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said that the question of where to locate secondary

institutions should be separated from the European Bank issue. The PUS acknowledged this logic; however some partners would

agree only to a total package. It was unlikely that the question would be resolved at Edinburgh. Ambassador Dorin asked if the UK objected to locating the European Bank in a

German city other than Frankfurt. The PUS said that we wanted the Bank to be located in London, but we had so far dealt with

the issue in our Presidency role. We knew that the French too were opposed to Frankfurt. Ambassador Dorin recalled that Lyon was a candidate.

5.

It

M Boidevaix said that the French and Belgians had reached a compromise on location of European Parliament meetings. remained for the other partners to endorse this. The PUS recalled other partners' reluctance to settle individual aspects without agreement on the whole package of European

institution sites.

6. The PUS asked if the Franco-German Summit had reached any

agreement on the question of an extra 18 MEPS for Germany.

M Boidevaix confirmed this; a technical formula should now be

found which could produce a geometrical increase in representation for the UK, France and Italy, and also take into account the competing demands of French and Flemish

speakers in Belgium. M Boidevaix added a note of caution. It was possible that this increase in MEPS might require

amendment of article 138 of the Maastricht Treaty; this could

entail re-ratification of the Treaty! He again thanked the

PUS for the extensive explanation of the UK's difficulties in ratifying Maastricht. These had clearly not been understood

in France.

European Security

7. The PUS welcomed efforts to bring the Franco-German Corps

into an acceptable place within NATO, although further

clarifications were still required.

He understood that the

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