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ATTN: PRESSE- OG KULTURKONTORET
THE ROYAL MINISTRY OF FOREIGN AFFAIRS
Press Division, Oslo

                  NORWAY DAILY  NO. 98-101/94    OeW/KJ

DATE:    26 May 1994

QUALIFIED US ACCEPTANCE OF WHALING (Aftenposten)
The USA and several other leading nations at the IWC's annual
meeting support a draft resolution that would constitute a
qualified consent to future whaling quotas on a scientific basis.
These countries thereby acknowledge that there are no longer any
objective grounds for rejecting scientific arguments for limited
whaling conducted on a sustainable basis. This is evident from a
confidential draft resolution which Aftenposten has had an
opportunity to examine. A central element of the resolution is a
requirement providing for a comprehensive programme of inspections
and observers to prevent violations and incorrect reporting of
catches. Future Norwegian whaling activities will also depend on
regular updating of data and population estimates. According to
the draft resolution, quotas are to be fixed according to
population estimates updated on the basis of thorough whale counts
conducted every five years. This is a continuation of the IWC's
previous policy.

FINLAND FIRST (NTB)
"No the EU" deplores the news that Finland will hold its
referendum on EU membership on 16 October, before Norway and
Sweden. "We have been expecting this. The Nordic governments,
which support accession to the EU, favour holding the referenda in
this order, with Finland leading the way to provide leverage for
accessionists first in Sweden and then in Norway. We strongly
deplore the decision of the Finnish government," says "No to the
EU" second-in-command Eva Nordlund. Secretary General Tor
Wennesland of the European Movement in Norway is glad the Finns
have made up their minds, conceding that the odds in favour of a
Yes majority are much greater in Finland at the moment than in
Norway and Sweden. Mr. Wennesland hopes that a majority vote in
Finland in favour of accession will encourage voters in the other
countries to follow suit.

NO NEW CENTRE COALITION (Arbeiderbladet)
"In announcing our own candidate for the job of prime minister in
last year's general elections, and all through the latest no-
confidence debate, the Centre party has made it clear that we are
prepared to accept the responsibility of forming a new government.
A government coalition between the Centre and the Conservatives
during this term is out of the question. Formal collaboration of
this type between the Centre and the Socialist Left is also
unrealistic," says Centre parliamentary leader Johan J. Jakobsen.

EU ELECTION WITHOUT ONGOING GALLUP  (Aftenposten)
Tomorrow the Government will submit its bill on the autumn
referendum on Norwegian accession to the EU. Minister of Local
Government and Labour Gunnar Berge says the bill would prohibit
publication of results of opinion surveys taken after people have
voted, until the polls close at 2100 hours on Monday. The
Governmoent also wishes to prohibit questioning people about their
voting at the polls.

ACCLAIM FROM ALL SIDES (Arbeiderbladet/Aftenposten)
Arabs, Palestinians and Israelis all applaud the appointment of
Terje Roed Larsen as the UN's top man in the Middle East. The
level of his position in the UN hierarchy had not yet been
determined last night, so it is unknown whether his title will be
Deputy Secretary-General or Assistant Secretary-General. He will
be based in Jerusalem and will take up his duties on 1 June.

WORTH NOTING:
- This year's whale meat will soon be in the shops. Prices up to
NOK 200 per kilo are not unlikely.
- The new bill on police services, and with it the issue of the
police officers' right to go on strike, will be further delayed.
- NORAD has decided not to fund the controversial dam project on
the Bio Bio River in Chile, which carries a NOK 18 million price
tag.
- The board of directors and the former top executives of UNI
Storebrand are being sued for NOK 300 million.
- SAS is improving, but is still operating at a loss. First-
quarter losses before taxes were SEK 101 million, as against SEK
1.5 billion for the same period last year.
- Polls indicate that a majority in Iceland favour membership of
the EU. At their June meeting, Iceland's social democrats will
probably recommend submitting an application to the EU.

