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USD 1 = NOK 7.0 No. 35 - 2 November 1993
CONTENTS:
Holst endorses EC membership -"hTpe only option" (1)
Norway still an EC applicant (2)
Shares deal of the decade (3)
Hydro climbing to its target (4)
Prestigious contract to Norwegian architects (5
Norwegian woman appointed new UN expert (6)
International award to FAFO (7)
"Superskate" set to break all records (8)
Interest rates cut again (9)
DnB recovering (9)
Looking for gold and diamonds in Finnmark (9)
Norwegian police to train Palestinians (10)
Peace forest to be named after Holst (10)
norinform/1 2 NOVEMBER 1993
HOLST ENDORSES EC MEMBERSHIP - "THE ONLY OPTION"
In his first foreign policy address to the national assembly, Minister
of Foreign Affairs, Johan Joergen Holst issued a clear endorsement of
Norwegian EC membership. "Security considerations are a main reason for
this stance. Contagious and destructive nationalism can tear Europe to
shreds," he said. In his address Holst outlined the main problems facing
Europe and Norway after the fall of the Berlin Wall. "The nation-state
cannot meet the challenges alone," he said. "Cooperation with and within
the EC is the Norwegian government's answer," declared Holst, who
described the EC as the very foundation for Europe on the threshold of
the 21st century.
"Stability in our part of Europe could be strengthened by the Nordic
countries' membership in the Community, which would in turn create
political leverage for pulling Russia into Europe. This is a major
challenge for Norwegian foreign policy. There is today no real
alternative to the EC as a main framework for comprehensive political
and economic cooperation in Europe," said Holst. He also said that in
the government's opinion Norway's national interests are best served by
full participation in the further shaping of the new Europe, on a line
with Norway's neighbouring countries and others with whom it has strong
links.
Holst's statements were well received in the national assembly by
supporters of Norwegian EC membership. But the Euro-sceptics were
correspondingly critical. The leader of the main opposition party,
Centre, Anne Enger Lahnstein, said that the EC conflict has entered a
new phase now that the government has so clearly put its weight behind
an endorsement of Norwegian membership.
norinform/2 2 NOVEMBER 1993
NORWAY STILL AN EC APPLICAN
With a substantial majority - 105 votes to 51 - Norway's national
assembly, the Storting, last week rejected a proposal to withdraw the
country's application for membership of the European Community. The
proposal had been submitted by the Centre Party and the Socialist Left
Party, and it also received the support of nine Christian Democrats.
The majority that rejected the proposal consisted of representatives
from the Labour Party, the Conservatives, the Progress Party and four
Christian Democrats.
The Storting also voted down an anti-union proposal from the Socialist
Left, the aim of which was to gather support from EC opponents in the
Labour Party and opponents of European union in the Progress Party. No
mention was made of the EC application in this proposal but the
government was requested to clearly state to the EC that Norway does not
wish to take part in an economic union with a common currency and a
central bank. "A meaningless proposal," said Halvard Bakke, a Labour
Party representative and also a Euro-opponent.
The sole representative of the Red Electoral Alliance in the Storting
tabled a proposal that the newly elected Storting should again debate
the issue of Norwegian membership of the EEA. The proposal was rejected
by 112 to 39 votes.
norinform/3 2 NOVEMBER 1993
SHARES DEAL OF THE DECADE
The burgeoning profits now reported by Norway's major banks have
probably given Minister of Finance Sigbjoern Johnsen the shares coup of
the decade. After the giant bail-out operation which brought the banks
through the worst of the crisis, the state was left with controlling
interests in Norway's biggest commercial bank, DnB, as well as the
Kreditkassen and Fokus Banks. All in all the state pumped between USD 2
and 2.2 billion of public money into the three banks. Even when the
subsidies from Norges Bank, the central bank of Norway, are included,
the state will emerge from the bank crisis with solid economic gains.
The main cause of this remarkable development is the steep fall in
interest rates, which has enhanced the banks' results in several ways.
The interest differential has been improved, as has the loan customers'
ability to service their debts. The boom on the shares market also
covers bank shares. While banks were previously valued at four to five
times their annual profit, this figure has now climbed as high as ten.
The state's portfolio of bank shares is therefore worth more than the
entire bank rescue operation. Furthermore, the continuing downward trend
in interest rates will further boost the value of the shares.
