title: RECOMMENDATION FOR A COUNCIL DECISION on the conclusion of an agreement between the European Economic Community and the Democratic Republic of Somalia 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) 1510
Vol. 1974/0242
 ---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 COMMUN1TIES
                                                        COM(74) 1510 final
                                                        Brussels , 19 September 1974
                             RECOMMENDATION FOR A
                               COUNCIL DECISION
on the conclusion of an agreement between the European Economic Community and the
   Democratic Republic of Somalia for the supply of cereals as food aid
                ( submitted to the Council by the Commission)
COM(74 ) 1510 final
 ---pagebreak---                                                                        ■'ί
                                                                      1 :  '
             1,-;B COUNCIL OF THE EUROPEAN COMMUNITIES,^ ,
      ' " Having- regard to the" Treaty establishing the European Economic Community ,
             and in particular Articles 113 » 114 and 223 , thereof ;
             Having regard to the Recommendation from the Commission ;
            Whereas the European Economic Community has concluded the second Convention
            relating to food aid^
            Whereas the Democratic Republic of Somalia , by its letter of 3.12.1973
            has requested food aid ;                      ^7
       . Whereas in view of the cereal supply situation in Somalia that . country
            should be accorded , by way of gift ,                  5«000 tonnes        of cereals under the
            Community Food Aid Programme for 1 97 3/74 J of which 2.500 tonnes husked rice
            and 2.500 tonnes of soft wheat in the form of 1.655 tonnes of flour of soft
            wheat .                                        ...
            DECIDES :
                                                         Article    1
            On behalf of the European Economic Community an Agreement , the text a ." hereof
            is annexed hereto , shall "be concluded between the European Economic Community
            and the Democratic Republic of Somalia for supply of husked rice and flour of
            soft wheat as food aid .                                                       '
y          : ■ •••., . ' '                     •         Article    2
            The President of ; the Ccmncil is hereby authorized to designate those v;ho
            arp ;ta sign" ~ the Agreement
        ' . '                                   ' •
                                                      and to. confer on them ' '
                                                                                the requisite
                                                                                •
                                                                                powers to
            bind . the • Communi ty .
    5 . :               ν       ι     , ,        ·
   , v l)on<y at Brussels,'
     «
                                          ■, 1
                                                             19
 * * ■     1 v     ' A.   ■ ■ .
■ 1      '       ' ;              , .               •
                                                                                For the Council
• =                                                               •                The Président
               ^O.J. L 219 of 9.8.1974, p.19
 ---pagebreak---                        \
              AGREEîiEUT
BETWEEN THE EUROPEAN ECONOMIC COI-TKUNITY
AND THE DEMOCRATIC REPUBLIC OF SOMALIA ON
THE SUPPLY OF FOOD AID IN THE FORI! OF
CEREALS .
 ---pagebreak---  THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
                                           of the one part .
 THE GOVERNMENT OF THE DEMOCRATIC REPUBLIC OF SOMALIA
                                           of "the other part ,
 HAVE DECIDED to conclude this Agreement and. to this end. hav
 designate   as their plenipotentiaries :
THE COUNCIL OF THE EUROPEAN COMMUNITIES :
THE GOVERUEtRNT OF THE DEMOCRATIC REPUBLIC OF SOMALIA :
V/IIO HAVE AGREED AS FOLLOVJS î
 ---pagebreak---                              ARTICLE   I
 The European Economic Community shall supply by way of gift to the Democratic
 Republic of Somalia (hereafter referred to as "the recipient country ") a
 quantity of     5 . 000 tonnes   of cereals     under the Community 's food aid
 programme in cereals for 1973/74f of which 2.500 tonnes of husked rice and
2.500 tonnes of soft wheat in the form of 1.655 tonnes of flour of soft wheat .
                             ARTICLE   II
Deliveries will be made              FOB in accordance with the details laid
down in the Annex which forms an integral part of the present Agreement
in new jute sacs of a net weight of 50 kg each for the rice and in new cotton
sacs of a net weight of 50 kg each for the flour .
                             ARTICLE   III
The recipient country undertakes to make all necessary arrangements for "the
transport 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 not prejudice the free play of fair
competition . Any problems arising in this connection shall be the subject
of consultations under Article VIII of 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 sale of the product on its
market , the prices normally charged on that market for products of
comparable quality . The proceeds from this sale shall be 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
agreed in advance between the recipient country and the European Economic
Community .
 ---pagebreak---                                  ARTICLE  V
■ The Centr&eting Parties undertake to implement this Agreement in eiueh ft way
  arj "to 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 aid are in addition to and do not replace business
  transactions which might reasonably be expected in the absence of such supplie
  In particular , the recipient country undertakes to import commercially from
  whatever source between 1 July 1974 and 30. June 1975 a minimum quanity of
  27.900 metric tons of soft wheat or its equivalent in flour of soft wheat *
                                 ARTICLE  VI
  The recipient country shall take all steps required to prevent :
  ( i ) the re-export of the product received as aid and also of any products
           and by-products resulting therefrom ;
  ( ii ) the export , commercially or otherwise , within a period of six months
           commencing from the final delivery :     '
           • locally produced soft wheat of the same nature as that received as
              aid or of any products derived therefrom .
           . locally produced rice of the same nature as that received as aid , or
              of any products and by-products resulting therefrom .
                                 ARTICLE   VII
  The recipient country undertakes to inform the European Economic Community
  of how this Agreement is implemented . To this end it shall provide the
  Commission of the European Communities with the following details :
      ( 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 country 's market ; costs of
             insurance and of transport if applicable from the port of unloading
             to the places of destination ;
 ---pagebreak---  ( iii ) On 15 January every year until the special account has been fully
         expended :
         a) Summary of the account ( incomings and outgoings ) to 31 December
             of the previous year 5
         b ) Stage of progress of the project or projects , indicating the
             total resources expended to that stage .
                               ARTICLE  VIII
The Contracting Parties shall at the request of either consult each other
on any questions concerning the implementation of this Agreement .
                               ARTICLE  IX
Tins Agreement is drawn up in duplicate in the Danish , Dutch ,. English ,
French , German and Italian languages , each of these texts having equal force
 ---pagebreak---                              :j
                           : <
                                                                 . AîïîiEX I
                          General provisions
                                Article 1
 Delivery shall be effected and risks shall pass form the European Economic
 Community * hereinafter referred to as the EEC , to the recipient country «...
        _ _ t. ,
 the moment at which the goods are put down at the point of exportation
 named by the Commission of the European Communities at the b6rth specified
 by the recipient country or its agent referred to in Article 3          ur>c<.er the
terms specified .in the following articles . Without prejudice to Articles 8 and
'9 the EEC shall bear all costs up to delivery and the recipient country those
beyond delivery .
                                Article 2
 On delivery a tolerance of 5 % less than the quantity of the product to b-3
 supplied in accordance with article I of the Agreement shall be admissible *
                                Article 3
The EEC shall appoint an agent to implement the provisions of the present
 Annex – or for each consignment - whose name and address it shall make
known to the recipient country immediately following his appointment .
Tke recipient country shall appoint an agent in the port or ports of ship
ment , whose name and address it shall make known 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 Et<C
referred t® jn Article 3 , the Commission qf the European Communities and
 the recipient country shall jointly establish the period during which
delivery must begin *
                 Obligations of the European Economic Community
                                            »
                                Article 5
 Should the EEC not be in a position to carry out delivery on the date and
 ( if applicable ) on the schedule as provided in Article 7 » all costs
arising for the recipient country - for example demurrage void freight
and dead freight - shall be borne by the EEC .             "                     ,
 ---pagebreak--- . ..Tho char^ce and tha arrangements relating to demurrage laid, down in the
    contract between the recipient country and. the carrier must have been
    agreed in advance by the recipient' country and the agent of the EEC .
    The other costs referred, to in the first paragraph shall only be refunded
    by the EEC if they have been paid by the recipient country with the approval
    of the IÏEC .
         /
                                   Article  6
    Should it prove impossible for the EEC to supply all or part of the goods
   on the date and within the time-limits provided for in Article 7 and vithov.t
   prejudice to the provisions of Article 5i a new date and a new time-lirrii't
    shall be agreed between the agents of the EEC and of the recipient country
   for the delivery of all the goods or of the undelivered part thereof .