TODAY'S COMMENT:
The appointment of Terje Roed Larsen by the UN Secretary-General
as special coordinator for the occupied territories is a great
honour, for Norway, for the mediation effort and most of all, for
Mr. Larsen himself. He saw the possibilities and resolutely
pursued them, acting with wisdom, determination and diplomacy and
winning the confidence of all parties right up to the top of the
UN. Quite an achievement. Since Trygve Lie's controversial years
as the first secretary-general of the UN, few Norwegian citizens
have held high office in the UN. Mr. Larsen will be stepping into
a newly-created position, and will henceforth be able to pursue
his mediation efforts with the added authority of a senior UN
official. In the excitement over the progress made in the peace
process thus far, it bears noting that being a representative of
the Norwegian government does not always provide maximum impact in
world politics. For Norway, this appointment means that the UN
will take over part of "our" mediation activities. The Ministry of
Foreign Affairs will now be able to devote more attention to
Norway's own interests than it has been able to for the past 8 to
10 months. However, the Norwegian diplomatic service should ponder
the question of why a diplomatic job at this level has been
entrusted to an "outsider". The answer is probably simple - our
Foreign Ministry has done too little for too long to promote the
intellectually demanding political analysis that is an essential
prerequisite for success at the highest levels of international
politics.  (Aftenposten)

DATE:    27 May 1994

ALL WHALES PROTECTED BELOW 40 DEGREES SOUTH  (NTB)
By a majority of 23, the International Whaling Commission (IWC)
voted to protect all species of whales below 40 degrees south
latitude. Japan voted against and Norway did not participate in
the vote. In explaining Norway's view before voting took place,
t`e Norwegian whaling commissioner, Karsten Klepsvik, pointed out
that there was no scientific basis for the southern ocean whale
sanctuary, and that it conflicted with the 1946 Whaling
Convention. Furthermore, every whale stock will receive due
protection through the revised management procedure. The decision
is a serious defeat for Japan, which must now discard its plans
for taking minke whales in southern oceans. The Norwegian-Japanese
proposal for a whale sanctuary below the 55th parallel, which
would not apply to minke whales, was defeated by 23 votes.

TRUTHFULNESS BRUNDTLAND'S TRADEMARK  (Dagbladet/Verdens
Gang/Aftenposten/NTB)
The leader of Social Democrats against the EU, Hallvard Bakke,
accused Prime Minister Gro Harlem Brundtland yesterday of
deliberately misleading the Storting by claiming that the Storting
would be free to decide whether or not Norway would take part in
the third phase of the EU's monetary union. "The Storting can
discuss the matter, but we are not free to choose whether or not
we wish to be a member or not. We have no choice but to go along
if the criteria are met and the EU so decides," said Mr. Bakke.
The Prime Minister touched on the issue in two replies and in her
final speech during the EU debate on 27 April. "Truthfulness has
always been the Prime Minister's trademark, and the Norwegian
people know this," said Labour chairman Thorbjoern Jagland, thus
pitting Hallvard Bakke's credibility against that of the Prime
Minister. "Saying that a Prime Minister has made a misleading
statement is a strong claim, but as long as Ms. Brundtland will
not give a straight answer, her statement to the Storting is still
misleading," says Christian Democrat leader Kjell Magne Bondevik.
Centre parliamentary leader Johan J. Jakobsen supports Mr. Bakke
in his claim that the PM has misled the Storting.

PLEASE ANSWER YES OR NO  (Verdens Gang)
"Should Norway join the EU - the European Union?" This is the
wording of the question Norwegians will be called upon to answer
on 28 November, the day Norway's affiliation to the European Union
will be decided in a referendum. Minister of Local Government and
Labour Gunnar Berge put the final touches on the referendum bill
yesterday, and will now submit it to the Storting. The referendum
is expected to cost NOK 70 million.

SERIOUS RADIOACTIVE ACCIDENTS ON PLATFORMS  (Aftenposten)
Most accidents on oil platforms occur in connection with the use
of radioactive sources in the boreholes. No one has been exposed
to significant doses of radiation, but for the oil companies,
radioactive leaks represent direct losses amounting to NOK 27
million. The reason is that when these highly radioactive sources
fall down the holes, the holes have to be sealed and operations on
the platform halted. Five serious radioactive accidents were
registered in 1993.

