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Originally Processed With FOIA(s): FOIA Number: S S FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: George H.W. Bush Presidential Records Collection/Office of Origin: Speechwriting, White House Office of Series: Speech File Backup Files Subseries: Chron Files, 1989-1993 OA/ID Number: 13751 Folder ID Number: 13751-007 Folder Title: European Community Departure Statement 4/11/91 [OA 6897] Stack: Row: Section: Shelf: Position: G 26 21 3 4 staffed Snow/Simon April 8, 1991 Draft One (EC) PRESIDENTIAL REMARKS: E.C. DEPARTURE STATEMENT SOUTH LAWN THURSDAY, APRIL 11, 1991 1:15 P.M. I was delighted to have the opportunity to meet with my [san-TAIR] friends Jacques Santer and Jacques Delors. As part of our mutual > efforts to deepen the US-EC relationship, we have continued our ongoing discussions on a number of important issues. Today, we discussed the situations in the Middle East, in Eastern Europe and in the Soviet Union. We talked about the unrest in Yugoslavia, which greatly concerns all of us. We agreed to continue to encourage the people of Yugoslavia to work out their differences peacefully and through democratic dialogue. We reviewed recent events in the Baltics, the Soviet Union and Eastern and Central Europe. But we also talked about our common ties and aspirations. We value the excellent support we have received from our European friends and allies in the Gulf crisis, and we continue to work with them on what we must do to help create a stable environment to promote peace and prosperity in that region. We had a broad and useful discussion of our views of Europe after the Paris CSCE summit. Of particular interest to us are the EC's plans for greater political and economic union. I reiterated our support for European integration, and our shared interest in the development of a European security and the transatlantic relationship. We reaffirmed our mutual commitment to continuing transatlantic cooperation on issues involving our mutual security, foreign policy and economic interests. We also talked about our hopes for renewed progress on the Uruguay Round. In a world increasingly defined and bound by economic interests, we all have an interest in free and fair trade. An open trading regime would permit each of us to build on our strengths and to take advantage of others' strengths. We all agreed to work for rapid progress on these crucial negotiations. # # # United 9105929 States Department of State Washington, D.C. 20520 2341 April 4, 1991 UNCLASSIFIED MEMORANDUM FOR BRENT SCOWCROFT THE WHITE HOUSE SUBJECT: Recommended Departure Statement by the President on the Occasion of the April 11 Visit of Luxembourg Prime Minister Jacques Santer in his Capacity as EC President and EC Commission President Jacques Delors. Attached is a recommended draft statement for use by the President upon the departure April 11 of Luxembourg Prime Minister Santer and EC Commission President Delors at the end of their Official Working Visit. R.A.LAMANTIS( FAN. Stapleton Roy Executive Secretary UNCLASSIFIED N/A RECOMMENDED DEPARTURE STATEMENT I was delighted to have the opportunity to meet with my friends Jacques Santer and Jacques Delors. As part of our mutual efforts to deepen the US-EC relationship, we have continued our and ongoing discussions on a number of important issues. Europe and in Europe Easteme Swiet (m well as as the Today, we discussed the situation in the Middle East We value Uruguay the excellent support we have received from our European Round the Gulf crisis, and we friends and allies and continue to work with them on what we must do to help create a stable environment to promote peace and prosperity in that region. Additionally, we discussed the situation in Yugoslavia, which greatly concerns all of us. We agreed to continue to encourage the people of Yugoslavia to work out their differences peacefully and through democratic Baltics, the dialogue. We reviewed recent events in the Soviet Union and Eastern and Central Europe. We had a broad and useful discussion of our views of Europe after the Paris CSCE Summit. Of particular interest to us are the EC's plans for greater political and economic union. I reiterated our support for European integration, and our shared interest in the development of a European security identity which strengthens both European security and the transatlantic relationship. We reaffirmed our mutual commitment to continuing transatlantic cooperation on issues involving our mutual security, foreign policy and economic interests. Finally, we reviewed progress on the Uruguay Round. We expressed our commitment to work together in the coming months to make vapid steady progress on these crucial negotiations. Say more me open trading soptem Administration of George Bush, 1990 / Feb. 27 Statement by Press Secretary Fitzwater Message to the Senate Transmitting the on the White House Conference on Algeria-United States Consular Science and Economics Research Convention Related to Global Change February 27, 1990 February 26, 1990 To the Senate of the United States: President Bush today invited a number of I am transmitting, for the Senate's advice countries, the European Community, and and consent to ratification, the Consular the Organization of Economic Cooperation Convention between the United States of and Development (OECD) to send official America and the Democratic and Popular delegations to a White House Conference Republic of Algeria signed at Washington on Science and Economics Research Relat- on January 12, 1989. I am also transmitting, ed to Global Change. The Conference will for the information of the Senate, the be held in Washington, DC, April 17-18, report of the Department of State with re- 1990. spect to the convention. The signing of this convention is a signifi- The President announced his intention to cant step in the process of enhancing and host this Conference during his meeting broadening the relationship between the with President Gorbachev and again re- United States and Algeria. There currently cently in a speech to the United Nations does not exist a bilateral agreement on con- Intergovernmental Panel on Climate sular relations between the two countries. Change. The convention sets forth clear obligations with respect to matters such as notification The Conference will be devoted to science of consular officers of the arrest and deten- and economics issues relevant to policy on tion of nationals of their country and pro- global environmental issues, including tection of the rights and interests of nation- climate change. It is designed to substantially als of their country. enhance and broaden international under- The people of the United States and Alge- standing of the important science and ria have a tradition of friendship and coop- economics research issues related to global eration. I welcome the opportunity through change. this consular convention to promote the The Conference will also assist in framing good relations between the two countries. I a strategy for implementing a joint inter- recommend the Senate give early and fa- national understanding of this science and vorable consideration to the convention and economics research effort, and linking that give its advice and consent to ratification. knowledge to the policy process both nation- George Bush ally and internationally. The administration The White House, considers the Conference a vital next step in February 27, 1990. a joint international approach to address possible changes in the global environment. Conference participants have been invit- Remarks Following Discussions With ed to send delegations consisting of their Charles Haughey, Prime Minister of senior scientific, environmental, and eco- Ireland and President of the European Council nomic officials. The President has designat- ed the Director of the Office of Science and February 27, 1990 Technology