87.The European Council stresses the European Union's desire to continue to do all in its power to support and strengthen the peace process and those striving to carry it forward.

INDIA/PAKISTAN NUCLEAR TESTS

88.The European Council expresses its deep concern over the situation in South Asia.The nuclear tests by India and Pakistan have damaged stability in the region and isolated both countries from the international community's efforts on non proliferation.

89.The European Council welcomes the Conclusions of the meeting of PS Foreign Ministers on 4 June, and of G8 Foreign Ministers in London on 12 June, as a positive contribution to the process of encouraging India and Pakistan to address constructively the issues which divide them.The European Council also welcomes the decision by a number of Foreign Ministers on 12 June to establish a Task Force to promote non-proliferation in South Asia.It reaffirms the EU's view that India and Pakistan should take early steps to reduce tension and instability in South Asia, by resuming their political dialogue with each other and with China, and seeking ways to build confidence between them.

90.The European Council calls upon India and Pakistan to adhere to international non-proliferation regimes, by signing the Comprehensive Test Ban Treaty as it stands and actively contributing to negotiations on a Fissile Material Cut-off Treaty.The European Council reiterates that the EU considers the Non-Proliferation Treaty the cornerstone of the international non-proliferation regime and calls upon India and Pakistan and any other countries, which have not done so to accede to the Treaty.The European Council notes the reaffirmation by Member States, nuclear weapons states and non-nuclear weapons states alike, of their determination to fulfil the commitments relating to nuclear disarmament under Article VI of the Non Proliferation Treaty.It took note of the recent initiative on this issue by several countries, including Ireland and Sweden.

91.The European Union will consider further measures should India and Pakistan fail to make progress on these issues.

INDONESIA/EAST TIMOR

92.The European Council discussed the situation in Indonesia.It encourages President Habibie to implement his commitment to political and economic reform, and his stated intention to hold early elections next year and to honor all foreign   

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