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        The European Council heard a statement by Mr BARON, the President of
   the European Parliament, in which he set out the Parliament's position
   and priorities with regard to the main Community topics in particular the
   two forthcoming Intergovernmental Conferences.
   Introduction
   1.      The European Council, determined to ensure the continued dynamic
      development of the Community at a time of great challenge for Europe
      and the world, agreed to intensify the process of transforming
      relations as a whole among Member States into a European Union
      invested with the necessary means of action.  To this end it reviewed
      progress and laid down guidelines with regard to the full
      implementation of the Single European Act; it agreed to convene an
      Intergovernmental Conference on Political Union; it reviewed the
      preparatory work for the Intergovernmental Conference, already agreed,
      on Economic and Monetary Union; and it fixed the opening dates for
      these two Intergovernmental Conferences.
   2.      With a view to enhancing the benefits which our peoples derive
      from belonging to a Community which has as its raison d'être the
      promotion of their rights, their freedoms and their welfare, the
      European Council dealt with a number of themes of particular relevance
      to the individual citizen including the free movement of persons, the
      environment, drugs and their links with organized crime, and  
     anti-semitism.  The European Council sees action in these areas as
     essential to the Union it wishes to achieve over the coming years.
   3.      The European Council, determined to strengthen the role of the
      Community in the world in order to meet its international
      responsibilities, reviewed progress in the Community's external
      relations and laid down guidelines for future action in a number of
      areas.  The discussion reflected the increased coherence between the
      economic and the political aspects of the Community's international
      action.
   I PROGRESS TOWARDS EUROPEAN UNION
     1. Implementation of the Single European Act
             The fulfilment of the commitments contained in the Single Act
        is fundamental to the process of integration and to the creation of
        a European Union.  Economic and Monetary Union and Political Union
        must be built on an area without internal frontiers in which the
        free movement of persons, goods, services and capital is ensured in
        accordance with the provisions of the Treaty, where economic and
        social cohesion is assured, and where the necessary accompanying
        policies to the Internal Market are developed.
             The European Council took stock of progress towards the
        implementation of the Single European Act.
        a)  Internal Market
                   The European Council welcomed the good progress which has
              been made in a number of fields in recent months and noted
              that two thirds of the measures had now been agreed.
                                    - 2 -
                   In the area of public procurement it noted the important
              agreement on the opening up of the previously excluded sectors
              of water, energy, transport and telecommunications.  The
              European Council looked forward to further progress being made
              in the area of public procurement including the procurement of
              services.
                   Important progress has been made in the financial
              services sector.The European Council asked for rapid progress
              in  the areas of investment services and of insurance.  It
              also asked for rapid completion of work on intellectual
              property, and effective action in relation to takeovers within
              the Community.
                   As regards animal and plant health, the European Council
              called for rapid completion of the internal market in
              agriculture and foodstuffs building on recent progress.
                   In the fiscal area, the recent agreement on the package
              of three cooperation measures on company tax  is an important
              step forward.  On indirect taxes the European Council called
              for adoption before the end of the year of the new VAT and
              excise duties arrangements which are to apply from 1 January
              1993.
                   The European Council welcomed the adoption of the second
              phase of the liberalisation of air transport and other
              important recent advances in the transport sector.  It
              stressed the importance of sustained progress in all areas of
              transport policy (in particular cabotage, fiscal harmonisation
              in the road transport sector as early as possible and not
              later than 31.12.1990 and in accordance with the provisions of
              the Single European Act, and transit).  In this connection it
              noted with particular interest the memorandum submitted by the
              Netherlands on this
                                    - 3 -
              subject, which it asked the Transport Council to consider with
              a view to a report to the next European Council.
                   Recalling its conclusions at Strasbourg on development
              and interconnection of trans-European networks, the European
              Council asked that guidelines on this matter be agreed before
              the end of this year.
                   At its December meeting the European Council will
              undertake a general examination of the progress made towards
              achieving the Internal Market within the time limit fixed, on
              the basis of the Commission's Report required by the Single
              European Act.
                   The European Council emphasised the vital importance of
              implementation of Community legislation at national level
              within the required time limits.  It asked the Commission to
              strengthen its supervisory procedures in this context.  It
              agreed to review the situation at its next meeting.
        b)  Research
                   The European Council welcomed the adoption of the Third
              Framework Programme for the period 1990-94, which provides for
              5.7 bn. Ecu to finance the Community research and development
              programme over that period.  It called for early decisions on
              the specific programmes to be established under the Framework
              Programme.
        c)  Social Dimension
                   The European Council recalled the particular importance
              which it attaches to the development of the social dimension
              in all its aspects with a view to ensuring that the
              opportunities offered by the completion of the Internal Market
              are fully exploited to the benefit of all of the peoples of
              the Community.
                                    - 4 -
                   Despite the recent significant improvement in general
              economic conditions, long-term unemployment among adults and
              young people remains a major problem.
              It welcomed the measures adopted recently by the Council of
              Social Affairs on action to assist the long-term unemployed,
              on vocational training and on health and safety of workers.
                   The European Council welcomed the timetable established
              by the Troika of Social Affairs Ministers and the Commission
              for the presentation and examination of proposals under the
              Commission's Action Programme in application of the "Community
              Charter of the Fundamental Social Rights of Workers".
        d)  E.M.S.
                   The European Council noted the satisfactory functioning
              and recent development of the
              E.M.S.
    2.  Economic and Monetary Union
             The first stage of Economic and Monetary Union will come into
        effect on 1st July 1990.  The European Council considered that this
        stage should be used to ensure convergence in the economic
        performance of Member States, to advance cohesion and to further the
        use of the Ecu, all of which are of importance for the further
        progress towards EMU.
             The European Council reviewed the preparation of the
        forthcoming Intergovernmental Conference.  It noted that all the
        relevant issues are now being fully and thoroughly clarified, with
        the constructive contribution of all Member States, and that common
        ground is emerging in a number of fields.  In these circumstances
        the European Council decided that the Intergovernmental Conference
        will open on 13th December 1990 with a view to establishing the
        final stages of Economic and Monetary Union in the
                                    - 5 -
        perspective of the completion of the Internal Market and in the
        context of economic and social cohesion.  The Conference should
        conclude its work rapidly with the objective of ratification of the
        results by Member States before the end of 1992.
             The European Council asked the ECO/FIN Council and the General
        Affairs Council assisted by the competent bodies to carry out their
        work in such a way that negotiations on a concrete basis can be
        entered into as soon as the Conference opens.
    3.  Political Union
             The European Council had an extensive exchange of views on the
        basis of the examination and analysis conducted by Foreign Ministers
        and the ideas and proposals put forward by Member States and the
        Commission.
