title: Recommendation for a COUNCIL REGULATION concerning the conclusion of a Financial Protocol between the European Economic Community and the PEOPLE'S DEMOCRATIC REPUBLIC OF ALGERIA#Recommendation for a COUNCIL REGULATION concerning the conclusion of a Financial Protocol between the European Economic Community and the REPUBLIC OF TUNISIA (submitted to the Council by the Commission)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (82) 438
Vol. 1982/0144
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                  COM(82)438 final
                                                  Brussels , 20 July 1 982
                             Recommendation for a
                               COUNCIL REGULATION
        concerning the conclusion of a Financial Protocol between the European
        Economic Community and the PEOPLE '^DEMOCRATIC REPUBLIC OF ALGERIA
                                               *
                             R ecommendation for a
                               COUNCIL REGULATION
        concerning the conclusion of a Financial Protocol between the European
        Economic Community and the REPUBLIC OF TUNISIA
                 ( submitted   to the Council by the Commission )
                                                                 I
C0MC82 ) 438 final
 ---pagebreak---                        EXPLANATORY MEMORANDUM
3y its decision of 27 July 1981 , the Council authorised the Commission to
negotiate new financial protocols with the Maghreb countries ( Algeria ,
Morocco , Tunisia ), the Mashreq countries ( Egypt , Jordan , Lebanon , Syria )
and Israel . At the same time the Council adopted directives , which
were supplemented at its meeting of 29 / 30 September 1981 . On the basis
of these directives , the Commission succeeded in concluding negotiations
with all those countries , with the exception of Algeria and Tunisia . On
23 March it put before the Council recommendations for regulations on
the conclusion of the new financial protocols on which negotiations
had been completed ( C0M(82)119 final ).
The negotiations with Algeria and Tunisia have now been concluded .       The
texts of the new financial protocols have been initalled by the heads of
the respective delegations .
It was also agreed to include certain statements in the minutes of the
negotiations . ( The text of the minutes is attached to this Communication .)
The Tunisian Delegation made a statement in which it expressed the pai–
ticular importance it attached to the granting in future of       a   prefei–
ential margin to Tunisian undertakings in connection with invitations to
tender for public works and supply contracts , as is done for ACP undei–
takings .
The Commission recommends that the Council approve the outcome of the
negotiations with Algeria and Tunisia and initiate the procedure for the
signing and conclusion of the new financial protocols .      It consequently
presents recommendations for Council regulations on the conclusion of .
these protocols ( the texts of the initialled protocols are attached to
the recommendations ).
 ---pagebreak---                                     RECOMMENDATION
                               FOR A COUNCIL REGULATION
              concerning the conclusion of a Financial Protocol
                ..between the European Econor>is Community end the
                        PEOPLE 'S DEMOCRATIC REPUBLIC OF ALGERIA
   THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
   Having regard to the Treaty establishing the European Economic Conifaunityy
   and in particular Article 238 thereof ,.
   Having regard to the Recororaendat ion from the Commission ,
   Having regard to the opinion of the European Par I i assent ,
   Whereas the Financial Protocol between the European Economic Community
   and the People 's Democratic Republic of Algeria       signed on
        , should he concluded,
   HAS ADOPTED THIS REGULATION 2
                                      Article 1
   The Financial Protocol between the European Economic Community and
    the People 's Democratic Republic of Algeria is hereby approved on behalf
   of the Community .
     The text of this Protocol is annexed to this Regulation .
                                     Article 2
     The President of the Council shall , as regards the Coramursity^ give the
     notification provided for in Article 21 <1 > of the Protocol® ( 1 )
                                     Article 3
     This Regulation shall enter into force on the day following its publication
     in the Official Journal of the European Communities .
This Regulation shall be binding in its entirety and directly applicable in all
Member States .
                                                      Done at
                                                            For the Council
                                                            The President      '
<*> The date of the entry into force of the Financial Protocol will be published
    in the Official Journal of the European Communities by the General Secretariat
    of the Council .
