a common European policy 
which was likely to bring things down to the lowest 
common denominator’ 


[Guigou] We will not have a common foreign and 
security policy, still less a common defense policy. 
immediately. We therefore cannot apply a future 
hypothesis to a current situation. 


It 1s possible to feel a degree of disappointment and even 
frustration regarding hopes for Europe. But | think that 
the reactions following the Gulf war were rather encour- 
aging because they demonstrated the urgent need to 
tackle European political union. Of course, | do not 
underestimate the problems, because I reyect Europe as a 
chorus or the positive thinking method. We must start 
from our real situation, base¢ on our diversity. Our 
nation is 1,000 years old. Brituin, Germany, and Italy 
also have their history and culivy<. Our advantage 1s that 
for the first time, we want to esiablish a Europe among 
equals. All the previous undertakings have been imperi- 
alist and have rapidly ended in failure. European 
building 1 not a new idea. It is the method which 1s new, 
because it 1s peaceful and democratic. 


[LE MONDE] How do you view the common security 
issue after the last NATO meeting? 


{Guigou] The member countries of the integrated military 
bodies, of which France is not a member, have taken 14 
modernization decisions. What concerns us more directly 1s 
that for the first time at a NATO meeting the idea of a 
European defense identity was recognized and mentioned. 


[LE MONDE] Is that such a great victory? 


|Guigou] In view of the fact that some people wanted to 
deny Europe that prospect, it is a step forward, but it 
must be confirmed in the treaty on political union. 
Europe cannot in fact have a foreign policy without the 
prospect of a common defense. We want to maintain a 
good alliance between Europe and North America, but 
Europe has the mght to have an identity in the defense 
sphere one day, it 1s not incompatible with the Atlantic 
Alhance, quite the reverse. 








18 FRANCE 


[LE MONDE] It seems that the more progress we make 
in European building. the more we reach the real prob- 
lems—indusiry. security. currency—the more the differ- 
caces between the countries seem to be political 


|Guigou] You are mght. but this 1s because we are now 
tackling elements that are at the heart of national sover- 
cignty. Indeed. we are moving toward a sysicm of shared 
sovereignty. No one will abandon his sovereignty, 1 will 
be shared and only in the spheres in which we feel we will 
be stronger collectively than alonc. It 1s not a question of 
blindly transferring our national sovereignty to some 
faceless technocrat. The aim 1s to share the decision with 
the 11 other member states according to the Commu- 
nity 's procedures, when we think it 1s in Our interests to 
proceed mm that way. The Schengen agreements illustrate 
that clearly. We have not tried to harmonize everything. 
stull less to make everything uniform, but we have 
identified the spheres in which we stand to gain from 
making joint decisions. The same ts true of economic 
and monctary union in which there will still be a mayor 
place for national decisions 


[LE MONDE] The government wants a European indus- 
trial policy but the impression 1s that the obstacle 1s the 
cxustence of different concepts between the lyberal coun- 
tines (Britain and even Germany) and the more Latin 
countries hke France or Italy. What form could a Euro- 
pean industrial policy take” 


|Gusgou] We do not think that Europe 1s limited to the 
institutrons. We want this Europe to become a reality: 
that 1s why we are asking that there be an industrial 
Strategy among Europeans. that there be a social Europe, 
that there be a common policy on environment or 
research. We very much want these practical develop- 
ments of European building 


This strategy must also aim to secure from our foreign 
partners the same advantages as those they obtain from 
us thanks to the completion of the single market—that 1s 
called reciprocity. The single market offers additional 
opportunities for our foreign partners: For instance. an 
American bank can establish itself anywhere in Europe 
simply by requesting permission in one country, when 
our banks want to go to the United States, they have to 
apply for permrssion in the $2 states. We therefore say to 
our partners that we are looking to an open door policy, 
but not pust in one direction. Protectionism exists every- 
where, our aim 1s to combat it but we do not want to be 
the only ones to do so 


ILE MONDE] An industrial policy 1s a different matter 


|Ciuigou}] The umportant thing 1s that we should do what 
the Japanese do and define the medium-term priorities 
among the public authoritees—national and commu- 
nity—and the enterprises. In the sectors of the future like 
electronics, particularly components, we must jointly 
define the specific sectors in which we stand to gain from 
drawing up an industrial strategy over several years 


FBIS-W EL -91-122 
25 June 1991 


We must now continuc research on new products. Take 
the electric car in which our enterprises—Renault and 
Peugeot—are in a good position. In three to five years. 
some big European cities will ban cars because of pollu- 
tion. If the clectric car 1s then ready for large-scale use. 
we will be in a winning position. This kind of strategy 
depends on the will of enterprises to cooperate. The 
French Government, and especially Mrs. Cresson. 1s 
encouraging European cooperation. 


[LE MONDE] Are you not afraid that all that people will 
remember about Mrs. Cresson’s rationale are the some- 
what demagogic points. the nationalist and anti- 


Japanese aspect. 


[Coungou] I do not believe that Edith Cresson can be said 
to have a defensive attstude: On the contrary. She 1s not 
saying: Let us turn in on ourselves. She 1s saying: Let us 
pul ourselves in a position to do as well as the best. To 
take Germany and Japan as an cxample 1s a tribute to 
their success. Mrs. Cresson is conveying to the country as 
a whole the objective set out by the president: Let us not 
give up in the face of difficulties, we are a great people 
We have resources, Iet us fight, and we will win. The 
target of 1993 1s within our reach 


{LE MONDE] The impression 1s that this “French-style” 
industrial policy that you want Brussels to adopt 1 
hindered by the Treaty of Rome which forbids all aid to 
industry. Should the Treaty of Rome not be amended” 


[(Cousgou] If we want to succeed in these field. we French 
must relinquish our weakness for wanting to write every- 
thing down and to have documents, which are not 
implemented. The instruments already cxrst, even if the 
will to use them 1s lacking 


[LE MONDE] Should we help the Soviet Union” 


[Gusgou] We want to help the Sovict Union because we 
want the democratic and economic reforms im that vast 
country to succeed. Nothing could be more disturbing than 
to see it lapse into anarchy or chaos. So 11 1s not a matter of 
aid in principle, but a matter of how to prevent it from being 
wasted. President Mitterrand has worked very hard to 
enable Mr. Gorbachev to come to London in July for the 
summit of the Seven. Up to this time, there have been no 
collective discussions with Gorbachev, who 1s therefore 
being invited to a real working mecting 


[LE MONDE] You accept the idea that Gorbaches 
cannot be helped at all effectively until power has been 
redistributed among the republics 


[Cousgou] There 1s a very great difference between the 
attitude of saying: Let us do nothing, let us not grant any: 
and until all the problems have been settled, and our 
attitude, which | would sum up as follows: Ard must be 
granted so the problems can be settled. The main task 1s 
to define how the aid can be most useful to the reforms 








FBIS-WEL -91-122 
25 June 1991 


[LE MONDE] Asd must be granted so that the reforms can 
be carned out. So as far as you are concerned, aid must be 
granted before the reforms have been carned out 


{Gousgou] Ard must definiuecly be granted so the reforms 
can succeed: It 1s a precondition 


[LE MONDE] By granting aid you are helping the center. 
which docs not want reforms. though ui 1s the only 
interlocutor that you recognize 


{CGousgou] It +s not our sole interlocutor. We are also 
mecting with representatives of the republics. We simply 
say that we do not wat to add to the complcaity of 
relations. which are now taking shape. This 1s a maticr 
for the Sovects and the republican Icaders: 1 1s up to 
them to define a sufficiently clear framework 


[LE MONDE] Would you be im favor of the USSR's 
association with the International Monctary Fund (IMF]’ 


[CGousgou] We want the Soviet Unron to be an active 
partner in all international financial and cconomuic insti- 
tutions. We have worked hard to enable i to join the 
EBRD [European Bank for Reconstruction and Devel- 
opment] and its board. IMF membership 1s a long-term 
process that will not resolve the problems immediately 


[LE MONDE] It has been said that the USSR could not 
borrow more than 6 percent of is credits from the 
EBRD. Now Mr. Attali ts already saying that this ceiling 
can be exceeded 


[Csungou] We must be flexible in implementing rules of 
this sort. The arm 1s to enable all these countries to 
continue having the financing they need. People are 
insufficrently aware that they receive from the Western 
countries—and mainly from the EC members— 
considerable sums. on the order of 270 billion francs for 
the three vears ahead 


[LE MONDE] Have President Mitterrand’s remarks 
setting back the membership date for the Central Euro- 
pean countries by decades not had a damping effect” 


[Cousgou] President Mitterrand explained his thinking in 
Prague. If the Community could embrace all the Eastern 
countries quickly. that would be ideal. This 1s not 
possible. because these countries would be unabic to 
mect the Community's rules until they have carried out 
their reforms. If they did join before they are ready. thry 
would be oblitera ed. This. unless the Community 
changes its character. that 1s. ceases to be itself. But 
France and certainly the majority of the Twelve do not 
want that 


[LE MONDE] [CSER President) Vaclav Havel has 
Stated quite clearly how far the French plan can go 


[Cousgou] That 1s your opimon. | think that in his speech 
he displayed ambition and the desire to make concrete 
progress, which 1s what we want. Our blueprint for a 


FRANCE 19 


confederation reficcts a twofold aim. The first 1s to have 
a framework which can accommodate all Europeans and 
within which they can speak on an cqual basis about the 
maticrs common to them 


Such a forum docs not cast anywhere al present 
Between the Community and cach individual country of 
the East there have been both bilateral talks and talks 
with the Community to reach association accords. Thes 
8 Very good, but this process has its lamuts: These accords 
are between on the onc hand a power. the Community 
of 340 million inhabitants and on the othe; cach of these 
countnes individually. the most highly populated of 
which—Poland—has less than 40 million inhabitants 
The Council of Europe can only deal with certain mat- 
ters, particularly observance of the law. The EBRD deals 
with economic Cooperation 


The second aim. as we can see quite clearly, 1s that there are 
specific and urgent forms of cooperation that are not 
happening anywhere. The needs are cnormous—for 
instance, in the environmental field. in communications— 
roads. railroads, interconnections between clectrical grids. 
energy. movements of peopic. or cultural exchanges 


[LE MONDE] Was «1 the Czechoslovaks who asked that 
the Americans come to Praguc” 


[CGousgou] They did indeed request this, and we agreed 
But. you know, we have no preconceptions. For instance 
why should American historians not be involved im 
writing the great history of Europe that some university 
figures on our continent have in mind” 


[LE MONDE] The impression 1s that as far as France rs 
concerned, the CSCE must be reduced just to the secu- 
rity basket and that the cconomic cooperation and 
human exchange baskets should be forgotten 


{CGousgou] The CSCE ts an essential /ramework for dia- 
logue between Europe and North America and also for 
improving methods of settling disputes peacefully We 
also want it to define guarantees for minorities. But 
when it comes to defining the route of an cxpressway 
between Paris and Prague or how to establish a modern 
high-speed train network across the continent, it 1s not 
the CSCE that will resolve problems of this kind. These 
will be dealt with by the countries directly concerned 
Creography 1s important’ 


Expulsion of Moroccan Writer Prompts Reactions 


Human Rights Group Protests 


LD 206093191 Paris France-inter Radio Network 
im French 0900 GUT 2) Jun 9 


[Text] European Coordination of Human Rights has 
asked Francois Mitterrand for the immediatc return 
without delay of Abdelmounen Dioun, expelled to 








» FRANCE 


Gabon on Thursday [20 Junc] evening The human 
nghts association has published a very tough commu- 
maguc. Here vs part of a 


The association cupresses deep indignation over the odious 
fate reserved to human nghts fighters and opponents of the 
Hassan II regime and unreservedly condemns this violation 
of freedom. which « terms as being of wenemaginable scr- 
ousness. European Coordmation of Human Rights says a 
does not comprehend the reasons for such a decrsson, which 
1s unacceptable to any democrat, and calls for the public to 
youn the demonstration in front of the Interior Ministry m 
Paris on Monday at 1800 


Mitterrand Comments 


LDISO6093491 Paris France-Inter Radi Network 
in French 1600 GUT 24 Jun 9! 


[Excerpts] Spirits are still troubled on the Lefi after the 
expulsion of Abdelmoumen Diouri. a writer of 
Moroccan nationality and an opponent of King Hasan 
I's regime. [passage omitted] The Socialist Party 
remains embarrassed. This morning Socialist Party 
Spokesman Jean-Jack Queyranne asked the governemnt 
to give as full an explanation as possible of the writer's 
expulsion. French President Francois Mitterrand 


responded about an hour ago 


[Begin Mitterrand recording] The mght to asylum is a 
contract between the political refugee and the country that 
receives him. By definition, a political refugee 1s someone 
who 1s opposed to the government of his country. He 1s thus 
the bearer of demands, aspirations and battle. There 1s no 
connection with this hypothesis which | have formulated 
regarding the recent imcidents in some suburbs of Paris 
Warnings to Mr. Diowrn had been increased over the period 
of many months. He violated his obligations on several 
occasions and on several grounds. The limit was finally 


FBIS-WEL -91-122 
5 June 1991 


reached: There were too many infringements of all kends 
and ut was decaded to cupell hem. fend recording] 


Protest March Held 


40 DS0609549! Parcs AFP ion Enmelish 2359GMT 
MM Jun 91 


[Text] Pars, June 25 (AFP)}—Some 2,000 people from 
French icfi-wing groups. human mghts organrsatoons and 
trade umons marched here Monday to protest the cxpul- 
sson last week of a Moroccan opposition figure who had 
political refugee status here 


The march passed off peacefully. and a deicgation of 
protesters was later received by officials at the Interior 
Ministry. The organisations, which included the Com- 
munist Party and the SOS-Racisme group. were pro- 
testing at the expulsion of writer Abdel Moumen Drown 
last Thursday under an emergency procedure which 
allows for no night of appeal. Mr. Diown was flown to the 
west African state of Gabon 


Earher on Monday Pressdent Francors Mitterrand defended 
the expulsion of Mr. Drown, saying he had exceeded the 
bounds of acceptable behaviour incumbent on someone 
with refugee status. “There arrived a time when the limit 
had been reached and the capulson carned out.” he sand, 
adding that “there were repeated warnings.” 


The protesters at Monday's march shouted “Hassan I! 
murderer, Mitterrand his accomplice.” a reference to 
Moroccan ruler Kong Hassan I 


Mr. Diour's lawyer, who attended the march, confirmed 
that he had issued a lawsuit against the French Govern- 
ment for abducting and sequestering his client. He also 
sand that Mr. Diourt. who was shown on Sunday on 
Gabonese television and issued a statement saying that 
he was being well treated. was not allowed to move 
around freely in Gabon. “lt was not an cxpulson but an 
extradition. It's disgraceful,” the lawyer sand 








FBIS-WEL -91-122 
25 June 1991 


German President Von Weizsaccker Arrives in Rome 
LD 2806204291 Hambure DP i on German 1348 GUT 
M Jun 9! 


[Excerpt] Rome (DPA}—Presdemt Rechard von Weiz- 
saccke’ at the start of hes five-<day state wrest to Italy. 
arrived at Crampimo Amport m Rome this aficrnoon 
After an exchange of views at the official scat of State 
Preedent Francesco Cossga, the program provides for a 
State receptron tomght. Von Weizsaccker. who 1s accom- 
pamcd ty hes wile Mananne and Foresgn Minister 
Hans-Dectrich Genscher. 6 to meet Prime Minister 
(nulo Andreott: and other Itahan politecians on 
Tuesday [25 June]. The German head of state will be 
recerved om private audience by Pope John Paul Il on 
Thursday [27 Junc] 


It +s the first officsal vesnt by Presadent von Weizsaccker 
to Italy. [passage omitted] 


Prime “linister Receives Omani Defense Official 


IN21061 50691 Muscat Radio Oman Network 
m Arabec 1200 GMT 21 Jun 91 


[Text] The Itahan prime minister recerwed Fahar Bin- 
Taymur Al Said. deputy prime muenister for security and 
defense affanrs, at the Itahan Prome Monsstry this morning. 