             On this basis, and following a discussion on the calling of an
        Intergovernmental Conference on Political Union, the President of
        the European Council noted the agreement to convene such a
        Conference under Article 236 of the Treaty.  The Conference will
        open on 14 December 1990.  It will adopt its own agenda, and
        conclude its work rapidly with the objective of ratification by
        Member States before the end of 1992.
             Foreign Ministers will prepare the Conference.  Preparatory
        work will be based on the results of the deliberations of Foreign
        Ministers (Annex I) and on contributions from national governments
        and the Commission, and will be conducted in such a way as to permit
        negotiations on a concrete basis to begin from the start of the
        Conference.
                                    - 6 -
             Close dialogue will be maintained with the European Parliament
        both in the preparatory phase and in the conference phase on
        Political Union as well as on Economic and Monetary Union.
             The European Council considered that the necessary coherence in
        the work of the two Conferences should be ensured by the General
        Affairs Council.
    4.  German Unification
             The European Council heard a report from the German Federal
        Chancellor on the progress towards German unification.  It welcomed
        the conclusion of the inter-German State Treaty which will promote
        and accelerate the integration of the territory of the German
        Democratic Republic into the Community.
             The European Council expressed its satisfaction that the
        Commission has accelerated its preparatory work and intends to
        submit proposals for the necessary transitional arrangements in
        September. It asked the Council to reach early agreement in
        conformity with the guidelines laid down by the European Council in
        April.
        The Members of the European Council also heard a report from the
        Prime Minister of German Democratic Republic who was accompanied by
        his Minister for Foreign Affairs at the luncheon offered by the
        President of Ireland.
   II  PROGRESS IN FIELDS RELATING TO A PEOPLES EUROPE
             The European Council emphasised that a fundamental objective of
        European integration is the promotion of the rights, freedoms and
        welfare of the individual citizen.  It
                                    - 7 -
      emphasised the importance of a People's Europe which seeks to ensure
      and bring home in a direct and practical way the benefit of the
      Community to all its citizens.
      1.  Environment
                 The European Council considered the role of the Community
            and its Member States in the protection of the environment
            within the Community and at the global level. It agreed that a
            more enlightened and more systematic approach to environmental
            management is urgently required.  It emphasised that research
            and environmental monitoring must be intensified to achieve a
            better understanding of the phenomena involved in global change
            and the implications of different courses of action.  But the
            European Council stressed that research must not be used to
            justify procrastination; the areas of scientific uncertainty
            have been narrowed down and the implementation of response
            measures can no longer be delayed.
                 Following its discussion the European Council adopted the
            declaration in Annex II - setting out guidelines for future
            action.  It requested the Commission to use the objectives and
            the principles contained in the declaration as the basis of the
            Community's 5th Action Programme for the Environment and to
            present in 1991 a draft of this programme.  The European Council
            agreed to ask the Commission to analyse and prepare proposals
            for an appropriate Community programme to deal with the threat
            to the tropical rain forests in consultation with the countries
            concerned and in particular Brazil.  It also agreed that the
            Community would consult other industrialized countries, on
            concerted action on this question.
                                    - 8 -
      2.  Free Movement of Persons
                 The European Council noted with satisfaction that there was
            now agreement on the three Directives on the right of residence.
                 It took note of the developments as set out in the
            Coordinators' Report on the Free Movement of Persons.  It
            welcomed the conclusion and signature by 11 Member States of the
            Convention determining the State responsible for examining
            applications for asylum which is the first major legal
            instrument in the series necessary to ensure the free movement
            of people.  It expressed the hope that this Convention will be
            signed by all Member States before the end of the year.  It
            noted progress on the Convention on the crossing of the external
            borders of the Community and urged the competent bodies to take
            the necessary steps to ensure that this Convention would be
            signed by the end of this year in accordance with the
            conclusions reached by the European Council in Strasbourg. The
            European Council urged the Co-ordinators group to speed up work
            on implementation of the measures contained in the "Palma
            document" with a view to create a Europe without frontiers.
      3.  Drugs and Organised Crime
                 The European Council held a thorough debate on the basis of
            reports from the High-Level Coordinators' Group, CELAD, and from
            the TREVI Group.  It agreed that drug addiction and traffic in
            drugs are sources of great damage to individuals and society as
            well as to States and constitute a major menace to Europe and
            the rest of the world.  In view of the extent of this scourge
            and in the perspective of a Europe without internal frontiers
            the European Council agreed on the need for a coherent and
            effective policy at the European level. In this context the
            European Council suggested the early
                                    - 9 -
            convening of a Conference of Western and Eastern European
            countries under the auspices of the Pompidou Group.
                 The European Council endorsed the conclusions of the two
            reports and asked the Council to reach agreement before the end
            of the year on the basis of the Commission's proposals on trade
            in precursors with non-Community countries and on an integrated
            programme for cooperation with Colombia with particular regard
            to the sale and price of coffee and other substitute products.
            It welcomed the Commission proposal to combat money laundering
            and asked for final adoption of adequate measures before
            July 1991 drawing on the work of the GAFI set up in Paris in
            July 1989.  It invited the Member States to adopt legislation
            which provides for seizure of the assets of persons involved in
            drug trafficking.
                 It stressed the responsibility of each Member State to
            develop an appropriate drug demand reduction programme. It also
            invited the Commission to present on a regular basis to the
            Council and Ministers for Health a report on work done in this
            area.
                 The European Council considered that effective action by
            each Member State, supported by joint action of the Twelve and
            the Community, should be a main priority over the coming years.
            The necessary human and material resources both at national and
            Community level would be provided for an effective fight against
            drugs and organised crime.
                 The European Council asked CELAD in close consultation with
            the Commission to prepare for the meeting of the European
            Council in Rome a European plan to combat drugs covering
            measures on prevention, on demand reduction programmes, on
            health and social policy with regard to drug addicts,  the
            suppression of drugs trafficking and providing for an active
            European role in international action,  bilaterally and in
            multilateral
                                    - 10 -
            fora.  It asked the TREVI Group to speed up work on the creation
            of a common information system, a European programme of training
            for law enforcement officers from drug-producing and transit
            countries, coordination of Member States' programmes of
            technical police cooperation with those countries, and the
            establishment of a European central drugs intelligence unit if
            possible before the end of 1990.  It urged the Group to proceed
            with expanding the network of liaison officers in producer and
            transit countries and with improving controls at external
            frontiers with particular regard to the infrastructure problems
            faced by Member States with a long coast line.
      4.  Anti-semitism, Racism and Xenophobia
                 The European Council adopted the Declaration in Annex III.
   III  EXTERNAL RELATIONS
             The European Council noted with satisfaction that the
        guidelines laid down at its special session in April for the
        Community's external policy are being translated into concrete
        action, notably
        - the preparatory work for the CSCE Summit
        - the exploratory talks, soon to be opened, on Association
          Agreements with certain Central and Eastern European countries
        - the proposals submitted by the Commission on the renewal of the
          Community's Mediterranean policy
        - the agreement on a mandate for negotiation with the EFTA countries
          which have now commenced with the objective of completion as soon
          as possible, with a view to creating a European Economic Area.
