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0(02 Bruxelles, 3rd June 2002

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• Police and judicial co-operation • Bilateral relations with third countries and regions: - The Middle East - -Mediterranean Partnership - Reconstruction of Afghanistan - Humanitarian Aid to Afghanistan • Air transport security • Economic and financial measures • Emergency preparedness The EU intends to continue to build on these measures, guided by the values of VROLGDULW\ with the American people and the civilian population of Afghanistan, VHFXULW\ of our citizens when travelling and going about their daily lives and GHWHUPLQDWLRQ in the fight against terrorism, including its root causes, both inside Europe and across the globe.

 Heads of State and Government 3ROLFHDQGMXGLFLDOFRRSHUDWLRQ By September 13, the Commission had tabled proposals for a (XURSHDQ DUUHVW ZDUUDQW to supplant the current system of extradition between Member States and a FRPPRQGHILQLWLRQRIWHUURULVPand related penalties. They represent the first of many measures against all forms of FURVVERUGHU RUJDQLVHG FULPH, including terrorism. - The Brussels on 21 September 2001 adopted an Action Plan in the fight against terrorism which identified a series of measures such as: MRLQW LQYHVWLJDWLRQ WHDPV RI SROLFH DQG PDJLVWUDWHV from throughout the EU; routine H[FKDQJHRILQIRUPDWLRQ about terrorism between the Member States and (XURSRO; a specialist anti-terrorist team within Europol; a co-operation DJUHHPHQWEHWZHHQ(XURSRODQGWKHUHOHYDQW86DXWKRULWLHV; and (XURMXVW, a co-ordination body composed of magistrates, prosecutors and police officers, to be launched on 1 January 2002. - On 19 October, the (XURSHDQ &RXQFLO LQ *KHQW emphasised points of its Action Plan, which are to be implemented as soon as possible. Firstly, the approval of the practical details of the European arrest warrant and the common definition of terrorist offences. Secondly, an increased co-operation between the operational services responsible for combating terrorism: Europol, Eurojust, the intelligence services, police forces and judicial authorities. - At the European Council in Laeken on 14-15 December 2001 political agreement was reached on the European arrest warrant and a common definition of terrorism. Both instruments will be formally adopted by the Council once a number of parliamentary scrutiny reserves have been lifted. - At the Justice and Home Affairs Council of 28 February 2002 political agreement was reached on the execution in the of orders freezing property or evidence, and the Decision establishing Eurojust was adopted. - On April 26 2002 European Union justice ministers met in to discuss EU-US relations in the fight against cross-border organized crime and terrorism. Acting on a pledge made after September 11, ministers agreed to begin negotiations with the United States for closer co-operation on H[WUDGLWLRQ DQG  PXWXDO OHJDO DVVLVWDQFH. Any deal between the EU and the United States could lead, for example, to co-operating in interrogations using video conferencing across the Atlantic and working more closely together on criminal and terrorist investigations. At the EU-US Summit on 2 May 2002 in Washington, both sides agreed to pursue negotiations in this area.Talks will begin as soon as possible. Moreover, the European Union is prepared to engage with WKH 8QLWHG 6WDWHV in reciprocal initiatives such as: - A co-operation agreement, including the fight against terrorism between (XURSRO and the relevant US authorities which was signed on 6 December 2001, reinforcing significantly the fight against terrorism and other forms of serious crime. A second agreement, which will allow for the exchange of personal data, is currently being negotiated. Both sides have also exchanged liaison officers. - Establish cooperation between the newly founded body Eurojust and relevant US authorities.

2 - Intensification of co-operation on border control and migration management; this includes for example the security of SDVVSRUWVDQGYLVDV, and the fight against false and forged documents. - Other concrete proposals for co-operation, which the US authorities made on the 10 October to the EU are currently being examined with some of them already being implemented and others requiring further discussions. For more information: http://europa.eu.int/comm/justice_home/news/terrorism/index_en.htm

*OREDOFRDOLWLRQDJDLQVWWHUURULVP The European Councils in Brussels, Ghent and Laeken reaffirmed WKH (8 V VROLGDULW\ZLWKWKH8QLWHG6WDWHV to build a global coalition against terrorism and fight its root causes. In the six months following September 11th, the EU and the US have worked intensively on joint initiatives designed to counter and defeat international terrorism. The EU confirmed its staunchest support for the military operations, which began on the 7 October 2001 in Afghanistan in line with UN Security Council Resolution 1368 and the right to self-defence as enshrined in the UN Charter. The European Union has consistently underlined the central role of the 8QLWHG1DWLRQV in building an effective global framework against terrorism. - On 31st May 2002, the European Council published a new Regulation imposing certain restrictive measures directed against Usama bin Laden, Al Qaida and the Taliban. This Regulation replaced a previous decision imposing sanctions against the Taliban of Afghanistan. The European Union will continue to update and amend the its list of targeted persons and entities as part of its fight against terrorism. - In addition to a commitment to the ratification of relevant UN conventions, the EU has committed itself to implementing in full 6HFXULW\ &RXQFLO 5HVROXWLRQ  RQ WKH ILJKW DJDLQVW WHUURULVP, and the Commission is contributing actively to this effort in areas where it is competent. The EU has submitted a report on the implementation of Resolution 1373 to the Counter-Terrorism Committee of the UN Security Council, setting out the measures taken by the th EU pursuant to Resolution 1373. The *HQHUDO$IIDLUV&RXQFLO on 15 April in Luxembourg assesed the monthly update of the EU's action plan to fight terrorism as well as a Presidency report outlining the steps being taken to develop this action plan. These efforts are focused in particular on implementation of UNSCR 1373, the execution of orders freezing property or evidence, stepping up mutual assistance between police and justice authorities in the Member States, bilateral relations with the United States, the introduction of antiterrorist clauses in agreements with third countries, better cooperation between Europol and Eurojust, updating the list of terrorist organisations, activities to combat bio-terrorism, possible improvements to the Schengen information system, and cooperation with Russia and other external partners. The Council reiterated the need to pursue efforts on all aspects of the action plan. - In view of the need expressed by many countries for WHFKQLFDODVVLVWDQFH to implement all the provisions of Resolution 1373, the Commission has been assessing to what extent the EC’s external assistance programmes can facilitate the implementation of the Resolution. A wide range of existing EC assistance programmes and projects already contribute to capacity-building in the areas covered by Resolution 1373. There is scope for further assistance in the framework of these programmes.

