MAIN PRIORITIES OF SPAIN'S FOREIGN POLICY

1. European Union

Spain's relations with European Union constitutes the most important pillar of its foreign policy. The Socialist government of Mr Zapatero can take credit for having restarted the talks that allowed for the approval of the new European Constitution and of having taken the first steps to take Spain back to the centre of the EU, by re-establishing closer ties and consultation with France and Germany. Spain's relations with most of the member states of the European Union are cordial although its relations with the UK and Italy are still clouded somewhat by Mr Zapatero's decision to withdraw Spanish troops from Iraq. In the case of the UK, the Gibraltar issue has caused tensions but the governments have now agreed to find a negotiated solution.

2. Mediterranean Basin

Peace, stability and prosperity of the Mediterranean Basin is of vital importance to Spain. Spain has played a key role in the Barcelona process which envisages close cooperation between the EU and the Mediterranean Basin. Spain maintains good relations with most Arab countries and has also expressed strong support for a lasting, just and durable two state solution in Palestine and Israel. The leaders reaffirm their commitment to achieve a just, comprehensive, and lasting settlement consistent with the Road Map and principles of the Madrid Conference including land for peace and based on relevant United Nations Security Council resolutions, including 242, 338 and 1379 and took note of recent regional development and initiatives, including the Beirut Arab Peace Initiative. They call for the rapid and full implementation of the Road Map and encourage the parties to continue on the path of direct dialogue and negotiation in the fulfilment of the vision of two states, a safe and secure Israel and a viable, sovereign, contiguous, democratic Palestine, living side by side in peace and security. The Summit also call for the reinvigoration of efforts to promote progress in the Middle East Peace Process on all tracks, Palestinian, Syrian and Lebanese.

In November 2005, the Euro-Mediterranean Summit in Barcelona approved a five year Action Plan aimed at promoting democracy in the Mediterranean region and at supporting programmes to manage important social issues in the region, such as immigration and education, until the year 2010. As part of the Action Plan, the Euro-Mediterranean Association Partnership was commissioned to work towards peace, security and prosperity in the region as well as to contribute towards a just and permanent agreement to end the Arab-Israeli dispute.

The Action Plan also calls for initiatives in favour of the extension of "political pluralism to the whole region" in order to ensure "the strengthening of democracy, expanding participation public affairs and decision making, and further promoting gender equality.

To enhance respect for human rights and fundamental freedoms, including freedom of expression in accordance with international obligations." The Action plan further stress the maintaining and ensuring the independence of the judiciary and expand access to justice to all. In this context, the European Union will establish a substantial financial Facility to support willing Mediterranean partners' in carrying out reforms, taking into account that successful reforms must develop from within the societies of the region. The Plan also promotes initiatives in each state that will lead to "a growing decentralisation in government power as well as in the management of public affairs and in service delivery".

As part of the Action Plan, the delegations at the Summit reached an agreement to complete the present round of trade negotiations between the European Union and Southern Mediterranean countries before the end of 2006. These negotiations are focused on trade in agricultural, fish and service products. This process is part of a plan to work towards a free trade agreement in 2010 by promoting broad-based equitable sustainable economic development. The Summit also approved the process to create a Euro-Mediterranean Investment Bank in 2006.

The Action PIan also call for the reinforcement and support of the efforts of all countries in the region to meet the Millennium Development Goals, particularly in the areas of education, vocational training and of gender equality, given the importance of human developments and knowledge-based societies to modernisation. The Plan supports programmes to "reduce illiteracy among women and children in the region by half before 2010".

On immigration, the Action Plan proposes initiatives to "create an area of mutual cooperation on migration, social integration, justice and security." The Summit agreed to strengthen the management of regular migratory flows in a comprehensive manner beneficial to the peoples of both shores of the Mediterranean, respecting migrants’ rights and to intensify cooperation on all aspect of illegal immigration between all parties concerned, including human trafficking, reflecting shared responsibility and solidarity. The 35 participating countries also expressed their support for the plans of the Spanish and Moroccan Governments to organise a Euro-African Conference on Immigration in Morocco in March this year.

Although the leaders had initially planned to approve a comprehensive Anti-Terrorism Behaviourial Code, they were unable to reach a consensus on the definition of terrorism itself and on whether violent resistance is acceptable under certain conditions. The predominant position within the European Union (EU) is influenced by the opinions of the United States and Israel on this issue. Some delegations, particularly the Israelis, highlighted that they would "block" any agreement that would "justify violent resistance in any way". Several delegations from Arab countries, on the other hand, had proposed that the "right to self determination" should be seen as a factor that would legitimise attempts to resist a foreign force that occupies a territory and that specific reference be made to the right of the Palestinians to pursue the option of active resistance against Israeli occupation.

The final document of the Anti-Terrorism Behaviourial Code, did not, however, include any reference to the Israeli-Palestinian dispute due to the opposition of the Israeli delegation which announced that the Summit was not the “correct context” to discuss the dispute . The reference to the right to self-determination of people in occupied territories was finally removed by the Arab delegations themselves because they discovered that it would have created an embarrassing situation for countries such as a Morocco and Syria in relation to their occupation of the Western Sahara and Lebanon respectively.

3 Latin America

Spain's special relationship with Latin America has long formed a distinct axis of its foreign policy. The intensity of these relations are founded on historical, cultural and sentimental ties. The exchanges with Latin America go beyond the normal structure of interest and opportunities between nations and are being further consolidated on solid economic, financial and development cooperation foundations. Spain has a very significant economic presence in Latin America and is the second largest investor in the region after the USA.

The Zapatero Government is also pursuing a constructive approach of consultation and engagement vis-a-vis Cuba which has led to a vast improvement in bilateral relations.

The 15th annual Iberoamerican Summit was be held in Salamanca, Spain, on 14 and 15 October 2005. One of the main objectives of the Summit was to approve a series of concrete proposals presented by the newly created Iberoamerican Secretariat that would benefit the Iberoamerican community. The 15 Iberioamerican Summit was established in 1991 and is a mechanism for consultation in which matter of common interest to Latin American countries, Spain and Portugal are addressed. It constitutes the mechanism of Spanish and Portuguese speaking America that most resembles the British Commonwealth, through which United Kingdom and its former colonies keep their historical ties alive.