During the meeting. they exchanged views and discussed 
rmssucs of Common interests between the two fnendly 
countries. The mectirg was attended by Omani Ambas- 
sador to Italy Ahmad Bin-Muhammad al-Rathi. 


At noon today. Fahar Bin-Taymur and the military 
delegation accompanying him visited Itahan military 
industries organizations and an Italian arrbase, where he 
imspected one of the most up-to-date military transport 
planes berng used by the Itahan Air Force Corps 


Occhetto’s Deputy on Privatization Options 
VIESOTS 4 Vilan VONDO ECONOMICO in Ntalian 
27 Apr Yl pp 31-32 


[Interview with Fatio Muss, Democratic Party of the 
Left deputy secretary for labor policy, by Emanuela 
Coggiamant, place and date not given: “From the Dem- 
ocratie Party of the Left: Another Self-Critecrsm”] 


[Text] He faults the last 10 years of “sickening rhetoric,” 
laced with a trrumphalism that serves only to hede the reality 
of a country that slowly and relentlessly 1s losing a “historic 
opportunity ~ He agrees with industrialrsts, Agneth and 
Romits to begin with, who have called aitention to Italy's 
entrepreneurial weakness. For this reason, he proposes a 
change im the rules of the game: Corral the rapacious state 
within more restrictive boundanes. divesting it of the func- 
tron of admuenrstering the economy, and limiting it to that of 
charting economic policy 


ITALY & VATICAN CITY 2 


Fctio Muss. Occhetto’s deputy and. sence a month ago. 
head of PDS [Democratic Party of the Left] labor polecy 
has no doubts on thes pornt. The aceborn party (“born 
to be capendabie at the hegher bev cls of gov crament. and 
certainly not that we fancy being so”) fully emtends to be 
heard on cconoms problems. Starting with the msec of 
privatizations 


[Goggiamam] Onc of the charges being leveled at the PDS ss 
that out of a sort of sdcological romanticism. a bond with its 


past, | opposes a larger role for private enterprise 


[Mussi] True, we started from a simplistic and naive sca 
that private was bad and public was good But now we 
have taken the long icap forward and landed with a vrson. 
on the basis of which the state. with respect to the 
cconomy, must exercrse a regulatory functron. In practical 
terms, we have shifted away from the principle of a 
State-owned economy. and ‘oward that of a state-regulated 
economy. And this 1s mndecd a long forward leap. Even 
though. looking back. the fact must also not be forgotien 
that all modern industrial societies have rehed heavily on 
a mixed economac system. In fact. without the great reform 
of capitalism during the 1930's and the 1940's, without the 
social state, which together constituted the strategn 
response to the revolution im the East European countries. 
Marx's catastrophic predictions on the death of caprtalrsm 
might well have materialized 


[Goggiamani] In Italy. though. given the distances that 
separate us from other modern capitalist saceetics. some- 


thing has not worked 


[Mussi] Unquestionably. our country's public sector has 
grown large. much larger than clsewhere Not 
only that: This excessive presence of the state has pro- 
duced a sizable bundle of negative \alucs on terms of cost 
and inefficiency, owing also to the fact that Italy's publi 
sector 18 predominantly party-centered) The term 
“public” identifies more with “party” im Italy than with 
“state,” thus createm, om Italy thes pecular mnterlacement 
between a compelling modernity and a nco- 
medievalism. There 1s modernity because thes country 
has clearly developed, but there 1s also medrevaliem im 
our government with its vassals. vavasors vassals. and 
vavasors. This has rarsed still further our public sector's 
levels of inefficrency and costliness 


[Goggiamani] And at this point. privatizatron, .. berng 
loudly demanded as a cure-all. Are you mm agreement” 


[Mussi] Let me state a basic premise As ot approaches 
the crucial task of achreving a proper balance between a 
state-controlled cconomy and an cconomy driven by its 
private sector, the country finds itsclf m a State of 
quasi-emergency. Acting under emergency conditions 1s 
not the best thing. Everything 1s being thrown into onc 
big cauldron: sale of the family pewels, recapitalization 
the shifting of sharcholding to the people And every- 
thing gets muddied 








2? ITALY & VATICAN CITY 


\Goggaamam) Of course. But emsede ths cauldron, how 
many “tug privatizahons™ 1s the PDS prepared to support’ 


|[Muss] Let's start wath the sale of state-owncd real 
property. lt «= my personal. and purcly os personal 
opimon that thes rather a mrscrabic cho..c. What the 
State should do mnsicad 1s use the state's asects to provide 
aviuic management of land use. given that the national 
territory 1 also a mayor coflectrwe asect. Besedes. what 
the sense of scllong cultural treasures im order to collect 
tullbons of lire. only to find later that subsequent budgct 
acts have semply created bugger defocus’ I dow that any 
impoverished family has ever saved reclf from financial 
rum by scilong the famuely pewels 


[Croggiamam| A pity nt os that the alternative to private- 
zatron has had to be had adminrtration of publoc avects 


|Muss:] Granted. our real assets need to be beticr man- 
aged. given that today they are beng squandered. And 
that what « needed s a caring polecy. but also a finan- 
cially active one, with respect to public property. But be 
careful’ Sate assets. once sold. are no longer m the 
State-adminisiered domain And there are no remedies 


[Googgiamam] Excuse me. but thes view. of generalized 
seems to me to contradict the “cultural” leap the PDS 1s 
convinced of having accomplished 


| Mussi] It 1s not our intent to generalize Some avscts can 
be sold. subject to the setteng of adequate rules. | am 
thenking. for cramplc. of IACP [Independent Insintute 


PBIS-S EL +4,-122 
PS Jane 1991 


for Publ: Howseng! asects. and stell others. But what 
wornes me are the more valuable state-owned avects | 
am tnghtened by the sdéca. for cuaampic. of giving up all 
the state rasheay propertecs located om the very center of 
the coty. We cannot pest say “eel! them and bed them a 
good-bye. Charlee ~ The state must govern. musi for- 
mulate and umplement crty-planneng polscecs. must decal 
with private mmtcrests. In short. the state must have some 
means of cxacriong an emflucnce on the subsegucnt pol:- 
cos and chowes that well be made woth respect to them 


\(soggramam| And as to the sale of movable asscts” 


{Muss} Regardeng the more strictly buseness aspects. and 
from the sttandpomt of proncipic. the PDS has no objection 
to prudent management based on a clear understanding of 
what should be kept definstrvely mm the hands of the public 
sector, what should be shared with the private sector, and 
what should be privatized. making use of all possible forms 
including mass sharcholding 


|Croggiamam:| Thrs poent seems to be close to the heart of 
Prome Minister Crruho Andreott:'s veews. Is thes a pos 
sible mecting ground” 


[Muss] Al the congress of the League of C coperatives. 
Occhetio mernsted very much on the mghi of enterprise. 
dentifying t as a roght emherent im modern citizenship 
And the nght of enterprise umpls many thongs. ranging 
from the fostering of Cooperative enterprise to forms of 
mass sharcholding All of these options have a demo- 
CTatec mmport that must be taken into account 








FBIS-WEL -91-122 
2S Jeane 1991 


Spokeswoman on “Murky Perception’ in Politics 
PM DSO608S491 Madrid ¥ 4 om Spanish 
16 Jun 91 p 0 


[Imerice eth Government Spoicseoman Rosa ( onde 
by Juha Navarro m Madred. date not given) 


[Excerpt] Madnd—"“We must censure that politacs are 
open and correct.” Rosa Conde stressed She beheves 
thal we are cupenencing a terme when you Cannot se the 
forest for the trees. sence. om her opmmion, “im general 
things are going quite well. and owr country has a 


promising outlook ~ 


[Navarro] Miniter, are the country m general and the 
government in particular cupenencing a difficult tome. on 
view of so many reports of fraud and corruption” 


[Conde] I beheve that there « a. well, rather murky 
perception of political tefe and that worrmes us All 
politrcians—not just the gov crmment—must ensure that 
politecal life 1s open and correct. Followeng the muni- 
ipal clectioms. some matters have arisen whech affect the 
credibility of the honesty of potrtical life. and thrs makes 
me personally sad. because I believe that most of us 
politicians devote ourscives to thes out of a spurnt of 
service, although | do not much hhe the word. I beheve 
that we must seck to clarify maticrs. becawse there are 
very important proyerts for the country whech should be 
debated and which are berng overshadowed by the 
matters to which | have post referred. whether ot be party 
funding or ballot rngeging 


Scandals 


[Navarro] Perhaps vou as a socrologrst have son. mnfor- 
matron about what the pull thinks of the mas of 
xandals which have been occurring and have been 


reported over the pasi few days 


[Conde] I have no oprmeen poll on the matter. but the 
publec os clearly concerned that there cowld be not quite 
correct party funding or that of 1 not known what has 
become of the postal votes. because all thes could be 
regarded as a sign that things are not gorng well. and that 
assessment would not be quite correct. You are m 
politecs out of a dewre to serve. | am certam that at least 
a good many of us politecsans have no ambution other 
than that of trying to work for society It ms good that 
there should be a lively dialogue between the politicians 
and society, what 1 not good i that there should be 
shadows of distrust, Thrs cowntry’s political claws has 
worked hard and carnestly to change the base structures 
and wt « clear that the Spam of 199! bears no resem. 
blance to the Spam m which we who now hold govern- 
ment responutulity were brought up We must ensure 
that people do not ose farth om the poletcsanms. bul we 
must also beheve in ourselves 


[Navarro] What «ill the government do to regenerate 
public life om our country” 


SPAIN ba 


Conde] It = macocssary oct only to sond messsers to 
sacects but also to icad a vers Correct personal and pulix 
ite We well support any bend of measure armed ai 
Claret) ong sstuatvom. whatever they may fe. so the pula 
well always sce clearly what « happeneng For mstance. of 
the State Auda (fice deems 4 mooessary to amend the 
lcgrsiatron on the funding of the polstacal partecs to be 
able to cxercrse greater control. then we would screousty 
comsder downg so. although the curcent icgrslatron gov- 
cTneng parts funding 1s semular to that of other Countries 
around us mm Europe 


[Navarro] The posible wregular funding of the PSUFE 
[Spanish Socilest Workers Party] affects the govern- 
ment, sence. among other reasons. the prome moenestcr 1s 
the Soctalrsts’ secretary general 


[Conde] You must always drstengursh betecen party and 
goverament. Right now. the party has begun an imternal 
mvestigation which we support. the State Aude (fice ns 
also conducting its own mvestigation The government 
must contenuc to work af governing the country 

knowrng also that the party well clarify its srtuatron with 


respect to the publx 
[Navarro] Does the government support the PSOE” 


[C onde] C8 course. Why should we mot’ Almost all of us 
munisters are PSOE members, bul there are some mat- 
ters whech concern the former and others which concern 
the latter. The correct thing 1s to support the “larificatron 
of the sttuateon. The mmportant theng rs that the outlook 
for the cowntry 1s good. and thal wc must not stop as if 
our feet had been weighted down with lead When there 
a protiem such as that whech carts. vou must try to 
clear « up and carry on [passage omitted] 


ETA Car Bomb Attack Injures 8 in Madrid 


112206164291 VUadrd RNE-1 Radro Networt 
m Spanrsh (e000 GUT 8 Jun 91 


[Excerpts] As a result of thes morning's Basque Father. 
land and Liberty [ETA] car bomb attack. eight people 
were myured. 40 cars destroved. and more than SS) 
burldengs affected. in some of them the facades cotl- 
lapsed The attack was armed | the San Blas polwe 
statron Chance avowed a massacre semelar to that on the 
attack on the Vic Civil Guard barracks some weeks ago 
A motorcycle was im the way of the car bomb whech 
caused ft to go off carher and thus stopped « from 


reacheng its target [passage omitted] 


Among the first to condemn the Madrid attack was 
Nateer Arzallus. prime minester of the Basque Natron- 
alestt Party [PNV]. who was takeng part im an act of 
homage for a PNV member 


[Begin Arzalius recording] It seems to me that thes os yet 
another one mm the cham of events. | do not thenk that there 
%s anythong new They contenuc along the same course 
killong. planting bombs, gctteng nowhere and | am very 








24 SPAIN 


much afraid that one day the ETA will have to admit that its 
hole policy line has been a mistake. [end recording] 


* Strikes, PSOE-UGT Relations Examined 
YIESOS837A Madrid CAMBIO 16 in Spanish 27 May 91 
pp 15-24 


{Article by Inmaculada Sanchez and Carlos Santos. with 
contnbutions from Juan Luis Guillen and correspondents] 


[Text] Nicolas Redondo’s attempt to paralyze public 
services nght in the middle of the election campaign has 
aroused the anger of Socialist candidates. The strikes 
called by the UGT [General Union of Workers] and the 
CCOO [Workers Commissions] have hit the Spanish 
Socialist Workers Party (PSOE) at its weakest link: the 
big cities, where Gonzalez has staked the future. By 
pulling this stunt. Redondo 1s meddling 1n the Socialists 
wars of succession 


“The thing 1s. Nico 1s very crude.” People in the PSOE 
have been saving this for 20 years now. every time they 


try to explain the notions of the man who was one of 


their main pillars: Nicolas Redondo, general secretary ot 
the LGT. Sometimes. nearly always, they say ut affec- 
tonately. On other occasions, they are most annoved— 
like now. From Felipe Gonzalez down to the last cand:- 
date. “Czar Nicholas™ latest stunt has angered everyone 
Right in the middie of the election campaign. he has 
perpetrated, at ihe hands of Antonio Gutierrez, a string 
of public service strikes. The walkouts have disrupted 
the daily lives of people who are still making up ther 
minds about voting. and have struck at the weakest flank 
of the Socialist Party: the hypersensitive and fickle 
electorate in the big cities, where the ruling party's future 
iS at Stake 


The Socialists would be much more irritated if they knew 
how this chain of strikes was set off and how much 
personal effort Nicolas Redondo put into carrying them 
out. Some UGT leaders were also surprised by his move. 
of which they learned only a few weeks ago in an 
important meeting that has not been revealed until now 


Spain was definitely in the throes of the election cam- 
paiga by the time Redondo summoned the general 
secretaries of the union's sectoral federations. Everyone 
came. full of expectation. Without further ado, Nico 
invited them to scrape together all that remained on the 
platter of labor conflict, to recall which contracts 
remained to be .sgned. which sectors had the greatest 
problems, which ones were ripe for immediate mobil:- 
zation. After the assessment was made. he gave the 
order: “The confederation executive body has decided to 
coordinate the mobilizations and culminate the pressure 
measures in a single strike day on 24 May.” Some of 
those in attendance were stupefied. Although a ceriain 
amount of unrest in the public sector 1s almost a tradi- 
tion during election campaigns, no one had ever tried to 
go so far. Only one person raised his voice and 
demanded an explanation. To what extent could the 


FBIS-WEL -91-122 
25 June 1991 


campaign be manipulated as a means of exerting pres- 
sure’ Were they aware that the strike was being called on 
the eve of the Day of Reflection” The criticism did not 
dampen Redondo’s enthusiasm or change his tone. 
“That 1s pure coincidence.” he sasd. Moments later. he 
calmly adyourned the meeting. 


The councidence 1s that on 18 May Dr. Jorge S. Pedraz. 
40), suddenly became a wild-evyed radical. In 1982 he had 
voted for the PSOE “because of that business of the 
useful vote.” and in his university days he had flirted 
with the most fundamentalist left. Indeed, he stu!! sports 
a keychain bearing the name of the PCE [Communist 
Party of Spain]. “just as an archeological cunosity.~” On 
Friday 18 May. he intended to go by train from Madrid 
to Seville. but the RENFE [Spanish National Railroads] 
strike thwarted him. He thought of Iberia, which usually 
has a few flights between the two capitals, but he 
dropped that :dea immediately. a couple of weeks earlier 
his flight. scheduled for 2315 hours, had been canceled 
afier a five-hour delay 


He decided to drive. but oh. so did everyone else. After 
an hour of sitting in traffic. unable to get off Maria de 
Molina Street (atterwards he found out that some pick- 
eters had contributed to the traffic yam). he returned 
home. all the while listening to campaign spots and 
mudslinging between candidates on the radio. “ Tomor- 
row | will get an carly start and I wall be able to drive in 
peace.” But on Saturday. bright and carly in the 
morning. the newspaper that Jorge S. Pedrza usually 
reads teatured on the front page an unusual recommenr- 
dation from Jose Luis Diaz Fernandez. president of the 
Leasing Company of the Petroleum Monopoly. Inc 
(CAMPSA) “Fill your tanks today because on Monday. 
when the strike begins, there may be fucl shortages.” 