3 - )UHH]H RI WHUURULVW DVVHWV DQG LPSOHPHQWLQJ 81 6HFXULW\ &RXQFLO 5HVROXWLRQ  RQ WKH ILJKW DJDLQVW WHUURULVP In addition to existing UN sanctions against the Taliban, the Council adopted on the 27 December 2001 a Regulation in respect of the freezing of funds and a prohibition to provide funds, assets, economic resources or financial services to terrorists (individuals, groups or entities) who prove to have links to terrorist organisations. This list nd  was updated by the Council on 2 May 2002. Since the 11 September, over ¼ 100 million of assets belonging to persons and entities sponsoring terrorist acts have been frozen throughout the EU. - &RQFUHWHLQWHUQDWLRQDO FRPPLWPHQWVWR ILJKW DJDLQVW WHUURULVP have been agreed upon with the 8QLWHG6WDWHV at the EU-US Ministerial in Washington DC on the 20 September, with 5XVVLD at the EU-Russia Summit on 3 October 2001, with our (XURSHDQ QHLJKERXUV (the thirteen accession candidates, , and , , Russia, Ukraine, Moldova and the western Balkan countries) at a European Conference on 20 October, with the 12 partner countries of the (XUR0HGLWHUUDQHDQ 3DUWQHUVKLS (Barcelona Process) at the Ministerial meeting on the 5 November, with ,VUDHO at the Association Council on 20 November and with the &RXQFLO RI (XURSH on 8 Novemberall in Brussels. On 4 December 2001, the Commission participated at the Ninth Ministerial Council of the Organisation for Security and Co- operation in Europe (26&() which concluded its meeting by agreeing on a Declaration and adopting a broad-ranging Action Plan on counter-terrorism measures (4 December). On the 18 December 2001, the EU-&DQDGD Summit in Ottawa reiterated its commitment to work together to consolidate the international coalition against terrorism. President Prodi and Belgian PM Verhofstadt (then the EU Presidency) held an (8,QGLD 6XPPLW with Indian Prime Minister Vajpayee (23 November) in New Dehli. At this occasion, the EU and India issued a Declaration against international terrorism. The (8$OJHULD and the (8&KLOH$VVRFLDWLRQ $JUHHPHQWV, signed in April 2002, include commitments to fight terrorism. - 7KH 6HFXULW\ &RXQFLO KDV IUHHG IOLJKWV WR DQG IURP $IJKDQLVWDQ EHLQJ SUHYLRXVO\ SURKLELWHG. It lifted the ban in accordance with Resolution 13/90 adopted on the 16/01/02. The flight ban will equally be repealed by the EU, which aims to implement this UN resolution.

3ROLWLFDODQGFXOWXUDOGLDORJXH An in-depth political and cultural dialogue needs to be initiated and sustained with those countries and regions of the world where terrorism comes into being. 7KH (XURSHDQ8QLRQDGDPDQWO\UHMHFWVDQ\HTXDWLRQRIWHUURULVPZLWKWKH$UDEDQG 0XVOLPZRUOG th nd rd - At the 5 (XUR0HGLWHUUDQHDQ0LQLVWHULDO&RQIHUHQFH on 22 -23 April 2002 in 9DOHQFLD, the EU and its 27 Euro-Mediterranean partners agreed to the principle of creating a (XUR0HGLWHUUDQHDQ)RXQGDWLRQ to promote a dialogue of cultures and civilisations, and endorsed and action programme in the same area, focussing of youth, education and the media. This was part of the overall  action plan of the %DUFHORQD3URFHVV.

 For the Council decision: http://europa.eu.int/eur-lex/en/dat/2002/l_116/l_11620020503en00330034.pdf For the text of the Regulation, please consult the Official Journal, L344 of the 28/12/01  For more information: http://europa.eu.int/comm/external_relations/euromed/conf