The newly appointed Secretary General, Mr Enrique Iglesias, announced that his Organisation would present a plan to ensure that Latin America is "totally literate" by the year 2015. He also announced that its first missions will be to visit two of South America's most troubled countries: Haiti, poverty-stricken, afflicted by relentless civil unrest and policed by a UN peace-keeping force; and Bolivia, where elections on December 4 could well see the former coca-growers leader, Mr Evo Morales, take power. A special conference would be held before the next Summit in order to discuss Latin American immigration to other countries and ways in which the situation of immigrants can be improved. The Organisation also plans to promote a common stand by Latin American countries in debate within the international arena. Hopes for a more active and integrated Iberoamerican bloc will now hinge on the work of the Secretariat and largely funded by Spain.

Several countries has called for a resolution that condemns the United States "blockade" against Cuba, which has been in place since 1962, The Ibero-american community committed itself to the rule of International Law and to an effective multilateralism system, to which the community want to contribute: to in a relevant way.

The Ibero-american community also support significant United Nations reform,. based on the principles of efficiency, common participation, transparency, representation, equal sovereignty, democratisation, and the strengthening the Organisation's role in preventing conflicts for peace.

Although the above areas, form the core of Spain's foreign policy objectives, the new government of Prime Minister Zapatero has expressed the desire to actively expand its involvement and relations with Asia and Africa, in particular Sub-Sahara Africa.

SPANISH INVESTMENTS IN LATIN AMERICAN

In the first half of this year, Spanish firms invested more than 2.1 billion Euros in Latin America, down 45.9 percent for the same period in 2004, but still a huge improvement on the 1.4 billion Euros that they disinvest during the first six months of 2003.

One lesson Spanish Businesses have learned is to diversify. Just over 19 percent of overseas Spanish investment is in Latin America. For 2004 that figure was 15.1 percent, while for the previous year it was 14,5 percent, having fallen to 11,5 percent in 2002 from 76.9 percent in 1999, when Repsol bought Argentina's private oil company YPF. At the height of the privatization process between 1996 and 2000, Spanish businesses poured more than 61 billion Euros into Latin America. From 2001, when the Argentine crisis hit, until the first half of this year, Spanish companies invested a total of 16 billion Euros.

Argentina, whose economy is showing signs of recovery again, has been the main recipient of this investment. Net investment in what is the continent's third largest economy after Brazil and Mexico rose to 11 billion Euros, Brazil garnered 432 million Euros Chile 332 million Euros, and Mexico just 153 million Euros. During the 1990s, Argentina captured most of the region's investments from Spain. However, in 1998, Brazil began a deep-rooted privatisation process, which saw it take the lion's share of Spanish capital. Mexico was then number one for the following two years, with Chile taking the lead in 2003. Last year, Spanish companies returned wholesale to Mexico.

Repsol's strategy for the period up to 2009 foresees investment of 26 billion Euros, with 31 percent going to Spain, the same figure being divided between Argentina, Brazil, and Bolivia, and the rest of the world, including Venezuela, and Trinidad and Tobago, taking 38 percent. Repsol is to invest 6.5 billion Euros in Argentina, while in Bolivia, where the privatisation of the oil industry depends on who wins the elections on December 18, it is looking to invest 850 million. Repsol will invest 650 million in Brazil. According to Spanish newspaper reports, the Telefonica Moviles the Spanish telecommunication giant, bought last year the Latin American affiliate of US telecom company Bell South, will invest 4.9 billion Euros until '2008, from the Rio Bravo to Tierra del Fuego. The company has already spent 753 million Euros on its four fixed-line affiliates in Argentina, Brazil, Chile, and Peru, and intends to spend the equivalent of up to 10 percent of that figure up to 2008. In the meantime, it has increased its offer to buy Britain's 02 to 25 billion Euros.

Endesa, the Spanish energy company, currently the subject of a hostile takeover by Gas Natural, has a 14.6 billion Euros investment plan up to 2009, of which 2,5 billion Euros will go to Latin America. The company said in its annual review that around 500 million Euros will go on increasing generating capacity, and the rest on maintenance. The BBVA president, Mr Francisco Gonzalez, recently announced that his bank will continue with its policy of slower growth in Latin America, although he does not rule out acquisitions if the conditions are right. One such opportunity was the Colombian bank, Granadahorrar, which it bought in October for 348 million Euros. Groupo Santander, the biggest Spanish bank who bought Abbey International this year, will invest “whatever is needed” to continue growing in Latin America, its regional director, Mr Francisco Luzon, said in the Bank's annual report which was released last week.

In Latin America's leading economy, Mexico, Spanish investment in the first nine months of 2005 amounted to 10.3 percent of the total. Two thirds of foreign direct investment (FDI) came from the United States. In Argentina, Spanish companies contributed 37 percent of foreign investment in the first half of 2005, with most of it going to infrastructure and hydrocarbons. As French and US companies leave Argentina, their place is being taken by Chinese and Latin American companies.

As the Department is aware, Spain is a significant player in the political and economic arena in Latin America. The Embassy has also alluded to the potential benefits of engaging Spain on "how to do business in Latin America", given Spain considerable economic presence and expertise in the region.

In fact, the new Spanish Ambassador to South Africa, Mr Ramon Gil Casares, mentioned to Ambassador Grobler that President Mbeki raised this matter with him during the exchange of views following the presentation of his credential to the President in Tswane recently. Ambassador Gil Casares stated that he would like to pursue this matter in a concrete manner, in consultation with the Department and with his head office in Madrid.

4 Africa

Spain's relationship with Africa, in the past, was traditionally focused on North Africa and this is expected to continue. The new government has however expressed a strong desire to actively increase Spain's engagement in Sub-Sahara Africa and which envisages improved bilateral relations and constructive participation in multilateral processes and cooperation on the Africa continent. In Southern Africa, apart from South Africa, Mozambique, Angola and Namibia have been identified as priorities. Spain is, apart from South Africa, increasingly involved in development cooperation projects in Mozambique and Namibia particularly in the field of health, education and fishing. Spanish businesses are also increasingly seeking trade and investment opportunities, from a low base, in countries such as Mozambique, Angola, Namibia and to a lesser extent in other countries in Southern Africa. South Africa remains by far Spain's most important economic partner in Sub-Sahara Africa.

