ISSN 0804-709X
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ATTN: PRESSE- OG KULTURKONTORET
THE ROYAL MINISTRY OF FOREIGN AFFAIRS
Press Division, Oslo
NORWAY DAILY NO. 108112/94 ARS/KJ
DATE: 9 June 1994
NORWEGIAN REQUEST FOR GAZA FUNDS (Dagbladet)
Norway is asking the world to put money into the new Palestinian
state treasury, which is empty. State Secretary Jan Egeland of the
Ministry of Foreign Affairs will be chairing a meeting in Paris
today and tomorrow upon which the future of Palestinian self-rule
may turn. The PLO has found that this year's budget for the Gaza
and Jericho enclaves has a deficit of NOK 1.2 billion. The world
community has pledged NOK 18 million in support of this historic
process for the next five years, but only trifling sums have
actually been granted for day-to-day finances. A lack of funds
during the first phase of self-rule could set the entire peace
process back, according to Mr. Egeland. Norway chairs the group of
international donor countries providing funds for Palestinian
self-rule. Norwegian Foreign Minister Bjoern Tore Godal has
written to his counterparts in 10-15 different countries, most
notably the USA, the EU and Japan, asking that funds allocated for
development projects at later stages be given now instead, in
order to finance the opening phase of the Palestinian
administration. Norway has set a good example by granting NOK 70
million, and Mr. Godal is prepared to give the Palestinian
administration even more if other donor countries do the same.
A CONCEALED FORTUNE IN OIL (Dagens Naeringsliv)
Minister of Industry and Energy Jens Stoltenberg controls equities
worth NOK 460 billion in Norwegian oil and gas fields. These
holdings are entered in the government accounts at less than a
quarter of this amount - NOK 103 billion. The years of heavy
investment and negative cash flow are a thing of the past, and the
state will now start earning dividends on these enormous
investments. The net cash flow from government holdings in oil and
gas equities will be between NOK 20 and 40 billion per year.
Through its programme of direct financial involvement in the
petroleum industry, the government owns enormous assets in the
form of equities in a number of oil and gas fields on the
Norwegian continental shelf. For projects in the development or
operating phase, government ownership shares vary from 20 to 73
per cent in 23 oil and gas fields. In addition to this, the state
has major ownership shares in a number of pipelines.
OIL INDUSTRY CASH FLOW (Dagens Naeringsliv)
The cash reserves of the Norwegian oil companies in foreign hands
are very low, and short-term debt is extremely high. In the oil
industry, liquid assets are used to reduce debt. Whatever is left
leaves the country in the form of dividends paid to the owners.
Foreign oil companies see no reason to keep their money in the
bank, according to a survey based on the 1993 accounts of the 300
biggest oil companies in Norway, prepared by DB Soliditet for the
Norwegian daily Dagens Naeringsliv.
WORTH NOTING:
- Norway provided NOK 18.9 billion in payments to its farmers last
year, according to a recent OECD analysis. Only Switzerland
granted more farm support in relation to production value.
- For the first time since 1989, emissions of carbon dioxide (CO2)
are on the rise, due to an increase in heavy vehicle traffic on
the roads and a higher rate of oil production, according to
figures from the Norwegian Pollution Control Authority and
Statistics Norway.
- Under pressure from the fishing industry, shipyards in northern
Norway are refusing to repair Icelandic-owned trawlers that fish
in the Loophole.
- A scant majority, consisting of representatives from the
Conservatives, Christian Democrats, Progress Party, Red Electoral
Alliance and independent representative Ellen Christiansen,
toppled the Labour/Socialist Left coalition on the Oslo Municipal
Executive Board. Severe criticism had been levelled at Health
Commissioner Kirsten Rytter, but this outcome still came as a surprise.
- The National Security Police conducted two illegal telephone
taps last year. The Security Police have admitted that they did
not obtain warrants before going ahead with bugging operations.
