Wednesday, 15 May - Jacques Poos, in his capacity as President of European Political Cooperation, told the House this afternoon that Israel could benefit from closer economic relations with the EC if the Middle East peace process was successful. He said these ties could possibly take the form of economic integration, similar to that envisaged between the EC and EFTA countries.

In answer to subsequent questions by MEPs - one queried a change in internat-ional geography - he clarified that it was too early to make a decision on the precise type of new economic links with Israel, whether it be a form of assoc-iation or economic area. However, he stressed that such a proposal could only be envisaged in the context of a peaceful Middle East.

As for the peace process, he emphasised that Europe must be involved. Currently, the EC was giving its full support to the initiative by the US Secretary of State, James Baker, he said. He was optimistic that a peace conference would take place although he acknowledged that two main difficulties remained concerning the role of the conference and the composition of the Palestinian delegation.

Following talks yesterday with Israel's Foreign Minister, Mr Poos said that Israel was aware that peace must now be established in the Middle East and that in the long-run it could not afford to be isolated. He hoped the EC could play a mediator's role in thhe whole peace process.

Replying to a series of questions, Mr Poos gave an assurance that the EC, with UN help and military coordination via the Western European Union, was doing everything possible to ensure that humanitarian aid for the Kurds was reaching those in need. He confirmed that sanctions against Iraq would be maintained and that the idea of an international court to judge Saddam Hussein for crimes against humanity was being examined.

In answer to questions by Paddy Lane (Munster, EDA) and others about the need to keep up moral pressure on Israel regarding its treatment of the Palestinian people, Mr Poos confirmed that this would continue and affirmed that Israel had been asked to stop the policy of settlement in the Occupied Territories. It had also been urged to give more free movement to the people there and to reopen the universities.

Replying to concerns raised by Christopher Jackson (Kent East, ED) about the hostages in Lebanon, he said the freeing of the hostages would be seen as a gesture of confidence. On arms control, he told Mr Jackson and Raymonde Dury (B, Soc) that an ad-hoc committee had been instructed by the EC Foreign Ministers to come up with specific proposals to control arms exports and a world-wide register of arms sales. A conference for cooperat-ion and security in the region would be a logical follow-on to the peace process, he added.