Schmidbauer and Velayati discuss the release of a German prisoner in Iran as a precondition for Germany's support of Iran's request for closer association with the European Community.

Kohl and Bush review the situation in the Gulf and discuss Germany's financial contribution to the costs of the war. In terms of numbers, Bush has in mind one billion dollar as a contribution to the previous costs for the "desert shield" campaign and another five billion dollars to help cover the first three months of the war.