4 - On 20-21 March 2002, the hosted a conference to encourage inter-cultural dialogue. The &RQIHUHQFHRQ,QWHU&XOWXUDO'LDORJXH brought together academics, political and religious leaders for an in-depth discussion of various inter-cultural issues, and to come up with practical conclusions. Commission President and Commissioner for Education and Culture were in attendance. The symposium agreed that inter-cultural dialogue is as intrinsic to the peace process in the Middle East as economic and political negotiations, and the Commission has proposed the formation of a permanent Euro-Mediterranean Foundation for dialogue between cultures. Introducing the conference, Romano Prodi stated: µ,WLVQRWMXVWDPDWWHURIEURNHULQJDFHDVHILUHDQGGHOLYHULQJKXPDQLWDULDQDLG :KDWZHUHDOO\QHHGWRGRLVWRFRPHIRUZDUGDVSURDFWLYHPHGLDWRUVZKRFDQ PDNHWKHRSSRVLQJSDUWLHVORRNDWWKHLVVXHVWKDWGLYLGHWKHPLQDQHZOLJKW¶ - On 12-13 February 2002, the Ministers of Foreign Affairs of the 2UJDQLVDWLRQRI WKH ,VODPLF &RQIHUHQFH and the (8 Member and Candidate countries came together for a joint forum in Istanbul, to reaffirm their strong belief in the harmony of civilisations and in its attainability. The main means to avoid racial, religious and cultural prejudice is to enhance our knowledge through communication and co-operation for the promotion of common universal values, such as those enshrined in the Universal Declaration of Human Rights. - Together with the Ecumenical Patriarch Batholemew, President Prodi organised in Brussels on 19 December 2001 an ,QWHUIDLWK PHHWLQJ uniting religious leaders from Judaism, Christianity and Islam in order to reflect and promote peaceful coexistence among the three monotheistic religions.

%LODWHUDOUHODWLRQVZLWKWKLUGFRXQWULHVDQGUHJLRQV The European Union has redoubled its diplomatic efforts towards building an international coalition against terrorism. Together with the Presidency and the High Representative, the Commission (Commissioner Patten) made troika visits to 3DNLVWDQ6DXGL$UDELD,UDQ(J\SWDQG6\ULD from the 24-28 September 2001. The Commission attended a series of meetings in the margins of the 8QLWHG1DWLRQV *HQHUDO$VVHPEO\ in New York City (9-15 November 2001) as well as a troika visit to the 0LGGOH(DVW(with President Prodi) (16-19 November 2001) and a visit to ,QGLD DQG3DNLVWDQ (22-24 November 2001). In May 2002, &RPPLVVLRQHU 3DWWHQ re- visited 3DNLVWDQ DQG ,QGLD to reinforce the European Union’s relations with the country. - The European Union has followed the present deterioration of Indo-Pakistani th relations with grave concern. At the (85XVVLD6XPPLW on 29 May 2002, the EU and Russia deplored the acts of terrorism and warned that the recent tests of medium and small-range missiles carried out by Pakistan can only aggravate the situation. In a joint statement, leaders from the EU and Russia urged both India and Pakistan to act promptly to reduce tension as the first step to the resumption of a productive dialogue in order to peacefully solve their current differences. - &RPPLVVLRQHU IRU ([WHUQDO 5HODWLRQV &KULV 3DWWHQ, visited 3DNLVWDQ DQG nd th ,QGLD on 22 -24 May 2002. During the visit, the Comissioner held high level bilateral meetings and signed the Financing Agreement of the ¼P )LQDQFLDO Services Sector Reform Programme. The Commissioner underlined the importance to EU-Pakistan relations of the Pakistani road–map for democratic elections in October and its denunciation of terrorism. During his discussion with both Pakistan and India, he streseed the need to find ways to diffuse the current crisis in Kashmir.

5 - In recognition of 3DNLVWDQ's changed position on the Taliban regime and its determination to return to democratic rule in 2002, the Commission has stepped up the EU's assistance to Pakistan(up to ¼ PLOOLRQ LQ   $ QHZ Co-operation Agreement was signed at the occasion of the visit of President Prodi and PM Verhofstadt to Pakistan on the 24 November 2001, where they also met up with President Musharraf. On 16 October, The Commission presented a package of trade measures designed to significantly improve access for Pakistani exports to the EU. The proposed package has been specifically tailored to target clothing and textiles accounting for three-quarters of Pakistan’s exports to the EU. It removes all tariffs on clothing and increases quotas for Pakistani textiles and clothing by 15%. In return, Pakistan will improve access to its markets for EU clothing and textile exporters. The package gives Pakistan the best possible access to the EU short of a Free Trade Agreement by making it eligible for the new Special Generalised System of Preferences Scheme for countries combatting drugs. This package was approved by the on the 10 December 2001. - The Commission approved (19 November 2001) a proposal for negotiating directives for a Trade and Co-operation Agreement with ,UDQ. The EU does currently not have a contractual basis for its relations with Iran. Once agreed, such an Agreement will contribute to improvements in trade and the country's efforts in economic liberalisation and deregulation. It also demonstrates the EU’s support for Iran's reform process. Intensified political dialogue, will address regional and international issues, such as the Middle East peace process, weapons of mass destruction, non-proliferation, human rights and the rule of law. The Council will shortly take a decision on the basis of this proposal so that negotiations can start.

