title: RECOMMENDATION for a COUNCIL DECISION concerning the negotiation of a legal instrument permitting the European Economic Community to become a Contracting Party to a European Agreement on the Exchange of Tissue-typing Reagents (submitted to the Council by the Commission)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (75) 144
Vol. 1975/0050
 ---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(75)144 final
                                                          Brussels , 8 april 1975
                       RECOMMENDATION for a coure il DECISION
                 concerning the negotiation of a legal instrument
               permitting the European Economic Community to "become
                   a Contracting Party to a European Agreement
                     on the Exchange of Tissus-typing Reagents
                      ( submitted to the Council "by the Commission)
  CCK(75 ) 144 final
 ---pagebreak--- *
                           EXPLANATORY MEMORANDUM
       The attention of the Commission has recently been drawn to the
fact that a European Agreement on the Exchange of Tissue-typing
Reagents was open to signature to the member countries of the Council
of Europe on 1? September 197^»
       This agreement , created in a spirit of European solidarity ,
is the logical outcome of other agreements prepared under the aegis
of the Council of . Europe with . the same objectives (l ). There is
provision , inter alia , in Article 5 thereof , for each Contracting
Party to .take all necessary jneasure ^ to exempt from all import
charges the tissue-typing reagents placed at their disposal by the
other Parties . Such procedure stems from highly humanitarian motives
which are most laudable .
                                                 .. il               ;?A   :
                                                            ' V :  r
       Independently from these considerations , it should be
                                                         %*     V.            V
noted that Article 5 of this Agreement includes .customs
                                                     c ...
provisions which are the exclusive province of the Community ,
since tae purport is to renounce by conventional means the application
of the customs duties of the common customs tariff (12 % ) on products
at present falling within the heading 30.05 of this tariff .
       However , Article 113 of the EEC Treaty lays down that only
the Community is competent to conclude the part of the Agreement
which includes customs regulations .
       To this end , it is desirable that the Community should conclude
the Agreement in question    independently from the Member States , in
order to deal with Article 5 thereof .
                                                                         • • •/• • •
(l ) - European Agreement on the Exchange of Therapeutic Substances
       of Human Origin - signed in Paris in 195$
     - European Agreement on the Exchange of Reagents for Determining
       Blood Groups - signed in Strasburg in 1962 .
 ---pagebreak---                                  - 2 -
      It must , however-, be emphasised that at the present time the
European Agreement on the Exchange of Tissue-typing Reagents is only
open for the accession of the Member States of the Council of Europe .
      Thus it is neciessary for provision to be made for a legal
instrument which will also permit the Community to become a Con
tracting Party to the Agreement .
      For this purpose the Commission recommends to the Council ,
pursuant to Article 11J of the EEC Treaty , to authorise it to negotiate
a legal, instrument which, will permit the ; European Economic Community
to conclude , independently from the Member States , the European    .
Agreement on the Exchange of Tissue-typing .
      The text of Article 5 of the Agreement is shown, in annex to
this draft Council Decision .
 ---pagebreak---                    Recommendation for a Council Decision
               concerning the negotiation of a legal" instrument
               permitting the European Economic Community to be
               come a Contracting Party to a European Agreement
               on the Exchange of Tissue-typing Reagents
THE COUNCIL OF THE EUROPEAN COMMUNITES ,       ...■•■■
Having regard to the Treaty establishing the European Economic          ''
Community , and in particular Article 113 thereof ,.
Having regard to the Recommendation of the Commission ,
                                                             'T f }' ' 'I
Whereas the European Agreement on the Exchange of Tissue-typing
Reagents , prepared at the initiative of the Council of Europe , aims
at establishing mutuel assistance between member countries of that
organization with a view to the reciprocal supply of these reagents ;
Whereas one of the necessary oonditions for obtaining an effective
system of mutual assistance lies in allowing these reagents in
question to benefit from exemption from customs duties , as laid
down in Article 5 of this Agreement ;
Whereas the granting of exemption from customs duties by conventional
means must take into account requirements which are within the pro
vince of the customs union , and in particular the existance of the
common customs tariff ; whereas any derogation from the common
customs tariff comes within the exclusive competence of the Community
 ---pagebreak---                                    2 •
whereas , therefore , it proves necessary for the Community to conclude
this Agreement , independently from the Member States , in order to
deal with Article 5 thereof ,         v
HAS DECIBED ÀS FOLLOWS :
                             Sole Article
The Commission shall be authorised to conduct negotiations before
the Council of Europe , in order to have inserted in the European
Agreement on the Exchange of Tissue-typing Reagents , a legal instru
ment permitting the European Economic Community to become a Contrac
ting Party to the said Agreement . .... .
The Commission shall conduct these negotiations with the Special
Committee , for which provision is made in Article 113 , which shall ,
assist it in this task .
                                              Done at Brussels
                                              For the Council
                                          ,   The President
 ---pagebreak---                                                      ANNEX
                             " Artide 5
1 . The Contracting Parties shall take all necessary measures to
    exempt from all import duties the tissue-tying reagents placed
    at their disposal by the other Parties .
2 . They shall also take all necessary measures to provide for the
    speedy delivery of these substances , by the most direct route ,
    to the consignees referred to in Article 3 of this Agreement ."


