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International Issues

17.

Norwegian response to the Gulf crisis is coloured by

the response of their (neutral) Nordic neighbours and the

unsuitability of their equipment for Gulf operations. Their military involvement in the Gulf is so far limited to one

3250 tone coastguard vessel, the Andenes, with a Lynx

helicopter and 80 crew to support a Danish corvette. The Norwegian Government is paying the costs of one support ship

to US forces in the Gulf and the charter costs of one tanker

and half its cargo of fuel. Norwegian ships are helping on

a commercial basis with the US "sea lift" of forces to the

Gulf. They have offered chemical decontamination kits in

the event of conflict. Humanitarian aid amounts to some

$20m dispersed through the UN and Red Cross. Total cash

contribution in the region of $40-50m. We calculate a

reasonable figure in terms of Norway's GDP would be around $150m and have told the Norwegians so.

18.

Whilst the Norwegians remain solidly behind the concept

of a European Economic Area, their approach to the EC/EFTA

negotiations has been ....... by internal political

wrangling. This appears to be coming to a head. Norwegian Foreign Minister Bondevik's response to Swedish Ministerial

statements in September suggesting the Swedes might apply

for EC membership, as early as 1993, confirmed Norway would

probably follow suit.

19. The Nordic countries operate as a group in the GATT Round. Their position in most of the negotiating groups is moderate and close to the EC, though more sympathetic to the

demands of developing countries for "special and differential treatment". They are also more protectionist on agriculture, reflecting traditional emphasis on food

security, regional, social and environmental aspects of

agricultural support. Like Finland and Sweden, Norway is concerned about depopulation in the North.

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