title: Recommendation for a Council decision on the existence of an excessive deficit in the United Kingdom

text:
   EN
EN    EN
 ---pagebreak---        COMMISSION OF THE EUROPEAN COMMUNITIES
                                         Brussels, 2.7.2008
                                         SEC(2008) 2201 final
                        Recommendation for a
                       COUNCIL DECISION
   on the existence of an excessive deficit in the United Kingdom
                   (presented by the Commission)
EN                                                                EN
 ---pagebreak---                                     EXPLANATORY MEMORANDUM
   Article 104 of the Treaty lays down an excessive deficit procedure (EDP) to ensure that
   Member States avoid excessive government deficits or that they correct such deficits when
   they occur. The EDP is further specified in Council Regulation (EC) No 1467/97 “on
   speeding up and clarifying the implementation of the excessive deficit procedure”1, which is
   part of the Stability and Growth Pact. However, while most provisions apply to the United
   Kingdom in the same manner as to other countries not participating in the euro area, Article 5
   of the Protocol on certain provisions relating to the United Kingdom states that the obligation
   under Article 104(1) of the Treaty to avoid excessive general government deficits does not
   apply to the United Kingdom unless it moves to the third stage of economic and monetary
   union2. Instead, while in the second stage of economic and monetary union, the United
   Kingdom shall, pursuant to Article 116(4) of the Treaty, “endeavour to avoid excessive
   deficits”. The EDP applies to the United Kingdom on a financial year basis (running from
   April to March).
   The United Kingdom undertook strong fiscal consolidation efforts during the late 1990s,
   which led to an improvement in the general government balance from a deficit of 3.8% of
   GDP in 1996/97 to a surplus of 1.3% in 1999/00. Gross government debt also declined from
   over 50% of GDP in 1996/97 to a low of 36.8% in 2002/03. Thereafter, the government
   adopted a looser fiscal stance, mainly as a result of an explicit policy objective to raise
   expenditure on public services. As a result, the general government balance moved from a
   surplus position in the late 1990s to a deficit of 3.2% of GDP in 2003/04 and 3.5% in
   2004/05. With the output gap remaining positive throughout this period, this was equivalent to
   a deterioration of the structural balance by 4¾ percentage points of GDP3 between 1999/00
   and 2004/05. During these years, the government expenditure-to-GDP ratio increased by
   about 4½ percentage points, to 43.2%, with government gross fixed capital formation rising
   from 1.3% of GDP to 1.8%. On 21 September 2005 the Commission initiated an EDP for the
   UK with the adoption of a report under Article 104.3 and on 24 January 2006 the Council
   decided that an excessive deficit existed in the United Kingdom. The budgetary position
   improved in 2005/06 and 2006/07, with the headline deficit in the latter year falling to 2.6%
   of GDP. On 12 September 2007, taking into account the 2006/07 deficit outturn and the
   spring 2007 forecast, the Commission adopted a recommendation for a Council decision
   abrogating the EDP against the UK. On 9 October 2007, ECOFIN decided to abrogate the
   EDP according to Article 104.12 of the Treaty.
   Over the course of 2007/08 weak revenue growth, especially due to higher repayments of
   corporate tax overpaid in previous years and lower revenues from oil and gas extraction
   activity, led to a worsening of the UK's budgetary position. The 2007/08 deficit is estimated
   to have risen to 2.9% of GDP in both the Commission services’ spring 2008 forecast and in
   1
           OJ L 209, 2.8.1997, p. 6. Regulation as amended by Regulation (EC) No 1056/2005 (OJ L 174,
           7.7.2005, p. 5). Account is also taken of the Opinion of the Economic and Financial Committee on the
           “Specifications on the implementation of the Stability and Growth Pact and guidelines on the format
           and content of stability and convergence programmes”, endorsed by the ECOFIN Council of 11
           October 2005.
   2
           http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:12006E/PRO/25:EN:HTML
   3
           Estimated by the Commission services, applying the common methodology on estimating output gaps.
EN                                                        2                                                     EN
 ---pagebreak---    the data reported by the UK in March 2008.4 Fiscal policy was estimated to be again pro-
   cyclical in 2007/08, with the structural deficit deteriorating by ¼% of GDP in a still
   favourable economic context.5
   According to the EDP data notified by the UK authorities in March 20086, the United
   Kingdom's general government deficit in 2008/09 was planned to reach 3.2% of GDP, thus
   exceeding the 3% of GDP reference value; this ratio was identical to that published in the
   United Kingdom's March 2008 budget. A subsequent policy announcement on 13 May
   reducing personal income tax in 2008/09, financed by additional borrowing, results in an
   increase in the planned deficit ratio by 0.2 percentage points7 when compared to the
   notification, other things being equal. The figure for the 2008/09 deficit in the notification
   provides prima facie evidence of a planned excessive deficit in the United Kingdom in the
   sense of the Treaty and the Stability and Growth Pact, while the more recent policy
   announcement is to be considered additional evidence. The Commission therefore adopted a
   report on 11 June 2008 according to Article 104(3) of the Treaty assessing the fulfilment of
   the Treaty requirements concerning the deficit and the debt criteria.
   The report considered that, although above the 3% of GDP Treaty reference value, the deficit
   planned for 2008/09, as notified in March 2008, was close to it. The excess over the 3% of
   GDP reference value was not exceptional. In particular, it did not result from an unusual event
   outside the control of the United Kingdom authorities, nor was it the result of a severe
   economic downturn. The Commission services’ spring 2008 forecast projects UK growth to
   slow in 2008 and 2009 to annual rates below potential. Nevertheless, annual GDP growth is
   expected to reach 1.7% in 2008 and 1.6% in 2009. As regards the issue of temporariness, the
   Commission services expect the deficit ratio in 2009/10 to remain above 3%, with the weak
   economic context feeding through into slower revenue growth. The government's statement
   on 13 May 2008 does not commit the government to extend to 2009/10 the same
   compensation offered in 2008/09.8 It nevertheless carries a risk for 2009/10 of a deficit
   4
           The data notified by the United Kingdom in March 2008 indicates a general government deficit of 2.8%
           of GDP in 2007/08. However, data for annual general government net borrowing as reported by the
           United Kingdom are increased by £1.0bn by the Commission services to ensure consistency of
           recording of UMTS licence proceeds. This increases the deficit ratio to 2.9% of GDP in 2007/08.
   5
           The provisional public sector finances' data for May 2008 published on 19 June 2008 and the national
           accounts' data published on 27 June 2008 imply a headline 2007/08 general government deficit on an
           EDP-basis of 2.8% of GDP, 0.1 p.p. less than estimated in the 2008 Budget and in the spring forecast.
           The slightly better-than-expected outturn was primarily due to a downward revision to previously-
           published figures for central government current expenditure, which ceteris paribus also implies a
           lower structural deficit in 2007/08 by 0.1% of GDP. Under a no-policy-change assumption, the spring
           2008 forecast assumes that the government will adhere to the non-cyclical primary expenditure plans
           announced in the 2008 budget, which were practically unchanged from those in the 2007
           Comprehensive Spending Review. Lower departmental spending in 2007/08 would not pass-through
           into the expenditure planned in 2008/09 and 2009/10, since the departmental spending limits for those
           years were established in the 2007 Comprehensive Spending Review. Indeed, under the End-year
           Flexibility (EYF) scheme, departments are allowed to carry forward under-spends on their departmental
           allocations from one year to the next.
   6
           According to Council Regulation (EC) No 3605/93, Member States have to report to the Commission,
           twice a year, their planned and actual government deficit and debt levels. The most recent notification
           of the United Kingdom can be found at:
           http://epp.eurostat.ec.europa.eu/portal/page?_pageid=2373,58110711&_dad=portal&_schema=portal.
   7
           In the UK government's income tax announcement published on 13 May 2008, the cost of the income
           tax reduction was stated to amount to £2.7bn in 2008/09, which is estimated by the Commission to be
           equivalent to 0.2% of GDP.
   8
           Further policy announcements are expected in the autumn 2008 Pre-Budget Report.
