Minister of Foreign Affairs Bjørn Tore Godal

Statement to the Storting on the Barents Cooperation

The Storting, 24 april 1995

Madam President,

In his statement to the Storting on 19 January 1993, the week after the formal establishment of the Barents Cooperation in Kirkenes, Minister of Foreign Affairs Thorvald Stoltenberg affirmed that the foundation for wide-ranging regional cooperation in the north had been laid. While this was an important step, he pointed out that it would be necessary gradually to translate the plans into specific projects that would benefit the local population. "We must work quickly, but at the same time have a reasonable degree of patience," said Mr. Stoltenberg. This statement is just as true today.

Right from the beginning, the Barents Cooperation has had two main strategic goals, which are closely related. The first is to create a network of cooperation which will have a stabilizing effect on relations between the Nordic countries and Russia. In this way, we will be helping to involve Russia more closely in European cooperation. The second is to promote economic and social development in the Barents Region itself, i.e. the northern parts of the Nordic countries and northwestern Russia.

The overriding goal of the Government's initiative concerning the Barents Region was, and continues to be, related to security policy in the broadest sense of the word. On the basis of the profound social changes that were taking place in Eastern Europe and Russia, we had to seek new political solutions that enabled us to take advantage of the opportunities afforded by this situation to create a better, more secure Europe for all.

On 9 June 1993, then Foreign Minister Johan Jørgen Holst said to the Storting: "Our goal is to create a meeting place, a forum for dialogue and a framework that can be used as a basis for establishing new and lasting networks across national borders ... The Barents Cooperation is mainly concerned with building bridges across the gap created by three quarters of a century of closed borders, broken ties and mutual distrust."

Norway is among the countries that have emphasized most strongly that Russia must be given an equal place in cooperation in Europe. We have actively sought to promote a course of development that will include Russia, because we believe this to be in the interests of our own security and stability in Europe.

For Norway, relations with Russia will continue to be the most important foreign policy aspect of the Barents Cooperation. This cooperation has become a central part of our relations with Russia, and will play an important role in the further development of these relations. My contacts with Foreign Minister Kozyrev and other representatives of the Russian authorities have made it evident to me that the Russians take the same view of the Barents Cooperation. I have also noted with interest that Foreign Minister Kozyrev himself has a strong commitment to the Barents Cooperation. I would like to remind you that he was elected to the Russian national assembly as a representative from Murmansk constituency.

Our second overriding goal, to promote development in the Barents Region itself, has been a high priority for the Government from the very beginning. As a regional arrangement, the Barents Cooperation is primarily intended to serve the interests of those who live in the region. The main challenges facing the region now are to rid ourselves of the legacy of the Cold War and create stability and promote progress in the political, social, economic and environmental fields in northwestern Russia, while at the same time safeguarding local cultural traditions.

We needed a political tool that could both normalize relations across the East-West divide in the north and ensure better political control of developments in the region, particularly as regards the balance between utilization of natural resources and ecological considerations. This would provide the necessary conditions for renewed growth, thereby also strengthening the means of livelihood and promoting economic development in North Norway.

We must make use of the new assets represented by our northern regions since Russia's borders were opened. The Government has made it clear all along that if a solution was reached on the delimitation issue in the Barents Sea, this would allow for even closer cooperation on the utilization of natural resources in the region.

However, normalizing our relations and establishing practical cooperation with Russia is no easy task. The systems of legislation in our two countries are very different, and the major restructuring of Russian society has created a climate of unpredictability, which hampers cooperation between the business communities in Russia and abroad. We are affected by these problems in the north as well, since the same legislation on commercial activity, company taxation, customs duties, etc. applies there as elsewhere in Russia. It is perhaps unrealistic to believe that significantly better conditions can be established for economic cooperation in the Barents Region than for cooperation with Russia in general. Nonetheless, the fact that local and regional authorities have responded so wholeheartedly to the cooperation is significant. This also inspires the local Russian authorities to take up specific obstacles to cooperation with the central authorities in Russia. The Barents Cooperation can thus become a workshop for the development of cooperation between the countries of Western Europe and Russia.