TODAY'S COMMENT:
We presume that there will be no need to mobilize our military
forces against an impending threat of occupation in the
foreseeable future. The problem, however, is that the chaotic
situation in Russia makes it impossible to see any further ahead
than next week. In the words of the late Johan Joergen Holst,
Minister of Foreign Affairs and before that, of Defence, "The
situation is one of insecurity and uncertainty." History shows
that the ability to predict events, even in the short term, is
extremely limited and often fails entirely. As Mr. Holst also
pointed out when he received the Norwegian Defence Commission's
report in 1992, "Given the country's exposed position on the world
map, Norway must maintain a reliable defence as its own national
insurance policy". Unfortunately, we must face the fact that we no
longer have the minimum defence capability that the Commission,
only two years ago, intended to be upheld. The Commission's zero-
growth policy for maintaining what it calls a minimum level of
defence has given way to a series of repeated cutbacks. As if a
decimated defence were not enough, the defence forces are being
saddled with a mounting number of civilian duties which further
undermine our military capabilities. Our defence has already been
weakened, and there is every indication that further cuts are in
store. We must now demand that Defence Minister Joergen Kosmo put
the brakes on and present the Storting with a detailed and binding
plan of action to restore the minimum level of defence that is so
essential to our existence. (Aftenposten)
DATE: 10 June 1994
BERNTSEN TIRED OF KOLA REPORTS (Aftenposten)
Minister of the Environment Thorbjoern Berntsen would like to halt
the endless stream of reports and visits by Norwegian experts to
the Kola Peninsula. "Countless trips from Norway to neighbouring
regions in the Russian north have produced little more than
various types of reports and analyses by government employees and
private consulting firms. We did require a reporting phase, by all
means, but enough is enough. Now we need to spend our money on
specific measures. Had all this funding gone to the Ministry of
the Environment, we would have seen definite results," says Mr.
Berntsen. He has no verified figures, but refers to press claims
that as much as NOK 100 million has been spent on environmental
trips and reports in the past few years. Although he never
mentioned the Ministry of Foreign Affairs by name, there is no
doubt as to which government institution was the subject of his
criticism. An intense and bitter conflict has been going on for
years between the Ministry of Foreign Affairs and the Ministry of
the Environment as to who should be responsible for dealing with
Russia's environmental problems. For the time being, the division
of responsibility gives the Ministry of the Environment everything
at sea, plus the nickel works on land, while the Ministry of
Foreign Affairs is responsible for nuclear waste dumps on land and
the wreckage of the nuclear submarine "Komsomolets" in the Norwegian sea.
SUPPORT SCHEMES TO BE REVIEWED (Dagens Naeringsliv)
The ESA, EFTA's supervisory agency, would like to meet the
Norwegian authorities in order to examine the Norwegian state
support schemes. This is apparent in the extensive correspondence
that has taken place between the Centre Party and Minister of
Trade and Shipping Grete Knudsen concerning supplements to the EEA
Agreement. In this connection, the Centre parliamentary group has
submitted 47 questions to Ms. Knudsen, which, together with her
replies, will be included as a supplement to the recommendation
submitted by the Storting's Standing Committee on Foreign Affairs
on Wednesday. The replies reveal, among other things, that the ESA
is in the process of preparing a survey of the state support
schemes in each country in the EEA. The ESA will assess the how
these schemes function in relation to the procedures laid down in
the EEA Agreement. The Norwegian authorities have provided
information to the ESA on the present Norwegian support schemes
and individual arrangements. The ESA has not yet given any
response on how it views the Norwegian support schemes. According
to Ms. Knudsen's reply, ESA representatives have requested a
meeting with the Norwegian authorities in June to discuss the
information submitted by Norway.
THORVALD STOLTENBERG MAY BE NEW NATO CHIEF (Verdens Gang)
UN peace envoy and former Norwegian Minister of Foreign Affairs
Thorvald Stoltenberg could be NATO's next secretary general if the
Norwegian authorities play their cards right, according to
informed sources at the NATO summit in Istanbul. Ill with cancer,
Secretary General Manfred Woerner is not attending the summit.