title: RECOMMENDATION FOR A DECISION OF THE COUNCIL AND OF THE REPRESENTATIVES OF THE GOVERNMENTS OF THE MEMBER STATES MEETING IN THE COUNCIL AUTHORIZING THE COMMISSION TO OPEN NEGOTIATIONS WITH PAPUA NEW GUINEA#DRAFT INTERNAL AGREEMENT AMENDING THE INTERNAL AGREEMENT ON THE FINANCING AND ADMINISTRATION OF COMMUNITY AID SIGNED ON 11 JULY 1975 (submitted to the Council the Commission)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (76) 448
Vol. 1976/0136
 ---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 ( 76 ) 448 Final
                                               Brussels, 8th September 1976
     RECOMMENDATION FOR A DECISION OF TIE COUNCIL AND OF THE
     REPRESENTATIVES OF THE GOVERNMENTS OF THE MEMBER STATES
     MEETING IN THE COUNCIL AUTHORIZING THE COMMISSION' TO
     OPEN NEGOTIATIONS KITH PAFUA NEW GUINEA
                             DRAFT
    INTERNAL AGREEMENT AMENDING THE INTERNAL AGREEMENT ON
    THE FINANCING AND ADMINISTRATION OF COMMUNITY AID SIGNED
    ON 11 JULY 1975
                (submitted to the Council    the Commission)
 ---pagebreak---  ACCESSION Tr THE ACP -^SC CONVENTION OF LOME BY PAPUA HEW GUINEA
  (Comaisr -on Communications to the Council concerning the opening of
 negoti. tions)
 j,         Papua New Cuinea made a formal request for accession to the Lom6
 CcAventioa, under Article 90 of the Convention on the 3rd December 1975 .
 The request was formally approved by the AGP/EEC Council of Ministers at
 its first meeting in Brussels on the 14th and 15th July 1916 .
 2»         During exploratory talks with representatives of Papua New Guinea
 it "became clear that the country was ready to accept in principle all the
 obligations involved in accession to the Convention.
            The only matter which eight be raisod by Papua New Guinea in the
•course of negotiations proper concerns trade , given the de facto existence
    >
 of preferential arrangements with the fomer motropolia. Since , howevor,
 the country has stated that it intends i.i any c;.o : to a^oli:;h Vr.->no prefe
 rential arrangements eventually , their existence does not r,ec;n to bo a pro-
 bloa which cannot be resolved satisfactorily during the negotiations.
            Since there are no other special problomo 7 it would appear that the
 negotiations could take place in a relatively short tine , loading rapidly to
 the signing by the Community of an accession agrocmont with this country.
            The Community would thus be responding to the desire which has been
 expressed for accession to the Convention at the earliest possible date .
 3.         The negotiations will be conducted in close contact with the ACP
 States , which will be kept informed by exchanges of views as necessary. The
 Commission considers that , although it is not a legal requirement of the
 Convention , when the negotiations have been completed the accession agreement
  should then be the subject of consultation with the ACP Group.
 The accession agreements will subsequently be signed and the necessary ratifi
 cation procedures begun.
                                                                               •/
 ---pagebreak---                                  fi f»
4.        With a view to enabling the negotiations with this country to be
opened as soon as possible , the Commission recommends that the decision of the
Council and the Representatives of the Member States meeting in the Council
be adopted, authorizing the Commission to open negotiations with Papua New
Guinea , and the relevant directives issued.
          While the negotiations with the applicant State is being conducted ,
                              \
the Member States should agree on the provisions amending the Internal
Financial Agreement in order to enable the necessary procedures for
ratifying those provisions to be undertaken at the same time as those for
the accession agreement (Annex).
5.        The Commission considers that as soon as the accession agreements
have been signed, pending oonpletion of the ratification procedures in
th« Member States , the Community and the applicant countries, should agree ,
for the purpose of their trade , to apply autonomously the trade arrangements
provided for by the agreements , as the Community and the 46 ACP States did
fron 1 July 1975 .
          Lastly, the Commission considers that , in the same spirit , transi-
tioaal aitiurts similar to those adopted between the Community and the ACP
Statoa from 1 July 1975 a-0 regards financial and technical cooperation in
ytuHiMlar should also be applied.
 ---pagebreak---     RECOMMENDATION FOR A DECISION 0? THE COUNCIL AND OP THE
    REPRESENTATIVES OP THE GOVERNMENTS OF THE MEMBER STATES
    MEETING IN THE COUNCIL AUTHORIZING THE COMMISSION TO
    OPEN NEGOTIATIONS WITH PAPUA NEW GUINEA
   THE COUNCIL OF THE EUROPEAN COMMUNITIES AND THE REPRESENTATIVES OF THE
   GOVERNMENTS OF THE MEMBER STATES MEETING IN THE COUNCIL ,
   Having  regard to the Treaty establishing the European Economic Community *
   and in particular Artiole 238 thereof,
' Having regard to the recommendation from the Commission,
  Whereas   Papua Hew Cuinea has applied to aooede to the ACP-EEC Convention si
  in Lome on 28 February 1975 »
  Whereas the first paragraph of Artiole 90 of the Convention stipulates
  that, subject to the approval of the ACP-ETEC Council of Ministers an
  agreement between the Community and a State whose economic structu^
 and production are comparable with those of the ACP Statesnay provide for
 the acoession of that State to the Convention,
 HAVE DECIDED AS FOLLOWS :
                                   Sole Article
The Cohesion is hereV authorised to open negotiations for the oonolusion
of an agreement between the European Economic Community ai.d ?iiPua Nov Guinea
on the acoession of that country to the ACP-EEC Convention of Loui.
The Commission shall conduct these negotiations in consultation „< th th»
Representatives of the Member States and in accordant with the directives
annexed hereto.-                                                        ^ ives
 ---pagebreak---    DIRECTIVES RELATING TO THE NEGOTIATIONS WITH PAPUA NEW GUINEA
   FOR THE CONCLUSION OP AN AGREEMENT ON TIE ACCESSION OF THAT
   COUNTRY 10 THE ACP-CEE CONVENTION OP LOME
   1,          The sigreemeirt to be concluded shall provide for the accession
   of Papua New Guinea to the ACP-EEC Convention of Lome .
   2.          The agreement may stipulate the date on which certain of its
   obligr/t:' one , in particular concerning trade , would 13000186 applicable
   to Papua New Guinea.                     1
. '3 .         (ECSC products)
 ---pagebreak---                            Β Κ Λ Ρ Τ
Internal Agreement amending the Internal Agreement on the iinancing
and administration of Community aid signed on 11 July 1975
THE REPRESENTATIVES OP THE GOVERNMENTS OP THE MEMBER STATES OP THE EURO
PEAN ECONOMIC COMMUNITY MEETING IN TOE COUNCIL , •
Having regard to the Treaty establishing the European Economic Community,
hereinafter referred to as tho "Treaty",
After consulting the Commission ,
Whereas the Agreements between the European Economic Community and respect–
 ingly          signed on           , hereinafter referred to as the
 "Accession Agreement^ provide for the accession of
ttf'tho ACP-EEC Convention signed in Lome on 28 February 1975 ?
Whereas pursuant to Article 90 of "th® Convention the accession of a State
must not adversely affect the advantages accruing to the AC? States signa
tory to the : Convention , inter alia from the provisions on financial and
 technioal cooperation and the stabilization of export earnings ;
Whereas the Member States have now decided to increase by              million
\mits of account the omounts^made available to the European Development
 Fund ( 1975 );
 Whereas the Internal Agreement on the financing and administration of
                        I                                                      ,
 Community aid signed on 11 July 1975 should therefore be amended ,
                                                                    .*
 HAVE AGREED AS FOLLOWS :
                                                                • • • /• « «
 ---pagebreak---   Article 1 ( 2 ) and ( 3 ) of the Internal Agreement on the financing and
   administration of Conununity 0 id is hereby emended as follows :
  "The Fond shall consist of               million vnits of account to ba financed
  "by the I-'cmbor States as follows :
   " lîelgium                 million u.a.
  " Deraark                   million u . a .
  "Germany                    million u.a.
  " Franco            ..... million u.a .
  " Ireland                   million u.a.
  " Italy             ..... million u.a .
                    *                         • *
  " Luxembourg        ..... million u.a.
  " Netherlands       ..... million u.a.                                     '■
  " United Kingdom ..... million u.a.
' " The amount stated in paragraph 2 shall be allocated as follows :
  " a) .... million u.a. for tha ACP States , comprising :
  "       .... million u.a. in the form of grants
  "       .... million u.a. in the form of special loans
  "       .... million u.a. in ths form of risk capital
  "       .... million v.. a . in the form of transfers pursuant to Title II of
               the Convention .
  " b)    .... million u.a. for the countries and territories and the French
          overseas departments , comprising :
                                                                                »
          .... million u.a . in the form of grants
   '      .... million u.a. in the form of special loans
   '      .... million uia. in the form of risk capital
   '      .... million u.a".' as a reserve .
   1 c ) .... million u.a. in the form of transfers for the countries and
  "       territories , pursuant to those provisions of the decision which
 concern the system for stabilizing export earnings .
 p. m . EID loans .
 ---pagebreak--- This Agreement shall be approved "by each »Iesoer State in accordance Kith
its own constitutional, requirements .  "The Government or each Member State
shall notify the Secretariat of the Council of the European Corsscunities -
when the procedures required for its entry into force have been completed.
This Agreement shall enter into force , provided that the procedures refer
red to in the preceding paragraph have been coapleted , at the saae tise
as the Accession Agreeaents .
                             Article 3
This Agreement , drawn up in a single original in the Danish , Dutch",
English , French , German and Italian languages , each of these tests being
equally authentic , shall be deposited in the archives of the Secretariat
of J ths Council of the European Coraunities , which shall transmit a certi–
  t
fied copy to each of the Government s 01 the Signatory States .
 ---pagebreak---                                                                                ANNEX    1
                                                   DOCUMENT
                           concerning directives for negotiations with
                                                 PAPUA NEW GUINEA
                                                          TITLE I
                                               TRADE COOPERATION
                                 Upon the accession of Papua Now Guinea to the ACP/EEC Convention