7KH0LGGOH(DVW The European Union continues to express its grave concern about the present situation in the Middle East, including the mounting humanitarian crisis and the growing risk to regional security. The EU condemns violence and terrorism, and extends its sympathy to the injured and bereaved from both the Israeli and Palestinian Israeli communities. The EU maintains that there is no military solution to the conflict, and will continue to work with both parties to achieve a political resolution to the conflict based upon UNSCR 242 and 238, and the principles of the 0DGULG &RQIHUHQFH, 2VOR and subsequent agreements. The European Union upholds its objective of achieving comprehensive peace through the creation of a democratic, viable and independent State of Palestine and the right of Israel to live within safe and secure boundaries. The peace initiative of 6DXGL &URZQ 3ULQFH $EGXOODK has been welcomed as a significant contribution towards a comprehensive peace. Together with its partners the United States, Russia and the UN, the EU will continue to demand that UNSCR 1402 and 1404 be implemented immediately. The Quartet urges both Israel and Palestine to reach an agreement on the ceasefire proposals put forward by *HQHUDO=LQQL and to implement the 7HQHW and 0LWFKHOO 3ODQV. - On 29th May 2002, President of the Russian Federation, Vladimir Putin, President of the European Council José Aznar, President of the European Commission Romano Prodi and EU High Representative Javier Solana, issued a joint statement at the Russia-European Union Summit in Moscow. The European Union and the Russian Federation re-iterated its deep concern for the evolving situation in the Middle East.

6 The group stated that the preparation of an international Conference on the crisis was the most urgent task, and re-affirmed its commitment to work towards peace within the framework of the ‘Quartet’. - On 2nd May, 2002, EU High Representative Javier Solana, UN Secretary General Kofi Annan, Russian Federation Foreign Minister Igor Ivanov, US Secreatry of State Colin Powell, and Spanish Foreign Minister Josep Pique, met in Washington in the margins of the US Summit to re-assess the situation in the Middle East. It was agreed to work towards a set of principles that will form the basis of a meeting in the early summer to resume the peace process between Israel and the Palestinians. Speaking in Washington, President Romano Prodi said: 7KLV LV SUHFLVHO\ WKH UHVXOW , KDG FDOOHG IRU LQ DOO P\ FRQWDFWV ZLWK WKH SDUWLHV$UDE OHDGHUV DQG 3UHVLGHQW 3XWLQ $WWKH (886 VXPPLWWRGD\ZKLFK SUHFHGHG WKH TXDUWHW PHHWLQJ ZH DJUHHG ZLWK 3UHVLGHQW *HRUJH : %XVK RQ WKLVZD\IRUZDUG7KH(XURSHDQ&RPPLVVLRQZLOOGRLWVXWPRVWWRVXSSRUWWKHVH HIIRUWVWRVHFXUHDODVWLQJSHDFHLQWKH0LGGOH(DVW’ The ‘Quartet’ first met in Madrid in April 2002, and has agreed to keep the situation in the Middle East under review through regular consultations. Special envoys from each member of the Quartet will continue their efforts on the ground to assist the parties in reaching an end to confrontation and a resumption of political negotiations. - The Speaker of the Knesset (Israeli Parliament) $YUDKDP %XUJ met with rd President 3DW &R[ on 23 April, and European th Commission President 5RPDQR3URGL on 24 April in Brussels. Mr Burg stated that ‘(XURSH VKRXOG EH D NH\ SOD\HU LQ DQ\ SURFHVV WR DUUDQJH SHDFH LQ WKH 0LGGOH(DVW¶. At a joint press conference with his EU counterpart he put forward some elements for a possible solution to the Israeli-Palestinian conflict, namely an international policy for the Middle East, involving the EU, the US, and others in a Madrid II Conference, aiming to translate the Saudi initiative into a work plan with a wide participation, including notably Saudi Arabia, Egypt, Jordan and Morocco. - EU Ministers discussed the current situation at the Euro-Mediterranean Conference in Valencia on 22nd-23rd April 2002. Additionally, on 23rd April, and ‘enlarged Troika’ (in practice all 15 EU Member States) had three successive meetings with Palestinian Minister Nabil Sha’ath, the group of Arab Foreign Ministers and Israeli Foreign Minister Shimon Peres. In his speech to the European Parliament on 24th April, European Commissioner for External Relations Chris Patten repeated the EU demand for the full withdrawal of Israeli troops, expressed strong support for the UN fact finding mission to Jenin and called for full access for humanitarian operations to the affected areas. The European Union will continue to consolidate the Palestinian Authority and to assist in reconstruction while linking this with the need for an accompanying political process. The European Union attaches special importance to reviving economic activity and investment in Palestinian territory. The European Commission plays a crucial role in preserving the 3DOHVWLQLDQ$XWKRULW\ as a partner for peace in negotiations between the Palestinians and Israel by providing substantial financial assistance. In Barcelona, the Council reaffirmed its pledge of substantial economic contributions towards peace-building in the , improving the living conditions of the Palestinian people, consolidating and supporting the PA, strengthening the economic basis of the future State of Palestine and promoting development and regional economic integration. Funds have been allocated towards infrastructure, capacity building, human rights, peace projects, food programmes, health and education programmes, shelter, water and social assistance.

7 On 28th January 2002, the General Affairs Council condemned attacks on projects funded by the EU, stating that: ‘the European Union urges the Government of Israel to put and end to this practise and reserves the right to claim reparation in the appropriate fora’. Since the Oslo peace process (between 1994 and 2001) the European Union assistance to the Palestinians has amounted to1.444 billion ..