In this regard, Secretary of State, Mr Benardino Leon stated on 28 July 2004: "I would like to mention sub-Saharan Africa. Our aim here is to contribute within our means to strengthen the political and security structure in the African continent, at the same time as we hope to help strengthen economic development within the framework of the NEPAD (New Partnership for Africa's Development). In the case of Equatorial Guinea, the Government plans to support political and social reforms to enable bilateral relations to be conducted on a sound and reasonable footing."

5 Equatorial Guinea:

As regards Equatorial Guinea, Spain for historical reasons maintains a strong interest, both political and economic in Equatorial Guinea. From discussions with the Spanish Foreign Ministry, it is evident that although the Zapatero government is interested in maintaining good relations with Equatorial Guinea, it at the same time would welcome moves towards a more stable democracy in that country, with a commitment to the rule of law, human rights and transparency and accountability as far as its economy is concerned.

During a visit to Madrid by the Foreign Minister of Equatorial Guinea, Mr Pastor Micha on 2 February 2006, Spanish Foreign Minister, Mr Miguel Angel Moratinos said that his Government was "committed towards encouraging a process of democratisation as well as of political, institutional and economic modernisation in Equatorial Guinea", and would oppose "any attempt to destabilise or violently overthrow the Equatorial Guinean Government". This is the first time that the Spanish Foreign Minister has met a Member of the Equatorial Guinean Cabinet since the decision to withdraw the refugee status of Equatorial Guinean opposition leader, Mr Severo Moto, for his involvement in several attempts to overthrow the Government of President Teodoro Obiang. During a visit to Malabo in February 2005, Foreign Minister Moratinos also expressed his Government's opposition to attempts to destabilise the country.

As reported earlier, the Spanish Ministry of Interior last month officially informed Mr Moto, that it has officially revoked his asylum status for his alleged participation in attempted coups aimed at overthrowing the government of President Teodoro Obiang.

Last June, the Spanish government accused Mr Moto, who has been in exile in Spain for more than twenty years of having participated in six attempts to overthrow his country's Government and of having supported the recent attack against the Embassy of Equatorial Guinea in Madrid. According to the Interior Ministry, the decision to revoke Mr Moto’s refugee status was taken on the basis of evidence obtained by the Spanish Intelligence Service (CNI) that cited his activities as "creating problems for Spanish foreign policy, national security and insecurity for Spanish residents" in Equatorial Guinea. The process against Mr Moto has been presided over by an Interministerial Commission for Asylum and Refugees, which is made up of representatives of the Ministries of Foreign Affairs, Interior, Justice and Social Affairs, as well as a representative of the United Nations High Commissioner for Refugees (UNHCR) in Spain.

Mr Moto has denied any involvement in the attempted coups and plots against President Obiang. Instead, he has accused the Spanish government of connivance with the Equatorial Guinean president.

According to Secretary of State Leon, the Spanish Government believes that Mr Moto "no longer plays a relevant role in the political process in Equatorial Guinea".

6 North Africa:

As far as North Africa is concerned, Spain for political, economic and security reasons, and in the Context of the Barcelona process, strives to maintain constructive relations with all the countries in North Africa. Regular political and economic exchanges take place between Spain and countries like Morocco, Tunisia, Algeria, Mauritania and to a lesser extent with Libya. In this context Mr Bernardino Leon, the Secretary of State of Foreign Affairs, stated:

“With respect to North Africa, the Government wants to promote a comprehensive action plan that looks beyond short term alliances and a precarious balance of power. In the last two months there has been considerable diplomatic effort, including a trip by the Prime Minister to Morocco, visits by the Foreign Minister to Algeria and Tunisia and my own trips to Libya and the Western Sahara refugee camps in Tinduf. One of the new elements of our policy in North Africa is our readiness to make a positive contribution to resolving the dispute over the Western Sahara. A solution must still be found within the framework of the United Nations, but it is clear that no lasting agreement will be obtained until the two parties themselves agree. Our efforts are directed towards facilitating an agreement between the two parties.

Morocco and Algeria share one of the world's last closed borders. A solution to the Western Sahara conflict would not only do away with one of the main sources of regional tension but would also facilitate the creation of bigger markets which would attract European investment. Foreign investment is one of the best ways of modernising our neighbours' economies. It would generate employment and gradually close the income gap between the two sides of the Mediterranean, the direct cause of the uncontrolled migration flows that presently occur.

The struggle against terrorism is another important issue in our relations with our neighbours. There is a threat to innocent lives on both sides of the Strait of Gibraltar and it can only be fought successfully in a climate of full political and police cooperation between both sides of the Mediterranean.”

7 Morocco

As far as Morocco is concerned, sound political and economic relations is a top priority seeing that relations between Morocco and Spain, have been, at best, fragile in recent times, despite a strong desire on the part of Spain to further improve these relations. There are a number of issues such as illegal immigration, fishing rights, energy issues, the West Sahara issue, sovereignty issues pertaining to Ceuta and Melilla and the little Perejil Island, which have clouded relations. Particularly the issue of illegal immigration is currently a major issue due to the increasing number of people from Africa crossing into Spain via Morocco. The Spanish are of the opinion that there is a need for Morocco to better secure its borders to prevent the immigrants and the traffickers from crossing between Morocco and Spain often in flimsy and potentially lethal boats. The issue of security is also of great concern to Spain seeing that the majority of the detainees in connection with 11 March bombings in Madrid, are of Moroccan origin.

In order to address these contentious issues, Spain is very keen to improve its relations with Morocco. The following factors are relevant regarding the Spanish government's wish to expand relations with Morocco:

- Improved political and economic ties with Morocco are of significant importance to Spain., As mentioned there are number of key political issues inter alia illegal immigration which needs to be addressed with Morocco in the interest of stability and economic growth in the region.

- Spanish has made aid packages that included 350 million euros in economic aid and a 40 million euros debt swap program available to Morocco.

- Morocco, is Spain's main client on the African continent (exports to Morocco during the first six months of 2004 totalled 1.1 billion euros) and pressure is mounting from the business community (more than 800 Spanish companies have set up shop in Morocco with total investments to the tune of 450 million euros in the last 10 years). The Spanish Finance Ministry has earmarked 350 million euros to assist social development projects, private investments and infrastructure plans in Morocco.