                      Obligations of the recipient country
                                   Article  7
   After contacting the EEC , the recipient country shall procure one or more
   vessels to transport all the quantities provided for in Article 1 of the
   Agreement , of dimensions corresponding to the normal capacity of the port of
   shipment ; these vessels must be ready for loading on a date falling within
   the period referred to in Article 4 *
   The agent of the recipient country shall inform the EEC of this date .
   irnmedately on learning it , and also that .for commencement of delivery ,
   if possible twenty days in advance and in any case ten days before the date
   for commencement of delivery .
  He shall establish with the agent of the EEC the schedule to which delivery
   shall take place .
                                   Article  8
   Should the recipient country be unable to begin loading on the date provided
   for in Article 7 » paragraph 1 , the agent of the recipient country shall
   inform the agent of the EEC without delay .
 ---pagebreak---                          u
" In this 'event a' new data for tha commencement of delivery and ( if applicable )
  a new schedule could be agreed between the agents of the EEC and of the
  recipient country . The costs arising from this delay shall in all cases
  except force majeure be borne by the recipient country .
  Should the new date provided for in paragraph 2 be more than 30 clear days
  after the date for loading provided for in Article 7i paragraph 1 , the EEC
      /   '
  may dispose of the goods without prejudice to its commitment under Article 1
  of this Agreement .
            ι
                                    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 E?X as soon
  as possible and. no later than fifteen clear days after loading has been
  completed whether it intends to accept or to renounce the balance *
  In the 'former case the provisions , of Article 8 , paragraphs 2 and 3 , shall
  apply to the balance , if delivery has not yet taken place .
  In the? latter case the EEC may consider that it has discharged its coE.Tiitii.ent
  to the 1 recipient country under Article 1 of this Agreement and shall bear
  the coots resulting from such renunciation .
  In any event after the expir^7of an interval of fifteen clear days and in
  the absence of any notice on the part of the recipient country , the renun
  ciation shall be deemed to have taken place *                       *
         M                     _     .,
                                                                »
              . ■                   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 the goods accepted and
 including any comments on the quality of the goods , and send a copy thereof
  to the Commission of the European, Communities *


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

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 1125
Vol. 1973/0202
 ---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---                         TH
                                 H  IH
                                                       COM(73)1125 final
                                                       Brussels . 6 July 1973
                             RECOMMENDATION FOR A
                               COUNCIL DECISION
           on the conclusion of an agreement "between the European
           Economic Community and the Eastern Republic of Uruguay
                  for the supply of common wheat as food aid
                ( submitted to the Council "by the Commission)
COM(73 ) 1125 final
 ---pagebreak---  THE COUNCIL OP THE EUROPEAN COMUIJITIES ,
Having regard to the Treaty establishing the European Economic Community ,
and in particular Articles 113 , H4 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 Good Aid Convention ; whereas that Convention
has been applicable since 1 July 1971 5
Whereas the Eastern Republic of Uruguay , by its letter of 7 Deoember 1972 ,
has requested food aid ;
Whereas in view of the cereal supply situation in the Eastern Republic of
Uruguay that country should be accorded , by way of gift , 10 000 metric tons
of common wheat under the Community Pood Aid Programme for 1972/1973 1
DECIDES :
                                 Article 1
On behalf of the European Economic Community an agreement , the text whereof
is annexed hereto , shall be concluded between the European Economic Community
and the Eastern Republic of Uruguay for the supply of common wheat as food aid .
                                 Article 2
The President of the Council is hereby authorised to designate those 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---                   AGREEMEET
BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AM)
       THE EASTERU REPUBLIC OP URUGUAY
            OH THE SUPPLY OP POOD AID
          UT THE FORM OP COMMON WHEAT
 ---pagebreak---                                   - 1 -
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
                                                      on the one part .
THE GOVERNMENT OP THE EASTERN REPUBLIC OP URUGUAY,
                                                      on the other part ,
HAVE DECIDED to conlude this Agreement and to this end have designated as
their plenipotentiaries ?
THE COUNCIL OP THE EUROPEAN COMMUNITIES :
THE GOVERNMENT OP THE EASTERN REPUBLIC OP URUGUAY
WHO HAVE AGREED AS FOLLOWS :
                                                                       • * •/• ♦
 ---pagebreak---                                     ARTICLE I
As a part of its Food Aid Programme (cereals ) for 1972/1973 » the European Economic
Community shall supply the Eastern Republic of Uruguay , hereinafter referred to
as the "recipient country", with 10 000 metric tons of common wheat .
                                    ARTICLE II   '■
Deliveries will be made in bulk , fob to Community ports .
                                    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 recipient country undertakes to make all necessary arrangements for the
transport and insurance of the product from ports of shipment to places of
destination .
It undertakes to exercise the greatest possible care to ensure that the
tendering arrangements for the transport by sea are not prejudicial to the
free , play of fair competition . Any problems arising in this connection shall
be the subject of consultations under Article IX of the present Agreement .
                                    ARTICLE V
The recipient country undertakes to use the product received as aid for pur
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 . •
 ---pagebreak--- The proceeds from this sale , less the cost of sea transport , insurance and the
normal cost of selling the product on the recipient country ^ market , will
be paid into a special account and allocated to the financing of one or more
development   schemes 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 interna
tional 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             * Ahe absence of such supplies *  •v^.riiea. • r . e
                                  ARTICLE VII
The recipient country shall take any measures required to prevent !
(i ) The re-export of the product received as aid and of products and by-products
     resulting from such supplies j
(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 resulting 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 :
 ---pagebreak---                                      - 4 -
(i )    Mot later than thirty days after the unloading of each cargo * ports'
        and dates of arrival of the vessel | nature , quantity and quality of
        the products unloaded | date on which unloading was completedj
( 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 j
(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 proceding yearj
        (b ) Progress achieved in the project or projects , with an indication
             of the total amount of financing undertaken at that stage .
                                    ARTICLE IX
At the request of either of them , the Contracting Parties shall consult each
other on any questions concerning the implementation of this Agreement .
                                    ARTICLE X
This Agreement is drawn up in duplicate in the Danish , Dutch , English , French ,
German , Italian and Spanish languages , each of these texts being equally authentic .
 ---pagebreak---                             ANNEX TO 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 at which the goods have
"been placed in the ship 's hold at the port of shipment .
The recipient country shall bear all costs subsequent to delivery of the goods ,
including costs of stowage and , where appropriate , of trimming and bagging .
Any demurrage costs or dispatch at the port of shipment shall be a charge on
or for the benefit of the European Economic Community and shall be determined
before tho vessel sails . The rates and detailed arrangements relating thereto
laid down in the contract between the recipient country and the carrier must
have been agreed upon in advance by the recipient country and the authorised
agent of the European Economic Community referred to in Article 9 «
                                      Article 2
The European Economic Community shall notify the recipient country in good
time of the port or ports of shipment , the quantities to be deliverd at each-
port , the period within whioh loading must begin , and the daily loading rate .
The European Economic Community must be prepared to load the goods on the date
resulting from the instructions in Article 8 ,. whereon t,he vessel should be
ready for loading .
                                      Article '4
On delivery of the goods , a loterance of 5 7° less than the quantity to be supplied
in accordance with Article 1 of the Agreement is permitted .
 ---pagebreak---                                   Article 5
Once the goods are on board the vessel , the European Economic Community sha.ll
notify the recipient country of the date of loading , and the quantity and
quality of the goods as recorded on loading.
                                  Article 6
The recipient country shall supply the European Economic Community , within the
period referred to in Article 2 , v:ith .a vessel of dimensions corresponding to
the normal loading potential of the port of shipment .
Should it prove impossible for the vessel to begin loading within the period
referred to in Article 2 and should the recipient country not have notified
the European Economic Community of this fact in writing at the latest by the
date on which the vessel should be ready for loading in accordance with Article 8 ,
the goods shall be at the disposal of the European Economic Community .
Whatever the circumstances , the goods shall be hold at the expense , risk and
peril of the recipient country .
                                  Article 7
Should the recipient country fail to provide a vessel of suitable tonnage or
if the quantity made available for loading on a vessel of suitable tonnage
cannot be put on board in its entirety because of circumstances beyond the
control of the European Economic Community , the balance shall be loaded onto
the next vessel under the conditions laid down in this annex .
