RECOMMENDATION FOR A COUNCIL DECISION ON COMMUNITY PARTICIPATION IN THE COMMON FUND FOR COMMODITIES AND THE SIGNING BY THE COMMUNITY OF THE AGREEMENT ESTABLISHING THE FUND


title: RECOMMENDATION FOR A COUNCIL DECISION on the conclusion of an agreement between the European Economic Community and the Yemen Arab Republic for the supply of cereals as food aid (submitted to the Council by the Commission)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (74) 1568
Vol. 1974/0251
 ---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(74 ) 1568 final
                                                       Brussels * 3 October 1974
                          RECOMMENDATION FOR A
                            COUNCIL DECISION
             on the conclusion of an agreement between the
                  European Economic Community and the •/
       Yemen Arab Republic for the supply of cereals as food aid
              (submitted to the Council by the Commission)
COM(74) 1568 final
 ---pagebreak---     TIIL: COUNCIL OF TTIIU UUROPEAW CCII MU NITILJ ,
    Having regard to the Treaty eetabliohing the European Economic Community ,
    and in particular Articles 113 * 114 and 229 , thereof J
    Having regard to the Recommendation from the Coinmisciort J
    VJhereas the European Economic Community has Concluded the second Convention
    relating to food aid ( l )}
                                                  <
    V.'hereaa the Yemen Arab Republic                 i by itfe letter t>f « 8*0*1 97 3
    has recpiiested food aidl
    Whercaa in view of the cereal supply eituaiibri iri             Yemen   that country
    should bo accorded , by tioy of £iftj 10»000 tonnes of soft wheat under the
    Community Food Aid Programme for 1973/74 }                  -
. DEC MJÎIG Î
                                                              (          I
                                 \                        /
                                      Article       1
   Ort bohalf of the European Economic Community an Agreement ) the text Khcroof
   ie annexed hereto , shall be conoluded between the European Economic Cor.Vinuii't
   and the Yemen Arab Republic for supply of soft wheat                    ac food aid »
                                      Article       2
  The Precident of the Council i& hereby authorized to designate those V/ho
   are to tiign the Agreement end to cbnfei4 6ri them the requisite powers to
  bind the Community »                      ,                                            .
                                        C     ■
 Donc at BrUosels ,                       19
                                                                  For the Council
                                                ;      •'          The Président
 .                                            \
   ( i ) O.j , L 219     9.8,74 * pi 19 . , •
 ---pagebreak---                  \
              AGREERENT
BETWEEN THE EUROPEAN ECONOMIC COi Ti-'jUNITY _
AND TILE YEMEN ARAB REPUBLIC '          ON
THE SUPPLY OP i'OOB AID IN THE FORji 6F
CECALS .
 ---pagebreak---  Tire COUNCIL OF THE EUROPEAN COMMUNITIES .
                                            of the one part .
 THE GOVERNMENT OF THE   YEMEN ARAB REPUBLIC ,•
                                            of. the othèr part#
                                     i
HAVE DECIDED to conclude this Agreement and to this end have
designate    as their plenipotentiaries t
                             m
TUB COUNCIL OP THE EUROPEAN COMMUNITIES T
THE GOVERNMENT    OF THE  YEMEN ARAB REPUBLIC F
                                            /
WHO HAVE AGREED AS FOLLOWS i
 ---pagebreak---                       . – ARTICLE    I
The Europoan Economio Community snail supply by Way Cf gift to -the
 Yemen Arab Republic ( hereafter referred, to as "the reoipient country ") a
 quantity bf 10.000 tonnes of soft wheat       under the Community 's feed aid
programme in cereals foi* 1973/74 *
                             ARTICLE II  .
                                       "          »
Deliveries will be made in bulk FOB in accordance With the details laid
down in the Anhex: which forma an integral pai*i of the present Agreement *
                           ARTICLE   III
                            "                    )
                                               /    «
The recipient country undertakes to make rill necessary arrangements for the
tranoport and insurance of the products from point of delivery to places
of destination *
It undertakes to exercise the greatest care to ensure that the tendering
arrangements for sea transport do hot prejudice the free play of fair
competition * Any problems aritdng in this connection shall be the subject
of consultations under Article Vlll 6f the present Agreement *
                          *
                            ARTICLE  IV
The recipient country undertakes to Use the product received as aid for
purposes of consumption and to apply , for the Dale of the product on its
market * the prices normally charged on that market for produots of
comparable quality * The proceeds from this sale shall bo paid into a
special account with the Central Bank and allocated to the financing of
one or more development projects Under arrangements which have been
                                                        '           i     .
agreed in advance between the recipient 66Uniry fend the European Eoonomio
Community *                                                ■
 ---pagebreak---                                                 \
                                ATLTICUÎ  V
  The Contracting Parties undertake to implement this Agreement in such a Way
  as lo avoid any prejudice to the normal structure of national production
  and international trade . To this end they shall take any measures required
  to ensure that supplies as           are in addition to and do not replace busineau
  transactions which might' reasonably bo expected in tho absence of such supplies *
  In particular , the recipient country ' Undertakes to import commercially frci>
 whatever source "between 1 July 1974 ahd 30 Juno 1975 o. minimum quanity of
(l 00 . 300 ) tonnes        of soft wheat or its equivalent in floui4 of GOft wheat .
                                ATÎTÏCLÏ; VI
 The recipient country shall ttike all steps required to prevent {
 ( i ) the re-export of the product received as aid and also of any products*
          and by-products resulting thterefrom }
 ( ii ) the export , commercially or otherwise * within a period of six months
          commencing from tho final delivery ! either of any product procured
          locally of the fjame nature as that received bo aid , or of any products
          and by-products resulting therefrom .