EN                                                        3                                                        EN
 ---pagebreak---    overshoot, compared with the March 2008 budget plans, with a similar impact ceteris paribus
   on the spring forecast projection.
   The general government debt ratio remains well below the 60% reference value (the March
   EDP data reported a ratio of 43.0% of GDP9 in the 2007/08 financial year), although projected
   to be on a rising trend up to 2009/10.
   In accordance with the provisions in the Treaty and the Stability and Growth Pact, the
   Commission also analysed in its report all “other relevant factors”. According to the Stability
   and Growth Pact, these factors can only be taken into account in the steps leading to the
   decision on the existence of an excessive deficit if the double condition - that the deficit
   remains close to the reference value and that its excess over the reference value is temporary -
   is fully met. In this case the double condition is not met.
   Therefore, the Commission's analysis implies that the deficit criterion in the Treaty is not
   fulfilled, whereas the debt criterion is met.
   Article 104(4) of the Treaty states that “the Committee provided for in Article 114 [i.e. the
   Economic and Financial Committee] shall formulate an opinion on the report of the
   Commission”. The Committee issued its opinion on 25 June 2008; this opinion is consistent
   with the assessment made by the Commission in its report and confirms that the excess over
   the reference value cannot be considered exceptional or temporary.
   The Commission, having taken into account its report and the opinion of the Economic and
   Financial Committee, is of the opinion that an excessive deficit exists in the United Kingdom.
   This opinion, adopted by the Commission on 2 July 2008, is herewith addressed to the
   Council, according to Article 104(5) of the Treaty. The Commission is recommending that the
   Council shall decide accordingly, in conformity with Article 104(6).
   In addition, the Commission is submitting to the Council a recommendation for a Council
   recommendation to be addressed to the United Kingdom with a view to bringing the situation
   of an excessive deficit to an end, according to Article 104(7) of the Treaty. According to
   Council Regulation (EC) No 1467/97, the Council recommendation should “establish a
   deadline for the correction of the excessive deficit, which should be completed in the year
   following its identification unless there are special circumstances. In the recommendation, the
   Council shall request that the Member State achieves a minimum annual improvement of
   0.5% of GDP as a benchmark, in its cyclically adjusted balance net of one-off and temporary
   measures, in order to ensure the correction of the excessive deficit within the deadline set in
   the recommendation”.
   In the case of the United Kingdom, the overall assessment of the factors mentioned in the
   report under Article 104(3) does not suggest the existence of special circumstances warranting
   a departure from the standard deadline for correcting the deficit. While GDP growth is
   expected to slow in 2008 and 2009 relative to potential growth rates, thus leading to the
   emergence of a negative output gap, GDP growth is expected to remain positive throughout
   the spring forecast horizon at annual rates above 1.5% in 2008 and 2009. In order to reduce
   the headline deficit to below the 3% of GDP reference value in 2009/10, the UK authorities
   would have to achieve structural consolidation in 2009/10 of at least an annual improvement
   9
            Using GDP adjusted for Financial Intermediation Services Indirectly Measured (FISIM).
EN                                                       4                                          EN
 ---pagebreak---    of 0.5% of GDP expected under Article 3(4) of Regulation (EC) No 1467/97. A deadline for
   correction of an excessive deficit is to be set in accordance with the aforementioned
   Regulation, which envisages that the correction should be completed in the year following its
   identification. In the case of the United Kingdom, the identification took place in 2008 on the
   basis of a planned deficit in excess of the 3% of GDP reference value in 2008/09.
   Accordingly, in the recommendation, the budgetary correction should be completed at the
   latest by financial year 2009/10.
   United Kingdom: Macroeconomic and budgetary developments a
                                          2004/05    2005/06     2006/07     2007/08         2008/09               2009/10
                                                                                2008                 2008
                                                                                COM                    COM
                                                                                Budget               Budget
   Real GDP (% change) b                    3.3         1.8        2.9         3.0        1.7        2.0        1.6       2½
   Potential GDP (% change) b,c             2.7         2.7        2.8         2.7        2.4       2½          2.3      2½
   Output gap (% of potential
                                            0.7        -0.1         0.0        0.4       -0.3       -0.6       -1.0      -0.6
   GDP) b,c
   General government balance               3.5         3.1         2.6        2.9        3.3        3.2        3.3       2.8
   Primary balance                         -1.4        -1.0        -0.4       -0.7       -1.1       -1.2       -1.2      -0.8
   One-off and other temporary
                                             -          0.3          -          -          -          -          -         -
   measures
   Government gross fixed capital
                                            1.8         0.6        1.8         1.9        2.0        2.0        1.9       2.0
   formation
   Cyclically-adjusted balance c,d         -3.7        -3.0        -2.7       -3.0       -3.1       -2.9       -2.9      -2.6
   Cyclically-adjusted        primary
                                           -1.7        -0.9        -0.6       -0.8       -0.9       -0.9       -0.8      -0.6
   balance
   Structural balance d,e                  -3.7        -3.3        -2.7       -3.0       -3.1       -2.9       -2.9      -2.6
   Structural primary balance              -1.7        -1.2        -0.6       -0.8       -0.9       -0.9       -0.8      -0.6
   Notes:
   a
     In percent of GDP unless specified otherwise.
   b
     Data on a calendar-year basis. Numbers reported in 2004/05 column refer to the 2004 calendar year.
   c
      Potential GDP growth, output gaps and cyclically-adjusted balances attributed to the 2008 budget are reported as
   recalculated by the Commission services on the basis of the information in the budget.
   d
     The 2008 budget estimate of the cyclically-adjusted and structural balances in 2007/08 (as recalculated by the Commission
   services) is 2.8% of GDP.
   e
     Cyclically-adjusted balance excluding one-off and other temporary measures.
   Source: Eurostat and Commission services’ spring 2008 forecasts.
EN                                                               5                                                             EN
 ---pagebreak---                                             Recommendation for a
                                           COUNCIL DECISION
                    on the existence of an excessive deficit in the United Kingdom
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty establishing the European Community, and in particular
   Article 104(6) thereof,
   Having regard to the recommendation from the Commission,
   Having regard to the observations made by the United Kingdom,
   Whereas:
   (1)     Article 104 of the Treaty lays down an excessive deficit procedure (EDP) to ensure
           that Member States avoid excessive government deficits or that they correct such
           deficits when they occur.
   (2)     Pursuant to point 5 of the Protocol on certain provisions relating to the United
           Kingdom of Great Britain and Northern Ireland, the obligation under Article 104(1) of
           the Treaty to avoid excessive general government deficits does not apply to the United
           Kingdom unless it moves to the third stage of economic and monetary union10. While
           in the second stage of economic and monetary union, the United Kingdom is required
           to endeavour to avoid excessive deficits, pursuant to Article 116(4) of the Treaty.
   (3)     The Stability and Growth Pact is based on the objective of sound government finances
           as a means of strengthening the conditions for price stability and for strong sustainable
           growth conducive to employment creation.
   (4)     The excessive deficit procedure under Article 104 of the Treaty, as clarified by
           Council Regulation (EC) No 1467/97 on speeding up and clarifying the
           implementation of the excessive deficit procedure11, which is part of the Stability and
           Growth Pact, provides for a decision on the existence of an excessive deficit. The
           Protocol on the excessive deficit procedure annexed to the Treaty sets out further
           provisions relating to the implementation of the excessive deficit procedure. Council
           Regulation (EC) No 3605/9312 lays down detailed rules and definitions for the
           application of the provision of the said Protocol.
   10
           http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:12006E/PRO/25:EN:HTML
   11
           OJ L 209, 2.8.1997, p. 6. Regulation as amended by Regulation (EC) No 1056/2005 (OJ L 174,
           7.7.2005, p. 5).
   12
           OJ L 332, 31.12.1993, p. 7. Regulation as last amended by Regulation (EC) No 2103/2005 (OJ L 337,
           22.12.2005, p. 1).