(XUR0HGLWHUUDQHDQSDUWQHUVKLS nd - On 22 April 2002 the EU and $OJHULD signed WKH (8$OJHULD $VVRFLDWLRQ $JUHHPHQW in Valencia. Aside from laying an important foundation for economic liberalisation in Algeria, the Agreement sets up institutional structures for an intensified political dialogue and for co-operation across a wide range of fields, including money-laundering, drugs and terrorism. One clause regarding the fight against terrorism is specifically dedicated to future co-operation in this field between the two parties, involving notably exchanging of information and experience as well as joint training. This co-operation will be conducted as part of the implementation of the United Nations Security Council Resolution 1373 and existing international anti-terrorism conventions. The agreement will enter into force after ratification by the Parliaments of Algeria and of the 15 EU Member States, and by the Euoprean Parliament. - The European Commission and /HEDQRQ concluded negotiations on an Association Agreement on the 10 January 2002. Closer ties in the future aim to lead better prospects for economic prosperity and political stability, whilst consolidating the Euro-Mediterranean partnership. The new Association Agreement will cover far more than trade and economics. It will set up new institutional structures for an LQWHQVLILHG SROLWLFDO GLDORJXH and for FR RSHUDWLRQ across a very wide range of fields, from education and culture to the fight against crime, money laundering and drugs. Both parties have made a commitment to uphold human rights and democratic principles. In an annex to the Agreement signed through an exchange of letters, both parties have commited to respect United Nations Security Resolutions, to exchange information on terrorist groups and networks that support them, and to integrate all efforts in the fight against terrorism.

)RUPRUHLQIRUPDWLRQ http://europa.eu.int/comm/external_relations/news/patten/11_09_01.htm http://europa.eu.int/comm/external_relations/euromed/index.htm http://www.eurunion.org/partner/EUUSTerror/EURespUSTerror.htm

 For more information: http://europa.eu.int/comm/external_relations/mepp/index.htm  For more information: http://europa.eu.int/comm/external_relations

8 5HFRQVWUXFWLRQRI$IJKDQLVWDQ The EU is fully committed to all aspects of the Afghan process: it hosted the Bonn Conference which provided the blue print for Afghanistan’s future; it has participated fully in all military and security aspects; it has been a major donor of humanitarian aid (¼PLOOLRQVLQFH6HSWHPEHUDORQH DQGLWKDVIURPWKHRXWVHWUHSHDWHGO\ declared its clear support for the long term reconstruction effort, pledging in January 6 2001 up to ¼ PLOOLRQ at the Ministerial Afghanistan Reconstruction Steering Group in Tokyo. In view of the Commission’s and the European Union’s long-term commitment to the Afghan people, the Commission intends to propose to the EU’s budgetary authority to provide assistance that on average will be at comparable level in the remaining four years foreseen for this pledging session. The Commission will do this with the view to achieving a contribution from the European Community Budget of approximately ¼ ELOOLRQ RYHU WKH SHULRG  WR DVVLVW LQ WKH UHFRYHU\ DQG reconstruction of Afghanistan and bring an end to the long-term suffering of its people. The EU stresses that these long-term contributions are conditional on the full implementation of the letter and the spirit of the Bonn/Petersberg Agreement. The EU believes that this is the best guarantee for the establishment of a Representative Government, as well as a new social, political and economic reality based on democratic values and the respect for human rights, gender equality and political and religious tolerance.

/DWHVWQHZV th - At the (85XVVLD6XPPLWon the 29 May, the EU and Russia reiterated their commitment to promote efforts on the post-conflict rehabilitation in Afghanistan, with the UN playing the central coordination role. Both the EU and Russia will continue to support the Bonn Agreement, and look forward to the success of the planned Loya Jirga.The Commissioner for External Relations, Chris Patten, visited Afghanistan from 20th-23rd May 2002. The main objectives of the visit were to make an assessment of the political transformation underway in the country, and to review ongoing co-operation. During his visit, the Commissioner met the Chairman of the Afghan Interim Authority Hamid Karzai, the Foreign Minister Abdullah Abdullah, with Zahir Sha, the recently returned former Afghan King, the Commission preparing the Loya Jirga (Great Council to be held in June) as well as the command of the International Security Assistance Force (ISAF). He also opened the Commission Representation office in Kabul. The main areas of activities of the office are: bilateral relations with Afghanistan, support for recovery and reconstruction and humanitarian assistance. In addition, the European Commission has been present in Kabul since January 2002 for humanitarian operations. (ECHO). Speaking before his visit, Commissioner Patten said : µ7KH (8 KDV PDGH D YHU\ VHULRXV ORQJWHUP FRPPLWPHQW WR ZRUNLQJ ZLWK VXFFHVVLYH DXWKRULWLHV LQ $IJKDQLVWDQ WR JLYH WKH SRSXODWLRQ RI WKLV TXLQWHVVHQWLDOO\ µIDLOHG¶ VWDWH WKH VWDEOH WZHQW\ILUVWFHQWXU\ HQYLURQPHQWLWGHVHUYHV¶