VIGOUROUS GROWTH - CUTS ADVISED  (Aftenposten)
Norges Bank's most recent figures indicate higher growth in
private consumption than anticipated in the revised national
budget at the beginning of May. Given the vigourous growth in the
Norwegian economy, the timing of a more stringent economic policy
has seldom been better, according to Governor of Norges Bank
Torstein Moland. He feels it is necessary to reduce the sizeable
fiscal budget deficit in order for the government to regain its
manoeuvrability and avoid the debt problems that other countries
are struggling with. Mr. Moland will not discount the eventuality
that this trend may have consequences for interest rates, but he
refrains from giving any fiscal policy signals.

WORTH NOTING:
- Unemployment is still dropping. 4.8 per cent of the labour force
is registered as completely out of work or on labour market measures.
- Labour and the Conservatives reject a proposal to amend the
Constitution to provide, among other things, an increase in the
number of Storting representatives by adding to the number of
seats at large.
- If Statoil is to have any future, it must become more
international than it is today, in the view of Minister of
Industry and Energy Jens Stoltenberg.
- Kaare Willoch, former chairman of the Defence Commission, has no
objection to using professional Norwegian soldiers if the length
of compulsory military service is reduced.

TODAY'S COMMENT:
Due to the dismantling of the Soviet Union and its ideology,
reductions in the Norwegian armed forces are in order. Among the
issues to be decided by the politicians is the matter of
compulsory military service. Should the length of service be
shortened substantially or should we reduce the number of
conscripts? Many military professionals believe that if the length
of military service is cut down to nine months, the proficiency of
the soldiers will suffer. One thing is certain, though - creating
an army with a significant element of professional soldiers is out
of the question. The principle of a citizen army is too good to be
scrapped. There are no easy comparisons, but there is nothing to
indicate that the armies of the UK or the USA are better than
those of other countries just because they no longer conscript
soldiers. On the contrary, the ability of a country to mobilize
motivated persons from the rank and file of its citizens must be a
source of strength.  (Vaart Land)

DATE:    30 May 1994

PARTIAL NORWEGIAN WHALING VICTORY (Aftenposten-Saturday/Sunday editions)
It looks as if the IWC will accept commercial whaling on the basis
of scientific criteria, though it will not yet grant Norway a
minke whale quota. This is viewed as an important step on the way
to international recognition of Norway's traditional taking of
minke whales. The USA, Germany, Australia and New Zealand,
previously so obdurate, were among the countries that proposed at
the annual meeting last night that the International Whaling
Commission should permit limited catches of whale stocks that are
in no danger of extinction. However, this decision does not
empower the IWC immediately to grant quotas to Norwegian whalers.
The IWC should be able to ratify the Revised Management Procedure
within two years at the latest, according to Norwegian whaling
commissioner Karsten Klepsvik. This year, in contrast with
previous years, no resolution deploring Norwegian whaling was
adopted, only a mild oral reprimand.

OPPOSITION FROM OWN RANKS (Aftenposten-Saturday edition)
Prime Minister Gro Harlem Brundtland answered Hallvard Bakke
twenty-four hours after he denounced her for misleading the
Storting. "If the Storting is against participation in future
phases of the European Monetary Union, no power in the world can
compel us to take part," said the PM. The Government will submit
its report to the Storting on the results of the negotiations with
the EU next week. "It makes me shudder to hear claims that the
Prime Minister is deliberately misleading the Storting. If Mr.
Bakke persists in his claim that Gro Harlem Brundtland is
misleading the Storting, I might no longer be a member of the
Social Democrats against the EU when the referendum comes around,"
says Storting representative Gunnar Breimo.

SME VIEWS ON EUROPEAN SECURITY DON'T HOLD WATER (Aftenposten)
"Our security situation has never been better," claim the Social
Democrats against the EU (SME) in their arguments for staying out
of the EU. Many social democrats said the same in the 1930s. This
statement demonstrates their unwillingness to recognize that the
security policy map of Europe is now being completely redrawn. The
information they disseminate is "deliberately misleading",
according to Iver Neumann of the Norwegian Institute of
International Affairs. He feels the SME is inconsistent in its
views on the Western European Union. The SME is concerned that the
WEU is building up its military capacity, yet it criticizes the
WEU for not getting involved in the former Yugoslavia.