Diaz Fernandez’ words had the immediate effect of a 
wildcat strike. Pedraz got into one of the first lines that 
livened people's days during the weekend ai gas stations 
all over the big cities. He killed time listening to new 
invectives and old campaign messages. Just when he got 
to the pump. the attendant put up a sign: “Out of super.” 
By this treme Jorge S. Pedraz had already switched 
stations and had decided to end his ordeal, he would stay 
in Madrid. Back at home. he dialed the number of the 
lady trend who was waiting for him in Seville. A voice 
kept repeating: “No such number.” He thought it was a 
joke. He already knew that telephone company 
employees, like railroad workers, tended to not only go 
out on strike but also to engage mn sabotage. It was funny 
Days earlier he had tried to call Bilbao, and betore being 
connected, he had had to listen several times to the 
weather report and sports news 


Sociologically. Jorge S. Pedraz belongs to that group of a 
million big city residents who may sooner or later withdraw 
their support from the PSOE. Thus, actively or passively, 
they will enable another alternative to come to the fore. 
cither the one that Aznar 1s trying to put together or another 
one that may come along. This million-vote bloc dominates 
the thoughts of all candidates these days. The PP [People’s 








FBIS-WEL -91-122 
25 June 1991 


Party] strategists are pinning their hopes on these votes to 
get them to Moncloa in 1993. The PSOE strategists think 
this 1s mathc.natically impossible before the year 2000. The 
Spanish electorate considers iself “leftist” or “center- 
leftust.” and they think that Aznar’s party 1s still too far to 
the mght, despite his efforts to shift to the center and fill the 
void left by the defunct Democratic Center Union (UCD). 


But a few people agree that the strike, which Aznar has 
turned into a big issue at his rallies, “1s hitting the PSOE 
where 1 hurts the most™: the urban voter who has a 
certain amount of buying power, 1s well informed. lacks 
discipline when i comes time to vote. and 1s very 
sensitive to anything that might impair his quality of life 
Like traffic yams. lines at the gas station. canceled and 
delayed flights... 


Cities in the Balance 


4 few things arouse the more incendiary instincts of 
these voters and prompt them to cast a “punitive vote” 
against the ruling Socialist Party. According to experts in 
electoral sociology. these voters rarely cross the line 
between left and right, but they tend to go over to “third 
parties” or...to abstain. Sociologists such as Migue! Mar- 
tunez Cuadrado and Pedro Casas Alvarez believe that 
voter abstention hurt the PSOE more than anything else 
in the last clections. 


The Socialist candidates in the mayor urban areas, such as 
Madrid. Barcelona, Valencia, and Seville. the four capitals 
where Felipe Gonzalez 1s putting his electoral strength to the 
test, are well aware of this. And these cities are not the only 
problem areas, Aznar 1s willing to make a pact with the devil 
in order to undermine the PSOE’s municipal strength in all 
cities with more than 100,000 inhabitants. And there is no 
shortage of devils to enter into pacts with: in Seville, Rojas 
Marcos’ Andalusians; in Valencia, the regionalists of Valen- 
cian Union; in the rest of Spain, a broad range of local and 
regional groups. 


A few thousand votes lost to the other side could leave 
the Socialists out in the cold in Valencia. Sevilic. or 
Madrid. If this happens, Felipe Gonzalez will be in a 
very tight spot. no matter who the beneficiary 1s 


Maybe that 1s why Joaquin Leguina, head of the PSOE 
list in the autonomous community elections in Madrid. 
iS particularly upset with Nicolas Redondo. “The call to 
go out on strike really took me by surprise. | expect 
something like that from the corporate unsons, but not 
the UGT.” 


UL psurge in UGT 


Leguina, who 1s one of the Socialist leaders who have 
been most vocal in calling for a reconciliation with the 
trade umons, does not believe that the choice of date was 
a comncidence. “They are lying. No one believes that. | 
think it 18 totally opportunistic.” 


SPAIN 25 


Redondo’s decision has also upset some union leaders 
who had supported Joaquin Leguina and Juan Barranco 
by appearing at their campaign kick-offs: the general 
secretary of Madrid. Jose Luis Daza. and those in charge 
of the construction and bank employees’ federations. 
Manuel Garnacho and Jorge Diez. 


“It does not seem logical to me.” says Manuel Garnacho. 
a traditional union man who has remained loyal to 
Redondo since his divorce from the party. Garnacho. 
whose federation 1s not on strike because ut already has 
signed contracts, believes that this strategy “only favors 
United Left.” He 1s probably mght. The coalition 1s 
enjoying a period of great optimism. spurred by the 
success of the strikes and the favorable winds blowing in 
the public opinion polls. 


Euphoria also reigns at the headquarters of the Workers 
Commissions: In just a few days Antonio Gutierrez has 
managed to join the European Confederation of Trade 
Umons (CES). thanks to the UGT's withdrawal of its 
veto. to mend fences with Redondo. and to forge a 
united front of union activity once again. Even if this 1s 
just a marriage of convenience (“they cannot stand each 
other. but they want to remain together.” says a high- 
ranking official who has had to grapple with them on 
numerous occasions). it has already made a show of 
strength: the strike 


Moreover, the show of strength comes at a key moment. 
Carlos Solchaga proposes to negotiate an agreement with 
the UGT nght after the elections. Socialist Party officials 
are also beginning to build bridges to their erstwhile 
umion brothers 


Many UGT leaders have noticed this conciliatory atmo- 
sphere in recent months. Thanks to the consolidation of the 
UGT as the leading trade union organization after the 1990 
elections, it 18 once again on Felipe Gonzalez’ list of pror- 
it cs, as he needs it for the competitiveness pact 


Going for Felipe 


In the last few days the signs of rapprochement have 
been as discreet as they are abundant: Jose Borrel! met 
with the UGT to assess the status of the construction 
projects for 1992. Ramon Rubial went in person to wish 
Nicolas Redondo luck with his new business group, IGS. 
and members of the federal executive body acknowledge 
having received “informative feelers” from people in the 
government's economic sphere 


All of this comncides with the bloody war of succession 
that 1s angering and fragmenting the Socialists. Each of 
the two clashing sectors wants to strengthen its ties with 
the departed brother who. no matter how tar he has 
strayed, will always be considered one of the powers that 
be mn the families of Spanish Socialism 














26 SPAIN 


Nicolas Redondo 1s aware of what 1s going on. and has 
precisely measured the impact of his actions. In the first 
place, he wants to put a high price tag or any agreement. 
and he wants to go into the negotiations from a position 
of strength. “We know that at Moncloa they are pre- 
paring the pact for after the municipal elections, bul we 
will not easily give up what we have accomplished during 
four years of political ostracism.” admits a member of 
his team. 


Other interpretations attribute more political motives to the 
strike and the renewal of good relations with the CCOO. 
Redondo is hearing the siren call from Ferraz, national 
headquarters of the Socialist apparatus, which 1s aligned 
with Alfonso Guerra: and from the camp of Carlos Solchaga. 
symbol of the more liberal sector of the PSOE. Both are 
awaiting the results of the 26 May elections before they 
unsheathe their swords once again. The sinke, with its 
inevitable electoral consequences, will intensify the usual 
exercise in assigning blame. will sharpen the cxrsting con- 
tradictions within the party, and will put even more pressure 
on its leader Felipe Gonzalez 


Since December 1988 everyone has been aware of the 
hostility Redondo feels toward Gonzalez, with whom he 
has been engaged in passionate power struggles since the 
days when the two of them planned the current phase of 
the Socialist Party. “The one Nico 1s goung for 1s Felipe.” 
say those who know him. “His exhibitions of strength 
reflect his old obsession, proving that he 1s still in charge 
of part of the Socialist camp.” 


Uninvolved in these conflicts, big city residents watch 
impassively as a dual spectacle unfolds: the strike. which 
has worsened their living conditions for a few days, and 
the clection campaign, which promises to improve them 
forever 


Stories of Disenchantment 


The studies conducted by this magazine indicate that the 
erosion of the PSOE’s influence, coupled with circum- 
stantial factors such as the paralyzation of public ser- 
vices, will benefit the “third parties” (from United Left 
to the Andalusian Party) directly and the People’s Party 
indirectly, enabling it to close the gap between it and the 
PSOE. The rise of the PP may remain an optical illusion, 
however, mn the best of cases, nt will only exceed its 
historic high (about 25 percent of the electorate) by a 
small margin. It 1s unlikely that the PSOE wall drop 
below the 35-percent share that enables ut to remain in 
office today 


Nevertheless, a few votes one way or the other, after 
passing through the meat grinder of the pacts, could oust 
the PSOE from some autonomous community govern- 
ments and some important city councils. It 1s no secret 
that the Socialists are still losing support mn the cities. For 
cxample. there 1s Jose Luss Gonzalez Candau. a Seville 
manufacturer, 46: “In 1982 1 voted for the PSO 
because I thought they would improve whatever could be 
improved, which meant nearly everything. But they have 


FBIS-WEL -91-122 
25 June 1991 


not solved anything.” Gonzalez Candau. who used to 
work at Westinghouse before he established his own 
business, and was a union representative with the 
CCOO, ts also disenchanted with the unions. “All they 
have 1s political slogans, which they place above the 
interests of the workers.” He docs not believe in politi- 
cians, and he says that nationalistic partics do not 
deserve his confidence either, tut he has decided to cast 
his vote for Aleyandro Rojas Marcos, the candidate of 
the Andalusian Party. 


Juan Bravo, a business representative from Vitoria. has 
traveled a similar route in his *2 years, although he had 
a different point of departure and different goals: Rather 
than nationelism, first he voted for the UCD. then for 
the PSOE lay he 1s ready to vote for the People’s 
Party. “Fei. sonzalez has Iet me down, with all those 
scandals and so much arrogance. Suarez was the protag- 
onist of the democratic transition, Felipe of the consol- 
idation of democracy: now i 1s up to Jose Maria Aznar 
to prepare Spain for the year 2000." 


A similar opimon ts expressed by Luss D.. a manufac- 
turer in Usera (Madrid). who says bitterly. “1 am cer- 
tainly going to vote for the PP. The PSOE deserves to be 
punished.” Or Ramon, a taxi driver in the same district 
who has decided to take a more ecological route: “| am 
going to voie for the Greens. | used to vote PSOE, but 
this 1s my punitive vote.” 


The punitive nature of the vote 1s recalled by many 
middle class people who were interviewed in U'sera, an 
urban district of 125,000 inhabitants that has some 
special significance. In 1987 and 1989 its voting results 
were almost exactly the same as those of the entire 
nation, im terms of distribution among parties and 
expression of trends 


Although the vote on thes district 1s weighted toward the 
left. and the PSOE 1s still the most popular party. its old 
voters include all kinds: the satisfied, the resigned, the 
disenchanted, and the fursous. The latter are in a mood 
to punish the PSOE. Many of them will do so by voting 
for United Left. This 1s true of Rafael 1, an official of the 
Madrid city government: “The country does not work, 
after 10 years. | intend to vote for United Left because ut 
1s One way of punishing the PSOE” Others wall opt for 
abstention, like Antonio S.. unemployed: “1 always used 
to vote for Felipe, but when | saw the business of the 
votes mn the Senate, | decided not to vote for anyone 
Politicians are all alike 


Miistrust and Apathy 


Abstaining also looks appealing to many of the 15 
million young people who are chgible to vote for the first 
time. University students vacillate between indecision 
mistrust, and apathy. They say that in politics there are 
a lot of hes and manipulation. Estrella Ruiz, 18. a 
computer science student at Complutense im Madd 
declares, “| do not belreve anything the parties say ~ And 
Jesus Ruiz (age 20. telecommunications) says. “IT have 








FBIS-WEL -91-122 
25 June 1991 


never voted and | do not plan to. | do not believe the 
politicians or their Campaigns.” 


Antonio Jesus Gonzalez (age 20. economics). Josue 
Carretero (age 18. mathematics). and Jose Lurs Gimenez 
(age 20. biology) repeat the same refrain: The current 
politicians “do not motivate us.” Some. like Pilar Vivas 
(age 20. computer science). go even further: “The first 
tume, | voted PSOE. although my family are mghtists 
Now I would vote PP. I saw an IU spot on television and 
another one for the PP. and I liked the PP one better.” 


Jorge S. Pedraz. who was forced by the shortage of 
gasoline to remain cooped up in his apartment in 
northern Madrid for two days. 1s prevented by his past 
from making such leaps. But on 19 May. while wasting in 
line at the gas station. he decided for the first time in his 
long history as a die-hard leftist to join the ranks of the 
abstainers. “That 1s, if | do not end up domg something 
stupid like voting for Alvarez del Manzano. just to see if 
they can get their act together” When the Guerrists 
count the votes, they will blame Solchaga for the losses: 


SPAIN 27 


the Solchaga camp will blame Guerra. Some will con- 
demn Nicolas Redondo. although the criticism sounds 
more like an apology: “The thing 1s, he 1s so crude...” 


Scientific Agreement Signed With Argentina 
PY 2506023491 Buenos Aires TELAM in Spanish 
1901 GMT 22 Jun 91 


[Summary] Madnd, 2! Jun (TELAM-ANSA)}—Argentina 
and Spain signed a scientific Cooperation agreement in 
Madrid today according to which Spain will be able to use 
Argentina's scientific bases in the Antarctic and Argentina 
will be able to use Spain's Juan Carlos | scientific center on 
Livingston Island. Argentine scientists will also be able to 
conduct research on board the Spanish oceanographic ship 
Esperides, which will begin its first Antarctic voyage next 
fall. The two countnes also agreed to carry oul joint 
scientific programs in the fields of oceanography. sea 
chemistry, high atmosphere physics. geology. geophysics. 
biology. and meteorology 








28 NORDIC COUNTRIES 


Denmark 


* Greenland Leader Lars Emil Johansen Profiled 


YVIENOSYYVA copenhagen BERLINGSAE SONDAG 
in Danish 14 Apr 91 p 12 


{Conme Hedegaard article: “If He Does Not Get His 
Way. There Is Trouble™] 


[Text] Extraordinary intelligent, socialist. a great tacti- 
cian, a bit of a Lenin—are comments being made about 
Greenland’s new leader. Lars Emil Johansen. who has 
put the father of his country out in the cold 


Friends and enemies are agreed on at least two things 
The first: Lars Emual ss hardhitting. dazzling. alarmingly 
intelligent—the expressions vary. The second: A father 
of his country a la Jonathan Motzfeldt. his predecessor. 
he 1s not 


“There is a kind of Afncan chieftain feeling about 
Jonathan. but not about Lars Emil.” 