We know that the Russians are thinking along the same lines. One possibility that has been mentioned is to establish a clearly delimited economic zone within the Russian part of the Barents Region, where special legislation would apply. It would then be possible to test any new arrangements in practical terms, thereby providing a basis on which their future application in the Barents Region can be assessed. Although this raises many difficult issues, the Government is following with interest Russian discussions of various solutions involving zones of economic activity.

In our efforts to improve the framework for economic cooperation, we must also relate to the central Russian authorities. Some Norwegian enterprises which are active in northwestern Russia have encountered unanticipated and, in our opinion, unnecessary and unacceptable problems. Therefore, we attach great importance to ensuring that such obstacles are eliminated. The most pressing problems were raised by the Minister of Local Government and Labour during his recent visit to northwestern Russia, and we have once more emphasized our concern at the political level in Moscow.

The Government will continue to use the Barents Cooperation as a channel for discussing such practical problems. I will also take up these matters specifically at the next meeting of the Norwegian-Russian Economic Commission, with a view to achieving a better framework for Norwegian commercial activities in Russia.

Efficient routines and flexible procedures for issuing visas and for customs clearance are important for trade and cooperation. The growing traffic between Norway and Russia has made it necessary to intensify customs inspections at the Russian border. Norway and Russia are cooperating in efforts to combat cross-border crime. An agreement has been signed on mutual administrative assistance between the Russian and Norwegian customs authorities. Such agreements make Norwegian contingency measures to counteract smuggling more effective.

The establishment of a Russian consulate-general in Kirkenes and a Norwegian consulate-general in Murmansk makes it easier to deal with visa questions. The Norwegian authorities will evaluate current regulations and the way they are practised at regular intervals, so that lawful contacts across the border can take place without unnecessary hindrance. This also applies to the provisions on group visas. We are also trying to persuade the Russians to accept a greater degree of reciprocity in the use of multiple-entry visas.

I would like to mention the small number of descendants of Norwegian immigrants to the Kola Peninsula, who now have new opportunities for contact with their families in Norway. The Government has established a scheme that makes it practically and financially possible for some of these people to come to Norway. The scheme will apply to those who are considered to have direct, close ties to Norway, and a decision as to who is eligible will be made in the near future.

Distinctive features of the Barents Cooperation are the way it is organized and the exercise of authority at regional level. The Regional Council is the supreme body in this cooperation. It consists of the chairmen of the county councils of Finnmark, Troms and Nordland and the heads of the counties of Norrbotten in Sweden, Lappland in Finland, Murmansk and Archangel in Russia and of the Republic of Karelia in Russia, as well as a representative of the indigenous peoples of the region. Norway takes a positive view of the application for separate representation in the Regional Council for the Nenets autonomous region in Archangel county. The chairmanship of the Regional Council was held by the chairman of the Finnmark County Council until January this year, and has now been taken over by the head of Norrbotten county.

The Government views the Regional Council as a driving force behind the Barents Cooperation. It is entirely independent and is not subordinate to the Barents Euro-Arctic Council. Experience has shown that it was right to give the Regional Council such a strong position. The relationship between the Barents Euro-Arctic Council and the Regional Council is based on close cooperation between central and local authorities in each country.

Norway wishes to develop the political aspect of the cooperation further. Our goal must be to create greater diversity by involving more participants in the work of the Regional Council, and to ensure that parliamentarians, other political groups and other groups involved in social issues are enabled to play a part in regional cooperation. For our part, we believe it is particularly important to ensure that women and people with a multi-cultural background become more closely involved in the cooperation.

The Regional Council has drawn up its own programme of action, known as the Barents Programme. This was adopted by the Council in September last year and is now being implemented. It includes 80-90 different projects in a variety of fields, and is the result of extensive studies in ten regional sectoral committees. The overall programme thus reflects the region's own priorities. This is intended to be a rolling programme, in which new projects are approved as others are completed. Even though many of the projects are smaller than those under discussion centrally, they may be very important to the people involved.

