From Matangi Tonga Magazine, Vol. 16, no. 1, June 2001.

Mr Frans Baan, the new head of the European Commission, visited Tonga for the first time in March.

Mr Baan is based in Suva, Fiji, one of two European Union missions in the Pacific, the other is in Port Moresby, Papua New Guinea. Mr Baan arrived in Fiji amidst the political crisis in that country, but he was optimistic that things would change for the better soon and he did not think that the EU would move its mission from Fiji because of the political upheaval. He said that the EU had made a substantial

investment to set up the mission there and logistically Suva was the right place to be. Mr Baan under his mandate is responsible for a number of other Pacific island states.

However if Fiji did not revert back to a democratic form of government he said that future programs will be affected.

“The European Union will fade out its development program in Fiji, absolutely. We will not touch current programs but future programs will be affected.”

He  said that the new Cotonou Agreement between EU countries and 77 ACP countries, signed in June last year had to be rectified, “and should be completed by the beginning of 2002, when funds should be available and projects implemented.

“Under the Cotonou Agreement there are three categories, Grants, Trade Relations, and Investment Facility. This facility will be available to the Private Sector, with incentives offered, such as soft loans.” Mr Baan said that an office for the region to manage this Investment Facility will be in Vanuatu.