And maybe that’s just as well. After 12 years—a couple 
of vears too many in the opimon of quite a few—under 
the leadership of “father of the country’ Motzfeldt, 
Greenland could probably use a practical man of action 
who knows what he wants for his country. Lars Emil 
Johansen. they say. knows that what he wants 1s some- 
thing very different 


For vears Lars Emil Johansen and Jonathan Motzfeldt 
have fought a seemingly bitter and ever more visible 
battle for power mn Greenland and within their mutual 
party. Sumut. After 12 years in the post of chairman of 
the governing administration, Chief Jonathan has now 
been dethroned. One would have thought the battle was 
ended, but no. observers who understand the very spe- 
cial brand of political infighting and psychology known 
as Greenlandic politics say that the day Motzfeldt “gets 
control over his life.” it 1s quite conceivable that he will 
return. Yes, and maybe even because Lars Emil. himself, 
will offer him the post, a startling confirmation of the 
assertion that Greenlandic politics 1s something quite 
unigue onto itself 


As recently as Friday before last, Lars Emil Johansen 
dealt Motzfeld the final blow, when he very uncxpect- 
edly neglected to recommend him for the post of 
chairman of the Landsting. Motzfeldt had overstepped 
the line in an attempt to undermine Johansen’s Siumat 
majority in favor of coalition with the leftwing party 
Inuit Atagatigit [1A], and this was allegedly the basis for 
visiting this humiliation upon a party colleague of 20 
years. Even so, they remain on speaking terms, “of 
course” It 1s thought that. when Jonathan appeared 
ready to quit Crreenlandic politics, 1 was Lars Emil who 
told him to pull himself together. Thus by Tuesday he 
had become Siumut’s political chairman and by Friday 
was able to participate on his first meeting as the newly- 
appointed managing director for Greenland Airlines 


FBIS-WEL -91-122 
25 June 1991 


He Uses Any Means To Win 


Although many feel that Motzfeldt 1s himself at fault in 
losing the “prime minister's post.” there are also many 
who feel that. because of his own ambitions, Lars Emil 
Johansen has treated Motzfeldt badly. Not so. Lars 
Emil’s friends argue. he would have preferred to remain 
for a while yet in the wings pulling the strings. where he 
1S also able to run Greenland’s biggest industries as an 
especially hardworking managing director. Where 
Jonathan seems to shine at “flagwaving and hurrahs.~ 
pragmatic Lars Emil 1s not interested in anything less 
than representation 


Despite this. few doubt that he was well pleased to 
emerge victorious from the confrontation with 
Motrzfeldt. If for no other reason. because Lars Emil likes 
to win. And preferably every time. And according to his 
enemies, who are for that reason afraid of him. by using 
any means. According to his frends. nearly any means 
Friends of his carly years remember him from the 
badminton court. If he lost. he flung the racket angrily on 
the court. But. they add. later he learned both to play the 
game and to control himself 


Political opponents are not entirely of one mind. If he 
does not win the first round, he screws the argument up 
a notch. which no more than the designation “scrupu- 
lous.” 1 intended as praise. Yet admiration for the 
goal-directed politician cannot be hidden even among 
nonsociahst Greenland politicians, who fear a shift to 
the left as a result of socialist Johansen’s alliance with the 
leftwing party. IA. and its talented leader. Aqqaluk 
Lyngc. Lars Emil. born in 1946, did not acquire his iron 
will from strangers. His mother, midwife Elizabeth 
Johansen, 1s Greenlandic politics’ grand old lady. and at 
home in Umanag. you learned to strive after things 


Socialism and Colonial Power 


And Lars Emil 1s striving to do something with Green- 
land. After receiving a high school degree and later a 
teaching credential, he got quickly involved in politics 
In 1971, at the age of 24. he made it into the Folketing 
where he became associated with the Socialrst People’s 
Party Group, and that same year sat on Cireenland’s 
national council for the first time 


There was never a lack of provocation from the young 
Gireenlander who liberally and with evetent cool dis- 
pensed well-formulated, verbal cuts at the “Danish colo- 
nial power” that conducted itself as a “chartered chiet- 
tain.” Together with Moses Olsen and Jonathan 
Motzteldt he formed part of a powertul trruumvirate for 
nearly 20 years in Greenland politics. Together they 
founded the Siumut party with its demand tor home 
rule—not to be confused with independence—and when 
in 1979 wt became reality. Motzfcldt as the oldest and 
most outgoing. became chairman of the home admunis- 
tration, while both Olsen and Johansen became “minis- 
ters” on the administration, Lars Emil taking the respon- 
sibility for business, industry. and fishing 








FBIS-WEL -91-122 
25 June 1991 


In Philip Lauritzen’s words from 1986. Motzfeldt was the 
high priest. Moses Olsen the philosopher, and the clever 
lactician and youngest member. Lars Emil. was the 
“guenila leader” who fought for his socialist ideas in the 
“colonial backwoods of Denmark.” 


Although no one doubts Johansen’s ideological stead- 
fasiness. they do stress that through the years he has 
become much more pragmatic. Especially. perhaps. since 
he returned to politics four years ago after a short stint as 
principal of the Labor High School in Julianchaab. His 
choice of high school was favorably noted by the Green- 
land labor movement. SIK 


Since then he has been a successful managing director for 
a senes of large Greenland enterprises, of which the 
largest. Royal Greenland, managed under his direction 
to turn a deficit of 400 million into a historic profit last 
year of SO million. Greenland’s postal service. for only 
the second time in its 1) year history. was also able to 
report a profit last vear 


Greenlanders: No Special Treatment 


Lars Emil Johansen knows that independence requires a 
good economy and despite his nationalism, Green- 
landers can not cxapect any special treatment trom the 
new chairman of the governing administration. He 
chooses people by their qualifications and takes pride in 
having Greenlanders measured by the same standards as 
others. It 1s an attitude that causes some nervousness. 
among other places. within the home rule admuinristra- 
tion. In Motzfeldt’s time dismissals were handed out 
liberally when the chairman’s temper ran away with him. 
but no one was ever axed. If Lars Emil tells people they 
are being fired they can expect it to happen. In hes vision 
of a tuture Greenland there ts no place for cacess 
administration, which gnaws at the businessman inside 
of him as well. If it has to be pustified, and ut does, he rs 
the man who can do it 


It 1s precisely his insight into how the business world 
functions that has made him more pragmatic Thos 
pleases the majority, but, sighs Atassut’s Lars Chemnitz. 
he has gradually stolen much of Atassut’s politics 
Although, not on tie EC issuc. Johansen’s opposition rs 
still more :deologically than economically determined 


(thers in Atassut fear that Lars Emil 1s again moving 
towards the left and, for example, will once again raise 
the issue over Greenlanders’ nghts to the subsurface. He 
lost this controversy in the home rule commussion late mn 
the 1970's, but Lars Emil persists charactersstically until 
he reaches his objective. He knows what he wants and 
prefers to lay out his goals and visvons from the podium 


“Because of his oratorical abilities, he likes to pursue the 
debate from the podium. He has never learned what 
lobbying 1s. explains Atassut MP. Otto Steenholdt, who 
accuses him of too often making debate unnecessarily 
difficult 


NORDIC COUNTRIES 29 


Johansen and the Russians 


“He 1s a born demagogue and therefore dangerous. He 
can make black seem white. and he does 1.” adds editor 
Jorgen Flerscher 


If he docs not get his way. there 1s trouble, as for 
cxample, during negotiations in Denmark. When 
Moizieldt despite Johansen’s warnings, persisted in 
intruding himself into the rssuc, which was under the 
Lars Emil’s purview. the laticr simply left the negotua- 
tions table—and was gonc for a day and a half 


Yet both former and current Danish ministers are unsied 
in regarding Lars Emil Johansen as a remarkable. clever 
politician who knows what he wants and understands 
how to play his cards in order to get the most out of 
them. He understands how to surround himself with 
capable people. as well 


“It 1s a Strong governing administration he has chosen, 
simply some of Greenland’s best political talents.” says 
Hans Engcll, minister of pustice, as a compliment 


Lars Emuil’s wallfulness 1s of course well known in Den- 
mark also. perhaps especially in the Ministry of Foreign 
Affairs where brows were raised very high when 
Johansen a few years ago began on his own and abso- 
luicly without authorization to negotiate fishing nights 
with the Sovict Union. In the future there will be no 
Motsteldt to call him to order 


Spirits and Harmoniums 


Lars Emil Johansen 1s his own man and not so casy to 
comprehend. Johansen 1s reserved. Not very approach- 
able. Perhaps not too popular. More respected. And 
many are also a lithe afrand of him. If one 1s not with 
him. then one 1s against him and cannot expect to land 
interesting jobs in Greenland, say critics. “There 1s a bit 
of Lenin in him.” it 1s sand—but not tor quotation 


Few ect close to Lars Emil, the person. “He 1s a politician 
like a 24 hour newsstand owner,” says Aqqaluk Lynge. It 
iS his life. One does not meet Lars Emil Johansen 
hunting or fishing for an informal chat. and his private 
life 18a private matter. He takes pride on the fact that he 
is not the one scen half or fully drunk in official capacity 
When alcohol was on the verge of getting too great a hold 
on him some years back, he threw his enormous will- 
power mto making sure that 1 would not go thal way 
And succeeded. This carnes respect in Greenland 


In many ways Las Emil Johansen portends a new cra 


“Jonathan loved to give Danish visitors a thorough dress- 
ing-down before spending the evening with them in good 
humor at the harmonium. Now it will be more the Jesuit 
school that will govern Greenland.” savs Hans Engell and 
laughs. And who knows Because. in fact, Lars Emil also 
plays—piano, harmonica, and ves. harmonium. And when 
he performs publicly. he does ut often and by preference 
with—ves. that’s nght—Jonathan Motzteldt 





FBIS-W EL -91-122 


” NORDIC COUNTRIES 25 June 1991 


* Bjerregaard Seen Unlikely To Head SD 
YIENO6USA Copenhagen BERLINGSKE TIDENDE 
in Danish 17 May 91 p 6 


[Jorn Mikkelsen article: “Portrait: Morality’s Whip™] 


[Text] Ratt Byerregaard never became prime minister 
and never will, Danes (and Social Democrats [SD]) 
cannot unite around someone who flogs them with 
morality. cultivates contradiction and provocation. 
seldom (never’) compromises, and shows all the same 
that she knows better. She makes us a little insecure, and 
that 1s almost un-Danish. 


On Sunday she will turn 50 years old, and she has done 
her share of dirty work. That 1s the price one pays for 
coming up with new ideas, having the courage to say so. 
and dealing with the backlash afterwards. It 1s also 
apparently the price one pays for being a visionary and a 
Social Democrat at one and the same time. Are Danish 
politics too small for a Ritt Byerregaard? Or is ut merely 
a question of whether women with obvious ambitions 
continue to have a hard time” She herself does her bit to 
market this latter notion. 


Now she 1s trying to become the foreign minister in the 
internal market. and she has prepared herself with as 
much thoroughness as she has built up her entire career. 
Now and then that all-embracing meticulousness and 
that ice-cold competence can be mistaken for cynicism. 
and matters are not made better by the fact that she uses 
and uses up her proteges. 


Yet the dream of becoming number one has been given up 
She has acknowledged that she 1s not sufficiently unifying 
Her relationship to the leaders of the trade union movement 
18 100 Strained, and without them no Social Democratic 
prime minister can govern. “The lady.” as they call her 
when they are polite, 1s a constant source of irritation. When 
she lashes out at the trade umion bosses, the Movement 
shakes. The tore basic context may be that if Ritt Byerre- 
gaard had not done 11. then there was no one in their own 
ranks who did. So there was only silence and foot shuffling 
and general misery 


As group chairman at the Christiansborg she 1s just as 
controversial. This goes back to the old coffee klatsch 
days which divided members of the group into those who 
were in and those who were out. There are those who 
bevefit from being useful to Ritt Byerregaard and there 
are those who do not, and they are pushed even farther 
away. That she never became party chairman 1s duc to 
the fact that she herself ended up being the victim of that 
Strategy. when it was really in force in 1984, at which 
time Helle Degn was not elected deputy chairman. It still 
pains Birte Werss that 1 was she who was 


In negotiations Ritt Byerregaard 1s not the one who 
carnes on with the big words. She holds her cards close to 
the vest. (ince her notes of a mecting were for her own 
use so that they could never be used and there could 


never be a record of who had said what. This has 
dropped off as her position has become a given. The fact 
that she came to say those famous words. “what Svend 
means...” has made her work more with her style in 
relation to those television cameras on which all polits- 
cians, even Ritt Byerregaard. are dependent. She has 
become better rounded as a result and as a result of the 
security which comes with unchallenged power 


But she still enjoys full control. Even when she fought 
back a tear in 1978 as she said farewell to the Foreign 
Ministry. 1t looked wel! planned. Her method 1s planning 
and organization, by which method she appears the 
opposite of her party chairman. These moves at the top 
of the country’s largest party have always attracted 
interest and, with Rutt Byerregaard as one of the players. 
things wall never be different 


Ritt Byerregaard and Denmark in the last quarter of the 
century will always be two concepts in the same breath 


Quotes From Ritt Bjerregaard 


“Why should the Social Democratic Party maintain or 
support art which very seldom picases or 1s beneficial to 
us or our voters” (Report from a coffce klatsch, 1977) 


“To me it 1s obvious to assume that the public service 
sector has become so large that the more moncy thal goes 
into it will to a greater extent benefit therapists and 
treatment personnel, doctors and administrators than it 
will benefit cents, patients, taxpayers. or whatever cise 
you want to call the objects of so much care.” (Speech to 
the Social Policy Federation, Askov, 1979) 


“There are ceriainly not a lot of businessmen for whom ut 
does not stand to reason that what we in the western world 
pay for public services 1s small im relation to the political 
and class stability we get for the money.” (Speech to a 
management symposium, Sankt Gallen, 1982) 


“My childhood conceptions of the worker class no longer 
have any rea: content—the difference between age groups 1s 
more striking than the difference between classes.” (From 
the book / opposition [In Opposition), 1987) 


“I still beheve that private ownership of the means of 
production, as we now know 11. will be abolished by the year 
2000, and there will be no revolution to carry out such an 
obvious step.” (From the book Srrid [Srrugele|, 1979) 


“He enumerates..an entire lithe band of aging guards 
who stand watch with him around the exhibit cases in 
the Socal Democrat museum.” (Sard of party col- 
league Robert Petersen, AKTUELT, 1984) 


“In my consciousness Our Lord, the Holy Spirit, Jesus 
and the Virgin Mary have always cxrsted on the same 
plane as clves, and I have never viewed as any sort of lows 








FBIS-WEL -91-122 
25 June 1991 


that I cannot mmagine any of them. esther the Trinity or 
Christmas clves as cxrsting.~ (Column in BERLINGSKE 
TIDENDE., 1990) 


“Yet the most honest thing to say 1s that ut can be 
absolutely immaterial what political coloration the gov- 
ernment has. The problems of Denmark's small society. 
im terms of both security and foreign economic policy. 
are presumably such. and the lumitations placed upon us 
so huge. that there 1s no place for special party politics 
oddities or dirty tricks.” (Column im POLITIKEN. 1989) 


“Without a doubt agriculture 1s the most messed up 
business. The mess in agriculture follows exactly the 
same model as other, lesser environmental messes. for 
cxample Cheminova.” (Column im JYLLANDS- 
POSTEN. 1985) 


“Yet Danish journalists are not as honorable and pro- 
fessional as Norwegian journalists. It's the conditions we 
work under in politics. You get used to the journalists’ 
hunt for the sensational, even in places where there 1s 
none. And those of us who are cxposed to i just sigh 
‘God help us.” (Sand to AFTENPOSTEN, 1987) 


* Greenland Trade Surplus for Last 2 Years Noted 


VIE NOOOSB Nuwk GRONLANDSPOSTEN in Danish 
2S Mar Yi pid 


[UU natiributed article: “Surplus In Balance of Trade™] 


[Text] Foren revenues dropped by over 200 millon 
kroner in 1990) 


For the second vear mm a row, Greenland has reported a 
surplus mm its trade balance. The 1990 surplus was 
93.355.000 kroner. while in 1989 Greenland had a 
surplus of 140,979,000 kroner. Thes 1s a decrease of $7 
millon kroner 


In 1990 goods worth a total of 2.692.116.0000 kroner 
were imported whereas in 1989 2.914.960,000 kroner 
worth of goods were imported. Similarly exports 
dropped by about 300 millon kroner. In 1990 raw 
materials worth a total of 2.785.471,000 kroner were 
exported. In 1989 thes figure was 3.055,940,000 kroner 


Total imports dropped by approxmmately eight percent 
compared with 1989. whereas total cxaports dropped by 
approxammately nine percent. These figures mean that for 
1990 Greenland reported a surplus of approximately 93 
millon kroner 


