29-30 April General Affairs Council

Date: 08/05/1997

FOREIGN ministers agreed to suspend ministerial meetings with Iran and deny visas to Tehran military and intelligence staff, but stopped short of economic sanctions. They also cleared the way for the return of EU ambassadors to Tehran. The earlier suspension of the EU's critical dialogue with Tehran was confirmed, although Germany and France still advocated constructive relations. The EU sought support for its position from the 11 countries applying for Union membership and members of the European Free Trade Association and the European Economic Area.

GREECE maintained its block on EU financial aid to Turkey worth 375 million ecu, due under the EU-Turkey customs union, arguing that it could not sanction support to a country that remained a military threat. Nevertheless, Athens agreed the following day to set up a panel with Ankara to settle their disputes in the Aegean Sea. EU foreign ministers told their Turkish counterpart Tansu Çiller that her country could, in principle, one day become a Union member, but stressed the obstacles which remained.

DESPITE vigorous protests from Portugal, foreign ministers agreed to show more flexibility in Union textile quotas. Under the new rules, excesses or deficits relating to one year's import quota can be counted against the following year, and similarly across textile categories of the same sensitivity.

THE Council declared its satisfaction that Albania seemed to be stabilising and stressed the need for June elections. Ministers supported Western European Union and Council of Europe plans to support a viable police force in Albania , and the Commission said it was looking into financing their efforts. Ministers asked competent bodies to consider a joint action on the EU's efforts in Albania and noted an Italian proposal for an international conference.

MINISTERS expressed alarm at the situation in Zaïre, calling for an end to hostilities and elections within a year, and an international conference on the region.

DISCREPANCIES were noted between Belarus' claims of democratic standards in letters to the EU and actual events. Ministers warned that cooperation could not proceed under present circumstances and called for change by the end of this month. The Union welcomed the entry into force of the chemical weapons convention on 29 April.

MINISTERS extended trade preferences to Serbia, while stressing the need for real progress towards democracy there. They also welcomed the local elections in Croatia.

POLAND agreed to cut its 22&percent; value added tax on imported citrus fruits to 7&percent;, diffusing a heated dispute between central Europe's leading EU candidate and the Iberian peninsula. Spain had criticised Poland for protecting its home-grown fruits against Union oranges. Polish Prime Minister Wlodzimierz Cimoszewicz had earlier denounced EU pressure, claiming some member states were “playing on their advantage” while Poland awaits the green light for Union membership. Warsaw fears the tax cut will cost it over 50 million ecu a year and hopes for greater access to EU agricultural markets in return.

UNION rules of origin were extended to Poland; ministers welcomed Polish oil price liberalisation and the phase-out of its 3&percent; import surcharge. The Council agreed in principle to a three-year extension of Polish aid to the steel sector, and the two sides stated that they now saw eye-to-eye on the automotive sector.

A PARALLEL meeting with Hungary proved less contentious and paved the way for the country's participation in EU rules of origin. Ministers welcomed both Hungary's imminent participation in Union education and culture programmes, and acknowledged its request for a five-year extension to state aids. Hungary also agreed to align its VAT on citrus fruits with domestic fruits.