EN                                                       6                                                   EN
 ---pagebreak---    (5) Article 104(5) of the Treaty requires the Commission to address an opinion to the
       Council if the Commission considers that an excessive deficit exists in a Member State
       or may occur. Having taken into account its report in accordance with Article 104(3)
       of the Treaty and having regard to the opinion of the Economic and Financial
       Committee in accordance with Article 104(4), the Commission concluded that an
       excessive deficit exists in the United Kingdom. The Commission therefore addressed
       such an opinion to the Council in respect of the United Kingdom on 2 July 2008.
   (6) Article 104(6) of the Treaty states that the Council should consider any observations
       which the Member State concerned may wish to make before deciding, after an overall
       assessment, whether an excessive deficit exists. In the case of the United Kingdom,
       this overall assessment leads to the following conclusions.
   (7) The United Kingdom undertook strong fiscal consolidation efforts during the late
       1990s. Thereafter, the government adopted a looser fiscal stance, mainly as a result of
       an explicit policy objective to raise expenditure on public services. As a result, the
       general government balance moved from a surplus position in the late 1990s to a
       deficit of 3.2% of GDP in 2003/04 and 3.5% in 2004/05. With the output gap
       remaining positive throughout this period, this was equivalent to a deterioration of the
       structural balance by 4¾ percentage points of GDP13 between 1999/00 and 2004/05.
       On 21 September 2005 the Commission initiated an EDP for the UK with the adoption
       of a report under Article 104.3 and on 24 January 2006 the Council decided that an
       excessive deficit existed in the United Kingdom. The budgetary position improved in
       2005/06 and 2006/07, with the headline deficit in the latter year falling to 2.6% of
       GDP. On 12 September 2007, taking into account the 2006/07 deficit outturn and the
       spring 2007 forecast, the Commission adopted a recommendation for a Council
       decision abrogating the EDP against the UK. On 9 October 2007, ECOFIN decided to
       abrogate the EDP according to Article 104.12 of the Treaty.
   (8) According to the EDP data notified by the UK authorities in March 2008, the United
       Kingdom's general government deficit in 2008/09 was planned to reach 3.2% of GDP,
       thus exceeding the 3% of GDP reference value; this ratio was identical to that
       published in the United Kingdom's March 2008 budget, which also presented
       budgetary plans showing a general government deficit of 2.8% of GDP in 2009/10.
       The deficit figure in the latter year is lower than the corresponding figure in the
       Commission services' spring forecast of 3.3% of GDP, mainly due to differences in
       expected GDP growth in 2009/10. Following the publication of the March 2008
       budget, a policy announcement on 13 May reducing personal income tax in 2008/09,
       financed by additional borrowing, results in higher planned deficit and debt ratios than
       those in the notification. Other things being equal, this will lead to an increase in the
       2008/09 deficit ratio forecast by the Commission services to around 3.5% of GDP.14
       Although above the 3% of GDP Treaty reference value, the deficit planned for
       2008/09, as notified in March 2008, is close to it. The excess over the 3% of GDP
       reference value is not exceptional. In particular, it does not result from an unusual
       event outside the control of the United Kingdom authorities, nor is it the result of a
   13
       Estimated by the Commission services, applying the common methodology on estimating output gaps.
   14
       In the UK government's income tax announcement published on 13 May 2008, the cost of the income
       tax reduction was stated to amount to £2.7bn in 2008/09, which is estimated by the Commission to be
       equivalent to 0.2% of GDP. Adding this to the 2008/09 deficit figure from the Commission services''
       spring forecast produces a deficit of 3.5% of GDP.
EN                                                    7                                                    EN
 ---pagebreak---           severe economic downturn. The Commission services’ spring 2008 forecast projects
          UK growth to slow in 2008 and 2009 to annual rates below potential. Nevertheless,
          GDP growth is expected to reach 1.7% in 2008 and 1.6% in 2009. The excess over the
          3% of GDP reference value is also considered not temporary, with the Commission
          services forecasting, on the basis of unchanged policies, a deficit ratio in 2009/10 still
          higher than 3% (at 3.3%). This indicates that the Treaty requirement concerning the
          deficit criterion is not fulfilled.
   (9)    The general government debt ratio remains well below the 60% reference value (the
          March EDP data reported a ratio of 43.0% of GDP15 in the 2007/08 financial year),
          although projected to be on a rising trend up to 2009/10. In the Commission services'
          forecast, the debt ratio is projected to reach around 47½% of GDP in 2009/10.
   (10)   According to Article 2(4) of Regulation (EC) No 1467/97, “other relevant factors” can
          only be taken into account in the Council decision on the existence of an excessive
          deficit in accordance with Article 104(6) if the double condition - that the deficit
          remains close to the reference value and that its excess over the reference value is
          temporary - is fully met. This double condition is not met. Therefore, other relevant
          factors are not taken into account in the steps leading to this decision.
   HAS ADOPTED THIS DECISION:
                                                  Article 1
   From an overall assessment it follows that an excessive deficit exists in the United Kingdom.
                                                  Article 2
   This decision is addressed to the United Kingdom of Great Britain and Northern Ireland.
   Done at Brussels, […]
                                                    For the Council
                                                    The President
                                                    […]
   15
          Using GDP adjusted for Financial Intermediation Services Indirectly Measured (FISIM).
EN                                                     8                                             EN


RECOMMENDATION FOR A COUNCIL DECISION CONCERNING THE CONCLUSION OF A PROTOCOL TO THE COOPERATION AGREEMENT BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE REPUBLIC OF TUNISIA CONSEQUENT ON THE ACCESSION TO THE COMMUNITY OF THE KINGDOM OF SPAIN AND THE PORTUGUESE REPUBLIC


RECOMMENDATION FOR A COUNCIL DECISION CONCERNING THE CONCLUSION OF AN ADDITIONAL PROTOCOL TO THE COOPERATION AGREEMENT BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE KINGDOM OF MOROCCO


RECOMMENDATION FOR A COUNCIL DECISION AUTHORIZING THE COMMISSION TO OPEN NEGOTIATIONS WITH A VIEW TO CONCLUDING AN AGREEMENT IN THE FORM OF AN EXCHANGE OF LETTERS BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE PRINCIPALITY OF ANDORRA


title: RECOMMENDATION FOR A DECISION OF THE COUNCIL AND OF THE REPRESENTATIVES OF THE GOVERNMENTS OF THE MEMBER STATES MEETING IN THE COUNCIL AUTHORIZING THE COMMISSION TO OPEN NEGOTIATIONS WITH THE DEMOCRATIC REPUBLIC OF SAO TOME AND PRINCIPE.# RECOMMENDATION FOR A DECISION OF THE COUNCIL AND OF THE REPRESENTATIVES OF THE GOVERNMENTS OF THE MEMBER STATES MEETING IN THE COUNCIL AUTHORIZING THE COMMISSION TO OPEN NEGOTIATIONS WITH THE REPUBLIC OF CAPE VERDE#DRAFT INTERNAL AGREEMENT AMENDING THE INTERNAL AGREEMENT ON THE FINANCING AND ADMINISTRATION OF COMMUNITY AID SIGNED ON 11 JULY 1975. (submitted to the Council by the Commission)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (76) 223
Vol. 1976/0074
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak---        COMMISSION OF THE EUROPEAN COMMUNITIES
                                                      COM(76 ) 223 final .
                                                      Brussels . 17 May 1976
               l
                                               i
                                                 /
                     RECOMMENDATION FOR A DECISION OF THE COUNCIL AND OF THE
                     REPRESENTATIVES OP THE GOVERNMENTS OP THE MEMBER STATES
                     MEETING IN THE COUNCIL AUTHORIZING THE COMMISSION 'TO
                     OPEN NEGOTIATIONS WITH TEE DEMOCRATIC REPUBLIC OP SAO
                     TOME AND PRINCIPE
                     RECOMMENDATION FOR A DECISION OP THE COUNCIL AND OP THE
                     REPRESENTATIVES OP THE GOVERNMENTS OP THE MEMBER STATES
                     MEETING IN THE COUNCIL AUTHORIZING THE COMMISSION TO
                     OPEN NEGOTIATIONS WITH THE REPUBLIC OP CAPE VERDE
                                              D R A F T
                     INTERNAL AGREEMENT AMENDING THE INTERNAL AGREEMENT ON
                     THE FINANCING AND ADMINISTRATION OP COMMUNITY AID SIGNED
                     ON 11 JULY 1975
                             ( submitted to the Council by the Commission )
                           \
                                     /
             I                     .
