THE EUROPEAN COUNCIL

MILAN28-29 JUNE 1985

Documents in the dossier include:

European Council in MilanReproduced from the Bulletin of the European Communities, No. 6/1985

Milan Summit Advances Eureka Project

European Community News No. 21/1985European Community Information Service

Washington DC

European Council in Milan

1. The European Council opened atthe Castello Sforza in Milan on the morningof 28 June and finished in the evening of 29June. Taking part were the Italian PrimeMinister, Mr Bettino Craxi, who took thechair, the President of the French RepublicMr Fran~ois Mitterrand , the Belgian PrimeMinister, Mr Wilfried Martens , the Chan-cellor of the Federal Republic of Germany,Mr Helmut Kohl , the Danish Prime Minis-ter , Mr Pol Schluter, the Greek Prime Minis-ter, Mr Andreas Papandreou, the Taoise~ach , Mr Garret FitzGerald , the LuxembourgPrime Minister, Mr Jacques Santer, theDutch Prime Minister, Mr Rudolf Lubbersand the United Kingdom Prime MinisterMrs Margaret Thatcher.

The Heads of State or Government wereaccompanied by their respective ForeignMinisters. The Commission was rep-resented by Mr Jacques Delors , Presidentand Mr Lorenzo Natali, Vice-President.Also present as observers were the PrimeMinisters of Spain and Portugal, FelipeGonzalez and Mario Soares, and theirForeign Ministers.

This was the first occasion on which theEuropean Council did not have to deal withurgent outstanding questions or settle dis-putes , but could look firmly to the future.

Mr Delors , taking stock of the Milan Sum-mit, said at a press conference: 'Firstly, asregards the Community dynamic , this meet-ing saw the emergence of a broader, deeperand in a way more serious awareness of thechallenges facing Europe than I have everseen or even read about. The meeting hasalso shown a more confident determinationthan usual to face up to these challenges.What further proof could be needed thanthe very great interest shown by the Euro-pean Council in our proposals on theinternal market and the problems of tech-nology, and on economic questions in gen-eral ... I believe, then, that this EuropeanCouncil will stand in the history of Europeas a kind of turning point in the Europeansresolve not only to survive, but to assertthemselves independently and to join forces

Bull. EC 6-1985

to tackle the main problems-which youare as familiar with as lam.

On institutional matters, Mr Craxi notedthat the political requirements were satis-fied for convening an intergovernmentalconference to draft a treaty on a commonforeign and security policy and, in accord-ance with Article 236 of the EEC Treaty, todraw up the amendments to the EEC Treatythat were needed to enable institutionalchanges to be made in the Council'decision-making procedure the Com-mission s executive power and the powersof Parliament, and the extension of Com-munity activities into new areas as proposedby the Dooge and Adonnino Committees.In the course of the European Council'sproceedings the Belgian , German, FrenchIrish , Italian , Luxembourg and NetherlandsGovernments came out in favour of holdingsuch a conference, while the British , Danishand Greek Governments were against theidea.

Mr Craxi concluded that the Presidencywould convene the conference once the for-mal procedures required had been com-pleted. The Spanish and PortugueseGovernments would be invited to take part.

Conclusions of theEuropean Council

Institutional affairs

2.2. The European Council held a wide-rangingdiscussion on the proposals of the ad hoc Commit-tee for Institutional Affairs set up at Fontainebleau,and the draft mandate of the Italian Presidency andin particular On the improvement of the Council'decision-making procedure, the enlargement of theEuropean Parliament s role, the Commissionadministrative powers and the strengthening ofpolitical cooperation in the general context of thetransition to European union.

It confirmed the need to improve the operation ofthe Community in order to give concrete form tothe objectives it has set itself, in particular asregards the completion of the internal market by1992 and measures to promote a technologicalEurope.

Milan European Council

The European Council noted that the Presidentof the Council would submit proposals for theimprovement of the Council's decision-makingprocedure, the exercise of the Commissionadministrative powers and the Parliament s pow~ers with a view to their early adoption.