The drop in exports 1s duc mainly to a drop in the export 


of ore, which was the result of the gradual phase-out of 


ore quarrying and the final closing of the mine in 
Maarmorik in mid-1990 


Despite a huge nine-percent increase in shrimp caxports. 
the total value of shrimp exports, roughly speaking. 1s the 
same, owing ©» the drop im the price of frozen shrimp 
The average price of frozen shrimp has dropped because 
more of the small, “cheap” shrimp are being sold and 


NORDIC COUNTRIES 3M 


fewer of the big “expensive” frozen shump. Furthermore 
there has been talk of a drop in the value of the Japanese 
yen. The overall drop in value for exported shrimp. fish. 
cic. 1s duc im particular to the fact that the quantity of 
cod has dropped by 46 percent when compared with 
1989. The drop in exports has occurred on the German. 
Swedish. and Japanese markets in particular 


Imports of foodstuffs such as pork. chicken. vegetables. 
etc. have dropped by a good 65 million kroner mm 1990 
from 401.776.000 to 333.939.0000 kroner 


Beverages and tobacco have also been dropping off. In 
1989 Greenland mmported 148.824.000 kroner worth. 
whereas in 1990 “only” 113.245.000 kroner worth were 
imported. On the other hand a msc in the price of onl was 
also recorded here in Greenland. In 1989 277.605.000 
kroner were spent on fucl and lubricating on whereas in 
1990 323.983.000 kroner were spent 


Exports of fish. shrimp. ctc. dropped also. In 1990 
2.326.863,000 kroner worth were exported and in 1989 
2.382.234,000 kroner worth were exported. This 1s a 
drop of about 56 million kroner 


Of non-edible export goods. 366,226,000 millon kroner 
were exported whereas for the year 1989 $72,203,000 mil- 
hon kroner worth were exported. This ss a drop of 206 
million kroner caused exclusively by the closing of 
Maamorilih 


Finland 


* Collapsing USSR Trade, FC Tie Linked 
Stockholm DAGENS NYVHETER in Swedish 28 May 9! 
p 32 


[Bjarne Stenquist article: “Uncertain Market in Both 
East and West” ] 


[Text] Finland's course towards the EC 1s influenced by 
the fact that the Sovict market has almost collapsed 
During the greater part of the 1980's, 25 percent of 
Finland's export was sent there. now it 1s only about 5 
percent. The significance of the EC market 1s increasing 
proportionately. The last couple of years, the EC's share 
of the export has increased from 35 to almost $0 percent 


The member countries of EFT A, Sweden, Norway, Swit- 
reriand, and Austra, receive another 20 percent of 
Finland's export. Of those. 14 percent go to Sweden, 
which means that Sweden last year constituted the 
largest export market for Finland's industry 


Lack of Hard Currency 


The rapid deciine im the trade with the Sovict Union 1s 
duc to the fact that the parties abandoned the so-called 
clearing trade at the end of the year. In practice that 
meant that the Sovict Union traded of for Finnish 
industrial products. The higher the price of on! or the 








more oi Finland imported. the more ships. machines 
and tactones 1 could sell to the Sovect | non 


Now all trade 1s handled with ordimar currency. The 
problem 1s that the Soviet customers lack hard currency and 
the entire old emport and export syvstem rs in disarray 


How large trade with the Sovect L neon will be thes year 
isextremels uncertain. The prognoses altcrnate betwcen 
4 and ~ percent. Al the present teme. Finnish expon for 
all practical purposes 1s nil. but there os hope that the 
Soviet Union will be able to Come up with some moncs 
for imports from Finland later on thes scar 


Since the middie of the 1980's. Finnish companies have 
anticipatedt his devclopment. Thes have consciously con- 
centrated on compensating for the disappearance of trade 
with the East by increasing exports to the EC and to Sweden 
Last vear Finnish companies invested 3.7 bilhon kronor m 
Sweden. more than in any other countn 


Difficult Balancing Act 


Now the possibility cxrsts. however. that Swcden but not 
Finland becomes a member of the Ft Then all of 60) 
percent of the Finnish export would go to the EC market 


“This means that our tics to both the Swedish and the 
Soviet markets would be pcopardized at the same time 
Therefore, the balancing act of Finland's forcign policy 
must take place under constant consideration of cco- 
nomic realities.” says a Finnish diplomat 


* Role of Soviet Ties 


vii VHSB Vrahholem DIME NS VOMETER 
im Swedish O8 Vay Vi p 20 


Finland Keeps All Doors Open” | 


; 


[Bjarne Stenqgurst article 


[Text] Helsinki—The EC issuc on Finland has landed in 
the center of a fight between two foreign policy camps 
“Traditionalists” against “new realists ~ The discussion 
concerns how Finland will strrke a balance between a 
disintegrating Soviet LU mion and an cxpanding E¢ 


Taking the Local Train to Europe vs the utle of a new book 
published by the former foreign minister and party 
chairman. Kalevi Sorsa Max Jakobsson. Finland's leading 
foreign-policy Commentator, feels that i 1s an apt title 


He writes in the Finnish daily newspaper HELSINGIN 
SANOMAT: “We want to think slowly and lersurels 
look at the countryvede mm peace and gurct. and mak 
stops here and there betore we decide whether wc want 
to continuc to the end of the lone 


According to Jakobson. the problem 1s that things on the 
EC are developing at such a rate 


that the Finnish blocal 


32 NORDIC COUNTRIES 


FBIS-WEL -91-122 
25 June 1991 


irain might run onto a siding. trom which we cannot 
continuc even if we want to” 


This reflects the EC debate in Finland. The “tradmon- 
alists” safeguard the old cauthousness. while the “new 
realists” want fresh unttuatives. Those who are cautious 
are still ai the heim of Finland's foreign policy . while the 
“new realists” stand Gut most clearly as proncers in the 
public debate 


All Tracks Open 


In talks with a number of well-placed sources in Hel- 
sinks. the DAGENS NY HETER [DN] has learned that 
official Finland ts keeping all tracks open. Preparations 
have been made to surtch trom the local tram to a 
European cupress down the line. if the need should arise 


Jan-Magnus Jansson. tor many sears editor m chief of 
the HUFVUDSTADSBLADET and chairman of a long 
line of Finnesh defense commitices. 1s one of the most 
prominent representatives tor the “trad:tronalrsts ~ 


“Finland cannot hand over the kevs to its foreign policy 
tO Brussels.” says Jansson. Like mans others. Jansson 
refers to centuries of cxapercence with Russia and the 
Soviet Union 


“Despite its current drsarray. the Sovect power will 
remain in some torm. The EC will never be able to 
stomach the Sovict LU nron or Russia as a member. Al 
best. the EC could become a positive partner to the 
Soviet Linon. At worst. the EC could be viewed as or 
devclop into an adversary 


Bevond Gorbaches 


Jan-Magnus Jansson teecls that the desclopment within 
the EC towards becoming a European superpower 
should not be minimized in the way he feels 1s happening 
in the Swedish debate 


As members we have to go along with the EC in its 
development. In the long run. the EC +s headed toward a 
umon of states with a pount security poloe and military 


resources 


“The feelings in Moscow towards the EC are uncertain 
tay. bul we must look further ahead. bevond Cror- 
haches. and make a long-term assessment of the relation- 
ship between the European and the Sovict power 


“The risk 1s great that ot will be a very tense relationship 
and all our caperience tells us that we should not put 
ourselves i 2 situatron where we muight be forced to 


choose odes on such a confit.” saves lansson 


Daily Relations 


Jansson s \iC*S agree WM Many respects arth those of 
leading Finnish diplomats They do not worry so much 
about future armed conflcts as about frectrons on the 
daily political economn and social relatoons hetwecn 
the FC and the Sovect t neon 








FBIS-WEL -91-122 
25 June 1991 


“We saw what happened aficr the shooting in Vilnius 
last January. The EC introduced a form of sanctions by 
withholding its ccomomuc and technological aid to the 
Sovect Union. It 1s almost unthinkable for us to aim for 
a collective foreign policy of this type.” says a source in 
the Ministry of Foresgn Affairs to the DN 


Still, others point out that Germany in many respects has 
the same policy towards the Baltic states as Finland. The 
conclusion in the Ministry of Foreign Affairs seems to be 
that Finland must wast for developments in both the Sovict 
Unmon and the EC to become clear before making any 
crucial decisions on the question of membership. Until 
then, Finland's economic interests are satisfied by the 


“nonpolitical” European Economic Space [EES] agreement. 


This attstude, however, 1s strongly critecized by the “new 
realists.” 


“Those who wait for the mnternal development of the EC 
and the Sovict Union to become cicar, will have to wait 
a long time. We are probably going to have to decide 
ourselves and to have the courage to accept the conse- 
quences without really knowing about the overall devel- 
opment.” says Jaakko Homem, chicf of the Economic 
delegation. former ambassador in Washington and a 
leading official in the Ministry of Foresgn Affairs 


Paavo Lipponen. a social-democratic member of the 
Riksdag. chairman of Helsinki Social Democrats and 
former chicf of the Foreign Policy Institute, 1s of the 
same opimon. He s the most vocal proponent for 
Finnish membership in the EC 


“The basic trend 1s that the Sovict Unron has a very great 
need for economic and technological support and that i 
wants to become a partner of western Europe. Conse- 
quently. 1 docs not make sense that Finland. because of 
the Sovect U mon, refraunms from domg what 1s best for the 
country.” says Lipponen 


The “new realists” feel that the men of the old guard do 
not realize thal a new situation casts in Europe 


“War 1s an impossibility. The Sovict LU nron will never be 
ablic to threaten Finland with force as wn 19399. There are 
technological and cconomac factors that decide the might 
even of superpowers today. The Sovict Unron is ser 
ously weakened and would not be able to punish Finland 
for an EC decrson without the other EC countries 
reacting.” says one of the “new realists” to the DN 


Thes way of thinking constitutes a radical break with the 
mayor philosophy of the Paasshivi-Kekkonen-doctrine Fin- 
land should never again become dependent on the support 
of others on its relatronshep with the Sovict U nron 


According to the Finnish constitution. Pressedent Mauno 
Konrto os the one who decides on Finland's foreign 


NORDIC COUNTRIES 3 


policy in the end. Korvisto has not exhibited any clear 
stand publicly and even initiated sudgcs can only gucss al 
what he rs thenking 


“Korvesto 1s & restraming factor. He docs not want to be the 
one to make a clean break with hes predecessors’ foreign 
policy direction.” says one of the “traditionalists. ~ 


“On the other hand. ri should be noted that Korvisto, in 
his speech on the new govcormment Coming into powcr on 
26 April, emphasized that Finland should investigate all 
conceivable alternatives im its relatronship with the EC. 
not only the oncs that are desrabic.” says one of the 
“new realists.” 


in a speech on 5 April, Korvesto also sand that the Sovect 
Limon no longer views the EC as a hostile organization 


Over the weekend 1 was reported, however. that Korvesto. 
during last week's presidential speech, emphasized that the 


EES ncgotiatvons may not be pcopardized & Finnish talk 
about EC membership. With that Kor nhewed, at 
least indirectly, the Coalition Party chairn kka Suom- 
men, who iast week demanded a rapid connection with the 


EC. Pertts Paasso. the chairman of the Social Democrats and 
former minister of foreign affairs, sard the same thong at the 
end of April 


Forced To Rethink 


Even diplomais who reyect membership for forcign- 
policy reasons. are leaving the door open to changes 


“Industry so far has loyally backed the notion of only 
negotiating an EES agreement, but if ot fecls that, im the 
long run. Finland would be teft behind if we semain 
outside the EC. we might be forced to 2. .amk just tke 
Sweden.” says onc of DN’s sources 


Sweden 


Two AGB ‘Spies’ Reportedly Seek Asylum 
112406121191 Stackholm Radio Sweden in bnelih 
1120GMT 24 Jun 9] 


[Text] An official at the Sovect trade delegation im Osto has 
sought political asylum im Norway. but Foreign Moenrstry 
spokesmen say ft 1s by fo means certain to be granted 
Meanwhile, pole say a Sovect reporter based in Oslo has 
also requested asylum m a Western country. Both men 
clam to be spies for d« Sovect seoret service, KOR 


* Liberal Party Leader Rejects NATO Tie 


VIE NOOE 24 Sta dholm DIGENS NVHETER 
m Swedish O8 Vay ¥il p 6 


{U natirvbuted artecle “Liberal Party Reyects NATO) Tie” ] 





M NORDIC COUNTRIES 


[Text] Whale vesiteng Asarna on Monday. Liberal Party 
leader Bengt Westerberg denied assertions that hrs party 
wanted Swedish tres to NATO. 


“ht us the Center Party that has come to that conclusion. 
not us.” he saed. 


Center Party leader Olof Johansson and Center foreign 
policy expert Par Granstedi wrote m an op-ed article in 
DAGENS NYHETER that the results of the Liberal 
Party's EC policy would be formal tres with NATO 
Neutrality must be maintained. otherwise the security 
Situation im the Nordic countnes would be worsened, 
according to Johansson anc Granstedt 


Bengt Westerberg stated that the policy of neutrality 
would be undermined as economic integration in Europe 


progressed 


We must be realistec and realize that om the long term— 
say 15 to 20 years—membership im the EC wall reduce 
the possibility of carrying out a policy of neutrality 


Depends on Center 


It 1s still to0 carly to say if the Center Party's position on 
security policy could present an obstacle to a possible 
coalition government. according to Westerberg. 


The discussions now under way among the nonsocialist 
partics concerning EC membership will decide the issuc. 


During the debate over sales tax on food, the Social 
Democrats have stated that the Liberal Party was the 
first of the two parties to go against the principles of the 
tax restructuring by demanding lower taxes. The double 
taxation of stock 1s one example 


“That 1s nonsense and nothing cise. It 1s a fabrication 
after the fact so that they can have something © cc* . 
plain about. The Social Democrats helped introduce. in 
part, the single taxation and we accepted u.~ 


The Liberal Party leader is concerned about the high 
figures New Democracy 1s receiving on the polls 


“It could become difficult to create a viable government.” 