In this event , until the date of loading of this balance or until the recipient
country gives notice in writing that it gives up this balance , the goods shall be
held at the expense , risk and peril of the recipient country .
The recipient country must notify the European Economic Community within a period
of a maximum of 30 days from the beginning of loading of the shipment to which
these goods should have belonged , of the date on which loading of this balance
is. due to begin or of its renunciation of this balance .
 ---pagebreak---                                      - 3 -
If this obligation is not respected , the European Economic Community may consider
that it has descharged its commitment -to the recipient country under Article 1
of the Agreement .
                                   Article 8
The recipient country shall name for the European Economic Community the vessel
that is to ship the goods at least 10 clear days prior to the estimated date
of arrival of the vessel in part or , where possible 20 clear days prior to
this date , and shall at the same time indicate how soon after that date the
vessel will be ready for loading .
The recipient country shall insert in the charter party a clause requiring
the captain to inform the European Economic Community at least 72 hours in
advance of the vessel T s estimated data of arrival in port .
                                   Article 9
To implement the provisions of this annex , the Europerji Economic Community
shall appoint an authorised agent , whose name and address shall be made known
in good time to the recipient country .
The recipient country shall nominate a receiving agent in each port of shipment ,
whose name and address shall be made known to the European Economic Community
before the Agreement is implemented .


RECOMMENDATION FOR A COUNCIL DECISION AUTHORIZING THE COMMUNITY TO PARTICIPATE IN THE WORKING OF THE FAO CONFERENCE TO DRAW UP AN INTERNATIONAL CODE OF CONDUCT ON THE DISTRIBUTION AND USE OF PESTICIDES (FAO)


title: RECOMMENDATION FOR A DECISION OF THE COUNCIL concerning the Declaration of Intent by the European Economic Community to approve the 1972 International Agreement on Cocoa#RECOMMENDATION FOR A DECISION OF THE COUNCIL concerning the provisional implementation by the European Economic Community of the 1972 International Agreement on Cocoa (submitted to the Council by the Commission)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 867
Vol. 1973/0161
 ---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 QjF THE EISOÎEAN
                                                           COM(73 ) 867 final
                                                           Brussels , 28 May 1973
                                RECOMMENDATION FOR A
                               DECISION OP THE COUNCIL
    concerning the Declaration of Intent by the European Economic Community
             to approve the 1972 International Agreement on    Cocoa
                                RECOMMENDATION POR A
                               DECISION OP THE COUNCIL
      concerning the provisional implementation by the European Economic
             Community of the 1972 International Agreement on Cocoa
                   ( submitted to the Council by the Commission)
  COM(73) 867 final
 ---pagebreak---                                                                VIII(73)575-E
                    COI NIUNI CATION PROM THE COMMISSION TO THE COUNCIL
Provisional implementation "by the Community of the 1972 International
                      Agreement on Cocoa
       The problem of the implementation by the Community of the 1972
                  ι
international agreement on cocoa ia becoming pressing in view of the
time-limits imposed by the agreement , which heve already been mentioned
in recent Commission Communications to the Council on this subject ( cf «
Communication COIl(73 ) 279 final , under cover of doc . R/594/73 Comer 99
of 6 March 1973 and doc. R/II83/73 ( Comer 201 ) of 9 May 1973 .
      On 30 April 1973 » the date laid down in Article 64 of the Agreement ,
none of the Member States of the Community had as yet ratified or
approved the Agreement , consequently , by 30 June 1973 j the Member States'
of the Community must :
a) give notice , in accordance with Article 65 of the Agreement , undertaking
    to seek ratification or approval of the Agreement ; ( at the time of
    writing , certain Member States have already complied with this
    formality ),
b ) ratify or approve the Agreement , or indicate in accordance with Article
    66 , that they will implement the Agreement when it enter into force ,
    or , if it has already entered into force , on a specified date ( if
    certain Member States are unable for constitutional reasons to
    implement the Agreement on a provisional basis , then they must
    ratify or approve it cn a definitive basis ).
      The Commission is of the opinion that the Community must comply
with these formalities by 30 June 1973 » the Commission in any case had
envisaged in the abovementioned Communication of 6 March 1973 ( cf «
paragraphs 3 and 4 ) that thi3 situation would arise and it is therefore
recommended that the Council adopt the two draft Decisions attached .
The first Decision , comprising a declaration of intent to approve the
Agreement , could be notified immediately upon adoption by the Council .
The second Decision , for the provisional implementation of the Agreement ,
coul^sbe notified later , i-shile awaiting completion of thcceprocedures by the
Member States , but in any event before 30 June 1973 *
 ---pagebreak---                           I                                 VIII(73)575~E
                                                            Annex I
                                H30(»gCTBg.T;Cff FOR A
                            . DECISION OP THE COUNCIL
   concerning the Declaration of Intent "by the European Economic Community
         to approve the 1972 International Agreement on Cocoa
TIIE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard, to the Treaty establishing the European Economic Community ,
Having regard to the recommendation from the Commission ;
Whereas the Council decided on 4 January 1973 that the Community should
adhere to the 1972 International Agreement on Cocoa in accordance with
Article 4 thereof ,
Whereas the said Agreement was signed on behalf of the Community on
15 January 1973 » and whilst awaiting completion of the procedures
necessary for its approval , it is desirable that the Community should
forthwith formally declare its intention to approve the said Agreement ;
HAS ADOPTED THIS DECISION :
                                  Sole Article
1 » The European Economic Community , in accordance with the provision of
Article 65 of the 1972 International Agreement on Cocoa , hereby declares
that it undertakes to seek approval of the said agreement ,
2 » The declaration shall be notified to the Secret aiy-General of the
United Nations Organization before 30 June I973 »
3 * The President cf the Council is hereby authorized to nominate the
person empowered to carry out this notification.
Done at Brussels ,                                     For the Council
                                                        The President
 ---pagebreak---                                                             VIII(T3)575-E
                                                            Armez- il
                                  EEC0I1ÎETMTI0ÎJ FC2 A
                                 DECISION OF THE COUNCIL
    concerning the provisional implementation by the European Economic
           Community of the 1972 International Agreement on Cocoa,
THE COUNCIL OP THE EUROPEAN COIHIUKITIES ,
Having regard to the Treaty establishing the European Economic Community ,
and in particular Article 113 thereof ,
Having regafd to . the recommendation from the Commission ;
Whereas the Council decided on 4 January 1973 that the Community should -
adhere to the 1972 International Agreement on Cocoa in accordance with
Article 4 thereof ,
Whereas the said Agreement wr,s signed on "behalf of the Community on 15
January 1973 t and. whilst awaiting completion of the procedures necessary
for its approval , the Community declared its undertaking , in accordance
with Article 65 of the agreement , that it would seek approval it the
same ,
Whereas it is now desirable that the Community should decide upon the
provisional implementation of this Agreement ,
HAS ADOPTED THIS DECISION :
                                £ole Article
1 . The provisions of tho 1972 International Agreement on Cocoa, the
te::t of which is attached to this Decision , shall bo applicable on a
provisional basis in accordance with Article 66 of the said Agreement ,
when the latter enters into force in accordance with Article 67 * ,
2 » This decision shall be notified to the Secretary–General of the United
Nations Organisation before 30 June 1973®
3 . The President of the Council is hereby authorized to nominate
the person empowered to carry out this notification .
Done at Brussels ,                                  For the Council
                                                     The President


title: Recommendation for a COUNCIL DECISION authorizing the commission to negotiate a framework agreement on trade and economic cooperation with Chile

text:
   COMMISSION OF THE EUROPEAN COMMUNITIES
                                Brussels,
                                COM(95)530 final
               Recommendation for a
               COUNCIL DECISION
 AUTHORIZING THE COMMISSION TO NEGOTIATE
        A FRAMEWORK AGREEMENT ON
TRADE AND ECONOMIC COOPERATION WITH CHILE
           (presented by the Commission)
 ---pagebreak---  ---pagebreak---                    wmmmÊmmÊÈÊËÊÈÊÊmmmmmmmamÊmmmmm
                 RECOMMENDATION FOR A COUNCIL DECISION
                AUTHORIZING THE COMMISSION TO NEGOTIATE
                          A FRAMEWORK AGREEMENT ON
              TRADE AND ECONOMIC COOPERATION WITH CHILE
EXPLANATORY MEMORANDUM
I.      EC-Chile relations are governed by the "third-generation" cooperation framework
agreement signed in December 1990. Developments in Chile, however, have led the EU
to examine the need for closer relations - something which the Chilean authorities
officially requested in July 1994.