The aim of the Conservatives, the Progress Party and the Christian
Democrats is to sell the state's bank shares over time. But at present,
there is a Storting majority against selling off the state's
controlling interest in DnB and Kreditkassen, even though this would
yield giant profits. The Minister of Finance has said earlier that the
state's shares in the banks would be reduced - partly through sales of
shares and partly through an increase of share capital. He stresses,
however, that the state will continue to hold a substantial number of
shares in the two major banks.
norinform/4 2 NOVEMBER 1993
HYDRO CLIMBING TO ITS TARGET
The flagship of Nowegian industry, Norsk Hydro, has posted an after-tax
profit of USD 410 million at te end of the first three quarters. This
3 is USD 40 million up on the same period last year. Oil and gas,
petrochemicals and fertilizers have all helped to push up profits
considerably while there was a slight fallback for light-metal alloys,
as a result of a difficult market, while fertilizer sales have
increased, though prices are unchanged and prospects are uncertain.
Bearing in mind the fact that Hydro's result has been strongly
influenced by its earnings on the sale of shares in the Freia-Marabou
group, and that last year's figures were based on slightly different
accounting principles, the actual improvement was USD 60 million. In the
third quarter alone, Hydro had an after- tax profit of USD 36 million,
compared with a correspondingly big deficit in the same period last
year.
The audit figures confirm that Hydro has started the long climb towards
its stated target - an operating receipts surplus of USD 1.4 billion by
1996. This year's surplus was USD 470 million, this too a clear
improvement on last year's USD 310 million.
"Hydro's various divisions are still labouring under adverse market
conditions. For this reason it is highly positive that operating
receipts have been boosted, not least through cost cuts and increased
oil production," says C.E.O. Egil Myklebust in a comment to the figures.
norinform/5 2 NOVEMBER 1993
PRESTIGIOUS CONTRACT TO NORWEGIAN ARCHITECTS
The Norwegian firm of architects, Snoehetta, recently signed the planning
and follow-up contract for the prestigious Bibliotheca Alexandrina, and
in one year's time parts of Snoehetta's operations will be moved to
Egypt. The contract will finally give Snoehetta the economic boost it has
waited for since 1989 when it won a hotly-contested international
architectural competition to design the new library in Alexandria. No
less than 650 architectural firms submitted designs for the huge
research library - a "reconstruction" of the most renowned building in
Alexandria's history. Within the turn of the century it will house a
collection of five million books.
Kjetil T. Thorsen of the Snoehetta firm signed the agreement with the
Egyptian minister of education Dr. Bahaa El-Din. Thorsen says that the
four year time lag since Snoehetta won the competition is a result of the
size and complexity of the structure. Prime Minister Gro Harlem
Brundtland and French President Francois Mitterrand were among those
involved in financing the multi-cultural project and several UN member
countries, including Norway, have contributed towards it. The price of
the project is put at USD 114 million. Snoehetta's share, which also
covers assistance from an Egyptian engineering firm, consists of about
12 per cent.
Work on the library project will keep Snoehetta fully occupied for
several years to come.
norinform/6 2 NOVEMBER 1993
NORWEGIAN WOMAN APPOINTED NEW UN EXPERT
UN Secretary General Boutros Boutros-Ghali has appointed Norwegian High
Court Judge Hanne Sophie Greve to the UN's expert commission for the
investigation of violations of international human rights in the former
Yugoslavia. Ms Greve's name was proposed by Minister of Foreign Affairs
Johan Joergen Holst and the appointment was later confirmed by the
Security Council.
The commission has its headquarters in Geneva. It was appointed by the
Secretary General last year and consists of five independent experts who
review information on violations of the Geneva conventions regarding
human rights in times of war. The work of the commission will form part
of the field of operations of the prosecuting authorities linked to the
UN war crimes tribunal for the former Yugoslavia.
Hanne Sophie Greve will succeed her compatriot, professor of law and
human rights protagonist Torkel Opsahl, who died recently. 41 year-old
Greve is a judge in the High Court in Bergen. She has gained
international experience through previous work for the UN in Cambodia.
norinform/7 2 NOVEMBER 1993
INTERNATIONAL AWARD TO FAFO
FAFO - the Norwegian Trade Union Centre for Social Science and Research
- has recently been named winner of the 1993 IPS award for its
contribution towards the peace process in the Middle East. IPS, the
Inter Press Service, awards the prize to individuals or organizations
who have distinguished themselves in work for greater social, political
and economic justice in the world community. IPS has the Third World as
its special field of interest.
