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ATTN: PRESSE- OG KULTURKONTORET

THE ROYAL MINISTRY OF FOREIGN AFFAIRS
Press Division, Oslo

NORWAY DAILY  NO. 123-127/94    OeW/KJ

DATE:    30 June 1994

EEA FISH COMPROMISE FINALLY LANDED (Aftenposten)
The Storting's consultative body for EEA affairs met yesterday for
the first time. Minister of Trade and Shipping Grete Knudsen was
able to tell the committee that the conflicts on the transit of
fish and protection against antidumping measures have finally been
resolved. The EU and EFTA were supposed to have settled these
issues by 1 January 1993, but negotiations continued almost a year
an a half longer than anticipated. The outcome is a compromise
that permits a number of interpretations. Ms. Knudsen states that
the Government has achieved its aims. The Centre Party's
representative on the committee, on the other hand, says that the
Government has failed to follow up on the aims outlined by the
Storting in its recommendation on the EEA Agreement. The
compromise recently reached between Norway and the EU permits EU
fishermen to truck their fish through Norway, but they may do so
only from designated ports, they must pay a charge, and they must
permit Norwegian quality inspection of the fish.

NEW EU V.A.T. RULES WILL BE A PROBLEM FOR NORWAY (Dagens Naeringsliv)
The European Commission will submit a proposal in October to the
effect that value-added tax on all goods is to be levied in the
country of origin rather than the country in which end-sale of the
goods takes place. These new VAT rules will put enterprises in
high-VAT countries, such as Norway, at a competitive disadvantage.
Norway currently levies a 22% general VAT. As a member of the EU,
Norway would be required to expand the categories of goods and
services on which VAT is charged. This is one area in which the
EEA Agreement and membership of the EU differ, as the former
contains no provisions dealing with VAT.

FOREIGN MINISTRY'S TOLL-FREE EU INFO LINE SWAMPED (Vaart Land)
The Foreign Ministry's toll-free EU information line has received
over two thousand calls in two days. With ten thousand written
questions in addition, it is obvious that the Norwegian people
have a tremendous need for information on the EU. Since
negotiations with the EU were concluded in Brussels, the Ministry
of Foreign Affairs has had a toll-free phone line for answering
questions on the EU. After a nationwide advertising campaign this
week, the number of calls has skyrocketed.

ONE STEP CLOSER TO COMPULSORY ARBITRATION (Verdens Gang)
The hospital strike will expand to twice the present number of
institutions on Monday, making compulsory arbitration all but
inevitable. The question is basically whether the Government will
take the decision tomorrow or wait until Monday. At this morning's
cabinet meeting, Minister of Local Government and Labour Gunnar
Berge will orient the Government on the status of the situation at
hospitals where nurses are on strike. He will also submit the
evaluation of the Norwegian Board of Health on the anticipated
effects of Monday's expansion of the conflict. It would appear
that any attempt by Mr. Berge to get the conflicting parties back
to the negotiating table at this point would be in vain.

WORTH NOTING:
- Hafslund Nycomed is spending around NOK 3 billion per year in
its effort to become the world's number one supplier of contrast
media. The firm is in the process of buying the contrast media
division of Sterling Winthrop, a US pharmaceutical firm.
- The diocese of Nord-Haalogaland in northern Norway will
implement an extensive project of ecclesiastical contact and
collaboration in the Barents region.
- Only 35 per cent of Norwegian soldiers feel they are adequately
prepared for a combat situation upon completion of their basic
training. They feel they need more training in the use of weapons
and in combat techniques, more practice and more physical training.

TODAY'S COMMENT:
An era in the defence of Norway comes to an end today. After 43
years, NATO is moving its northern command headquarters from
Kolsaas, just outside Oslo, to High Wycombe, near London, as a
smaller, subordinated joint command is being dedicated at Jaattaa
in Stavanger. This new arrangement is a result of the fall of the
Iron Curtain and of the Soviet Union. It has been approved by the
Norwegian Government, yet it is a sign of the increasingly
marginal position of Norway - militarily and politically - in the
emerging European landscape. The fact that NATO, for most of its
existence, was opposed by precisely those left-wing groups that
have now embraced NATO in their opposition to the EU, is one of
the political scene's more peculiar paradoxes. It certainly does
not bespeak intellectual or political clearness of thought,
because in the context of the EU and the Western European Union,
NATO is assuming a broadening role as the real military defence of
a broad European cooperation movement which is in a state of
expansion from month to month at present. Norway will continue to
play its part in a defence organization in which integration is a
key concept, even at the division level. The age of national
military machines is drawing to a close in Europe. A new age has
come to us, too, exemplified in the NATO headquarters at Jaattaa
which house allied and national command functions under one roof.
(Aftenposten)

DATE:    1 July 1994

GOVERNMENT HALTS STRIKE (Arbeiderbladet)
The hospital strike lasted only three days this time after the
Government decided yesterday to step in and order compulsory
arbitration. The reason given for the Government's action was that
a number of grave consequences were starting to build up.

