US is cautioned on recent laws affecting Cuba, Iran and Libya

THE Middle East, Russia and former Yugoslavia dominated the foreign policy conclusions of the council. It also expressed "deep concern" over the extra territorial effects of recent US legislation regarding Cuba, and pending legislation regarding Iran and Libya.

The council said this legislation would penalise European firms doing business with these states and asserted its "right and intention" to defend EU interests.

The Tanaiste said Ireland is determined to use its presidency to advance foreign policy co operation in these areas, and in relation to EU enlargement. But it would be essential to co ordinate the actions and initiatives of individual member states with those of the troika which he will chair for the next six months.

Mr Spring, referring to the Middle East, said: "I don't think any member state can say they want a clearly defined EU foreign policy and then go and work on a bilateral basis. We cannot afford the luxury of working separately if we want to build a common policy."

There has been criticism of the tendency of the larger states to act on their own behalf or in small ad hoc groups, rather than through the EU. This is one of the main points for negotiation in the Inter Governmental Conference.

The council "strongly reaffirms that peace in the Middle East is a fundamental interest of the European Union" and remains dedicated to supporting the peace process there.

Mr Spring said, "We cannot allow it to be blown off course." He hopes to meet the new Israeli Prime Minister, Mr Netanyahu.

The declaration asks all parties to the peace process to re engage themselves in it, "to respect and implement fully all the agreements already reached" and to resume negotiations as soon as possible on the basis of the Madrid and Oslo accords, including those between Syria and Israel, and Israel and the Palestinians.

It calls for the opening of negotiations between Israel and Lebanon based on its "territorial integrity, independence and sovereignty on former Yugoslavia the summit welcomed progress in implementing the Dayton accords, and supported the holding of elections in Mostar on June 30th and in Bosnia and Herzegovina on September 14th. It called for freedom of movement, and for access to the media to allow them to be free and fair.

It also advocated the return of refugees and pledged to support reconstruction, the international criminal tribunal and the multiethnic character of the region.

On Russia the council was constrained by the elections there from appearing to interfere or create nationalist tension, as the Italian prime minister, Mr Prodi, put it at his concluding press conference.

A declaration supports the reform process there, and the consolidation of democracy through the elections. It attaches "fundamental importance" to the development of a close partnership between the EU and Russia.

It underlines its interest "in the full involvement of Russia in the development of a comprehensive European security architecture in which Russia has its due place."

It encourages continuing dialogue with Russia in European security institutions, notably between Russia and Nato.

Other statements welcomed the development of EU relations with the Mediterranean region, Latin America and Asia. It remains concerned about violence in the Great Lakes region of Africa, and acknowledges the interest in a Euro African summit. Africa will be a particular focus of the Irish presidency.