                                    - 11 -
              The European Council confirmed the will of the
        Community to act in a spirit of solidarity and cooperation with
        respect to those areas which, due to inadequate levels of
        development, necessitate an increased level of coordinated and
        multi-faceted intervention of the Community and the Member States.
        The European Council furthermore dealt with the following subjects:
        1.  The Economic Situation in the USSR
                   The European Council had a substantial discussion of the
              situation in the Soviet Union.  It underlined the interest of
              the Community in the success of the political and economic
              reform initiated by President Gorbachev, and its support for
              the efforts of the Soviet Union to make progress towards a
              democratic system and a market-oriented economy.
                   The European Council asked the Commission, in
              consultation as necessary with the International Monetary
              Fund, the World Bank, the European Investment Bank, the
              Organisation for Economic Cooperation and Development, and the
              designated President of the European Bank for Reconstruction
              and Development, to consult the government of the Soviet Union
              with a view to preparing urgently proposals covering short
              term credits and longer term support for structural reform.
              In this connection the Commission will examine the proposal of
              the Netherlands government for the establishment of a European
              Energy Network.
                   The proposals thus established will be submitted in due
              course to the Council.
                                    - 12 -
        2.  Central and Eastern Europe
                The European Council welcomed the continuing
              progress being made in Central and Eastern European countries
              in establishing pluralist democracy founded on the rule of
              law, full respect for human rights, and the principles of the
              market-oriented economy.  The European Council reaffirmed the
              right of individual citizens to participate fully in this
              process and called on all states to observe this principle
              without reservation.  The European Council welcomed in
              particular the holding of free elections in Central and
              Eastern Europe and expressed the hope that these will lead to
              a fuller realisation of democratic ideals which, of course,
              entail full respect for the rights of the opposition parties.
              The European Council expressed its deep satisfaction at the
              progress already made and in prospect towards overcoming the
              divisions of Europe and restoring the unity of the continent
              whose peoples share a common heritage and culture.The European
              Council recalled the contribution already made by the
              Community and the Member States to supporting the process of
              political and economic reform, notably through the G-24, and
              affirmed its intention to broaden and intensify that approach.
        3.  CSCE
                   The European Council reaffirms the important role played
              by the CSCE in the process of change in Europe.  At a time
              when our continent is actively engaged in surmounting its
              divisions, the CSCE provides a necessary framework for
              maintaining stability and promoting cooperation in Europe and
              for deepening the reforms that are underway.
                   It attaches great importance to the comprehensive nature
              of the CSCE process which brings together the peoples and
              governments of Europe, the United States and Canada.
                                    - 13 -
                   It welcomes the decision taken by the Member States of
              the CSCE to convene in Paris a Summit of Heads of State and
              Government. The European Council proposes the date of 19
              November 1990 for this meeting.
                   For the European Council, this Summit has an exceptional
              importance.  It should be an opportunity to define the crucial
              role which the CSCE will play in the future architecture of
              Europe and in establishing a new set of relations between
              participating States, based on the Helsinki principles, to be
              further expanded by new commitments and involving a balanced
              development of the CSCE encompassing notably the development
              of pluralist democracy, the rule of law, human rights, better
              protection of minorities, human contacts, security, economic
              cooperation, the environment, further cooperation in the
              Mediterranean and cooperation in the field of culture.
                   The European Council expects that the Summit, among other
              things, will:
              - make a decisive contribution to strengthening stability and
                cooperation in Europe, and to disarmament;
              - take note of the results obtained in talks relating to
                German unity, in particular its final settlement under
                international law;
              - provide a basic orientation for future economic relations
                and cooperation in Europe.  A closer association between the
                Community and other States members of the CSCE is an example
                of such relations and cooperation;
              - set out guidelines for a democratic Europe and consolidate
                the principles of a State based on the rule of law.
                                    - 14 -
                   The European Council proposes agreement on regular
              meetings of Heads of State and Government of the CSCE, as well
              as of Ministers of Foreign Affairs, and the establishment of a
              small administrative secretariat, as well as the holding of
              more frequent follow-up meetings.  The Summit will also
              provide the opportunity to consider the relationship between
              the CSCE process and other relevant institutions, such as the
              Council of Europe.  Furthermore, the Summit could take
              decisions on new mechanisms in the field of security and
              cooperation in Europe, including suitable means to avoid
              conflict and disputes, and the active participation of
              parliamentary bodies.
                   The European Community and its Member States intend to
              assume a leading role in this enterprise and to contribute
              actively to all discussion within the CSCE process.
                   Considering the importance of the Paris Summit, the
              European Council has agreed that the Community and its Member
              States will strengthen their coordination with a view to
              defining and expressing a common position on all questions, in
              the various sectors of the CSCE, in which they have an
              essential common interest, and taking into account the
              importance of coordination with the participating states and
              organisations.
        4. Transatlantic relations
                 The European Council expressed its satisfaction with the
            developments in the Community's relations with the United
            States, based on the structure laid down by the European Council
            in April and characterized by ever closer cooperation.  They
            wish to take this cooperation further.  Their commitment to this
            further cooperation could take the form of a joint transatlantic
            declaration on relations between the Twelve and the United
            States and Canada.
                                    - 15 -
        5. Uruguay Round
                The European Council stressed that the successful
              conclusion of the Uruguay Round by December 199O was a major
              priority for the Community.  It emphasised the benefits for
              the peoples of the world by way of improved living standards
              that would flow from the gradual removal of barriers to
              multilateral free trade within the framework of strengthening
              the rules of the GATT.  It reaffirmed the Community's
              determination to play a full and active part in the
              negotiations.
        6.  Africa
              i) Southern Africa
              The European Council adopted the Declaration in Annex IV.
              ii) Sub-Saharan Africa
              The European Council expressed its serious concern about sub-
              Saharan Africa.  The economic situation in these countries,
              including debt, is worrying.  The European Council,
              emphasising the commitment of the Community and its member
              States to the development of Africa, in particular through the
              Lomé Convention, declared its determination to pursue this
              further and also its support for progress in the observance of
              human rights and in sound government management in sub-Saharan
              Africa.
        7.   Middle East
             The European Council adopted the Declaration in Annex V.
                                    - 16 -
        8. Nuclear Non-Proliferation
                The European Council adopted the Declaration in Annex VI.
        9. Iranian earthquake
             The European Council adopted the Declaration in Annex VII.
      10. Cyprus
             The European Council adopted the Declaration in Annex VIII.
      11. Kashmir
             The European Council discussed the current tension between
        India and Pakistan over the question of Kashmir. The European
        Community and its member States enjoy excellent relations with India
        and Pakistan. They welcome and encourage recent efforts to de-
        escalate the state of tension between the two countries. They hope
        that such initial positive steps will lead to a fuller dialogue and
        a resolution of this problem in order that India and Pakistan can
        resume full and fruitful relations.