Policy, Dr. D. Allan Bromley; the Chairman of the Council of Economic The President. Well, it's been a great pleasure to meet today with Prime Minister Advisers, Dr. Michael Boskin; and the Haughey. The last time we met was almost Chairman of the Council on Environmental a year ago, as we celebrated St. Patrick's Quality, Mr. Michael R. Deland, to serve as Day here at the White House and renewed Cochairmen of this Conference. the shared values and kinship that have 319 Feb. 27 / Administration of George Bush, 1990 bound our two nations together for over And today's meeting takes us forward in 200 years. Nine signers of the Declaration building new structures for the U.S. rela- of Independence proudly claimed Ireland tionship with the Community. We commit- as their ancestral home. And so, it's an ted ourselves to regular meetings between honor to welcome the Taoiseach to Ameri- myself and the President of the EC, to pro- ca's home, designed by an Irishman, I vide overall political guidance for the rela- might add. tionship. We agreed to twice yearly meet- And today the Prime Minister is visiting ings between the EC Foreign Ministers and Washington, though, in another capacity: as our Secretary of State. And we committed the President of the European Council. And ourselves to joint efforts in the war against with the rapid change we're witnessing drugs and our hopes to preserve the global across Eastern Europe and the Soviet environment. Union, the relationship between the United We do not expect perfect agreement be- States and the European Community has tween the United States and the EC on never been more important. every issue, but we do agree that our inher- The Revolution of '89 brought with it ent belief in the value of freedom, democ- new opportunities and challenges, and it is critical that we work to make the strong racy, opportunity binds us together and that bonds between this nation and its European our mutual cooperation can benefit all. And friends even stronger. The Prime Minister we also agree that the historic ties of friend- and I had a productive discussion of the ship between our two countries, the United many issues of great interest to the United States and Ireland, can serve the cause of States, to the EC, to Ireland, including the peace in the international arena. prospect of German unification, regional We're grateful for Ireland's efforts to en- issues around the world; and we touched on courage and enhance U.S.-EC cooperation. Northern Ireland as well. And we also appreciate Ireland's efforts to I was especially interested in the Prime promote economic development, security, Minister's views on the new architecture of reconciliation, and peace in Northern Ire- Europe. He and I agree on the principles land. In a time when all things seem possi- that should guide the design of the new ble, all Americans hope for an end to the Europe. First, we both welcome the pros- conflict that has brought such sadness to pect of overcoming the artificial division of your beautiful land and your wonderful the continent and building a Europe whole people. and free, united by universal values that are Mr. Prime Minister, we wish you God- based on freedom and democracy. And speed on your journey home. The days second, there is no question that Western ahead are exciting ones, full of expectations, solidarity protects stability in this time of and together, they can be days of great co- change and that transatlantic cooperation operation and great progress for all people. now is more important than ever. As I've Thank you, sir, for your leadership. Thank said before, the United States will remain a you for your friendship. And God bless the European power. Third, we both look to United States and Ireland. Thank you, sir. the Conference of Security and Coopera- The Prime Minister. Mr. President, ladies tion in Europe, the CSCE, to play a greater and gentlemen, my visit to Washington role in Europe's future, including guidance takes place at a time of profound interna- for the conduct of truly free elections and tional change. The President and I, in my the transition from planned economies to capacity as President of the European pluralistic systems. Fourth, we believe the Council, discussed U.S.-European Commu- EC must play a vital role in the new nity relations and their future evolution in Europe. the context of the Community's increasing- A more united Europe, able to take its ly important role on the international, polit- rightful place in world affairs, is good for ical, and economic scene. the United States of America. And we'll The President and I agreed, at this time, look for ways to improve our ties to the to strengthen the links between the Euro- Community so a new Atlanticism will be pean Community and the United States. teamed with a new Europe. We agreed for that purpose, as the Presi- 320 Administration of George Bush, 1990 / Feb. 27 dent has said, that a meeting between the The President and I also discussed a U.S. President and each President in office number of bilateral issues, including immi- of the European Council should become a gration, super royalties, passive foreign in- regular feature of the U.S.-European Com- vestment companies, and of course the situ- munity relations, and that one such meeting ation in Northern Ireland. And I greatly should be held each Presidency of the Eu- appreciate the President's deep personal ropean Council. And I'll be recommending concern for the situation in Northern Ire- that to my European colleagues, the heads land and his constant wish to be of any of state or government of the European possible assistance he can in bringing for- Community, immediately on my return. We ward a solution to that intractable and diffi- also agreed that the Foreign Ministers of cult and tragic problem. I expressed my ap- the Community will meet the U.S. Secre- preciation for constructive U.S. interest and tary of State on two occasions a year, at support for Anglo-Irish relations. least. In addition, the European Commis- Mr. President, it has been for me a great sion is taking steps to increase the frequen- pleasure to have had the benefit of talking cy of its formal meetings with the U.S. Cab- to you and receiving the benefit of your inet. This arrangement will give us both a views and your insights into European and, better overall structure and direction to the indeed, international affairs at this very ex- wide variety of existing contacts and discus- citing time for all humanity. Thank you sions, and they will also provide a new very much, indeed. framework for enhanced political and eco- The President. Well, thank you, sir. Well nomic ties between the Community and spoken, and thank you very much. It's a the United States. We are, in fact, building great pleasure to have you here. Holler if a broader bridge across the Atlantic. we can do any more. We also, the President and I, discussed areas for specific cooperation; and we Note: The President spoke at 1:24 p.m. at agreed that the fight against international the South Portico of the White House. Prior drug trafficking and the international move- to their remarks, the President and the ment of drug funds are areas very appropri- Prime Minister met privately in the Oval ate for specific cooperation. We shared Office and with U.S. and Irish officials in common concerns on the need for continu- the Cabinet Room, and then attended a ing efforts to protect the environment in luncheon in the Old Family Dining Room. areas such as global climate change, the de- pletion of the ozone layer, and endangered species. And may I say that I think it's en- tirely appropriate that I, who have set Joint Statement by President-Bush and myself the aim of being of a green Presi- President Charles Haughey of the dency of the European Community, should European Council be having these discussions at this stage February 27, 1990 with President Bush, who has set for