                                ARTICIE' VII
The recipient country undertakes to inform tho European Economic Community
 of how this Agreement is implemented . To this end it shall provide the
Commission of tho European Communities with the following details t
     ( i ) Immediately after the unloading of each cargo : ports and dates of
           arrival of vessel } nature , quantity and any observations as to the
           quality of the products Unloaded } date on which unloading Was
           completed } costs of sea transport and of insurance relating thereto }
   ( ii ) Every three months until the quantities received as aid have been
           fully used : quantities sold } manner of sale } actual selling prices }
           normal selling costs On the recipient oountry 's market } coots of .
           insurance ( and of transport if applicable ) from the port of unloading
           to the places of destihaiion j             .
                                                    t
 ---pagebreak--- ( iii ) On 3.5 January every year until the special account has been fully
        expended J                   ' '
        a ) Siunmary of the account ( incomings and outgoings ) to 31 December4
            of tho previous year ;
        b ) Stage of progress of the project oy* projects * indicating the
                                                <
            total resources expended to that
                               article   VTII
The Contracting Partieo shall at the request ox either consult each other
on any questions concerning tho implementation of thift Agreement *
                               ARTICfi   IX
This Agreement ia ur.-i.wn isp in dup5 icate irt the Danifih » jDüteh ) Englieh ,
French , German and Italian langiiftgeo # each of theso textn having equsl for'cei
 ---pagebreak---                                                  \
                              Honorai provisions
                                                       , 'i
                                    Article  1
  Delivery shall bo effected and ricks ehall pass form the European Economic
  Community , hereinafter deferred to at; the EEC , to the recipient country at
  the moment at which the goods are put down at the point of exportation
  nomed by the Commission of the European Communities at the berth specified
  by the recipient country or its agent referred to in Article 3 tmd tinder the
 terms specified in the follov;ing articles ! V/ithout prejudice to Articles $ 'and
• 9 . the EEC t;ha3 1 bear all costs up to delivery and the recipiont country tho:;e
 beyond delivery *
                                   Article  2
  On dolivery a tolerance of 5 7> lees than the quantity of the product to bo
  supplied in accordance with article I of the Agreement shall be ackiisnibls »
                                                     /
                                                   /
                                   Article  3
  The EEC shall appoint Mi agent to implement the provisions of the prescni
  Annex - or for each consignment - whose name and address it ehall make
  known to the recipient country immediately following his appointment#
 The recipient country shall appoint art agent in the port or ports of ship
 ment , v/hooe name and address it shall make knovm to the EEC with all
  despatch and if possible before the appointment of agent of the EEC .
                                 %
                                                               .*                   *
                                   Article  A
 Before implementing the procedures for appointing the agent of the EEC
 referred to in Article 3t the Commission of the European Communities and
 the recipient country dhall jointly establish the period during which
 delivery must begin .
                  0b5 i.rati ons of the European Economic Community
                                   Article  5                '
 Should the EEC not be in a position to fcarry out delivery on the date and
 ( if applicable ) on the schedule aS provided in Article 7t All costs
 arising for the recipient couhtry *- for example demurrage Void freight
 and dead freight - shall be borno \?y tlifc EEC » , - '
 ---pagebreak---  Tho chnrgeo and tho arrangements relating to domurragei laid down in tho
 contraot between iho recipient country and the caiwier muot havo been
 agreed in advance by the recipient country and tho agent of the ESC *
 The other costs referred to in the first paragraph chall only bo refunded
 by the EEC if they have been paid by the Recipient country With tho approval
 of the EEC .
                                 Article   6
 Should it prove impossible for tho EEC to supply all or part of the goods
 on the date and within the time-limits provided, for in Article 7 and without
 prejudice to thei provisions of Article 5 * & new date and t new time-liv,.it
 shall bo agreed between the agents of the EEC and of the recipient country
 for the delivery 6f all the goods or of the undelivered part thereof *
                    Obligations of the re cipient' country
                                 Article . 7 '
After contacting tho EEC > tho recipient country fjhall procure one or more
vessels to transport all the quantities provided for in Article 1 of the
Agreement , of dimensions corresponding to tho normal capacity of tho port of
 shipment } these vessels must b6 ready for loading on a date falling Within
 the period referred to in Article 4 •                                   •
The agent of the recipient * coun try tehall inform the EEC of this date
 iminedately on learning it , and aleo that for coimnencement of delivery ,
if possible twenty days ih advance and in any case tort dayG before the date
for commencement of delivery#
He shall establish With the agent of the EEC the schedule to which ddlivory
shall take place i
                                 Article   8
Should the recipient country be unable to begirt loading on th6 date provided
for in Article 7 » paragraph 1 | the agent of the re6ipient country ehall
inform tho agent of the EEC without delay *        '    • «
 ---pagebreak---    In thin event a new date for the commencement of do ] ivory and ( if nppl i onbl e )
  a new schedule could he agreed between the agents of the EEC and of tho
  recipient country . Tho costs arising from this dels.y shall in all cases
  except force majeu re be borne by the recipient country .
  Should the new date provided for in paragraph 2 bo more than ^0 clear days
  after the date for loading provided for in Article 7 » paragraph 1 , the EEC
  may d.isposo of tho goods without prejudice to its commitment Under Article 1
                                      i
  of this Agreement »
                                   Article   9
  If the quantity made available for loading on a vessel cannot be put on
 board in its entirety , the recipient country shall inform the EEC an soon
 as possible and no later than fifteen clear days after loading hufj been
 completed whether it intends to accept or to renounce the balance#
 In the former cane the provisions of Article U , paragraphs 2 and 3r r.he.11
 apply to the balance , if delivery has not yet' taken place .
                                            /
 In tho lat ter cose the EEC may consider thai it has discharged its coi.imi tr.ent
 to the recipient country under Article 1 of this Agreement and shall boar
 the COG TR; resulting from such renunciation .
