The European Community and its Member States reaffirm their full support for the Middle East peace initiative promoted by the United States and the USSR. They welcome the agreement in principle of all the parties to the dispute to the approach proposed by the US Secretary of State Mr. Baker. In this respect they also welcome the positive attitude of the Palestine National Council. They hope that this emerging consensus will open the way to an early resolution of the problem of an authentic Palestinian representation. They do not believe that any formula on this issue can be held to prejudice negotiations on substantive issues such as the status of Jerusalem.

The European Community and its Member States continue to attach importance to the adoption by both sides of confidence building measures designed to create the right climate for successful negotiations. They underline the importance they attach to a suspension of Israeli settlement activity in the Occupied Territories including East Jerusalem, and welcome the willingness of Arab states to freeze the trade boycott of Israel in return for this.

They reaffirm their strong disapproval of the "Zionism is racism" resolution passed by the United Nations General Assembly which they believe should be consigned to oblivion.

While reaffirming its well known positions of principle, the European Community and its Member States confirm their determination to give all possible support to efforts to convene a Middle East Peace Conference and their determination to play an active role as a full participant in such a conference alongside the co-sponsors.

They believe that an unprecedented opportunity to create peace between Israel and the Arabs now exists and they call on all parties to show the flexibility and imagination necessary to grasp this.