TNAG-2655-FCO40-3848-Extradition-cases-from-the-UK-and-France-to-Hong-Kong-Lorrai-1992 — Page 27

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impact on the parliamentary and public debate next year. agreement was reached on the main issues, this would prove that the entire process was coming together, and show that opponents of Maastricht were in isolation. M Boidevaix asked if the negative EEA vote in Switzerland would have an impact.

The PUS discounted this despite UK press speculation. M Boidevaix regretted similar problems with the press in

France.

3.

M Boidevaix raised the importance of EC financing. The

PUS said that many partners, including the UK, France and Germany, had taken tough decisions on public expenditure.

Domestic opinion would not understand how resources could be vastly increased for cohesion funds. A compromise on the

lines of the Presidency proposals should be possible. This

would virtually double cash available for cohesion, and remove

objections to enlargement. M Boidevaix said that President

Mitterrand and Chancellor Kohl were agreed on enlargement, as

a route to Europen Union. The PUS said that there should be

no misunderstanding. We wanted an early start to negotiations on enlargement but accepted that the EFTANS could not choose the EC à la carte. Applications to join would be based on the

acquis and Maastricht. M Boidevaix said that France, unlike

Germany, understood Spanish demands for cohesion funds.

would eventually, accept a compromise. Ambassador Dorin mentioned the UK abatement; Sir Leon Brittan's suggestion

which gave Spain an increase in funding without reducing the

UK abatement was an effective trade-off. Perhaps the recent

Swiss vote to reject the EEA would dispel unrealistic

expectations for an increase in cohesion funds, given that

Switzerland would have become a net contributor.

Spain

4. The PUS turned to the question of sites of EC

institutions; the UK undestood French concerns about Strasbourg. The key issue was the location of the European Bank. There were competing claims from several cities, but a

fairly widespread reluctance to accept Frankfurt. M Boidevaix

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