To illustrate the breadth of the programme, I would like to give a few examples of the projects included in it: efforts to improve drinking water quality in northwestern Russia, a study of environmental factors affecting anadromous salmonids, hospitals with special facilities for infants, the development of centres of expertise and grants for teachers, women and regional development, Russian building regulations, a Nenet and a Sami cultural centre, film and television cooperation and more extensive cooperation in the field of sports, and the production of seed potatoes and seeds.

Because the fisheries play a major role in the Barents Region, it is important to continue the development of cooperation in the fisheries sector through the programme being drawn up by the Regional Council. This should be possible to achieve within the framework of the clear limitations set by the Government as regards the extent to which the Barents Cooperation may deal with the management and harvesting of marine resources.

The Barents Programme is to continue until 1999 and is budgeted at some NOK 160 million. Funding totalling about NOK 55 million is needed for 1995. Norway has undertaken to provide NOK 26 million towards the programme this year, which is to be channelled through our Programme of Action for Eastern Europe. Sweden and Finland have so far undertaken to provide a total of NOK 16 million. Thus, the programme is not yet fully financed for 1995. Unless adequate funding is obtained, a situation will arise in which each country gives priority to the projects it considers most beneficial. We must endeavour to increase the degree of Nordic cofinancing in the future.

The Government has established a regional secretariat in Kirkenes, which can also assist participants from other countries. The secretariat is responsible for inviting tenders and evaluating the projects included in the Barents Programme. One of the staff of the secretariat is from the Nordic Council of Ministers, and the secretariat is currently being expanded to include an officer in charge of issues relating to indigenous peoples. The Government is prepared to continue to finance the secretariat in Kirkenes.

The Government considered it important to ensure that the indigenous peoples were given an independent status and role in the Barents Cooperation. When we proposed that the indigenous peoples should have their own representative in the Regional Council, this was a step further than in the "Nordkalotten" cooperation, where the Sami people were not independently represented in the governing bodies. The Government made a concerted effort to gain understanding for an arrangement where the indigenous peoples were represented in the Regional Council.

A Regional Committee for the Indigenous People was also established. It was given permanent status this past January and has the right to submit proposals both to the Regional Council and to the Barents Euro-Arctic Council. Thus, the Barents Cooperation has become a meeting place for Nordic and Russian Sami, Komi and Nenets. The Barents Cooperation has opened up new possibilities for the Sami people. Once more it is possible to include the Sami people on the Kola Peninsula in the Sami community and to strengthen their contact with other indigenous minorities in the region.

Because legal traditions in the countries that have a Sami population vary so widely, it has been decided that for the time being it would not be expedient to include the Russian Sami in the work on a convention on the Sami people that has been initiated by Norway, Sweden and Finland. Thus, the Barents Cooperation will be even more important in the future as a means of providing the Sami people with opportunities for growth and progress.

During the past year, the indigenous peoples have been very active in the Barents Cooperation. The Ministry of Foreign Affairs has supported a number of projects proposed by various indigenous groups, including projects for the Sami people on the Kola Peninsula in fields such as language training, student exchanges, traditional crafts, reindeer slaughtering and dairy operations.

We also have high hopes with regard to the current talks on a more comprehensive agreement between Norway and Russia on traditional land use. The main elements of the agreement will be the revival of reindeer husbandry on parts of the Kola Peninsula and cooperation on the use of grazing grounds. Unfortunately, we have seen examples where the transition to a market economy in Russia has resulted in greater pressure on the Sami people's traditional use of the natural environment. It is therefore important that we support projects designed to strengthen the natural resource base in Sami settlement areas and improve the conditions for traditional means of livelihood. This may call for financial support as well as assistance in obtaining equipment and developing expertise.

In this connection, I noted the comments made by the President of the Sami Assembly, Ole Henrik Magga, during a television programme on the utilization of natural resources in the Barents Region on 4 April this year. He stressed the fact that the Barents Cooperation had given the indigenous peoples an opportunity to take part in safeguarding their own interests in a process which could otherwise have left them with a sense of powerlessness. It is in our interests to ensure that account is taken of political considerations in this process.