Verdens Gang's sources do not conceal the fact that the situation
is extremely delicate. Developments in the wake of communism's
downfall have put NATO to extraordinary tests. It is quite
inconvenient, therefore, that the secretary general is absent
month after month. "No one is in the least doubt that Norway would
like this job, and that Mr. Stoltenberg is a strong candidate.
Norway has made two previous attempts, both unsuccessful, to get
its candidate into this position. This is the last real chance
Norway may have for many, many years. It will be an extremely
delicate situation for the Norwegian authorities," say these sources.
CUBA TO RECEIVE NORWEGIAN AID (Arbeiderbladet)
The Norwegian People's Relief Association signed a cooperation
agreement with Cuba yesterday for a series of projects having a
total budget frame of NOK 1 million in 1994. The People's Relief
Association has budgeted NOK 2 million for 1995 and NOK 3 million
for 1996. The projects are part of the framework agreement between
the Norwegian People's Relief Association and NORAD. The three
projects to be launched this year are in line with Cuba's own
development assistance requests. In addition to urban and rural
development, they will concentrate on alternative sources of
energy for irrigation and drinking water.
WORTH NOTING:
- The NATO foreign minister summit is drawing to a close.
Norwegian Foreign Minister Godal will take the opportunity to
criticize the status of civil rights in the host country.
- Kvaerner and the Norwegian Navy will meet to decide the fate of
the mine clearance vehicles and, secondarily, of the shipyard in Mandal.
- The Government's health report will not be completed before the
Storting adjourns for the summer. The report is postponed until
the autumn session.
- Parliamentary chaos and political paralysis in Oslo. No one
wants to take the helm, but a new municipal executive board must
be elected on 22 June. The Conservatives are being blamed for the
muddle. The entire country is watching developments closely.
TODAY'S COMMENT:
The Norwegian economy has been making noticeable progress for some
time. The OECD has now determined that the world economy is
gaining new momentum, particularly the OECD countries in Europe.
These countries witnessed a 0.3 per cent drop in their aggregate
gross national product last year. This year they can expect a 1.9
per cent gain, rising to a solid 2.8 per cent next year, according
to the OECD's latest prognosis. All this may look like small
figures and slim margins, but these denote the difference between
growth and decline, pessimism and renewed optimism. The latter is
essential to the decisions to be taken that will maintain economic
growth in the medium and long term as well. (Aftenposten)
DATE: 13 June 1994
BUDGET COMPROMISE BETWEEN LABOUR AND CHRISTIAN DEMOCRATS
(NTB)
The Labour Party and the Christian Democratic Party
reached a compromise on the Revised National Budget on
Saturday. Under the terms of the compromise, VAT
compensation for certain food articles will not be lowered
and provision for employment programmes will be
maintained. The budget imbalance resulting from higher
expenditure and lower revenues will be partly covered by
raising taxes on cigarettes and electricity production.
The compromise also involves Christian Democrat acceptance
of contractual pension arrangements with a retirement age
of 64. Otherwise the compromise accommodates several of
the Christian Democrats' budget proposals.
WORLD CUP UNCERTAINTY AT NRK (Aftenposten)
Three of the four trade unions at the Norwegian
Broadcasting Corporation (NRK) went on strike on Saturday
night. The strikers are demanding a rise of NOK 10,000
across the board for all staff, while the NRK
management are offering NOK 5,000 unequally
distributed among staff categories. The management says it
is impossible to operate a modern media undertaking based
on equal pay. The last strike resulted in an additional
supplement of NOK 7,500 for NRK staff organised in the
Norwegian Union of Journalists. The remaining staff are
now calling for the same. World Cup: TV2, TV3 and TVNorge
could be in the running to take over World Cup
transmission rights in Norway, but NRK Director-General
Einar Foerde will decide whether or not to sell the rights
on Tuesday at the earliest. Both sides fear that the
dispute could last for a long time.
SWEDISH TITAN WANTS NORWEGIAN POWER PLANTS (Dagens N‘ringsliv)
Svenska Vattenfall wants to take over Norwegian power
plants. Local authorities holding assets worth billions of
kroner in local power companies may have a welcome
opportunity to salvage a precarious financial situation.