                                                                                i
 In any event after the expiry of an interval of fifteen clear dnys and in
 the absence of any notice on the part of the recipient Country t tho renun
 ciation shall be deemed to have taken pi ace t
                                   Article  10
Upon delivery of the goods , the recipient country shall hand to the
agent of the EEC a certificate of acceptance stating the port of shipment ,
date of acceptance , the nature and quantity of tho goods accepted and
including any comments on the quality of the goods , and feend ft copy thereof
to the Commission of the European Communities *
                               <4


ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 1712
Vol. 1973/0295
 ---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(73)1712 Final
                                                   Brussels , 12 October 1973
                                        f
                             RECOMMENDATION FOR A
                               COUNCIL DECISION
           on the conclusion of an agreement between the European
             Economic Community and the Republic of Senegal for
                    the supply of common wheat as food aid
                (submitted to the Council by the Commission)
COM(73 ) 1712 Final
 ---pagebreak---                                     - 1 -
 THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
 Having regard to the Treaty establishing the European Economic Community ,
-and in particular Articles 113 , 114 and 228 thereof ;
 Having regard to the Recommendation from the Commission ;
 Whereas the European Economic Community has deposited a Declaration for pro
 visional application of the 1971 Food Aid Convention ; whereas that Convention
 has "been applicable since 1 July 1971 ;
-Whereas the Republic of Senegal , by its letter of 7 December 1972 , has
 requested food aid ;
 VJhereas in view of the cereal supply situation in the Republic of Senegal that
 country should be accorded , by way of gift , 10.000 metric tons of common wheat
 under the Community Food Aid Programme for 1972/73 ;
 DECIDAS :
                                      Article 1
"On behalf of the European Economic Community an Agreement , the text vihereof
 is annexed hereto , shall be concluded between the European Economic Community
 and the Repiblic of Senegal for the supply of common wheat as food aid .
                                                                        *
                                      Article 2
 The President of the Council is hereby authorized to designate thqse who are
 to sign the Agreement and to confer on them the requisite' powers to bind the
 Community . .
 Done at Brussels ,            19 ...                        For the Council
                                                              The President
 ---pagebreak---                        AGREMENT
       BETWEEN THE EUROPEAN ECONOMIC COMMUNITY
            AM) THE REPUBLIC OP SENEGAL
ON THE SUPPLY OP POOD AID IN THE FORM OP COMMO& WHEAT
 ---pagebreak--- THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
                            / •
                                                       on the one hand ,
THE GOVERMENT OP THE REPUBLIC OP SENEGAL ,
                                                       on the other hand ,
HAVE DECIDED to conclude this Agreement and to this end have designated
s.s their plenipotentiaries :
THE COmiC IL OP THE EUROPEAN COMMUNITIES :
TEE CO'Offil.ITT? OP THE REPUBLIC OP SENEGAL :
WHO HAVE AGREED AS FOLLOWS :
 ---pagebreak---                                 Article I
 As a part of its Pood Aid Programme (cereals ) for 1972/73 ,: the European
-Economic Community shall supply the Republic of Senegal hereinafter referred
 to as the "recipient country", with 10,000 metric tons of common wheat .
                                Article II
 Deliveries will be made in hulk pif to ports of unloading of the recipient
 country .
                                Article III
 The obligations and responsibilities of the European Economic Community and
 of the recipient country relating to delivery and the taking of delivery are
 defined in the Annex which forms an integral part of this Agreement .
                                Article IV
"The Tecipient country undertakes to make all necessary arrangements for the
-transport und insurance of the product from ports of unloading to places of
 destination .
                                Article V                    •;
 The recipient country undertakes to use the product received as aid" for pur- .
                                                                         5
 poses of consumption and to apply , for the sale of the product on its market ,
 the prices normally charged on that market for products of comparable quality.
                                    1:                                B.
 The proceeds from this sale , less the normal cost of interior transport and of
 selling the product on the recipient country 's market ,, will he paid into a
 special account in the Central Bank and allocated to the financing of one or
 more development projects which have already been proposed by the recipient country
 and approved by the European Economic Community.
                                Article VI
 The Contracting Parties undertake to implement this Agreement in such a way
 as to avoid any prejudice to the normal structure of domestic production and
 international trade . To this end they shall take any measures required to "•
 ensure that aid supplies are in addition to , and do not replace , business
 transactions which might reasonably be expected in the absence of such supplies .
 ---pagebreak---                                         - 3 -
                                     Article VII
The recipient country shall take any measures required to prevents
(i ) The re-export of the product received as aid and of products and
      "by-products resulting from such supplies ;                                        r
(ii ) The export , commercially or otherwise , within six months of the last
      delivery , either of the product obtained locally and of the same nature
      as the product received as aid or of any products or by-products resul
      ting from it .
                                     Article VIII
The recipient country undertakes to inform the European Economic Community
how this Agreement is "being implemented . To this end it shall provide the
Commission of the European Communities with the following information :
(i ) Not later than thirty days after the unloading of each cargo s
    . ports and dates of arrival of the vessel ; nature , "quantity and quality of
      the products unloaded ; date on "which unloading was completed ;
(ii ) Every three months until the quantities received as aid have "been fully
      used : quantities sold , how they have "been sold , selling prices ; normal
      selling costs on the recipient country 's market ;
(iii)On 15 January every year until the special account has "been fully used :
       (a ) State of this account ( incomings and outgoings on 31 December of the
             preceding year ;                                  -
       (b ) Progress achieved in the project or projects , with an indication of
            {tie total amount of financing undertaken at that stage .
                                     Article IX
At the request of either of them , the Contracting Fatties shall consult each
other on any questions concerning the implementation of this Agreement .
                                              «
                                     Articles X
This Agreement is drawn up in duplicate in the Danish , Dutch , English , French ,
German and Italian languages , each of these texts being equally authentic .