him- self the role of environmental President in We meet at a time of historic internation- the United States. al change. Our discussions focused on U.S./ During our meeting, we also reviewed E.C. relations and their future evolution, in developments in central and eastern the context of close transatlantic coopera- Europe; in particular, implications of tion and of the E.C.'s increasingly impor- German unification. The President and I tant role on the international political and agreed that the United States and the Com- economic scene. munity have a pivotal role to play in over- Today's meeting took place against the coming the divisions between East and background of U.S. interest in enhancing its West and in laying the foundations for a relations with the European Community as Europe united in its commitment to peace, outlined in President Bush's speech last prosperity, democracy, and above all a re- May and Secretary of State Baker's speech spect for human rights and fundamental in Berlin in December. The President of freedoms. the European Council expressed the Com- 321 Feb. 27 / Administration of George Bush, 1990 munity's appreciation of the positive atti- commitment to peace, prosperity, democra- Bt tude of the U.S. administration to the Com- cy, and respect for human rights and funda- the munity's role and development. He also mental freedoms. Our meeting today makes this emphasized that the Community and its a valuable contribution to enhancing that into Member States share the U.S. interest in pivotal role. ried developing our relations. Dec: We agreed on the significance of our Note: The joint statement referred to the the meeting for strengthening relations be- Conference on Security and Cooperation in back tween the U.S. and the E.C. We also agreed Europe (CSCE). Of that such meetings between the President have of the United States and the President of of th the European Council should become a reg- fact, ular feature of U.S./E.C. relations and that servi at least one such meeting should be held Remarks Congratulating the Super during each Presidency of the European game Bowl Champion San Francisco 49ers fourt Council. February 27, 1990 secon These meetings will serve to give overall political direction to the further develop- speci The President. Who was it-Yogi [Berra] them ment of consultation and cooperation. used to talk about deja vu all over again. The arrangements will also include twice- Joe Well, here we are, and Barbara and I are yearly meetings between EC Foreign Minis- Mon: just delighted. It seems, really, and the talk ters and the U.S. Secretary of State. We Ther in coming through the line, that only just agreed that such a meeting should take was yesterday it seemed that we celebrated the place in the first half of 1990. agair We see the arrangements discussed today last Super Bowl victory. And now here we in 7 are. So, to Eddie DeBartolo and the staff, as important first steps in an evolving proc- Hous ess towards a new framework for enhanced certainly Coach Seifert and all the players 22 in political and economic ties between the of the 49ers and families, congratulations flu, } E.C. and the U.S. and welcome to the White House. It's a joy win. We both agreed that areas of common to have you here. you interest meriting further examination as You know, when I first heard that this back subjects for practical cooperation should be occasion was in honor of one of the greatest Nc identified. At this stage, we agreed that the victories in American championship history, And fight against international drug trafficking I couldn't help but look around and a red and the international movement of drug wonder: So, where's Buster Douglas? other funds are areas appropriate for specific co- [Laughter] he's operation. The same is true of our continu- But we do have with us the man that I 70 p ing efforts to protect the environment in know all you guys recognize. And I hope all inter areas such as global climate change, the de- of you saw my friend and our new Chair- An pletion of the ozone layer, and endangered man of the President's Council on Physical in or. species. We agreed that there will be fur- Fitness, larger than life himself, but con- to n ther contact at the appropriate levels to fessed that he felt like Danny DeVito stand- tight follow up our discussions on these areas and ing next to these guys. [Laughter] And I'm down to identify other areas of common interest. talking about our friend and a man who is An At our meeting, we also reviewed devel- undertaking a very important job for this While opments in Central and Eastern Europe, in country, heading the President's Fitness attac particular the implications of German unifi- Council, Arnold Schwarzenegger. Arnold, yarda cation. We also discussed the CSCE, and thank you very much for being here. I show the progress towards and prospects for Eu- think Arnold and my old colleague from the And ropean integration. We both agreed that, Congress, the guy sitting next to him-used spoke with their political ideals and common to pitch in the major leagues, Senator Ben stand values, the U.S. and the E.C. have a pivotal Mizell. And we're having a meeting on na- ing t role to play in overcoming the divisions be- tional fitness tomorrow, so you guys be wish tween East and West and in laying the careful. We may need you for a little lead- that foundations for a Europe more united in its ership for the kids in this country. ing fi 322 background European notes Community United States Department of State April 1990 Bureau of Public Affairs PROFILE Organization Principal Organs: Council, Commission, Background Parliament, Court of Justice. Principal Areas of Community Headquarters: Brussels, Belgium. Competence: Internal and external trade, Established: On April 18, 1951, when common industrial and commercial policies, the European Coal and Steel Community agriculture, monetary coordination, (ECSC) Treaty was signed in Paris, and on fisheries, assistance, science and research, March 25, 1957, when the treaties for the the environment, common social and European Economic Community (EEC) and regional policies. the European Atomic Energy Community Budget (1990): $56 billion, financed by (EURATOM) were signed in Rome. a customs duty, a 1.4% value-added tax Purposes: To build foundations for collected on the goods and services peace through economic and political consumed in member countries, and a cooperation and to make possible an percentage donation based on member eventual federation of Europe. countries' gross domestic product. Members: The Six-Belgium, Federal Official Name: Republic of Cermany, France, Italy, European Community (EC) Luxembourg, Netherlands. The Nine-in Trade 1973, Denmark, Ireland, and the United Also referred to as the Imports (1988): Worldwide-$458.6 billion. Kingdom joined the Six. The Ten-on European Communities From US-$79.6 billion (23.7% of US January 1, 1981, Greece joined. The exports). Twelve-Spain and Portugal joined the Ten Exports (1988): Worldwide-$430.8 on January 1, 1986. billion. To US-$84.4 billion (19.6% of EC Official Languages: Danish, Dutch, exports). English, French, German, Greek, Italian, Portuguese, and Spanish. Population (1988): 325 million. EC and US Officials Gross National Product (GNP) (1988): $4.71 trillion. Commission President: Jacques Delors, Average Per Capita GNP (1988): France $14,500. US Representative to the EC: Ambassador Thomas M.T. Niles, 40 Boulevard du Regent, B-1000, Brussels, Belgium; Tel. 32-2-513-4450. EC Representative to the US: Ambassador Andreas Van Agt, 2100 M St., NW, Suite 707, Washington, D.C. 20037; Tel. 202-862-9500. The European Community The EC and the US, 1988 GNP Per Capita GNP ($ trillion) ($ thousand) Denmark 4.9 4.7 19.8 Copenhagen Dublin West Ireland Germany 1.2 U.K. 14.5 *) Amsterdam London Neth. France F.R.G. .9 Bonn Brussels Bel. Italy .8 Luxembourg Paris Lux. U.K. .8 Other France .9 EC US EC US Sources: Organization for Economic Cooperation and Development, and U.S. Council of Economic Advisers. Italy Portugal Madrid Rome Lisbon Spain Athens Greece Boundary representations are not necessarily authoritative. HISTORY transport, and nuclear policies. The federalist attempts to give the Council institutions and policies established by any supranational powers. All decisions Peaceful union of European countries had the treaties provide a framework within were to be made-by-unanimous been a dream for centuries, but not until which the 12 EC members have agreed to agreement of the ministers of each the devastation of World War II was integrate their economies and eventually member state, effectively weakening the unity perceived as a necessity. Postwar consider forming a political union. Council. economic chaos and the descent of what The Brussels Pact of 1948 created the The establishment of an administra- he called the "Iron Curtain" led Winston first postwar European intergovern- tive framework for European economic Churchill to declare in 1946: "We must mental organization. Britain, France, cooperation was stimulated by US create a sort of United States of Europe." Belgium, the Netherlands, and Secretary of State George Marshall's Although they thought that unity was Luxembourg agreed to mutual military offer of vast aid in a joint recovery necessary for the reconstruction of the support and political cooperation. The program. Federalists, led by French continent, national governments military aspects of the pact were quickly Foreign Minister Robert Schuman and remained reluctant to cede any authority overshadowed when the five signatories Jean Monnet (now considered the to a supranational body. joined others in the NATO (North "father" of a united Europe), thought that The primary aim of the Paris and Atlantic Treaty Organization) alliance Europe would never regain its status in Rome treaties establishing the European with the United States. world affairs, effectively solve its Communities (EC) was to remove the In the political sphere, the Council of domestic problems, or be able to protect economic barriers that divided the Europe was organized by the pact itself unless national governments were member countries as the first steps members along with Ireland, Denmark, integrated. They proposed a supra- toward political unity. To accomplish this, Norway, Italy, and Sweden. The Council national authority to make decisions in the treaties call for members to establish was designed to be more than a simple the interest of the whole continent. The a common market, a common customs forum for discussion, but the British and British and the Scandinavians, again tariff, and common economic, agricultural, the Scandinavian Governments thwarted preferring international cooperation 2 rather than formal integration, prevented British ties to its Commonwealth and members of the Commission act indepen- the incorporation of a federal element in its desire to create a larger free trade dently of their governments and of the this new body, the Organization for area, as opposed to a customs union Council; they represent the interests of European Economic Cooperation consisting only of the Six, resulted in the the Community as a whole. (OEEC). The OEEC, established in 1948 United Kingdom rejecting EEC and The Commission's major responsi- and transformed in 1961 into the EURATOM membership. Britain, bility is to oversee the implementation of worldwide Organization for Economic Austria, Denmark, Norway, Portugal, the EC treaties. It initiates EC policy by Cooperation and Development (OECD), Sweden, and Switzerland later formed making proposals and steers its proposals was very effective in channeling US aid the European Free Trade Association through the legislative process. The throughout the continent, but it had no (EFTA). EFTA was designed to boost commissioners also conduct the EC's supranational authority of its own. nonagricultural trade among its members negotiations with nonmember states on Continuing their effort to develop a and to provide a united platform for behalf of the Community. The collection federal European authority, Schuman and relations with the EEC. and disbursement of EC funds is another Monnet proposed establishing the In the 1960s, Commonwealth ties important Commission responsibility. European Coal and Steel Community were becoming less important for Britain, The Commission's independence and its (ECSC) in 1950 "to place the entire and UK economic growth was slower than "right of initiation" of policy account for Franco-German production of coal and the impressive growth rate of the Six. much of its supranational authority. To steel under a common High Authority, in The British, therefore, decided to join the balance that independence, the an organization open to other European Community, even though membership Commission is subject to censure by the countries." The French and German would result in a substantial increase in Parliament, which can force the entire heavy industries urgently needed British food prices. A French veto Commission to resign as a body by a two- rebuilding, and the ECSC would facilitate temporarily blocked British membership, thirds majority vote.¹ A European civil growth as well as make war between the but in 1973, the United Kingdom, service divided into 23 Directorates- two countries "not merely inconceivable Denmark, and Ireland were admitted, General plus Commission services assists but physically impossible." Ratified by creating the EC Nine. The Government the Commission. The Commission the Governments of France, West of Norway also had agreed to accession, president is appointed to a renewable 2- Germany, Italy, Belgium, the Nether- but membership was rejected in a year term by the Council. lands, and Luxembourg (the Six), the referendum. A further enlargement took ECSC began functioning in 1952 and was place on January 1, 1981, when Greece the world's first international organi- joined the Community, making it the EC The Council zation with an integrated federal Ten. The most recent expansion occurred The Council, which has its secretariat in governing body. The High Authority was with the addition of Spain and Portugal Brussels, represents the national empowered to act independently in the on January 1, 1986, creating the current governments of the 12 member states and narrow but important economic fields of EC Twelve. is the primary decisionmaking body of the coal and steel production. The ECSC had Community. The foreign ministers of the limited financial independence, raising member states deal with the most funds through levies on the coal and steel INSTITUTIONS important and wide-reaching topics, while industries and the sale of bonds. more specific decisions are made by the With Europe's immediate defense The three communities-the ECSC, respective councils of the ministers of problem solved by NATO, efforts were EEC, and EURATOM-had separate agriculture, finance, industry, energy, concentrated on political and economic executive commissions and councils of social affairs, and others. The 1987 Single questions. Under the direction of Belgian ministers until their 1967 merger into the European Act created a less restrictive Foreign Minister Paul Henri Spaak, the European Communities; a joint decisionmaking process by allowing most foreign ministers of the Six met to discuss commission and a joint council of voting in the Council by qualified proposals for an integrated economic ministers were then established. The majority, rather than unanimity.2 system and a common structure for the other major EC institutions are the Exceptions include certain health and development of nuclear energy. In 1957, European Parliament, the Court of safety proposals that individual states can the Six agreed to establish the European Justice, and the Economic and Social veto. At the