To promote political control of developments in the region, the Government has deliberately given priority to encouraging the creation of networks in all sectors of society. Most of the people in positions of authority at both local and central level in the countries involved who can help to give the Barents Cooperation substance have established contacts with each other and discussed their respective problems, objectives and priorities. Networking in this way offers great potential in the future. Not only does it help to attain the political goals of the Barents Cooperation, but it is often a prerequisite for achieving results in specific issues and projects.

One of the most important results of the Barents Cooperation is what has been achieved in this field. It is particularly important to involve young people and intellectuals who will have an influence on future developments in Russian society. The extensive cooperation between the universities of Tromsø and Archangel is a good example. The Government will work to promote student exchanges. We have also taken the initiative for intensifying cooperation between the Ministry of Foreign Affairs and political parties and trade unions in Norway on activities targeted at Eastern Europe. Trade unions and party organizations both centrally and locally are involved in a variety of activities and projects whose goals coincide with those of our Programme of Action for Eastern Europe. We are therefore prepared to increase our support for such activities.

The Barents Cooperation is one of a number of types of cross-border regional cooperation that have emerged in Europe. A particularly large number of such arrangements has grown up within the EU area, involving cooperation between counties and municipalities across national borders. During the past few years, several regional arrangements have developed across the former East-West divide. Even though Norway is also actively involved in the Baltic Sea Cooperation, geographical and historical considerations make it natural for us to give priority to the Barents Cooperation. However, in our view more extensive cooperation in both the Barents Region and the Baltic Sea Region will have mutually advantageous effects on developments in these parts of Northern Europe.

We find it very valuable that all the Nordic countries take part in the Barents Cooperation through their governments, which are represented in the Barents Euro-Arctic Council together with Russia and the Commission of the European Communities. The Barents Cooperation is open to all interested states. At present, the USA, Canada, Japan, the United Kingdom, Germany, France, the Netherlands and Poland meet as observers. Italy has also joined this group during the past six months. This illustrates the broad political interest being shown in the Barents Cooperation.

Norway held the chairmanship of the Barents Euro-Arctic Council from January 1993 to September 1994. During this period, we focused particular attention on four fields, in addition to our work on specific issues:

• It was necessary to establish formal structures that would function efficiently in an international context.
• We considered it to be crucial to the long-term prospects of the cooperation to give it a firm local foundation.
• We considered it important to include as many sectors as possible in the Barents Cooperation and to ensure that all the relevant authorities were involved.
• We also saw a need to involve countries outside the region in the cooperation. Finding solutions to the major challenges facing the region, particularly as regards environmental problems, will require broad international participation.

In the Government's view, substantial progress has been made in all these fields.

The Barents Euro-Arctic Council provides a suitable framework for cooperation at national level. During the Norwegian chairmanship, two meetings of foreign ministers were held, in addition to four meetings at ministerial level concerning transport and communications, the environment, health and social policy, and cultural affairs. Under the Finnish chairmanship, a meeting of ministers of education and research has been held so far this year. A meeting of ministers of trade has also been discussed. Russia will take over the chairmanship after Finland.

Countries with observer status have also been actively involved, and the USA has shown particular interest in cooperation on environmental protection, especially as regards nuclear waste and defence-related environmental threats. There are many indications that the USA is prepared to extend its involvement to other fields as well. For example, US, Norwegian and Russian enterprises and financial institutions are taking part in a series of seminars on the funding of activities in the Barents Region.

Japan is, of course, interested in the efforts of the working group of the Barents Euro-Arctic Council on the Northern Sea Route, where issues relating to the opening of the Northeast Passage are discussed. The working group is a link between the Barents Cooperation and the comprehensive study of all aspects of use of the Northern Sea Route currently being carried out by the Fridtjof Nansen Institute. Norway and Japan are the most important contributors to this work. The working group will submit a preliminary report to the next meeting of foreign ministers.