The European Council discussed in detail the con-vening of a conference to work out the followingwith a view to achieving com:rete progress onEuropean Union:

(i) a treaty on a common foreign and securitypolicy on the basis of the Franco-German andUnited Kingdom drafts;

(ii) the amendments to the EEC Treaty in accord-ance with Article 236 of that Treaty, required forthe implementation of the institutional changesconcerning the Council's decision-making pro-cedure, the Commission s executive power andthe powers of the European Parliament and theextension to new spheres of activity in accordancewith the proposals of the Dooge Committee andthe Adonnino Committee, as set out elsewhere,and taking into account certain aspects of theCommission proposal concerning the freedom ofmovement of persons.

The President noted that the required majority aslaid down in Article 236 of the Treaty had beenobtained for the convening of such a Conference.The Portuguese and Spanish Governments wouldbe invited to take part in that Conference. TheBelgian , German , French, Irish, Italian , Luxem-bourg and Netherlands delegations were in favourof holding that Conference.

The Presidency would consequently take the stepsnecessary to convene that Conference with a viewto submitting the results for a decision by theHeads of State or Government at the EuropeanCouncil meeting in Luxembourg.

A people s Europe

1.2.3. The European Council thanked the ad hocCommittee on a People s Europe for its initialreport and for its final report submitted in Milan,both of which contained numerous concrete meas-ures aimed at involving the citizens of Europe moredeterminedly in the construction of the Com-munity.

With regard to the latter report, the EuropeanCouncil approved the proposals which it con-tained. Those proposals concerned inter alia citi-zens ' rights , culture, youth , education and sport.The European Council instructed the Commissionand the Member States , acting within their respect-ive powers, to take the necessary implementingmeasures, and instructed the Council to report

to it at its December meeting on the progressachieved.

The European Council accepted the suggestionsalong the same lines contained in the French mem-orandum on a People s Europe and emphasized inparticular the sections of that document COncern-ing young people, culture and health. In this Con-text, the European Council emphasized the valueof launching a European action programmeagainst cancer.

With regard to the measures contained in the initialreport and approved by the European Council inMarch 1985 , the European Council expressed itsconcern at the delay in implementing them andasked the Council, the Member States and theCommission, each acting within its own powersto take the necessary decisions to remedy thissituation as soon as possible.

Economic and social situation

1.2.4. The European Council discussed the econ-

omic and social situation on the basis of tworeports submitted by the Presidency on the futureof the EMS and on the problem of investment andemployment in the context of the implementationof the strategy defined in Dublin in December1984.

As regards the EMS , the Commission was invitedto continue its consideration of its development

including the role of the ECU, at Council meetingson economic and financial affairs and with theGovernors of the Central Banks.

As regards short-term economic policy, the Coun-Cil of Ministers for Economic and Financial Affairswas invited to consider the extent to which theconvergence which had already been achievedbetween the Member States in the field of inflationand imbalances made it possible to intensify thebattle against unemployment.

ana more general level , the European Councilinvited the Commission to submit to the EuropeanCouncil meeting in December a detailed reporton current inadequacies as regards growth andemployment in the European economy comparedto that of its major competitors amongst the indus"trialized countries and on the new strategies thatcould be implemented to remedy the situation.

Completion of the internal market

1.2.5. The Council welcomed the white paper oncompleting the internal market, submitted at itsrequest by the Commission.

Bull. EC 6- 1985

Milan European Council

1. It instructed the Council to initiate a preciseprogramme of action, based on the white paperand the conditions on the basis of which customsunion had been brought about, with a view toachieving completely and effectively the conditionsfor a single market in the Community by 1992 atthe latest, in accordance with stages fixed inrelation to previously determined priorities and abinding timetable.

Progress towards this objective should be bothgradual and visible and the European Counciltherefore requested the Commission to submit itsproposals swiftly and the Council to ensUre thatthey were adopted within the deadlines establishedin the timetable.

The following fields and measures were consideredto be of high priority: .

(i) the removal of physical barriers to the freemovement of goods within the Community;

(ii) the removal of technical barriers to the freemovement of goods within the Community (inparticular the adoption of common or compatiblestandards for major new technologies in order toopen up public purchasing and satisfy the needsof the economy);

(iii) the creation of a free market in the financialservices and transporr sectors;

(iv) the creation of full freedom of establishmentfor the professions;

(v) the liberalization of capital movements.