According to reports, the Spanish aid will come in the form of credit concessions charged to Europe's structural funds and commercial loans designed by the Organisation for Economic Cooperation and Development (OECD). The proposed debt swap programme would see 40 million euros wiped off the Moroccan debt account and turned into investment in the country. It would be the fourth debt swap program between the two countries, following successful plans in 1996, 1997 and 2000 (37.56 million euros, 27.80 million euros and 45.2 million euros, respectively), all of which met with unprecedented high demand from Spanish firms. What is new about this operation is the mutual interest in earmarking part of the convertible debt for financing the security and anti-terrorist plans that Rabat is in the process of drawing up, following the Casablanca attacks earlier this year, which claimed the lives of 45 people (four of them Spaniards), and which assumes an even greater relevance after the 11 March bombings.

8. Western Sahara:

It is against this background that Spain’s "new initiative" to address the Western Sahara issue should be seen i.e that Spain is very keen to improve its relations with Morocco, for a number of compelling political, economic and security reasons. It was significant that the first.' country that Prime Minister Zapatero visited after his inauguration in 2004 was Morocco. This reflected the' importance that Spain attached to its relations with its neighbour. During that visit, Prime Minister Zapatero made the statement to the effect that Spain would endeavour "to move the West Sahara issue forward within the next six months."

Spain in consultation, with France, that has an even stronger political and economic foothold in Morocco, embarked on an initiative to find a solution for the Western Sahara question. In the course of subsequent developments, the Spanish government referred to a change of direction" in Spain's position towards the dispute mainly because the Baker Peace Plan was currently at a stale mate due to the opposition of Morocco. The Spanish added that a new plan was required in order to obtain the full support of all the relevant parties involved. Spain supported by France and by North African countries such as Tunisia started to intensify its diplomatic efforts to lobby for a negotiated solution to the dispute. Over the last few months, Spain's position, however, remains unclear, ambiguous and confusing at times. On the one hand the Spanish talk about a change of direction and allude to the possible "modification of the Baker Peace Plan" in order to move the process forward and obtain the support of all the parties involved. On the other hand Minister Moratinos has committed his government to the Baker .Peace Plan and gave the assurance that Spain and France sought a solution within the framework of the existing UNSC resolutions.

In the meantime Spain has been endeavouring to broaden its diplomatic consultations on the issue and have met with all the parties directly related to the dispute.

The latest developments included a meeting between Prime Minister Zapatero and the Secretary General of the Saharawi Polisario Front, Mr Mohammed Abdelaziz in Madrid on 26 November 2004. The two leaders agreed to maintain regular contact and a dialogue. After the meeting, the Spanish government pointed out that Mr Zapatero had informed the leader of the Polisario Front that Spain was favour of finding a solution, "within the framework of the United Nations" and felt that the mandate of MINURSO should be concluded with a referendum to determined the question of sovereignty, but would not "impose or define the content of the agreement" on the parties.

In the meantime the opposition political parties, in particular, the Popular Party (PP), and civil society in Spain, generally sympathetic to the cause of the Saharawi people, continue to bring pressure to bear on the government, not to change its position and to focus on the basic principles of existing UNSC resolutions which make provision for right to self determination of the Saharawi people.

On 5 January' 2005 Minister Moratinos flew to Algiers for discussions with President Bouteflika for his fourth visit to Algeria since becoming Foreign Minister. According to the Algerian Ambassador in Madrid, Minister Moratinos stated that there had been "misunderstandings" about Spain’s intentions and that Spain remains committed to finding a political solution within an UN framework and in accordance with the basic principles of the Baker Plan. According to the Algerian Ambassador in Madrid, President Bouteflika in a frank discussion about the West Saharan dispute, strongly restated Algeria’s position i.e that the fundamental principles of the Baker Plan cannot be changed and that the right of self determination of the Saharawi people remains critical and non-negotiable.

Although Spain's interests in its relations with Morocco are multifold and affect fundamental areas of Spanish security and economic wellbeing, most experts on this relationship doubt that the "honeymoon" between the Socialist government and Morocco can be consummated, unless reasonable progress is made in Western Sahara, to whose people many Spaniards feel historically and emotionally connected. There is strong pro-Saharan sentiment among Spaniards. There are polls that show that 70 percent of the population supports Sahrawi claims. According to another poll, conducted by the Centre for Sociological Research in 2004, King Mohammed ,VI was the international figure least loved by the Spanish people, ahead of Saddam Hussein and Ariel Sharon.

Prime Minister Zapatero was probably aware of this sentiment when, during his first visit to Morocco, on April 24, 2004, just days after taking up his post as head of government, he said he was convinced that "the rights of both sides can be reconciled, through dialogue, reaching an agreement" in the Sahara. Mr Zapatero promised that Spanish diplomats would work intensely to meet this objective and predicted a series of achievements over a six-month period.

Not six, but 20 months after uttering those words, no dialogue has taken place and no agreement has been reached, although the Spanish diplomatic corps claims to have worked as intensely as it was ordered. The only victory, not insignificant but far less important, was Mr Peter van Walsum's appointment in July 2005 as the new UN special envoy for the Western Sahara conflict.

The Spanish government, who had pushed harder than anyone in the United Nations to secure that appointment, also accepted Mr Van Walsum's arrival with the most enthusiasm. Even so, the Dutch diplomat has not managed to create a dynamic of negotiation between the parties affected by the conflict, at a standstill for the last decade due to Morocco's rejection of the plan proposed by former UN envoy James .Baker. Mr van.Walsem noted that ,all parties are sticking -to 'their 'positions and not positive for progress. Hoped for new initiative but did not specify if this will be based on the Baker Plan or on new proposal. Points of, view as to who is most responsible for the failed negotiations regarding the Sahara abound, but the goal of this mission boils down to the effects the Saharan conflict has on relations between "Spain and Morocco. For this reason, although various sources have pointed out Algeria's lack of interest in finding a short-term solution, as well as the polisario Front's dependence on Algerian interests.