One reason for the increasing popularity of New Democ- 
racy 1s its overly simplified message of lower taxes, 
according to Westerberg 


* Parties’ Stand on Neutrality, EC Examined 


VIE NO642B Stackholm DAGENS NYHETER 
in Swedish 29 May 91 p 33 


[Magdalena Ribbing article “Disagreement Intensified” | 


[Text] DAGENS NYHETER has learned that the dis- 
agreement has intensified among the top politicians who 
are discussing Swedish foreign and security policy as it 


FBIS-WEL -91-122 
25 Jane 1991 


relates to 3 Swedish EC applecation. The significance of 
Swedish neutrality 1s the stumbling block 


The line of demarcation goes between the Social Demo- 
crats and the Center Party. on the one siC>, and the 
Liberal Party and ihe Moderates on the other 


The group includes Prime Minister Ingvar Carlsson. 
Foren Minister Sten Andersson. European Affairs 
Minister Anita Gradin. Moderate Party leader Carl 
Bildt. Liberal Party Bengt Westerberg. and Center leader 
Olof Johansson. Thes group will formulate the official 
Swedish position on formgn and security policy 


Everyone agrees on the “heart of the matter”: Sweden 
will contunuc to be free of military alhances and will have 
an independent defense system. making 1 possible to 
maintain neutrality mm case of a war or crises mm the 
vicinity of thes country 


Several sour notes have been heard from the Modecraics 
since Liberal Party secretary Peter Orn and Riksdag 
candidate Carl Hamilton wrote an article on the 
DAGENS NYHETER Debate page indicating that a 
military wmon within the EC would be no obstacle to 
Swedish membership 


But they are just “flapping their wings.” according to the 
Modcrates. who do not beiveve there will be a molitary 
alhance within the EC. NATO) 1s already in place and no 
one has considered abolishing 1. the Moderates say 


Liberal Party leader Bengt Westerberg 1s considered to 
be more cautious m hes attttude toward the military 
umon than writers Orn and Hamilton 


Presently. however, there 1s no agreement on the documents 
that are berg discussed. Their wording has been changed 
gradually so that the relative unanimity that ruled from the 
beginning has now been broken. The Social Democrats and 
the Center Party leader are on one side and the Moderate 
and Liberal leaders are on the other 


The problem « the word “neutrality” After a bret 
absence. 1 appears once agai at various places mm the 
two documents that are being discussed: one that 1s 20 to 
) pages long for the Foreign Relations Commutice and 
another that 1s a shorter version of tins document 


The latter will be presented by the prime munster m 
Riksdag on 14 June and it will also be the paper that all 
EC governments will be able to study 


lt «s wmprohabic. however, thal a majority of the group will 
support haverng the prime muenrster take the document with 
him when he submits Sweden's EC application. This is 
expected to occur m July on the Netherlands which, begin- 
ning in that month. will be the chai nation of the FC 
Council of Menisters, which accepts applications 








FBIS-WEL -91-122 
25 Jone 1991 


The Moderate and Liberal icaders do not lke the fre- 
quent occurrence of the word “re-ncutralization.~ whach 
% now mm the document 


Differing \ iews 

The government and the Center Party leader beloeve that 
the word “ncutrality” should remain. The reason for the 
differing views 1s that the Moderate and Liberal ieaders 
beheve that Sweden's foreign policy cannot be called 
neutral if Sweden becomes an EC member. since 
would then have to go along with jornt policies 


The Social Democrats and the Center Party say that Reksdag 
has decoded that Sweden should seck EC membership with 
its “policy of neutrality retamed.” On Tuesday Foreign 
Munester Sten Andersson told Riksda¢ correspondents he 
hoped that the group could reach unanimity 


“LL nanemity 1s important. It 1s a strength of Sweden.” 
sand Sten Andersson. who sand he was ready to do 
everything possible to marta thrs unanimity 


Sten Andersson also beleves there will be no military 
alhance within the EC. He sand there was nothing im the 
EC positron that would prevent Swedish membership 
The strong forces that want to continuc the changes im 
Europe would be strengthened even more by Swedish 
membership. according to the foreign minisicr 


Will Not Create Obstactes 


But Sten Andersson also said that our attitude toward 
negotsatvons with the EC was mmportant. Sweden must not 
he down and let the EC face a nation that has more or less 
given up. If there 1s a nonsocialist government after the 
election, the Social Democrats in opposition would not 
obstruct such a government im order to make EC member- 
ship more difficult. Sten Andersson promised 


“But we wll inspire a nonsocialist government to pro- 
mote a Swedish policy.” the foreign minister sand gently 


* Neutrality Deemed Compatible With EC Tie 
VIE NO64E2C Stackholm DAGENS NYVHETER 
in Swedish 29 May 91 p 33 


[Byarne Stenquist article: “Neutrality Can Be Preserved” } 


[Text] Swedish neutrality can probably be combined 
with EC membership. It 1s certainly powrbic, at least, to 
combine freedon, rom military alliances and member- 
ship. But perhaps we should be more concerned for our 
security if the EC does not become a major power 


These differing answers were given on Tucsday when the 
Foreign Affanrs Commitice of Riksdag called in diplomats. 
military officers, and researchers to answer the question of 
whether of not neutrality could be compatible with mem- 
bership The guestion-and-answer session was held at the 
imitiative of the Environmental Party. which complained 
because neither Foreign Minister Sten Andersson nor 
Deputy Mounrster Prerre Schorn was there 


NORDIC COUNTRIES s 


Different Ideas 
The clearest positive response to the commuttce’s ques- 
ton came from department bead Nils Gryiden. who ns m 


charge of the Defense Ministry's Department for Long- 
Term Sirategec Planning (SSLP) 


“The goal of our polecy of ncutralety 1s to keep us outsede 
a big-power war mn Europe, whether ot be large or small 
Thes means that we repcct all forms of tactecal mulitary 
cooperation with other countnes.” Gyliden sand 


Swedish EC Ambassador Stig Brattsirom sand that there 
were different rdécas wrihin the EC regarding the extent 
and form of any future military cooperation 


Most Aggressive 

“But the maim trend within the EC 1s to make the West 
European Umon [WEL] an instrument of cooperation 
on security policy. where thes docs not conflict with 
NATO. In all probability. EC members will be able to 
choose frecly whether or not to partecipate mm the WEL 
In thes way. defense policy 1s singled out as a separate 
dimension.” Brattstrom said 


The most aggressive questioncr was Per Gabhrion of the 
Environmental Party He wondered 1s all the statements 
coming from various EC countnes and from the EC Com- 
mission mndicateng that one of thew goals was to establish 
permancnt military cooperation meant nothing 


“What will Sweden do if the FC decides mn 1996 to sect up 
genuine military cooperation” Will Sweden, as an EC 
member. block thers dev clopment”™” 


“ht seems that Per Gabrion beheves that Sweden wll 
remam unchanged over the neat 10 to 15 years. even of 
all Europe changes during that tome. We wll certainly 
learn from one another.” Sug Brattstrom responded 


* Prime Minister on Jol, l pcoming Election 
VIE NOGIAA Stadholm DIGENS NVHETER 
im Swedish 12 May Yi ps 


[Unatiributed artecle mncluding interview with Prime Min- 
ster Ingvar Carlsson thy Magdalena Ribbung. place and date 
not given: “1 Want To Remam, On His New Book” —first 
paragraph ns DAGENS NYHETER mtroduction) 


[Text] The answer to the question whether Prome Minister 
Ingvar Carlson wants his own more private cxrstence 
before i 1s tme to retere 1s “Tt has been a long terme wince I 
thought along those lines” It « a dutiful and probably 
completely wncere answer The DAGENS NYHETER [DN] 
micrvicw with Carlsson ms brought about, among other 
things. by the reccath published book of conversations with 
Ingvar ( arlsson. titled € arisen 


Prime Minister Ingvar ( arieson says that the clecton 
thes fall « more wncertamn than ever betore, bul be hopes 
for the support of the voters. He feels that the polos of 





% NORDIC COUNTRIES 


the Social Democrats have been good. even though be 
wrshes thal some things had been differeni 


“I would have liked to have seen more confidence among 
the voters both im me and on the party.” says Ingvar Carlsson 
m an mterview woth the DAGENS NYHETER about the 
book ( arisson which goes on sale tomorrow, Monday 


[C arisson] Of course, there are thongs that | regret. but 
Tage Erlander taught me no! to decil on wrong decs- 
sons. They are not umproved by berng discussed. onc has 
to gO on 


The prome minister 1s prepared to contunuc acting as 
partys chairman. mm the government as prime muinisicr 
and out of the government as leader of the Social 
Demo.tatic Party 


[Ribbing] Did you not say carler that you wanted some 
tume to yourself before retering’ Or was ut the post of 
ambassador in Helsink: that you were hoping for” 


[C arisson] It has been a long time since | thought along 
those hones. Now if 1s a Question of my current job 


Quick Reply 


The light load he previously always armed for has been 
transformed into a heavy one, but Ingvar Carlsson docs 
not mmtend to put 1 down. That 1s not done by someone 
who has become the charrman of hrs party 


When the DN asks whech minister post he would prefer 
apart from the one he has. the reply 1s quick 


[Carlsson] Research. environment, and the future. the 
arcas | handled before | became prime menistcr. There 
were cnormously stimulating questions mvolying great 
challenges for the future: Maybe that was my most 
enjoyable job 


The prime minister feels that the campaign will decide 
the upcoming clection and he admits his uncertainty of a 
socual-<democratc victory. There « fire mm his hoarse 
vorce when he says that he woll fight for the advancement 
of hes party He = more than convinced th™ social 
democracy 1 best for Sweden 


( hildhood 

( arisson 1s a book of conversations with Ingvar ( arieson 
by Croran Farm ipubirshed by Tidens) The book ms both 
about Ingvar Carlson and by him His replies to the 
questions are word for word his own, and he has spent a 
hot of tome cuplamneng where he recerved hes basi valucs 
and how he arrived at hes port of view 


It +s about Ingvar ( arisson'’s childhood and youth and 
about hes long politecal life There are also discusmons 
about important social questions 


[Ribbong) Election propaganda” 


FRIS-WEL -91-122 
2S Jeane 1991 


[Carlsson] It es no accudent that the book 1s beong pubirshed 
now | would lke to make my valucs known. It 5 a book Dy 
an actrve polsiscsan om the moddic of cuceteng events 


The book os called Carimon, no first name. Well, Ingvar 
Carlsson bkes to be called Carlsson by the Swedssh peopic 
Many of hes collcagucs also call hem just Carlsson 


The Other Karieson 


However. Ingvar with a C docs not think much of the 
other Karisson. with a K. who has mow entered the 
politecal arena. Bert Karimsson 


{( arisson] Bert Karlsson and lan Wachtmersicr only say 
what thes thenk the voters want to hear and they nore 
the comsequences of thei populrstexc suggestions They 
“ant to reduce the tax burden by close to 200 billion, but 
they do not bother about what happens to the care for the 
clderly. cheld care. of to security 


In the book. Ingvar Carlsson describes one difficulty m 
leading a government today He writes thai there 1s more 
whining. “Not on the part of the government bul on the 
part of socecty. caplanns the prime menesicr 


iC arlsson| There are so many powtive thongs. we have 
managed to achieve a decision on the EC. on a broad tan 
agreement. on the bridge across the Sound to Denmark 
on a mayor change om the work environment msucs. As we 
have worked with these large and mmportant things. it has 
been sand enstead thal the government cannot make up 
its mind because we had trowble reaching a decrwon on 
commercial TN 


[Ribbong) What vs the cause of thes whenong climate m 
the socects” 


Ingvar ( arlsson does not have a good answer He says 
that it carsts everywhere, mm the other Nordic countries 
where the gov ernmments have stepped down. for instance 


|( arlvson) Tage Eriander called ot the “dissatisfaction of 
expectations.” when the voters thought that things were 
not moving fast cnowgh Perhaps that 1s one caplanation 


The prime muoenrster feels that the whening has another 
aspect. however According to opimon polls, 85 percent 
of the weually critecal young people thenk that Sweden is 
a fine of tasrly fine country to live m 


iC ariwson) Tt os actually permitted to enjoy hiving m 
Secden Swedish children are the most fortunate mm the 
world. we have good ling Mandards. our nature 
fantasin and our successes in woe hockey, tonnrs and ping 





PBIS-WEL -91-122 
> June 1991 NORDIC COL NIRIES 7 


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Part I hat “as wht “ac a2™Mianned trom + “Ming am!) 
cd them mite the gexcrament m 19 8 The ree 


viene Cucstiron ght now ms prohatis What well thy 


‘ry sPhvuk! f | hw fule fT ;* ,* A meds ax hw ac our me ite |v ‘ \A 1 Prc 
nont We ar astanil, presecd ; nomeacwiet Mac ie broken apart’ It ms possible that 
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“ants to deaxtiiw what «a desecrate a " wtces. meght have ercatet reraseMlitiecs Of aticcteme thx 
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Poriinians tor ansucrs. for promrnecs a is 

i i. ’ ’ Ing at ‘ teh 5! 7. a.) 


personally rs hadly treated by the med | * Defense Industry Affected by Budget Cuts 


‘ at a ’ ‘ire fart | ‘ ' | _ | 2 _~_—— Budect — 


ch ‘ Tc awwrns ahi 1} 
sues and Giflcsent cartics off ¢ - i Stahholen DAIGENS NYHETER 
‘ ’ Wu Jini 
Ing yr 64h aries fe s thal ‘ | ’ ’ 
“TuIInS were Proader fot « ' - ’ *" 
at a terre Lnoders (lhrman artn k Dectome Nim miing Frozen | 
In the feowk ¢ oe n the pron hes “s | 
ong road hove te mats} po with (Hof Paley P - leat Dreteonms Viinister Rovine ( arisen recaoned sup 
(aresson never beard (lof Pale , ' ; mort om fees ctiort to reform the muictary trom I sheral 
conmtrars to what the former fina: ry they kk i tol Part detens caperi Hans | mndiMad during breday 6 
Feldt save om bes new hood Rikwdlag dehate concerning overall defemse activ rtees 
aur ne ihe 1VNI i fracal \ecar 
i. arisscw MI ' ching simatt? i} a Ti : 
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Rik ucdag ect capenditures for the military defense on neat 


. 


}(Quetations fre, beet| os hedect at $1. helen kronor hascd on the rate of 





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4? 7 ; ivy Z 4 _ 
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. -? J > . j 
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7 sv ; rPie jis KK if ‘7 
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. i? : 7 i? ; ; ; 
mews od according to observers 
* J : Pia if 7 j . 
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| ey ' th ry at "Y ‘i rise af : +. q : 
“tal democracy aelli fh ' hang ' : in 5» mt ctirawe ntimng Matement the nonsantalist members of 
thinking to quality thinking ‘teh W i how the Defense Committee capressed concert f the cred: 
entering a phaw abet A ' ; , Proolit f military planning In the abecnce of  pevietocal 
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ma it? nul Pv. neg t* —ye™ if by ry 1 ‘ 7 ’ " 4 rut -~t otal wilt . hry (aus ¢ wn af matrin 7 ms 





38 NORDIC COUNTRIES 


4 tougher political reaction 1s expected on 14 June when 
Commander in Chief Bengt Gustafsson will present his 
plans for the comine five years. 


If defense appropriations remain unchanged. the Army 
must reduce its military organization by about 10 bri- 
gades (one brigade has approximately 5,000 soldiers). 
One fourth of all miliary employees, about 10,000 out of 
40.000, will be dismissed before 1995 unless the military 
receives more money, according to the commander in 
chief. Hardest hit will be the Army. which would lose 
five to seven regiments. The Air Force would lose three 
or four groups and the Navy would lay off 40 percent of 
its staff and administrative employees. according to the 
commander in chief. 


To maintain the present level, the commander in chief 
wants a lump sum of 3 billion kronor, plus a real annual 
growth rate of 3 percent in military spending. 


18 Brigades Remaining 


Afier Friday's resolution in the Riksdag. there will be 18 
brigades remaining, which 1s the number that Army chief 
Lieutenant General Ake Sagren has said 1s the “absolute 
minimum.” Thus, the number of army brigades will have 
dropped by 11 since the 1987 defense resolution and the 
decision has been made to eliminate three regiments. 


The Svea Engineer Regiment, ING | in Sodertalye, will have 
to continue under the one-year defense resolution. The 
United Nations school will not be moved to Kungsangen 
until the entire peacetime organization of the Army has 
been reevaluated before next year's defense resolution 


“[t 1s time tor other parties, as well, to realize that quality 
must be placed above quantity.” said Kerstin Ekman of 
the Liberal Party. who 1s leaving her post afier 12 years 
on the Defense Committee. The Liberal Party has called 
on the commander in chief to come up with an alterna- 
tive including “significant modernization” of approxs- 
mately half the army brigades 


“Clearly. one condition for this 1s that the peacetime 
organization be reduced and that maintenance on older 
materie! be limited.” Kerstin Ekman said 


The chairman of the Defense Commitice. Moderate 
member of parhament Arne Andersson from Ljung. 1s 
not ready to make cuts in the Army in order to rarse the 
quality of what remains 


“We cannot continuc, as we are doing now, to close 
down or move units without knowing why. We must be 
able to say that these actions are determined by the 
long-range decisions we have made with regard to the 
military organization.” Andersson said 


FBIS-WEU-91-122 
25 June 1991 


* Exports Also Hurt 


YIENO0630B Stockholm DAGENS NYHETER 
in Swedish 25 May 91 p 30 


{Unattributed article: “Military Makes Cuts] 


[Text] The world’s military expenditures dropped by 5 
percent in 1990, the first year after the end of the Cold 
War. The main reason 1s that the United States and the 
Soviet Union have reduced their military expenditures. 


This was stated by the Stockholm International Peace 
Research Institute, SIPRI. in its annual report. 


Despite the reduction, global military spending last year 
amounted to $950 billion. The Soviet Union and the 
United States accounted for 60 percent of these expen- 
ditures, but at the same time they reduced their spending 
by 10 and 6 percent, respectively. 