In deciding on the above measures the Communitywill make every effort to ensure that the creationof a single free market contributes to furtheringthe more general objectives of the Treaty includingthose of harmonious development and economicconvergence

2. As regards the method: application wheneverthe situation permits of the principle of the generalequivalence of the Member States' legislativeobjectives and of its corollaries: the fixing of mini-mum standards , mutual recognition and monitor-ing by the country of origin; an undertaking on thepart of the Member States not to take measuresthroughout the realization of the programme, thatwould have the effect of delaying the Communityachievement of the above objective.

3. As regards the approximation of VAT andexcise duties, the European Council invited theCouncil of Ministers for Financial Affairs to exam-ine on the basis of the white paper any measureswhich might be necessary for the achievement ofthe objective of a single market and the possibletimetable for the application of those measures.

Bull. EC 6- 1985

4. The Council of Ministers was asked to studythe institutional conditions in which the com-pletion of the internal market could be achievedwithin the desired time limits.

Technology

6. The European Council noted a collectiveeffort to master new technology was a conditionfor maintaining European competitiveness. Ittherefore decided to give the Community a newtechnological dimension.

The European Council approved and endorsedthe Commission report on the strengthening oftechnological cooperation in Europe.

The European Council gave its suppOrt to theFrench Eureka project for creating a technologicalEurope and to the Commission s constructive pro-posals in the same direction , and noted with inter-est the agree~ent already signed by several Euro~pean companIes.

It expressed the wish that the Eureka projectshould be open to those non-Community countrieswhich had already shown interest in taking partin it. France, the originator of the project, wouldcontinue the steps it was taking by convening, incollaboration with the Presidency and the Com-mission, an ad hoc committee before 14 July tohold a session on European technology. The com-mittee would bring together the Ministers forResearch or other qualified representatives of thegovernments of countries which had respondedpositively to the initiative and representatives ofthe Commission.

The European Council considered that these stepsshould exploit the Community dimension in orderto:

(i) establish a close link between technologicaldevelopment and the effort to unify the internalmarket, for example by means of practical incen-tive measures such as the Eurotype proposal;(ii) ensure that the technological effort wasclosely tied in with common policies , in particulartrade policy towards the Community s main part-ners;

(iii) reduce the risk of unnecessary duplication ofnational efforts and assemble a critical mass offinancial and human resources;(iv) obtain the maximum benefit from theimmediately available Community technical andfinancial instruments , including those of the EIB.

Japan1.2.7. The European Council examined the ques-tion of trade relations with Japan , in particular in

Milan European Council

the light of the serious concern which the Councilhad expressed at its meeting on 19 June and whichthe European Council fully shared.

More particularly, the European Council's dis-cussions were held in the context of the responsibi~lities which Japan shares with its Western partnersfor safeguarding and strengthening the system ofmultilateral trade.

The European Council endorsed the request madeby the Council that Japan should undertake to

increase significantly and continuously its importsof manufactured products and processed agricul-tural products; it also emphasized the importanceof liberalizing Japanese financial markets andinternationalizing the yen.

The European Council asked the Commission toput all these concerns to the Prime Minister ofJapan during his forthcoming visit to Europe.

Famine in Africa

8. The European Council , aware of the criti-cal situation confronting those African countriesaffected by drought, noted with satisfaction thatthe objectives of the Dublin plan had been achievedand that 1.2 million tonnes of cereals or theirequivalent had finally been mobilized by the Com-munity and the Member States to meet emergencyrequirements. It also welcomed the fact that twothirds of that aid had already reached the recipientsor was en route.

It felt, however, that new food aid requirementscould arise if the rains which had just started on thecontinent of Africa were again to be insufficient. Inthat context it welcomed the Commission proposalfor a special reserve allocation which would makeit possible to mobilize 500.000 tonnes of cerealsequivalent over and above the normal aid pro-gramme. The European Council instructed theCouncil meeting on development to examine thatproposal as a matter of urgency.

The Council was aware of the possibility that suchdisasters might recur and it considered it necessaryfor the future to set up a general coordinatedstrategy against short- and long-term drought, andin that context welcomed the Commission com-munication.