Madam President,

From the Norwegian point of view, environmental protection is the most important task to be dealt with in the Barents Region in the years ahead. The Kola Peninsula is the site of one of the largest concentrations of military installations in the world, and in addition suffers from a heavy load of industrial pollution. The extensive nuclear activities in the area represent one of the most serious environmental threats to our part of the world. In many of the industrialized parts of this area, the price of economic growth may become so high in terms of degradation of the natural and human environment that it both limits further development and necessitates restructuring.

We are now beginning to acquire a reasonably good overview of the magnitude and extent of the environmental problems facing us. It is essential that we deal not only with the acute, short-term problems, but also the long-term threats. The Barents Region Environment Action Programme, which was adopted by the Barents Euro-Arctic Council in June last year, provides a concrete framework and clear guidelines within which to formulate specific tasks. This work is now well under way in the working party set up by the ministers of the environment for this purpose, which is headed by the state secretary of the Norwegian Ministry of the Environment.

The Action Programme focuses on radioactive contamination and nuclear safety, measures to reduce industrial emissions, protection of the flora and fauna, and the living conditions of the indigenous peoples of the Barents Region. It also emphasizes the importance of strengthening environmental management and cooperation between the local and regional environmental authorities. The Government considers it of great importance that environmental protection measures take account of the special conditions under which the indigenous peoples of the region live.

The Government recently submitted a plan of action for nuclear safety as a follow-up to Report No. 34 (1993-94) to the Storting on nuclear activities and chemical weapons in areas adjacent to our northern borders. The plan covers both current and planned projects in Russia in four main areas: safety at nuclear installations, sound management of nuclear waste, problems associated with the dumping of nuclear waste and arms-related environmental hazards.

Russia itself is also making efforts to solve the problems related to the management and storage of nuclear waste, but the country's economic situation and the magnitude of the task makes international participation essential. The action plan also involves cooperation with other countries and within international organizations. The fact that we have allocated up to NOK 130 million in this year's budget for the implementation of the action plan enhances our credibility abroad.

In our view, the entire international community has a responsibility for finding solutions to the formidable environmental problems in the north. I stressed this point during my visit to the USA last week. The Government attaches great importance to the action plan as an instrument for involving our traditional partners in cooperation on nuclear issues in the north, and progress has already been made in this respect. The USA and Norway are now implementing a joint project with Russia concerning an effluent treatment facility for low-level radioactive waste in Murmansk. Together with France, we have appointed a separate group with a broad mandate to examine nuclear contamination in our part of the world. In this way we are also helping to ensure that aid to Russia in the nuclear waste sector is placed on the agenda in both Washington and Paris.

Although the technical challenges in the nuclear sector are comprehensive, the financial resources are the main problem. Norway has therefore proposed an international action plan and a fund for nuclear waste problems in Russia. This spring we are concentrating on efforts to gain the support of the G-7 countries for the idea. This will also facilitate follow-up efforts in other international organizations.

Within the framework of the Nordic Council of Ministers, Norway has taken the initiative for a conference to be held in May under the auspices of the International Atomic Energy Agency on the subject of the management and storage of radioactive waste in Russia. In addition to providing financial support, Norway is taking an active part in the preparations for the conference.

Norway has so far contributed NOK 33 million to the Nuclear Safety Fund of the European Bank for Reconstruction and Development (EBRD). At the Bank's annual meeting this month, the Norwegian Minister of Finance called for more countries to contribute to the fund. The money is being used for measures to improve safety standards at nuclear power installations in the former Soviet Union and Eastern Europe. We would advocate that some of the money be used to improve safety standards at the nuclear power plant on the Kola Peninsula. We have also provided bilateral support for specific safety measures at the Kola plant, and this cooperation is to be continued. I should mention here that the meeting of ministers of health in the Barents Euro-Arctic Council drew up a strategy that gives high priority to emergency preparedness and primary health care, and that also includes exchanges of health personnel and the transfer of hospital technology.

