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—_—— —

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

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

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