 ---pagebreak---         COMMISSION
           OF THE
EUROPEAN COMMUNITIES
                                PROTOCOL ON FINANCIAL AND TECHNICAL COOPERATION
                                BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE
                                     PEOPLE 'S DEMOCRATIC REPUBLIC OF ALGERIA
 Provisionol oddress : Rue de la Loi 200, B- 1040 Brus sel s « Téléphoné 3500 40-35 80 40 - Télégraphie address : • COMEUR Brus sel s • -
                                                      Telex : . COMEIJRRRU 21 877 .
 ---pagebreak---   THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
of the one part , and                                     1
  THE PRESIDENT OF THE PEOPLE 'S DEMOCRATIC REPUBLIC OF ALGERIA
of the other part ,
REAFFIRMING their resolve to implement cooperation which will contribute
to the economic and social development of Algeria     and promote the
strengthening of relations between the Community and Algeria ,
ANXIOUS to pursue to this end the financial and technical cooperation
provided for in the Cooperation Agreement ,
                                                            I
HAVE DECIDED to conclude this Protocol and to ffMs and have designated
as their Plenipotentiaries :
 ---pagebreak---                            ARTICLE 1
 Within the framework of the financial and technical cooperation provided for in the
 Cooperation Agreement concluded between the European Economic Community and the People 's
 Democratic Republic of Algeria , the Community shall participate , on the terms set out
 in this Protocol , in the financing of measures' intended to contribute to the
 economic and social development of Algeria .
                           ARTICLE 2
1 . For the purposes specified in Article 1 and for a period expiring on
31 October 1^86 , an aggregate amount of 151       million ECU may be committed
as follows :
a>     107     million ECU in the form of loans from the European Investment
    Bank , hereinafter referred to as the "Bank ", made from its own resources ;
b) -    44     million ECU from the Community 's budgetary resources , composed
    of :
        16     million ECU in the form of loans on special terms ;
    -   28     million ECU in the form of grants .
Provision may be made for contributions to risk capital formation , to be
charged against the amount shown in the first indent of b ) ; these may take
the form inter alia of subordinated loans , conditional loans or acquisitions
of holdings .
2 . The loans referred to in paragraph 1 ( a ) - with the exception of those
    intended for financing the oil sector - carry a 2% interest rate subsidy
    financed by means of the funds shown in the second indent of paragraph 1 <b >.
                                                                                I
                                            #
 ---pagebreak---                                                                              2
                             ARTICLE 3
 1 . The  total amount fixed in Article 2 shall be used for the financing or
 part - financing of :
 - capital projects ir. the fields of production and economic inf restructure ,
    aimed in particular at diversi fying th *» economic structure of Algeria
    and especially at promoting its industrialization and modernizing its
    agriculture ;
 - technical cooperation schemes that are a preliminary or a complement
    to capital projects drawn up by Algeria ;
 - technical cooperation in the field of training .
2 . The Community 's financial contributions shall be used to cover internal and external
 costs necessarily incurred in carrying out approved projects or schemes ( including
costs in respect of studies , consulting engineers and technical assistance ).
They may not be used to cover current administrative , maintenance or
operational expenditure .
                             ARTICLE 4
1 . Capital projects shall be eligible for financing either by loans
from the Bank , combined with interest rate subsidies on the terms set out in
Article 2 , or by loans on special terms , or by grants , or by a combination cf
 these three means .
2 . Technical and economic cooperation shall normally be financed by grants .
              #
 ---pagebreak---                                ARTICLE 5
 1 . The amounts to be committed each year shall be distributed as evenly
 as possible throughout the period of application of this Protocol .
                                          *
 ?. Any   funds    not committed at the <» nd of the period referred to in
 Article 2 . 1 . shall be used , until exhausted. In that case , the funds shall be
used in accordance with the same arr*noe/nent s as those laid down in this Protocol .