Spain's position in the Saharan conflict was marked by what Prime Minister Zapatero said in Casablanca, during his first visit to a foreign country as premier (Morocco had also been, two years earlier, his first visit as general secretary of the Socialist Party) , but especially by what he did not say: the prime minister did not make a single reference to the Baker Plan, still backed by the United Nations and the position that Spain had supported up to that point. "Never has a Spanish politician of that level been so neutral with respect to the question (of the Sahara) as the Socialist leader has been," declared the Moroccan newspaper Liberation in April 2004.

Prime Minister Zapatero was clearly supporting a policy on the Sahara much more akin to the one espoused by France, and probably, sacrificed to the priority of reestablishing a new climate of neighbourly relations with Morocco after years of squabbles under Mr Jose Maria Aznar's government.

The government tried to offset that policy with a series of significant gestures to supporters of the Saharan independence movement. On November 26, 2004,Prime, Minister Zapatero received Mr Mohammed Abdelaziz, becoming the first head of government to meet with a General Secretary of the Polisario Front.Yet the meeting, which did not bring any concrete results, was almost frustrated because Mr Zapatero decided to receive Mr Abdelaziz, who is also the president of the Sahrawi Arab Democratic Republic (SADR, recognized by the Organization of African Unity and by 80 of the world's countries), at the Socialist headquarters, and only as the head of a political organization. Several polisario leaders were insulted by the fact that their leader would not be received at the Prime Minister Office in Moncloa Palace, and recommended that Mr Abdelaziz turn down the invitation. Mr Zapatero did not receive Mr Abdelaziz on his subsequent visit to Spain, eight months later.

Other unprecedented actions included the three trips the secretary of state for foreign affairs, Bernardino Leon, made to the Polisario' scamps in Tindouf starting in Spring 2004. None of these trips was fruitful.

According to sources from both sides, the Spanish envoy tried to explain to the Sahrawis that Spain was after a negotiated solution satisfactory .to both sides bud did. not manage to present a. concrete mediation proposal."

The Sahrawi leaders" asked their- interlocutor' to ,get Spain to join the defence of the 'Baker Plan as the formula backed by the United Nations, or if it was not willing to do so, to keep quiet. Spanish diplomats chalked up the liberation of 100 Saharan prisoners in June 2004 as a result of this intervention.

The Spanish effort practically ended there. During all this time, visits by Spanish ministers to Morocco have been almost constant and the Spanish government has articulated a position ever closer to that of Morocco, culminating last November in Zapatero' s invitation to the ceremonies to celebrate 50 years of Moroccan independence. Supporters of Sahrawi independence have thus started to see Spain as a lost cause. The polisarian Front representative to the UN, Mr Mohammed Bujari, said "that Spain cannot play the role we wanted it to play. Our conviction is that Spain has decided to play the Moroccan card. We've realized that we have to try to reach an understanding with France and the United Nations because we've reached the limit: Spain is not going to do anything".

Spanish Foreign Ministry officials confirmed that Morocco is planning to present a proposal in April to end the 30-year conflict. The aim is for the proposal to be made public before the United Nations Security Council reconvenes to decide its position on the conflict after Morocco rejected the Baker plan. The Baker Plan, which was approved unanimously by the Security Council in July 2003, said that Morocco would have to grant the territory a degree of autonomy ahead of a referendum on self rule that could have led to its independence. It was backed by the Polisario Front independence movement and Algeria, but Morocco rejected any proposal that could lead to it losing control of the territory. Accordingly, the proposal will grant the territory of Western Sahara autonomy within the Kingdom of Morocco. It is likely therefore that the proposal due to be presented in April will fall short of the polisario's demands, although at the very least it will represent an expression of good intentions on the part of the government in Rabat and King Mohammed VI to resolve the conflict.

The impasse at the UNSC on the issue of Western Sahara is similar to that of the Palestinian issue. In both cases there is the situation that one party reneges on already agreed upon peace plans. It is therefore preferable that any new initiative builds on the already agreed upon elements of the Baker Plan, particularly the referendum.

Meanwhile, for Spanish foreign policy, everything seems to depend on one priority: Moroccan stability. That is why Spanish diplomats are making efforts both in Rabat as well as Madrid, so that the Moroccan government makes progress in terms of democratization and human rights, apparently convinced that when the report card comes in, the Spanish government's foreign policy grade will depend, to a large extent, on how the situation evolves in Morocco.

9. Iran:

The Spanish government's position on Iran in context to the IAEA is more line with the position taken by the European Union (EU).

The Spanish government view with serious concern the Government of Iran's intention to resume suspended nuclear activities. It recalls that this and other part of Iran's nuclear programme were frozen, under IAEA supervision, following revelations of Iran's nuclear activities over a period of more than a decade. It urges Iran not to take this step which would violate both the letter and the spirit of the 8 previous resolutions. These call on Iran, inter alia, to suspend all enrichment related activities.

According to Foreign ministry officials, the Spanish government regrets that Iran has chosen to announce this unilateral move at a moment when international ,confidence in the peaceful nature of its programme is far from restored. It finds it surprising and unreasonable that Iran proposes to do this at a moment when - in response to a proposal from Britain, France and Germany with the EU were exploring with Iran the possibility of a return to negotiations. Resumption of activities and such disregard for the repeated wishes of the lARA Board of Governor can only seriously jeopardise the possibility of a return to negotiations.

According to Foreign Ministry officials, the Spanish government hope that Iran will implement the steps it needs to undertake to re-establish confidence in its peaceful use of nuclear energy. The Spanish government will wait for the report of Director General, Mr EIBaradei, to the lARA Board's regular meeting in March and thereafter to convey that report with any resolution from the Board to the UN Security Council.

10. ALLIANCE OF CIVILIZATIONS INITIATIVE (ACI):

The Secretary General of the United Nations, Mr Kofi Annan, has launched an initiative, co-sponsored by the Prime Ministers of Spain and Turkey, for an Alliance of Civilizations Initiative (ACI). The initiative responds to a broad consensus across nations, cultures and religions that all societies are interdependent, bound together in their development and security, and in their environmental, economic and financial well-being. The Alliance seeks to forge collective political will and to mobilise concerted action at the institutional and civil society levels to overcome the' prejudice, misperceptions and polarization that militate: against such, consensus ." The initiative hope to contribute to; a coalescing global movement which, reflecting the will of the vast majority of people, rejects extremism in any society.