                                    - 17 -
   GREEK ECONOMY
        The European Council expresses its satisfaction with the initial
   measures adopted by the Greek government for the stabilization,
   modernization and development of the Greek economy and invites the
   Commission to examine, in close collaboration with the Greek government
   and the ECO/FIN Council, measures needed to ensure the successful
   restructuring of the Greek economy and its closer integration into the
   Community.
   PRESIDENCY OF THE COMMISSION
        The European Council, in the presence of the President of the
   European Parliament who will consult the Enlarged Bureau, agreed to renew
   the mandate of Mr Jacques DELORS as President of the Commission for the
   period 1991-1992.  It also agreed to renew the mandates of the present
   Vice-Presidents for the same period.
   SEATS OF THE INSTITUTIONS
        After a debate on this question the European Council noted that the
   Presidency will submit a proposal for a definitive decision to the
   European Council in October 1990.
                                    - 18 -
   TERRORISM
        Following the most recent bombing outrage in London, the European
   Council renewed its categorical condemnation of all forms of terrorism
   and expressed its deep sympathy for the victims and their families.
                                ____________
                                    - 19 -
                                                     ANNEX I
                                POLITICAL UNION
   1. Introduction
           The European Council agreed at its meeting on 28 April 199O that
      a point had been reached where the further dynamic development of the
      Community has become an imperative not only because it corresponds to
      the direct interest of the twelve Member States but also because it
      has become a crucial element in the progress that is being made in
      establishing a reliable framework for peace and security in Europe.
      The European Council confirmed in this context its commitment to
      political union and decided that Foreign Ministers should carry out a
      detailed examination of the need for possible treaty changes and
      prepare proposals for the European Council.
         Written contributions have been submitted by Member States and
    ideas and suggestions compiled.  Foreign Ministers carried out an
    examination and analysis of the issues at meetings in May and June with
    a view to the debate in the European Council on the convening of an
    Intergovernmental Conference on Political Union to define the necessary
    framework for transforming relations as a whole among the Member States
    into a European Union invested with the necessary means of action.
         The result of this work is set out below.
   2. The overall objective of Political Union
         Political Union will need to strengthen in a global and balanced
    manner the capacity of the Community and its Member States to act in the
    areas of their common interests.  The unity and coherence of its
    policies and actions should be ensured through strong and democratic
    institutions.
         The Union will remain open to membership by other European states
    who accept its final goals, while developing closer relations with other
    countries in the spirit of the Rhodes declaration.
         The transformation of the Community from an entity mainly based on
    economic integration and political cooperation into a union of a
    political nature, including a common foreign and security policy, raises
    a number of general questions:
    a) scope:
      - To what extent does the Union require further transfer of competence
        to the Community along with the provision of means necessary to
        achieve its objectives.
      - How will the Union include and extend the notion of Community
        citizenship carrying with it specific rights (human, political,
        social, the right of complete free
                                    - 20 -
        movement and residence ...) for the citizens of Member States by
        virtue of these states belonging to the Union.
      - To what extent will other areas currently dealt with in
        Intergovernmental Cooperation be included, such as aspects of free
        circulation of persons, the fight against drugs, police and judicial
        cooperation.
    b)  Institutional aspects:
      - To what extent will new or changed institutional arrangements be
        required to ensure the unity and coherence of all the constituent
        elements of the European Union.
      - How should the role of the European Council, as defined in the
        Solemn Declaration on European Union and in the Single European Act,
        be developed in the construction of the Union ?
    c) General Principles
             The following questions should be considered with regard to
        certain general principles which have been advanced:
      - in the context of ensuring respect of national identies and
        fundamental institutions: how best to reflect what is not implied by
        Political Union,
      - in the context of the application of the principle of subsidiarity:
        how to define it in such a way as to guarantee its operational
        effectiveness,
   3. Democratic legitimacy
         It is necessary to ensure that the principle of democratic
    accountability to which all Member States of the Community subscribe
    should be fully respected at Community level.  The ongoing transfer of
    tasks to the Community and the corresponding increase in the power and
    responsibilities of its Institutions require a strengthening of
    democratic control.  This objective should be pursued through a range of
    measures, among which could be the following:
    - increased involvement for the European Parliament
     =  in the legislative process possibly including forms of co-decision,
     = in the field of external relations.
    - increased accountability through reinforced control by the European
      Parliament over the implementation of agreed Community policies;
                                    - 21 -
    - a reinforcement of the democratic character of other Institutions
      (e.g. specific role of the European Parliament in the nomination of
      the President and Members of the Commission, greater transparency and
      openness in the working of the Community ...);
    - greater involvement of the national Parliaments in the democratic
      process within the Union, in particular in areas where new competence
      will be transferred to the Union.
   4. Efficiency and effectiveness of the Community and its Institutions
         The adequacy of the Community's response, and of that of its
    Institutions, to the needs arising from the new situation as well as
    from the implementation of the Internal Market, the attainment of EMU,
    the achievement of the aims of the Single European Act, the development
    of new policies and the enhancement of the Community's international
    role, (including its capacity to respond to the aspirations of countries
    who wish to see their relations with the Community strengthened), should
    be examined from two angles: firstly, how to meet the challenges which
    the Community faces in an overall and balanced way; secondly, from the
    angle of the functioning of the Institutions.
         The question of the functioning of the Institutions should be
    examined at several operational levels, while respecting the general
    balance between Institutions:
    - The European Parliament:  (cf. point 3 above);
    - The Council: improving the decision-making process inter alia by
      enlarging the field covered by qualified majority voting; central
      coordination through the General Affairs Council; concentration and
      rationalisation of Council work in general,
    - The Commission: the number of its Members and strengthening of its
      executive role with regard to implementing Community policies;
    - The Court of Justice: inter alia automatic enforceability of its
      judgements where relevant;
    - The Court of Auditors: the strengthening of its role in ensuring sound
      financial management;
    - Member States: ensuring the implementation and observance of Community
      law and European Court judgements.
    In addition, consideration should be given to a review of the different
    types of legal instruments of the Community and the procedures leading
    to their adoption.
                                    - 22 -
   5. Unity and coherence of the Community's international action
         In accordance with the conclusions reached by the European Council
    at Dublin on 28 April 199O, the Community will act as a political entity
    on the international scene.