In its conclusions of 9 and 10 December 1994, the Essen European Council invited the
Commission to put its ideas on strengthening ties with Chile into concrete form.
In May 1995, the Commission approved a Communication to the Council and Parliament
on closer relations with Chile.
The communication set out four avenues to achieve this.
In June, the Council approved the communication and invited the relevant Council bodies
to start talks on these four options.
On 17 July, the Council asked the Commission to present to it the draft negotiation
directives for a new agreement and expressed its desire to intensify political dialogue by
such means as a consultation mechanism.
H.       The basic text on relations between the EU and the countries of Latin America and
the Caribbean, along with the Commission communication of last May on closer relations
with Chile and the Council conclusions of 17 July 1991 are the starting points for the
attached recommendation on negotiating directives which the Commission is presenting to
the Council.
 III. The new framework agreement with Chile shcuid, in the Commission's view, be an
agreement of an interim and evolving nature, with a view to the eventual establishment of
an EU-Chile association of a political and economic nature. The agreement is part of the
Community's policy on cooperation with the developing countries.
The ultimate move to an association, and in particular the liberalization of trade, should be
considered by the parties in the light of circumstances and the progress made under the
framework cooperation agreement.
The association would not take effect without an agreement reached by the parties in
accordance with their respective procedures. Given the sensitivity of certain products,
particular attention should be paid to the interests of the producers and regions most
seriously affected.
                                                                                t
 ---pagebreak--- In line with the policy adopted by the Community and the Member States, the agreement
would include three references to respect for human rights and democratic principles, in
accordance with the Commission communication COM(95)216, of 23 May 1995,
approved by the Council on 29 May: a reference in the preamble, a clause stipulating that
it is an essential element of the agreement, and a "non-execution" clause.
IV. The framework agreement proposed by the Commission would have the following
structure:
        Preamble and General Principles
        Title ITrade cooperation and preparations for the liberalization of trade
        Title IIEconomic cooperation
        Title mother areas of cooperation
        Title IVMeans
        Title VPolitical dialogue
        Title Vllnstitutional framework
        Final Provisions
There will also be a protocol on mutual assistance between the parties' customs
administrations.
 ---pagebreak--- V.      Trade cooperation and preparations for the liberalization of trade
Chile's economy is very open to the outside world, with low customs protection and close
trade links with the EC, which is still its largest trading partner. The government is
pursuing an active policy of integration into the global economy (known as "open
regionalism") and has expressed an ultimate desire for a free trade association with the EC
and Mercosur.
The negotiating terms for a new agreement with the country should therefore take into
consideration the interregional framework cooperation agreement between the EC and its
Member States and Mercosur and its member countries, which was initialled in
Montevideo on 29 September.
The Commission believes that a political and economic association between the
Community and Chile is in the parties' interest. It nevertheless feels that an intermediate
stage is needed to allow both to establish conditions that will ease the passage to free
trade.
The Commission is therefore proposing that the agreement provide for a range of
 instruments that will, on the one hand, enable the parties to exchange information, seek
 ways of aligning their practice and analyse economic and trade relations and, on the other,
 target cooperation on fields directly affecting the conditions of trade.
 The Commission considers, as does the Council, that the liberalization of trade must cover
 the bulk of trade, while taking account of the sensitivity of certain products and the
 relevant rules of the new WTO.
 To that end, the Commission proposes that trade cooperation be founded on the following
 instruments:
  1. A joint subcommittee made up of officials of the European Commission and Chile
      would be set up to handle trade questions.
      This subcommittee would meet at least once a year for the purpose of exploratory
      talks aimed at defining the future liberalization of trade and bringing into motion the
      interim machinery for facilitating trade and preventing unfair trading practices.
      This dialogue would cover all areas affecting trade in goods and services between the
      parties, culminating in the presentation, at the annual meeting of the joint committee,
      of specific recommendations for thefritureliberalization of trade.
      The subcommittee would be able to set up whatever working parties were necessary
      to facilitate its work.
      One such working party (the monitoring group) would monitor trade developments,
      coordinate the activities of the other working parties, provide back-up for the joint
      subcommittee and, lastly, serve as a permanent trade liaison body between Chile and
      the Union. This framework for dialogue would be backed up by such studies, analyses
      and exchanges of information as proved necessary.
 ---pagebreak--- 2. Cooperation in the mutual interest, notably on issues directly affecting trade, would
     help bring the two regions' economies closer together:
            cooperation on standardization with a view to possible mutual recognition
            agreements;
            customs cooperation;
            statistical cooperation;
            cooperation on intellectual and industrial property issues;
            cooperation on competition;
            cooperation on reciprocal liberalization of public procurement and regulated
            sectors.
VI. Economic cooperation
The current EC-Chile framework agreement has enabled economic cooperation to
develop to the satisfaction of both sides. The EC is one of Chile's top trade and investment
partners and has a major stake in inter-business cooperation in the country.
The need for changes in Chile's productive structure to smooth its integration into the
world economy and create the right conditions for an association with the EC mean that
economic cooperation must change tack to make it easier:
-   for both sides to foster a stable and attractive climate for two-way investment;
-   to boost cooperation between EU and Chilean business, particularly in the field of
    technology;
-   to strengthen joint scientific and technological research activities, focusing on applied
    research, development and advanced training;
-   to extend economic cooperation mechanisms more fully to the service sector arid
    SMEs;
-   to develop specific forms of economically valuable cooperation in the energy,
    transport, telecommunications and environment sectors.
Oiven the degree of liberalization achieved by Chile in some areas, the parties undertake
to make a special effort to expand and build up cooperation in services, investment and
cooperation on science and technology.
VII.      Other areas of cooperation
A. Interinstitutional cooperation
-   Chile's public administration faces a number of problems modernizing its productive
    structure and making it competitive. The JELPs experience could be of great help in this
    respect, which is why the framework agreement will bolster institutional aid
    programmes, focusing on projects to £arisfer experience and train administrative staff.
   Better institutional cooperation iJ?|J|irticu!ariy important in facilitating Chilean.
     •  .->;"       .        "             *W*\'     .              ?*' * . * * .          *TV '&*
    relations with Mercosur (the negotiating directives LÙÏ Û*W\IUU~I cgiuûâl fiamcwuiiv
    cooperation agreement with Mercosur included proposals for a heading on
    cooperation for closer integration, designed in part to draw the national laws of
 ---pagebreak---     Mercosur countries nearer together and help the various processes in train for
    institutional integration).
B. Other areas
-   The need to strengthen already close links between Chile and all EU countries in order
    to create an association also requires closer cooperation on cultural, educational and
    training matters and consumer protection. Joint efforts to combat drugs will also be
    included.
Vm.      Means
The Commission considers that financial cooperation with Chile falls within the scope of
Council Regulation (EEC) No 443/92 on financial and technical assistance to, and
economic cooperation with, the developing countries in Asia and Latin America.
Chile may likewise be eligible for funding from budgets for cooperation in some of the
specific areas envisaged e.g. science, technology, the environment and energy.
Chile will also be eligible for loans from the European Investment Bank.
The Commission believes that a modest increase will have to be made to the
appropriations in Part A of the Community budget to cover the participation of staff from
Community institutions in individual technical assistance operations in Chile.
IX. Political dialogue
Political dialogue will focus primarily on bilateral and regional aspects of relations. Given
their many mutual interests and the number of issues on which their views coincide, the
dialogue should help Chile and the Community to consult each other more closely on a
substantial range of multilateral issues and to coordinate their respective positions in a
variety of multilateral institutions.
This consultation will take the form of regular meetings and exchanges of views between
policy-makers, officials and parliamentarians. The dialogue should preferably be
conducted jointly with other partners in the region, coinciding wherever possible with
meetings to further political dialogue already established with them.
X. The institutional framework
The Commission believes that the agreement should be supervised by a body responsible
for its overall monitoring and implementation.