The first meeting of the High Level Group created by United Nations Secretary General Kofi Annan to implement Spanish Prime Minister Jose Luis Rodriguez Zapatero’s proposal concerning an Alliance of Civilisations was held in Mallorca in November 2005. The Group, which has 20 members, plans to hold four meetings next year and present its report by the end of 2006.

The participants range from such renowned theologians as Archbishop Desmond Tutu, former Iranian President Mohammed Khatami, former French Foreign Minister Hubert

Vedrine, the Ibero-American Summit Secretary General, Enrique Iglesias Karen Armstrong of the United Kingdom, Arthur Schneir of the United States and Mehmet Aydin of Turkey, to administrators of cultural institutions, such as Ismali Serageldin of Egypt's Bibliotheca Alexandria and former UN Educational, Scientific and Cultural Organisation (UNESCO) Director-General Frederico Mayor.

The meeting was opened by the leaders of the two countries that are co-sponsoring the proposal, Prime .Minister Zapatero and Turkish Prime Minister Recep Tayyip Erdogan. During his speech, Prime Minister Zapatero highlighted that the importance of this meeting was to eliminate lithe gap that exists between the West and the East". He said that the initiative was "parallel" to other initiatives, such as the Euro-Mediterranean Process, which are aimed at combating international terrorism. He, however, pointed out that the objectives of the "Alliance' were much wider than this and were aimed at "promoting mutual understanding, moderation, an appreciation for diversity and an awareness of the growing and inevitable interdependence between all the peoples and nations of the world".

Prime Minister Erdogan emphasised the importance of the meeting since "any person or country could become a target of terrorism which "cannot be distinguished on the basis of ethnic, cultural or religious values. He, therefore, called for a change in terminology and said that terrorist attacks by radical muslims should no longer be called islamic terrorism but rather fundamentalist terrorism to avoid creating suspicion towards any religion in particular. The Turkish Prime Minister also announced that the last meeting of the High Level Group would be held in Turkey at the end of next year.

Both the Spanish and the Turkish Prime Ministers called on the High Level Group to prepare specific and practical" measures aimed at Governments and civil society. Prime Minister Erdogan called on the Group to not only present measures to deal with the problems linked to the proliferation of. Weapons of mass destruction but also measures to deal with the proliferation of conventional weapons since the "life of each and every person is sacred. Prime Minister Zapatero suggested that the actions proposed by the Group should take the potential of the new technologies and the media into consideration and that special attention be given to the youth and to "educating future generations. The Spanish Prime Minister also highlighted the fact that the decision by both Spain and Turkey to co-sponsor the initiative was an example of an alliance of civilisations because the two countries, in the past, had not only been enemies but champions of two different religions which were seen as incompatible. According to the Prime Minister Zapatero, the rivalry between these nations has now be transformed into a positive association. He also said that he was pleased that the Euro-Mediterranean Summit in Barcelona had expressed its formal support for the proposal of an 'Alliance of Civilisations.

The UN Secretary General has named Professor Tomas Mastnak as the Director of the Office of the Alliance of Civilizations. He will take office towards the end of this month. Shamil Idriss has also been named Deputy Director of the Office and is Officer-in-Charge. Professor Mastnak, a Slovenian national, is Director of Research at the Institute for Philosophy at the Scientific Research Centre of the Slovene Academy of Science and Art. After finishing his studies at the University of Ljubljana, he conducted his post-doctoral research at Edinburgh University in Cambridge University, and the John Hopkins University, He has been a research fellow at the European University Institute, Oxford University, American University of Cairo, Harvard University and New York University. He is the author of a wide range of books and articles in history of political thought and political theory. In the past 15 years, his main area of research has been the emergence and articulation of conflictual relations between East and West, Christendom and the Muslim world, and between Europe and the non-European world. His most recent book is Crusading Peace: Christendom, the Muslim World, Western Political Order (Berkeley and Los Angeles: University of California Press, 2002). Shamil Idriss, a United States national, was Senior Advisor for Islamic-Western Relations Programs for international conflict resolution organisation, Search for Common Ground (SFCG). He serves as the Coordinating Committee and the Secretariat of the World Economic Forum's Council of 100 Leaders, which convenes political, corporate, religious, and academic leaders from predominantly Muslim countries, the United States and western Europe to initiate projects that foster Islamic-Western understanding.

In a message delivered by. Special Adviser Iqbal Riza to the high-level meeting, Mr Annan said that the "trend of recent years have strained relations between East and West. They have notably strained perceptions between Islamic and Western' peoples'. If unaddressed, these may even threaten stability in our world". The UN Secretary General said that the High-Level Group must assess these alarming developments and must propose a collective response to defuse these tensions".

11. Immigration:

As mentioned above illegal immigration needs to be addressed and in this regard the African Group of Ambassadors in Madrid met with Mr Alvaro Iranzo, Director General for the Mediterranean, Middle East and Africa at the Spanish Foreign Ministry on 7 November 2005.

The purpose of the meeting was to obtain the Spanish government I s views of the tragic events in Ceuta and Melilla last October relating to immigration from Africa, and also raised the resumption of the EU/African dialogue started in Cairo a few years ago. In this context the Africa Group of Ambassadors received details regarding proposed diplomatic steps/initiatives by Spain inter alia the suggested Spanish/Moroccan "Conference on Immigration" proposed for March 2006.

Apart from the above mentioned conference, the developments in Ceuta and Melilla showed that there was an urgent need for a broader and ongoing dialogue between Europe and Africa in order to address the key issues such as economic development and growth.

Problems with immigration will continue unless, as part of a long term strategy, the root causes that force people to leave their countries origin must be addressed.

According to Mr Iranzo Africa was increasingly becoming a priority for the Spanish government and that there will also be an increasing focus on Sub-Sahara Africa.

Spain wanted to become a reliable partner for Africa and make an increased contribution with development cooperation, poverty eradication and development on the continent. Spain was already involved inter alia through the EU, the UN, the Partnership Against Hunger etc. in addressing the development challenges of Africa.