         The proposal for a common foreign and security policy which takes
    account of the common interests of the Member States, acting with
    consistency and solidarity, and which institutionally goes beyond
    Political Cooperation as it currently functions, raises a number of
    questions, in particular the following:
    a) scope
     -  the integration of economic, political and security aspects of
        foreign policy
     -  the definition of the security dimension
     -  the strengthening of the Community's diplomatic and political action
        vis à vis third countries, in international organisations and in
        other multilateral fora
     -  the evolution of the transfer of competences to the Union, and in
        particular the definition of priority areas where transfer would
        take place at an initial stage.
      b) decision-making :
         -   use of the Community method (in full or in adapted form) and/or
             a sui generis method bearing in mind the possibilities offered
             by the evolution over time of the degree of transfer of
             competence to the Union, referred to above;
       -     the Commission's role, including the faculty of launching
             initiatives and proposals;
       -     establishment of a single decision-making structure; central
             role of the General Affairs Council and the European Council in
             this context; preparatory bodies;  the organisation and
             strengthening of the Secretariat;
       -     modalities aimed at ensuring the necessary flexibility and
             efficiency to meet the requirements of formulation of foreign
             policy in various areas; consideration of decision procedures
             including the consensus rule, voting practices involving
             unanimity with abstentions, and qualified majority voting in
             specific areas.
                                    - 23 -
   c) Implementation
    There is a recognised need for clear rules and modalities for the
    implementation of the common foreign policy; the following are to be
    examined in this context:
    . role of the Presidency, (and of the Troïka), and of the secretariat,
    . role of the Commission
    . the role of national diplomatic services in a strengthened
      collaboration.
                                    - 24 -
                                                     ANNEX II
                         THE ENVIRONMENTAL IMPERATIVE
                      DECLARATION BY THE EUROPEAN COUNCIL
   The natural environment which forms the life support system of our planet
   is gravely at risk.  The earth's atmosphere is seriously threatened. The
   condition of water resources, including the seas and oceans, is causing
   concern, natural resources are being depleted and there is growing loss
   of genetic diversity.  The quality of life - indeed, the continuation of
   life - could no longer be assured were recent trends to proceed
   unchallenged.
   As Heads of State and Government of the European Community, we recognise
   our special responsibility for the environment both to our own citizens
   and to the wider world. We undertake to intensify our efforts to protect
   and enhance the natural environment of the Community itself and the world
   of which it is part. We intend that action by the Community and its
   Member States will be developed on a coordinated basis and on the
   principles of sustainable development and preventive and precautionary
   action. We have, therefore, adopted the following Declaration setting out
   guidelines for future action.
                            The Community Dimension
   The obligations of the European Community and its Member States in the
   area of environmental protection are clearly defined in the Treaties.
   There is also an increasing acceptance of a wider responsibility, as one
   of the foremost regional groupings in the world, to play a leading role
   in promoting concerted and effective action at global level, working with
   other industrialised countries, and assisting developing countries to
   overcome their special difficulties.  The Community's credibility and
   effectiveness at this wider level depends in large measure on the ability
   to adopt progressive environmental measures for implementation and
   enforcement by its Member States. The internal and external dimensions of
   Community environment policy are therefore inextricably linked.
   Completion of the Internal Market in 1992 will provide a major impetus to
   economic development in the Community. There must be a corresponding
   acceleration of effort to ensure that this development is sustainable and
   environmentally sound.  In particular, the environmental risks inherent
   in greater production and in increased demand for transport, energy and
   infrastructure must be countered and environmental considerations must be
   fully and effectively integrated into these and all other policy areas.
   The Community and the Member States must find effective solutions to all
   forms of pollution, including that created by the agricultural sector,
   and should support efforts to promote clean technology and non-polluting
   processes and products in industry.  Better arrangements are also needed
   to protect the
                                    - 25 -
   seas and coastal regions of Member States from the threat posed by the
   transport of oil and hazardous substances. This applies in particular to
   the marine waters to the west and south of the Community where new co-
   operation arrangements should be developed without delay, with the help
   of the Commission.
   While welcome progress has been made in recent times in the adoption of
   environmental measures at Community level, much more needs to be done
   taking due account of the subsidiarity principle, the differing
   environmental conditions in the regions of the Community and the need for
   balanced and cohesive development of these regions.  We urge the Council
   and the Commission to press ahead with their work on this basis. The
   forthcoming Intergovernmental Conference should address ways of
   accelerating Community decision-making on environmental legislation with
   a view to providing the Community with the necessary capacity in all
   respects to respond to the urgency of the situation.
   Community environmental legislation will only be effective if it is fully
   implemented and enforced by Member States.  We therefore renew our
   commitment in this respect.  To ensure transparency, comparability of
   effort and full information for the public, we invite the Commission to
   conduct regular reviews and to publish detailed reports on its findings.
   There should also be periodic evaluations of existing Directives to
   ensure that they are adapted to scientific and technical progress and to
   resolve persistent difficulties in implementation; such reviews should
   not, of course, lead to a reduced standard of environmental protection in
   any case.
   Standards designed to ensure a high level of environmental protection
   will remain the cornerstone of Community environment policy.  But the
   traditional "command and control" approach should now be supplemented,
   where appropriate, by economic and fiscal measures if environmental
   considerations are to be fully integrated into other policy areas, if
   pollution is to be prevented at source, and if the polluter is to pay.
   We therefore call on the Commission to accelerate its work in this field
   and to present, before the end of 1990, proposals for a framework or
   guidelines within which such measures could be put into effect by the
   Member States in a manner consistent with the Treaties.
   Implementation of Community environmental measures and the protection of
   the common European heritage can give rise to unequal burdens for
   individual Member States.  In this context, we welcome the recent ENVIREG
   initiative, under which support from the Structural Funds will be
   provided for the management of hazardous wastes and the treatment of
   coastal waste water discharges.  We invite the Commission to review the
   overall level of budgetary resources devoted to Community environment
   policy, currently disbursed through a number of separate funding
   mechanisms, and to submit its findings to the Council as soon as
   possible.
                                    - 26 -
                                 Global Issues
   The Community and its Member States have a special responsibility to
   encourage and participate in international action to combat global
   environmental problems.  Their capacity to provide leadership in this
   sphere is enormous.  The Community must use more effectively its position
   of moral, economic and political authority to advance international
   efforts to solve global problems and to promote sustainable development
   and respect for the global commons. In particular, the Antarctic deserves
   special protection as the last great unspoiled wilderness. The Community
   should also support efforts to build into international structures the
   capacity to respond more effectively to global problems.
   Depletion of the ozone layer is a major cause for concern.  The Community
   has already agreed to press for revision of the Montreal Protocol on
   substances which deplete the ozone layer so as to speed up considerably
   the complete elimination of these substances. It is also committed to the
   provision of additional financial and technical resources to assist
   developing countries in implementing the Protocol.  We call on all the
   Contracting Parties to the Protocol to support these proposals and we
   call on States which have not already done so urgently to ratify or
   accede to the Protocol.
