Blair and Kohl: working together

Kohl Welcomes Calls for European Economic Reform

Arriving from Sweden after addressing European socialists in Malmo, Mr Blair was given a warm welcome in Bonn, by the Chancellor on his first visit to a foreign head of state since first taking office.

At their meeting, they stressed their intention to work hard towards an agreement at the forthcoming Amsterdam summit, although Britain's opt-out on border and immigration controls remains a sticking-point.

Mr Blair made it clear that while under Labour Britain was more positive towards Europe, there would be no British concessions on border controls.

"Britain is an island. We have a particular view of our borders and frontiers and that is absolutely unchangeable for us. I hope everyone in Europe understands that. I think they do. I think Chancellor Kohl does, but there is going to be some very tough negotiating on this in the next few days. All these problems are not resolved yet, but for us, legal security of our frontiers is absolutely essential," said Mr Blair.

Single currency - wait and see

Mr Blair avoided the sensitive issue of strained relations between Chancellor Kohl and the Bundesbank after it rejected attempts by the German government to revalue gold reserves to meet single currency criteria.

On the issue of the Euro-fighter project, the Prime Minister said he was satisfied that Chancellor Kohl was committed to Germany's continued involvement in the £40 billion collaborative project with Britain, Italy and Spain. The Chancellor promised that his government would be looking at funding again in the next few weeks.

BBC correspondent Caroline Wyatt reports on the PM's visit to Bonn