A meeting will be held in Canada in June with a view to establishing an Arctic Council in which all eight Arctic countries will participate. Today there is general support for this idea, partly due in our opinion to the positive experience gained through the Barents Cooperation. The Council will also serve as an umbrella for cooperation on the sustainable utilization of resources, issues relating to indigenous peoples, tourism, commercial activity and environmental protection, all of which are part of the environmental strategy of the Rovaniemi process.

The work being done within the framework of the Rovaniemi process will have a considerable influence on the environment in the Barents Region. Norway, Russia and the other six Arctic countries are taking an active part in this work. Some of the cooperation is taking place under the Arctic Monitoring and Assessment Programme (AMAP), which will be submitting a report to the ministers of the environment concerning the state of the Arctic environment in the course of 1996. The AMAP secretariat is located in Oslo and most of its funding comes from Norway.

The Government would stress that the key to the sound development of the Barents Region lies in the progress made in environmental protection. Much has been accomplished, and our efforts have met with a positive response in many fora. However, much remains to be done if we are to create the necessary international awareness of the challenges ahead. Dealing with environmental problems is a demanding, long-term task, in which expectations as regards Norway's role will be high. We must also do our best to ensure that the environmental dimension is taken into account in the approaches adopted and priorities assigned in other sectors. For instance, in one of the projects currently being carried out, environmental problems are viewed in a cultural context. I would also like to mention our active support for the promising training programme in environmental technology which is being launched under the title Cleaner Production. We are seeking to involve other countries in the Barents Cooperation in this programme, which is so sorely needed and has aroused so much interest in Russia.

The implementation of the modernization project for Petchenganikel will set an important example. The project may solve a serious environmental problem and at the same time help to expand industrial and economic cooperation between the northern regions. During the ongoing negotiations on this project the Government has confirmed its commitment to provide up to NOK 300 million in environmental support. We take it that the Russians will clarify their financial contribution to the project in the near future. The Prime Minister has written a letter to her Russian colleague on this subject and will take up the matter during her visit to Moscow during the liberation celebrations in May.

As chairman of the Barents Euro-Arctic Council, Finland has given special priority to the development of infrastructure and economic and industrial cooperation as well as to environmental protection. At their meeting in Tromsø in September last year, the foreign ministers appointed a separate working group for industrial and economic cooperation, which will prepare a report for the next meeting of foreign ministers this autumn.

The report will include a list of major high-cost projects that will be given priority in the Barents Euro-Arctic Council. Examples of this type of project are those relating to east-west railway connections, the upgrading and conversion of ports and shipyards, the adaptation of infrastructure for future offshore activities, development of a modern telecommunications system, mining projects and modernization of the metallurgical industry, and energy and energy efficiency projects. The goal is to agree on projects that will have long-term consequences for the overall development of the region.

The meeting of ministers of transport and communications held in the Barents Euro-Arctic Council has identified transport corridors that should be given priority when upgrading east-west connections in the region, including the link between Murmansk and Kirkenes. New east-west air routes have been opened. One of the largest projects supported by Norway concerns the upgrading of the Archangel airport to accommodate international traffic. The meeting of ministers of transport and communications also called attention to the potential benefits of expanding the Norwegian Loran C stations and the Russian Chaika system to provide an integrated navigation system for the Barents Sea. Norway and Russia concluded an agreement to this effect last month.

On the basis of recent, encouraging assurances on Russia's part, Norway is now prepared to cooperate with the authorities in Murmansk on the construction of a new, modern highway between Kirkenes and Murmansk, which will be open to ordinary traffic seven days a week. The Government has authorized the chairman of the Finnmark County Council to sign an agreement on such cooperation. NOK 5 million from our Programme of Action for Eastern Europe has been made available for the implementation of the agreement, and will be used to purchase machinery for the construction work in Russia.

The possibility of linking Kirkenes to the Russian railway network by extending the line between Bjørnevatn and Nikel has been discussed. This is an exciting project which would have far-reaching consequences. The current cargo volume is insufficient to warrant the realization of the project. Nonetheless, work is in progress on a joint Norwegian-Russian study to determine whether there is an economic basis for a railway link.