As regards the long term , the Council consideredit necessary above all to support the Africancountries' policy redirection effort in the field offood security. The Council noted that that objec-tive was included in Lome III and expressed thehope that the Member States would also give pri-ority in their national aid programmes to supportfor that policy so that together they would achievethe indispensable critical financial mass.

In the field of environmental protection , in particu-lar the battle against desertification , the Councilconsidered it vital , in the light of the importanceof present requirements. for all European aidCommunity and bilateral, to give priority to thattype of action , to give long-term commitments andto organize their contribution coherently by settingup an appropriate coordination structure.

EEC - Comecon

9. The European Council held an exchangeof views on the recent letter from Comecon tothe Commission of the European Communitiesproposing the resumption of their mutualrelations. It noted that an exploratory mandatehad been given to the Commission. It considersthat the results of these contacts should now beawaited.More generally, the Heads of State or Governmentalso discussed the interest in the political role ofthe Ten recently demonstrated in statements bythe Secretary-General of the CPSU.They noted these developments with interest.

Statements and comments

10. Mr Craxi' s statement at the end ofthe European Council was in general terms:Today s decision was a difficult and con-tested one, but it was eventually carriedbecause of the logic of political will andwhat is possible under the Treaty. Wewould have preferred a general consensusand unanimity, but these were not to behad. I believe we shall work steadfastly toovercome the obstacles set before us andto achieve the necessary consensus to goforward together towards the objectives ofEuropean Union... In Milan new initiativeswere born and new impulses are pushingout in different directions and into differentfields. The European Council has avoidedthe dangers of paralysis and regression , andits decisions have not disappointed expec-tations but have given legitimate groundsfor new hopes..

Mr Delors, replying to journalists' ques~tions, said ' the Commission had proposeda two-stage development, the purpose ofthe first stage being to achieve obj.ectives onthe internal market which would make itpossible to reconcile greater involvement by

Bull. EC 6- 1985

ent in the process of integration andr effectiveness in decision-making:

posal was not taken up by the Euro-ouncil... That is why Mr Craxithis morning to call an intergovern-conference... The Commission

ed Mr Craxi' initiative entirely,

was the only way to turn the spotlightpositions of all parties. At least weow where we stand; if we had waitedr year or two to find out, we shouldve made any progress..ent Mitterand stated at his final pressence that a 'process of examinationegun, a vote had been taken clearlyinting the approach to be followedparating those who wanted to moveds closer political union from thosedid not. The door was open and thetep had been taken towards what hethe ' moment ' of truth' or ' confron~. Mr Mitterrand also said that he hadber of reasons to be satisfied with

uropean Council: the adoption of then a technological Europe , the Eurekaent, the agreement on a people

e and the vote on institutional affairs... came here with high hopes , said

hatcher, but 'others ' had postponedrogress that could have been madeother conference. According to Mrsher, the European Council wouldbeen able to take 'practical' decisionswithout the need for an intergovern-I conference. Progress was possibleut amending the Treaty; as the presenties were still not fully operative theyd first be applied in their entirety.

who were in favour of the conferencerocrastinated. In any event, she addedital interest was at stake , either of thed Kingdom or any other country, itbe quite clear that the discussion mustntinued until unanimous agreementeached. The Luxembourg compromisebe respected.

cellor Kohl told the 'press that thispean Council had demonstrated the:;

Milan European Council

determination of those who felt thatchanges to the Treaties were essential if wewere to go ahead, even without unanimity

at this stage among the Community part-ners. Having said that, he expressed thehope that the United Kingdom in particularwould be able to cooperate in the initiativelaunched in Milan.

For the Belgian Prime Minister, Mr Mar-tens, the European Council had been aturning-point marking the end of Europeopposition to progress ; the intergovern~

mental conference should pave the way forthe adjustments which would undoubtedlybe necessary in a 12-member Community.

The Dutch Prime Minister, Mr Lubberssaid he was disappointed that unanimousagreement on an intergovernmental confer-ence had not been possible. In Mr Lubbersview the Treaties would in any case haveto be amended for practical reasons, suchas the completion of the internal market which would, he said , automatically lead tomore jobs in the Community. .