REJECTION OF EU WILL NOT TOPPLE LABOUR (Arbeiderbladet)
"If the government has to go, it will be because the Centre Party
shifts its position in relation to Labour and the Conservatives.
Should this occur, the situation will change entirely. I do not
anticipate this happening at this point, but the Centre has
changed sides before, and they can do it again. If EU membership
is voted down in the referendum, it will be important to salvage
as much of the EEA Agreement as possible. It would be bad for
Norway if we were saddled with a government that opposed the EEA.
If the people reject the EU, it will be essential for us to hold
onto as much as we can of Western cooperation," said Labour Party
chairman Thorbjoern Jagland after the meeting of the party's
national executive committee on Saturday.

EGELAND TURNED DOWN TOP UN POST (Verdens Gang-Saturday edition)
Another Norwegian was recently offered a leading position in the
UN. Secretary-General Boutros Boutros-Ghali wanted Jan Egeland to
take charge of UN peace-keeping forces worldwide. Mr. Egeland
wished to stay in Oslo, however, so he declined the offer. Highly-
placed sources in the Foreign Ministry have confirmed this to
Verdens Gang. "I do not wish to comment," says Mr. Egeland.

WORTH NOTING:
- Norway has been left out of a global task force formed to draw
up rules for drug inspections aboard ships in international
waters. This is a direct result of the fact that Norway has not
yet ratified the 1988 UN Convention on Narcotic Drugs.
- Norwegian officers who leave the military to work as sales
representatives for weapons manufacturers sell several hundred
million kroner worth of arms and other equipment per year to the
Norwegian defence authorities. A number of other countries have
regulations prohibiting this sort of switch, but Norway has no
such restriction.

TODAY'S COMMENT:
Chairman Halvard Bakke of the Social Democrats against the EU has
hit a disgraceful new low in his anti-accessionist argumentation
within the Labour party. Mr. Bakke accuses Prime Minister Gro
Harlem Brundtland of deliberately misleading the Storting in
saying that the Storting is free to choose whether or not Norway
will take part in the third phase of the European Monetary Union.
What Mr. Bakke has done is to accuse the PM of lying to the
Storting. Never before has a Labour PM been subject to a worse
accusation from a prominent party member and former minister. The
Prime Minister may have been vague at times in her references to
Norwegian obligations in the third phase, but claiming that she is
thereby deliberately misleading the Storting, and juggling her
actual statements, is going too far. The low level of Mr. Bakke's
argumentation is a sad blow to the accession debate, especially
when it is seconded by former Minister of Foreign Affairs Kjell
Magne Bondevik.  (Verdens Gang/ Arbeiderbladet-Saturday editions)

DATE:    31 May 1994

NORWAY JOINS MONETARY UNION AT OWN DISCRETION  (Dagbladet)
The European Commission is in full agreement with Prime Minister
Gro Harlem Brundtland's statement that the final decision to take
part in the third phase of monetary union is in Norwegian hands.
"It is highly unlikely that the EU would compel a country to
participate in the third phase of monetary union against its own
wishes, regardless of whether or not the economic criteria are
met," says European Commissioner Henning Christophersen. He
thereby dismisses the claim by Hallvard Bakke, chairman of the
Social Democrats against the EU, that the PM is misleading the
Storting. "In formal terms, the Maastricht Treaty does provide
that the monetary union will automatically go into effect as soon
as a sufficient number of countries meet the criteria - and
declining to take part would be a breach of the treaty. But the EU
is not based on compulsion. Participation is voluntary - we can't
force anyone if they absolutely refuse, of course," says Mr.
Christophersen.

