CONFIDENTIAL
COUNCIL OF MINISTERS (FOREIGN AFFAIRS) LUXEMBOURG,
26 27 APRIL
BRIEF NO 3. EC/YUGOSLAVIA
OBJECTIVES
1. To confirm common position that EC should not offer budgetary
aid to Yugoslavia.
2. If necessary, to confirm that UK could agree to marginal increase in EIB lending.
POINTS TO MAKE
1.
Yugoslavia feels threatened by processes of economic integration
in rest of Europe. Agree that Twelve need to show they recognise
this anxiety, and continue to attach importance to fruitful and
dynamic relationship with Yugoslavia.
For Yugoslavia to put own house in order by implementing more of
own stabilisation programme.
2.
3. EC offer on financial Protocol very generous (90% increase on
First Protocol).
4. Cannot agree to any budgetary aid. Yugoslavia not aid worthy.
GDP per capita too high to qualify: exceeds that of one member
state. However special Yugoslavia's case, would set precedent for
eg Israel.
5. If Yugoslavs can accept World Bank loans, which are
unsubsidised, should surely be able to benefit from EIB loans,
which are at more favourable rates, without needing interest rate
subsidy.
CONFIDENTIAL