                               ARTICLE 6
 1 . Loans granted by the Bank from its own resources shall be made in
 accordance with the ar rangements , conditions and procedures laid down in
 its Statute . They shall , as regards their duration , be subject to terms
 established on the basis of the economic and financial characteristics of
 the projects for which these loans ar » intended , a'.so taking into account
 tne conditions obtaining on the caoital markets on which the Bank procures
 its resources . The interest rate shall be determined in accordance with the
Bank 's practice at the time of signature of each loan contract , subject to
 the in*:e-e«;t rate subsidy referred to in Article 2 < 2 ).
2 . Loonc on special terms shall be granted for 40 years with 10 years'
postponement of amortization and at an interest rate of 1 % per annum . The
terms and arrangements for confibutions to risk capital formation shall be
determined on a case - by- case basis .
3 . The loans may be granted through the intermediary of the State or
appropriate Algerian       bodies , on condition that they cnlend the amounts
to the recipients on terms decided , by agreement with the Community , on
the basis of the economic and financial characteristics of the projects
for which they are intended .
 ---pagebreak---                                ARTICLE 7
Aid contributed by the Community for the execution of certain projects may , with the
agreement of Algeria take the form of co-financing in which , in particular , credit and
development bodies and institutions of Algeria of Member States or of third States or
international finance organizations would take part .
                               ARTICLE 8
In ? following shall be eligible for financial and technical cooperation :
i ) in general :                                      '                  A              •
    - the  Algerian    State ;
b ) with the agreement of the Algerian       Government , for projects or
    measures approved by it :
    -  Algerian      official development agencies ,
    - private agencies working in      Algeria    for economic and social development ,
    - undertakings carrying on their activities in accordance with
      industrial and business management methods and set up as        legal
      persons    within the meaning of Article 12 ,
    - grouos of producers who are nationals of      Algeria    , and , excep
      tionally , where no such groups exist , the producers themselves ,
    - scholarshiD holders and trainees     sent by Algeri a^ under the training schemes
      referred to in Article 3 .
 ---pagebreak---                                 ARTICLE 9
  1 . Upon the entry into force of the Agreement the Community and
   Algeria      shall establish by mutual agreement the specific objectives
  of financial and technical cooperation , by reference to the priorities
  set by Algeria 's       development pl«»n .
  These objectives may be reviewed by mutual agreement to take account
  of changes in     Algeria 's  ' economic situation or in the objectives and
 priorities set bv its development plan .
  2 . Within the framework established pursuant to paragraph 1 , financial
 and technical cooperation shall apply to projects and schemes drawn up
 by Algeria .      or by other beneficiaries approved by that country .
                               ARTICLE 10
                                                                 \
 1 . The Algerian     State or , with the agreement of its Government , the other possibl
 beneficiaries referred to in Article 8 shall present their requests for
 financial aid to the Community .
 2 . The Community shall appraise the requests for financing in collaboration with th
 competent    Algerian authorities and the other beneficiaries , in accordance
 with the objectives referred to in Article 9 ( 1 ), and shall inform them
 of the decisions taken on such requests .
                               ARTICLE 11
i . The execution , management and maintenance of schemes that are the
subject of financing under this Protocol shall be the responsibility of
   Algeria     or the other henef iciaries referred to in Article 8 of this
Protocol .
The Community shall make sure that this financial aid is expended in
accordance with the agreed allocations and to the best economic advan
tage .
                                                                                (
2 . Certain rules for administering the financial aid granted by the Com
munity will be the subject of an exchange of letters between the Commission
and    Algeria     at the conclusion of this protocol .