That body would be composed of representatives of the Council of the European Union
and the Commission, and of Chile.
It would be assisted in its work by a joint committee on cooperation. A trade
subcommittee would see to it that the agreement's trade objectives were met.
 ---pagebreak--- X. Conclusion
The Commission believes that the framework agreement between the EC and Chile
(signed in December 1990) has achieved all its goals, providing the country with valuable
support on its return to democracy and laying the foundations of mutually beneficial
economic cooperation. In light of this and the interest shown by Chile in the swift
conclusion of a commercial and economic association agreement with the EU, the
Commission feels a newframeworkagreement is needed to achieve thefinalobjective of a
political and economic association between the two sides.
The Commission therefore recommends that the Council authorize it to negotiate a
framework cooperation agreement aimed ultimately at establishing an economic and
political association with Chile, in accordance with the directives in Annex I and in
consultation with a committee appointed specially by the Council to assist it in this task.
                                                                                ft
                                                                                >
 ---pagebreak---                                                                                ANNEX I
                         NEGOTIATING DIRECTIVES FOR A
   FRAMEWORK COOPERATION AGREEMENT LEADING ULTIMATELY
                 TO A POLITICAL AND ECONOMIC ASSOCIATION
                  BETWEEN THE EUROPEAN UNION AND CHILE
1.    CHARACTER AND SCOPE
    1. The aim of the negotiations is the conclusion of a framework cooperation
    agreement with Chile to replace the existing Framework Cooperation Agreement
    between the European Economic Community and the Republic of Chile. 1 The
    agreement is intended to strengthen existing relations between the parties on a basis of
    reciprocity and shared interests with a view to paving the way for the subsequent
    establishment of a political and economic association.
2. Duration: The parties will decide when to proceed with an association in the light of
    the progress made under the agreement and that of Latin American integration and
    relations with the EC.
3.  The agreement will include a clause maintaining in force existing bilateral agreements
    between the Community and Chile, in the event of Chile's joining Mercosur, as long as
    they do not run counter to the recently-initialled EC-Mercosur interregional
    framework agreement.
    4. A clause will be included stating that adherence to democratic principles and
    respect for human rights, which inform both Chile's and the Community's internal and
    international policies, are the cornerstones of relations between the parties, form the
    basis of all the agreement's provisions and are one of its essential elements.2
H. STRUCTURE
The future agreement is of the "framework cooperation" type and will contain provisions
covering trade cooperation, including gradual and reciprocal trade liberalization in line
with the relevant WTO rules. It will also cover economic and other matters in which
cooperation is mutually advantageous.
The ultimate goal of the economic and other cooperation activities will be to prepare the
Chilean economy for closer ties with the EU, paving the way for a political and economic
association between the EC and Chile.
IThe current Agreement was signed on 12 December 1990 and entered into force on
    1 May 1991 (OJL 79, 26.3.1991, p.l).
2In accordance with the policy set out in Council Document 7255/95.
                                                                                9
 ---pagebreak--- HI. CONTENTS
The preamble will refer to the following:
    the long-standing ties between the EC and Chile and the new impetus given them by
    the 1990 Framework Agreement;
    the importance attached by the two parties to respect for human rights, democratic
    principles and the market economy, which are the cornerstones of the agreement;
    the importance attached by the parties to the values and principles set out in the final
    declaration of March's Copenhagen Social Summit;
    the desire of the parties for sustainable development, taking account of the need to
    conserve and protect the environment;
    the mutual interest in the establishment of contractual links with a view to expanding
    cooperation, developing and diversifying trade and boosting investment flows;
    the will of the parties ultimately to establish a political and economic EU-Chile
    association. This will focus on closer political cooperation, including a consultation
    procedure. It will also aim at gradual, reciprocal liberalization of all trade, taking
    account of the sensitivity of certain products and the relevant rules of the WTO.
    Investment promotion and closer cooperation will also be mentioned;
    the parties' commitment to establishing political dialogue including consultation
    mechanisms with a view to developing their relationship in the long term.
 ---pagebreak---                                             TITLE I
TRADE COOPERATION AND PREPARATIONS FOR THE LIBERALIZATION
                                           OF TRADE
Objective: strengthening trade cooperation between the two parties to promote the
growth and diversification of trade and pave the way for trade liberalization, so as to
provide favourable conditions for the establishment, in due course, of a political and
economic association.
Chapter I: Trade cooperation
There will be systematic cooperation through the establishment of a regular economic and
trade dialogue conducted by a joint subcommittee, which will pursue the agreement's
trade objectives and prepare the move, in due course, to trade liberalization.
The dialogue will involve meetings between senior officials from the European
Commission and Chile at least once a year. It will result in annual recommendations being
put to the joint committee with a view to future trade liberalization.
The subcommittee will be assisted in its work by working parties meeting as necessary.
Cooperation will be backed by the requisite studies and technical reports.
The main fields of cooperation will be:
    market access and trade liberalization: studies and forecasts on the practicalities of
    liberalizing trade between the parties (timetable and structure of negotiations,
    transition periods, etc.)
    tariff and non-tariff barriers, quantitative restrictions and measures having equivalent
     effect: analysis, studies and administration, including quotas, foreign trade rules, anti-
     dumping duties, safeguard clauses, technical standards, plant health legislation, mutual
     recognition of certification systems, etc.;
     tariffs applicable to third countries:
     compatibility with GATT/WTO rules on trade liberalization;
     identification of sensitive products by the parties;
     identification of priority products by the parties;
     services: cooperation and exchanges of information, with particular reference to
     transport, insurance and financial services;
     competition: monitoring of restrictive practices;
     identification of possible tariff reductions.
One working party (the monitoring group) will coordinate the various activities and
continuously monitor trends in trade between the parties. It will provide a permanent link
between the Community and Chile for all trade issues.
Chile could be involved in moves towards trade liberalization under the interregional
framework Agreement between the EC and its Member States and Mercosur and its
member countries, initialled at Montevideo on 29 September, and benefit from the range
                                                                                A*>
 ---pagebreak--- of cooperation programmes proposed in the Mercosur Agreement subject to the parties'
agreement, under arrangements to befixedat a later date.
Chapter H: Cooperation on technical standards and standardization with a view to
concluding mutual recognition agreements
Cooperation between the Community and Chile will seek to promote efforts to provide
the necessary conditions for uninterrupted trade in terms of technical standards,
standardization, health regulations, consumer protection, employee safety and
environmental protection. It will also be geared to bringing the EC and Chile closer
together by means of the negotiation in the longer term of mutual recognition agreements
and agreements on the protection and mutual recognition of designation of origin and
geographical ascriptions.
In practice, cooperation will:
     encourage any measure aimed at bridging the quality gap between the Community and
     Chile and generally improving product and business standards;
     provide organizational support to help Chile develop a quality control policy.
Chapter HI: Customs cooperation
Customs cooperation will seek to consolidate and improve the legal framework for EC-
Chile trade.
This cooperation will result in:
     exchanges of information;
     improved working methods;
     the simplification of customs clearance formalities for goods;
     the alignment of laws in thefieldof customs and indirect taxation;
     schemes to facilitate exchanges of officials and senior personnel from customs and tax
     departments;
     the development of new training techniques and coordination of activities in the
     relevant international organizations;
     technical assistance, where appropriate.
Without prejudice to other forms of cooperation provided for under this agreement,
notably cooperation against drug abuse, mutual assistance between the parties' customs
authorities will be governed by a protocol annexed to this agreement.
Chapter IV: Cooperation in the field of statistics
The main objective here will be to align methods, thus enabling the parties to use each
other's statistics on trade in goods and services and, more generally, any field covered by
this agreement for which statistics can be drawn up.
                                                                                /}/>
 ---pagebreak--- Chapter V: Cooperation in the field of intellectual and industrial property
Cooperation in this field will seek to avoid distortions of trade between the two parties
and promote investments, technology transfer, trade, cultural and artistic activities and
associated economic activities.
To this end, the parties will offer a level of protection of intellectual and industrial
property equivalent to the most exacting international standards. Consultations will be
held to avoid trade conflicts in connection with the protection of industrial property. The
two parties will also consider technical cooperation in this field.