                     of Lome |       the trade cooperation provisions thereof shall apply to thea
                     in the same manner as to the ACP States*                                                       *
                      »
                                                           TITLE II
                                            COMMODITY EXPORT EARNINGS
                                 Upon accession to the ACP/EEC Convention of Loiae , Papua New
                     Guinea shall he entitled to the benefit of the provisions of Title                                          II
                     thereof in the same manner as the ACP States .
                                                           TITLE IV
                                            FINANCIAL AND TECHNICAL COOPERATION
                                 Upon accession to the LOQ<§ Convention , Papua New Guinea shall he
                     entitled to the benefit of the provisions of Title IV thereof in the
                     same manner as the ACP States .
                                                                                ./•
Provi«lon*l addrtit: Rue dt lu toi 200, 8-1049 Bru»w!» - Telophon# 736 00 40 / 73080 40 - Ytlegraphic addrau : "COMEUR Brunols" -
                                                     ** - 1  . i««ti Att rr\>ir:l i i% "
 ---pagebreak---                                   2 -                           ANNEX 1
          To that end the EDP shall "be increased "by ...... . million EUA , "by-
 raising of the Member States' contributions provided for in Article 1
 ( 2 ) of the Internal Financial Agreement of 1975 in line with the ad hoc
"breakdown adopted in 1975 for the determination of the Member States'
 contributions to the 1975 Fund.
          Provision shall be made for the amounts in Article 1 (3 ) ( a) of the
Internal Financial Agreement to be adjusted proportionately to the
 increase in the 1975 Fund.
                                OTÏIER PROVISIONS
          Upon acoession to the Lome Convention the following provisions
 and related texts thereof shall apply to Papua New Cuinea :
 TITLE III       :  industrial cooperation
TITLE V '        :  provisions on establishment , services , payments and
           .        capital raoveraontB
TITLE VI         :  the Institutions
 TITLE VII       I general and final provisions , save for Article 87 , the
                    agreement to enter into foroe on the first day of the
                    second month from the date on which the instruments of
                    ratification of the Member States and of Papua New Guinea
                    are lodged and :
                    – the act of conclusion of the agreement by the Community ,
                    - the protocols annexed to the Convention ,
              i     -  the declarations annexed to the Final Act .
             . PROVISIONS FOR IMPLEMENTATION OF THE LOME CONVENTION
          Upon accession to the Lomo Convention , Papua New Guinea shill bring
 into force the decisions and other implementing provisions adopted by the
 Institutions of the Convention, and the Community shall make the Regula
 tions adopted for the benefit of the ACP States applicable to Papua New
 Guinea.
 ---pagebreak---                                                              AÏTÎÏEX 1
                              -  3  -
                  TRANSITIONAL PROVISIONS
        In accordance with -the communication addressed, by the Commission
to the Council concerning the opening of negotiations with Papua New
Guinea , it would "be well that the Community and the applicant States
should exchange letters undertaking each for its part to apply uni
laterally the trade arrangements in the ACP/EEC Convention of Lom6.
 ---pagebreak---                                                                                ANNEX 2
                            Points arising with regard to accession "by Papua New Guinea
                                                      to the Lom<§ Convention
                 1.             It emerged from the exploratory talks with representatives of
                 Papua New Guinea that the country was prepared to accept in principle
                 all the obligations entailed lay accession to the Convention,
                 2.             Titre I of the Convention ( trade cooperation)
                                Trade arrangements               –    Position or desiderata of the acceding
                                counxry
               *
            V
                                Unconditional implementation of Art . ^ of the Convention as
                 Papua New Guinea does not grant preferential treatment to any country.
                 3.             Title II of the Convention ( Stabex)
                 3.1 .          Position of Papua New Guinea
                                The following produots falling under the Stabex Regime are regular
                 exports from Papua New Guinea :
                 –    cocoa beans
                 -    copra
                 -    timber
                 -    coffee
             . -      palm kernels
                 -    palm oil
                 –    tea
                                Desiderata of Papua New Guinea with regard to the operation of
                 the stabilization scheme can be stated briefly as being inclusion among
                 the least developedt landlocked or island ACP countries referred to in
                 Article 24 of the Convention ( application of 2.5 $ dependence and fluctuation
                 thresholds as provided for in Article 17 ( 2))j in view of the country 's
                 level of development and its particular problems in consequence of its
rroviiional oddross : Ru« do lo Coi 200, B-1049 Brustoli - Tolophono 735 00 40 / 73580 40 - Tologrophlc oddresi : "COMGUR Oru»*®»»" -
                                                       TOIOMÍ " 21 877 COMEU B
 ---pagebreak---  island character and itB poor internal transport infrastructure .
 3.2 .      Position of the Conninsion
            Information, to hand indicate a tnat the products in respect of
 which Papua New Guinea might ho eligible for Stabex intervention are :
.-   cocoa beans
 –   copra
 -   coffee                                           t •
 -   timber .
            The country also exports tea s pala kernels , palm oil , coconuts and
 peanuts , but in the recent past none of these have accounted for 2.5 $ or
 more of total export earnings .
            In view of insular character of the count ry, tho 2.5 $ dependence
 and fluctuation thresholds     would apply   automatically to Papua New Guinea.
 4.         Title IV of tho Convention ( financial and technical cooperation)
            As concerns finanoial and technical cooperation it snust bo borne
 in mind that Papua New Guinea must not be treated differently from the
 other ACP countries as to form and consistency of aid.
            With regards to the eventual inclusion of Papua New Cuir.oa a.~ong
 the least developed ACP States referred to in Article 48 the C emission
 considers that , though favourable arguments could bo put forward in ia
 favour, this is not justified , in view of the income por capita and tho
 potential resources of this country.
 5.         Title III
            Title V
                           })
                                   No particular problems
            Title VI       )
            Title VII      )
 ---pagebreak---                                                                      ANNEX 3
                              Papua New Guinea
T.          INTRODUCTION
            Papua New Guinea comprises the eastern half of the island, of hew
Guinea, the Bismarck Archipelago (New Britain and New Ireland being the largest
islands), two islands of the Salomon Group (Buka and Bougainville ) and the
Trobriand , Woodlark and Louiside islands .
            It has a land area of 178.000 sq. miles (460,842 sq. km) and a population
of 2,75 million (June 1975 est ).       As in 1971 Papua New Guinea had an indigenous
population of 2,4 ms the average increase has "been of the order of 2,7 $ per annua.
The population is durded into 300 ethnic groups speaking 700 languages.
            The non-indigenous population , mostly Australian expatriates which had
totalled 55 . OOO at end of July 1971 , decreased to about 39.000 at end June 1975»
            Urban population increased from 232.000 in 1971 "to 333.000 in 1975 1 a rise
of 44 io. This increase has "been partly caused "by the widening differential
between minimus wages on the urban and rural areas.
            It is estimated that the total work force in the monetary sector, inclu
ding expatriates fell slightly from 338.000 in 1971 "to 33I.OOO in 1974 •
            Until 1971 the labour surplus resulting from urbanisation was absorbed
 into the work force { since their rapid employment growth haa creased, due partly
to the withdrawal of Australian Capital which accompanied the Australian migration.
           The economy which had developed as a result of foreign investment (mainly
Australian) in agrioulture } mining .and to a much lesser extent industry , has relied
 on the provision of skills from outside . At the higher levels of skills , the com
 position of the work force is still heavily biased towards expatriates , with
Papua New-Guineans generally occupying the semi skilled and unskilled positions .
             However , expanding school and training facilities are supplying more
Papua New Guineans qualified for higher level jobs and also Britons , New Zealanders
 Filippinos are replacing Australian expatriates in some of the professional po
 sitions .
 ---pagebreak---                                        -  2  -                         ANNEX 3
             As the number of school leavers "begins "to rise and the differential
  "between urban and rural wages widen the problem of unemployment ia likely
   to become core serious.
             Migration to the 'towns is imposing heavy strains on existing urban
   facilities , especially housing , and the concentration of migrants in ethnic
   settlements within the towns has accentuate . the problem of law and order.
  There has been a considerable inorease in crime and drunkenness which has
   severely strained the resources of the authorities.     Expenditures on the
   polioe force has been increased by almost 50 i« ia each of the past two years .
  II .       ECONOMIC STRUCTURE
             The major characteristics are the dominant role played by Bougainville? s
   exports of copper in the "balance of payments and the large share taken by
  Australian aid in financing public sector expenditures sales of copper abroad
. acoount for about 60 $ of total merchandise exports , while iiaports are relatively
   small , consisting mainly of replacement machines , petroleum and vehicles .    The
  mine gives employment to 3.250 indigenous workers , but its direct income and
   employment effects on other sectors are marginal ; its major contribution consisting
   in the payment of company taxe , royalties and dividends to the central government ,
   since a substantial part of the profit earned is repatriated abroad.
             The copper deposits on Bougainville Island are minod by the Bougainville
  Copper LTD (BCL ) ; 53 »6 $ of which is owned by Conzinc Rio Tinto of Australia ,