Mr Iranzo added that Spain had the intention of doubling its funding for development cooperation and that Sub-Sahara Africa will get an increasing share of this. In Africa, Spain would like to contribute constructively to the AU, NEPAD, the regional organisations such as SADC, both on a bilateral as well multilateral levels. It is in this context that Foreign Minister Moratinos plans to visit a number of countries in Africa in December 2005. He mentioned that apart from North Africa,. Mr Moratinos had only been to Sudan and Equatorial"' Guinea "and" that he would now like to visit other parts of- Sub-Sahara Africa. He also referred to a visit earlier this year by the Secretary of State Bernardino Leon to seven in countries in Africa. All these reflect the increasing importance that Spain attached to expanding its relations with Africa.

Mr Iranzo stated that immigration is increasingly becoming an important issue in Europe and poses great challenges for Europe. He.' added that legal immigration was important to Spain and that currently 8.5 per cent of Spain's population are immigrants mainly people who entered the country over the last ten years. Spain recognises that it needs legal immigration as was reflected by the recent process to regularise the position of many immigrants in Spain. Spain wishes to further streamline this process and has been a major recipient of immigrants, more so than many other countries in Europe.

Mr Iranzo added however, that illegal immigration was increasingly causing problems for Spain. He said that the Spanish government has been reflecting on this issue after the Ceuta and Melilla events and feels strongly that increasing dialogue and cooperation are required to address this issue. Spain, however, also needs to be sensitive to the human rights of the illegal immigrants because they were poor people who were exploited by criminal syndicates involved in arms, drugs and people trafficking. The international community should unite against their actions. Ceuta and Melilla were logical destinations, for many Africans because they are net stepped until they get there. Spain, however, like all countries have the obligation to protect its borders.

Spain will however endeavour to limit human suffering of the immigrants. Mr Iranzo. mentioned that a recent concluded internal investigation by the Spanish authorities, showed that none of the bullets fired at the Africans during their attempt to cross the barriers, were fired from Spain. He added that only one group repatriation of 73 persons was carried out by Spain in that period. He also mentioned that the EU Commission came to look at how Spain was dealing with the illegal immigration/refugee issue and that they were satisfied that Spain was fulfilling its international obligations inter alia providing feed and shelter and also eventually moving the illegal immigrants to various parts of Spain to be settled there.

Mr Iranzo stated that Spain had been intensely reflecting en the immigration issue and that a number of steps have been taken since the Ceuta and Melilla incidents. Inter alia the cooperation with Morocco en the issue has improved. Spain will however continue to give this matter priority attention and added that it was the responsibility of various stakeholders to ensure that "the matter is dealt with in a in a coordinated, proper and just manner i.e the: countries of origin, the countries of transit as well as the countries of destination. This therefore:' calls for much closer and coordinated cooperation to effectively address the issue of, illegal immigration.

Mr Iranzo stated that in the first instance Spain was obviously working very closely with the 'European Union.

Unfortunately immigration has not been a priority issue for all the European Union member states. Spain was pushing for an effective common EU policy on immigration. Apart from working through the EU, Spain was also taking action on a bilateral level with certain countries. The multilateral approach, however, was the most effective one. In this regard Mr Iranzo mentioned the following steps:

A specific "basket” was created in the Euromed context to create space for a discussion on security, flow of people, justice and home affairs issues.

he reaffirmed that the Spanish/Moroccan initiative to hold a conference on immigration which will probably take place in the first half of 2006. It is envisaged that the EU member states, countries from North Africa and West Africa will attend. He added that the immigration problems emanating from West Africa were particularly serious. Countries like South Africa for instance was not directly involved but, Spain was of the opinion that it could make a constructive contribution at such a conference.

it was further envisaged, during the latter part of 2006, with the cooperation of Finland, who will then be holding the EU Presidency, to hold a conference in Spain to talk about immigration issues in a broader context including issues such as security, home and justice affairs.

referring to the Africa/EU dialogue, Mr Iranzo stated that Spain was working with partners within the European Union in an endeavour to bring about a situation where the structured dialogue between Africa and the EU can be resumed. He referred to an informal meeting in Toulouse, France on 4 November attended by Spain, Portugal and France, during which it was decided that the Africa/EU dialogue must be resumed in the shortest possible time. Minister Moratinos was pushing within the EU, for the latter to find a flexible solution" so that Africa and the EU can deal with the real problems of Africa such as economic development etc.


In October 2005, both the European Union (EU) and the African Union (AU) expressed their support for a Spanish-Moroccan initiative in favour of organising an international conference in March this year, to discuss the causes and consequences of African emigration towards Europe. The President of .the African Union, Alpha Oumar Konare, and that.of the European Commission, Jose Manuel Durao Barroso, confirmed the support of their organisations soon after the initiative was announced by the Spanish Government.

The announcement came at a time when the EU has just approved its new strategy to deal with underdevelopment in Africa. As part of its new African strategy, which was approved last October, the EU plans to increase the amount allocated to Official Development Aid (ODA) from 0,36 percent of its GDP to 0,56 percent of its GDP by 2010, in order to reach the objective of allocating 0,7 percent of its GDP to ODA by 2015. In 2004, development aid by EU member states amounted to 35,7 billion euros.

Apart from this amount, the EU Commission gave an additional 8,6 billion euros. Under the new strategy, the amount of ODA by EU members will increase to 55, billion euros by the year 2010 and at least half of this amount will go directly to Africa. The EU and its member states presently give 60 percent of total world ODA, more than three times the amount given by the United States which gives 18 percent of world ODA.

The President of the EU Commission also announced that there was a need to deal with the structural causes of .underdevelopment which is the underlying reason for immigration flows to Europe. He also announced that the criteria that will be used for the distribution of aid and the selection of objectives had been determined jointly by the African Union and the EU Commission. The EU will give priority to the construction of roads, railways and energy transport networks in Africa. The objective is to promote the development of the various regional markets in Africa and to ensure that EU resources are well managed.

Meanwhile, the EU Commissioner for Development and Aid, Louis Michel, announced that he is about to launch the Erasmus-Nyerere Student Exchange Programme that is aimed at facilitating the plans by African students, educated in Europe, to return to their countries of origin. However, on hearing about the approval of the new strategy, AU President Konare expressed his doubts about the promised amounts and said that he would wait for "concrete evidence". The former President of Mali said that most of the poverty in Africa is found in the rural areas and, therefore, "agricultural subsidies (in the EU) are the main obstacle for development in Africa.