COMPULSORY ARBITRATION IN OIL CONFLICT (NTB)
The Government ordered compulsory arbitration to avert a major
labour dispute on the North Sea installations. "The Government is
unable to take responsibility for a situation in which all oil and
gas production comes to a stop," said Minister of Local Government
and Labour Gunnar Berge after a meeting with the conflicting
parties. According to Mr. Berge, a conflict would cost the state
around NOK 1.7 billion per week in direct losses, or around NOK
250 million per day.

INTELLIGENCE SERVICES ACQUITTED (Arbeiderbladet/Aftenposten)
The Government commission appointed last year to investigate the
military intelligences services has concluded that there are no
grounds for criticism. "It may have been unwise for a prominent
person in the military intelligence services to have close ties to
the Labour Party. Otherwise, there was nothing improper or worthy
of censure to be found," according to Judge Agnes Nygaard Haug,
chairman of the commission. The commission has been working on the
case for nearly a year and feel "reasonably certain" that they
have got to the bottom of all accusations. No outsiders have as
yet gained access to the report. The Ministry of Defence reviewed
it last night to assess the suitability of releasing all parts of
it for publication.

DEATH SENTENCE DOES NOT APPLY IN NORWAY (Aftenposten/NTB)
The Iranian Embassy in Oslo has now guaranteed that the death
sentence in the Rushdie affair does not apply to Norwegians living
in Norway. This message from Iran's new ambassador, expressed in a
letter to Minister of Foreign Affairs Bjoern Tore Godal, comes in
response to Foreign Ministry demands for assurances that no
Norwegian citizens need fear death threats based on Khomeini's
fatwa against Salman Rushdie's book "Satanic Verses". "An
interesting, but equivocal signal. The fatwa is not withdrawn
hereby, so we must not be lulled into complacency by this letter,"
says publisher William Nygaard. According to State Secretary Jan
Egeland of the Ministry of Foreign Affairs, the Iranian embassy
has been informed from the highest quarters of the Norwegian
Foreign Ministry that the matter will not be considered resolved
to their satisfaction until the fatwa against Rushdie and his
associates has been annulled. Norway will therefore make an effort
to raise the pressure. Efforts are being made to get more
countries to unite in a stronger condemnation by the UN than that
issued last year prior to the autumn session of the General Assembly.

NORWAY DISCUSSES DEATH SENTENCE WITH DHAKA (Aftenposten)
Norway's charge d'affaires in India, Oddvar Laegreid, will meet
representatives of the government of Bangladesh tomorrow to obtain
additional information concerning the persecuted writer Taslima
Nasrin. "The fact of such a high-ranking diplomat taking up this
matter signifies the gravity with which Norway views the case. Mr.
Laegreid will convey the Norwegian concern for Ms. Nasrin's
situation, and ask the authorities to guarantee her safety. He
will also ask them to grant her permission to leave the country in
order to attend the symposium on freedom of speech that will be
held in Stavanger," says press spokesman Ingvard Havnen.

WORTH NOTING:
- Norsk Forsvarsteknologi AS has secured a contract with the Royal
Navy Logistics Command for advanced development of equipment for
submarines. The contract is worth NOK 250 million.
- Chairman of the Norwegian Federation of Trade Unions Yngve
Haagensen opposes an increase in the value-added tax, criticizing
the Finance Minister for attempting to curb the growth in consumer spending.
- Anti-whaling activist Paul Watson has stated that he will leave
the Netherlands on Friday afternoon, setting sail for northern
Norway and further anti-whaling actions.
- Coop Schleswig Holstein, the German retail food chain, has
halted its boycott of Norwegian products despite Norway's
resumption of whaling.
- Never before has there been as much rainfall in Bergen in June
as there was this year. A new record has now been set, breaking
the previous record set in 1864.