                                                                            • • • /• • •
 ---pagebreak---                ANNEX"  REFERRIMJ TO ITT ARTICLE III OP THE AGREEMENT
                                      Article 1
" Delivery shall be effected and risks shall pass from the European Economic
  .Community to the recipient country at the moment when the goods are actually
  removed from the slaip , s hold at the port of unloading . The recipient country
   shall "bear all costs subsequent to delivery of the goods , including unloading
   costs ( such as unstowing , hoisting and reception )and any lighterage costs .
  Any demurrage costs or dispatch money at the port of unloading shall "be a
  charge on or for the benefit of the recipient country . The rates and detailed
   arrangements -relating thereto laid down in the contract between the authorized
  agent of the Community referred to in Article 5 and the carrier must have been
  agreed upon in advance by the authorized agent and the receiving agent of the
  recipient country referred to in Article 5 «
                                       Article 2           . '•
  The European Economic Community shall , as soon as possible after the goods
  have been loaded , notify the recipient country of "the ship 's name , the date
  of loading , the quantity and quality of the goods, as recorded at time of
  loading, and the port of unloading .
                                                                            *
                                       Article 3
  The European Economic Community shall inform the recipient country of the
  vessel 's expected date of arrival at the port of -unloading at least ten clear
  days before that date .
  The European Economic Community shall insert in the charter party a clause
  requiring the captain to inform the recipient count y at least 72 hours in
   advance of the vessel 's estimated date of arrival in port .
                                       Article 4
   On delivery of the goods , a tolerance shall be allowed of 5 % less than the
  quantity to be supplied under Article I of the Agreement .
 ---pagebreak---                                  - 2 -
                               Article 5
 To implement the provisions of this Annex , the European . Economic Community
 shall appoint an authorized agent , whose name and address shall be ma.de known
to the recipient country in good time .
 The recipient country shall appoint a receiving agent in each port of unloading ,
whose name and address shall "be made known to the European Economic Community
"before the Agreement is implemented .


title: Recommandation de décision du Conseil sur l'existence d'un déficit excessif en Allemagne - Application de l'article 104, paragraphe 6, du traité instituant la Communauté européenne

text:
                                  RESTREINT UE
                 COMMISSION OF THE EUROPEAN COMMUNITIES
                                                  Brussels, 8.1.2003
                                                  SEC (2003) 9 final
                                                  EU RESTRICTED
                                  Recommendation for a
                                 COUNCIL DECISION
on the existence of an excessive deficit in Germany - Application of Article 104(6) of the
                     Treaty establishing the European Community
                              (presented by the Commission)
 EN                                                                         RESTRICTED     EN
                                   RESTREINT UE
 ---pagebreak---                                        RESTREINT UE                    Ce document
                                                                       a ete declasse
                              EXPLANATORY MEMORANDUM                           15. 11, 2006
On 13 November 2002, the Commission released its Autumn ec( ilopic forecast, projectmg
for Germany a general government deficit of 3.8% of GDP for ^^*^ f ^V T y"" wy f i ffnif*fh^
reference value of 3% of GDP. Based on this prima facie evidence, the Commission initiated
the Excessive Deficit Procedure for Germany on 19 November 2002, with the adoption of the
report foreseen in Article 104.3 .of the Treaty. On 18 December 2002, the Commission
received the updated Stability Programme of Germany, which confirmed a government deficit
figure of 3 V* % of GDP for 2002. The application-of the excessive deficit procedure (EDP) is
governed by Article 104 of the Treaty (ex 104c), Council Regulation N01467/97 "on the
speeding up and clarifying the implementation of the excessive deficit procedure", which is
part of the Stability and Growth -Pact. It is also affected by the political commitments
enshrined in the Resolution of the Amsterdam European Council on the Stability and Growth
Pact of 17 June 1997.
 In an initial step of the EDP, the Commission prepared a report according to Art. 104.3 of the
 Treaty. That report was adopted by the Commission on 19 November. It concluded that in
 2002, the general government deficit in Germany was likely to reach 3.8% of GDP,
 significantly exceeding the reference value of 3%. Gross government debt was projected to
 reach 60.9% of GDP by end-2002, also rising above the respective reference value of the
 Treaty (60% of GDP). The excess of the German deficit in 2002 over the reference value did
 not result from an unusual event outside the control of the German authorities, nor was it the
 result of a severe economic downturn. On developments in 2003 the report concluded that,
 while it was clear that the deficit would be reduced, it was not yet possible to assess whether
 the deficit would come to fall below the 3% of GDP reference value. Moreover, given that the
  debt-to-GDP ratio was projected to rise to close to 62% of GDP by the end of 2003, any
  slippage in budgetary execution or a deceleration in nominal GDP growth would imply an
  additional deterioration of the debt ratio.
  Treaty Art. 104.4 states that "the Committee provided for in Article 114 (i.e. the Economic
  and Financial Committee) shall formulate an opinion on the report of the Commission". The
  Committee issued its opinion on 29 November 2002 (document EFC/ECFIN/593/02), largely
  subscribing to the Commission's Assessment. In particular, the EFC concluded that budgetary
  developments in Germany in 2002 were such that both the deficit and the debt criterion
  referred to in Article 104(2) were not respected. Consideration of other relevant factors
  supported the assessment based on these criteria. While taking note of the strong commitment
  by the German authorities to introduce all the necessary measures to correct the situation, the
  EFC, following the report by the Commission, considered that there was a risk of the general
  government deficit exceeding the Treaty's reference value again in 2003. The Committee also
  underlined that gross debt was unlikely to reverse its rising trend to comply with the Treaty's
  reference value of 60 percent of GDP.
   The Commission, having examined the relevant factors taken into account in its report and
  having regard to the opinion of the EFC, is of the opinion that an excessive deficit exists in
   Germany. This opinion, adopted by the Commission on [8 January 2003], is herewith
   addressed to the Council, according to Article 104.5 of the Treaty. The Commission
   recommends that the Council shall decide accordingly, in conformity with Article 104.6. In
   addition, the Commission is submitting to the Council a recommendation for a Council
   recommendation to be addressed to Germany with a view to bringing an end to the situation
   of an excessive government deficit, according to Treaty Article 104.7.