   Recent scientific assessments show that man-made emissions are
   substantially increasing the atmospheric concentrations of greenhouse
   gases and that a business-as-usual approach will lead to additional
   global warming in the decades to come.  We urge all countries to
   introduce extensive energy efficiency and conservation measures and to
   adopt as soon as possible targets and strategies for limiting emissions
   of greenhouse gases.  We call on the Commission to expedite its proposals
   for concrete action and, in particular, measures relating to carbon
   dioxide emissions, with a view to establishing a strong Community
   position in preparation for the Second World Climate Conference.  The
   Community and its Member States will take all possible steps to promote
   the early adoption of a Climate Convention and associated protocols,
   including one on tropical forest protection.
   We are gravely concerned at the continuing and rapid destruction of the
   tropical forests. We welcome the commitment of the new Government of
   Brazil to halt this destruction and to promote sustainable forest
   management. The Community and its Member States will actively support
   this process. We have asked the Commission to open discussions as a
   matter of urgency with Brazil and the other Amazonian Pact countries with
   a view to developing a concrete action programme involving the Community,
   its Member States and these countries. Elements for priority
   consideration should include debt for forest conservation exchanges;
   codes of conduct for timber importing industries; and the additional
   resources necessary to enable the forests to be preserved and managed on
   a sustainable basis, making optimal use of existing agencies and
   mechanisms. We appeal to other industrialised countries to join us in our
   efforts. In our own countries, we will work to protect the forests and to
   extend and strengthen programmes of afforestation.
                                    - 27 -
   Destruction of the tropical forests, soil erosion, desertification and
   other environmental problems of the developing countries can be fully
   addressed only in the context of North-South relationships generally.
   Nevertheless, the Community together with the Member States should play a
   major role is assisting these countries in their efforts to achieve long-
   term sustainable development.  In this context, we welcome the provisions
   of the Fourth Lomé Convention under which increased assistance is to be
   given to ACP countries, at their request, in the field of population,
   environment and sustainable resource development.  We also welcome the
   strategy set out in the Resolution on Environment and Development agreed
   by the Council on 29 May 1990, particularly in regard to the recognition
   of the need for additional resources to help deal with the environmental
   problems of developing countries.  More generally, the cooperation
   agreements between the Community and the countries of Asia and Latin
   America falling outside the Lomé framework should increasingly emphasise
   our shared environmental concerns.
   The environmental situation in Central and Eastern Europe presents
   special challenges.  We endorse the agreement reached in Dublin on
   16 June 1990 between the Environment Ministers of the Community and those
   of Central and Eastern Europe on the steps to be taken to improve the
   environment in Europe as a whole and in Central and Eastern Europe in
   particular.  Remedial measures must be taken by these countries to clear
   up problems which have developed through years of neglect and to ensure
   that their future economic development is substainable.  They need the
   support of the Community and its Member States in order to achieve these
   objectives.  Action already taken within the PHARE programme is
   encouraging but will need to be developed further, both in the context of
   the expanded G24 programme and in the co-operation agreements between the
   Community and the countries of Central and Eastern Europe.  We look
   forward also to the contribution to be made by the European Bank for
   Reconstruction and Development in this regard.
                Personal Attitudes and Shared Responsibilities
   Increased public awareness and concern for environmental issues is one of
   the major developments of our time.  We note with satisfaction the
   adoption of the Regulation to establish the European Environment Agency
   which will provide reliable and objective information on the state of the
   environment for the citizens of Europe.
   Another important development is the adoption of the Directive on Freedom
   of Access to Environmental Information which will greatly increase the
   availability of information to the public and will lead to the
   publication of regular State of the Environment Reports.  We invite the
   Member States to accompany these reports by national environment action
   plans, prepared in a form which will attract maximum public interest and
   support.
   We urge Member States to take positive steps to disseminate environmental
   information widely among their citizens in order to build up more caring
   and more responsible attitudes, a
                                    - 28 -
   greater understanding, based on sound scientific assessments, of the
   nature and causes of problems, and a better appreciation of the costs and
   other implications of possible solutions.
   The development of higher levels of knowledge and understanding of
   environmental issues will facilitate more effective action by the
   Community and its Member States to protect the environment.  The
   objective of such action must be to guarantee citizens the right to a
   clean and healthy environment, particularly in regard to -
   + the quality of air
   + rivers, lakes, coastal and marine waters
   + the quality of food and drinking water
   + protection against noise
   +    protection against contamination of soil, soil erosion and
        desertification
   +    preservation of habitats, flora and fauna, landscape and other
        elements of the natural heritage
   + the amenity quality of residential areas.
   The full achievement of this objective must be a shared responsibility.
   Problems cannot be resolved without concerted action.  In each country,
   everyone - Government, public authorities, private undertakings,
   individuals and groups - must be fully involved.  Acceptance at all
   levels of this concept must be promoted.
   Mankind is the trustee of the natural environment and has the duty to
   ensure its enlightened stewardship for the benefit of this and future
   generations.  Solidarity must be shown with the poorer and less developed
   nations.
   We note with interest the conclusions of the Siena Forum on International
   Law of the Environment and suggest that these should be considered by the
   1992 UN Conference on Environment and Development.
   All of our decisions matter.  The environment is dependent on our
   collective actions and tomorrow's environment depends on how we act
   today.
   The European Council invites the Commission to use these principles and
   objectives as the basis of the Fifth Action Programme for the Environment
   and to present a draft of such a Programme in 1991.
                       ____________________
                                    - 29 -
   ANNEX III
             DECLARATION ON ANTI-SEMITISM, RACISM AND XENOPHOBIA
   The European Council expresses its deep revulsion at recent
   manifestations of anti-semitism, racism and xenophobia,  particularly
   expressions of anti-semitism involving acts of desecration perpetrated
   against the dead, which are calculated to cause the utmost distress to
   the living.  It is all the more distressing that such abominations should
   enjoy any currency precisely at a time when we are commemorating the end
   of the Second World War.
   The European Council deplores all manifestations of these phenomena. It
   agrees that vigorous measures must be taken to combat them, whenever and
   wherever they appear in the Community.  The member States will assess the
   extent to which their national legislation must effectively be used in
   order to counter them.
   The European Council has taken note of the fact that these problems are
   not restricted to the member States of the Community.  Comparable
   outrages have also occurred in recent times elsewhere in Europe.
   The European Council also recalls the Declaration of the Community
   Institutions and the member States against Racism and Xenophobia of 11
   June 1986.  It considers respect for the dignity of the human being and
   the elimination of manifestations of discrimination to be of paramount
   importance. Such manifestations, including expressions of prejudice
   directed against foreign immigrants, are unacceptable.  The European
   Council underlines the positive contribution that workers from third
   countries have made and continue to make to the development of the
   Community as a whole.