TODAY'S COMMENT:
The investigating commission led by Agnes Nygaard Haug has found
no evidence that the military intelligence services have engaged
in surveillance or bugging of Norwegian citizens, nor that any
individuals in the intelligence services have passed information
to anyone in politics. We have no choice but to accept the
conclusions of the commission, as their report is classified
secret. Whether or not Supreme Court Justice Ketil Lund and the
Storting's own investigating commission arrive at the same
conclusion remains to be seen. (Dagbladet)

DATE:    4 July 1994

NORDIC DEFENCE INDUSTRY COOPERATION (Aftenposten)
The governments of Norway, Sweden, Denmark and Finland will
cooperate more to maintain a competitive defence industry sector.
An agreement of intent has already been signed, and a more
permanent agreement is in the pipeline. "The market is so small
that we will have to specialize if we are to be competitive," says
Minister of Defence Joergen Kosmo. "Our aim is to get the defence
industry sectors of the Nordic countries to collaborate instead of
developing competing advanced technologies. We are in the process
of laying the political groundwork, but it will be up to the
industry itself to take advantage of it," says Mr. Kosmo. He
pointed out that binding agreements are a long way off.

MOLAND URGES NATIONAL LABOUR SETTLEMENTS (Aftenposten -
Saturday/Sunday editions)
Governor of Norges Bank Torstein Moland takes the view that wage
settlements should be coordinated by the Confederation of
Norwegian Business and Industry and the Norwegian Federation of
Trade Unions in order to keep wage hikes under control. He is
concerned that wages may grow too much, despite the high rate of
unemployment. When unemployment is no longer on the rise, the
danger of layoffs seems remote to those who are employed, as
pointed out in Norges Bank's latest quarterly report. Both the
Confederation of Norwegian Business and Industry and the Norwegian
Federation of Trade Unions absolutely reject the bank governor's
suggestion to coordinate settlements from the top. Both
organizations do share the bank governor's view that moderation
will be necessary for the next few years, however.

HAZARDOUS ANTI-WHALING ACTION (Dagbladet - Friday edition)
Five Greenpeace activists boarded the whaling vessel "Senet" in
the vicinity of the Ekofisk installations on the North Sea.
Whalers threw two of them overboard and the rest jumped
themselves. The harpoon gun was loaded when the Greenpeace
activists attempted to remove it. They disregarded the warnings of
the harpooner that the gun could go off. Greenpeace has now been
reported to the police. This is the first time the skipper of a
whaling vessel has reported the organization. The "Senet" is the
vessel that US activist Paul Watson attempted to sink in
Fredrikstad last January.

SEA SHEPHERD HAS PASSED BERGEN (Dagbladet)
Paul Watson is on his way north aboard the Sea Shepherd vessel
"Whales Forever". He passed Bergen last night on his way up the
Norwegian coast, trailed by a Norwegian Coast Guard vessel. They
may reach the whaling fields off Lofoten as early as Tuesday
evening. "I do not speculate as to what Mr. Watson may do. We have
our eye on the situation, but our involvement goes no farther. We
know what he has done before and we will note what he says or
does. There's nothing more to say about that," said Whaling
Commissioner Karsten Klepsvik.

HISTORIC DRAINING OPERATION (Arbeiderbladet - Saturday edition)
A major operation to empty the "Bluecher's" outside fuel tanks
will commence on 1 September. Advanced underwater techniques will
reduce the hazards of the operation to a minimum. Rockwater of
Stavanger has been awarded the prestigious contract for partially
disarming this "environmental bomb". The firm will employ unmanned
installations to pump the oil up and into a barge, and expect to
be finished by 1 December.

WORTH NOTING:
- A Gallup poll published on Saturday reports 39 per cent for and
61 per cent against Norwegian membership of the EU.
- Norway supports the negative Danish view of the European
Commission's pending proposal on new VAT rules, says Finance
Minister Sigbjoern Johnsen.
- After the Minister of Local Government and Labour stopped
strikes in the health care and oil sectors, Norway can expect
criticism from the International Labour Organization (ILO) for
repeated violation of the right to form unions and to bargain.
- The chairman of the National Gallery's executive board takes the
view that a change in security companies may be in order after a
skylight was found wide open Friday night.