They weaken our economies and bring poverty to the people in our rural areas". The President of the AU was also very critical towards the application of "selective immigration" techniques in Germany and the United Kingdom. On the basis of this policy, only highly qualified workers will be allowed to enter these two European countries.

12. International Terrorism

The Spanish government has spearheaded a Europe-wide, cross-party pact against terrorism over the coming months, building on Spain's own experience in fighting Basque terrorism and Islamic extremism, in an effort to establish new international mechanisms to counter the terror threat.

Such an EU agreement, members of the governing Socialist party have indicated recently, would resemble the Anti-Terrorist Pact that already exists between Socialists and conservatives in Spain, uniting them in a joint stance against ETA. However, the March 11 attacks in Madrid highlighted the threat of Islamic extremism and a similar unification of policies is need if politicians, governments and countries are to effectively counteract it.

The Club of Madrid, with strong support from the Spanish Government, hosted an International Summit on Democracy, Terrorism and Security that took place in March 2005 in Madrid, coinciding with the first anniversary of the terrorist attacks in this city on 11 March 2004. The Club of Madrid is an independent organisation made up of 55 former democratic Heads of .State and Government and its main objective is to contribute towards the strengthening of democracy in the world. The Summit were based on the principle that democracy is the only valid mechanism as well as the most effective way to combat international terrorism.

The Summit is a non-partisan event, which aims to unit all democratic forces from across the political spectrum. Since international terrorism is a global phenomenon which requires a global response.

The Summit objective was to promote a world vision which is based on the principles and values of democracy and which can result in specific policies that can be applied to combat international terrorism. The Summit also aimed to contribute positively towards the consolidation of an international agenda, by means of the exchange of information on experiences in different parts of the world.

13. SPAIN'S DEVELOPMENT CO-OPERATION AND GLOBALLY

The results of the Spanish elections in March put an end to a legislature that was partially a lost one for foreign aid: a period marked by visible regression in aid policies to developing countries, and by friction between the administration and other social sectors. While this regression distanced Spain from international doctrine, the friction weakened the foreign aid system by generating tensions where there ought to be unity.

The new Socialist government of Prime Minister Zapatero put an end to this drift", declaring its desire to rebuild dialogue and. "bring Spain back into the international fold. The Spanish Prime Minister' s recent speech' at the UN World Hunger Summit 'represented an international assertion of the new stance adopted by the Spanish government.

The new policy as alluded to by the Prime Minister has three basic components. In the first place, reestablishment of a frank dialogue with social groups in order to rebuild consensus and restore the legitimacy of the bodies devoted to dialogue and participation.

Secondly, a firm commitment to the struggle against poverty and hunger, as part of the international effort to meet the goals of the Millennium Declaration. This Declaration, signed by 189 countries, stated a number of aims (the so-called Millennium Development Objectives), which set fixed dates for measurable achievements in the fields of hunger and poverty, promotion of education, health, gender equality and environmental sustainability on the global scale. And thirdly, as reiterated by Prime Minister Zapatero at the UN, an increase in the quantity of aid, raising this to 0.3 percent of GDP in 2005, and to around 0.5 percent in the last budget of the present legislature. This would mean moving from 1.7 billion euros in Spanish aid in 2003 to around 5 billion euros in 2009 - a growth with few international precedents.

Yet this will be unattainable without a profound change in the system of Spanish development aid. In the first place, because the rotational orientation of Spanish foreign aid has little in common with the proclaimed objectives: Spain is one of the donors that pays least attention to the poorest counties. In fact, it stands third from bottom -just above Greece and the United States - in terms of the percentage of aid it assigns to these countries.

More than half the resources of Spanish aid are devoted to middle income countries, the poorest counties receiving only 12 percent of the funds or about a third of the EU average. In principle, it might be expected that aid would play a redistributive role on the international scale, but Spanish aid gives four times as many resources to a poor citizen of a middle income country than it does to someone in the planet I s poorest countries. Prime Minister Zapatero's commitment to tackling poverty will therefore have to involve a substantial change in the assignment of aid, giving more weight to the poorest countries and to the most disadvantaged sectors. Even with such a change, middle income countries, like South Africa, will still occupy an important place in Spanish aid, largely due to the weight of Latin America in Spain's international relations.

As a result Spain will have to decide what combination of instruments and policies is to be used in cooperation with middle "income countries suffering huge inequalities countries which are most concerned with problems of governability, institutional, legitimacy and vulnerability to external shocks than by a lack of resources for development. This will require responses that occasionally go beyond the realm of foreign aid.

There needs to be change not only in the orientation of aid, but also in the instruments used to channel it. So far, Spanish foreign aid has taken the form of small projects. But, just as it is impossible to build a railway by joining together a number of stagecoaches, it is hard to imagine a 5 billion euros aid program made up of multiple small project. Spanish foreign aid has to resort to types of aid with greater range and complexity, involving greater trust in recipient's management of resources, and allowing greater coordination with other donors.

This is what is proposed by some of the new aid instruments, such as industrial-sector programs, contributions to the budget or to basket funds, and others: these formulas have already been tried by other donors, though Spain has little experience of them. To advance toward this type of foreign aid will require improved technical and aid-management capacities, entailing a reform of the system's institutional design.

The origin of the Spanish International Cooperation Agency (AECI) has not, perhaps, been best – suited to creating a technically solid institution of proven management capacities, but the changes made in the last legislature, diluting its profile as a development agency, have only made matters worse. We need to advance toward a professionalised approach to aid, free of the trammels of vested interest in the administration. Furthermore, the AECI needs to be empowered to enlist expert personnel, and to carry out more specialised and flexible management. This means a thorough revision of its legal status, hierarchy and system of management.

In short, Spain is being called upon to increase her aid resources at an unprecedented rate. To do so without adverse effects on the quality of foreign aid policy is a great challenge - a challenge which can hardly be faced without investment in institutional capacity on one hand, and in strategic intelligence on the other. These two resources are not overabundant in the Spanish aid system, but they are now more necessary than ever.