    EN                                           2                                RESTRICTED      EN
                                         RESTREINT UE
 ---pagebreak---                                        RESTREINTUE
                                                                           document
                                      Recommendation for a          a ete declasse
                                                                             15. 11. 2006
                                     COUNCIL DECISION
                                                                    LE:
on the existence of an excessive deficit in Germany - Application of Article 104
                          Treaty establishing the European Community
THE COUNCIL-OF THE EUROPEAN UNION
Having regard-to the Treaty establishing the European Community, and in particular Article
104(6) thereof,
Having regard to the recommendation from the Commission under article 104(6) of the
Treaty,
Having regard to the observations made by Germany,
Whereas:
(1)      In stage three of Economic and Monetary Union (EMU), according to Article 104 of
         the Treaty Member States shall avoid excessive government deficits.
(2)      The Stability and Growth Pact is based on the objective of sound government finances
         as a means of strengthening the conditions for price stability and for strong sustainable
         growth conducive to employment creation.
 (3)     The Amsterdam Resolution of the European Council on the Stability and Growth Pact
          of 17 June 1997 solemnly invites all parties, namely the Member States, the Council
          and the Commission to implement the Treaty and the Stability and Growth pact in a
          strict an timely manner.
 (4)      The excessive deficit procedure under article 104 provides for a decision on the
          existence of an excessive deficit. The Protocol on the excessive deficit procedure
          annexed to the Treaty sets out further provisions relating to the implementation of the
          excessive deficit procedure. Council Regulation (EC) 3-605/93', as last amended by
          Commission Regulation (EC) 351/20022 lays down detailed rules and definitions for
          the application of the provision of the said Protocol.
  (5)     Article 104(5) of the Treaty requires the Commission to address an opinion to the
          Council if the Commission considers that an excessive deficit in a Member State exists
          or may occur. The Commission has addressed such an opinion on Germany to the
          Council on 8 January 2003. According to this opinion:
   OJ No L332, 31.12.1993, p.7.
    OJ No L 055, 26.02.2002 p. 23.
   EN                                              3                                RESTRICTED E N
                                        RESTREINT HE
 ---pagebreak---                                         MESTREINT UE
           Following the publication of its own Autumn forecast on 13 November 2002 which
           showed a government deficit of 3.8% of GDP in 2002 f S G e ™ the
           Comm^on m accordance with Article 104(3) of the Treaty, prepLd ^ ^ e r
                                                                                ember
           2002 a report on Germany which takes account of the relevanl factors;
                                          104(4) 0f the T T
           rnrm^T 7^ ^                                       ^ * * Economic and Financial
           Committee has formulated an opinion on the report of the Commission;
           Gemany has submitted an updated Stability Programme in accordance with Article 3
           of Council Regulatiorr(EC) No. 1466/97, whiclhad been a d o p S b y t e ^ e t a l
           government on 18 December 2002. According to the update, the govZmenfdefid
           m 2002 amounted to 3 %% of GDP.                                                 vemment aeticit
          The Commission considers that there exists an excessive -dcficiUn, Germany;
  (6)    icicle 104(6) of the Treaty lay* down that the Coimcil should consider anv
         observati^s which the Member State concerned may wish to m T E ^ S S ^
         decides after an overall assessment whether an excessive deficit exists;
 (7)     The overall assessment leads to the following conclusions: in the late 1990s when
                                            8 eCOn0miC                             in
         w
         wasSeT^i&th            T^f™
             linnted, with the general                  V™*-
                                        government deficit remaining*»**» at around      ^~Iti
                                                                                1 >/2% of GDPn
         Thus, here had been little budgetary leeway to accomnLate for thetffec s 5 a
        cyclical sow do wn or for any unexpected revenue shortfalls Sm a                           toTJrl
        7GWZ^2001-.fiFrO-a              l0W
                                            <*M * ^ P in 2000, the deficit rose"                       Z
        of GDP m 2002 significantly exceeding the reference value of 3% m that vear W h ^
        general economic conditions have weakened m Germany as e sewhL L o v e r T n
        budgetary expenditure and the shortfall in revenue can only partial be e x n W d b v
        thetd o S s ^r r i' 8overnirdebt is projected *L ^n^t %
                                       eXCeedmg        Sli8htly
        of 60% of GDP                            ' ^ ^          ' * * r e s P e c t i v e -f-ence value
 HAS ADOPTED THIS DECISION:
                                            Article 1
From an overall assessment itfollow*that an excessive deficit exists in Germany.
                                            Article 2
This decision is addressed to the Federal Republic of Gemiany.
Done at Brussels, 21 January 2003.
                                                           Ce document
For the Council                                            a ete declasse
                                                                     15. 11. 2006
                                                           LE:
EN
                                   RESTRAINT UE                                          RESTRICTED        EN


title: RECOMMENDATION FOR A COUNCIL DECISION on the stand to be adopted by the Community at the international negotiations on the amendment of certain provisions of the Arrangement on Guidelines for Officially Supported Export Credits (submitted to the Council by the Commission)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (84) 584
Vol. 1984/0226
 ---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---                                                                                C0M(84) 584 f i n a l
       COMMISSION                                                                Brussels, 25 October 1984
          OF THE
EUROPEAN COMMUNITIES                                                             FOR OFFICIAL USE ONLY
    G en eral S ecretariat
                                              RECOMMENDATION FOR A
                                                COUNCIL DECISION
             on the stand t o be adopted by the Community at the i n t e r n a t i o n a l
                   n e g o tia tio n s on the amendment of c e r t a i n p ro v is io n s of the
             Arrangement on Guidelines for O f f i c i a l l y Supported Export Credits
                           (submitted to the Council by the Commission)
C0MC84) 584 f i n a l
 ---pagebreak---                                       EXPLANATORY MEMORANDUM
 BACKGROUND
 1. At the OECD M i n i s t e r i a l meeting of 17-18 May 1984, a wide-ranging
      debate took place on the problem of aid and t r a d e - r e l a t e d concessional
       fina nc e. The r e s u l t s of these d is cu s s io n s are summarised in paragraph 22
      of the o f f i c i a l communiqué of the meeting :
        Aid and Trade Related Concessional Finance
  "  M inist er s affirmed t h e i r commitment to avoid any de j u r e and de fa c to
      financing p r a c t i c e s which give r i s e to t r a d e d i s t o r t i o n s and to
      d iv e r s io n of aid flows from development o b j e c t i v e s and to apply
      f u l l y the guiding p r i n c i p l e s they have agreed upon. They enjoined
      the competent bodies of the Organisation to take prompt a ction
      to improve e x i s t i n g arrangements so as t o strengthen transparency
     and d i s c i p l i n e in t h i s area by a l l a p p r o p r ia te means. Differing
     views were expressed with re spec t to the d e s i r a b i l i t y of including
     increas es in e s t a b l i s h e d minimum grant elements in such a c t i o n .