  with the Papua New Guinea Government taking a 20 $ share of the equity. The
  remainder of the equity is held by individuals and corporations , both in Papua
  New Guinea and overseas .
  Commercial production of copper commenced on 1st April 1972 .       The mine now pro
  duces about 170.000 MT of copperraetal equivalent annually.       The entire production
  is exported in the form of concentrates as there are no smelting facilities in
  Papua New Guinea. The value of copper exports in 1973/74 amounted to K 316 a ;
  69 % of total merchandise exports . However prices for copper wirebar which had
  risen to a peak of K 2,15 per kg in April 1974 » declined to K 0,88 in June 1974 .
  Overall the value of copper exports declined by 25        - and the contribution of the
  Bougainville sector to GDP was reduced to about 20 $ as against more than 30 <fa
  in 1973/74 * The copper is marketed under long-term sales contracts with five
  countries 1 Japan , West Germany , Spain , Mexico and Yugoslavia ( the Yugoslav and
 Mexican contracts are due to expire shortly).
 ---pagebreak---                                        -  3  -                        ANÏÏEX 3
            Exports , mainly plantation crops , copra, cocoa and. coffee were gener-Ily
  successful in 1974/75 "but "this was not sufficient to offset either the decline
  in copper exports or the increase in imports.                                      -?;s
  Copra '
  Papua New Guina is the second largest exporter of copra in the world, though it 5.8
  only the sixth largest producer in Asia.                                              '
  All coconut products are exported as copra , except 25 . OCX) tons of coconut oil
  and 15.000 tons of coconut meal , that are exported from Rabaul . Record prices for
  copra during the first half of 1974 led to a substantial accumulation of fund ,
  lout with the decline of world prices , the Government stepped in with a K JO per
  ton subvention, and in March 1975 wawed the collection of export tax on copra
  and cooonut products*.
  Coffee    . ,
  World prices fell less sharply in 1974/75 than those of other primary commodities ,
  and Papua New Guinea exports rose by 13 $ in volume and 16 % in value. Papua
  New Guinea subscribes to the International Coffee Agreement . Price expectations
  are favourable for the next two years and export earnings are expected to increase
  Cocoa
  Output rose sharply in 1974/75 1 despite a drop in prices in the middle of 1975
  and the value of cocoa exports reached K 40.3 m, 72 $ above 1973/74 levels,
  A Coooa Industry Board was established in 1975 for "the purpose of setting up
  a stabilisation fund.
  Rubber
  The industry remained depressed throughout 1974/75 ant*. exports in that year fell
  short of previous year 's total by 28 $>,
  Timber
  Exports also declined, reflecting lower demand abroad , especially in Japan.
  Manufacturin/?
  This sector is small in Papua New Guinea consisting mainly of enterprises produ-
' cing beer, cigarettes , carbonated bovorages and rubber shoes. Output of those
  items have increased reoontly though manufacturing firms suffer from the size of t
  local market , which io effectively reBtrioted by transport difficulties to the
  particular enolave in whioh the enterprise is located. Furthermore it has
  provod diffioult to train and maintain an indigonoua labour force . These diffi
  culties combined with the sharp increases in wages and material costs as well as
  tho unoortainty concerning government pln.no regarding investment in industrial
 ---pagebreak---                                     -  4  -                          ANNEX 3
 undertakings have inhibited new investment .
 Trade Agreement b
 Papua New Guinea and Australia signed a Meaoradum of Understanding on Trade and
 Commercial Arrangements in December 1973 to preserve the existing special and
 general tariff treatment and other existing arrangements during the self-
 government period. This agreement has recently "been extended pending the
 conclusion of a long term agreement .
 When the U.K. joined the EEC , it was agreed that tariff preference to which
 Papua New Guinea was eligible would be maintained until 1977 *
 Conclusions
 Papua New Guinea has a considerable potential for economic growth , especially
 in agriculture where only 2 $ of the land area in under cultivation. The soil is
 fertile , rainfall ample and most tropical products can be grown readily.
 If more land is to be brought into cultivation , changes will have to be made in
     .1
 the' system of landtenure. Distribution of food within the country is a major
 problem ; the main producing areas in the Highlands having no outlet to Papua
 and Port Moresby. The economy cannot achieve its potential until interval
 communications are greatly improved and extended.
PNGfe mineral resources have not yet been fully explored , but it is clear that
 they are extensive .  There are extensive timber resources both on the mainland and
 in the islands. Exploration of mineral wealth began only reoently and in addi
 tion to the discovery of large copper deposits in Bougainville , important deposits
 have been discovered in the western part of the mainland , where 3 major ventures
 are being considered. Oil and gas exploration is also under way both onshore and
 offshore , though no commercially viable fields have yet been found. Several hydro
 electric projeots have been undertaken on the numerous large rivers of the main
 land , which when completed would be more than sufficient to meet energy require
 ments for the foreseeable future . The exploitation of these resources will ,
 however , require large amounts of capital and a great deal of technical expertise .
 Hitherto , Papua New Guinea has relied on Australian aid and investment , Australian
 personnel and technical expertise. The economy made up of a series of enclaves
 has developed a cost structure and consumption patterns similar to those of
 Australia - characterised by & high propensity to import , vulnerability to
 inflation abroad and concentration of investment in the extractive industries.
 ---pagebreak---                                    -   5  -
Kanagement and. development of such an economy , difficult in any circumstances ,
is made sore difficult after independence "because popular aspirations have "been
raised , while domestic administrative arrangements are still in a state of
transition and the international economic environment has "become less favourable .
The fall in cocsaodity prices , especially copper has entailed a substantial loss
of foreign exchange receipts.    The "budget out-turn will depend for some years
to come on the flow of Australian aid and medium-term arrangements for Australia,
aid are "being discussed between the two Governments,    If the development poten
tial of the country is to be fulfilled , the main objective of the government
should be to balance its budget , especially if world recession continues by
implementing policies for economic diversification! import substitution and
self-help.
 ---pagebreak---                                              Papua Nov; Guinea,                             ANNEX 3
                                         « 4 Baoio Data
     Ar .    Siul Population               • •                             -
     Area .             .                                                178.000 sq.Mlles (460,842
     Populatic n ( oni June 1975 )                                        2,75 Billion
     Annual rst.s of population increase                                  2,7 $
    Populate i density                                                   15/sq.nη
   Monetary . " " tor work force ( 1974 )                                331,529   *
           * including expatriates )
   Monet re , sc.; tor work force as $ of
                     i j-tion                                                  7°
                    ?          Moresby (the Capital >      pop. ( 1971 )           76.507
                          Lae (New Guinea)                  »»        11           3 g ^qô
                          Rabaul (New Britain)               »        ••           2ô'518
                         Goroka (New Guinea)                «         n            12*066
                         Arawa & Kieta (Bougainville ) "              "            14 S431
  • CnrranfV       v?
   Pììu ovm currency introduced on 19 Aprii 1975
          tao «Cisto, ; 1 Australian dollar
                toua i 1 Australian cent
   i!,xou:ur- VR\* t 1 K : US f! I.25 (Jan. 76 )
                              1 K ; SDR 1.12 ( 1974/75 )
  ££2£iL.4:- 1 "SO t ic Product (million Kinas )
 Gdp y w r                         +                            ^ ^ ^                           1973
 GPP ~ Market CoiViponent
 liUr     – l'^rke;-t   fin!,»Ana «+
                                                    463 .! 495-0 621.0 84I.8
                                                     •   -
            Non^rket Component                      133.6      l50. 5        l6c 2    U2 Q
 cw - «,„««* market prices                          621.7 645.5 786 .2 1003.8                  996.8
 Cross H-~' tions.l Product
 GWP por o-j.pi- ta ( 1973 )                     SDR 290                           4l0 us 4          1
 produot, if raeasurediinhLmaUoftprLor^lWielthai
exceed A # '(Q-&Q per oapita8
                                                                            eubsiGtGnce sector, when
                                                                 elsewhere in S.E. Asia may not
                               Bebt (raillions K )
Total dobt                                          ûoo            ,          r
«*u».v
external deM
                                                    9 *9 136,1„ 159* 7 21i
                                                    c, „                             ...
                                                                                '6     "5-8
                                                    5ό.3       96.7       127.7      165.ό    211.4 ]
 ---pagebreak---                                     -   2                         AfJNTCX 5
  Debt service ?«v/r..ent3
  Interest and Repayments ( k )          8.4      8.3'  '   J-3.4    11.4       r"\ /»
                                                                                c. J
 Interest and amortisation as 4,
        of Revenues                     11.3      9.8       14.4      8.3       11 . .
 Central Government Finance (mil. K )
                                       1221       1972     M         1974   *   10'
 Revenue
                                         74.2      85.1      93.3    136.7      17' -
 Fo reagii Grani s                     101.8 •    108.2     121.8    152.3      IV
 Total revonua
                                       176.0      193.3    215.1    289.0      31 ;
 Total Expenditura                     204.7     233.8     250.4    307.5      37< !
 Overall deficit (-)                  - 28.7    - 40.5    - 35.3  - I8.5      - 56,8
Balance of payments (mii. K)
Exports
                                        86.4     109.5     267.9   561.1       4(>C , •
Iaports
                                      328.3      323.2     243.7   274.1       4 Go .
Tri.de 'balance
                                      241.9    - 213.7      24.2   286.9
     r'                                                                          54.3