TODAY'S COMMENT:
Despite generally positive attitudes towards the EU, many news
reporters here in Norway are critical of the European Commission
and many of the member states when it comes to their practising of
the rules on public access to administrative documents. In
comparison with established principles in Norway and Sweden,
standards of freedom of information in the EU leave much to be
desired. Improvements do appear to be in sight, however. The
Commission has submitted a comprehensive report which outlines a
new approach. According to the Office of the Commission in Norway,
the purpose of these changes is to render information "complete,
accessible and transparent". We look forward to seeing whether the
new routines and practices live up to this ambition. (Arbeiderbladet)

DATE:    5 July 1994

COAST GUARD PREPARED (Aftenposten)
The Coast Guard and the whalers have their strategy planned. As
soon as "Whales Forever" violates Norwegian law, the vessel will
be detained and escorted to a Norwegian port for prosecution. Sea
Shepherd's goal is to sink as many whaling vessels as possible.
"Whales Forever" is carrying a submersible which is able to enter
harbours unseen and sink whaling vessels. The whalers have no wish
to meet Paul Watson, and there is much to indicate that "Whales
Forever" will not see a single whaling vessel. Some have already
filled their quotas and returned to port. Around 20 vessels are
spread around the entire Barents Sea hunting whales, and they are
kept posted on Watson's position. "Our strategy is ready
regardless of what Watson does. It is the Coast Guard's duty to
see to it that lawful Norwegian activities are not hindered, so if
anyone tries to stop the whaling, we will step in," says Coast
Guard chief Torstein Myhre. Limited police powers have been
conferred on the Coast Guard so that it may take action against
unlawful acts aimed at lawful Norwegian whaling activities. Paul
Watson says his ship is armed with banana cream, water cannon and
stink bombs. He does not expect to be arrested.

EU DEREGULATION JEOPARDIZES GAS EXPORTS (Dagens Naeringsliv)
The Norwegian authorities are concerned that a free energy market
in the EU may put Norwegian gas exports in jeopardy. "The gas
market cannot be developed on the basis of pure free market
principles," says Minister of Industry and Energy Jens
Stoltenberg. Enormous investments, such as the Troll contract
costing NOK 120 billion, call for long-term planning and
predictability which does not exist under conditions of free
competition, in Mr. Stoltenberg's view. He emphasizes that plans
for deregulation will affect Norway profoundly regardless of the
outcome of the November referendum. "The countries of the EU are
not only our most important market, they will be the only market
for our gas and hydroelectric power if Sweden and Finland join.
Rules are now being formulated in this market that will affect
over one-third of our exports," says Mr. Stoltenberg.

EEA: A BOON TO ANTI-ACCESSION FARMERS (Verdens Gang)
"In Norway, jobs and the production of value, particularly in
rural areas, are more likely to suffer than benefit under the EEA
Agreement." This is the official view of the Norwegian Farmers'
Union. Yet thanks to the EEA, the British retailing giant Marks &
Spencer is now buying 6,400 kg of morello cherries from Norwegian
farmers. "Without the EEA Agreement, a 15 per cent duty would have
been levied on Norwegian cherries imported to the UK. We would
have lost out in this competition," says the Information Manager
of Gartnerhallen AS, Norway's major fruit and vegetable marketing co-op.

WORTH NOTING:
- All municipalities should levy property taxes to tap an
additional source of tax revenues worth a total of NOK 3 billion.
- The main trunk road between Oslo and Bergen will cost more than
originally anticipated. Minister of Transport and Communication
Kjell Opseth is not put off by a NOK 200 million budget overrun.
- Norway showed a NOK 8.1 billion surplus in the balance of trade
for January - February this year, down from NOK 10 billion for the
same period last year.
- Disorder in Postgiro's corporate accounts going back to 1985 may
lead to a reduction in its equity. Equity value was booked at NOK
663 million in 1993, but after an audit of the accounts, it may
have to be written down.

TODAY'S COMMENT:
US whale activist Paul Watson may only be a clown, but he's a
dangerous one. This was demonstrated at Christmastime in 1992 when
he attempted to sink the "Nybraenna", an act for which he was
sentenced in absentia to 120 days in jail by the Lofoten District
Court. The Norwegian Coast Guard now has limited police authority
empowering it to protect all Norwegian whaling vessels in inshore
waters, within the 200-mile economic zone and, for that matter, on
the high seas, as Norwegian vessels are considered Norwegian
territory.  However, the Coast Guard cannot detain Paul Watson,
who is a fugitive from Norwegian law, and bring him in to serve
his 120-day jail sentence, even within the Norwegian economic
zone. They could arrest him if he should start fishing in
violation of law. We must ask the Coast Guard to keep a closer eye
on Mr. Watson than they did on the Greenpeace activists. Paul
Watson's past performance and the judgement against him are good
indications that he may quickly cross the line, in which case the
Coast Guard should employ all lawful means to take him into
custody. Then we'll see if he is just a clown. (Verdens Gang)

DATE:    6 July 1994

CAUTIONS AGAINST NORWEGIAN RACISM (Aftenposten)
Social inequality between ethnic groups breeds prejudice and
discrimination, and it looks like Norway does little to keep such
attitudes from persisting, according to a comment written by
British law professor Michael Parker Banton. Mr. Banton is the
special reporter for Norway on the UN committee that monitors the
compliance of member states with conventions and treaties to
refrain from racial discrimination. The committee has observed
that the Norwegian authorities have been lax in applying existing
law to counteract racism. In support of its concern, the committee
points out that from 1982 to 1989, charges of racial
discrimination were brought in 510 cases, but only one was prosecuted.