Foreign suitors will probably push up the price of
Norwegian power plants. Vattenfall produces more than half
Sweden's electricity, and wants to keep its position as a
Nordic giant if Sweden's nuclear power stations are closed down.
CAN'T BE BOTHERED TO SELL TO THE WORLD BANK (Dagens N‘ringsliv)
Norwegian firms can't be bothered to compete for lucrative
contracts with the World Bank. Whereas Swedish firms
signed contracts worth about SEK 800 million for the
bank's development projects in 1993, the figure for
Norwegian firms was a modest NOK 17 million. This is shown
by a study carried out by ECON - the Centre for Economic
Analysis - on the basis of World Bank purchasing
statistics. ECON asks whether Norwegian firms have
anything to gain by investing in this market. State
Secretary Asbjoern Mathiesen at the Ministry of Foreign
Affairs says that in the light of the study the government
will have to review its instruments and above all take a
look at the usefulness of consultancy funds. According to
Mathiesen, hopes that focusing on consultancy would create
spin-offs in the form of more contracts for Norwegian
firms have not borne fruit. The government will therefore
consider dispensing with consultancy funds. "The point has
not been to keep Norwegian consultants alive, but to help
Norwegian commerce and industry", says Mathiesen who will
now scrutinise the entire gamut of policy instruments.
LEADERSHIP OF NORWEGIAN RESEARCH COUNCIL STEPS DOWN (NTB)
Board chairman Ole Didrik Laerum and managing director
Svein Sundsboe of the Research Council of Norway withdrew
from their positions on Saturday with immediate effect.
Their departure was prompted by vehement criticism of the
way they handled strategic planning and of the working
atmosphere at the new Council which was established on 1
January 1993. This year the Council's budget is NOK 2.3
billion which is being used to fund national and
international research programmes.
WORTH NOTING:
- All-time high for the Centre Party which climbs 0.4
percentage points to 18.7 per cent popular support.
- Reasonable loans left unused. In Oslo less than NOK 50
million of the lending quota of NOK 215 million has
gone to home-seekers.
- The Government Industrial and Regional Development Fund
calls in a recent report for support to the tune of NOK
1,450 million to improve the competitiveness of
farm-based food industry. The government has already
proposed an immediate grant of NOK 200 million to the industry.
TODAY'S COMMENT
The Austrian people have come out resoundingly in favour
of EU membership with all of 66.4 per cent for and 33.6
per cent against. The result is also gratifying seen
through Norwegian eyes - regardless of one's views on
Norwegian membership. In the first place a large turnout
is a clear-cut advantage when momentous issues are to be
decided. Second, the Austrian vote has moved EU borders
further east and laid the basis for speedier integration
of central and east European countries. Third, it has put
a stop to right-wing nationalists with their xenophobia
and scaremongering about the environment. The Norwegian
anti-EU camp gathered in Trondheim on Saturday to discuss
strategy for the decisive weeks in the run-up to the
referendum on 28 November. Opinion poll figures for June
show that the anti-EU movement has advanced by 5 per cent
since May. Although the result shows a head start in
favour of the "Noes" if Finland and Sweden join the EU,
the anti-EU leadership knows that the Norwegian people
will also be influenced by what happens in the other
applicant countries.
DATE: 14 June 1994
FIRM BELIEF IN GUATEMALA (Aftenposten)
There was an optimistic tone and a firm belief in peace when
the parties to the conflict in Guatemala met in Oslo
yesterday. "I expect progress to be made and that negotiations
on the two issues on the agenda will be brought to
completion", said the UN peace negotiator Jean Arnault
yesterday morning before talks behind closed doors began in
Oslo between representatives of the government and the
guerilla forces in Guatemala. How should Guatemala handle its
reckoning with the past? This is the most touchy issue in the
entire process, and the hope is to resolve it in the course of
this week. In his welcome address to the envoys, Foreign
Minister Bjoern Tore Godal said that Norway is ready to make
its contribution to ensuring an economic basis for the peace
process. At the same time he emphasised that peace is more
than an absence of war, and can only be created by the parties
themselves.