During the proceedings Mr Gonzalez, the

Spanish Prime Minister. spoke resolutely infavour of further integration. The Treatymust be respected, first and foremost, butthe Chair s proposals for more effectivedecision-making machinery should be sup-ported too. Mr Gonzalez condemned abus-ive recourse to the ' vital interests' clause:he was in favour of a restriction on the rightof veto.

The Spanish Prime Minister said he sup-ported the strengthening of political cooper-ation, but this should not detract from orreduce the role of the Commission. In hisview, enlargement proved that the Com-munity, despite the economic and insti-tutional crisis it was going through, had notlost its ability to make decisions.

European um muni ty

No. 21/1985July 1, 1985

Contact: Ella Krucoff(202) 862-9540

MILAN SUMMIT ADVANCES EUREKA PROJECT

The European Council (the ten Heads of State or Government of theEuropean Community) gave its support to the French EUREKA projectfor creating a technological Europe. An ad hoc committee ofResearch Ministers and representatives of the EC Commission willmeet before July 14 on this question. Progress on completing theinternal market and the removal of physical and technical barrierswithin the Community also was achieved.

By maj oritydecision the European Council called for the conveningof a conference to ~ork out the institutional questions ofEuropean Union. The Portuguese and Spanish Governments , presentat the Summit, will take part in that conference.

The communique adopted by the summit leaders follows:

CONCLUSIONS OF THE EUROPEAN COUNCILMILAN, JUNE 28-29, 1985

INSTITUTIONAL AFFAIRS

The European Council held a ~ide-ranging discu8sionon theproposals of the Ad Hoc Committee for Institutional Affairs set upat Fontainebleau, and the draft mandate of the Italian Presidencyand in particular on the improvement of the Council' decision-making procedure, the enlargement of the EuropeanParliament ' s role, the Commission s administrative powers and thestrengthening of political cooperation in the general context ofthe transition to European union.

It confirmed the need to improve the operation of the

o. 00 o

Washington office: 2100 M Street NW Washington DC 20037 I telephone (202) 862-9500 I telex: 89-539 EURCOMEUROPEAN COMMUNITY INFORMATION SERVICENew York office: 1 Dag Hammarskjold Plaza, 245 E 47th Street New York, New York 10017 I telephone (212) 371-3804

- 2 -

ColDiD.unity in order to give concrete form to the objectives it hasset itself, in particular as regards the co1llpletion of ~heinternal market by 1992 and measures to pro1llote a technologicalEurope.

The European Council noted that the President of the Council wouldsubmit proposals for the improvement of the Council' decision-making procedure, the exercise of the ColDiD.issionadministrative powers and the Parliament s powers with a view totheir early adoption.

The European Council discuss.ed in detail the convening of aconference to work out the following with a view to achievingconcrete progress on European union:

- a treaty on a common foreign and security policy on the basis ofthe Franco-GerJD.an and United Kingdo1ll drafts;

- the amendments to the EEC Treaty in accordance with Article 236of that Treaty, required for the implementation of theinstitutional changes concerning the Council' s decision-making procedure, the Commission ' s executive power and the powersof the European Parliament and the extension to new spheres ofactivity in accordance with the proposals of the Dooge Committee(Ad Hoc Committee on Institutional Affairs) and the AdonninoCommittee (Ad Hoc Committee on A People ' s Europe), as set outelsewhere, and taking into account certain aspects of theCommission proposal concerning the freedom of 1Ilovement of persons.

The President noted that the required maj ority as laid down inArticle 236 of the Treaty had been ob tained for the convening ofsuch a Conference. The Portuguese and Spanish Governments wouldbe invited to take part in that Conference. The Belgian, German,French, Irish , Italian, Luxembourg and Netherlands delegationswere in favor of holding that Conference.

The Presidency would consequently take the steps necessary toconvene that Conference with a view to submitting the results fora decision by the Heads of State and of Government at the EuropeanCouncil meeting in Luxembourg.

A PEOPLE' S EUROPE

The European Council thanked the Ad Hoc Committee on A PeopleEurope for its initial report and for its final report submittedin Milan, both of which contained numerous concrete measures aimedat involving the citizens of Europe more determinedly in theconstruction of the ColDiD.unity.

With regard to the latter report, the European Council approved

....

