THE RIGHT HONOURABLE

CHRISTOPHER F. PATTEN, CH

MEMBER OF THE EUROPEAN COMMISSION

RUE DE LA LOI 200, 1049 BRUXELLES

WETSTRAAT 200, 1049 BRUSSEL

Brussels, 21 October 19

A/99/0090

Dear Olivier Dupuis,

Thank you for letting me see your proposed amendments to the 2000 Budget. They raise a number of important issues of foreign policy and development cooperation which I am sure we will have a chance to discuss in more depth over the coming months, and not simply in the context of the budgetary process.

I fully support your desire to give more substance to the EU's relations with India, a point which I made to Jaswant Singh last month. I am currently considering the follow-up to the European Parliament's report on EU-India relations. While decisions on summits are a matter for the Presidency and the Council, I am sceptical that they are the best way to strengthen our relations.

The question of continued development cooperation for Pakistan which you proposed blocking, even in advance of last week's events has obviously become very topical. The issue will be discussed at the next General Affairs Council. But in reviewing existing commitments and considering new ones, we should not forget that our aid to Pakistan is directed at the poorest.

You also propose blocking assistance to Vietnam because you believe that there has been no serious political and economic reform. I share your view that more is required on both the economic and human rights fronts in Vietnam, and we must be vigilant and take every opportunity to press the Government on the need for further progress. But Vietnam has made progress towards establishing open and constructive relations with the international community and towards the development of a free market economy, including the current discussions about the accession of Vietnam to the WTO. The EC-Vietnam economic and development strategy is intended to support the political and economic reform programme underway since 1986, through technical expertise for accounting, auditing, intellectual property and economic planning, to name but a few sectors. The severe impact on Vietnam of the financial crisis has contributed to a slowdown in economic reform, and political reforms have also not been as rapid as we would like, but th

ere is a conviction in the country that the process is irreversible. And if we are serious about wanting reform, it would be perverse to cut back on programmes intended to support it.

Furthermore, our Development Cooperation Programme in Vietnam is intended to alleviate the social costs of these reforms through, improved credit facilities for small and medium-sized enterprises, poverty alleviation and rural development in selected provinces with a high incidence of poverty and a high proportion of ethnic minority citizens, as well as in the primary health and education sectors and for sustainable environmental development.

You mention a EU Special Envoy for Tibet. What is essential is that China engages in a dialogue with the Dalai Lama over Tibet. I am not convinced that in the absence of such a dialogue, a Special Envoy would have any added value.

Finally, you propose the opening and upgrading of a number of delegations. Obviously resource limitations determine the size and number of our network. This is an issue I will want to look closely at in coming months with my Relex Commissioner colleagues. Opening and upgrading delegations may well require the closure of others.

I look forward to working with you closely on Asia over the next five years, given our shared interest in the subject.Best wishes.

Friendly,

Chris Patten