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9 th - On 15 May, the Commission announced its decision to finance a ¼P programme to raise public support for the $IJKDQ ,QWHULP $XWKRULW\ $,$ , using the Rapid Reaction Mechanism. The main objective of this programme is to provide rapid support for the interim Afghan Authority by building up its institutional capacity, and to build confidence among the Afghan population and its different ethnic groups. - On 3rd April, the Afghan Interim Authority announced new measures to eradicate cultivation of opium poppies in Afghanistan. Under this scheme, farmers whose crops are destroyed in the presence of special inspectors will be compensated at a level which will exceed the revenue available from growing wheat. Those who persist in cultivation will have their land confiscate, while trafficking and possession will be subject to prison sentences. The EU welcomed this decision, and will provide assistance through the ¼P IRU UXUDO UHFRYHU\ DQG IRRG security package. The Commission will also provide ¼ WRZDUGV technical assistance to help the AIA strengthen its counter-narcotics policy making and law enforcement capacity. The trade in illegal drugs has both contributed to and become a symptom of Afghanistan’s status as a failed state. Drug money, organised crime and terrorist networks are closely entangled. The Commission believes that providing assistance in this area is profoundly in the interests of both Europe and Afghanistan. - On the 30 January 2002, the Member States approved a ©TXLFN LPSDFWª SDFNDJH of ¼SURSRVHGE\WKH&RPPLVVLRQ7KHPDLQREMHFWLYHRI this package is to support the stabilisation of the country by contributing to basic governance and meeting basic needs. The components are: support to public administration which is essential to future political stability and to strengthening State legitimacy, rural recovery, mine action (clearance, mine awareness and victims rehabilitation) and urban infrastructure and planning. - Commissioner for External Relations Patten represented the European Commission at the 0LQLVWHULDO3OHGJLQJ&RQIHUHQFHLQ7R\NR (21-22 January 2002) at which 65 countries were invited to participate, along with the international financial institutions, the United Nations, UN aid agencies, international organisations and NGOs. - $IJKDQLVWDQ'RQRUV6WHHULQJ*URXS&RQIHUHQFHLQ %UXVVHOV organised by the European Commission and the Belgian Presidency from the 20-21 December: Donor States met to identify priority sectors for quick-impact projects in support of the new interim Authority of Afghanistan. This Conference addressed development-related issues: needs assessment, quick-impact projects, co-ordination of donors with UNDP-WB-ADB. In the margins of the conference, Chris Patten, Commissioner for External Relations and Mark Malloch-Brown, Administrator of the United Nations Development Programme, signed on 20 December a ¼  PLOOLRQ SDFNDJH RI (& VXSSRUW WR WKH 81 V $IJKDQLVWDQ,QWHULP$XWKRULW\)XQG. - Following the establishment of the Afghan Interim Authority in %RQQ on 5 December, the European Commission committed to provide financial assistance towards the administration. At international donors' meeting organised on the 20 November in :DVKLQJWRQ, the Commission committed itself to lead a sustained EU relief and reconstruction effort towards Afghanistan. In parallel to this political process, international financial institutions (WB, UNDP, and ADB) met in ,VODPDEDG between 27-29 November in order to discuss financial implications of reconstruction in Afghanistan. For more information: http://europa.eu.int/comm/external_relations/afghanistan/intro/index.htm

10 +XPDQLWDULDQDLGWR$IJKDQLVWDQ The European Union is taking care to see that an already dire humanitarian situation in Afghanistan, the result of years of conflict, drought and negligence, does not deteriorate any further. Via ECHO, its Humanitarian Aid Office, the European Commission is, apart from the United States, the biggest donor of humanitarian aid for Afghanistan - ¼PLOOLRQ since 1993. If food aid and assistance for Afghan refugees in neighbouring countries are added, the total figure granted by the EU to Afghanistan since 1991 comes to over ¼PLOOLRQ - The aid is delivered by over 20 partner organisations, most of them NGOs but also the UNHCR (the UN High Commission for Refugees), the WFP (World Food Programme), UNICEF (UN Children's Fund) and the ICRC (international Committee of the Red Cross). - Support is provided to bring together donors, UN agencies and NGOs in order to improve the emergency response, the NGO co-ordination body in Afghanistan and to analyse aid policy and implementation. - The Commission's assistance is going to help displaced people in Afghanistan and Afghan refugees in neighbouring countries. It provides help with PHGLFR QXWULWLRQDO projects, VKHOWHU FRQVWUXFWLRQ and ZDWHU DQG VDQLWDWLRQ in the camps of Internally Displaced People (IDPs); IRRG UHODWHG DVVLVWDQFH to resident populations in rural areas. Many of these projects were under way on the 11 September in view of the massive drought. The main priorities since then are: to meet LPPHGLDWH OLIHVDYLQJ QHHGV, provide water, healthcare, shelter through national staff of relevant agencies and to support refugee needs in neighbouring countries. - Commissioner for Development and Humanitarian Aid Nielson travelled to Afghanistan and Pakistan during the week of the  RI 'HFHPEHU  to meet ECHO (European Commission Humanitarian Aid Office) partners and other key actors in the current crisis. He travelled to Kabul where he met with representatives of the Northern Alliance and visited Commission funded projects. In Islamabad, he met representatives of the Pakistani government including President Musharraf as well as EU ambassadors and aid agencies. Whilst in Peshawar, he visited the Shamshatoo refugee camp. - The Commission was strongly involved alongside the Member States in the international démarches undertaken to persuade the 8]EHN DXWKRULWLHV to facilitate access of humanitarian aid to Afghanistan, notably international NGOs and to reopen the "Liberty Bridge" across the river Amu Daria, on the border between the two countries.

11 (&+2VWUDWHJ\ - Millions of Afghans are still depending on the delivery of emergency relief. On 30th April 2002, the Commission approved two further humanitarian aid packages for Afghanistan, totalling almost ¼P. The first decision, for more than ¼PZLOOHQVXUHFRQWLQXLQJDVVLVWDQFHIRUYXOQHUDEOHJURXSVDIIHFWHGE\ the civil war, drought and conflict. The second decision allocated more than th ¼PIRUYLFWLPVRIWKHHDUWKTXDNHWKDWVWUXFNWKH%DJKODQUHJLRQRQ March. - Projects will concentrate on improving the nutritional and health status of the worst affected groups. Shelter and other non-food items are also being provided. In the region worst affected by the earthquake, the focus is on rebuilding homes, schools, clinics and wells. In operational terms, Food For Work and Cash for Work operations are likely to be continued by ECHO as they have a quick impact and represent a good link between emergency and recovery. As already done even during the Taliban era, projects will be designed for men and women. While men will be occupied with public works, women will produce quilts and clothes to be distributed to other vulnerable. Most of the aid will be directed to rural areas as 85 % of the population of Afghanistan live on agricultural activities affected by drought for the fourth year. Most of the operations will be linked to the drought context (rehabilitation of wells and irrigation structures). These participatory operations are a good way to bring assistance to the most vulnerable people without fostering a mentality of assisted.