KVAERNER AND NORWEGIAN NAVY AGREE ON MINESWEEPERS (NTB)
The Kvaerner Group and the Naval Material Command have agreed
that construction of the Navy's nine minesweepers should be
completed at Kvaerner's shipyard in Mandal. All 300 jobs at
the yard are safe once Kvaerner and the Navy reached agreement
on procedures and criteria for testing the minesweeper KNM
Oksoey, due to be handed over to the Navy by 10 July at the
latest. The other eight craft are to be delivered over a
three-year period. The Navy is paying a further NOK 207
million for completion of the total of nine craft, in keeping
with the supplementary appropriation by the Storting. Kvaerner
is adding this sum to the Mandal shipyard's equity capital,
and is raising its parent company guarantee in the project
from NOK 115 to NOK 165 million.
DRILLING IN SKAGERRAK A BOON FOR ENVIRONMENT (NTB)
On Monday the Storting decided by 96 to 54 votes to authorise
the government to start experimental drilling in the
Skagerrak, but on condition that the ministry makes a further
study of the environmental consequences, especially with
regard to the use of chemicals. The government will examine
the result of the study before giving the final go-ahead. "If
we find gas in the Skagerrak, it will be a boon for the
environment, not a problem", said Minister of Industry and
Energy Jens Stoltenberg when the Storting reviewed the
government report on the oil industry. The government's
decision to start exploratory drilling in the Skagerrak is the
most controversial aspect of the report, mainly because of
environmental concerns.
GERHARDSEN STILL MUNICIPAL COMMISSIONER (Aftenposten)
Rune Gerhardsen continues as chairman of Oslo's Municipal
Executive Board. The Labour and Socialist Left Parties refused
to accept the conditions set by the three non-Socialist
parties for forming a new board. "The Municipal Executive
Board threw down its cards for no good reason", says Michael
Tetzschner.
NRK STRIKE CONTINUES (Aftenposten)
News-hungry viewers are turning to TV2. More than 1.7 million
watched the TV2 news bulletin at 9 p.m. on Sunday, compared
with 315,000 last weekend. The strike at NRK (Norwegian
Broadcasting Corporation), continues and today the NRK
leadership will decide whether or not to sell the Norwegian TV
rights to the World Cup.
WORTH NOTING:
- In the past five years cash-dispenser charges levied by the
four major Norwegian banks have risen by 267 per cent.
- Over the past year, applications to defer repayments on
government educational loans, or for exemption from interest
payments on the same, have risen by 11 per cent.
- The tax authorities have been stopped at several military
units when attempting to examine staff pay statements for tax
control purposes.
TODAY'S COMMENT:
The decision of the Storting to defer exploratory drilling
operations planned in the Skagerrak until the consequences
have been further studied and assessed by the Government ought
to calm those most concerned with protecting resources in this
area. No drilling will be started until new studies show that
exploration and recovery of any reserves is safe. Opening up
new areas for exploration is not a question of how far the
current rate of extraction should be speeded up, but is the
result of decisions made long ago. Since it takes up to 15
years for new finds to reach a production volume on a
worthwhile scale, our children and grandchildren will be the
ones who stand to benefit from any new areas opened up for
exploratory drilling in our own time. Yesterday's decision to
start drilling in the Skagerrak is a natural consequence of
Norway's need for the oil and gas sector to remain a strong
sector of the economy well into the next century. To ensure
that it does so we must find more reserves, and viable fields
must be developed that produce oil and gas better and more
cheaply than today. We pin our faith in the Government's
intention to live up to Stoltenberg's assurance that "tax and
duty levels will be reviewed in the light of the oil price
trend" among other factors. (Aftenposten)
DATE: 15 June 1994
COAST GUARD CUTS TRAWL WIRES OF 4 ICELANDIC TRAWLERS (NTB/VG)
The Coast Guard severed the trawls of four Icelandic trawlers
fishing illegally in the fishery protection zone off the
Svalbard archipelago on Tuesday at about 6 p.m. Never before
have Norwegian authorities taken such drastic steps to halt
fishing operations in the protection zone. The safety of crew
on board the trawlers and the Coast Guard vessels was ensured,
and warning shots were fired at one of the trawlers. Norway's
response was decided at a meeting of senior Defence Ministry
officials yesterday morning, and conveyed to Defence Minister
Joergen Kosmo and Fisheries Minister Jan Henry T. Olsen
immediately after the meeting. They had no objections to such
drastic steps being taken against the trawlers. Cutting trawl
wires is one of the measures now being taken by Norwegian
authorities against vessels from newcomer states with no
fishing rights in the protection zone. The situation is
described as the most serious cod war ever to take place in
the Svalbard zone. Fisheries Minister Jan Henry T. Olsen
believes that cutting trawl wires is a sign of Norway's
resolute stance in its administration of the protection zone.
