HL Deb 03 March 1999 vol 597 cc1660-2

3.5 p.m.

Lord Hylton asked Her Majesty's Government:

Whether they will urge use of the European Union's foreign, trade and development policies in support of the achievement of sustainable peace between Israel and the Palestinians.

The Parliamentary Under-Secretary of State, Foreign and Commonwealth Office (Baroness Symons of Vernham Dean)

My Lords, the EU has consistently worked to promote a negotiated peace between Israel and the Palestinians based on the Oslo Principles and subsequent agreements. It continues to do so with active British support. The EU welcomed the Wye Agreement and has called on both parties to implement the agreement fully and without the introduction of new conditions. The EU is the largest aid donor to the Palestinians and plays an important role in pressing for action on the development of the Palestinian economic infrastructure. We and other partners are continuing to do all that we can.

Lord Hylton

My Lords, I thank the Minister for her very full reply. Does she agree that a comprehensive EU approach would include the creation of a Palestinian state, the removal of some Israeli settlements from the West Bank and Gaza, an equitable division of water resources and some international control over the old city of Jerusalem and the principal Holy places?

Baroness Symons of Vernham Dean

My Lords, the noble Lord is extremely skilful in putting a lot of questions in one short supplementary question. I shall try to deal with the four issues which he raised.

At the moment, it is important to ensure the implementation of the Wye Agreement. It is vital that both sides refrain from unilateral acts and provocative statements which undermine confidence and which jeopardise the progress which we are trying to make in putting Wye back on track. We support the Palestinian right to self-determination and that does not exclude the option of a state. But we look for that to be achieved through negotiation.

On the question of the settlements, the EU continues to monitor closely the developments on the ground, including the building and expansion of Israeli settlements in the occupied territories and the actions in east Jerusalem. We recently published a summary of that settlement activity and the presidency undertook a demarche to the Israeli Government as recently as 15th February.

On the question of water, we are playing an active role through the EU in the multi-lateral water resources working group and DfID continues to assist the Palestinians on water issues.

I believe that I have dealt previously with the issue of Jerusalem. The Government have made their views well known on that to the Israeli Government.

Lord Clinton-Davis

My Lords, does my noble friend agree with a conclusion that I reached during a ministerial visit to Israel and Gaza last year that, given the opportunity that peace would provide, there is an overwhelming desire on the part of the business communities in both Israel and Palestine to engage together to tackle major infrastructure problems, trade problems and, indeed, to deal with the issue to which she has particularly adverted; namely, the difficult issues affecting water. If my noble friend agrees with that conclusion, is she encouraged by the fact that there is this community of interest between the two business communities?

Baroness Symons of Vernham Dean

Yes, my Lords. I do believe there is that community of interest. The EU is promoting the development of regional trade through the support for regional cumulation of origin between Israel, the occupied territories, Egypt and Jordan. We believe that encourages partners to trade with each other and helps to develop the sort of industrial base to which my noble friend refers, and which is so important. That is in addition to the work that the EU is doing on the infrastructure questions, which my noble friend raised, particularly in relation to the Gaza airport, the seaport and the industrial estates. That should all help to add to the economic stability of the area.

Lord Beloff

My Lords—

Lord Redesdale

My Lords—

The Lord Privy Seal (Baroness Jay of Paddington)

My Lords, I think it is for the noble Lord, Lord Beloff, to speak. I am sure that there will then be an opportunity for the noble Lord, Lord Redesdale.

Lord Beloff

My Lords, does the Minister agree that the poverty of many of the Palestinians is one of the main problems because it provides opportunities for recruitment into terrorism, which is, after all, the main obstacle to peace? As the Minister stated, the EU is the major donor of aid to the Palestinians. Is there machinery in place to ensure that the aid goes to the poor masses of the Palestinians and is not syphoned off for luxury living by Mr. Arafat and his associates?

Baroness Symons of Vernham Dean

My Lords, the decline in Palestinian living conditions has been a matter of major concern. I hope I have outlined to your Lordships the action being taken by the EU to ensure that aid gets to where it is needed. There is a continuing and important role for the European Union to play in that respect. The recent ad hoc liaison committee and consultative group meetings in Frankfurt focused on how the international donor community can support the Palestinians directly and through the NGOs with advice, aid allocation and project implementation.

Lord Redesdale

My Lords, considering the recent fall in the living standards of those living in the camps and the standard of services being provided in the camps, can the Minister say whether Britain and her EU partners are considering an increase in the UNRWA budget?

Baroness Symons of Vernham Dean

My Lords, the EU is already the largest donor to the area. I believe that it was a United Kingdom initiative. However, as a result of that, the European Union has engaged Israel in a dialogue to find practical ways to ensure that the money gets through to the Palestinians, to the economy, in ways that Israel will find compatible with its security. Obviously that takes a certain amount of application and work. However, we and the EU believe that the existing initiatives I have described as regards what happened recently in Frankfurt will deliver tangible benefits to the Palestinians.

Lord Cocks of Hartcliffe

My Lords, would the Minister invite the noble Lord, Lord Hylton, to use some of his wide-ranging foreign energies to put pressure on the oil-rich Gulf states to make a contribution to the Palestinian economy to strengthen the peace process?

Baroness Symons of Vernham Dean

My Lords, I am sure that all people of goodwill, both within the immediate region of Palestine and Israel, and indeed elsewhere, should be persuaded to do what they can to support the Palestinian economy. There are a number of ways in which that can be done, through the trading alliances—which I have already described, and which the EU is trying to promote between Egypt and Jordan who are, in fact, engaging in that process—by directly supporting the infrastructure and, most important of all, in supporting the peace process. Unless we get the peace process right, there will be no prosperity for the Palestinians.