Chapter VI: Cooperation on public procurement
The parties will cooperate on opening up public procurement on a reciprocal basis, and
consider establishing technical cooperation in this field. Such cooperation will mainly
involve annual consultations, possibly set up by the working parties created by the joint
subcommittee on trade cooperation.
                                                                                n
 ---pagebreak---                                          TITLE H
                              ECONOMIC COOPERATION
Articles 2 to 6 of the 1990 Framework Cooperation Agreement with Chile provided for
various forms of economic cooperation which have since helped build closer economic
ties between the parties.
Economic cooperation between Chile and the Community is intended to benefit both
parties, strengthen relations between them, cultivate synergies in their economies, create
new opportunities and increase their economic competitiveness.
Priority will be given to areas of cooperation that generate economic and social links and
networks between businesses (trade, investment, technology, information and
communications systems, etc.).
New areas of cooperation will include the definition and alignment of macroeconomic and
microeconomic policies: budgetary policy, the balance of payments, monetary and fiscal
policy and industrial/service sector policy. Studies will be undertaken to ensure regular
monitoring of developments in the parties' macroeconomic policies and balances and the
efficient operation of the market.
Given the degree of liberalization achieved by Chile in some areas, the parties undertake
to make a special effort to expand and build up cooperation in services, investment and
cooperation on science and technology.
Conservation of the environment and ecological balances will be a consideration in the
implementation of the various areas of economic cooperation that affect it.
The parties will recognize the importance of social development, which must accompany
economic progress, and will pay particular attention to the fundamental rights of
employees, in the first instance by promoting the relevant ILO Conventions.
Chapter VH: Industrial cooperation and services
The aim is to support and promote industrial policy measures enabling the contracting
parties to develop a dynamic approach to the management of cooperation on industry and
services with a view to creating a favourable environment for their mutual interests, and in
particular:
     identifying and removing obstacles to industrial cooperation between the two parties
     by promoting compliance with competition laws and an awareness of market
     requirements reflecting the need for participation by, and cooperation between,
     economic operators;
     ensuring that the cooperation instruments available to the parties are used jointly and
     in a coordinated fashion;
     ensuring a coherent package of activities to promote cooperation between the parties'
     businesses;
     supporting common industrial policy goals with the aim of promoting the
     modernization, diversification and restructuring of industries - including those
     producing raw materials - through appropriate action (training, networks, research,
                                                                                3
 ---pagebreak---     meetings between businessmen in a range of sectors including tourism, energy,
    transport, telecommunications, etc.);
    fostering cooperation between Chilean and EC economic operators, especially small
    and medium-sized enterprises (joint ventures, information networks, trade bureaux,
    know-how transfers, subcontracting, applied research, licences, franchising, etc.);
    developing an integrated, decentralized approach to cooperation between operators of
    the two parties in order to foster industrial innovation, making the most of R&D and
    standards/certification policies that strengthen and complement cooperation;
    building up organized contacts between operators of the two parties in the form of
    conferences, seminars, missions to prospect industrial and technical opportunities,
    round tables and general and sector-specific fairs with the aim of identifying and
    exploiting mutual interests to boost trade, investment and industrial cooperation
    projects;
    promoting increased cooperation between economic operators in Chile and European
    associations, with a view to establishing and stepping up dialogue between networks
    aimed at developing decentralized industrial cooperation programmes and operations;
    promoting moves to streamline regulations and legislation so as to facilitate
    international business cooperation;
    introducing schemes for institutional collaboration between the EC and Chile to grant
    the two parties' economic operators easier access to public procurement and other
    service contracts subject to special regulations.
Chapter VQI: Investment promotion
The aim of cooperation will be to help the two parties promote, within the scope of their
respective competences, an attractive and stable environment for reciprocal investment.
Cooperation will take the form of:
    machinery for information about, and identification and dissemination of, investment
    legislation and opportunities;
    development of a stable macroeconomic climate attractive to investors.
    development of a legal framework favourable to investment on both sides;
    development of uniform and simplified administrative procedures;
    development of joint investment machinery, especially for both parties' SME.
Chapter IX: Scientific and technical cooperation
The aim of cooperation in science and technology, carried out in the mutual interest of the
two parties and in accordance with their policies, especially as regards rules on the
exploitation of research-based intellectual property, shall be:
     exchanges of information and experience at regional level, especially on the
     implementation of policies and programmes, with the emphasis on standardization;
     promotion of durable relations between the two parties' scientific communities;
     intensification of activities to promote innovation in Chilean and European businesses.
 ---pagebreak--- This cooperation will involve:
    joint (applied) research projects in areas of common interest, with active business
    participation as appropriate;
    exchanges of scientists to promote research, project preparation and high-level
    training;
    joint scientific meetings to foster exchanges of information and interaction, and
    identify areas for joint research;
    dissemination of results and development of links between the public and private
    sectors;
    evaluation of the activities concerned.
Higher education institutions, research centres and manufacturers (especially SMEs) on
both sides will be involved in this cooperation in an appropriate manner.
Chapter X: Energy cooperation
EC-Chile energy cooperation will aim to strengthen economic links in key energy sectors
such as hydroelectric power, hydrocarbons, renewable energy and energy-efficient
technology.
Cooperation will take the form of:
     exchanges of information in all appropriate forms, including the development of data
    banks shared by economic and social operators of Chile and the Community, training
     and joint conferences;
    technology transfers;
     preparatory studies and project implementation by the relevant institutions of both
     parties;
     the participation of economic operators from the two regions in technology
     development projects and joint infrastructure;
     the signing of specific agreements in key areas of mutual interest, where appropriate;
     aid for Chilean institutions dealing with energy issues and the formulation of energy
     policy.
Chapter XI: Transport
Cooperation is intended to support the restructuring and modernization of Chile's
transport system, improved circulation of persons and goods and better access to air, sea
and road transport markets, via the removal of administrative, technical and other
obstacles. In international maritime transport, the parties will see that there is unrestricted
market access on commercial terms.
Cooperation will take the form of:
     information exchanges on respective policies, particularly with regard to the
     interconnection and interoperability of networks and multimodal transport, and other
     subjects of mutual interest;
                                                                                is
 ---pagebreak---     training programmes in economics, law and technical subjects for economic operators
    and senior public officials.
Chapter XII: Telecommunications and information technology
Information technology and communications are key sectors in a modern society and are
of vital importance for economic and social development and the smooth transition to the
information society.
Cooperation in this area shall aim to promote:
    dialogue about different aspects of the information society;
         exchanges of information on standards, conformity testing and certification in the
information technology and telecommunications fields;
    the spread of new information and telecommunications technologies, particularly in
    the fields of integrated services digital networks (ISDN), data transmission and the
     development of new communications and information technology facilities;
     stimulation and implementation of joint research, technological development and
     industrial projects in the fields of new information technology, communications,
     telematics and the information society.
Chapter XIII: Environmental cooperation
The aim of cooperation will be:
     to promote the protection of the environment and the rational use of natural resources
     in pursuit of sustainable development;
     to integrate that objective into all fields of cooperation between the Community and
     Chile.
Cooperation will focus on:
     projects aimed at strengthening Chile's environmental organizations and policies;
     exchanges of information and know-how, for example on rules and standards;
     environmental training and education;
     technical assistance and the introduction of regional joint research programmes.
                                                                                u
 ---pagebreak---                                           TITLE m
                           OTHER AREAS OF COOPERATION
The 1990 Framework Cooperation Agreement provided for cooperation on social
development (Article 11), public administration (Article 12), information and
communication (Article 13), training (Article 14), and regional integration (Article 15). To
these, the new framework agreement will add new priorities emerging from closer
relations with a view to a political and economic association between the EU and Chile.
Financial and technical cooperation relating to social development
Social and regional inequalities, exacerbated in some cases by industrial restructuring,
have led to serious problems that will continue to require a substantial stream of technical
and financial cooperation projects geared to combating extreme poverty and generally
assisting the most deprived sections of the community.
Such cooperation may involve:
    job creation and vocational training programmes;
     social service management and administration projects;
     development, rural housing or land management projects;
     health and primary education programmes;
     support for civil society and grass-roots initiatives;
     any other programmes and projects which help combat poverty by creating business
     and employment opportunities;
Public administration and regional integration
Cooperation will be aimed at adapting Chilean systems of administration to expanded
trade in goods and services with Europe, and smoothing the way for the organizational
changes entailed in Latin American integration.