same time, the act mandated Economic Community (the EEC or Committee. an increased role for the European Common Market) and the European Parliament in the decisionmaking process. Atomic Energy Community The various ministerial groups meet (EURATOM). The two treaties formally The Commission monthly. Formal biannual European establishing the new communities to work The Commission, headquartered in Council meetings discuss intra- with the ECSC were signed by the Six in Brussels, is made up of 17 commissioners Community and foreign policy issues. Rome on March 25, 1957. The EEC and appointed by common agreement of the Each country assumes the Council EURATOM began operating in January 12 governments. Each country is presidency for a 6-month term. The 1958. The wide-reaching EEC was given represented, with the largest five— Committee of Permanent Represen- less supranational authority than the France, West Germany, Italy, Spain, and tatives, consisting of member country ECSC, although the economic union was the United Kingdom-supplying two ambassadors to the Community in viewed as a prerequisite for eventual commissioners. According to the treaties, Brussels, assists the Council. political integration. 3 The European Parliament institutions, and individuals also can minary report and then issues a draft contest Commission and Council actions budget for EP approval. The Parliament The European Parliament (EP), the only and member state implementation of EC can amend or reject the budget and is EC institution that directly represents legislation in the Court. The Court responsible for its final adoption. European citizens, has gained a greater resolves conflicts between Community The preliminary EC budget for 1990 role in EC decisionmaking in recent and national laws, and the Justices have is about $56 billion. The largest budget years. The Parliament has significant power over budgetary matters (except played a major role in the process of item, accounting for about two-thirds of removing barriers to the movement of the total, is agricultural expenditures. agricultural spending) because it can goods, services, capital, and people among Other major budget items are energy and amend or reject the budget and approve members. The Court's decisions are industrial programs, research, and its adoption. The Parliament also binding on all parties. Court decisions development assistance to poorer regions considers the Commission's proposals on their way to the Council of Ministers. generally have tended to strengthen EC of the Community, central and Eastern Since 1987, the Parliament also has had institutions and promote integrated EC Europe, and Third World nations. policies. the right to amend or reject certain legislation approved by the Council, The 13 Justices are appointed by the EC member governments and serve TRADE which can overrule the Parliament only by a unanimous vote. The Parliament renewable 6-year terms. Court decisions are reached by a simple majority. All The Customs Union also has gained the right to approve or disapprove applications of nonmember decisions are announced unanimously, but The authors of the EC treaties recognized votes never are announced. The Court countries to join the Community, as well that the economic keystone of unity would sits in Luxembourg. as new association agreements. be a customs union permitting the free The 518 deputies are elected to 5-year The 1987 Single European Act movement of goods, services, capital, and terms. The first direct elections were introduced a new Court of First Instance, people within Western Europe. In 1958, held in 1979. The Parliament was which essentially serves as a lower court. the Community began the difficult In addition, member state courts are enlarged to its present size in January process of eliminating all trade barriers 1986, when 60 members from Spain and obligated to directly enforce the among its members. Ten years later, all 24 members from Portugal took their Community treaties, thus creating a member-to-member duties were seats. The members sit in transnational multi-layered judicial system. abolished, and a common external tariff of political groupings ranging across the the Six was established. By 1977, this political spectrum, including Socialists, The Economic and Social Committee union was extended to include the new Christian Democrats, Liberals, EC members-the United Kingdom, Conservatives, Communists, and Greens. This consultative body of 156 members Denmark, and Ireland. Spain and Many of the Parliament's specialized represents employers and unions as well Portugal, which joined in 1986, must committees have emphasized as special interest groups such as dismantle their customs duties with development of truly "European" policies consumers and farmers. The Committee other EC members before 1992 and must in areas such as the internal market, enables a broad spectrum of interested abolish their quantitative restrictions on energy, industrial restructuring, and producer and consumer groups to be intra-EC trade according to a timetable regional development funding. Direct actively involved in EC decisionmaking. laid down for each. elections ensure full public representation Through a mandatory consultation The common external tariff is a key in the Community, and important tasks process, the Committee submits its element in the customs union. Each EC for the deputies include promoting the opinions to both the Councils of Ministers member charges the same duty on a given Community's work within their and the Commission. import from a nonmember country. constituencies and increasing public Agricultural imports are subject to the support for an integrated Europe. Common Agricultural Policy (CAP). The The Parliament meets monthly in BUDGET CAP places variable levies on agricultural week-long sessions in Strasbourg. The imports to raise their prices to those of EP's Secretariat is located in Luxem- Initially, the EC budget was funded by EC-produced commodities. bourg; most Committee and Political member-state contributions based on Although tariffs have been eliminated Group meetings are held in Brussels. varying percentages of their gross within the Community, several kinds of domestic product (GDP). In 1977, those nontariff barriers still exist. Some contributions were supplemented by member states maintain protectionist The Court of Justice revenue from agricultural levies and measures that the Community has not yet The role of the EC Court of Justice is customs duties on EC imports. The GDP- been able to eliminate entirely, such as based contributions were eliminated in very similar to that of the US Supreme limiting public works contracts and Court. The EC Court is the final 1979, as each state began paying 1% of adopting unilateral technical or safety the value-added tax (VAT) it collected on authority for the interpretation of EC standards that restrict trade. Numerous laws, as embodied in the treaties, manufactured goods. Starting in 1986, health and safety barriers to agricultural the VAT contribution increased to 1.4%. regulations, and directives. Complaints trade still exist. Individual firms and The Commission prepares the about member-state treaty violations may governments can register trade restric- preliminary draft of each year's EC be lodged by other members or by the tion complaints with the Commission, Commission. Member governments, EC budget. The Council discusses the preli- which attempts to eliminate the barriers through binding judicial action. 