                                                         • i
COM(76 ) 223 final .
 ---pagebreak--- ACCESSION TO THE ACP-EEC COMEKTION OF LOMfi BY SAO TOME E PRINCIPE
                           AND CAPE VERDE
(Cdmmission Communication to the Council concerning the opening of
 negotiations )
1 . The Democratic Republic of Sao Tome e Principe and the Republic of
Cape Verde made formal requests for accession to the Lome Convention,
under Article 90 of the Convention , on 16 August and 11 October 1975 •
                                                                              /
respectively .
Without waiting for these requests to be formally approved by the ACP-ESC
Council of Ministers , which could not act until the Convention had entered
into force , the Commission - after informing the Council of the European
Communities and the ACP States - began exploratory talks with the
Governments of the two countries in question. These talks were held
   in December 1975 with Sao Tome e Principe , and
   in February 1976 with Cape Verde .
2 . At the exploratory talks and in the course of subsequent contacts it
was found that the two countries were ready to accept in principle all the
obligations involved in accession to the Convention.
The only matter which might be raised hy the two countries in the course
of negotiations proper concerns trade , given the de facto existence of
preferential arrangements  with the former metropolis . Since , however , the
two countries have stated  that they intend in any case to abolish these
preferential arrangements  eventually , their existence does not seem to be
a problem which cannot be  resolved satisfactorily during the negotiations .
Since there are no other special problems , it would appear that the
negotiations could take place in a relatively short time , leading rapidly
to the signing by the Community of an accession agreement with each of
the countries .
The Community would thus be responding to the desire which has been
expressed for accession to the Convention at the earliest possible date .
 ---pagebreak--- 3.    The negotiations will be conducted, in close contact with the ACP
States , which will be kept informed by exchanges of views as necessary .
The Commission considers that , although it is not a legal requirement of
the Convention , when the negotiations have been completed the accession
agreements should then be the subject of consultation with the ACP Group .
The accession agreements would subsequently be signed and the necessary
ratification procedures begun.
In any case the accession agreements will enter into force only when the
requests for accession have been formally approved by the ACP-EEC Council
of Ministers .    It is useful to point out , however , that at the recent
meetings in Georgetown and Blantyre , the ACP were favourably disposed
towards these requests for accession .    Arrangements should therefore be
made for formal approval to be obtained :
   at the first meeting of the ACP-EEC Council of Ministers ,
   or , if necessary , by written procedure .
4-   Wi-Jih a view to enabling the negotiations with the two countries to be
opened as soon as possible , the Commission recommends that Decisions of
the Council and the Representatives of the Member States meeting in the
Council be adopted , authorizing the Commission to open negotiations with :
   SAO TOME E PRINCIPE (AMEX i )
             and
   CAPE VERDE            (AM3X II)
and the relevant directives issued .
While the negotiations with the applicant States are being conducted , the
Member States should agree on the provisions amending the Internal
Financial Agreement in order to enable the necessary procedures for
ratifying those provisions to be undertaken at the same time as those
for the accession agreements (Annex III ).
 ---pagebreak---                                 - 3 -
5 . The Commission considers that as soon as the accession agreements
have teen signed , pending completion of the ratification procedures in
the Member States , the Community and the applicant countries should
agree , for the purpose of their trade , to apply autonomously the trade
arrangements provided for "by the agreements , as the Community and the
46 ACP States did from 1 July 1975 *
Lastly , the Commission considers that , in the same spirit , transitional
measures similar to those adopted between the Community and the ACP
States from 1 July 1975 as regards financial and technical cooperation
                                                           I
in particular should also be applied .
 ---pagebreak--- RECOMMENDATION FOR A DECISION OP THE COUNCIL AND OP THE
REPRESENTATIVES OP THE GOVERNMENTS OP THE MEMBER STATES
MEETING IN THE COUNCIL AUTHORIZING THE COMMISSION TO
OPEN NEGOTIATIONS WITH SAO TOME AND PRINCIPE
THE COUNCIL OP THE EUROPEAN COLinJNITIES AND THE REPRESENTATIVES OP THE
GOVERNMENTS OP THE MELIBER STATES MEETING IN THE COUNCIL ,
Having regard to the Treaty establishing the European Economic Community ,
and in particular Article 238 thereof ,
Having regard to the recommendation from the Commission ,
Whereas SAO TOME END PRINCIPE has applied to accede to the ACP-EEC
 %
Convention signed in Lome on 28 February 1975v
Whereas the first paragraph of Article 90     "the Convention stipulates
that , subject to the approval of the ACP-EEC Council of Ministers , an
agreement between the Community and a State whose economic structure
and production are comparable with those of the ACP States may provide
for the accession of that State to the Convention ,
HAVE DECIDED AS FOLLOWS :
                                Sole Article
The Commission is hereby authorized to open negotiations for the conclusion
of an agreement between the European Economic Community and
             SAO TOME AND PRINCIPE on the accession of that country to the
ACP-EEC Convention of Lome .
The Commission shall conduct these negotiations in consultation with the
Representatives of the Member States and in accordance with the directives
annexed hereto .
 ---pagebreak--- DIRECTIVES RELATING TO THE NEGOTIATIONS WITH
    SAO TOME AND PRINCIPE FOR THE CONCLUSION OP AN AGREEMENT ON THE
ACCESSION OF THAT COUNTRY TO THE ACP-EEC CONVENTION OF LOME
1 o The agreement to "be concluded shall provide for the accession of
    SAO TOME AND PRINCIPE to the ACP-EEC Convention of Lome .
2. The agreement may stipulate the date on which certain of its obligations
    in particular concerning trade , would become applicable to SAO TOME
    AND PRINCIPE.
3. ( ECSC products ).
 ---pagebreak---  RECOMMENDATION FOR A DECISION OP THE COUNCIL AND OP THE
 REPRESENTATIVES OP THE GOVERNMENTS OP THE MEMBER STATES
 MEETING IN THE COUNCIL AUTHORIZING THE COMMISSION TO OPEN-
 NEGOTIATIONS WITH THE REPUBLIC OP CAPE VERDE
 THE COUNCIL OP THE EUROPEAN COMMUNITIES AND THE REPRESENTATIVES OP THE
 GOVERNMENTS OP THE MEMBER STATES MEETING IN THE COUNCIL ,
 Having regard to t!he Treaty establishing the European Economic Community ,
 and in particular Article 238 thereof ,
 Having regard to the recommendation from the Commission ,
 Whereas Cape Verde has applied to accede to the ACP-EEC Convention signed
"in Lome on 28 February 1 975 ?
 Whereas the first paragraph of Article JO of the Convention stipulates
 that , subject to the approval of the ACP-EEC Council of Ministers , an
 agreement between the Community and a State whose economic structure
 and production are comparable with those of the ACP States may provide for
 the accession of that State to the Convention ,
 HAVE DECIDED AS FOLLOWS :
                                 Sole Article
 The Commission is hereby authorized to open negotiations for the conclusion
 of an agreement between the European Economic Community and the Republic
 of CAPE VERDE on the accession of that country to the ACP-EEC Convention
 of Lome .
 The Commission shall conduct these negotiations in consultation with the
 Representatives of the Member States and in accordance with the directives
 annexed hereto .
 ---pagebreak--- DIRECTIVES RELATING TO THE NEGOTIATIONS WITH THE REPUBLIC OF CAPE VERDE
FOR THE CONCLUSION OF AH AGREEMENT ON THE ACCESSION OF THAT COUNTRY TO
THE ACP-EEC CONVENTION OF LOME
1 « The agreement to be concluded shall provide for the accession of Cape
    Verde to the ACP-EEC Convention of Lome ,
2 » The agreement may stipulate the date on which certain of its obligations ,
    in particular concerning trade , would become applicable "to CAPE VERDE.