     They requested these bodies to repo rt on progress made toward
     these ends by the next M i n i s t e r i a l Council” .
2. The terms of the M i n i s t e r i a l d e c l a r a t i o n make i t incumbent on a l l
     OECD p a r t i e s to engage in a s er ious e x e r c is e of r e f l e c t i o n on
     methods of improving both transparency and d i s c i p l i n e in the f i e l d
     of Aid and Trade Related Concessional Finance. As one of the main
    pr oviders        of t h i s type of finance, i t is e s s e n t i a l t h a t the
     Community plays an a c t i v e and leading ro le in t h i s proc es s.
ANALYSIS OF THE SITUATION
3. The d i f f i c u l t i e s of fin ding common guidelines and methods to monitor
    t i e d aid c r e d i t s , a s s o c ia t e d financing and other p r a c t i c e s encompassed
    within the broad framework of the term "aid and tr a d e r e l a t e d
    concessional finan ce" have                   a r i s e n because of c o u n t r i e s ' d i f f e r e n t
    percep tions of the extent of the underlying problem. Indeed i t i s the
 ---pagebreak---         |
                                              -   2   -
    dual a i d - t r a d e func tions of such f i n a n c i a l f a c i l i t i e s t h a t makes
    the issu e so d i f f i c u l t to t r e a t .
4. However, i r r e s p e c t i v e of the p a r t i c u l a r p o s i t i o n s defended by d i f f e r e n t
    OECD Member S t a t e s , i t cannot be denied t h a t , even allowing for
    notable y e a r - t o - y e a r f l u c t u a t i o n s , the a bsolute amount of re sou rces
    devoted to concessional finan cing i s s i g n i f i c a n t .                 Furthermore
    the DAC has recently reported that the pressure for increased
    Associated Financing (combination of tied aid and export credits )
    seems to be mounting.
5. Aside from the question of the a c t u a l volume of resources earmarked
    for t i e d aid c r e d i t s and a ss o c ia t e d fin a n c in g , i t i s important
    to recognise a ls o t h a t the p o t e n t i a l volume               of such finan cing
    f a c i l i t i e s has increased following the s e t t i n g - u p of new programmes
    by the USA,Canada and Sweden, c ountrie s which have t r a d i t i o n a l l y
    absta ined or r e f r a in e d from o f f e r i n g such f a c i l i t i e s .
6. Furthermore, the growth in t i e d aid c r e d i t f a c i l i t i e s may compound
    the d i f f i c u l t i e s experienced by some e xport ers in s e l l i n g to c e r t a i n
    developing country markets on anything other than concessional terms
    (" s p o ile d markets "). Indeed i t has been reported t h a t on some occasions
    o f f e r s unsupported by concessional financing have                             not even been
    considered by the purchasing country.
  7. F in a lly and perhaps most importantly of a l l , i t i s c l e a r t h a t a
       combination of the tre nds mentioned above cannot but weaken
       the impact of the minimum g u i d e l i n e s of the Consensus on o f f i c i a l l y
       supported export c r e d i t s . This development i s a l l the more r e g r e t t a b l e
       given the great e f f o r t s made by a l l P a r t i c i p a n t s to s t a b i l i s e
       the export c r e d i t Consensus in October 1983.
 ---pagebreak---                                             - 3 -
 POSSIBLE APPROACHES
 8.     The above d e s c r i p t i o n of e x i s t i n g tre nds in the f i e l d of aid and
      t r a d e - r e l a t e d concessional finance r e i n f o r c e s the concerns expressed
      by M inister s t h a t some a ction should be taken in t h i s f i e l d . Two
      p o s s ib le approaches appear to be p o s s ib le :
       (a) The immediate in tr o d u c ti o n of wholesale a c r o s s - th e - b o a r d
              measures aimed a t both t i g h t e n i n g d i s c i p l i n e shar ply
              and inc re as ing transparency
      (b) A s t e p - b y - s t e p approach beginning with improvements in
              transpa ren cy.
9. The following suggestions have been made by those c o u n tr ie s in
    favour of the approach o u tlin e d in (a) above :
    - a phase-out of t i e d aid c r e d i t s in the short-medium term;
    - a s u b s t a n t i a l increas e in the minimum grant element (degree
        of c o n c e s s io n a lit y ) of t i e d aid c r e d i t s ;
    - a p r o h i b i t i o n of t i e d aid c r e d i t s to c e r t a i n " r i c h e r " developing
        c o u n tr ie s and in c e r t a i n i n d u s t r i a l s e c t o r s (high technology
        a r e a s , i n d u s t r i e s in oversupply);
    - a ban on t i e d aid c r e d i t s in the form of l i n e s of c r e d i t
    Under t h i s approach the problem of undermatching would be
    d e a l t with as p a r t of a comprehensive package of measures
    to improve d i s c i p l i n e .