 ---pagebreak---                                                                         6
                             ARTICLE 12
 All natural and leqal persons        which come within the scope of the
 Treaty establishing the EEC and all natural and legal persons of
  Algeria      may participate on equal ter«s in tendering procedures and
 other procedures for the auard of contracts likely to be financed. Such
 legal persons formed in accordance with the law of a Member State of the EEC
or of Algeria must have their registered offices , their administrative head
offices or their principal establishments in the territories in which
the Treaty establishing the Curopean Economic . Community, is applied or in
 Algeria      ; however, where only their registered offices are in those
territories or in Algeria       t the activities of such legal persons must be
ef fect'Ivcly ar>d continuously linked witfy the economy of those territories
or cv Algeri a .
                             ARTICLE 13
  To promote participation by Algerian          undertakings in the performance
  of uorks contracts , an accelerated procedure for issuing invitations to tender
   involving shorter time limits for the submission of tenders may be used where
   the works in question , because of thei ? scale , are mainly of interest to
      Algerian      undertakings .
   This accelerated procedure may be used for invitations to tender the value of
   which is estimated at less than two million ECU .
                             ARTICLE 14
  1 . Algeria      shall apply to contracts awarded for the execution of
  projects or schemes financed by the Community fiscal and customs arr ;tna<»m»«*«
  no less favourable thai those applied vis - S-vis the most favoured international
 development ornanization .
  2'. The fiscal and customs arrangements shall be established by means of an
  exchange of letters between the Parties .
                             ARTICLE 15
    Algeria     shall take the necessary measures to ensure that interest and all
 other payments due to the Community in respect of loans granted under this
 Protocol are exempted from any national or local tax o levy.
 ---pagebreak---                                                                         7.
                            ARTICLE 1A
 Where a loan is accorded to a beneficiary other than      the   Algerian
State    , the provision of a guarantee by the latter or of other adequate
 guarantees may be required by the Community as a condition of the grant of the Loan .
                            ARTICLE  17
Throughout the duration of the loans accorded pursuant to this
Protocol ,   Algeria    shall undertake to make available to debtors
enjoying such loans or to the guarantors . thereof the foreign currency
necessary for the payment of interest , commission and other charges
and the repayment of principal .
                           ARTICLE   18
The results of financial and technical cooperation       may   be examined
     within   the Cooperation Council .   The '.atter shall establish ,
where appropriate , the general guidelines of such cooperation .
                           ARTICLE   19
One year before the expiry of this Protocol , the Contracting Parties
shall examine what arrangements could be made for financial and tech
nical cooperation during a possible further period .
                                        *
           4
 ---pagebreak---                                                                           8
                            ARTICLE  20
This Protocol shall be annexed to the Cooperation Agreement concluded
between the European Economic Community and Tunisia .
                            ARTICLE 21
1 . This Protocol shall be subject to approval in accordance with the
Contracting Parties' own procedures ; the Contracting Parties shall
notify each other that the procedures necessary to this end have been
completed .
2 . This Protocol shall enter into force on . the first day of the second
month following the date on which the notifications provided for in
paragraph 1 have been given .
                            ARTICLE  22
This Protocol is drawn up in two original copies in the Oanish / Dutch , English ,
French , German , Greek , Italian and Arabic languages , each of these
texts being equally authentic .
 ---pagebreak---   ANNEX
J
 ---pagebreak---                                                                                <5
             COMMISSION
OF THE EUROPEAN COMMUNITIES
 Oiractorata-Ganaral for Davalopmant
                                Minutes of the negotiation of a protocol on financial
                                and technical cooperation between the European Economic
                                Community and the People 's Democratic Republic of Algeria
            Joint déclaration concerning Article 2 paragraph 1
            It is understood that the definition of possible forms of risk capital as
           given in article 2.1 . is not exhaustive neither does it commit Algeria nor
           the Community, to one or more of those definitions . The Community clarifies
           the expression " acquisition of holdings " as referring to temporary,
           minority holdings . •
           Joint déclaration concerning Article 2 paragraph 2
           It is understood that by the words "oil sector " shall be meant "the prospection ,
           extraction , transmission ( excluding distribution within Algeria ) and refining
           ( excluding petrochemical conversion ) of hydrocarbons ".