Another major project currently being reviewed by the Russians with Norwegian assistance is the development of a port in the Pechenga Fjord, just across the Norwegian border. The initial phase of the project entails the preparation of plans for the construction and operation of an oil and gas terminal. Should this facility be constructed, it will have a significant impact on both sides of the border. The Government is therefore following the work on the project with great interest.

Funding is a key issue in efforts to upgrade the infrastructure in the Barents Region. We need to reach decisions and procure funds on several fronts, within the framework of the Barents Cooperation, in relation to the EU and other international fora, and bilaterally. Foreign Minister Kozyrev and I have agreed that we shall head the work of the Bilateral Norwegian-Russian Economic Commission at foreign minister level from now on, in order to facilitate progress on a broad range of issues.

A factor of major importance to business and industry in the Russian part of the Barents Region is the Venture Capital Fund for northwestern Russia. On Norway's initiative, this fund was established as a joint measure by the EBRD, Norway, Finland and Sweden, and will become operational in the course of this year. The fund will have a total capital of USD 50 million, 60 per cent of which will be contributed by the EBRD and the remainder by the participating countries. The purpose of the fund is to provide equity capital for small and medium-sized, privatized Russian companies that lack capital and expertise. Over a period of three years, Norway will contribute NOK 50 million through our Programme of Action for Eastern Europe.

To encourage Norwegian companies to establish operations and make investments in the Barents Region, the Government has contributed to an investment fund, Barents Invest, which is currently being established in Tromsø. The Government has also taken the initiative for the Eastern Trade Centre in Kirkenes, again with a view to promoting industrial and commercial development in the region. In addition to its headquarters in Kirkenes, the centre now has divisions in Murmansk and Archangel, and provides legal aid and assistance in connection with accounting, interpreting and business development in close cooperation with the Export Council of Norway.

Now that Sweden and Finland are members of the EU, EU funds may be used in the Barents Region. Vis-à-vis the Commission of the European Communities, Sweden and Finland have worked on two different INTERREG programmes, which are EU programmes for transboundary regional measures, for the Barents Region and Nordkalotten. The aim is to initiate implementation of both programmes in the course of 1995. The EU also plans to coordinate INTERREG with its special programme for aid to Russia, TACIS.

As from 1996, Sweden and Finland aim to link their funding for the Regional Council's Barents Programme and some of their other commitments in the region to these EU programmes, and welcome Norway's participation in cooperation to this end. In this process we will seek to strengthen the role of the counties. The Government is aware that the counties may require greater financial resources in order to follow up these developments. Norway is prepared to consider various possible ways of making a contribution through the Programme of Action for Eastern Europe, through special regional policy instruments or in other ways.

A precondition for Norwegian participation in the implementation of EU-financed projects will be the possibility of using our own funds for cofinancing. Such cofinancing will be an important means of ensuring our participation in and maintaining our influence on the assignment of priorities.

Sweden and Finland intend to make use of the existing structures within the Barents Cooperation in the practical organization of such a joint Nordic regional policy programme in the Barents Region. Norway is very much in favour of this policy, and advocates assigning an important role to the bodies of the Barents Cooperation. Improved coordination of the efforts of the Nordkalotten Committee and the Barents Cooperation would be useful in this connection.

The goals and priorities which are to form the basis for future Nordic cooperation are set out in a report entitled Nordic Cooperation in a New Era. They were adopted at the Nordic Council's session in March this year. Cooperation with the areas adjacent to the Nordic countries has been designated as one of the main pillars of Nordic cooperation in the future. The Barents Region is one of the target areas for such cooperation. It is important to view bilateral, Nordic and broader multinational efforts in conjunction with one another. Norway is now working to ensure that the Nordic Council of Ministers establishes its own information office in the Barents Region. The Government attaches great importance to the active participation of the Nordic cooperation bodies in the Barents Region.

The Programme of Action for Eastern Europe is our most important national policy instrument for implementing our strategy in the Barents Region. Close to half of the programme's activities have been targeted at Russia, with special emphasis on the Russian part of the Barents Region. In 1994 the Ministry of Foreign Affairs pledged NOK 83 million in support of various joint Norwegian-Russian measures, and Norway will continue to give high priority to northwestern Russia.