3» (ECSC products ).
 ---pagebreak---                           D R A P T
Internal Agreement amending the Internal Agreement on the financing
and administration of Community aid signed on 11 July 1975
THE REPRESENTATIVES OF THE GOVERNIiENTS OF THE MEMBER STATES OF THE EURO
PEAN ECONOMIC COMMUNITY MEETING IN THE COUNCIL , •
Having regard to the Treaty establishing the European Economic Community,
hereinafter referred to as the "Treaty",
After consulting the Commission ,
Whereas the Agreements between the European Economic Community and respect–
ingly          signed on           , hereinafter referred to as the
"Accession Agreement provide for the accession of
to ^he ACP-EEC Convention signed in Lome on 28 February 1975 ?
Whereas pursuant to Article 90 of "the Convention the accession of a State
must not adversely affect the advantages accruing to the ACP States signa
tory to the Convention , inter alia from the provisions on financial and
technical cooperation and the stabilization of export earnings ;
Whereas the Member States have now decided to increase by         million
units of account the amounts made available to the European Development
Fond ( 1975 );
Whereas the Internal Agreement on the financing and administration of
                       ι
Community aid signed on 11 July 1975 should therefore be amended ,
HAVE AGREED AS FOLLOWS :
 ---pagebreak---                                   Article 1
Article 1 ( 2) and. ( 3 ) of the Internal Agreement on the financing and
administration of Community aid is hereby amended as follows :
"The Fund shall consist of                    million units of account to he financed
"by the Member States as follows :
    Belgium                    million u.a ,
    Derunark                   million u.a .
   Germany           . . . . • million u. a.
    Prance           . .... million    u.a ,
    Ireland                    million u.a ,
    Italy                      million u.a ,
    Luxembourg                 million u. a ,
    Netherlands                million u.a ,
    United Kingdom             million U. » ct <
 ' The amount stated in paragraph 2 shall be allocated as follows :
 'a)    .... million u.a. for the ACP States , comprising :
 1      .... million u.a. in the form of grants
 1      .... million u.a. in the form of special loans
 1       .... million u.a. in the form of risk capital
 1       .... million u.a . in the form of transfers pursuant to Title II of
               the Convention .
 1 b)    .... million u.a. for the countries and territories and the French
        overseas departments , comprising :
 1       .... million u.a. in the form of grants
 1       .... million u.a. in the form of special loans
 1       .... million uia. in the form of risk capital
 1       .... million u.a . as a reserve .
 1 c)    . ... million u.a. in the form of transfers for the countries and
 1      territories , pursuant to those provisions of the decision which
concern the system for stabilizing export earnings .
p.m . EIB loans .
 ---pagebreak---                             Article 2
This Agreement shall "be approved "by each kember State m accordance with
its own constitutional requirements .   The Government of each Member State
shall notify the Secretariat of the Council of the European Communities
when the procedures required for its entry into force have been completed .
This Agreement shall enter into force , provided that the procedures refer
red to in the preceding paragraph have been completed , at the same time
as the Accession Agreements .
                             Article 3
This Agreement , dratm up in a single original in the Danish , Dutch",
English , French , German and Italian languages , each of these texts being
equally authentic , shall be deposited in the archives of the Secretariat
of the Council of the European Communities , which shall transmit a certi
fied copy to each of the Governments of the Signatory States .


title: RECOMMENDATION FOR A COUNCIL DECISION ON THE CONCLUSION OF THE SECOND PROTOCOL ON FINANCIAL COOPERATION BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE SOCIALIST FEDERAL REPUBLIC OF YUGOSLAVIA

text:
1.9.87                           Official Journal of the European Communities                           No C 235/5
                                                        II
                                                (Preparatory Acts)
                                          COMMISSION
       Recommendation for a Council Decision on the conclusion of the Second Protocol on financial
       cooperation between the European Economic Community and the Socialist Federal Republic of
                                                   Yugoslavia
                                               COM(87) 347 final
                          (submitted by the Commission to the Council on 15 July 1987)
                                                 (87/C 235/05)
       THE COUNCIL OF THE EUROPEAN COMMUNITIES,
       Having regard to the Treaty establishing the European Economic Community, and in
       particular Article 238 thereof,
       Having regard to the recommendation from the Commission,
       Having regard to the assent of the European Parliament,
       Whereas the Protocol on financial cooperation between the European Economic Community
       and the Socialist Federal Republic of Yugoslavia signed on . . . should be approved,
       HAS DECIDED AS FOLLOWS:
                                                     Article 1
       The Second Protocol on financial cooperation between the European Economic Community
       and the Socialist Federal Republic of Yugoslavia is hereby approved on behalf of the
       Community.
       The text of the Protocol is attached to this Decision.
                                                     Article 2
       The President of the Council shall give the notification provided for in Article 16 paragraph 2
       of the Protocol.
                                                     Article 3
       This Decision shall enter into force on the day following its publication in the Official Journal
       of the European Communities.
 ---pagebreak--- No C 235/6                            Official Journal of the European Communities                                   1.9.87
             Second Protocol on financial cooperation between the Socialist Federal Republic of Yugoslavia
                                         and the European Economic Community
             THE COUNCIL OF THE EUROPEAN COMMUNITIES,
             on the one part, and
             THE FEDERAL EXECUTIVE COUNCIL OF THE ASSEMBLY OF THE SOCIALIST FEDERAL
             REPUBLIC OF YUGOSLAVIA,
             on the other part,
             REAFFIRMING their resolve to implement, in the framework of the Mediterranean policy of
             the enlarged Community, cooperation which will contribute to the economic development of
             Yugoslavia and promote the strengthening of relations between the Community and Yugo-
             slavia,
             ANXIOUS to pursue to this end the financial cooperation provided for in the Cooperation
             Agreement,
             HAVING DECIDED to conclude this Protocol and to this end have designated as their
             Plenipotentiaries:
                         Article 1                               including its feeder roads and the remaining part shall be
                                                                 used to finance other development projects.
The Community shall participate, within the framework
of financial cooperation provided for in the Cooperation
Agreement between the EEC and the Socialist Federal              3. (a) Projects shall be examined for eligibility and loans
Republic of Yugoslavia, and according to the conditions                  granted in accordance with the detailed rules,
specified in this Protocol, in the financing of projects                 conditions and procedures laid down by the
designed to contribute to the economic development of                    Bank's Statute.
Yugoslavia and in particular those of common interest to
Yugoslavia and the Community.                                       (b) Loans granted by the Bank shall be subject to
                                                                         terms as to duration established on the basis of
                                                                         the economic and financial characteristics of
                         Article 2                                       projects, also taking into account the conditions
For the purposes specified in Article 1 and for a period                 obtaining on the capital markets on which the
expiring on 30 June 1991, an aggregate amount of 550                     Bank procures its resources.
million ECU may be committed in the form of loans
from the European Investment Bank, hereinafter called               (c) The interest rate shall be determined in
'the Bank' granted from its own resources in accordance                  accordance with the Bank's practice at the time of
with the arrangements, conditions and procedures laid                    signature of each loan contract.
down in its statute.
                                                                                Article 4
                         Article 3
                                                                 1. The amounts to be committed each year shall be
1. The amount fixed in Article 2 shall be used to part           distributed as evenly as possible throughout the period of
finance specific capital projects submitted to the Bank          application of this Protocol. During the initial period of
with the agreement of the Socialist Federal Republic of          application, however, a proportionately higher amount
Yugoslavia by banks or organizations of associated               may, within reasonable limits, be committed.
labour having their seat in Yugoslavia.
                                                                 2. Any funds not committed by the end of the period
2. The major part of this amount shall be used to                referred to in Article 2 may be used, until exhausted. In
finance projects concerning transport infrastructures of a       that event the funds shall be used under the same
common interest, in particular the transyugoslav highway         conditions as provided for in this Protocol.