           Joint déclaration concerning Article 3 paragraph 1
                                                                          Λ.
           The provisions of article 3.1 . do not exclude from eligibility         for financing
          by the Community projects having as their objective the social development
           referred to in the preamble and in Article 1 .
                                                                            i
 ---pagebreak---                                                                                / fc>
                                                                           I  ( %
                                   - 2 -
Joint déclaration concerning Article 5 paraqraph 2
 It is underitood that the application of article 5.2 „ is dependent upon the
submission by the Government of Algeria of mutually acceptable projects .         1
Declaration of the Delegation of the Community concerning Article 12
The provisions of the Financial Protocol are without prejudice to the
general question of the origin of aid eligible for financing by the Bank
from its own resources and do not , in this connection , affect the exercise
by the Bank 's bodies of their powers under the Statute of the Bank .
The special loans and the grants for the financing of technical co-operation
may be used to finance aid originating outside the Community and Algeria , in the
event of Community participation in joint co-financing according to articles
7  and 10 of the Protocol .
 ---pagebreak---                                       RECOMMENDATION
                               FOR A COUNCIL REGULATION
                 concerning the conclusion of a Financial Protocol
                   between the European Economic Community and the
                                  REPUBLIC OF TUNISIA
     THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
     Having regard to the Treaty establishing the European Economic Community,
     and in particular Article 238 thereof ,
     Having regard to the Recommendation from the Commission ,
     Having regard to the opinion of the European Parliament ,
     Whereas the Financial Protocol between the European Economic Community
     and        the REPUBLIC OF TUNISIA                   , Signed on
          , should be concluded ,
     HAS ADOPTED THIS REGULATION :
                                        Article 1
     The Financial Protocol between the European Economic Community and
              the REPUBLIC OF TUNISIA                is hereby approved on behalf
     of the Community .
       Tfte text of this Protocol . is annexed to this Regulation .
                                       Article 2
       The President of the Council shall , as regards the Community, give the
       notification provided for in Article 21 CD of the Protocol . ( 1 )
                                       Article 3
       This Regulation shall enter into force on the day following its publication
       in the Official Journal of the European Communities .
This Regulation shall be binding in its entirety and directly applicable in all
Member States .
                                                        Done at
                                                              For the Council
                                                              The President
( 5 ) The date of the entry into force of the Financial Protocol will be published
       in the Official Journal of the European Communities by the General Secretariat
      of the Council .
 ---pagebreak---              COMMISSION
                  OF THE
EUROPEAN COMMUNITIES
                                     PROTOCOL ON FINANCIAL AND TECHNICAL COOPERATION
                                    BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE
                                                            REPUBLIC       OF TUNISIA
 P rovi s » on<j I oddress Rue de lo Loi 200 , B – 1 040 Brossels - Téléphoné 35 00 40-35 80 40 - Télégraphie address : « COMEUR Brussels >
                                                             Telex : . COMEURBRU 21 877 .
 ---pagebreak---   THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
of the one part , and
the PRESIDENT OF THE REPUBLIC OF TUNISIA ,
of the other part ,
REAFFIRMING their resolve to implement cooperation which will contribute
to the economic and social development of Tunisia   and promote the
strengthening of relations between the Community and Tunisi §,
ANXIOUS to pursue to this end the financial and technical cooperation
provided for i.i the  Cooperation Agreement ,
HAVE DECIDED to conclude this Protocol And to      end have designated
as their Plenipotentiaries :                           ^
 ---pagebreak---                            ARTICLE 1
 Within the framework of the financial and technical cooperation provided for in the
 Cooperation Agreement concluded between the European Economic Community and the
 Republic of Tunisia    ,       the Community shall participate / on the terms set out
 in this Protocol ^ in the financing of measures' intended to contribute to the
 economic and social development of Tunisia .