- 3 -

the proposals which it contained. Those proposals concerned interalia citizens' rights, culture, youth, education and sport. TheEuropean Council instructed the Commission and the member states,acting within their respective powers, to ta~ the necessaryimplementing measures, and instructed the Council to report to itat its December meeting on the progress achieved.

The European Council accepted the suggestions along the same linescontained in the French memorandum on a People s Europe and

emphasized in particular the sections of that document concerningyoung people, culture apd health. In this context, the EuropeanCouncil emphasized the value of launching a European actionprogram against cancer.

With regard to the measures contained in the initial report andapproved by the European Council in March 1985, the EuropeanCouncil expressed its concern at the delay in implementing themand asked the Council, the member states and the Commission, eachacting ~ithin its o~ powers, to take the necessary decisions toremedy this situation as soon ~s possible.

ECONOMIC AND SOCIAL SITUATION

The European Council dis.cussed the economic and social situationon the basis of two reports submitted by the Presidency on thefuture of the European Monetary Sy.stem (EMS) and on the problem ofinvestment and employment in the context of the implementation ofthe strategy defined in Dublin in December 1984.

As regards the EMS, the Commission was invited to continue itsconsideration of its development, including the role of theEuropean Currency Unit (ECU), at Council meetings on economic andfinancial affairs and with the governors of the Central Banks.

As regards short-term economic policy, the Council of Ministersfor Economic a~dFinancial Affairs was invited to consider theextent to which the convergence which had already been achievedbetween the member states in the field of inflation and imbalancesmade it possible to intensify the battle against unemployment.

On a more general level, the European Council invited theCommission to submit to the European Council meeting in December adetailed report on current inadequacies as regards growth andemployment in the European economy compared to that of its niaj orcompetitors amongst the industrialized countries and on the newstrategies that could be implemented to remedy the situation.

COMPLETION OF THE INTERNAL MARKET

The Council welcomed the white paper on completing the internal

....

- 4 -

market, subndtted at its request by the Commission.

It instructed the Council to initiate a precise program of action,based on the whtte paper and the conditions on the basis of whichcustoms union had .been brought about, with a view to achievingcompletely and effectively the conditions for a single market inthe Community by 1992 at the latest, in accordance with stagesfixed in relation to previously determined priorities and abindtng timetable.

Progress towards this objective should be both gradual and v:l..sibleand the European Council therefore requested the Commission tosubmit its proposals sWiftly and the Council to ensure that theywere adopted within the deadlines established in the timetable.

The following fields and measures were considered to be of highpriority:

- the removal of physical b.arriers to the free mov.ement of goods

within the Cotnl!lunity;

the removal of technical barriers to the free movement of goodswithin the Community (in particular the adoption of common orcompatible standards for major new technologies in order to openup public purchasing and satisfy the needs of the econom~);

- the creation of a free market in th~ financial services andtransport sectors;

- the creation of full freedom of establishment for theprofessions;

- the liberalization of capital movements.

1. In deciding on the above measures the Community w~n makeevery effort to ensure that the creation of a single free marketcontributes to furthering the more general objectives of theTreaty including those of harmonious development andeconondcconvergence.

2. As regards the method: application whenever the situationpermits of the principle of the general equivalence of the memberstates' legislative objectives and of its corollaries; the fixingof minimum standards, mutual recognition and monitoring by thecountry of origin; .anundertaking on the part of the member statesnot to take measures, throughout the realization of the program,that would have the effect of delaying the Community s achievementof the above objective.

. . . . . /

- 5 -

3. As regards the apprpximation of the Value Added Ta~ (VAT) and

excise duties, the European Council invited the Council

Ministers for Financial ,Affairs to examine on the basis of, thewhite paper any measures which, might be necessary for theachievement of the objective of a single market and .the possJ,.bletimetable for the application of those measures.

4. The Council of Ministers was asked to study the inst1tutionalconditions in which the, completion, of the inte-Pial market could beachieved within the desired time limits.

TECHNOLOGY

The European Council no tedthata, collective effort to m.a~ternewtechnology was a condition-. for mainta-ining European competitiven~ss. It therefore decided to give the, Community ~ newtechnological dimension.

The European Council- apprqved and , endorsed the Commission reporton the strengthening of technological ~ooperatipn in Europe.