               EUROPEAN COMMISSION
            Brussels, 18.5.2016
            COM(2016) 340 final
            Recommendation for a
            COUNCIL RECOMMENDATION
            on the 2016 national reform programme of Austriaand delivering a Council opinion on the 2016 stability programme of Austria

               Recommendation for a

               COUNCIL RECOMMENDATION

               on the 2016 national reform programme of Austria

                  and delivering a Council opinion on the 2016 stability programme of Austria

               THE COUNCIL OF THE EUROPEAN UNION,

               Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 121(2) and 148(4) thereof,

               Having regard to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies
                  1
               , and in particular Article 5(2) thereof,

               Having regard to the recommendation of the European Commission
                  2
               ,

               Having regard to the resolutions of the European Parliament
                  3
               ,

               Having regard to the conclusions of the European Council,

               Having regard to the opinion of the Employment Committee,

               Having regard to the opinion of the Economic and Financial Committee,

               Having regard to the opinion of the Social Protection Committee,

               Having regard to the opinion of the Economic Policy Committee,

               Whereas:

               (1)On 26 November 2015, the Commission adopted the Annual Growth Survey
                  4
               , marking the start of the 2016 European Semester of economic policy coordination. The priorities of the Annual Growth Survey were endorsed by the European Council on 17-18 March 2016. On 26 November 2015, on the basis of Regulation (EU) No 1176/2011, the Commission adopted the Alert Mechanism Report
                  5
               , in which it identified Austria as one of the Member States for which an in-depth review would be carried out. On the same day, the Commission also adopted a recommendation for a Council recommendation on the economic policy of the euro area
                  6
               . This recommendation was endorsed by the European Council on 18-19 February 2016 and adopted by the Council on 8 March 2016. As a country whose currency is the euro and in view of the close interlinkages between the economies of the economic and monetary union, Austria should ensure the full and timely implementation of the recommendation.

               (2)The 2016 country report for Austria
                  7
                was published on 26 February 2016. It assessed Austria’s progress in addressing the country-specific recommendations adopted by the Council on 14 July 2015 and Austria's progress towards its national Europe 2020 targets. It also included the in-depth review under Article 5 of Regulation (EU) No 1176/2011. On 8 March 2016, the Commission presented the results of the in-depth review.
                  8
                The Commission’s analysis leads it to conclude that Austria is not experiencing macroeconomic imbalances.

               (3)On 26 April 2016, Austria submitted its 2016 national reform programme and on 27 April 2016 it submitted its 2016 stability programme. To take account of their interlinkages, the two programmes have been assessed at the same time.

               (4)Relevant country-specific recommendations have been addressed in the programming of the European Structural and Investment Funds for the 2014-2020 period. As foreseen in Article 23 of Regulation (EU) No 1303/2013, where it is necessary to support the implementation of relevant Council recommendations, the Commission may request a Member State to review and propose amendments to its Partnership Agreement and relevant programmes. The Commission has provided further details on how it would make use of this provision in guidelines on the application of the measures linking effectiveness of the European Structural and Investment Funds to sound economic governance
                  9
               .

               (5)The stability programme indicates that the budgetary impact of the exceptional inflow of refugees is significant and provides adequate evidence of the scope and nature of these additional budgetary costs. According to the Commission, the eligible additional expenditure amounted to 0.09% of GDP in 2015 and is currently estimated at 0.26% of GDP in 2016. These amounts represent an upward revision with respect to the estimates provided by the 2016 draft budgetary plan, which expected additional expenditure at around 0.08 % of GDP and 0.16 % of GDP in 2015 and 2016 respectively. The provisions defined in Article 5(1) and Article 6(3) of Regulation (EC) No 1466/97 allow catering for this additional expenditure, in that the inflow of refugees is an exceptional event, its impact on Austria`s public finances is significant and sustainability would not be compromised by allowing for a deviation from the adjustment path towards the medium-term budgetary objective. In 2015, as Austria was at its medium-term budgetary objective, it did not make use of the possible temporary deviation. However, in order to ensure that Austria is allowed the same temporary deviation as countries not yet at their medium-term budgetary objective, Austria will be allowed to deviate from its medium-term budgetary objective in 2016 and 2017 by the amount considered eligible for 2015. Regarding possible additional deviation in 2016, a final assessment, including on the eligible amounts, will be made in spring 2017 on the basis of observed data as provided by the Austrian authorities.

               (6)Austria is currently in the preventive arm of the Stability and Growth Pact and subject to the transitional debt rule. In its 2016 stability programme, the government expects that the headline deficit will deteriorate to 1.6 % of GDP in 2016 and then gradually improve to 0.4 % of GDP in 2020. The medium-term budgetary objective — a structural deficit of 0.45 % of GDP until 2016 and revised to become a structural deficit of 0.5% of GDP as from 2017 — is foreseen to be met from 2018 onwards. However, based on the recalculated structural balance , the medium-term budgetary objective would only be met as from 2019. According to the stability programme, the government debt-to-GDP ratio is expected to have peaked at 86.2 % in 2015 and to gradually decline to 76.6 % in 2020. The macroeconomic scenario underpinning these budgetary projections is plausible. At the same time, the measures needed to support the planned deficit targets from 2017 onwards have not been sufficiently specified. Based on the Commission 2016 spring forecast, there is a risk of some deviation in 2016. However, if the additional impact of the exceptional inflow of refugees currently projected for 2016 is also excluded from the assessment, Austria would be expected to comply with the provisions of the Stability and Growth Pact in 2016. Under unchanged policies, there is a risk of a significant deviation from the recommended adjustment in 2017. However, the projected deviation in 2017 would no longer be significant after considering the further allowance linked to the budgetary impact of the exceptional inflow of refugees possibly granted for 2016. Austria is forecast to comply with the transitional debt rule in 2016 and, following the end of the transition period, the debt reduction benchmark in 2017. Based on its assessment of the stability programme and taking into account the Commission 2016 spring forecast, the Council is of the opinion that there is a risk that Austria will not comply with the provisions of the Stability and Growth Pact. Therefore further measures will be needed to ensure compliance in 2016 and 2017.

               (7)The budgetary effect of the recent tax reform still represents an element of uncertainty. When taking measures to ensure fiscal sustainability, account should be taken of the fact that, despite recent reforms, the tax burden on labour remains high and Austria has a high tax wedge in comparison with other European countries. Meanwhile, more growth-friendly taxation sources which allow the reduction of the tax burden on labour are under-utilised. Taking steps to reduce the tax burden on labour by shifting the tax burden to other sources less detrimental to growth would help to address this problem.

               (8)In 2015 the employment rate of people aged between 55 and 64 was 46.3 % (EU-average: 53.3 %) and ranked 19th in comparison with other Member States. Additional measures to increase the effective retirement age have been in force since 2014 and have had some effect. It remains to be seen whether these measures will reverse a trend whereby the effective retirement age in Austria lags behind the average in the EU in the medium term. In addition, the duration of retirement is increasing, due to higher life expectancy. The statutory retirement age for women will be increased and aligned only gradually with that of men, starting in 2024 and ending in 2033. In Austria, the statutory retirement age is not linked to increasing life expectancy. The Commission estimates that, in 2040, pension expenditure will increase by 0.8 % of GDP compared with 2013. In the long run (2060), pension expenditure is expected to increase by 0.5 % of GDP. Similarly, healthcare expenditure is expected to increase between 2013 and 2040 by 1 % of GDP, and by 1.3 % of GDP in 2060. This, together with the projected increase in expenditure on longterm care, qualifies as a medium risk for Austria’s fiscal sustainability.

               (9)The fiscal arrangements across the various layers of government (federal, state and local levels) are complex and revenue and expenditure responsibilities are not aligned in many policy areas, such as health care. While, according to 2014 OECD data, sub-national governments have policy responsibilities amounting to general government spending of 16 % of GDP, the share of sub-national taxes is only at around 2 % of GDP. These complexities are costly and may decrease budgetary discipline. The allocation of revenues between the three levels of government is currently being negotiated for the period starting in 2017, thus providing an opportunity to address this matter.

