Alan M. Dukes
Question:79 Mr. Dukes asked the Minister for Foreign Affairs if the EC intends to attach conditions in relation to economic and political reforms to economic aid to the countries of the USSR.
Written Answers. - Economic Aid to USSR Countries.
The Community's policy as enunciated by the European Council in Dublin in June 1990 has been to provide support for the efforts of the Soviet Union to make progress towards a democratic system and a market-oriented economy. A certain amount of economic aid has already been committed by the Community in this context in the areas of food aid and technical assistance. It is accepted that consideration of any more far-reaching Community aid would have to await a more focused economic reform programme and greater clarity in the matter of Union-Republic relations.
A strong element of conditionality therefore applies to EC economic aid to the Soviet Union. In January this year implementation of measures on technical assistance and food aid credits was interrupted as a sign of concern at the situation at the time in the Baltics. A similar interruption was contemplated in August at the time of the failed coup. Food aid in grant form has not however been subjected to the same conditionality on the grounds that it is strictly humanitarian. Rigorous monitoring arrangements have nevertheless been included in the relevant EC regulations to ensure that this aid reaches those most in need.
The Twelve continue to monitor the evolving and very fluid situation in the Soviet Union. They maintain contact and exchange information with the G7, the International Monetary Fund and other international institutions playing a part in the massive task of helping to transform the Soviet economy. The implementation of the existing EC programme and the elaboration of any further measures will be carried out taking account of political and economic developments.
The question of relations between the Union and the Republics is still open and evolving. In channelling EC technical assistance a pragmatic approach has therefore been followed in identifying the most appropriate and effective interlocutors. The overall political and economic conditionality however remains unchanged.
It is intended that the newly independent Baltic States benefit as from next January from Group of 24 and Community co-ordinated aid to Central and Eastern Europe. Well established guidelines in relation to political and economic conditionality of aid are already operating in respect of these programmes.