The European Council gave its, support to the French, EUREKA projectfor creating a technological Europe and to the Commissionconstructive proposals in the Same direction, and noted withinterest the agreements already signed by several Europeancompmies.

It expressed the wish that the EUREKA project should be o~ep tothose non-Community countries which had already shown interest intaking part in it. France, the originator of thJ:~ proJect, w~~:continue the steps it was taking by convening, in collaboraH.with the Presidency _ and the Commission, an ad hoc, committee b~foreJuly 14 to hold a session on European technology. The committeewould bring together. the Ministers for Research or otheJ;q,ua:lifiedrepresentatives of the gove.rnments of Gountries , ~hich hAd -

" :,

responded positively to the initiati~e and representatives ofr~heCommission. ~

" ., ; , '" -

The European Council considered that these steps shouldexpl~ttthe Community dimension in order to:

.. '.. ' " -!;,

- establish a close link- between technological deveJ.opmeJ:1t t;l,n,q theeffort to unify t1).e int;eJro,al :market, for example by m,eans.o.f ,.practical incentive meaSures such as the "Eurotype" prop9s$,1;

- ensure that the techno19gical effort :was closely tied in withcommon policies, in. particular trade policy towards theCommunity s main p~rtne1:'8 ;'

- reduce the risk of uJ:1~eCe8sary duplication of national efforts

. . . . .

- 6 -

and assemble a critical mass of financial and human resources;

- obtain the maximum benefit from the immediately availableCOiDmunity technical and financial instruments, including those

the European Investment Bank.

JAPAN

The European Council examined the question of trade relations with

Japan, in particular in the light of the serious concern which the

Council had expressed at its meeting on June 19 and which theEuropean Council fully shared.

More particularly, the European Council' s discussions were held inthe context of the responsibilities which Japan shares with itsWestern partners for safeguarding and strengthening the system

multilateral trade.

The European Council endorsed the request made by the Council

Ministers that Japan should undertake to increase significantlyand continuously its imports of manufactured products andprocessed agricultural products; it also emphasized the importanceof liberalizing Japanese financial markets and internationalizingthe yen.

The European Council asked the Commission to put all theseconcerns to the Prime Minister of Japan during his forthcoming

visit to Europe.

FAMINE IN AFRICA

The European Council , aware of the critical situation confrontingthose African countries affected by drought, noted withsatisfaciton that the objectives of the Dublin plan had been

achieved and that 1. 2 million tons of cereals or their equivalenthad finally been mobilized by the Community and the member statesto meet emergency requirements. It also welcomed the fact thattwo-thirds of that aid had already reached the recipients or wasen route.

It felt, however, that new food aid requirements could arise ifthe rains which had just started on the continent of Africa were

again to be insufficient. In that context it welcomed theCommission proposal for a special reserve allocation which wouldmake it possible to mobilize 500, 000 tons of cereals equivalent

over and above the normal aid program. The European Councilinst ruc ted the Counc il of Ministers meeting on Development toexamine that proposal as a matter of urgency.

The Council was aware of the possibility that such disasters might

....

- 7 -

recur and it considered it necessary for the future to set up ageneral coordinated strategy against short- and long-term drought,and in that context welcomed the Commission communication.

As regards the long-term, the Council considered it necessaryabove all to support the African countries' policy redirection

effort in the field of food security. The Council noted that thatobjective was included in Lome III and expressed the hope that themember states would also give priority in their national aidprogr~s to support the policy so that together they would achievethe indispensable critical financial mass.

In the field of environmental protection, in particular the battleagainst desertification, the Council considered it vital, in thelight of the importance of present requirements, for all Europeanaid, Community and bilateral, to give priority to that type ofaction, to give long-term commitments and to organi~e theircontributions coherently

py

setting up an appropriate coordinationstructure.

E . C. - COMECON

The European Council held an exchange of views on the recentletter from COMECON (Council for Mutual Economic Assistance) tothe E. C. Commission proposing the resumption of their mutualrelations. It noted that an exploratory mandate had been given tothe Commission. It considers that the results of these contactsshould now be awaited.

More generally, the Heads of State or Government also discussedthe interest in the political role of the Ten recentlydemonstrated in statements by the Secretary-General of the CPSU(Communist Party of the Soviet Union).

They noted these developments with interest.