Given the Chilean administration's drive towards modernization, decentralization and
regionalization, this cooperation could encompass overall organizational efficiency (the
legislative and institutional framework), drawing lessons from the instruments and policies
of the European Community.
Means
     technical assistance to Chilean policy-making and executive bodies, including
     meetings between staff of the European institutions and their Chilean counterparts;
     regular exchanges of information taking whatever form is appropriate, including the
     use of computer networks; personal data protection will be ensured in all areas where
     data is to be exchanged;
     transfers of know-how;
     preliminary studies and joint project implementation;
     training and organizational support.
                                                                                10
                                                                                ^ >
 ---pagebreak--- Interinstitutional cooperation
The purpose of interinstitutional cooperation between the Community and Chile is to
promote closer cooperation between the parties' institutions.
The agreement will seek to encourage regular meetings between these institutions;
cooperation will be as broad as possible, and will include:
     any measures promoting regular exchanges of information, including the joint
     development of computerized communication networks;
     advice and training;
     transfers of know-how.
Media, information and culture
In view of Chile's very close cultural ties with most of the Member States, cooperation in
this sphere, including information and media contacts, should be enhanced.
This will involve promoting meetings between representatives of the media from the two
parties, supplying technical assistance where appropriate, and stepping up exchanges of
information on questions of mutual interest. It could also include organizing cultural
events.
Training and education
The parties will undertake to identify ways of improving training and education in the field
of regional integration, focusing on young people and basic education, vocational training
and cooperation between universities and between businesses.
Priority will be given to measures designed to create permanent links between specialized
Community and Chilean bodies, encouraging the pooling of technical resources and
exchanges of know-how.
Projects on these lines may be based on agreements between education and training
institutions and meetings between bodies responsible for education and training.
The parties may also conclude sectoral agreements on education and training.
Drugs
The parties will undertake to coordinate and increase their efforts to prevent and reduce
 the production, distribution and consumption of illegal drugs and laundering of profits
 from drug-trafficking.
The parties will work through specialized agencies, in particular international bodies, to
 implement:
      projects to train, educate, treat and rehabilitate drug addicts in Chile;
-    joint research programmes,
      exchanges of relevant information, including measures relating to money laundering
      and the control of precursors;
 ---pagebreak---       cooperation on drafting and enforcing the relevant legislation.
Cooperation in this field should promote consultation and close cooperation between the
parties.
Consumer protection
This should be geared to increasing the compatibility of consumer protection schemes in
the Community and Chile, primarily:
      through professional and information exchanges;
      by organizing training schemes and supplying technical assistance.
Additional areas
No opportunity for cooperation should be ruled out in advance; rather, the parties should
use the Joint Committee to explore together the practical possibilities for cooperation in
their mutual interest.
                                         TITLE IV
                                          MEANS
The contracting parties will undertake, in so far as their respective resources and
regulations allow, to provide the means, including the financial means, required to
implement the cooperation provided for by the agreement.
The agreement will include a provision in which the Community undertakes to contribute
to the realization of the agreement's objectives by means of financial cooperation executed
in accordance with the appropriate procedures and using the appropriate financial
resources.
Chile will benefit from the Community's instruments for Latin America under legislation
such as Regulation (EEC) No 443/92 on financial and technical assistance to, and
economic cooperation with, the developing countries in Asia and Latin America.
Chile will also have access to other budget headings such as those for ECIP, and
scientific, technological, environmental and energy cooperation.
The parties will encourage the EIB to step up its involvement in Chile in accordance with
its financing procedures and criteria.
                                                                                12
                                                                                (/1<J
 ---pagebreak---                                            TITLE V
                                  POLITICAL DIALOGUE
The parties will establish an enhanced form of political dialogue, based on their mutual
commitment to democracy and respect for human rights, to preserving peace and ushering
in a fair and stable international order.
It will cover any matter of mutual interest for the furtherance of common objectives and
will lead to close cooperation in international institutions.
Political dialogue between the parties will be conducted by means of contacts, exchanges
of information and consultation between the various government bodies in Chile and the
European Union, including the European Commission. The dialogue should preferably be
conducted jointly with other partners in the region, coinciding wherever possible with
meetings to further political dialogue already established with them.
It will involve Heads of State, ministers, senior officials and parliamentarians.
To this end, officials will negotiate a declaration on political dialogue to be annexed to the
agreement.
                                          TITLE VI
                             INSTITUTIONAL FRAMEWORK
A body (comprising representatives of the Council of the European Union and the
Commission and representatives of Chile), will be set up to supervise implementation of
the agreement, consider any major problems that might arise and any other bilateral or
multilateral matter of mutual interest concerning the achievement of the agreement's
objectives. It will meet regularly at ministerial level, and whenever necessary.
The Council will be assisted in its work by a joint committee on cooperation comprising
representatives of the Community and Chile. A trade subcommittee will see to it that the
agreement's trade objectives are met.
The body in question may also create other specialized committees and working parties,
and decide upon their composition, objectives and operations.
                                                                                13
                                                                                V
 ---pagebreak---                                                                                ANNEX H
                JOINT DECLARATION ON POLITICAL DIALOGUE
                  BETWEEN THE EUROPEAN UNION AND CHILE
Preamble
The European Union, on the one hand, and Chile, on the other,
     mindful of their common heritage and shared values, of the affinity between their
     cultures and of their close historical, political and economic ties,
     guided by their commitment to the United Nations Charter, and to upholding human
     rights and dignity and the freedom of the individual as cornerstones both of a
     democratic society and of institutions based on the rule of law,
     resolved to contribute to peace and international security in accordance with the
     principles of international law,
     committed to enhancing the political and economic freedoms underpinning their
     societies,
     recognizing their commitment to a model of economic management influenced by
     market economics and, in international relations, the concept of "open regionalism",
have decided to develop relations with a view to a long-term economic and political
association.
Objectives
The political will to achieve a political and economic association, reaffirmed on the
occasion of the signing of the framework cooperation agreement between the EC and
Chile, also underpins the decision to intensify political dialogue.
Dialogue will be rooted in the parties' common attachment to democracy and respect for
human rights, and in their commitment to maintaining peace and ushering in a fair and
stable international order, in accordance with the United Nations Charter.
This enhanced political dialogue will enable the EU and Chile to assess and monitor
regional integration schemes and strategies, and examine factors influencing the parties'
position in international economic and political systems.
It is also intended to ensure closer consultation on multilateral political and economic
issues, for example by allowing them to coordinate their positions in the relevant
multilateral organizations.
Mechanisms
The parties will conduct this enhanced political dialogue by means of contacts,
information exchanges and consultation, especially meetings at an appropriate level
between the various Chile and European Union institutions, including the European
Commission, as well as by making full use of diplomatic channels.
                                                                                14
                                                                                If
 ---pagebreak--- The dialogue should preferably be conducted jointly with other partners in the region,
coinciding wherever possible with meetings to further political dialogue already
established with them. Through enhanced political dialogue, the EU and Chile mean to
work towards setting up a political and economic association, thereby consolidating the
existing ties of culture, history andfriendshipbetween their peoples in accordance with
the democratic process.
                                                                                15
                                                                                12
 ---pagebreak---                                                                      Annex HI
                              FINANCIAL STATEMENT
1. TITLE OF OPERATION:
Framework cooperation agreement with Chile
Recommendation for a Council Decision authorizing the Commission to negotiate a
framework cooperation agreement with Chile.