This year SIPRI 1s celebrating its 25th anniversary, while 
Walter Stutzle of Germany ts stepping down as head of 
the organization after five years and he 1s returning to his 
homeland to work as a journalist. 


Restraint Despite Progress 


There are now over 30 armed conflicts throughout the 
world. Even though progress in Europe during 1990 
gives us cause for satisfaction, developments in other 
parts of the world must prevent us from being Eurocen- 
tric or cuphori.. The war in the Persian Gulf 1s the most 
striking evidence of this, Stutzle wrote in his introduc- 
tion to the annual report. 


There 1s no peace within reach that would cause us to 
stop or even pause in our research, he said. The need to 
inform the public 1s greater than ever. 


During the carly stages of the end of the Cold War, 
economic security has become just as important as other 
security interests, according to the SIPRI researchers. 
The debt crisis has become a symbol of economic 
uncertainty. This conflict must be solved in the interest 
of world peace. 


Heavy Debt Burden 


Last year the debtor nations owed $1.4 trillion. For 
many Third World nations, this means that interest and 
fees on their debt plus military spending cats up 40 to 80 
percent of their governments total revenues. 


The annual report states that international arms exports 
have dechined. A list of the world’s 100 largest arms 
manufacturers includes five Swedish companies: Nobel. 
Bofors, FFV. Enecsson, and Saab Scania. 


SIPRI points out in its annual report that nuclear testing 
has been reduced significantly. Only China has increased 
iis testing 





FBIS-WEL-91-122 
25 June 1991 


Eighteen nuclear detonations were detected last year. 
There were eight in the United States, six in France, and 
two in China. The Soviet Union and Great Britain 
conducted one test each. 


* Navy Reducing Acquisitions 
91EN0630C Stockholm DAGENS NYHETER 
in Swedish 17 May 91 p6 


{Anders Ohman article: “Navy Can Be Forced To Cut 
Back™} 


[Text] The Navy must reduce its forces by about one 
third, from 6,000 to 4,000 employees, during the coming 
years if the 1992 defense resolution requires an 
unchanged level of spending. One thousand four hun- 
dred positions must be eliminated and 600 positions 
could disappear by natural attrition. 


“We cannot become more watered down. If we are 
forced to continue with a lower budget, then yobs must be 
eliminated,” Navy chief Vice Admiral Dick Borjesson 
said on Thursday. 


The naval chief's statement may be seen on the back- 
ground of Friday's Riksdag debate over the provisional 
one-year defense resolution that resulted from the cap- 
sizing of the Defense Committee in October. 


In June Commander in Chief Bengt Gustafsson will 
present his plan for the next five years. The commander 
in chief is calling for a one-time lump sum of 3 billion 
kronor, plus a 3-percent real increase annually in order 
to maintain the present level of the military. The com- 
mander in chief has warned that the Navy would have to 
reduce the number of its surface vessels from 60 to 40 
and the number of submarines from |2 to 10 if the level 
of spending remains unchanged. 


Seeking Other Ways 


On problem for the naval chief, in his role as employer, 
1S to create a system with a different age structure. with 
more 20 to 40-year-olds who can handle active service 
and fewer 40 to 60-year-olds. A submarine crew, for 
example, serves about 2.000 hours per year—a 
demanding task. 


“Military personnel cannot simply be dismissed. We 
must find other ways.” said Commander Gustaf Taube. 
personnel director for the Navy. 


The Navy has had 1.4 billion kronor in additional 
expenditures since the last fiscal year, in the form of sales 
tax, the effects of tax reform, delayed military resolu- 
tions, and other price hikes. With the same money as in 
last year’s budget, there will be less money left over for 
new materiel. Of the total military defense expenditures 
of just over 29 billion kronor for the year 1990-91. the 
Navy is responsible for just over 5 billion kronor. 


NORDIC COUNTRIES ” 


Stretches of Coast in Danger 


If the new “Submarine 90” 1s paid for within the budget, 
then all new investments in ships and other systems will 
be frozen for five years. Seven of the Coastal Antillery’s 
19 fixed artillery units must be mothballed. 


“The next step would be for us to abandon certain 
stretches of coastline.” the naval chief said. 


This would mean that the Navy would be forced to 
abandon an old principle. namely that of having a 
certain amount of control over every stretch of our 
approximately 2.700 km long coastline. Sweden has the 
longest coast on the Baltsc Sea. Goteborg 1s in danger on 
the west coast and Harnosand on the Norrland coast. 
Gotland 1s also being discussed. 


For the Coastal Navy, an unchanged budget would 
mean, in the long run, that the number of missile ships in 
its surface attack system would be reduced from 18 to 12. 
Under the best circumstances, |2 of its 16 patrol boats 
could be modernized and one division consisting of four 
patrol boats would be eliminated. The 12 submarines 
could remain, but the future number is uncertain. 


The East Coast Naval Command has warned that 400 
positions must be eliminated during the coming years on 
Musko in Stockholm’s southern archipelago and on 
Rindo near Vaxholm. 


* Arms Maker Cutting Jobs 


YE NO0630D Stockholm DAGENS NYHETER 
in Swedish 31 May 91 p 34 


[Unattributed article: “Swedish Ordnance Gives Notice 
To 120°] 


[Text] On Thursday the new defense firm Swedish 
Ordnance made its first layoffs since the merger of 
Bofors and FFV Ordnance. 


Notice was given to 120 office workers at the former 
FFV Ordnance headquarters in Eskilstuna. Additional 
layoffs will occur 1m late June. 


The next step will be production cuts. Management 
would not say how great these cuts would be. 


Layoffs in late June will affect both production and 
office workers, according to public relations director 
Borjye Johansson 


* Political Apathy Among Youth Said Growing 
YIENOGISD Stockholm DAGENS NYHETER 
in Swedish 8 May 91 p 20 


[Claes-Goran Kyellander article: “Young People Desert 
Parties; Low Scores Overall—More Ignore Elections” } 


[Text] Another poll confirms that young people have 
little faith in party politics. Without exception, parties 





4 NORDIC COUNTRIES 


and political authorities get low scores from young 
people. More and more refrain from participating in 
elections. 


The study was made by two sociologists in Goteborg, Jan 
Carle and Per Sjostrand, on behalf of the State Youth 
Council. They mailed a questionnaire to 900 young 
people, 16 to 24 years of age, in Goteborg, Jonkoping, 
and Stromsund during April-June last year. 


The response was not great, only 466 (52 percent) replied 
to some part of the questions. Among those 24 years of 
age, more than 56 percent did not respond. 


Despite this, the investigators feel that it 1s possible to draw 
fairly certain conclusions from the material. They even 
assert that it can be concluded from the study “that democ- 
racy must change its clothes if it is going to survive.” 


Parties Score Low 


What is indisputable in the study is, among other things. 
that election participation is decreasing more among 
young people than among the rest of the population. 
Young people also give very low scores to political 
voices. On a scale of | to S$, the Liberal Party received the 
highest average score of 2.79 and the Christian Demo- 
cratic Coalition Party the lowest with 1.9. 


The evaluation of political authorities also scores very 
low: 2.16 for the government, 2.36 for local politics and 
2.41 for the Riksdag. 


FBIS-WEL-91-122 
25 June 1991 


Other authorities score somewhat higher overall, with 
schools, police and social security at the top with an 
average score of 3.0. 


In order to make a comparison, the investigators 
included questions about the one-issue organizations 
Amnesty and Greenpeace. They received an average 
score of 4.2 and 4.31 respectively. 


Environmental Interest 


When the young people were allowed to mention some 
important social issues on their own, the environment 
constituted 77 percent of the replies and consequently, was 
more than four times more common than any other subject. 


Interest in influencing the development of environ- 
mental policies or other rssues by actually doing the work 
18 limited, however. Of the 300 who replied, more than 
one-fourth chose to say that they do not know or cannot 
do anything. Only 8 percent of these 300, who must be 
considered to be somewhat more active than the 600 
who did not reply, indicate that active participation in a 
political party or alliance would be a valid alternative 


Nenvoters aged 18-21. In 1982: 14 percent men, 9 
percent women. In 1985: 12 percent men, 11 percent 
women. In 1988: 26 percent men, 13 percent women. 


Nonvoters aged 21-24. In 1982: 12 percent men, 8 
percent women. In 1985: 17 percent men, 13 percent 
women. In 1988: 30 percent men, 19 percent women. 


Nonvoters all ages. In 1982: 8 percent men, 7 percent 
women. In 1985: 8 percent men, 7 percent women. In 
1988: 16 percent men, 13 percent women. 





FBIS-WEL -91-122 
25 June 1991 


Iranian Delegation Pays Official Visit to Athens 
LD2406204691 Tehran IRNA in English 1124 GMT 
24 Jun 91 


[Text] Athens, June 24, IRNA—A 24-member Iranian 
delegation, led by the minister of housing and urban 
development, Serayeddin Kazeruni, arrived in Athens 
Monday for a 5-day visit to boost economic and trade 
tees with Greece. Greeting the Iranian delegation at the 
airport, Greek Minister of Industry, Energy and tech- 
nology Stavros Dhimas described Kazeruni as a “good 
friend of Greece™ and noted that this was his second visit 
in six months to Athens. 


Pointing to a series of high-level exchange visits between 
Greece and the Islamic Republic of Iran during the last 
twelve months, Dhimas said the contacts had led to “very 
significant results” in economic and trade sectors. Greece's 
exports to Iran, had increased by four-fold last year im 
comparison with 1989, the Greek munuster told IRNA. 


Kazeruni, expressing happiness over his second trip to 
Greece, said the large delegation of experts accompa- 
nying him underlined that there was ample room for 
expansion and development of relations between the two 
countnes. He said the ground has been well-prepared for 
Strengthening of economic and political ties between 
Athens and Tehran. “I believe that Greece 1s one of those 
countnes that has all the conditions for expansion of 
bilateral relatvons.” Kazerun: said. 


The jount Iramian-Greek commussion 1s to begin talks 
Monday afternoon to promote cooperation in a wide 
range of sectors including shipping. oil, tourism, con- 
struction, housing. cic. The two countries are expected to 
sign a civil aviation agreement and a protocol on eco- 
nomic cooperation during the talks. A Greek Foreign 
Ministry source told IRNA that Greece will also 
announce some positive developments in the issuing of 
visas to Iranians 


Kazerum will meet Greek Prime Minister Konstandinos 
Mitsotakis, President of the Parliament Athanasios Tsal- 
daris, Foreign Minister Andomos Samaras and other 
ministers and officials during his visit. 


The Iranian minister 1s accompanied by the chairman of 
the Majlis (parliament) Housing and Urban Develop- 
ment Commission, Gholam-Ali Shahraki, deputy min- 
ister for housing and urban development, Mohammad 
Ali Kamrava, deputy minister of roads and transporta- 
tron, Ali Akbar Agha and the director general for 
Western Europe in the Ministry of Foreign Affairs. 
Hamid Reza Asefi 


GREECE 4 


Greet officials note that bilateral tics with Iran have 


taken a forward leap. “Everything ts going very well 
between our two countnes,” a Greek official told IRNA. 


Greece and Iran signed an agreement of mutual under- 
standing during Kazeruni’s last visit to Greece in 
December 1990. Earlier Stavros Dhimas had paid a visit 
to Tehran to hold economic and trade talks. 


Last november the Greek Government signed its first 
State-to- state deal with Iran to purchase !.7 million 
tonnes of crude oil. 


Greek Foreign Minister Andomos Samaras paid a visit 
to Tehran last March. Tehran Mayor Golam-Hoseyn 
Karbaschi last week held 2- days of talks with his 
Athenian counterpart Andonios Tritsss and other Greek 
officials on issues related with environment, pollution, 
city planning and traffic. 


A draft for a memorandum of understanding was pre- 
pared to be signed by the two mayors. 


Trade, Economic Ties Viewed 


LD2406204791 Tehran IRNA in English 1522 GMT 
24 Jun 91 


[Text] Athens, June 24, IRNA—The Greek Government 
has decided to rssue about | 000 tourist visas to Iranians 
per month following the expansion and strengthening of 
bilateral ties. an Iranian diplomatic source told IRNA. 


Meanwhile. the first plenary session of the Iranian-Greek 
joint commission, headed by the Iranian minister of 
housing and urban development, Serayeddin Kazeruni, 
and Greek minister for industry, energy and technology, 
Stavros Dhimas. met Monday and discussed ways to 
boost trade and economic ties. 


Kazeruni arrived Monday at the head of a 24-member 
delegation for a S-day visit armed at expanding eco- 
nomic and political relations between Greece and the 
Islamic Republic of Iran. 


The Granting of Greek visas to Iranians would result in 
the resumption of the weekly Iran-Air flight to Athens, 


suspended last year duc to lack of passengers, an Iran-Air 
official told IRNA. 


Cooperation Agreement Signed With Albania 
NC2506082291 Athens Ellinithi Radhiofonia Radio 
Network in Greek 1800 GMT 24 Jun 9/1 


[Text] Alternate Commerce Minister Sotirnos Khatz- 
gakis and his Albanian counterpart, (Ubi Sabiri), who is 
in Athens, signed a memorandum of trade and financial 
cooperation between Greece and Albania. Greeece 
granted $20 million in credits from Greek banks to the 
neighboring country 








42 IURKEY 


Article Examines U.S. Involvement in Cyprus 


NC2506085791 Istanbul MILLIYVET in Turkess 
21 Jun 91 pp? 


[Professor Mumtaz Soysal column: “Involvement | 


[Excerpts] Turkish Foreign Minister Ahmet Kurtcebe 
Alptemocin’s reaction to US. Secretary of State James 
Baker's letter was both delicate and very serious in 
various respects. Of course. the proverb “For an intel 
gent man a mere hint 1s enough. but for an insensitive 
person loud remarks are in vain™ should be kept un mind 


[passage omitted] 


Responding to James Baker's letter. which began with 
the words “Dear Ahmet.” with a leticr that began with 
the words “Mr. Secretary of State” was a polite but 
effective way to set the record straight and verify th 
level of sincerity 


Resterating the Turkish side's stand on the ( \prus 
problem in response to the suggestrons which called | 
“concessions on land” and which said “a tormula should 
be found to hold a conference that will not harm the lega! 
state of the Republic of Cyprus. a formula which will 
enable Yeoryios Vasiliou and Rauf Denktas to sit at the 
negotiating table with Turgut (zal and Konsiandimos 
Mitsotakis” was a polite way of saying “You should 
learn if vou do not know.” 