4 SINGLE MARKET PROGRAM Recently, the EC has made remarkable progress toward achieving a goal it set for itself more than 30 years ago-a unified West European market without national barriers to the movement of goods, services, capital, and people. The 12 EC member states have committed themselves to the historically important policy initiative of creating a single market by the end of 1992. The EC is expected to have adopted most of its single market proposals by that time and to have made significant progress on related efforts toward more complete economic integration. The EC is, to a great extent, still a set of 12 separate markets, with different regulations for banks, insurance compa- nies, medicinal products, lawnmowers, President Bush supports European efforts, led by EC Commission President Jacques and cheese, to name just a few areas. The Delors, to achieve economic and political integration. (White House photo) single market program will create a single set of rules for doing business in Europe. Where EC-wide rules are not practical, External Trade member countries of the two trading the single market will ensure mutual blocs. Only products originating within recognition of other members' regulations In 1988, trade among Community the free-trade area receive preferential so that technical standards and proce- members was $1.24 trillion, while external treatment. EFTA members maintain dures no longer pose barriers to trade trade was $890 billion, accounting for quotas and tariffs on agricultural across national borders. This creates about 16% of world commerce, and mak- products. potentially vast economies of scale and ing the EC the world's largest trading The Community has reached should expand the size and wealth of the unit. Its total imports from third countries in 1988 were $459 billion, roughly the same preferential trade agreements with EC market. amount as that of the United States. Most Turkey, Yugoslavia, and Mediterranean The renewed effort to create a single countries and separately with 68 African, market began in 1985, when member EC imports are raw materials and Caribbean, and Pacific countries. Non- countries approved an ambitious plan unprocessed goods. EC exports, most of preferential agreements have been signed outlining almost 300 legislative proposals. which are processed goods such as with Canada, India, Romania, Sri Lanka, The 1987 Single European Act committed machinery and vehicles, totaled $431 Pakistan, Bangladesh, China, and major government leaders to adhere to the billion in 1988, compared with total US Latin American countries. Most recently, timetable and made passage of legislation exports of $320 billion. the EC has concluded trade and commer- easier. Since then, the EC Commission As provided for in Article 113 of the cial agreements with Poland, Hungary, has finished its work in proposing more Treaty of Rome, the Community operates the German Democratic Republic, the than 90% of the proposals (now 279), and a common commercial policy adhered to by Soviet Union, and Czechoslovakia. the EC Council has adopted more than all member states. The Community's The Community is the United States' half of them into Community law. Mem- trade policy is based on the principles and largest trading partner. In 1989, total ber states must pass legislation to imple- obligations of the General Agreement on US-EC trade was $171.7 billion. The 1989 ment the directives, usually within 2 Tariffs and Trade (GATT) to which all trade balance with the EC was in the US years of final agreement at the EC level. Community members are contracting favor for the first time since 1982. In Difficult areas remain in the single parties. EC countries are active part- 1988, almost 24% of all US exports were market program, notably in attempting to icipants in the current Uruguay Round of purchased by the EC, which, in turn, allow the free movement of people across multilateral trade negotiations, which are provided almost 24% of US imports. national borders and in harmonizing scheduled to be completed with a con- The United States and the EC are policy on indirect taxation. However, cluding conference in Brussels in Decem- each other's most significant source of momentum has been sustained, largely ber 1990. direct investment. By the end of 1988, because most of the European public and In 1972-73, the Community concluded the EC had $194 billion invested in the businesses strongly support the program. free trade agreements with the member United States (the British are the largest When the major proposals are fully states of EFTA-Austria, Finland, foreign investors in America), and the implemented, the Commission will have Iceland, Norway, Sweden, and Switzer- United States had about $127 billion in authority to control large mergers and land. These agreements provide for the the EC. acquisitions; will make a European elimination of barriers to trade on almost company statute available throughout the all industrial products between the Community; will enforce open procure- 5 ment, allowing foreign participation (with EC targets for 1995 which would limit oil some limitations) in all sectors except US Trade With EC, 1989 consumption to 40% of total energy defense; and will provide a host of product consumption and maintain net oil imports and regulatory standards ranging from ($ billion) at less than one-third of total energy containers to automobiles to biotechno- consumption. The Community has an logy. Many, but not all, of these 100 active program of research into alternate standards will be based on existing 86.6 energy sources, including biomass, 85.1 international standards. synthetic fuel, solar, and geothermal Further economic integration beyond development. Nuclear energy also is trade and investment issues is under 80 widely used in certain EC member states, consideration. The Community already but there is intense and growing public has sought or will pursue common policies concern about nuclear safety issues, on environmental protection, immigra- particularly following the Chernobyl tion, labor law, monetary and fiscal issues, accident in the Soviet Union. and law enforcement against narcotics 60 EURATOM, established following the and terrorism. Questions of national first European energy crisis in 1956, is sovereignty have exacerbated tension responsible for the procurement and among some members and EC insti- distribution of nuclear fuels in the tutions. The debate indicates the difficult 40 Community. It also undertakes research course ahead, and it is clear that many of in nuclear development, provides these issues will be decided well after financing for nuclear energy projects, and 1992. exercises safety and security responsi- 20 bilities over member-country facilities. AGRICULTURAL POLICY THE EUROPEAN Instituted in 1962, the Common Agricul- 0 MONETARY SYSTEM tural Policy (CAP) has allowed the EC to US Imports US Exports become more than self-sufficient in many Sources: US Department of Commerce In 1979, the Community inaugurated the agricultural commodities and has European Monetary System (EMS). The provided stable incomes to the European EMS replaced the "snake" in an effort to farming population. The CAP, however, reduce exchange fluctuations. The EMS consumes about two-thirds of the EC An EC budget package adopted in provides for frequent discussions among budget and-through its complicated February 1988, aimed at balancing the central bankers and for intervention in network of protection, price supports, and budget and reducing growth in foreign exchange markets to maintain the subsidies-has created large surpluses of agricultural expenditures over a 4-year value of each EC currency within a many agricultural products. EC export period, to a great extent has removed narrow range vis-a-vis the European subsidies, traditionally used to dispose of agriculture as a contentious internal EC Currency Unit (ECU) and each other some of these surpluses, have helped to issue. The agreement resolved short- currency. All Community members create a distorted and unstable market in term budgetary problems by basically belong to the EMS. However, the United agricultural commodities. Over the years, resorting to supply management Kingdom, Greece, and Portugal do not EC products benefiting from the CAP techniques. Although