   Against this background, the European Council recalls the United Nations
   Convention on the Elimination of Racial Discrimination, the Council of
   Europe Declaration on Intolerance and ongoing work in the framework of
   the CSCE. The European Council supports action, notably in the context of
   the human dimension of the CSCE, to counter anti-semitism, racism,
   incitement to hatred and xenophobia.  The importance which the Community
   and its member States attach to this subject is illustrated by the
   proposals against racism and xenophobia made in their name, and by the
   initiatives on related issues taken by individual member States at the
   current session of the CDH in Copenhagen.
                                    - 30 -
   ANNEX IV
                         DECLARATION ON SOUTHERN AFRICA
   The European Council  welcomes the important changes that have taken
   place in Southern Africa since it met in Strasbourg.
   The European Council warmly welcomes the successful conclusion of the
   process of bringing Namibia to independence with a constitution based on
   multi-party democracy and human rights.  The European Community and its
   member States will continue to give aid and support to the people of
   Namibia as they build their new country, in particular in the framework
   of the new Lomé Convention. They welcome the talks which have taken place
   between the Angolan Government and UNITA under Portuguese auspices.  They
   look forward to the resolution of the conflict in Angola and also of that
   in Mozambique through dialogue.
   The European Council greatly welcomes the significant changes that have
   taken place in South Africa in recent months:  the release of Nelson
   Mandela and of other political prisoners; the unbanning of political
   organisations; the substantial lifting of the state of emergency; the
   commitment by the Government to abolish the apartheid system and to
   create a democratic and non-racial South Africa, and its willingness to
   enter into negotiations on the future of South Africa with the
   representatives of the majority.
   They pay tribute to the parts played in bringing about these changes by
   President F W de Klerk and Mr Nelson Mandela.  The efforts of President F
   W de Klerk to bring about a new era in South Africa are testimony to his
   foresight and courage.  Mr Nelson Mandela, a prisoner for 27 years, has
   inspired millions of South Africans opposed to apartheid and thereby
   amply demonstrated his qualities of statesmanship, qualities that will be
   required in the challenging period ahead in South Africa.
   The objective of the European Community and its member States is the
   complete dismantlement of the apartheid system, by peaceful means and
   without delay, and its replacement by a united, non-racial and democratic
   state in which all people shall enjoy common and equal citizenship and
   where respect for universally recognised human rights is guaranteed.
   They welcome the joint commitment between the South African Government
   and the ANC in the Groote Schuur Minute to stability and a peaceful
   process of negotiations. They call on all parties in South Africa to
   endorse this objective.  It is the intention of the European Community
   and its member States to encourage, by every means available to them, the
   early opening of negotiations leading to the creation of a united, non-
   racial and democratic South Africa.
                                    - 31 -
   Negotiations on a new South Africa should get under way without delay.
   The substantial progress made towards removal of the obstacles
   represented by the state of emergency and the detention of political
   prisoners is welcome.  The European Council  looks forward to early
   agreement between the South African Government and the ANC on the
   conditions in which exiles can return and on the definition of political
   prisoners leading to their release. The European Council calls on all
   parties to remove the remaining obstacles to peaceful negotiations and to
   refrain from violence or advocacy of violence.
   The European Council fully recognises that a new post- apartheid South
   Africa should be able to avail itself of all the economic resources,
   including access to external finance, required to ensure its future
   prosperity and the full development of all its people.  South Africa
   faces acute socio-economic problems, especially in the areas of
   employment, education and housing, against a background of a high rate of
   population growth.  These problems have been greatly exacerbated by
   apartheid.  Positive action is needed to rectify imbalances.
   Through the programme of positive measures, the Community has, for a
   number of years, been providing assistance to the victims of apartheid.
   In the light of the recent developments in South Africa and as a strong
   signal of political support to those disadvantaged by apartheid and of
   the will to contribute to a new socio-economic balance, the Community
   intends to increase the funds being made available under its programme
   and to adapt the programme to the needs of the new situation, including
   those connected with the return and resettlement of exiles.  It welcomes
   the positive attitude being displayed by all parties, including the new
   South African Government, to such programmes.
   At its meeting in Strasbourg in December last, the European Council
   decided that the Community and its member States would maintain the
   pressure that they exert on the South African authorities in order to
   promote the profound and irreversible changes which they have repeatedly
   stood for.  The European Council affirms its willingness to consider a
   gradual relaxation of this pressure when there is further clear evidence
   that the process of change already initiated continues in the direction
   called for at Strasbourg.
                                    - 32 -
   The European Council holds the view that the new South Africa, which will
   have harnessed the full richness, not only of its physical, but also of
   its abundant human resources, has the potential to act as a stimulus for
   growth in the Southern African region.  The European Council looks
   forward to being able to welcome, in the near future, a new, democratic
   and economically prosperous South Africa as it takes its proper place as
   an African nation in the international community.
                                    - 33 -
   ANNEX V
                        DECLARATION ON THE MIDDLE EAST
   The European Council recalls its long-standing position of principle on
   the Arab-Israeli conflict in the Middle East. It is determined to
   encourage all efforts to promote dialogue between the parties directly
   concerned leading to the negotiation of a comprehensive settlement
   consistent with the principles it has set out, beginning with the Venice
   Declaration ten years ago and further developed since, notably in the
   Madrid Declaration.  This settlement should be found in the framework of
   an international peace conference under the auspices of the United
   Nations with the participation of the PLO. The European Council expresses
   its support for every effort by the permanent members of the Security
   Council to create a climate of confidence between the parties and, in
   this way, to facilitate the convening of the international peace
   conference.
   The European Council welcomes the commitment to continuing the  peace
   process expressed in the letter to the President of the European Council
   from the Prime Minister of Israel.  The European Council hopes that it
   will be followed in practice.  It stresses the urgent need for Israel to
   begin a political dialogue with the Palestinian  people which could lead
   to a comprehensive, just and lasting settlement to the Arab-Israeli
   conflict. Such a settlement should be on the basis of Resolutions 242 and
   338 of the Security Council based on the principle of "land for peace".
   The European Council stresses that all parties have a responsibility to
   refrain from actions or statements which might impede steps towards
   dialogue and negotiation. Those who would choose violent over peaceful
   means for achieving political objectives cannot be allowed to prevail.
   Neither the taking of human life, whatever the circumstances, nor
   violence against civilians can play any part in achieving peace and
   reconciliation.
   Threats of war and of the use of weapons of mass destruction serve only
   to increase tension in the region and should be eschewed.  The Community
   and its member States have consistently condemned both threats and acts
   of violence in the region, whatever their origin.  In such a delicate
   situation, all channels of dialogue and negotiation should be kept open.
   The European Council is concerned that, by making territorial compromise
   ever more difficult, Israel's settlement policy in the Occupied
   Territories presents a growing obstacle to peace in the region.
   Reiterating that Jewish settlements in the territories occupied by Israel
   since 1967, including East Jerusalem, are illegal under international
   law, it calls earnestly on the Government of Israel not to permit
   settlements there. The European Council recognises and supports the right
   of Soviet Jews to emigrate to Israel and elsewhere. It is, however,
   firmly of the view that this right must not be implemented at the expense
   of the rights of the Palestinians in the Occupied Territories.