               (10)Austria has traditionally one of the lowest unemployment rates in the EU. However, it has been increasing since 2011 and reached 5.7 % in 2015. The youth unemployment rate is also low: 10.6 % of active 1524 year olds in 2015. Austria also has a high employment rate. However, while the female employment rate is, at 70.2 %, above the EU average, a comparatively large proportion of women works part-time, because of childcare obligations or care for the elderly. This contributes to one of the highest gender pay gaps in the EU and a high gender pension gap. For older workers (aged 55 to 64), the employment rate is below the EU average.

               (11)Austria has already exceeded its national Europe 2020 targets for education. In 2015, the early school leaving rate was 7.3 % and the tertiary attainment rate was 38.7 %. However, education outcomes depend heavily on socio-economic background. Intergenerational mobility in education is among the lowest of all OECD countries for which data is available. The dropout rate of foreignborn pupils is almost three times higher than that of nativeborn and there is an additional challenge to integrate young refugees and migrants of compulsory school age and above into the education and training system.

               (12)While there are challenges for Austrian banks on both domestic and foreign markets, supervisory action at national and European level has helped to address risks from deteriorating asset quality in central, eastern, and southeastern Europe. Regarding the restructuring and winding-down of distressed financial institutions, the fiscal risks have already been factored into government accounts. While further risks cannot be excluded, they seem to be limited to legacy issues for a few specific institutions.

               (13)Austria has a higher investment rate than the EU average for all components of GDP, except dwellings. However, investment in Austria has been weak since 2012, despite solid corporate liquidity and favourable financing conditions. In order to stimulate investment and growth, administrative complexities and hurdles should be removed. For example, regulatory barriers and administrative burden in the area of provision of services are not conducive to opening new businesses. Regarding barriers to the setting-up of interdisciplinary companies, as referred to in the 2015 country-specific recommendations, Austria has started to consider improvements, but no decisions have yet been taken. In business services, particular challenges stem from the restrictive authorisation requirements and restrictions on legal form and shareholding, resulting in low market dynamics and negative productivity growth. The action plan submitted by Austria as a result of the mutual evaluation on access to and practice of regulated professions proposes only a limited number of actions, whereas there is clear scope for more ambitious proposals.

               (14)The high influx of refugees experienced in the past year has a number of social and economic consequences for Austria. While in the short run, the inflow of refugees is set to increase public expenditure and to create additional domestic demand, thereby raising GDP, the medium-term effect on employment and growth hinges on refugees’ successful labour market and social integration, including via educational support. This issue is high on the political agenda both at the EU and Member State level and will be monitored and analysed closely, including in the 2017 country report.

               (15)In the context of the European Semester, the Commission has carried out a comprehensive analysis of Austria’s economic policy and published it in the 2016 country report. It has also assessed the stability programme and the national reform programme and the follow-up given to the recommendations addressed to Austria in previous years. It has taken into account not only their relevance for sustainable fiscal and socioeconomic policy in Austria but also their compliance with EU rules and guidance, given the need to strengthen the EU’s overall economic governance by providing EU-level input into future national decisions. The recommendations under the European Semester are reflected in recommendations 1 to 3 below.

               (16)In the light of this assessment, the Council has examined the stability programme, and its opinion
                  10
                is reflected in particular in recommendation 1 below.

               HEREBY RECOMMENDS that Austria take action in 2016 and 2017 to:

               1.Ensure that the deviation from the medium-term budgetary objective in 2016 and in 2017 is limited to the allowance linked to the budgetary impact of the exceptional inflow of refugees in 2015, and to that effect achieve an annual fiscal adjustment of 0.3% of GDP in 2017 unless the medium-term budgetary objective is respected with a lower effort. Ensure the sustainability of the healthcare system; and of the pension system by linking the statutory pension age to life expectancy. Simplify, rationalise and streamline fiscal relations and responsibilities across the various layers of government.

               2.Improve the labour market participation of women. Take steps to improve the educational achievements of disadvantaged young people, in particular those from a migrant background.

               3.Reduce administrative and regulatory barriers for investments, such as restrictive authorisation requirements and restrictions on legal form and shareholding, and impediments to setting up interdisciplinary companies, in particular in the area of services.

               Done at Brussels,

                     For the Council

                     The President

                     (1)
                  OJ L 209, 2.8.1997, p. 1.

                     (2)
                  COM(2016) 340 final.

                     (3)
                  P8_TA(2016)0058, P8_TA(2016)0059, and P8_TA(2016)0060.

                     (4)
                  COM(2015) 690 final.

                     (5)
                  COM(2015) 691 final.

                     (6)
                  COM(2015) 692 final.

                     (7)
                  SWD(2016) 88 final.

                     (8)
                  COM(2016) 95 final.

                     (9)
                  COM(2014) 494 final.

                     (10)
                  Under Article 5(2) of Council Regulation (EC) No 1466/97.


RECOMMENDATION FOR A COUNCIL DECISION ON THE OPENING OF NEGOCIATIONS WITH YUGOSLAVIA WITH A VIEW TO AMENDING ARTICLE 24 OF THE COOPERATION AGREEMENT