the package is participate in the system's exchange rate have displaced some US farm exports, reducing somewhat agricultural over- mechanism, which represents a com- particularly grains. supply within the EC and is helping to mitment by the participants to maintain Since the EC already has a single limit new pressures on international their exchange rates within a very agricultural market in many respects, the agricultural markets, it does little to narrow band. The founders of the EMS 1992 program will not have as great an increase the market orientation of EC maintained that exchange rate stability effect as in other areas. The single agriculture. The global reform of was essential to increase trade and also market program aims to harmonize agricultural policies remains an important would provide impetus for better agricultural health rules for animals and US objective and a major task of the coordination of monetary and fiscal plants, thereby reducing barriers that current round of multilateral trade policies. In addition to currency swap have kept the EC's agricultural markets negotiations. arrangements for defense of currency somewhat segmented. As the Commu- parities, the EMS includes a reserve fund. nity eliminates border controls, it must The ECU, a combination of 12 member act on the taxes or subsidies currently ENERGY currencies, is the Community's budget levied on agricultural trade at national and accounting unit. borders. Further monetary harmoniza- The European Community is sensitive to Jacques Delors, the Commission tion is likely to result in the elimination of the need for reducing foreign energy President, has drawn up a three-phase the special agricultural exchange rates dependence, particularly on oil imports, plan for broadening the EMS into an which also have served to protect through conservation and other meas- economic and monetary union (EMU). markets from intra-EC competition. ures. In September 1986, the Council set 6 Under Phase I, all EC governments are committed to join the exchange rate mechanism, and finance ministers and Further Information central bank governors would cooperate These titles are provided as a general indication of material published on the European more closely on policy decisions. Later Community. The Department of State does not endorse unofficial publications. phases of the Delors Plan envisage a central bank and a common currency, but Bromberger, Merry and Serge. Jean Kaiser, Karl et al. The European several EC members, particularly the Monnet and the United States of Community: Progress or Decline? United Kingdom, have opposed aspects of Europe. New York: Coward-McCann London: Royal Institute of Inter- the plan. In 1989, Community leaders Inc., 1969. national Affairs, 1983. decided that on July 1, 1990, the EC will Butler, Sir Michael. Europe-More Than Leonard, Dick. Pocket Guide to the begin implementing Phase I of the Delors a Continent. London: William European Community. London: The Plan. An intergovernmental conference Heinemann, Ltd., 1986. Economist Publications, 1988. Callingaert, Michael. The 1992 Challenge Lodge, Juliet. The European will convene in late 1990 to consider what from Europe: Development of the Community and the Challenge of the changes to the EC treaties would be European Community's Internal Future. London: Pinter Publishers, required for EMU. Treaty changes must Market. Washington, D.C.: National 1989. be approved by all 12 of the member Planning Association, 1988. Monnet, Jean. Memoirs. Richard Mayne countries. Cecchini, Paolo et al. The European (trans.). New York: Doubleday, Challenge-1992: The Benefits of a 1978. Single Market. Brookfield, Vt.: Gower Moss, Joanna. The Lome Conventions POLITICAL COOPERATION Publishing, 1988. and Their Implications for the Europe, Magazine of the European United States. Boulder, Colorado: Coordination of the foreign policies of the Community (monthly). Delegation of Westview Press, 1982. EC members was not included in the the European Communities, Suite de Schoutheete, Philippe. European 707, 2100 M St., NW, Washington, Political Cooperation. Brussels: 2d three treaties but was undertaken D.C. 20037. ed., 1986. voluntarily in 1970. In 1987, European European Community. Completing the Simonian, Haig. The Privileged political cooperation was formalized in the Internal Market (1985 "White Partnership. Oxford: Clarendon Single European Act. Recently, this Paper"). Press, 1985. cooperation has increased to a wider Harris, Simon et al. The Food and Farm Tugendhat, Christopher. Making Sense range of foreign policy issues. Topics Policies of the European Commun- of Europe. New York: Viking, 1986. included under the act are such key areas ity. New York: John Wiley & Sons, US Department of Commerce. EC 1992: as Eastern Europe, the Middle East, 1983. A Commerce Department Analysis Central America, nuclear and conven- Hartley, T.C. The Foundations of of European Community Directives. European Community Law. Oxford: 3 volumes. 1988-90. tional disarmament, and nuclear nonpro- Clarendon Press, 1988. US Department of State. Europe 1992: liferation. A secretariat to administer the Hu, Yao-su. Europe Under Stress: A Business Guide to U.S. act has been established in Brussels. Convergence and Divergence in the Government Resources. January The 12 foreign ministers meet at least European Community. London: 1990. quarterly to discuss political coordination. Buttersworth, 1981. Wallace, Helen et al. Policy-Making in The foreign ministers attempt at these Joint Economic Committee of the US the European Communities. New meetings to coordinate the broad lines of Congress. Europe 1992: Long-Term- York: John Wiley & Sons, 1983. the members' international policies and to Implications for the U.S. Economy. issue joint statements of policy. In addi- April 1989. tion to these formal meetings, the foreign ministers gather informally twice a year, unaccompanied by staff. The ministers also discuss political cooperation during RELATIONS WITH EUROPE industrial and technical standards that the twice-yearly meetings of the Euro- apply in the Community. The two groups pean Council, at which the 12 EC heads of The success of the European Community have agreed to negotiate a closer government meet. has encouraged other countries to seek relationship, to be known as the Euro- The meetings of the foreign ministers membership. Turkey and Austria have pean Economic Space. This may involve are prepared for by the EC Political applied, but the EC has indicated that it EFTA agreement to implement many EC Committee, comprising senior officials will put off consideration of new appli- directives while the EC would give from the 12 foreign ministries, who meet cations until after the completion of the EFTA a role in the development of future monthly to prepare specific issues for single market. In addition, the EC has rules. ministerial discussion. The Political association agreements with Yugoslavia, Although EC countries have long- Committee also meets in New York in Turkey, and Cyprus. EC leaders expect standing political and economic ties with September at the opening of the UN to negotiate association agreements with the countries of Eastern Europe, the EC General Assembly. a number of East European countries in itself only recently has established response to recent developments there. diplomatic relations with most states of Recently, the EC has developed central and Eastern Europe. In 1988, the closer ties with the EFTA countries, EC and the Council of Mutual Economic which already have many of the same Assistance (CEMA), an economic organ- 7 ization of communist countries, agreed to ment in the developing states. The most biannual US-EC summit meetings and to recognize each other. Trade agreements recent agreement (Lome IV) puts greater biannual meetings between the US have been signed with Hungary, Poland, emphasis on market-oriented economic