 ---pagebreak---                                               - 4 -
10. An a l t e r n a t i v e method of proceeding                would     be to begin
       by addressing the problem of transparency before attempting
       to reach a            consensus on measures to improve d i s c i p l i n e .
       In the view of the Commission t h i s approach has a number of
      d i s t i n c t advantages since improvements in tra nspar ency w i l l
      enable P a r t i c i p a n t s to b e t t e r a p p r e c ia te the s c a le of the
       t i e d aid c r e d i t s    issue     as well as p e rm itt in g          further
       r e f l e c t i o n to be given           to the e f f i c a c y of d i f f e r e n t
      measures to improve d i s c i p l i n e .
       Such an approach would seem j u s t i f i e d a l s o by the f a c t t h a t the Ministers
       themselves could not agree on s p e c i f i c measures to be taken to
       strengthen d i s c i p l i n e , notably with re spect to the d e s i r a b i l i t y
       of incr easing the minimum c o n c e s s io n a lit y              of t i e d aid c r e d i t s .
 COMMISSION PROPOSALS
 ( i ) D e finition of t i e d aid c r e d i t s
11. In the view of the Commission three e s s e n t i a l measures must be
      undertaken in order to improve transparency . In the f i r s t
      place the d e f i n i t i o n of        t i e d aid c r e d i t s must be enlarged
      to cover a l l           de j u r e and      de f a c t o aid and t r a d e - r e l a t e d
       concessional financing p r a c t i c e s o f f er e d by P a r t i c i p a n t s to the
      OECD Consensus. Such a d e f i n i t i o n               should in c o rp o ra te a l l
      " as s oci ated financing" t r a n s a c t i o n s as defined by the DAC, as
      well as pre-mixed c r e d i t s of the Swedish and Austrian type,
      as well as p r a c t i c e s by which development a s s i s t a n c e i s granted
      for one por tion of a p r o j e c t and export c r e d i t s f o r another
      without any formal linkage. In the view of the Commission, f u l l
      transparency must be seen t o be a p p lie d .                    ’    Without t h i s -
      preco nd ition d i s c i p l i n e s w i l l f unc tion in only a p a r t i a l manner
      to the detriment of c e r t a i n P a r t i c i p a n t s . In the process of
      drawing up t h i s d e f i n i t i o n        f u l l use should be made of work
      c u r r e n tly being c a r r i e d     out on t h i s questi on within the framework
      of the 'DAC.
      In a ddition to making improvements in t h i s a r e a , the Commission
      believes'-'that the Community should attempt to a r r i v e                            a t an
      agreement with our Partner s on a common method of c a l c u l a t i n g
      the grant element of t i e d aid c r e d i t s .
 ---pagebreak---                                                           - 5 -
    (iiX        Pç,ior n o t i f i c a t i o n procedures
      12 . The enlargement                    of the d e f i n i t i o n of t i e d aid c r e d i t s should be
             accompanied             by measures to improve tra nspar ency through the
             p r i o r n o t i f i c a t i o n procedures of the Consensus. In t h i s regard
             i t i s worth r e c a l l i n g t h a t a t presen t only those t i e d aid
             c r e d i t s with a gra nt element of 25 % or l e s s a re s u b jec t to
             the p r i o r n o t i f i c a t i o n procedures. In 1983, in f a c t , o n l y
             about a h a l f of a l l t i e d aid c r e d i t s were covered by the p r i o r
             n o t i f i c a t i o n system. The other h a l f , a l l containing grant
              elements of between 25 and 50 %, and including a large number
              of c r e d i t s from c o u n tr ie s such as Austria and Japan, were
              n o t i f i e d only ex post or even not a t a l l . For thes e reasons
              the Commission b e lie v e s i t e s s e n t i a l t o widen the threshold
              of the p r i o r n o t i f i c a t i o n procedures. In a d d i t i o n , in order
              to give other OECD c ountrie s s u f f i c i e n t                            time t o react ,
               the Commission b e lie v es t h e r e ar e grounds f o r extending the duration
             . of the prior notification period beyond the c urre nt l im i t of 10 days.
Cii i U '· Fa ce- to-face c o n s u lt a ti o n s                        ---------- ---------- ------------ -----------------------
  13 . The t h i r d           element to improve transpar enc y /should be the
          in tr o d u c ti o n of ' f a c e - t o - f a c e con su ltatio n s, f o r ___
          important c o n t r a c t s . The Community i t s e l f pift forward t h i s
          idea in i t s c o n t r ib u ti o n to the 7th review o,f t h e functioning
          of the Consensus when i t s t a t e d t h a t
                                                 . . " g r e a t e r attempts shouid be made
                                                        to a r r i v e a t a common a t t i t u d e on
                                                        c re d i^ te rm s for a p a rtic u la r transaction",
           and suggested a l s o t h a t th e r e may be cases where
                                           . . . " P a r t i c i p a n t s should have g r e a t e r freedom
                                                       to c a l l f o r f a c e - t o - f a c e c o n s u lt a ti o n s
                                                      in d i f f i c u l t c a s e s . "
     14. The Community's i n i t i a t i v e was supported by o th e r OECD c o u n t r i e s ,
           and in April 1984 a l l P a r t i c i p a n t s " f ir m ly undertook"
                      ^                    . . . " t o consider favourably f a c e - t o - f a c e
                                                     c o n s u l t a t i o n s i f a P a r t i c i p a n t so
                                                     re quest s in the case of important
                                                     transactions"
 ---pagebreak---                                                            -  6 -
   15. Following the OECD M i n i s t e r i a l meeting and in the l i g h t of
           P a r t i c i p a n t s ' d is c u s s io n s in April 1984, Mr.Wallen, Chairman
          of Consensus P a r t i c i p a n t s , proposed a d r a f t t e x t of a new
           f a c e - t o - f a c e c o n s u lt a ti o n procedure aimed a t encouraging
          the development of common a t t i t u d e s f o r important p r o j e c t s ,
          and improving tr anspar en cy, p a r t i c u l a r l y with re spe ct to t i e d
          aid c r e d i t s . A r e l a t e d aim was the need to r e - e s t a b l i s h mutual
           confidence amongst P a r t i c i p a n t s which had been damaged by the
          malfunctioning of e x i s t i n g procedures in a number of cases .