title: RECOMMENDATION FOR A COUNCIL DECISION ON THE COMMUNITY'S POSITION WITHIN THE O.E.C.D. REGARDING COMMUNITY PARTICIPATION IN THE UNDERSTANDING ON EXPORT CREDITS FOR SHIPS AND AMENDMENTS TO THAT ARRANGEMENT (presented by the Commission to the Council)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (79) 268
Vol. 1979/0105
 ---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---                                                                   COM(79)268 final
     COMMISSION                                                   Brussels , 22 th May 1979
        OF THE
EUROPEAN COMMUNITIES                                              FOR OFFICIA L USE ONLY
    General Secretariat
                                  RECOMMENDATION FOR A COUNCIL DECISION
                          ON THE COMMUNITY 'S POSITION WITHIN THE O.E.C.D.
                                REGARDING COMMUNITY PARTICIPATION   IN THE .
                                UNDERSTANDING ON EXPORT CREDITS FOR SHIPS
                                   AND AMENDMENTS TO THAT  ARRANGEMENT
                              ( presented by the Commission to the Council )
         COM ( 79 ) 268 def .
 ---pagebreak---                        .EXPLANATORY MEMORANDUM
 For several months the OECD Council Working Party No 6 on Shipbuilding has
been studying t+ve desirability of adapting the OECD Understanding on
Export Credits for Ships in the light of current trends on the shipbuilding
market and the entry into force of the Arrangement on Guidelines for
Officially Supported Export Credits .    The discussions which have taken place
since July 1978 in the OEC ^ in the Working Parties of the Council of the
Communities and between the Commission and the Member States have pushed
forward the examination of this problem to a point where it is now
appropriate to move on to the negotiations proper and to seek a decision from
the Council of the Communities concerning the position to be adopted by .
the Community at the riegdEPiations which are to be held in the OECD .     These
negotiations will deal with amendments to the present Understanding .       Since
the subject matter . comes within the scope of the Community 's commercial ''
policy , these negotiations will have to be led by the Commission in consul
tation with a special committee appointed by the Council to assist in this
task .  The fact that export credits come within the scope.of Article 113 of
the Treaty also requires the exclusive participation of the Community in the
Understanding .
The Understanding on Export Credits for Ships , the first international
understanding in the field of export credits , came into force following the
adoption of a Resolution by the OECD Council at its meeting of 30 May 1969 .
The major amendments to it were made on 16 December 1979 and 18 July 1974 .
                                                               \
Fourteen countries , including seven Community Member States ( Belgium , Denmark ,
France , Germany , Italy , the Netherlands and the United Kingdom ) participate
in the Understanding .    Other participants are Australia , Canada , Finland,
Japan, Norway , Spain and Sweden .   The major shipbuilding countries also
belong to the Understanding .    Spain, however , has just announced its decision
to withdraw from the Understanding citing its unsuitabi lity in the present
situation .  Moreover , the United States of America , which is not an important
exporter of ships but whose potential capacities must not be ignored , does
not participate in the Understanding .
 ---pagebreak--- The present Understanding specifies the credit terms which the participating
countries must not exceed and contains a number of provisions regarding
procedure .  The credit terms , namely minimum down-payment of 30%, maximum
repayment term of seven years and minimum interest rate of 8% , are less
favourable than those of the Guidelines for Officially Supported Export
Credits , which came into force in 1978 .
                                                                         e
As a result the shipbuilding sector , which is going through a serious crisis ,
is subject to even stricter conditions than other industrial sectors when
it comes to export credit .   Although it is hardly likely that the easing of
credit terms will contribute to a significant increase in orders and thereby
to an improvement in the situation of the shipbuilding industry , it is
nevertheless true that the strict arrangements applied to export credits
for ships must be considered abnormal .
The idea of applying to ships the credit terms fixed in the Guidelines for
Officially Supported Export Credits appears attractive at first sight .
However, bearing in mind the mobility of ships , it is harcily possible to
make distinctions as regards credit terms on the basis of the country of
destination . If clause 6 of the present Understanding is retained it will
be possible for more favourable conditions to be granted for genuine aid
reasons . But granting more favourable conditions of credit to certain countries ,
as provided for in the Guidelines , could result in orders being concentrated
on those countries and could entail unfavourable consequences for Community
shipowners .    Such a result could jeopardize the Community 's maritime
transport policy and could affect the availability of ship'tonnage in a
crisis . However, the negotiations could investigate ways of reducing the
gap between the present procedures in the Understanding on Ships and those
of the Arrangement on Guidelines . The final form of the Understanding on
                    I,
Export Credits for Ships , namely its maintenance as an independent
arrangement or its integration under appropriate conditions in the Arrangement
on Guidelines has still to be decided .    It will depend on the importance
which the participants in the negotiations attach to the alignment of existing
procedures and the possible winning over of new countries to a joint
discipline for ships .
 ---pagebreak--- The participants in the present. Understanding on Export Credits for Ships
are the Member States and non-member countries . Since export credits
come within the scope of the Community 's commercial policy, the Community
alone must be a party to the Understanding . The Community 's participation
in the Arrangement on Guidelines for Officially Supported Export Credits
constitutes a -precedent in this matter . The Community 's participation will
affect all the Member States including Ireland and Luxembourg , which do not
belong to the present Understanding . Recent discussions have shown that those
                                                                     r
countries are not opposed to this participation .
It goes without saying that the results of the negotiations can in no way
affect Council Directive of 4 April 1978 on aid to shipbuilding . Since the
Directive also concerns the conversion of ships , it is useful to make the
other members of the Understanding subject to the same discipline as the
countries of the Community . It is therefore proposed to "have it recognized
that the Understanding should cover not only new ships but also the conversion of
ships . The new Understanding would not have any influence on the provisions
of the Treaty concerning aids ( Articles 92 and 93 ). Therefore the Community 's
agreement to easing credit terms must in no way be considered as an abandonment
of its policy of resistance to any increase in or development of other aids
to shipbuilding .
The Commission considers it appropriate that the Council should adopt
directives on the Community 's position and to this end recommends that
it adopt the decision the draft of which is attached hereto .
 ---pagebreak--- RECOMMENDATION FOR A COUNCIL DEQISION ON THE COMMUNITY 'S POSITION
WITHIN THE OECD REGARDING COMMUNITY PARTICIPATION IN THE UNDERSTANDING
ON EXPORT CREDITS FOR SHIPS AND AMENDMENTS TO THAT ARRANGEMENT .
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
and in particular Article 113 thereof ,                         r
Having regard to the Recommendation from the Commission ,
Whereas directives should be adopted on the position which the Community
is to adopt wit.t^n the OECD regarding . Community participation in the
Understanding on Export Credits for Ships and amendments to that Under
standing ,
HAS DECIDED AS FOLLOWS :
                        Sole Article
       In the negotiations within the OECD on the Community 's participation
 in the existing Understanding on Export Credits for Ships and amendments
to that Understanding , the Commission shall express the Community 's posi
tion in accordance with the directives annexed hereto .
                                     * •       "
       It shall proceed in consultation with the Special Committee provided
                                                     1
 for in Article 113 of the Treaty , which shall assist it in its task .
                                            For the Council ,
  Done at Brussels ,
 ---pagebreak---                     • I
                        ,¥
                         \
                  l
                                                              ANNEX
 I. SUBJECT
     A ) Unde r stand ing_ refer red_to_in_th ese_d ire ctives
         The Understanding referred to is the Understanding on Export Credits
         for ships adopted by a Resolution of the OECD Council on 30 May
         1969 and amended by the Resolutions of 16 December 1970 and 18 July
         1974 .                                                               f
     B ) Scope
         The Understanding concerns the credit terms applicable to ship
         exports in respect of which official facilities are made available .
                           ■•W  -
II . NEGOTIATING DIRECTIVES
     A ) The_ C omm un i t s_£a r t i_c i gat ion_in_theJJnder standing
         Since export credits come within the scope of the Community 's com
         mercial policy , the present participation of seven Member States of
         the Community in the Understanding on Export Credits for Ships must
         be replaced by the participation of the Community as such .
     B) Amendment s_to_the_Unde rsta nd^ing
          1 . Credit terms
              For all contracts relating to the building of a new ship or the
              conversion of an old one , the. new Understanding will be drawn
              up on the following basis :
              - The down - payment to be made before delivery must be at least
                20 % of       the contract price ,
              - The maximum credit repayment term as from the date of delivery
                will: be eight and a half years .          Repayment will be effected
                 in equal instalments at six-monthly intervals ,
              - Retention of the minimum interest rate of 8 % as in the pre
                 sent Understanding ,
              - These terms will be the sariife for all areas of destination .
                 The possibility of granting more favourable conditions on an
                 exceptional basis and for genuine aid reasons will be main
                 tained ,
 ---pagebreak---             \
                 - 2 -
. Procedures
   For the amended Understanding , a way will have to be sought
   that will make it possible for procedures to be devised that
   bring those of the present Understanding on Export Credits for
 . Ships closer to those of the Arrangement on Guidelines for Offi
   cially Supported Export Credits ( the Consensus ).
               *5» ...
   The final form of the solution to the problem of export credits
   for ships will be determined during the negotiations .  It will
   depend on the following two-fold objective : the widest possible
   rationalization of the procedures to be applied and the adherence
   of the greatest number of participants to thfs new regime.'


RECOMMENDATION FOR A COUNCIL DECISION AUTHORIZING THE COMMISSION TO NEGOTIATE A MULTILATERAL CONVENTION ON ADMINISTRATIVE ASSISTANCE IN TAX MATTERS WITHIN THE COUNCIL OF EUROPE