Nevertheless, a number of things cannot be cxaplarned 
with a polite approach. For example. it seems that unless 
the questions “What nght do you have to interfere mm thes 
problem”? What nght do you have to move to find a 
solution to the problem or to umpose undesirable tor 

mulas on the sides concerned” are asked in a resolut 

way, foreign interference will be maintained and gradu 
ally strengthened 


The United States is acting as a great power which has 
decided to resolve all the problems im the world. It ha 
recently moved to have the Cyprus problem resolved as 
well. In other words, 11 has assumed the responsiiity of 
realizing the formulas that have been insidious!) drawn 
up by Britain 


The foreign powers are now moving to have the nica of 
a “quadripartite summit” realized. an idea which has 
been presented by President Turgut (ival Howeve: 
arranging the protocol requirements ota quadrnip tits 


summit 1s not casy. Who wall sit at the summr! tabk 


It will be naive to capect any result from a summer 
mecting on Cyprus unless it 1s attended by four states 

that 1s, the Turkish Cypriot State mn northern © yprus. the 
Greek Cypriot State in southern Cyprus. Turke, and 


Greece. The first two states should be represented iy 
Rauf Denktas and Yeoryios Vasilrou respectively. Thies 
would not be wrong. Although a parhamentary system 
exists in the Turkish Republic of Northern © yprus. the 
Turkish Cypriot Republican Assembly has empowered 


FBIS-WEL -91-122 
25 June 1991 


Denktas to conduct negotiations on Cyprus. A presiden- 
casts om southern Cyprus and Yeoryios 


V asilnou 18 the person 


lial Ssysten 


in chares« 


The actual problem the United States wrshes to resolve ts 
between Denktas and Vasihou. If Vasislou attends a 
summit om the capacits of a “presedent.” then Denktas 
will also attend mn a semilar capacity. Those who have 
been talking about “the establishment of a federation 
hased on polit Poquatit however, have not yet been 


able to agres thes pornt: Vasslhou has claamed that he 
is “the head 1 (vprus and Denktas 1s a com- 

What ditterence would u make i others. 
particularly B \()val were to agree on a solunon if 
Denktas | Vasil inable to resolve their prob- 


i Slal 


munai nad 


Mistakes in Policy Toward Cyprus Examined 


\i MIGEIOT It NAY DIN on Turkish 


1Protessor Haluk lt iman coluny VW ho Crave Thus Task 


[Excerpt] [passage omitted] S ral crcles on Ankara are 
ngton has adopted a 
wishes. and 

lurkish Cyprots”” 
approach has been 
mistakes made by the 
als \ avible tor Turkey's foremgn policy 
The empr the Bush admunrstration to the 


reported! ‘ ceriny \! VW, 
poles A Tits nf] 1s. Ww ‘ 

apeclations lurk mi 1 
t ndoubted Washingto 


prompted | y it 


approach 


ctlect that Tur TEL lo pressure on the question of 
lana f ‘ & € yprots who will be 
allowes hen &« .prus and that Ankara 


; ynil mit comoesspons on the 


‘oO proh hates as f hak as President Turgut 
tia visi } { States In hes talks woth 
President Bus (amp! d. Presedent Oval intormed 
hes Thos Hooter lurkesh (© vpreots will not 
make cor ons on the princeples of “broommunality.” 

mvonal 1. qualit and “maintenance of 

Purkes $s ctlective guarant \ hys was not enough, 
Forcen Moinmter Kurtcebe Alptemocin addressed a 
letter to tS. Secretary of State James Baker to renerate 
ifs 4 ‘f nt last mont 
Well. rf the case has been presented on thes wav. then would 
it not be natu draw 1! nclusson that Turkey and the 
Turkis! pr prepared to make concessions on 

rswhich ares hod with these principles” Why was 


it not disclosed by the Tu at the tome thal “a 
Signitemcani cna ihe percentage of land in ¢ yprus is 
impossible trom the pont of view of securtty and ecconomi 


RIS) Sick 


viabelit the witlement of laree number of Greek 
( ypriots on northern C vprus, whch well force the principles 
of bizonality ar mmunality to remain only on paper, 1s 
out of the question, and the problems can hx resolved as a 


whole only through negotiatoons between the two commu- 


nitic { yor 





FBIS-WEL -91-122 
25 June 1991 


Furthermore. the proposals tor 7 


seven-parly conicrence. and [ 
after Turkes called tor a juadripa 
Cyprus. Why did Turkeys tcel tt 
Quadripartite conter al ' 


by the two communities in | 


the United Natrons to have tt nro n 
not occur to the officals “bho are resp 
kevy’s foreign poli’ tna it’ proj 
the intention of displavine eo 


search tor a new way t 


Foreign policy cant 
mentality thal “something should phe d 
appearance. What 
18 the outcome Of this mentality | 
told who has asked 
Cyprus problen 


“uc Nas i 


ihe ft lcd ‘N 


Kurdistan Workers’ Party Militant ¢ 
VO DSOGUR R597 Jar Wi RR] 

22 Jun 9! f 2 

[Text] Divarbakir, (HE RRIVEI 
Party of Kurdistan 
and transterred to southeastern 4 
known by his al 
malitant in the armed rand nw 
were killed in rural ar 
have been involved in man 
as well 


a Lecnect. r ' i 


Kanat mercilessis killed childs aor 
people during the massac arned out 
PKK in 1987 He 
in Istanbu! Alth 
fication papers his | 
established his identit,.5 Kanat ther 

activities he was involved in the 7 

detail the blood, rands | TTC it 
Anatolia and admitted tt 
ned out in Istanbul. Hes revelat t 
he tracked the PAK m) 
prison after picading guiity in ord 


“JS ATT cg « ne a 
weh he was arr d 


VRNORS i? 


admitted killing Sahin Donn i form 


"Gal vA , | 


Committee member 


PARK activi 


have rem ne 


Kanat conducted many 
ever, he 1s reported t 
time as a resull of a 
PARK It has been learned that |! it 
southeastern Anato : 
pomt out the arcas 


ia uMmect 


,? ’ 


aditference ‘ nuit 


( aptured 


NEFWS AC, 


Alaattin Kanal. a leading ' int of the 


IURKEY 


* General Manager on Opening Banks in Germany 


YIESO-30B Istantul DUNY A 
[Interview with Salahattin Tor 1) 
Bank's general director in Turt 
place and date nol giver | 


Germany | 


43 


‘Excerpts} Frankturi—Salahattun Tozan. for two years 
Ziraat Bank branch director and now general director of 
the Deutsche-Turkische Bank which was formed as a 
(serman DG; Bank-Ziraat Bank partnership. said. “Turk- 
ish banks are very successful un Germany while Amer- 

an and Britush banks are closing.” Noting that banks in 
(sermans go through four checks and those which lose 
mones three sears in a row are closed. Tozan said. 

Turkish banking got a good grade im Germany.” Our 
nterview with Tozan tollows 


(Pursun}] What kind of development did the Ziraat Bank 
Frankfurt Branch have from the tyme ut was formed in 1987? 


‘Tozan|] What I saw when | started working at this 
branch mm Grermany was this: Hardly anybody came to 
ir branch Our location was wrong. [passage omitted] 


This made me very unhappy at first 

We launched as big an advertizing campaign as we could 
is Soon as I started in the position. And customers slowly 
started coming to us. My basic goal was to show Turkish 
that the, had a bank and to convey trust, 
hecause especially when you are a bank with only one 
hranch it 1s ompossible to earn a lot of money on private 
We worked very actively in the 
markets and strengthened our bank structure in 
this way 


’ ; ‘ Mer 


persona: accounts 


mone, 


We Bought, Sold Money 


Mores | belreve we were. on fact. very helpful to all 
sincere Lurkish businessmen. Our largest carnings were 
in the moneys market. We bought a lot of money from 


and sold it to other banks. and this led to 
profits for /iraat Bank and Turkey. because we 
obtained the moneys cheaper because we got i on the 
market But 1 costs more. 1s more expensive if 
irkeys and buy moneys from Germany 


DANS Mer 


hy th 


(eer an 


mu come trom | 


,our branch come out for 1990" Did 
your goals’ 


How did 
acnies 


iPurs in 


van| We were the champion of single-branch banks in 
rmans tor iv According to mys estimate, Ziraat 
Bank's Frankfurt branch 1s among the top 10 banks in 
Turkey by balance sheet total. In Germany. we cannot 
ompare ourselves to Amencan Express. but we had a 


\s 


fine position as a single-branch bank. The French are 
jurte strong. However, we are bigger than the other 
Turkish banks om Germanys. and not just so-so but by 
quite a margin. We are bigger than all the Greek banks 
The French use a different system, not the single-branch 


peration. but by total balance sheet we were ahead of all 
branch banks except the American and 


hanks 


rcien singic 


|Pursun| How was Zr:raat Bank able to reach such a point 


to \ears’ 


| Tozan] First. it rs necessary to have a good dialogue with 


the General Directorate. Also. 1 rs necessary to believe 





“4 TURKEY 


im success and the business. We have. in fact, a very good 
team at the branch. One must admit that. In fact. we 13 
Germans, 10 Turkish-Germans, as | call them. and three 
Turks formed a good team. It is necessary to believe in 
the manager. My colleagues really exhibited this trust. 
But | also allowed cach employee the mitiative he 
needed. That is, everyone here 1s his own boss. More- 
over, only one person has been replaced since | started 
on the job. The truth of the matier 1s there 1s no one who 
cannot do his job when he 1s shown how. My colleagues 
work hard. 


[Pursun] Is « casy for a Turkish bank to enter the 
marketplace from Germany or are there difficulties” 


[Tozan] German authorities at present allow five banks 
as Turkish banks. They are Ziraat, Is Bank, Construction 
and Credit in Dusseldorf, Kreis Bank. and also the newly 
formed Deutsche-Turkische Bank. 


Banks Growing 


Do German authorities worry about the arca’s ability to 
support this many banks’ We say that we have 2 million 
people living here, we can do the job and we are 
successful. Two banks will be side by side when our new 
bank opens, but you will see how our volume will grow 
despite this. Although we had large receipts in 1990 as 
Ziraat Bank, other banks carned moncy also. Business 1s 
even improving, which means that this market can 
support new banks that would come in the future. When 
discussing this with the German authorities, we do 
everything we can to enable more Turkish banks to 
come, because Turkey will ultemately gain. not someone 
else. [passage omitted] 


[Pursun] Can the existence of Turkish banks having 
equal resources with German banks be accepted as 
Turkey's taking a step towards the Common Market” 


[Tozan] We, the Turkish banks, have jomned the Euro- 
pean Economic Community. That 1s, if a Luxembourg 
with a population of 350,000 1s in the EC, then Turkey 
with its 2 million expatriate population 1s also within the 
EC. That is, we do a lot more business and banking. 
Turkey 1s in the EC in practice. There are perhaps a few 
visa problems for the 2 million Turkish citizens. but they 
have the right to hold the job they wish in Germany and 
the right to live where they wish and as long as they wish 


[Pursun}] How involved is the Ziraat Bank branch in 
banking activities in Turkish-German foreign trade rela- 
tions” 


[Tozan] We are considering performing this function by 
means of the Deutsche-Turkische Bank from now on. At 
any rate, weight was given to Turkish-German foreign 
trade banking in particular in the German DG Bank and 
Ziraat Bank agree ~ 
capital to Turkey ins. - 


roormrng the flow of foreign 
Sssible 


FBIS-WEL -91-122 
25 June 1991 


We Have Many Strong Institutions Here 


This +s Ziraat Bank's essential purpose im the pariner- 
ship. It will be seen that thes bank will be mm a very good 
position, not thes year, bul in 1992. We now have a bank 
to be proud of in Germany. German firms and banks 
now feel that they should direct their questions to us if 
they want to do business with Turkey. These are fine 
developments. In fact. we have many strong institutions 
in Germany. The Turkish press 1s making itself felt in 
Germany and we have strong firms. A Turkish doctor 
has appeared, for example. Dr. Yasar Bilgin. who 1s 
forming a Turkish-German Health Foundation that 1s 
successful throughout Germany. These are not activities 
to be be\ittled. 


[Pursun] Who made the proposal to form a joint bank 
with the Germans’ 


[Tozan] We, as Ziraat Bank. made this proposal. lt was 
the ideal of our General Director Ulusoy. It was my job 
to Carry it out and resolve the details along the lines of 
his views. This ss the first partnership that a Turkish 
bank has formed abroad. It 1s nice, too, that it should be 
a State-owned bank. Of course. an awfully strong 
financing ability was needed to be able to do this. 


[Pursun}] How big 1s Ziraat Bank's partner, DG Bank. 
and what kind of bank is 11” 


[Tozan] It 1s at least twice as big as Ziraat Bank, based on its 
balance sheet in Turkish liras. Thes bank has a three-part 
system. At the bottom are the people's banks—Volksbanks. 
then state banks and. at the top. the DG Bank. The DG 
Bank takes care of foreign trade relations and organization 
for all of the Volksbanks, of which | think there are around 
13,000, and the Landesbanks. It 1s the umbrella organiza- 
tion for all of these Volksbanks 


[Pursun] When is the new German-Turkish Bank 
opening for service” 


[Tozan] We will open officially on | July. The buslding. 
furnishings, ctc., are complicted. We will have 23 per- 
sonnel at the end of the first year, and 35 at the end of the 
second year. All of the particulars are already known in 
the minutest detail up to who will take what job at what 
time, and all our preparations are compicte 


[Pursun] Does your branch provide a consultation ser- 
vice for our citizens” 


[Tozan] This 1s possible. However, we will especially 
stress this as a Turkish-Gierman bank. because there will 
be monies for large investmenis and it 1s umportant that 
these monies flow to Turkey. There 1s a need for new 
investments for the opening of new work places im 
Turkey. It 1s no longer our position to say that this 
country should give us moncy so we can make this 
investment. We are now at the pot of saying. “Let them 
come and do business in Turkey and get their moncy.” 





FBIS-WEL -91-122 
25 June 1991 


[Pursun] Where do our banking relations with the East 
bloc stand” 


[Tozan] Turkish firms are active in the castern pari of 
Germany. We are definitely behind them as the Deut- 
sche-Turkische Bank if they need financing. Turkey will 
be Europe's stepping stone im cconomic relations with 
the Soweet Union and East Europe. Turkey 1s the only 
country that senously buys large quantities of goods 
from the Soviets. Many German firms apply to our bank 
in order to sell goods to the Sovict Union and cxpress the 
desire to do business via Turkey as the third party 


German Interest in East Bloc High 


There will be a great deal of business, and Germany has 
a great interest in the East bloc. While Germany retains 
its leadership in the West, ut 1s also the most active 
country im the East. We are very close to Germany tn this 
regard, and Turkey also has the most advanced relations 
with the East bloc. Many countries come and go to the 
Soviet Union, but Ziraat Bank has the only agreement to 
form a joint bank with the Soviets. The Sovict Union 
chose Turkey while many foreign banks were standing in 
line. The people in Turkey are now able to see farther 
ahead and act with more courage. While everyone was 
expecting America, France. or Germany, we. Turkey, 
were able to get thes permit from the Sovicts. It 1s now 
known im Europe that if the Sovicts want to do any 
serious business, they will definitely go through Turkey 
This fact will become even clearer in the years abead 


[Pursun] Do you, as a branch, offer credit to Turkish 
firms mm Turkey’ Do you want to develop this route” 


[Tozan] Our name 1s Ziraat Bank Frankfurt Branch. but 
we are a German bank. We can loan to Turkey or anyone 
who asks. This can take place by means of correspondent 
banks in Turkey. For cxampic. say there 1s a Turkrsh ball 
bearing firm in Turkey that requests credit, We have to 
have a letter of guarantee from a bank in Turkey for us to 
be able to give this firm credit 


TURKEY 4s 


This ss om accordance with German banking law. We 
have done such credit procedures and opened credit for 
firms in Turkey 


We will retain our expertise in thes regard at the Deut- 
sche-Turkische Bank that | now head. The Ziraat Bank 
Frankfurt Branch 1s bound by certain rules. while the 
Deutsche-Turkische Bank 1s independent and will be 
able to do whatever we decide 


[Pursun] How is Turkey perceived from abroad’ What 
will Turkey's place be im the 2000's” 


[Tozan] It has been said for many years that Turkey 1s “a 
geopolitically important country.” | think that Turkey 1s 
becoming ¢cven more important now. Turkey has now 
become very important geopolitically as a matter of 
financing. Take a look around us, at our regron—and | add 
Greece to this also—we are miles ahead of Greece in 
financing. We are im a better position than any of our 
neighbors. We have the potential to get a large portion of the 
business in the USSR. Iran. Iraq, Syria, Bulgaria, Romania, 
and this whole region. And we are now doing so 


[Box, p 8| 
Salahattin Tozan Profile 


Salahattin Tozan was born in Balikesir in 1952. After 
attending the Darussafaka Lycee in Istanbul, he gradu- 
ated form the economics and business administration 
depariment of Bogazici University. He carned his mas- 
ters in banking at Nova University in Fionda in 
America. From 1976 to 1987 he worked at a holding 
company in Turkey. He represented this holding com- 
pany mm America for two years. He was deputy general 
director of Pamuk Bank 1987-89. From 1989 to 1991 he 
served as director the Ziraat Bank branch in Germany 
and 1s now Turkish general director of the Deutsche- 
Turkische Bank, formed as a partnership between the 
Frankfun, Germany DG [expansion not given] Bank 
and the Ziraat Bank. Tozan is marned and speaks 
English and German 

















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