          In response to the Chairman's i n i t i a t i v e the Community in d ic a te d
          t h a t wh ilst approving the o b j e c t i v e s underlying the proposal :
          i t had a number of t e c h n ic a l questi on s r e l a t e d t o th e p r a c t i c a l
          implementation of the procedure. Other P a r t i c i p a n t s , notably
          Canada, A u s t r a lia , New Zealand and the US a l s o r a is e d a
          number of t e c h n ic a l p o i n t s .
 16. In the view                  of the Commission               p o in ts of a t e c h n i c a l n a tu re should
       not be allowed to obscure the o b j e c t i v e s underlying                                    ;
       f a c e - t o - f a c e c o n s u lt a ti o n s which a re f u l l y in
       conformity with OECD M i n i s t e r i a l d i r e c t i v e s t o s tre n g th e n t r a n s
       parency "by a l l a p p r o p r ia te means."                       For t h i s reason the Commission
       b e lie v e s it"             e s s e n t i a l t h a t the Council makes a firm
       p o l i t i c a l commitment to the o b j e c t i v e s and p r i n c i p l e s              of such
       c o n su lt a ti o n s           which wi l l improve e x i s t i n g arrangements in
       the framework of the Consensus and                               the OECD Exchange of
       Information System.
  CONCLUSION
17. In the l ig h t of these c o n sid e r a tio n s the Commission co nside rs the
      implementation of the above propos als t o be an important
     s tep in meeting M i n i s t e r i a l d i r e c t i v e s and in overcoming c urrent
      l i m i t a t i o n s in e x i s t i n g Consensus procedures. Consequently,
     i t i s recommended t h a t the Council a u t h o r i s e s th e Commission
     t o open n e g o tia tio n s on the t h r e e elements h i g h lig h t e d above.
 ---pagebreak---                                                                         NOT FOR PUBLICATION
                         RECOMMENDATION FOR A
                         COUNCIL      DECISION
 on the stand to be adopted by the Community a t the i n t e r n a t i o n a l
 n e g o t ia tio n s on the amendment of c e r t a i n p r o vis ions of the
 Arrangement on Guidelines for O f f i c i a l l y Supported Export Credits
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty e s t a b l i s h i n g the European Economic
Community, and in p a r t i c u l a r A r t i c l e 113 t h e r e o f ,             ✓ '
Having regard to the Recommendation from the Commission,
 ---pagebreak---                                             -   2  -
   Whereas i t is in the Community's i n t e r e s t t h a t the Arrangement on
   Guidelines for O f f i c i a l l y Supported Export Credits should continue
   to play a c e n t r a l ro le in e lim ina ting wasteful export c r e d i t
   and t i e d a id c r e d i t competition and reducing s u b s id ie s ;
   Whereas i t is necessary to take prompt a c t i o n t o improve e x i s t i n g
  arrangements so as to strengthen                        transparency   and d i s c i p l i n e
   in the area of t i e d aid c r e d i t s ;
   Whereas i t is necessary to take such measures in order to ensure
  th a t the Arrangement's g u id e lin e s will not be undermined;
               i
  HAS DECIDED AS FOLLOWS
                                          Sole A r t i c l e
                                                                                ✓
                                                                                ✓
  At the i n t e r n a t i o n a l n e g o t ia tio n s on the amendment of the
  Arrangement on Guidelines for O f f i c i a l l y Supported Export
  C r e d its , the Commission s h a l l express the Community p o s i t i o n
            1
  in accordance with the a tta ch e d d i r e c t i v e s .
, I t s h a l l a ct in c o n s u lt a ti o n with the s p e c ia l Committee provided
  for in A r t i c l e 113 of the Tr ea ty, which s h a l l a s s i s t i t in i t s
 task.
                                                                 Done at B r u s se ls , '
                                                                 For the Council
                                                                 The Pres ident
                 »
 ---pagebreak---                                                                                ANNEX
                                          NEGOTIATING DIRECTIVES
 1. DEFINITION OF TIED AID CREDITS
     The d e f i n i t i o n of " t i e d aid c r e d i t s " within the framework of the
     Arrangement s h a l l xover               a l l forms of fin a n c in g , whether     in
     the form of O f f i c i a l Development Assistance (ODA) loans,
     ODA g r a n t s , o th e r o f f i c i a l flows, or a s s o c i a t e d financing
     packages defined in the DAC Guiding P r i n c i p l e s , whereby
     procurement i s de f a c t o or de j u r e t i e d to goods and
     s e r v ic e s from one or a limited number of P a r t i c i p a n t s . In
     t h i s framework attempts s h a l l be made to a r r i v e at a common
     method of c a l c u l a t i n g the grant element of t i e d aid c r e d i t s .
2. PRIOR NOTIFICATION PROCEDURES
    For t i e d aid c r e d i t s , the thre s holds f o r the implementation                of the
    p r i o r n o t i f i c a t i o n procedure in the Arrangement s h a l l be adjust ed
    upwards. In such cases an extension of the peri od bef ore a commitment
    can be issued s h a l l be n e g o tia te d .
3. FACE-TO-FACE CONSULTATIONS
    The adoption of common a t t i t u d e s at an e a r l y stag e on important
   p r o j e c t s s h a l l be encouraged and f a c i l i t a t e d by a l l a p p ro p ria te
   means, including f a c e - t o - f a c e c o n s u lt a ti o n s amongst competing
    Participants.