title: DRAFT RECOMMENDATION BY THE COUNCIL TO THE MEMBER STATES regarding cost Allocations and action by public authorities on environmental matters (submitted to the Council by the Commission)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (74) 233
Vol. 1974/0045
 ---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 OP HIE EUROPEAN COMMUNITIES
                                                     COM(74)233 Final
                                                     Brussels , 5 March 1974
                                       DRAFT
                        RECOMMENDATION BY THE COUNCIL
                               TO HIE' MEMBER STATES
              regarding cost Allocations and action "by public
                     author it es on environment ;:.! matters
                                                                  \
                ( submitted to the Council by the Commission )
   C0H(74 ) 233 Final
 ---pagebreak---                                            SNV/20/74-E
Communication from the Commission to ths Counoil
regarding cost allocations and action by publio
     authorities on environmental matters
 ---pagebreak---                                           - X -                      ^ 0/
    Cost allocation and action "by public authorities on environmental
    matters - Principles and methods of application
                                » «
1 , In the framework of the Declaration of the Council of the European CommaAities
    and of the representatives of the Governments of the Member States meeting
    in the Council of 22 November 1973 on the programme of action of the European
    Communities on the environment , the principle of the internalisation of
    external costs known as "polluter pays " was accepted , The programme of action
    provides that the Commission should submit to the Council a proposal concerning
    the application of this principle including possible exceptions .
    In this regard it is necessary to allocate the costs of environmental protection
    against pollution according to the same principles in the whole of the Commity
    so that distortions of competition , may not affect trade and the location of
    investments , which would be incompatable with the proper functioning . of the ,.
    Common Market .
            *   ■ •      *
2 . To achieve this , the European Communities at Community level and the Member
    States in their national legislation on environmental protection should
    apply the " polluter pays " principle under which natural or legal persons
    responsible for pollution must bear the cost of such measures as are necesg
     ary to eliminate or roduce this pollution to the. desired level as laid down
    by the authorities .
    Consequently environment al protection must not be the responsibility of
    national policies , which rely mainly on grants of aid and hence put the
    burden of pollution control . on the community . ■          -
3 . Application of the " polluter pays ", principle generally requires that , in
    each case , it is necessary to determine who the real polluter is and to
    ascertain the precise extent of pollution for which a firm or individual
    is responsible.           '      ,                                 -         1
    Whore the p'olluti'on results from a production process or the provision of
    a service , the cost of the anti-pollution measures should in principle be     ,
    borne by the producer or by the person providing the service .
                                                                          ./
 ---pagebreak---                                      - 2 -                 ENV/20/74-E
     Where the pollution results from the use of certain products , the
      cost of the anti-pollution measures should in principle be borne •
   . "by the user.                             r
     If finding the real polluter proves impossible or too difficult and
     hence arbitrary - especially when there is a "pollution chain" or
     " cumulative pollution" - the cost of pollution control should be
      charged at certain points along the pollution chain or during the
      cumulative pollution ; this cost allocation would be carried out by
     whatever legal or administrative means offered the best solution from
     an economic and administrative point of view .
4* The optimum purity level for the environment should be determined by
     the public authorities at a given moment in time now or in the future
     in keeping with the natural or agreed purposes for whioh an area or
     part of an area is designated, account being taken of economic and
     sooial considerations together with the marginal cost of purification
     or prevention .
     This optimum level should be fixed at least at a level where human
     health and the survival of animal and plant life are not threatened.
     Even if this level varies from one region to another , it is desirable
     that account be taken not only of the inhabitants' interests in the
     region for which the quality objective has been fixed , but also of
     the drawbacks for all interested parties .
                                                             <
5 . The main means of action available to public authorities to reduoe .
     the pollution to the desired level of environmental quality are
     standards and levies , with the possibility of oombining the two .
     a) Standards set the maximum permitted values for;            T
 ---pagebreak---                                                            ENV/20/74-E
    i ) the concentration of pollutants in a given environmental medium
        or part of an , environmental medium ( immission standards)
   ii ) the emission of pollutants or nuisances from fixed installatiens
        ( emission standards )
 iii ) the level of pollutants or nuisances which is not to be exceeded
        in the ocmposition or emissions of a product ( product standards )
ad      i ) Harmonization of existing immission standards in the Member
            States or the fixing of Community immission standards can be
            justified either in order to fix a basic protection level or
            in cases of pollution extending across national frontiers .
ad     ii ) Emission standards may be uniform for an entire economic area
            or may vary depending on the region ? however , for the emission
            of persistent and harmful substances , harmonization of minimum
            standards may be necessary so as to minimize the accumulation
            of these substances in the environmental milieu .
ad iii ) Product standards should generally be uniform throughout the
            Community . Exceptions to this rule can only be made following
            the same procedure by which the standards themselves were drawn
            up .
            As a rule , product standards apply to finished products . It
            is only when all or a large proportion of products made from
            the same semi-product cause the same level of pollution that
            the standard is applied at the semi-product or raw material
            stage . A decision on this should be taken for each individual
            case .
 ---pagebreak---                                                       ENV/20/74-3
b ) Levies may have an incentive or redistributive function, the rate
    being fixed accordingly . The rates may be uniform or may vary for
    each emission depending on the quality objective to be attained..
    The levies must be fixed by emission units and applied according to
    the quantity of the pollution emitted.
    Where the main aim of the levy is to bring about a -redistribution ,
    it should be calculated in such a way that , for a given region and
    quality objective, the sum of the levies equals the collective
    purification charges .
    Where it is not possible or desirable to install collective
    purification plants or where these plants will have a limited
    capacity , the levy should be calculated so that it largely matches
    its incentive function.        , .   -             ,        .
    Once collected, the levies may be used either to finance collective
    purification infrastructures or to provide grants for major
    polluters to set up such equipment ; in the latter case the - grants
    should be calculated in such a way as to cover the services these
    polluters render the community but without .passing to the community
    the cost of the investment which the polluters themselves must
    bear to ensure that their own pollution is eliminated.
    Where the total revenue from levies exceeds the sum of the •
    collective and individual purification charges , the difference
    should preferably be used by each government within the , framework
    of its environmental policy.
    As far as possible , Member States should endeavour to standardize
    methods of calculating the levies. Harmonization of the incentive
    levies would seem desirable to avoid • ' distortion of competition
    in the Community.                                             '
 ---pagebreak---                                 - 5 -                 ENV/20fi4-E
c ) In order to avoid serious distortions of competition affecting
    trade and the distribution of investments in the Community, it
    will nndoubtedly "be necessary to harmonize more and more closely
    the various instruments - and especially standards – at Community
    level .
Those responsible for pollution will be obliged to meet ;
a) the expenses incurred as a result of compliance with the standards
    laid down by the public authorities ( investment in anti-pollution
    plant and equipment , introduction of new processes , cost of running
    anti-pollution plants , etc.),
b ) expenses in respect of payment of levies ,                   i
c) compensation paid to victims of a particular pollution or nuisance .
The costs to be borne by the polluter (under the^ "polluter pays"
principle) should include all the expenditure necessary to achieve
an environmental quality objective as well as the compensation paid
to victims in cases where it has not been possible to achieve this
objective ; this would also include the 'administration costs directly
linked to the implementation of anti-pollution meas'asrea.
The cost of buying , constructing and operating pollution measuring
and control equipment should , however, be borne by the public
authorities .
Exceptions to the"polluter-pays"principle oould be justified by
a) real difficulties in adapting to environmental quality standards ,
    particularly for economic , technical and social reasons .
    where the immediate application of very severe standards or heavy
 ---pagebreak---                                 - 6 -                    ENV/20/74-E
levies "to meet the cost of pollution control is likely to cause
serious upsets in some sectors or regions , the unduly hasty incorporation
of pollution control oosts into production costs may give rise to
higher social costs . In that case it might prove necessary
- to allow some producers a certain period of time to adapt their
  products or output to the new standards ,
- or to give transitional aid to the industrial sectors or regions
  concerned ; such aid could , of course , only be granted by Member
  States with due regard to the provisions on state aid set out in
  the Treaties establishing the European Communities , in particular
  articles 92 et seq . of the EEC Treaty .
Such measures can , in any case ,, apply only to existing undertakings ?
the interplay of other policies ( regional , social , research ) together
with the environmental protection policy .
The indirect effect of some types of aid granted to aohieve objectives
other than environmental protection may be to cover part of the costs
which the companies , benefiting from it would normally have had to
bear themselves to reduce pollution of their own making ; this type of
aid is . also subject to the provisions of . the Treaties establishing
the European Communities , in particular articles 9 ?., et seq . of the
EEC Treaty .
 ---pagebreak---                                  - 7 -                 ENV/20/74-E
The Commission , in the execution of its tasks within the framework of
the environmental policy of the Community , will comply with the defini
tions and methods of application of the above-mentioned polluter pays"
principle .
The Commission asks the Council to take note of these definitions and
methods of application and to recommend to the Member States to conform
to them in their legislation and administrative acts involving the
allocation of costs in the environmental field .
The Commission reserves the right to submit to the Council at a lster
date more specific proposals in this field .
 ---pagebreak---                                              ENV/20/74-E
                      Draft
         RECOMMENDATION BY THE COUNCIL
             TO THE MEMBER STATES
regarding cost allocations and action by public
     authorities on environmental matters
 ---pagebreak---                                                           EJjT/20/74-E
In the Declaration of the Council of the European Communities and of
the resprescntatives of the Member States at a meeting of the Council
or* 22 Uovcmbcr 1973 (1 )? concerning en action programme of the" European
Communities on the environment , the "polluter pays" principle was
accepted .
The costs associated with the protection of the environment ag&inst
pollution should properly "be imputed according to the same principles
in the whole of the Community to avoid the creation of distortions in
trade and competition incompatible with the harmonious functioning of
the Common Market , and taking- account of the aims of balanced economic
expansion pursued by the Community.
To facilitate the application of this principle , the European Communities
and the Member States must give it~"grear^^pr«ci«i©n~by--4^i«ing-^bh«–––
conditions of application as well as some exceptions to it which could
be allowed , with due regard to the difficulties of applying this
principle and to the interplay of other policies with the environmental
protection policy. .
For these reasons , and in accordance with article 145 of the Treaty
instituting the European Economic Community , the Council recommends
to the Member States to conform , in respect of the allocation of oosts
and the action of public authorities on the subject of protection
of the environment , to the principles and to the conditions of
application laid down in the £nramHn±oat"&oripDtfsth& Boami>3©icifttiftnexed to the
present Recommendation .
( 1 ) O.J.S.C. no. C 112 of 20.12.1973