$VVLVWDQFHLQ In 2001(&+2PRELOLVHG¼PLOOLRQRIZKLFK¼PLOOLRQZDVGHFLGHGDIWHU 11 September. Together with food aid (¼PLOOLRQ DQGDLGIRUGLVSODFHGSHUVRQVLQ neighbouring countries (¼ PLOOLRQ  WKH WRWDO DPRXQW RI DLG PDQDJHG E\ WKH Commission for Afghans in 2001 cams to ¼ PLOOLRQ. Taking the EU Member States' individual contributions into account WRWDO(8DLGFRPHVWRRYHU¼IRU  For more information: http://europa.eu.int/comm/echo/en/whatsnew/whatsnew_1.htm

12 $LUWUDQVSRUW Since the terrorist attacks of the 11 September, the issue of transport security - and in particular, increased air transport security - has moved to the top of the agenda. - The Brussels European Council on the 21 September 2001 called on EU transport ministers to take measures covering classification of weapons, technical training for crew, checking and monitoring of hold luggage, protection of cockpit access and quality control of security measures applied by Member States. The conclusions of the ad hoc group on air transport security issues were presented to the Transport Council on 7 December 2001. - On the 10 October 2001, the Commission put forward proposals to improve checks on passengers and luggage. It also proposed to the Member States that a series of inspections of airport security standards should take place with the aim of enhancing the level of checks carried out in Europe. On both international and domestic flights. Inspections on the real implementation of these measures would be made at the national and European level by international teams. The European Parliament already made a first reading and the Council agreed on a common position on 7 December 2001. The proposal could be adopted before Spring. - The Laeken European Council welcomed the adoption of a common position of the Council regarding the regulation on aviation security. - On the international front the EU submitted a proposal to the ICAO (International Civil Aviation Organisation) on the 26 September 2001 calling for it to build up a set of mandatory international security rules for domestic as well as international flights, and to monitor compliance with them. Following this initiative, an international conference at Minister level will take place on 19-20 February 2002. The European Union has defended a single position on main security issues (implementation of measures already agreed at the international level, study of new measures, improvement and development of audit systems). The conclusions adopted are encouraging but will have to be confirmed in the coming months. - Airlines have undoubtedly been hard hit by the attacks. On the 10 October 2001 the Commission put forward proposals designed to ensure that they do not have to bear any extra costs. These include flexible application of the rules on slots, possible compensation for losses incurred and government support to cover the cost of security measures. It would be irresponsible, however, to bail out the airlines using public money. Such a course of action would distort competition and unleash a costly subsidy war. The Commission intends to see that European State aid rules are strictly enforced. But it is important in this connection to make a clear distinction between the actual cost of the 11 September attacks, for which the Commission is proposing remedies, and the structural problems of the air transport industry, which were apparent before the attacks and will have to be tackled by a restructuring of the sector. EU's Transport Ministers expressed support for this approach at their meeting in Luxembourg on 16 October 2001. For more information: http://europa.eu.int/comm/dgs/energy_transport/en/whats_new_en.html

13 (FRQRPLFDQGILQDQFLDOSROLF\ One key European Union aim is to GU\XSWKHVRXUFHVRIWHUURULVWIXQGLQJ. The 19 October 2001 European Council in Ghent reiterated the importance of effective measures to combat the funding of terrorism by formal adoption of the Directive on money laundering and the speedy ratification by all Member States of the United Nations Convention for the Suppression of the Financing of Terrorism. - The European Commission welcomed the definitive adoption by the EU Council of Ministers on the 19 November of the proposal to upgrade the EU's PRQH\ ODXQGHULQJ'LUHFWLYH. This newly approved legislation extends the obligations to notify suspicious transactions to FHUWDLQ QRQILQDQFLDO SURIHVVLRQV and sectors and widens the definition of laundering to the proceeds of all serious crime (including terrorism). The new rules will cover professions not covered by US anti-money laundering legislation, such as accountants, auditors and lawyers. The Directive is a significant tool in the struggle against the financing of terrorism and organised crime. Member States will now implement the text within 18 months. - The Commission and the Member States are playing an active role in the work of the )LQDQFLDO$FWLRQ7DVN)RUFH, the leading international body in the fight against money laundering and the financing of terrorism. At its last plenary meeting in October 2001 in Washington, the FATF adopted a series of recommendations to combat the financing of terrorism (e.g. reporting of suspicious transactions linked to terrorism, strengthening customer identification measures in international wire transfers, etc.). The Commission and the Member States are ensuring that these recommendations are fully applied in the EU. Every opportunity will be taken to promote these recommendations in third countries. - In the wake of moves by LQVXUDQFH FRPSDQLHV drastically increasing the cost of cover for acts of war or terrorism, for airlines and airports, the Commission asked the Council of Finance Ministers to come up with a co-ordinated response. The Council supported the Commission's flexibility, which allows Member States to provide exceptionally, and as a short-term measure, cover or pay the higher premiums. This possibility has been extended on a monthly basis until the end of the year. The European Commission said it could maintain this flexibility for airlines at least until the end of March 2002, as it happens for American and Japanese airlines. A single approach has been defined in order to avoid any competition distortion. - The Commission presented a report on the impact on the WRXULVPVHFWRU of the September 11 terrorist attacks. If properly implemented, measures recently foreseen in a Communication on "the Future of European Tourism", should help alleviate the impact of any long-term negative effects. - The General Affairs Council on 10 December agreed on a Regulation text regarding the freezing of funds in relation to terrorism. The European Parliament gave a favourable opinion on the agreed text on the 13 December, which is a major step forward. (A specific working group at the Council is currently working on a list of targeted persons and entities. The publication of the act, including the first edition of the list, is likely to take place within the next few weeks.) - The Finance Council of 13 December 2001 reached unanimous orientation agreement on proposed Directive to counter insider dealing and market manipulation:

14 The Council unanimously reached an orientation agreement on the proposal for a Directive on market abuse (see IP/01/758 and MEMO 01/203). The proposed Directive is based on the principles of transparency and equal treatment of market participants. It aims to reinforce protection against insider dealing and market manipulation by building one set of rules for all the EU's financial markets, thus reducing potential inconsistencies, confusion and loopholes. It would heighten investor protection and make European financial markets more attractive. It was identified by the 16 October joint Finance/Justice Council as a key measure in the fight against the financing of terrorism. The Council can adopt a Common Position once it has received an Opinion from the European Parliament. For more information: http://europa.eu.int/comm/internal_market/en/finances/banks/01-1580.htm http://europa.eu.int/comm/enterprise/whatsnew.htm

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3XEOLF+HDOWK In the event of a bioterrorist attack the public health response is critical in identifying the nature of the attack and the appropriate response. Civil protection measures must be in place to deal with these needs. Since September 11, the Commission has promoted discussions on preparedness for bioterrorist threats. Health ministers have met several times to discuss EU-wide co-ordination of efforts. Each Member State has appointed a senior representative to discuss these measures. The EU already has a communicable disease network, including a rapid alert system for any outbreak of infectious diseases. These representatives have already met, and their work will focus on: - co-ordination of public health emergency planning and preparedness - availability of the appropriate treatments. EU-wide action adds value by: - drawing on all Member States' expertise (epidemiologists, microbiologists, logistics, IT, etc.) to assess what measures are needed - reinforcing warning systems, rapid response capacities, analytic capacity and surveillance - developing clear, authoritative communication with the general public, - increasing training for the first line of alert: GPs, vets and pharmacists, - planning for burden sharing of costly logistics like stockpiles and equipment, - co-ordinating international co-operation with partner countries and organisations such as the WHO and the OECD. Health Ministers of the G7+ agreed joint action to improve safeguards in Ottawa on 7 November. A rapid communication and reaction network has been established. The Commission is also in close contact with WHO. On 15 November, the Health Ministers of Member States met and agreed a set of priorities to establish a health expert consultation mechanism, strategies on availability and stocks of serums vaccines and antibiotics and a European network of experts for evaluating managing and communicating risks. Commissioners Byrne and Wallström addressed the European Parliament's Environment Committee on 4 December with an update on emergency preparedness.

15 $YDLODELOLW\RIPHGLFLQDOWUHDWPHQW Plans for an EU-wide strategy to ensure supply of medicinal products for preventing or treating the effects of a biological attack were debated at a special meeting in Strasbourg in November. To address potential risks in the EU as a whole, the Commission aims to develop an inventory of possible biological agents and their related treatments.

&LYLO3URWHFWLRQ In response to a request by EU Heads of State and Government, the European Commission approved a Communication on 28 November setting out the action it has taken to mobilise its resources, expertise and networks in the area of civil protection to respond to terrorist threats. At the European Council in Ghent, the Heads of State and Government called on the European Commission and the Council to organise an urgent and co-ordinated programme to respond to the threat of bio-terrorism. The Commission will appoint a European Co-ordinator for Civil Protection within the Commission. Quickly after the 11 September events, the Commission, with full backing from Member States moved to anticipate entry into force of a new Civil Protection Mechanism (foreseen for 1 January) co-ordinated by the Commission, which reinforces the EU civil protection capabilities. In light of the events, the co-operation was extended to include: The pooling of expertise in the Nuclear, Biological and Chemical fields (NBC experts), available 24 hours a day to assist any country that requests help. Enhanced co-operation on information-sharing concerning antidotes, vaccines, antibiotics, and access to hospital treatment for any victims of such attacks; Creation of a system of immediate and systematic exchange of information relating to accidents or threats of terrorist attack; Creation of a Civil Protection monitoring and information centre in the Commission

5HVHDUFK The Commission has put in place a group of experts nominated by the Member States to identify means of combating biological and chemical threats. The group first met on 12 December 2001. Its mandate is to draw up an inventory of research activities currently in progress; examine how these activities can best be mobilised and co-ordinated; and identify what gaps there are and what additional research is needed in the short and long-term. A first progress report should be presented to the next Research Council on 11 March 2002. Moreover, the Commission is also examining how best to include actions to combat terrorism in its 6th research framework programme. For more information: http://europa.eu.int/comm/health/whatsnew/index_en.html

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