Secretary of State and the 12 EC foreign Czechoslovakia, Romania, Bulgaria, and reform in recipient countries and on ministers. The United States also is the Soviet Union. human rights. About 65% of EC aid goes enhancing its relationship with the In July 1989, the EC Commission was to the ACP states. Since 1978, 40% of European political cooperation process. designated by the seven economic summit ACP exports have gone to the Com- Delegations from the US House of partners to play a coordinating role for munity, which imports about 10% of its Representatives and the European Western assistance to Poland and raw materials from the Lome signatories. Parliament also meet twice a year. Close Hungary. Since then, major political and One innovative aspect of the Lome relationships are further maintained economic reforms taking place throughout Convention is the Stabex system. A kind through the US Mission to the European Eastern Europe have caused a reevalua- of insurance policy against poor trade Communities, headed by an ambassador tion of the Community's relationship to years, Stabex (export receipts stabili- in Brussels, and through the Delegation that region. The EC has been a major zation system) provides currency of the European Communities in contributor of assistance to the region and transfers to countries heavily dependent Washington, D.C., headed by the EC has eased access to its markets for these on a small number of commodities for ambassador. countries. A European Bank for Recon- export earnings in years when export struction and Development has been receipts drop significantly because of poor established to assist economy recovery harvests or low world prices. Lome IV is DIPLOMATIC REPRESENTATION and reform in Eastern Europe. Trade designed to encourage diversification to and investment flows between the EC other crops. The Lome Convention The US Mission to the EC is directed by and Eastern Europe are expected to provides a similar scheme, Sysmin, Ambassador Thomas M.T. Niles and is increase as market forces play a greater to cover mineral export earning losses. located at 40 Boulevard du Regent, B- role in East European economies. The 1000, in Brussels, Belgium; Tel. 32-2-513- United States has worked with the 4450; 846-21336. The EC European Community in mobilizing US-EC RELATIONS Delegation to the United States, headed economic and financial support for the by Ambassador Andreas Van Agt, and its reforming nations in Eastern and central The United States has supported and Information Services Office are at 2100 M Europe. welcomes European efforts to achieve Street, NW, 7th floor, Washington, D.C. economic and political integration. As 20037; Tel. 202-862-9500. The EC Europe moves toward its goal of a Information Services in New York City is THIRD WORLD RELATIONS common internal market, and as its at One Dag Hammarskjold Plaza, 245 institutions for political cooperation East 47th Street, New York, NY 10017; Improving relations with the Third World evolve, the link between the United Tel. 212-371-3804. long has been a high priority for the States and the EC will become even more Community. In addition to its desire to important. The United States wants this contribute to the economic and social transatlantic cooperation to keep pace 1 This action has never been taken. advancement of less developed countries, with European integration and insti- the Community seeks reliable supplies of tutional reform. 2 EC member states have the following votes in the Council: West Germany (10), France (10), Italy primary products and markets for its The United States and the Commun- (10), United Kingdom (10 Spain (8), Belgium (5), exports. The Community has become one ity have a continuing dialogue on all Greece (5), Netherlands (5), Portugal (5), Denmark of the major providers of Third World- political and economic issues of mutual (3), Ireland (3), and Luxembourg (2). Total=76. assistance with programs such as food Qualified majority=54; blocking minority=23. interest, and they engage in direct aid, rural development, and refugee relief. negotiations on trade issues. The US 3 The "snake" was a set of upper and lower limits In 1987, aid disbursements were $1.9 of currency exchange rates; the central banks of the Government is following the progress of participating European-countries pledged to billion, but EC aid commitments have the EC's single market program and is intervene in the currency market to keep the value of been substantially higher in 1988 and working with the European public and their currencies within fixed limits. 1989. The EC program is separate from private sectors to ensure that American 4 The ECU value against the US dollar was $1.21 assistance programs provided by the interests are not discriminated against in at the end of March 1990. During 1989, the average member states. ECU value against the US dollar was $1.10. post-1992 Europe. The United States The Community's most notable seeks a European Community open to accomplishment has been the Lome cooperation with others. Published by the United States Department Convention, a framework for develop- of State Bureau of Public Affairs The US Government consults with Office of Public Communication ment cooperation with 68 African, Washington, D.C. the Commission regularly throughout the April 1990 Editor: Jim Pinkelman Caribbean, and Pacific (ACP) countries. year, often at the Cabinet level. In the Writer: Robert Coe Signed in 1975 and renewed in 1979, 1985, past there have been annual US-EC Department of State Publication 9155 and 1989 for a 10-year period beginning in meetings in Brussels on a ministerial Background Notes Series This material is 1990, the agreement provides aid for level, but there are plans to hold these in the public domain and may be reprinted development projects, free access to EC meetings twice a year beginning in 1990. without permission; citation of this source markets for almost all manufactured is appreciated. On February 27, 1990, President Bush imports from ACP countries, and and Irish Prime Minister Haughey, For sale by the Superintendent of Documents, incentives to promote European invest- representing the Community, agreed to U.S. Government Printing Office, Washington, D.C. 20402. 8 RECOMMENDED DEPARTURE STATEMENT I was delighted to have the opportunity to meet with my friends Jacques Santer and Jacques Delors. As part of our mutual efforts to deepen the US-EC relationship, we have continued our and ongoing discussions on a number of important issues. Eastern Swiet the well as as the Today, we discussed the situation in the Middle East,/AWe value Uniquary the excellent support we have received from our European Round, in the Gulf crisis, and we friends and allies and continue to work with them on what we must do to help create a stable environment to promote peace and prosperity in that region. Additionally, we discussed the situation in Yugoslavia, which greatly concerns all of us. We agreed to continue to encourage the people of Yugoslavia to work out their differences peacefully and through democratic Baltics, the dialogue. We reviewed recent events in the Soviet Union and Eastern and Central Europe. We had a broad and useful discussion of our views of Europe after the Paris CSCE Summit. Of particular interest to us are the EC's plans for greater political and economic union. I reiterated our support for European integration, and our shared interest in the development of a European security identity which strengthens both European security and the transatlantic relationship. We reaffirmed our mutual commitment to continuing transatlantic cooperation on issues involving our mutual security, foreign policy and economic interests. Finally, we reviewed progress on the Uruguay Round. We expressed our commitment to work together in the coming months to make vapid steady progress on these crucial negotiations. Say more me open trading system