DOUBLE MORALITY IN THE MUNICIPALITIES (Arbeiderbladet)
"It is frustrating to be criticized for a restrictive refugee
policy when the municipalities refuse to accept refugees. I call
that double morals," said Minister of Local Government and Labour
Gunnar Berge yesterday. Mr. Berge's message was that an open-
handed refugee policy in Norway depends on the municipalities
opening their doors to the refugees. The return of refugees to
their own countries is a central element in the Government's
policy. Mr. Berge emphasized that a dignified stay in Norway is
essential for a successful return of refugees to their homes.

HARD TIMES AHEAD FOR FARMERS IN THE SOUTH (Aftenposten)
Farmers in southern Norway will face major problems under EU
membership if the Government is not permitted to provide national
support to vulnerable agricultural regions. Current objectives may
be maintained for agriculture in northern Norway, however, if
Norway votes to join the Union in the referendum on 28 November.
This is the conclusion of a report prepared by the Norwegian
Agricultural Economics Research Institute and the Stiftelsen for
samfunns- og naeringslivsforskning on the effect of EU membership
on Norwegian agriculture. Political adviser Ingrid Norstein of the
Ministry of Agriculture maintains that the treaty with the EU
permits extra support to agriculture in the southern part of the
country. She maintains that there is no doubt on this point, even
though Norway and the European Commission have not yet arrived at
a common interpretation concerning this item of the agreement.

EXECUTIVES COUNT ON STATUS QUO IN EU (Dagens Naeringsliv)
An overwhelming majority of the managers of small and medium-size
enterprises favour accession to the EU, and are convinced that
membership will be good for the Norwegian business community. Few
believe that their own companies will have to adjust or that
wages, prices and jobs will be affected. This rather self-
contradictory conception of reality was revealed by a poll among
150 business managers.

WATSON IN NORWEGIAN WATERS (NTB)
Paul Watson's vessel, "Whales Forever", entered Norwegian
territorial waters this morning at the outermost end of
Vestfjorden. The Coast Guard cutter "KV Andenes" has kept the ship
in sight the whole time. Mr. Watson has not requested permission
to enter Norwegian waters, so his vessel is viewed as any other
ship violating Norwegian sovereignty. Before entering Norwegian
waters, Mr. Watson was in radio contact with the "KV Andenes"
several times, and received repeated warnings that he was entering
Norwegian territorial waters. Mr. Watson is reported to have
replied that there was no Norwegian land in sight, so he could not
see that he was heading towards Norway.

RECORD GROWTH IN AIR TRAFFIC (Nationen)
Free competition in the air, substantial increases in the number
of flights and a wide range of discounts have led to record growth
in air traffic. The number of passengers on the major SAS flights
has gone up 19 per cent since Norway deregulated on 5 April.
Braathen SAFE has had an overall increase of nine per cent during
the same period. Many feared that free airline competition would
lead to a large number of empty flights, resulting only in added
air pollution. These fears have proved to be groundless.

WORTH NOTING:
- The Salhus Bridge, the world's longest floating bridge, is 1246
metres long and weighs 14,500 tonnes. It was towed into place last
night and now links Bergen with north Hordaland.
- The Conservatives have rejected the proposal to levy property
taxes in all municipalities, while the Centre Party is willing to
consider.
- The Confederation of Norwegian Business and Industry and the
Norwegian Federation of Trade Unions would like to take control of
the occupational injury insurance scheme, and have called for a
reorganization to take effect on 1 January 1995.

TODAY'S COMMENT:
The national effort to get refugees out of the state refugee
admission centres and into permanent housing out in the
municipalities is going too slowly. The average stay of refugees
in the state centres before they are cleared for living on their
own is 14 months. Many have had to lead this undignified, passive
and protected existence for as long as three years after arriving
in Norway. It is unwise to subject refugees to this treatment,
whether they are eventually repatriated or whether they have come
to Norway to stay. Both groups do best if they can resume an
active life as quickly as possible and take responsibility for
their own affairs. Therefore, the state refugee centres should be
reorganized and based on active participation and self-help. (Dagbladet)

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