The transfer and upgrading of expertise has been an important part of the various activities financed through the Programme of Action. The projects targeted at business and industry have included a substantial number of feasibility studies and measures to establish contacts as part of the necessary identification and screening process. In this connection, it is worth noting that less than 30 per cent of the costs related to projects implemented in the period 1992 to 1994 have been covered by the Programme of Action. This shows that the funds have been utilized in a way that has generated a substantial input from various business and industrial sectors in Norway.

In the near future the Government will present a separate report to the Storting containing an evaluation of the projects implemented within the framework of the programme up to and including 1994, and plans for further efforts.

There are many indications that the foundation has been laid for increased concentration of business-related measures on a smaller number of large projects that have proven to be worthy of support. This is in keeping with the current work being done by the Barents Euro-Arctic Council, where greater emphasis is being placed on large-scale projects. Norway must lead the way in ensuring that important, major projects which are thoroughly studied achieve results. The project on the modernization of the nickel refinery in Nikel is one example, and one of several where Foreign Minister Kozyrev has maintained that the Russians too are impatient to achieve tangible results.

As far as measures to promote the democratization process are concerned, it would not be natural to concentrate efforts on a few large-scale projects. In this regard, the strength has lain in flexibility. The possibility of supporting local initiatives in a broad range of fields - human contacts, cultural affairs, cooperation between indigenous peoples, health, etc. - has been a major advantage. These initiatives are the mainstays of the Barents Cooperation. In many ways, mutual cultural understanding and cultural cooperation are a prerequisite for the success of other forms of cooperation. The Government will therefore continue to focus heavily on such measures. Norway is confident that the measurable effects of this cooperation will become apparent in the long term.

Madam President,

In sum, the Barents Cooperation is well established at both national and regional level, and has now become a self-propelled process in a number of fields. We are entering a stage where our sights will be set higher, and greater investments and new results will be called for.

In many ways, with the enlargement of the EU, the cooperation has become even more important to us. The Barents Cooperation has provided Norway with a vital link with both our Nordic neighbours and the EU. As early as 19 January 1993, in his statement to the Storting, Foreign Minister Thorvald Stoltenberg emphasized that "should we end up with a split between the Nordic countries, a division straight through 'Nordkalotten', we will need stronger regional arrangements in the north to link us to our Nordic neighbours."

It is in our own interests to ensure that this division has as little impact as possible on practical cooperation. If properly utilized, Sweden's and Finland's membership of the EU will serve to strengthen cooperation in the region, both politically and economically. We must ensure that the advantages represented by their membership of the EU for regional cooperation are fully utilized to meet the needs and priorities determined jointly by the various bodies in the Barents Region.

The Government will make every effort to maintain Norway's position in the region and to further develop our role as a driving force. Norway will therefore seek to participate in as many EU-funded projects in the north as possible by paying our own share of the costs.

The Barents Cooperation is not a closed structure, isolated from the concerns that preoccupy other fora. It is and should be a forum that creates contact, generates ideas and commitment and places problems on the agenda. Some issues will be dealt with directly within the framework of the Barents Cooperation, whereas others will be referred to fora that might be more appropriate in the matter in question.

In connection with this statement, the Ministry of Foreign Affairs has prepared a collection of documents on various aspects of the Barents Cooperation, which will be distributed to the members of the Storting.

I look forward to a constructive, inspiring debate on the opportunities and challenges offered by the Barents Cooperation. We must bear in mind that we are facing formidable tasks in this respect in which we cannot expect a major breakthrough in the short term. We should therefore continue to follow Thorvald Stoltenberg's advice on having a "reasonable degree of patience".

We must make full use of the important political tool provided by the Barents Cooperation to develop neighbourly relations with Russia and promote the development of the northern regions. Norway has a particular responsibility for ensuring that the Barents Cooperation continues to make a valuable contribution to the construction of the new Europe.

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Lagt inn 27 juli 1995 av Statens forvaltningstjeneste, ODIN-redaksjonen