 ---pagebreak--- 1.9.87                                    Official Journal      European Communities                             No C 2 3 5 / 7
                           Article 5                                                        Article 10
Loans granted by the Bank for the execution of projects            Yugoslavia shall take the necessary measures to ensure
may take the form of co-financing in which, in                     that interest and all other payments due to the Bank in
particular, Yugoslav banks and the credit bodies and               respect of loans granted in the context of financial
institutions of Member States or of third States, or inter-        cooperation are exempted from any taxes or levies
national finance organizations, would take part.                   imposed by the federal authorities, the republics, the
                                                                   autonomous provinces or the communal authorities.
                           Article 6                                                        Article 11
Organizations of associated Labour established in                  The provision of a guarantee by the Socialist Federal
accordance with Yugoslav law, whether or not including             Republic of Yugoslavia or other sufficient guarantees
foreign participations, shall have access on equal terms to        shall be required by the Bank as a condition for granting
the financing earmarked for financial cooperation.                 loans.
                                                                                Article 12
                           Article 7
                                                                   Throughout the duration of the loans accorded pursuant
The execution, management and maintenance of projects              to this Protocol, Yugoslavia shall undertake to take all
financed within the framework of financial cooperation             necessary measures in conformity with its national
between the Socialist Federal Republic of Yugoslavia and           legislation to make available to debtors enjoying such
the European Economic Community shall be the                       loans and to guarantors of the loans the foreign currency
responsibility of the beneficiaries referred to in Article 3       necessary for the payment of interest, commission and
paragraph 1.                                                       other charges and repayment of the principal.
The Bank shall ensure that its loans are utilized in                                        Article 13
accordance with the agreed allocations and under                   The results of financial cooperation may be examined
optimum economic conditions.                                       within the Cooperation Council.
                                                                                Article 14
                           Article 8
                                                                   One year before the expiry of this Protocol, the
All natural and legal persons coming within the scope of            Contracting Parties shall examine what arrangements
the Treaty establishing the European Economic                       could be made for financial cooperation during a
Community and all legal persons of the Socialist Federal           possible further period.
Republic of Yugoslavia may participate on equal terms in
tendering procedures and other procedures for the                                            Article 15
award of contracts likely to be financed. Such legal
                                                                   This Protocol shall be annexed to the Cooperation
persons formed in accordance with the law of a Member
                                                                   Agreement between the European Economic Community
State of the EEC or of the Socialist Federal Republic of
                                                                    and the Socialist Federal Republic of Yugoslavia signed
Yugoslavia must have their registered offices, their
                                                                    in Belgrade on 2 April 1980.
 administrative head offices or their principal
establishments in the teritories in which the Treaty                                         Article 16
 establishing the EEC is applied or in the Socialist Federal
 Republic of Yugoslavia; however, where only their                  1. This Protocol shall be subject to approval in
 registered ofices are in those territories or in the Socialist     accordance with the Contracting Parties' own pro-
 Federal Republic of Yugoslavia, the activities of such             cedures; the Contracting Parties shall notify each other
 legal persons must be effectively and continuously linked          that the procedures necessary to this end have been
with the economy of those territories or of the Socialist           completed.
 Federal Republic of Yugoslavia.                                    2. This Protocol shall enter into force on the first day
                                                                    of the second month following the date on which the
                                                                    notifications provided for in paragraph 1 have been
                           Article 9                                given. .
 Yugoslavia shall apply to contracts awarded for the                                         Article 17
 execution of projects financed within the framework of
 financial cooperation fiscal and customs arrangements at           This Protocol is drawn up in two original copies in the
 least as favourable as those applied in respect of most            Danish, Dutch, English, French, German, Greek, Italian,
 favoured state or most favoured international organiz-             Portuguese, Spanish and Serbo-Croat languages, each of
 ation in the field of development.                                 these texts being equally authentic.


RECOMMENDATION FOR A DECISION OF THE COUNCIL CONCERNING THE OPENING OF NEGOTIATIONS WITH SWITZERLAND, SWEDEN, AUSTRIA, PORTUGAL, ICELAND, NORWAY AND FINLAND WITH A VIEW TO MODIFYING ARTICLE 3 OF PROTOCOL NO 2 OF THE AGREEMENTS BETWEEN THE COMMUNITY AND EACH OF THESE COUNTRIES


title: COMMISSION COMMUNICATION TO THE COUNCIL on the negotiation of the third Financial Protocol under the EEC - Turkey Association Agreement#RECOMMENDATION FOR A COUNCIL DECISION concerning the conclusion of a Financial Protocol between the European Economic Community and Turkey

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (77) 307
Vol. 1977/0103
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak---        COMMISSION OF THE EUROPEAN COMMUNITIES
                         I
                                                              COM(77)307 final.
                                                              Brussels , 4 July 1977 *
                    :                            '              1    1
                                                                \
                             t                   •                .
                           COMMISSION COMMUNICATION TO TEE COUNCIL
                  on the negotiation of the third Financial Protocol under
                           the EEC - Turkey Association Agreement
                           RECOMMENDATION FOR A COLTO IL DECISION
                concerning the conclusion of a Financial Protocol between
                       the European Economic Community and Turkey
COX ( 77 ) 307 final .
 ---pagebreak---                      E&planator.T Memorandum
 J.o     The negotiations for a thi^l financial nrot^nol in th^ oo-;,t «:ct
 of the Association Agroetren'': h~twp«~! the F330 and Te rkey w^r.-e compl oted o
 3 February 1977 „ As the Gornmu.nit -r'f-i d«1 « nation has indicate'] its
 agreement ad               the Commission crj/bsnitted the result 3 of the
negotiations to tho Oopno? X which arirsroved then at its meeting on
8 March 1977o The protocol has been signed on. 12 Way .1 077 »
2C      With a view to the conclusion of this protocol on behalf of the
Comnunitj the Commission is requested, to approve the draft cominuni cation
to the Couno.il on the negotiations and the recommendation for a Council
decision to conclude the protocol®
 ---pagebreak---                  COMMISSION COMMUNICATION TO THE COUNCIL
        on the negotiation of the third Finanoial Protocol under
        the EEC-Turkey Association Agreement
 1,   By a Deoision of 29 November 1976 f the Council authorized the
 Commission to open negotiations with the Republic of Turkey for the
 conclusion of the third Financial Protocol under the EEC-Turkey
 Association Agreement and issued the directives for those negotiations ..
 The negotiations with the Turkish Delegation took place within the
 Council of Association .   They were completed on 3 February 1977c
 The Turkish delegation indicated its approval of the content of the
 texts of the draft Protocol and the Community declaration concerning
 the European unit of aocount .   The Community delegation indicated
 its approval ad referendum .   These texts are attached to this
 Communication .
2.    In order to enable the Protocol to be signed at -an early date ,
the Commission submitted the draft texts to the Council on 8 Jiarch 1977
proposing that it take the necessary steps to enable the signature
to take place as soon as possible .    The Drotoool has been signed on 1 ?
May 1977 .
In order that this Protocol may be concluded on behalf of the Community
the Commission is transmitting to the Council herewith a recommendation
for a decision concluding the Protocol , to which is annexed the
Community declaration .
The Commission also recommends that the representatives of the
governments of the Member States , meeting in the Council , take the
steps required .for the implementation of the ratification , accept one e
or approval procedures laid down in Article 16 ( l ) of the Protocol .
 ---pagebreak---                             RECQ MMDATION
                                 for a
                           GOQNCIL DECISION
 concerning the conclusion of a Financial Protocol between the European
 Eoonomio Community and Turkey
 THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
 Having regard to the Treaty establishing the European Economic
 Community, and in partioular Article 238 thereof .
 Having regard to the recommendation from the Commission ,
 Having regard to the Opinion of the European Parliament ,
Whereas the Financial Protocol between the European Economio
 Community and Turkey ,
 signed at    Brussels              on     12 Kay 1977
 should be conoluded ,
HAS DECIDED AS FOLLOWS :
                               Artide 1
The Financial Protocol between the European Economic Community and Turicey,
is hereby approved on behalf of the Community.
The text referred to in the first subparagraph is annexed to this Decision .
                              Article 2
The President of the Council shall oanry out , on behalf of the Ccnunui-.it .v ,
the notification procedure provided for in Article 16 ( l ) of the Protocol .
