-Caveat Lector- >From The Times (UK) December 5 1998 EUROPE<Picture: Line> EU talks 'doomed to failure' Blair clashes with Chirac in cashback row BY JILL SHERMAN, CHIEF POLITICAL CORRESPONDENT, IN ST MALO A NEW row over Europe cast a shadow over Anglo-French relations last night when Tony Blair clashed openly with President Chirac over Britain's rebate from the European Union. M Chirac said critical talks on the future of the EU were "doomed to failure" unless Britain was prepared to negotiate over its annual �2 billion rebate. But Mr Blair, sitting just feet away from his host at the Anglo-French summit in St Malo, insisted he would not budge. Their sharp exchange left the Prime Minister evidently furious. Their two-day summit was designed to be a landmark meeting, highlighting new levels of cross-Channel co-operation and the signing of a historic defence deal. But the two leaders parted on a sour note. It also opened up a second front in the Government's current stand-off with some of its EU partners, shifting the focus away from the disagreements over tax harmonisation. In his introductory remarks at the closing summit press conference, M Chirac insisted everything should be discussed during the present talks over financial agreements for enlargement of the EU. "We need to put everything on the table and each should make a contribution to the overall agreement ... but it is not going to be easy for anyone," he said. Mr Blair made it clear, however, that the EU rebate was not up for negotiation. "We have made our position clear ... the British rebate is there for a particular reason and that reason remains." But M Chirac immediately hit back: "If we start with the principle that everything that is mine is mine and that everything that is everyone else's is negotiable then we are doomed to failure." He added, with Mr Blair glaring at his side: "We have just agreed with the Germans, French and the Italians that we must accept to put everything on the table and discuss everything. I don't mean that we give any undertakings about the outcome. But it is a methodology of approach - everything with an open mind." Pressed by journalists, a frosty Mr Blair said: "I stand by the British rebate. What is important is that we have full and positive discussions and every other country does the same." The argument overshadowed a declaration on European defence which was billed as the key achievement of the Anglo-French summit. Mr Blair and M Chirac signed up to an agreement of principle that the EU should develop its own military power. The French also agreed with Britain to try to secure a reprieve for duty free shopping, due to end next June. But despite what seemed to be a largely successful summit President Chirac appeared determined to put Tony Blair on the spot over Britain's EU rebate. Margaret Thatcher initially negotiated the rebate in 1984 at Fontainebleau. Currently Britain pays in about �8 billion and gets roughly �5.7 billion back in subsidies and grants, leaving a net contribution of about �2.3 billion. Britain then receives a rebate of about �2 billion, which is expected to fall next year to �1.4 billion. Germany contributes about �15.8 billion and France �9.8 billion but both countries receive no rebate. Today eight member states pay in more than they take out . In descending order, they are: Germany, Holland, Sweden, Austria, Britain, France, Italy and Finland. The rest still take out more than they put in. ~~~~~~~~~~~~~~~ December 5 1998 EUROPE<Picture: Line> Britain and France sign up to defend Europe BY MICHAEL EVANS DEFENCE EDITOR THE European Union must be able to call on "credible military forces" to deal with crises, the British and French Governments declared yesterday at the end of a two-day summit in St Malo. Both Governments agreed that the highest priority should now be given to providing the EU with a defence policy that has forces to match, although they were adamant this development would strengthen Nato, not weaken it. When George Robertson, the Defence Secretary, was asked yesterday whether the aim was to strengthen the EU at the expense of Nato, he said the alliance would remain the cornerstone of European defence. Alain Richard, his French counterpart, agreed. But, with Britain enthusing about the Union taking on a defence role, M Richard indicated that there was little need for France to rejoin Nato's integrated structure. France, he said, was fully engaged in alliance operations: in the Former Yugoslav Republic of Macedonia, Nato troops led by a French general are to be sent as an "extraction force" to rescue the peace verification team in neighbouring Kosovo in an emergency. The new defence pact between Britain and France, drawing the two countries' military capabilities closer together, was signed aboard the Royal Navy destroyer, HMS Birmingham, at St Malo. The joint declaration said that the EU "must have the capacity for autonomous action, backed up by credible forces, the means to decide to use them and a readiness to do so in order to respond to international crises." It added that the new posture would revitalise a modern Atlantic alliance. British sources said this did not mean that Britain, France and other EU states would develop separate forces. Soldiers from EU countries which were members of Nato would be "double-hatted", available for a European mission or a Nato operation. But there is some discussion already about using the existing Franco/German/Benelux Corps as a basis for a new command structure. It is generally accepted that the corps has not been a success, but Britain and France are looking at ways of converting it into a European corps headquarters. Britain already commands Nato's allied rapid reaction corps based in Germany, and the Euro-corps HQ could operate in parallel with the alliance organisation. Britain and France are more alike in terms of military capability than any other European countries, with comparable firepower, including aircraft carriers, combat aircraft and nuclear deterrent.The two have considerable overseas commitments from their colonial days and have shared combat experience in the Gulf War and the Bosnian conflict. Next week Nato and the EU will for the first time hold a formal meeting to talk about a new defence relationship. ~~~~~~~~~~~~~~~ A<>E<>R The only real voyage of discovery consists not in seeking new landscapes but in having new eyes. -Marcel Proust DECLARATION & DISCLAIMER ========== CTRL is a discussion and informational exchange list. Proselyzting propagandic screeds are not allowed. Substance�not soapboxing! These are sordid matters and 'conspiracy theory', with its many half-truths, misdirections and outright frauds is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRL gives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. CTRL gives no credeence to Holocaust denial and nazi's need not apply. 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