2. BUDGET HEADING INVOLVED
(a) Implementation of the agreement will directly involve the following items:
     B7-3010:    Financial and technical cooperation with Latin American developing
                 countries
     B7-3011     Economic cooperation with Latin American developing countries
     B7-5020     Commercial and economic cooperation agreements with third countries
     B7-5000     Promotion of Community investment in developing countries in Asia,
                 Latin America and the Mediterranean and in South Africa by economic
                 cooperation and trade agreements
     B7-5040     Environment in the developing countries
     B7-5041     Tropical forests
     B7-5051     Women in development
     B7-5080     North-South cooperation schemes in the context of the campaign
                 against drug abuse
     B7-5230:    Democratization process in Latin America
     B7-5046:    Health programmes and the fight against HIV/AID S in developing
                 countries
     B7-5010:    Community contributions towards schemes concerning developing
                 countries carried out by non-governmental organizations
     B7-5077:    Decentralized cooperation in the developing countries
     B7-5091:    Coordination of development policy, evaluation of the results of
                 Community aid and practical follow-up measures
     B7-5096:    Development cooperation inspectorate
     B7-5300:    Measures to combat fraud in the cooperation sector
(b) Other items that may be used:
     B6-7211 :    International cooperation with third countries and international
                 organizations
     B4-1041:    European Energy Charter and cooperation with third countries in the
                 energy field
     B4-1000:    Thermie II (Community programme of financial support for the
                 promotion of energy technology in Europe)
     B7-5050:    Aid for population policies and programmes in developing countries
                                                                                16
                                                                                1^
 ---pagebreak--- 3.   LEGAL BASIS
Bilateralframeworkagreement on trade and economic cooperation.
4. DESCRIPTION OF OPERATION
     4.1 General objective
           Conclusion of aframeworkcooperation agreement with Chile.
     4.2 Period covered and arrangements for renewal or extension
           This is an interim agreement intended to pave the way for a political and
           economic association between the Union and Chile.
5.   CLASSIFICATION OF EXPENDITURE OR REVENUE
     5.1 Non-compulsory expenditure
     5.2 Differentiated appropriations
     5.3 Type of revenue involved
           Not applicable
6. TYPE OF EXPENDITURE OR REVENUE
     Expenditure will usually take the form of a 100% grant, though operations may
     sometimes be cofinanced by other donors (Member States).
     The recipients will systematically be required to contribute according to their means.
7.   FINANCIAL IMPACT
     7.1 Method of calculating total cost of operation (definition of unit costs)
           This agreement establishes a framework for new measures to reflect the
           changing content and methods of Community cooperation/relations with Chile
           in the light both of recent social and economic developments in the country and
           of the process of strengthening ties between the parties.
           Although the quality and quantity of cooperation with Chile will be improved,
           there will be no specific budget for new operations.
8.   FRAUD PREVENTION MEASURES; RESULTS OF MEASURES TAKEN
     In order to ensure maximum accountability in the management of budget resources,
     projects are subject to the following procedures:
           committee for the assessment of restricted invitations to tender (technical
           assistance);
           system of co-directors (one local and one Community);
                                                                                17
                                                                                K
 ---pagebreak---          project administration involving analytical accounts;
         supervisory missions by desk officers and/or technical and/or financial units;
         if necessary, evaluation by independent experts;
         if necessary, ad hoc evaluation in conjunction with the relevant units of
         DGVIII.
   For projects of above-average duration and involving large budgets, there will be
   annual audits by internationally recognized firms, e.g. Price Waterhouse or Ernst &
   Young.
9. ELEMENTS OF COST-EFFECTIVENESS ANALYSIS
   9.1 Specific and quantified objectives; target population
         The specific objectives of each project worth over ECU 1 million are set out in
         the relevant financing proposal approved by the ALA Committee, which
         includes an economic and financial analysis. For all other projects, specific
         objectives are set out in the detailed commitment form that accompanies each
         one.
         The target population is everyone in Chile, but more particularly:
         - the manufacturing and service sectors, especially SME;
         - the most disadvantaged groups.
   9.2 Grounds for the operation
         The projects launched will be financed under existing budget items and are
         therefore underpinned by the financial statements accompanying those items in
         thePDB.
10 ADMINISTRATIVE EXPENDITURE (PART A OF SECTION m OF THE
   BUDGET)
   10.1 Extra staff
         The administrative resources needed will be mobilized through the
         Commission's annual decision on resource allocation depending on the staff and
         finance approved by the budgetary authority.
   Staffing
   Relations with Chile have so far been handled by an A official assisted by a part-time
   C official. They are unable to cope with the steady increase in political contacts,
   cooperation programmes and the day-to-day workload of the desk office generated
   by the stepping-up of relations over the past year.
   The objective of the framework agreement is to strengthen relations between Chile
   and the Union in all areas with a view to a future political and economic association.
   The agreement will therefore bring with it qualitative requirements quite distinct from
   the volume of aid granted.
                                                                                IT
 ---pagebreak--- This agreement has to reflect the Union's will to maintain closer relations not only in
the context of cooperation but in the form of deeper political dialogue and trade
cooperation geared to the future liberalization of trade.
It is estimated, therefore, that the following extra staff will be needed: one new A
official, one B official and one part-time C official. Their tasks will be as follows.
Grade A official and temporary member of staff
*      Overall direction, general consistency, coordination of activities, in-house
      coordination, dealings with Chile, information and dissemination, overall
      administration;
*      technical monitoring of trade relations, supervision of the working parties that
      will be set up, coordination of trade-related issues with other departments, day-
      to-day handling of trade questions, preparations for meetings of the joint trade
      subcommittee, drawing-up of reports, studies and analyses on trade aspects of
      the future bilateral association agreement;
*      cooperation: identification, implementation, management, monitoring, etc.
Grade B official
*      Support for A officials, particularly data searches, processing of statistics, data
      processing, administration and accounting.
Grade C officials
*      Secretarial back-up.
The above estimates do not include extra staff that might be needed by other
Directorates General as a result of closer ties with Chile.
                                                                                19
 ---pagebreak---  Posts            Staff to be allocated          to Source                       Period
                  administering operation
                  Permanent       Temporary         Existing     Additional
                                                    resources    resources
                                                    within DG or
                  :
 '                                                  department
 A                2                                 1            I               Indefinite,
 B                1                                              I               starting 1996
 C                1                                 0.5          0.5             !
 (Officials of
 temporary
 staff)
 Other
 resources
 TOTAL            4                                 1.5          2.5
      The above remarks concerning the need for additional resources are subject to a
      Commission decision.
      The allocation of the additional posts will have to be considered in terms of the
      Commission's priorities when it examines the 1996 budget.
      10.2 Total financial implications of extra stalling
                                  Amounts                        Calculation method
 A officials                      100 000                        Gross salary. List of average
 B                                90 000                         annual cost of existing posts
 C                                 64000
 TOTAL                            254 000
The amounts represent the total cost of extra staff for the duration of the operation, if it is
of fixed duration, or for one year if it is open-ended.
11. MISSION EXPENSES
     From its very first contacts with the EC, Chile has expressed a desire for technical
     assistance from the EC in a number of fields in which Community institutions have
     acquired experience. To this end, it has expressly asked to be allowed to work
     directly with the officials of the institutions concerned.
                                                                                20
                                                                                l>
 ---pagebreak---      In response to these requests, the Commission has attempted to involve its various
     DGs and departments in one-off projects to impart the benefits of its experience of
     integration.
     While a number of DGs have expressed a desire to take part in this type of project,
     they have been seriously hampered in financing the relevant missions and many of
     Chile's requests have had to be turned down for want of a specific budget for such
     assistance.
     If appropriate machinery is not set up to facilitate these specific projects, the situation
     will become even more serious with the advent of the framework cooperation
     agreement, which seeks to expand the scope of technical assistance.
     Since it is impossible to predict how much extra will be needed for each DG in the
     absence of agreements between DGs on mission authorizations, a budget of an extra
     ECU 50 000 a year from 1996 should be planned to finance projects solely in this
     field. The budget should be initiated and coordinated by the relevant departments of
     the DG responsible for relations with Chile.
     An extra allocation is therefore requested for EC-Chile know-how transfer projects
     concerned specifically with the Community institutions.
     The amounts requested represent the cost of organizing missions averaging one week
     for 10 officials.
 Budget heading                    Amount (ECU)                  Calculation method
 A-1300                            50 000                        See table below
 TOTAL                             50 000
 CSTo of missions      L\verage cost onAverage        dailyfTotal (ECU)       Rounded       totaU
                     fcnp               expenses                             (ECU)
  10                 P800                135               W7 450             50 000
     The amounts represent the total cost for the duration of the operation, if it is of fixed
duration, or for one year if it is open-ended.
                                                                                21
                                                                                If
 ---pagebreak---                                                                   ISSN 0254-1475
                                                            COM(95) 530 final
                                              DOCUMENTS
EN                                                                            11
                                     Catalogue number : CB-CO-95-587-EN-C
                                                             ISBN 92-77-95859-6
Office for Official Publications of the European Communities
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