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MDHIAN 8675

VANCOUVER, LINKING WITHDRAWAL OF RUSSIAN TROOPS TO THE RIGHTS OF RUSSIAN RESIDENTS. THE SECRETARY OF STATE AGREED THAT YELTSIN'S LINE WAS UNACCEPTABLE, MRS AF UGGLAS THOUGHT THAT ESTONIA WAS THE BEST-PLACED REPUBLIC: THEIR ECONOMY WAS PERFORMING WELL SWEDISH INFLUENCE THERE WAS STRONG. LATVIA WITH MANY MORE RUSSIANS, WAS A COMPLICATED PICTURE, AND IN LITHUANIA PRESIDENT BRAZANSKAS WAS AT LEAST SO FAR USING THE RIGHT LANGUAGE.

ENLARGEMENT

6.

MRS AF UGGLAS SAID SHE WOULD BE SEEING KINKEL ON 27 APRIL AND CLAES ON 28 APRIL. HER AIM WAS SWEDISH ACCESSION WELL BEFORE 1996. THE SECRETARY OF STATE DESCRIBED THE DISCUSSION AT HINDSGAVLE, AND AGREED THAT IT WAS ESSENTIAL THAT NEW MEMBERS SHOULD JOIN BEFORE THE IGC. MRS AF UGGLAS THOUGHT THAT SWEDEN WOULD HAVE FEW SUBSTANTIVE PROBLEMS. AGRICULTURE, REGIONAL POLICY AND FREE TRADE WITH THE BALTICS WOULD REQUIRE SOLUTIONS. THE FOREIGN SECRETARY SAID THAT THE UK WOULD PRESS HARD FOR ENLARGEMENT, BUT WOULD BE WORRIED BY ANY ATTEMPTS BY EXISTING MEMBER STATES TO OBTAIN ADDITIONAL COMMUNITY RECEIPTS AS A RESULT OF ENLARGEMENT. WE WOULD ALSO SCRUTINISE THE TOTAL EXPENDITURE OF THE ENLARGED COMMUNITY. SPECIAL ARRANGEMENTS FOR SWEDEN WOULD BE MUCH EASIER IF FINANCED NATIONALLY. MRS AF UGGLAS POINTED OUT THAT THE SWEDISH NET CONTRIBUTION RISKED BEING UNACCEPTABLY HIGH. WE FLAGGED UP THE SENSITIVITY OF THE UK REBATE, AND MADE CLEAR THAT WE WOULD NOT TOLERATE ANY THREAT TO IT. THE SECRETARY OF STATE SAID THAT GERMAN, BRITISH AND COMMISSION SUPPORT AND PRESSURE FOR ENLARGEMENT WOULD BE CRUCIAL. THE COMMISSION WOULD HAVE AN IMPORTANT TECHNICAL ROLE, AND WOULD ALSO BROKER POSSIBLE SOLUTIONS. MRS AF UGGLAS, RESPONDING ON AGRICULTURE, SAID THAT SWEDEN'S REMAINING FARMERS WOULD WELCOME JOINING THE EC.

LEX BRITANNIA

7. THE SECRETARY OF STATE ARGUED THAT THE IMPACT OF THE PRESENT SITUATION WAS UNACCEPTABLE FOR BRITISH SHIPPING, AND PRESSED FOR EARLY CHANGES. MRS AF UGGLAS SAID THAT A SWEDISH JUDGE HAD BEEN

ASKED TO REPORT ON THE ISSUE, AND SHOULD DO SO BY THE END OF THE YEAR. THE SECRETARY OF STATE SAID THAT THIS PRACTICE WAS INCONSISTENT WITH THE EC TREATY, AND URGED THAT THE REPORT BE

PRODUCED MORE QUICKLY. THE BRITISH GOVERNMENT WOULD NOT BE ABLE ΤΟ

PREVENT BRITISH COMPANIES REFERRING SWEDEN TO THE COMMISSION.

MRS AF UGGLAS IMPLIED THAT SHE WOULD SEE WHAT COULD BE DONE TO

SPEED UP THE JUDGE'S REPORT.

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