                                    - 34 -
   Recent events underline once again that the status quo in the Occupied
   Territories is untenable.  The lamentable position concerning the
   observance of human rights in the Occupied Territories has led the
   Community and its member States to set out repeatedly their concern. They
   are resolved to step up their already significant support for the
   protection of the human rights of the population of the Occupied
   Territories.
   In the present situation, and particularly with regard to the  protection
   of the population, the UN, too, can and should play a useful role.  The
   European Council supports such a role of the UN.
   The European Council refers to the obligation on Parties to the Geneva
   Convention Relative to the Protection of Civilian Persons in Time of War
   to respect and to ensure respect for its provisions.  The Twelve have
   repeatedly called on Israel to adhere to its obligations towards the
   Palestinian population in the territory under its occupation which is
   protected by that Convention. They have observed that it has notably
   failed to do so in a number of important areas. Concerned that the human
   rights of the population of the Occupied Territories continue to be
   inadequately protected, the European Council calls for further action, in
   accordance with the Convention, to ensure that protection.
   The European Council has reviewed the range of actions taken on the basis
   of the Strasbourg Declaration in order to arrest the deterioration of the
   economic and social situation in the Occupied Territories and to help to
   preserve the future of Palestinian society. It notes with satisfaction
   the significant increase of Community aid, particularly in the 1990
   programme of direct aid which is ready for adoption.  It confirms its
   determination to double direct Community aid by 1992.
   The European Council also expresses its satisfaction with the growth in
   exports of agricultural produce from the Occupied Territories to the
   Community.  It invites the Community institutions to take appropriate
   action for a rapid further improvement of the conditions of access to the
   Community market for Palestinian products and to examine further
   possibilities for increasing trade between the Community and the Occupied
   Territories.
   As an expression of the importance which the European Council attaches to
   facilitating the speedy and efficient  implementation of the Community's
   expanding programme for the benefit of the population of the Occupied
   Territories, the Commission is invited to appoint a representative to the
   Occupied Territories for this purpose at an early date.
                                    - 35 -
   ANNEX VI
                   DECLARATION ON NUCLEAR NON-PROLIFERATION
   The European Council strongly supports and is fully committed to the
   objective of nuclear non-proliferation. It believes that the further
   spread of nuclear weapons or other nuclear explosive devices would
   endanger stability and threaten regional and global security. The
   European Council attaches the greatest importance to the maintenance of
   an effective international nuclear non-proliferation regime and will make
   every effort to contribute to strengthening non-proliferation and
   encouraging the participation of further countries in the regime. The
   Treaty on the Non-Proliferation of Nuclear Weapons (NPT) is an important
   element in that regime. The Twelve Member States of the European
   Community, parties to the NPT or not, will work actively to secure a
   successful outcome to the discussions which will take place in the
   forthcoming months, and in particular the deliberations of the Fourth
   Review Conference of the NPT, and hope that those discussions will
   provide stable and assured solutions to the problems encountered by the
   international community in preventing the spread of nuclear weapons. The
   European Council expresses its concern that there is a continuing risk
   that further countries may acquire nuclear weapons and that a number of
   countries remain outside the non-proliferation regime. It calls on all
   states to join in efforts to eliminate this risk of nuclear
   proliferation.
   The European Council recognises the indispensable role played by the IAEA
   and its safeguards in the development of the peaceful uses of nuclear
   energy. It recognises that these safeguards are the cornerstone of an
   effective non-proliferation regime. The European Council reaffirms the
   need for the peaceful application of nuclear energy to take place under
   credible, effective and efficient international safeguards. In this
   connection, it recalls the important contribution of Euratom safeguards.
   For their part, the Twelve Member States of the Community have accepted,
   in accordance with their respective individual status, the exercise of
   international controls on their nuclear installations and apply
   contraints to their export policies. The European Council strongly
   supports the application of safeguards on as universal a basis as
   possible. It calls on other States to subscribe to similar commitments.
   The European Council believes in the need for an equitable and stable
   framework for international nuclear trade. The Twelve Member States of
   the European Community have collectively adhered to the Nuclear Suppliers
   Group Guidelines, thereby assuming a basic common discipline for their
   nuclear exports. The European Council expresses the hope that other
   countries will conduct their nuclear export policies on a similar basis.
   Within the framework of guidelines for nuclear trade, the European
   Council wishes to co-operate with all countries, especially developing
   countries. While maintaining and further developing the existing non-
   proliferation regime, the European Council will work to uphold the right
   of all countries to the development of research, production and use of
   nuclear energy for peaceful purposes.
                                    - 36 -
   In a context where several countries in various regions of the world
   perceive an increasing role for nuclear energy, the European Council
   believes that the development of the peaceful uses of nuclear energy
   should be inseparable from necessary action to eliminate the risk of
   proliferation of nuclear arms, and should be accompanied by the utmost
   attention to safety. In that regard the Twelve member States of the
   European Community have proposed that the IAEA convene a Technical
   Conference in 1991, to review the situation in the field of nuclear
   safety as well as to formulate recommendations on further measures for
   improving safety in order to supplement existing measures in this field.
   The European Council reaffirms once again its support for the objective
   of the non-proliferation of nuclear weapons and will continue to work in
   a spirit of dialogue and co-operation in order to enlarge the
   international consensus in favour of an effective non-proliferation
   regime.
                                    - 37 -
   ANNEX VII
                     DECLARATION ON THE IRANIAN EARTHQUAKE
   The European Council expresses its profound sympathy to the Government
   and people of the Islamic Republic of Iran at the terrible loss of life,
   injuries and devastation caused by the earthquake in northwest Iran on 21
   June.
   The Community and its member States wish to give all possible assistance
   to the victims of this disaster. They have already begun a substantial
   programme of relief and will give every consideration to immediate
   further aid and to reconstruction assistance.
   The European Council conveys the deep sympathy of the people of the
   European Community  to the injured and condolences to those families and
   friends who have been bereaved.
                                    - 38 -
   ANNEX VIII
                             DECLARATION ON CYPRUS
   The European Council discussed the Cyprus question in the light of the
   impasse in the intercommunal dialogue.
   The European Council, deeply concerned at the situation, fully reaffirms
   its previous declarations and its support for the unity, independence,
   sovereignty and territorial integrity of Cyprus in accordance with the
   relevant UN resolutions. Reiterating that the Cyprus problem affects EC-
   Turkey relations and bearing in mind the importance of these relations,
   it stresses the need for the prompt elimination of the obstacles that are
   preventing the pursuit of effective intercommunal talks aimed at finding
   a just and viable solution to the question of Cyprus on the basis of the
   mission of good offices of the Secretary General, as it was recently
reaffirmed by Resolution 649/90 of the Security Council.

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