Done at                                     19
                                                           ?or the Council
                                                          The Prraiaent
 ---pagebreak---           FINANCIAL PROTOCOL
BETWEEN THE EUROPEAN ECONOMIC COMMUNITY
              AND TURKEY
 ---pagebreak---  HIS MAJESTY THE KING OP THE BELGIANS ,
 HER MAJESTY THE QUEEN OF DENMARK ,
 THE PRESIDENT OP THE FEDERAL REPUBLIC OF GERMANY ,
 THE PRESIDENT OP THE FRENCH REPUBLIC ,
 THE PRESIDENT OP IRELAND .
 THE PRESIDENT OP THE ITALIAN REPUBLIC ,
 HIS ROYAL HIGHNESS THE GRAND DUKE OF LUXEMBOURG ,
 HER MAJESTY THE QUEEN OP THE NETHERLANDS ,
 HER MAJESTY THE QUEEN OP THE UNITED KINGDOM OF GREAT BRITAIN
 AND NORTHERN IRELAND ,
 and ,
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
                         of the one part ,
THE PRESIDENT OP THE REPUBLIC OP TURKEY ,
                        of the other part ,
CONSCIOUS of the need to promote the accelerated development
of the Turkish economy with a view to facilitating the
pursuit of the objectives of the Agreement establishing an
Association between the European Economic Community and
Turkey ,
HAVE DESIGNATED as their Plenipotentiaries :
CEE /TR / e 2
 ---pagebreak--- HIS MAJESTY THE KING OP THE BELGIANS :
HER MAJESTY THE QUEEN OP DENMARK :
THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY
THE PRESIDENT OP THE FRENCH REPUBLIC :
THE PRESIDENT OF IRELAND :
THE PRESIDENT OF THE ITALIAN REPUBLIC :
 ---pagebreak---   HIS ROYAL HIGHNESS THE GRAND DUKE OF LUXEMBOURG ;
  HER MAJESTY THE QUEEN OF THE NETHERLANDS t
  HER MAJESTY THE QUEEN OF THE UNITED KINGDOM OF GREAT BRITAIN
  AND NORTHERN IRELAND ; '
 THE COUNCIL OF THE EUROPEAN COMMUNITIES ;
 THE PRESIDENT OF THE REPUBLIC OF TURKEY ;
 WHO , having exchanged their Full Powers s found in good and
 due form ,
HAVE AGREED AS FOLLOWS :
CEE /TR / e
 ---pagebreak---                               ARTICLE 1
        Within the framework of the Association between the
European Economic Community and Turkey , the Community shall
participate on the terms set out in this Protocol in
measures designed to promote , by efforts additional to
those made by Turkey itself , the development of Turkey .
                              ARTICLE 2
1.          For the purposes specified in Article 1 , and for a
   period expiring on 31 October 1981 , an aggregate amount
   of 310 million European units of account ( EUA ) may be
   committed as follows :
   ( a ) 90 million EUA in the form of loans from the
         European Investment Bank , hereinafter called the
         " Bank", granted from its own resources ;
   ( b ) 220 million EUA in the form of loans on special
         terms granted by the Bank acting on instructions
         from the Community .
2.          Capital projects shall be eligible for financing
   which have been submitted to the Bank by the Turkish
   State or , with the latter' s agreement , by an authority
   or by public or private undertakings having their seat or
   a place of business in Turkey which :
                                                        CEE /TR / e
 ---pagebreak---      M           to increase the productivity of the Turkish
           economy and , in particular , aim to pro-ride Turkey
           with & better economic infrastructure , higher
           agricultural output , and modern 8 efficiently-run
           undertakings in the industrial and service sectors
           whether they are publicly or privately managed ;
     ( b ) further the realization of the objectives of the
           Association Agreement ;
                         ft
     ( c ) are part of the Turkish Development Plan in
           force .
 3.         With respect to the choice of capital projects
    within the framework of the above provisions :
     ( a ) only individual projects may be financed ;
    ( b ) as a general rule , capital projects which are to be
           carried out on Turkish territory may * in principle , be
           financed in all the sectors of the economy ;
    ( c ) special consideration shall be given to projects
           which could serve to improve Turkey 's balance of
           payments .
 I*         Examination of the eligibility of projects and the
    granting of loans shall be undertaken in accordance with
    the detailed rules , conditions and procedures laid
    down by the Bank 's Statute .
CEE/ TR /® 6
 ---pagebreak---                            ARTICLE 3
1.       The amounts to be committed each year shall be
   distributed as evenly as possible throughout the period of
   application of this Protocol . During the initial period
   of application , however , a proportionately higher amount
   may , within reasonable limits ., be committed .
2.       Any funds not committed may ., by the end of the period
   referred to in Article 2(1 ), be used , until exhausted . In
   that case , the funds shall be used in accordance with the
   same arrangements as provided for in this Protocol .
                           ARTICLE 4
1.       The loans may be granted through the intermediary of
   the State or appropriate Turkish bodies , on condition
   that they onlend the amounts to the recipients on terms
   decided , by agreement with the Bank , on the basis of the
   economic and financial characteristics of the projects
   for which they are intended .
2.       Loans granted by the Bank from its own resources
   shall be subject to terms as to duration established on
   the basis of the economic and financial characteristics
   of the projects . The interest rate shall be that applied
   by the Bank at the time of signature of each loan contract .
3f       Loan3 on special terms shall be granted to the
   Turkish State for forty yeafs with postponement of
   amortization of ten years and at an interest rate of
   2„5£ per annum .
                                                     CEE / TR / e 7
 ---pagebreak---      !f&) help to increase the productivity of the Turkish
            economy anclf, in particulars aim to provide Turkey
           with a better economic infrastructure , higher
           agricultural output , and modern 0 efficiently-run
           undertakings in the industrial and service sectors
           whether they are publicly or privately managed ;
     ( b ) further the realisation of the objectives of the
           Association Agreement ;
                            a
     ( e ) are part of the Turkish Development Plan in
           force .
 3.          With respect to the choice of capital projects
    within the framework of the above provisions :
     ( a ) only individual projects may be financed ;
     ( b ) as a general rule , capital projects which are to be
           carried out on Turkish territory may * in principle , be
           financed in all the sectors of the economy ;
    ( c ) special consideration shall be given to. projects
           which could serve to improve Turkey 's balance of
           payments .
 t.         Examination of the eligibility of projects and the
    granting of loans shall be undertaken in accordance with
    the detailed rules , conditions and procedures laid
    down by the Bank 's Statute .
CEE/ TR / ® 6
 ---pagebreak---             Tfcs Turkish Stat® shalA ensure thsv: rep            'oy
      beneficiaries rshioh ar« not iBBP.^dia^sl:? r?.seded by fch-s Sta^«
      foy the amortisation of loans from the Bank are used to
      finance capital projects wifr-hin th® meaning of
      Article 2(2 ). It shall notify the Bank each year of the
      use of these amounts . This provision shall also apply
      to projects carried out under the earlier Financial
      Protocols .
 *5 „       Loaas accorded by the Bank from its own resources
      shall be used primarily to finance projects showing a
      normal return ; loans on special terms shall be used
      primarily to finance indirect or long-term return
      projects .
                               ARTICLE 5
        The loans may be used to cover expenditure on imports
 or the domestic expenditure required for - carrying out
 approved capital project s „ including expenditure on planning B
 on the services of consulting engineers and on technical
 assistance .
                               ARTICLE 6
        Aid from the Bank for the execution of projects may ,
with the agreement of Turkey , take the form of co-financing .
                               ARTICLE 7
       Undertakings whose risk capital comes wholly or partly
from countries of the Community shall have access to the
finance provided for in this Protocol on the same conditions
as undertakings frith national capital .
CEE /TR / e 8
 ---pagebreak---                                   ARTICLE 8
           The execution , management and maintenance of schemes
which are the subject of financing under this Protocol shall
be the responsibility of Turkey or of the other beneficiaries
referred to in Article 2(2 ).
           The Bank shall ensure that its financial aid is expended
 in accordance with the agreed allocations and to the best
economic advantage .