                           ARTICLE 2
1 . For the purposes specified in Article 1 and for a period expiring on
31 October 1986 / an aggregate amount of     139    million ECU may be committed
as follows :
a)     78      million ECU in the form of loans from the European Investment
    Bank , hereinafter referred to as the "Bank "/ made from its own resources ;
b) •   61      million ECU from the Community 's budgetary resources / composed
    of :
          24   million ECU in the form of loans on special terms ;
          37   million ECU in th « form of grants .
Provision may be made for contributions to risk capital formation , to be
charged against the amount shown in the first indent of b ) ; these may take
the form inter alia of subordinated loans * conditional loans or acquisitions
of holdings .
2 . The loans referred to in paragraph 1 ( a ) - with the exception of those
    intended for financing the oil sector - carry a 3% interest rate subsidy
    financed by means of the funds shown in the second indent of paragraph 1 (b ).
                                            9
 ---pagebreak---                               ARTICLE 3
 1 . The  total amount fixed in Article 4 shall be used for the financing or
part - financing of :
- capital projects in the fields of production and economic inf restructure ,
    aimed in particular at diversifying the economic structure of Tunisia
    and especially at promoting its industrialization and modernizing its
    agriculture ;
- technical cooperation schemes that are a preliminary or a complement
    to capital projects drawn up by Tunisia ;
 - technical cooperation in the field of training .
2 . The Communi ty' s financial contributions shall be used to cover internal and external
 costs necessarily incurred in carrying out approved projects or schemes ( including
costs in respect of studies , consulting engineers and technical assistance ).
They may not be used to cover current ^dmini strati ve , maintenance or
operational expenditure .                                        ^
                              ARTICLE 4
1 . Capital projects shall be eligible for financing either by loans
from the Bank , combined with interest rate subsidies on the terms set out in
Article 2 , or by loans on special terms , or by grants , or by a combination cf
 these three means .                                               1
2 . Technical and economic cooperation shall normally be financed by grants .
                                                                     /
 ---pagebreak---                                ARTICLE 5
 1 . The amounts to be committed each year shall be distributed as evenly
 as possible throughout the period of application of this Protocol .
 ?. Any    funds   not committed at the end of the period referred to in
 Article 2 . 1 . shall bp used , until exhausted . In that case , the funds shall be
 used in accordance with the samp arr«noe/nent$ as those laid down in this Protocol .
                               ARTICLE 6
 1 . Loans granted by the Bank from its own resources shall be made in
 accordance with the ar rangements , conditions and procedures laid down in
 its Statute . They shall , as regards their duration , be subject to terms
 established on the basis of the economic and financial characteristics of
 the projects for which these loans a <"" intended , also taking into account
 tne conditions obtaining on the caoital markets on which the Bank procures
 its resources . The interest rate shall be determined in accordance with the
 Bank 's practice at the time of signature of each loan contract , subject to
 the in*:e-e^t rate subsidy referred to in Article 2 ( 2 ).
 2 . Loan < on special terms shall be granted for 40 years with 10 years'
postponement of amortization and at an interest rate of 1 X per annum . The
terms and arrangements for confibutions to risk capital formation shall be
determined on a case - by- case basis .
3 . The loans may be granted through the intermediary of the State or
appropriate      Tunisian  bodies , on condition that they onlend the amounts
to the recipients on terms decided , by agreement with the Community , on
the basis of the economic and financial characteri sti cs of the projects
for which they are intended .
 ---pagebreak---                                ARTICLE 7
Aid contributed by the Community fop the execution of certain projects may, with the
agreement ofTunisia , take the form of co-financing in which , in particular , credit and
development bodies and institutions of Tunisia of Member States or of third States or
international finance organizations would take part .
                               ARTICLE 8
The following shall be eligible for financial and technical cooperation :
a ) in général :
    - the   Tunisian   State ;
b ) with the agreement of the Tunisian      Government , for projects or
    measures approved by it :
    - Tunisian       official development agencies ,
    - private agencies working in     Tunisia    for economic and social development ,
    - undertakings carrying on their activities in accordance with
      industrial and business management methods and set up as      legal
      persons    within the meaning of Article 12 ,
    - groups of producers who are nationals of      Tunisia  , and , excep
      tionally , where no such groups exist , the producers themselves ,
    - scholarshio holders and trainees sent by Tunisia under the training schemes
      referred to in Article 3 .
