CONFIDENTIAL
protocol. Discussion about possible provision of risk capital from
other budget lines still continuing but Commission have drawn
Yugoslavs attention to fact that decision about protocols reflects EC policy to phase out budgetary aid for middle income countries.
5. At a preparatory meeting of Ambassadors in Brussels on 2 April it became clear that there might be widespread support for Commission
proposals for improving mandate for financial protocol to provide
additional help to improve transit routes in Yugoslavia. The
Treasury subsequently agreed that, in order to avoid any focus on additional budgetary aid at the Corsendonk meeting, the Secretary of
State could, if necessary, indicate that his mind was not closed on
the question of EIB lending; but that there was only marginal room
for improvement and that no figures should be mentioned at this
stage. There is a theoretical margin of about 20 mecu unused under
the external lending ceiling.
European Community Department (External)
15 April 1987
CONFIDENTIAL