THE PM IS WRONG  (Arbeiderbladet)
Chairman Hallvard Bakke of the Social Democrats against the EU
maintains his claim that Prime Minister Gro Harlem Brundtland has
provided incorrect information to the Storting. Mr. Bakke is
concerned that the debate provoked by his statements has focused
on his claim that the PM has misinformed the Storting, rather than
on the truth or falsehood of the information. Mr. Bakke takes
nothing for granted about what the EU countries will do when the
third phase comes around. "Anything is possible in theory, but the
issue here is whether or not Norway is entitled to reserve itself
against the third phase on the basis of the existing treaty and
the accession treaty we will have to sign when and if we join the
EU. But we have no choice. We are bound to take part if we meet
the criteria, which we already do," says Mr. Bakke.

COST ESTIMATE LEFT OUT OF EU REPORT  (Aftenposten)
The Government is not willing to take a chance on estimating the
real economic consequences of joining or not joining the European
Union. Nor are the limits for farm support to northern agriculture
defined in the Government's Report to the Storting on Norwegian
membership of the EU to be submitted on Friday. This report is a
central document in the political debate that will take place from
now until the referendum is held on 28 November. It is a final
statement of the Government's reasons for recommending Norwegian
accession, and every word of it will be weighed carefully. As
regards the consequences of membership, the report states that
Norway's gross contribution will be NOK 9.2 billion in 1995,
rising to over NOK 11.5 billion in 1999. What will be channelled
back to Norway in the form of EU support has yet to be determined,
as a number of agricultural issues, among other things, have not
yet been clarified.

NO TAX INCREASE FOR THE OIL COMPANIES (Dagens Naeringsliv)
Taxes on the oil companies will not be raised after all. The
Norwegian authorities did a complete about-face at the last
moment. The Ministry of Finance sent shock waves through the oil
industry at the end of last year when it announced new tax
regulations. Concern about the sustained flight of capital from
the big multinational oil companies prompted the Ministry to
propose that debt interest could no longer be deducted from the
surtax calculation base. Prime Minister Gro Harlem Brundtland
yesterday invited the entire industry to Stavanger to participate
in discussions concerning framework conditions on the Norwegian
continental shelf. Taxation was at the top of the agenda.

WATCHDOG AGAINST INFLATION  (Dagens Naeringsliv)
Keeping a lid on inflation is the cornerstone of the current
economic policy, and Norges Bank considers itself the foremost
watchdog in the effort. Future reports from Norges Bank will focus
particularly on the outlook for growth in prices and costs. In the
long term, it will not be possible to achieve the major goals of
the Government's long-term programme - sustainable growth and full
employment - if inflation is higher in Norway than in competing
countries, according to a speech delivered yesterday by Governor
of Norges Bank Torstein Moland.

WORTH NOTING:
- Idle trains and closed post offices will probably be the most
visible effects of today's protest by members of unions affiliated
with the Norwegian Federation of Trade Unions against conversion
of Norwegian Telecom to a state-owned corporation.
- The Ministry of Justice proposes that asylum applications from
Bosnians should not be processed until they have been in Norway
for at least three years.
- No one stood in the dock when criminal proceedings against the
saboteurs from Sea Shepherd were opened in the Lofoten and
Vesteraalen District Court yesterday. Paul Watson is in hiding
somewhere in Europe, planning new strikes against Norwegian
whaling vessels.

TODAY'S COMMENT:
There is sand in the works of the state machinery in charge of the
job given top priority by the Government - the fight against
unemployment. At the end of last year, NOK 2.2 billion still
remained of the amount allocated by the Storting for labour market
measures. When so much - 26 per cent - of the funds remained
unused, only two explanations are possible. Either the budget was
disproportionately large because the Government wished to display
its determination in fighting unemployment, or there is something
fundamentally wrong with the ability of the Directorate of Labour
to follow up on political decisions.  (Dagbladet)

DATE:    1 June 1994

MINESWEEPERS NOT GOOD ENOUGH  (Aftenposten)
An investigation by the Office of the Auditor General has revealed
weaknesses in one of the biggest and most important of the Navy
contracts. Since 1989, over NOK 1.4 billion has been paid for nine
mine-clearing vessels, but Kvaerner Mandal has yet to deliver a
single one of them. There "seems to be a substantial risk that the
Navy will have to accept vessels that do not meet the objectives
as originally specified," in the words of a statement from the
Office of the Auditor General. Among other shortcomings, they are
aware that the water jet system does not deliver sufficient
propulsion. Executives of the Kvaerner Group met with the Royal
Navy Logistics Command last night to work out a solution.