 ---pagebreak---                                                                              5.
                                ARTICLE 9
  1 . Upon the entry into force of the Agreement the Community and
    Tunisia    shall establish by mutual agreement the specific objectives
  of financial and technical cooperation , by reference to the priorities
  set by Tunisia 's       development plan .
  These objectives may be reviewed by mutual agreement to take account
 of changes in      Tunisia 's ' economic situation or in the objectives and
 priorities set bv its development plan .
 2 . Within the framework established pursuant to paragraph 1 , financial
 and technical cooperation shall apply to projects and schemes drawn up
 by Tunis.ia or by other beneficiaries approved by that country .
                               ARTICLE 10
 1 . The Tunisian    State or / with the agreement of its Government , the other possible
beneficiaries referred to in Article 8 shall present their requests for
 financial aid to the Community .
2 . The Corn-nudity sh^U appraise the requests for financing in collaboration with the
competent Tunisian      authorities and the other beneficiaries , in accordance
with the objectives referred to in Article 9 ( 1 >, and shall inform them
of the decisions taken on such requests .
                               ARTICLE 11
1 . The execution , management and maintenance of schemes that are the
subject of financing under this Protocol shall be the responsibility of
  Tunisia     or the other beneficiaries referred to in Article 8 of this
Protocol .
The Community shall make sure that this financial aid is expended in
accordance with the agreed allocations and to the best economic advan
tage .
2 . Certain rules for administering the financial aid granted by the Com
munity will be the subject of an exchange of letters between the Commission
and Tunisia        at the conclusion of this protocol .
                                                                       •/• • • •
 ---pagebreak---                                                                            6.
                                ARTICLE 12
 All natural and leqal persons            which come within the scope of the
 Treaty establishing the EEC and all natural And legal persons of
  Tunisia      may participate on equal terms in tendering procedures end
 other procedures for the award of contracts likely to be financed. Such
legal persons formed in accordance with the law of a Member State of the EEC
or of Tunisia must have their registered offices , their administrative head
offices or their principal establishments in the territories in which
the Treaty establishing the European Economic Community, is applied or in
  Tunisia     ; however, where only their registered offices are in those
territories or in Tunisia           / the activities of such legal persons must be
effectively aid continuously linked witf) the economy of those territories
or of Tunisia .
                                ARTICLE 13
  7o promote part i c ipat i on by Tunisian         undertakings in the performance
  ov uorUs contracts , an accelerated procedure for issuing invitations to tender
  i.-.volving shorter time limits for the submission of tenders may be used where
  the works in question , because of thei ? scale , are mainly of interest to
    Tunisian        undertakings .
  This iccelerated procedure may be used for invitations to tender the value of
   wr»ich is estimated at less than two million ECU .
                                ARTICLE U
                                                 «
 1 . Tunisia       shall apply to contracts awarded for the execution of
 projects or schemes financed by the Community fiscal and customs arrana*m#«*«
  no less favourable than those applied vis - i - vis the most favoured international
 development organization .
  2 . The content of the arrangements mentioned in the above paragraph shall be
  established by means of an exchange of letters between the Parties .
                                 ARTICLE 15
    Tunisia     shall take the necessary measures to ensure that interest and all
  other payments due to the Community in respect of loans granted under this
  Protocol art exempted from any national or local tax of levy.
 ---pagebreak---                                                                         7.
                            ARTICLE U
 Where a loan is accorded to a beneficiary other than      the Tunisian
 State   , the provision of a guarantee by the latter or of other - adequate
  guarantees may be required by the Community as a condition of the grant of the loan .