The head of FAFO, Terje Roeed Larsen, received the prize in the presence
of UN Secretary General Boutros Boutros- Ghali during a ceremony in the
UN building in New York. Among those present at the event were former
Nobel Prize winner Oscar Arias and State Secretary Jan Egeland of the
Norwegian Ministry of Foreign Affairs.
The IPS award was founded in 1985 by the General Secretary of the UN.
last year's winner was deposed Haitian president Jean Bertrand Aristide.
In 1991 the prize went to Danielle Mitterrand, wife of the French
president for her work on behalf of the Kurds and for human rights.
norinform/8 2 NOVEMBER 1993
"SUPERSKATE" SET TO BREAK ALL RECORDS
Ten seconds chopped off the 10,000 metres race and half a second off the
500 metres. This is what speed skating experts believe will be possible
through the use of a new "superskate", the "Mach 1" which has been
developed by two Norwegians, former national team coach Finn Halvorsen
and senior engineer Jan Bratland. They have spent 12,000 hours during
the last eight years working on the development of the new skate - which
they describe as revolutionary, both in design and performance. The
superskate weights 45 per cent less than the traditional skates used in
long distance speed skating. Its merits are an even distribution of
weight and an anatomically perfect fit to the skater's foot. The skate
has an aerodynamic design and is made from composite materials.
Replacing traditional skates with the new one can be compared to using
fibre glass skis instead of the old wooden ones, say Halvorsen and
Bratland.
But for the time being, those thirsting for new records must bide their
time. There is only one pair of the superskates and they are 100 per
cent adapted to the feet of Norway's ace speed skater Johan Koss, who is
highly enthusiastic about their performance. A few minor adjustments
remain to be made before the skates can be put into production. This is
an exciting new product says the present national skating coach, Hans
Trygve Kristiansen, who would like to see the entire team using the
skates as soon as possible.
Meanwhile, big Norwegian companies are jostling to secure production
rights to what they believe could be a big export success.
norinform/9 2 NOVEMBER 1993
INTEREST RATES CUT AGAIN
On 26 October Norges Bank, the central bank of Norway, announced a 0.5
per cent cut in interest rates on both deposits and loans. Interest on
current account and overnight loans, i.e. interest on the bank's short
term deposits and loans from the central bank, now stand at five and
seven per cent respectively. The news of the cuts led to an immediate
fall in interest rates on the money market.
DNB RECOVERING
The head of Norway's biggest commercial bank DnB, C.E.O. Finn
Hvistendahl, recently announced presented a surplus of USD 103 million
for the first three quarters, of which USD 72 million derived from the
third quarter alone. During the bank crisis, the state granted DnB a
support package worth USD 910 million. "This is a fortunate
development," was the comment of Minister of Finance Sigbjoern Johnsen.
LOOKING FOR GOLD AND DIAMONDS IN FINNMARK
The world's biggest mining and prospecting company, Rio Tinto of the
United Kingdom, has been granted prospecting rights in an 18,000 hectare
area in Finnmark in northern Norway. The company has also submitted
applications for exclusive diamond prospecting rights in ten
municipalities in Finnmark. (See Norinform no. 34, 26 October 1993). In
Finnmark, the news of the applications has not been well received.
norinform/10 2 NOVEMBER 1993
NORWEGIAN POLICE TO TRAIN PALESTINIANS
In response to a UN request, Norwegian police will help the Palestinians
build up a police force in the new autonomous areas in the Gaza Strip
and Jericho. Police Academy department head Per Bleikelia is now in
Tunisia to discuss the problems facing the autonomous areas and the
resources needed to build up the new force. Bleikelia will hold talks
with, among others, the leaders of the Palestine Liberation
Organization.
PEACE FOREST TO BE NAMED AFTER HOLST
A commemorative Peace Forest in Israel will be named after Norwegian
Minister of Foreign Affairs Johan Joergen Holst. The new forest lies
south of Gaza, near the border to Egypt. The first 30,000 trees are
already planted, and a further 10,000 new trees will be added soon.
Backers of the Johan Joergen Holst Peace Forest are Norwegians who want
to honour Holst and his assistants for their efforts to bring peace to
the Middle East. The project is being organized by the Jewish National
Fund in Norway.
As a recipient, Holst will be in good company. The tradition started
more than 40 years ago when a forest was named after King Haakon in
1951. The late King Olav and other prominent Norwegians have been
similarly honour.
.