"This shows that we are prepared to apply instruments that can
put a stop to illegal fishing operations", says Mr. Olsen.
Press spokesman Ingvard Havnen at the Ministry of Foreign
Affairs does not believe that the Coast Guard's action will
affect Norway's relations with Iceland. "We believe we have
demonstrated our readiness to enforce the rules", says Havnen.
CENTRE PARTY, CHRISTIAN DEMOCRATIC PARTY AND SOCIALIST LEFT
PARTY AGAINST REFERENDUM LAW (NTB)
On Tuesday evening the Odelsting decided by 61 votes to 37 to
set 28 November as the date for Norway's referendum on joining
the EU. The Centre Party, Christian Democratic Party and
Socialist Left Party were so displeased by the decision that
they chose at the last moment to vote against the entire
referendum act. Their stance failed to win support from the
other anti-EU parties or from the Social Democrats against the
EU, and led to impassioned discussions outside the Storting
chamber. A long debate about the timing of the referendum is
now at an end. The election muddle in Oslo last autumn after a
computer breakdown persuaded the Odelsting to say no to
electronic registration at the referendum.
WHALING SEASON STARTS TODAY (Aftenposten)
The first of 189 minke whales could be killed today. This
quota was set by the government last week, and on Monday the
Directorate of Fisheries gave the go-ahead for hunting to
start. The quota is distributed among 29 whaling ships. The
biggest can kill nine minkes, the smallest five. Before
operations start, all harpoonists must be approved by the
Directorate of Fisheries' control unit. A veterinary officer
will accompany each boat to ensure that the hunt is conducted
in line with regulations. While the quota is somewhat larger
this year than last, about the same number of vessels are
participating. The Directorate has allocated about NOK 3
million to cover the cost of the accompanying inspectors.
WORTH NOTING:
- The 1994 agreement for the farming sector was adopted by the
Storting yesterday. The settlement lowers the price of milk,
dairy products and meat.
- Marianne Heiberg received the "European of the Year" award
yesterday from the French Catholic weekly "La vie". The award
was presented by President Mitterand.
- The anti-EU lobby increases its lead. According to Norsk
Gallup's latest polls 46.8 per cent are now against joining
the EU and 26.8 per cent in favour.
- Breaking up oil rigs for scrap is a new growth industry. A
total of 265 rigs costing between NOK 75 and 120 billion will
be removed from the North Sea over the next 20 years.
- No change in VAT compensation. The Odelsting has decided
that the state will pay the difference between the ordinary
VAT rate of 22 per cent and the VAT rate of 15 per cent on food.
TODAY'S COMMENT:
Yngve Haagensen is beset by no-to-EU resolutions in the trade
union movement. Eight unions affiliated to the Norwegian
Federation of Trade Unions (LO) have come out against Norway
joining the EU. No unions are in favour, and even at last
weekend's national congress of the Norwegian Union of Postal
Employees, which is a devout supporter of the Labour Party, no
attempt was made to rally support for a resolution in favour
of EU. Most likely, Haagensen's strategy will be that the LO
should not have views on EU, thus leaving him free to launch
himself and LO's ample resources into the debate as an EU
supporter when he sees fit. The anti-EU lobby must therefore
call for a resolution against joining, and if this is voted
down an EU-neutral resolution must be passed that compels
Haagensen to keep his mouth shut. (Klassekampen)