                            ARTICLE 17
 Throughout the duration of the loans accorded pursuant to this
 Protocol , Tunisia     shall undertake to make available to debtors
 enjoying such loans or to the guarantors thereof the foreign currency
 necessary for the payment of interest , commission and other charges
and the repayment of principal .
                           ARTICLE  18
The results of financial and technical cooperation       may  be examined
     within   the Cooperation Council .   Thp '.atter shall establish ,
where appropriate, the general aui<"*lines of such cooperation .
                           ARTICLE  19
One year before the expiry of this Protocol , the Contracting Parties
shall examine what arrangements could be made for financial and tech
nical cooperation during a possible further period .
                                        I
                                          i
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                                                                 V
 ---pagebreak---                                                                                η
                                                                          8.
                             ARTICLE 20
 This Protocol shall be annexed to the Cooperation Agreement concluded
 between the European Economic Community and    Algeria . .
                            ARTICLE 21
1 . This Protocol shall be subject to approval in accordance with the
Contracting Parties' own procedures ; the Contracting Parties shall
notify each other that the procedures necessary to this end have been
completed .
2 . This Protocol shall enter into force on . the first day of the second
month following the date on which the notifications provided for in
paragraph 1 have been given .
                            ARTICLE 22                          v
This Protocol is drawn up in two original copies in the Danish , Dutch , English ,
French , German , Greek , Italian and   Arabic languages , each of these
texts being equally authentic .
                                                                  !
            *
 ---pagebreak--- ANNEX ---pagebreak---             COMMISSION
OF THE EUROPEAN COMMUNITIES
 Oirtctofit**G«n«rai for 0«v#lopff»#ni
                                 Minutes of the negotiation of a protocol on financial
                                 and technical cooperation between the European Economic
                                 Community and the Republic of Tunisia .
                                                                          V.
            Joint déclaration concerning Article 2 paragraph 1
            It is understood that the definition of possible forms of risk capital as
           given in article 2.1 . is not exhaustive neither does it commit Tunisia nor
           the Community, to one or more of those definitions . The Community clarifies
           the expression " acquisition of holdings " as referring to temporary/
           minority holdings . •
           Joint déclaration concerning Article 2 paragraph 2
           It is understood that by the words "oil sector " shall be meant "the prospection
           extraction / transmission ( excluding distribution within Tunisia ) and refining
           ( excluding petrochemical conversion ) of hydrocarbons ".
           Joint déclaration concerning Article 3 paragraph 1
          The provisions of article 3.1 . do not exclude from eligibility for financing
          by the Community projects having as their objective the social development
          referred to in the preamble and in Article 1 .                     '
 ---pagebreak---                                     - 2 -
Joint déclaration concerning Article 5 paragrapn 2
 It is understood th.st the application of article 5.2 . is dependent upon the
submission by the Government of Tunisia "of mutually acceptable projects .
Declaration of the Delegation of the Community concerning Article 12
The provisions of the Financial Protocol are without prejudice to the
general question of the origin of aid eligible for financing by the Bank
from its own resources and do not , in this connection , affect the exercise
by the Bank 's bodies of their powers under the Statute of the Bank .
The special loans and the grants for the financing of technical co-operation
may be used to finance aid originating outside the Community and Tunisia , in the
event of joint co-financing and where the wisdom of using that type of co-financing
has been shown .
Statement by the Tunisian Delegation concerning Article 13
The Tunisian Delegation considers that the preferential margin - the
accelerated procedure with a ceiling of 2 million ECU - granted to Tunisian
undertakings in connection with invitations to tender does not take 'suffi
cient account of the respective levels of competitiveness of European and
Tunisian undertakings .    It therefore wishes to reaffirm the particular
importance it attaches to this matter so that in future a solution based
on non-discrimination between Tunisia and other non-member countries - and
one which is in any event compatible with the spirit and letter of the
third and fourth paragraphs of the Preamble to the EEC-Tunisia' Cooperation
Agreement - can be found to this problem .