STORTING AGAINST DRILLING  (Aftenposten)
The Conservative parliamentary group will formally decide this
afternoon to turn down the Government's wish to allow exploratory
oil drilling in the Skagerrak. A majority will thus be voting
against the proposal, and Minister of Industry and Energy Jens
Stoltenberg has been criticized for "sloppy work on the Bill". Mr.
Stoltenberg countered the criticism in no uncertain terms. "We
circulated the bill among 179 institutions and organizations to
hear their views," he said, indicating that there was no reason to
print all the responses. "We put together a summary instead," says
Mr. Stoltenberg.

DEVELOPMENT OF THREE OIL FIELDS MAY BE POSTPONED  (NTB)
Norsk Hydro will probably suspend work on planning of the Norne,
Njord and Visund oil fields on the Halten Bank and in the North
Sea indefinitely. Four oil companies that hold rights in the Norne
field have asked Statoil, the operating company, to consider
postponing development. The background for their request is the
application of a sliding scale that automatically increases the
state's ownership share in the oil fields.

EU MEMBERSHIP WILL LEAD TO CRISIS BUDGET  (Dagens Naeringsliv)
The Government will have to raise a number of taxes and cut costs
drastically in the 1995 budget if Norway joins the EU, according
to information obtained by Dagens Naeringsliv. The reason is that
the cost of EU membership will have an immediate impact on the
fiscal budget. Minister of Trade and Shipping Grete Knudsen
underscores that the extra cost will not affect the Norwegian
welfare state. "The Government's long-term programme and the
solidarity package will continue to form the basis of government
policy. Cutting down on welfare is out of the question," she says.

ICELAND WILL NOT YIELD TO NORWAY  (Aftenposten)
"Iceland cannot stop fishing in the Loophole. These are
international waters," says Icelandic Prime Minister David Oddson.
"This issue should be settled by negotiations between the two
countries. We have told Prime Minister Gro Harlem Brundtland that
we are prepared to discuss the matter, so the next move is up to
Norway," he said. "We have been in touch at all levels, but we
have yet to reach a solution," says Assistant Director General
Marius Hauge of the Ministry of Fisheries.

SUDAN PEACE TALKS IN OSLO  (Vaart Land)
A new back-door channel for peace has been opened up in Oslo.
Representatives of the parties involved in the 11-year civil war
in Sudan are sitting at the negotiating table. Very little
information has trickled out, but there is no doubt that the
parties involved are taking these negotiations very seriously.
Foreign Ministry press spokesman Ingvard Havnen was not willing to
confirm that the negotiations are taking place.

WORTH NOTING:
Of the respondents who have made up their minds on the EU issue,
42 per cent are for accession and 58 per cent against, according
to the ScanFact EU barometer for May. This is a 1 percentage point
loss for accession and a 1 percentage point gain for the anti-
accessionists.
- The Norwegian Forest Owners' Association recommends its 57,000
members to vote against Norwegian membership of the EU.
- Canada tops the list in the UNDP world ranking of the quality of
life, followed by Switzerland$ Japan, Sweden - and Norway. And
Norwegian women, after Sweden, are doing best of all.

TODAY'S COMMENT:
Employees of Norwegian Telecom and a number of other government
agencies went on strike for one hour yesterday in protest against
plans to convert Norwegian Telecom from a government enterprise to
a state-owned corporation. The Government's proposal will receive
a clear majority in the Storting. The employees fear for their
jobs and feel that telecommunications services in outlying
districts will deteriorate. But Norwegian Telecom will still be
wholly owned by the state, with all the possibilities of political
supervision and control this implies. Norwegian Telecom is no
longer a monopoly, and must adapt to meet the competition. If it
doesn't, it could be left carrying all the unprofitable services
after the private corporations have skimmed off the cream. On the
other hand, restructuring must not be viewed as a step along the
path to privatization. Telecom services are an essential part of
our infrastructure, and are thus primarily the responsibility of
the state.  (Dagbladet)
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