                                  ARTICLE 9
1.              All natural and legal persons of the Republic of
     Turkey or of Member States of the Community may
     participate on equal terms in tendering procedures and
     other procedures for the award of contracts financed by
     loans .
2.              Turkey shall apply to contracts awarded for the
     execution of projects financed under this Protocol fiscal
    and customs arrangements at least as favourable as that
    applied in respect of other international organizations .
                                 ARTICLE 10
          Turkey shall ? take all necessary measures to ensure that
interest and all other payments due to the Bank in respect of
loans granted under this Protocol are exampted from any
national or local tax or levy .
                                    > • 'i    /i ' -  '         ■
v r '! . ><; "J o V .. :!
                                         .? i .t vi:/'-     nr'
                                               r . îJi M ;
                                                                  ! -
                                            I •;?: - x'-< r
                                                                      CEE/TR / e 9
 ---pagebreak---                               ARTICLE 11
         Ifher® a loan is accorded to a beneficiary other than the
- Turkish State , the provision of a guarantee by the latter
   KtAy be required by the Bank as a condition of the grant of
   the loan .
                            . ARTICLE 12
         Throughout the duration of the loans granted pursuant
   to this Protocol , Turkey shall undertake to make available
   to debtors enjoying such loans and to the guarantors of the
   loans the foreign currency necessary for the payment of
   interest , commission and other charges and for the repayment
   of capital .
                              ARTICLE 13
         The results of financial co-operation may be examined
  within the Association Council set up by Article 6 of the
  Agreement establishing an Association between the European
  Economic Community and Turkey .
                              ARTICLE 11
         The Contracting Parties will 9 one year before the expiry
  of this Protocols consider      what       provisions relating
  to financial assistance might be adopted for a later period .
                              ARTICLE 15
        This Protocol shall be annexed to the Agreement
  establishing an Association between the European Economic
  Community and Turkey .
 CETS/TR/g 10
 ---pagebreak---                             ARTICLE 16
1.       This Protocol shall be subject to ratification ,
   acceptance or approval in accordance with the Contracting
   Parties * own procedures ; the Contracting Parties shall
   notify each other that the procedures necessary to this
   end have been completed .
2.       This Protocol shall enter into force on the first
   day of the second month folloxiring the date on which the
   notifications provided for in paragraph 1 have been given .
                            ARTICLE 17
     This Protocol is drawn up in two copies in the Danish ,
Dutch , English , French , German , Italian and Turkish languages
each of these texts being equally authentic .
                                                       CEE / TR / e 1
 ---pagebreak---                                                 ANNEX
    Declaration of the European Economic Community
        on Article 2 of the Financial Protocol
     The European unit of account used to express the
amounts specified in Article 2 of the Financial Protocol
is defined as t>he sum of the following amounts in the
currencies of the Member States of the Community :
     German mark            0.828
     Pound sterling         0.0885
     Prench franc           1.15
     Italian lira         109
     Dutch guilder          0.286
     Belgian franc          3.66
     Luxembourg franc       0.14
     Danish krone           0.217
     Irish pound            0.00759
     The value of the European unit of account in any
given currency is equal to the sum of the equivalent in
that currency of the amounts of currency referred to in
paragraph 1 . It is calculated by the Commission using
daily market exchange rates .
     The daily rates of exchange in the various national
currencies are published in the Official Journal of the
European Communities .
                                                CEE / TR /e 13
 ---pagebreak---                           FINANCIAL RECORD
                         for the 1977 Budget
PART 1 s    INTERVENTION APPROPRIATIONS
            ( for existing and new projeots )
lo   RELEVANT BUDGET HEADING CODE
     Article 962
2.   TITLE OP BUDGET HEADING
     " Financial cooperation with oertain non-member oountries"
3.  LEGAL BASIS
    Ajrticle 238 of the EEC Treaty
4.  DESCRIPTION , OBJECTIVE(S ) AND JUSTIFICATION OF THE PROJECT
    Third financial protocol between EEC and Turkey , concluded
    3 February 1977 , annexed to the Association Agreement between
    EEC and Turkey .
5.  APPROPRIATION ( in u.a.)
    No commitment will be made in the 1977 Budget under the head of
    the financial ja.id provided for in the financial protocol ( the
    budget heading concerned is a token entry ) o The budget appropriations
    may be used only from the 1978 financial year onwards , after the
    protocol has been ratifiedo      This protocol provides for a sum of
    220 million EXJA to be committed up to 31 Ootober 1981 from budget
    appropriations ( with an additional 90 million HXJA in loans from the
    ECB)o The breakdown of this sum will be decided annually in the
    course of the budget nrocodurso
6,  TYPE OF CONTROL TO BE APPLIED
  . As li id down in the Financial Regulation of <! }' April 1973 aoclicable
    to t : e General Budget of the PJarooean Communities ,,
 ---pagebreak---                    .'•ÄAiVÄtW.X' - » -.».– «■«/ - '4-.IMIW1IIH L-j|»«fcr ~ . A.M* «•-» W «-».
                                                            - 2 -
Bo PART 2 s ADDITIONAL DATA TO B3B PROVIDED FOR A MEM PROJECT
   7.   COST OP THE PROJECT ( FOR TOE WHOLE OP ITS EXPECTED DURATION)
        220 million SUA charged against the Community Budget for the
        whole duration of application of the protocol , i 0 e . up to
        31 October 1981 .
   80   INFORMATION REGARDING STAFFING AND THE APPROPRIATIONS FOR
        ADMINISTRATIVE EKPfNDITURE NBCESSARY FOR THE IMPLEMENTATION
        OF THE PROJECT
        The project will be implemented within the framework of the
        Commission 's establishment plan »
   9,   PROJECT FINANCED FROM;
        Th9 financial aid for the total duration of the financial
        protocol will be financed from Community Budget appropriations
        (220 million ELIA) and EIB own resouroes (-90 million EUA).
        The budget appropriations will be made in the form of special
        loans *


RECOMMENDATION FOR A COUNCIL DECISION ON THE CONCLUSION OF A PROTOCOL ON FINANCIAL COOPERATION BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE STATE OF ISRAEL


title: RECOMMENDATION FOR A COUNCIL DECISION on the conclusion of an Agreement between the European Economic Community and the Arab Republic of Egypt for the supply of skim milk powder as food aid (submitted to the Council by the Commission)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (74) 1991
Vol. 1974/0323
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                     COM(74) 1991 final
                                                     Brussels , 3 December 1974
                             RECOMMENDATION
                         FOR A COUNCIL DECISION
               on the conclusion of an Agreement "between
                  the European Economic Community and
                       the Arab Republic of Egypt
            for the supply of skim milk powder as food aid
              (submitted to the Counoil "by the Commission)
COM (74) 1991 final
 ---pagebreak---  THE COUNCIL OP THE EUROPEAN COMMUNITIES , \
 Having regard to "the Treaty establishing tho European Economio Community
 and in particular Artioles 113 f 114 and 228 thereof ;
Having regard to the Recommendation from the Commission ;
                                        *
Whereas the Council in Regulation ( EEX3 ) no . 1326/74 of 11 July 1974 on the
 supply of skim     milk powder aa food aid decided to make 450 ton
nes   of skimi   milk powder available to the Arab Republic of Egypt .
HAS DECIDED :
                                    / rtj.clo 1
An Agreement betwoon the European Economic Community and the Arab Republic of Egypt
for the supply of skim      milk powder as food aid is hereby concluded on
behalf of the European Economic Community . The te:ct of the Agreement is
annexed to this Decision .
                                    Article 2
                                    »1 . in r rr nrrr«iili
The President of the Council is authorized to designate the persons - empowered
to sign the Agreement and to confer on them tho powers required in order to
bind the Community .
Done at Brussels ,
                                                           For the Counoil
                                                            The President
 ---pagebreak---                   –         \
                              \
                                            r
          BETirEEW THE EUROPEAN ECOITOLUC COISIUIJITT
          AND   ARAB REPUBLIC OP EGYPT
ON THE SUPPLY OP FOOD AID IN THE FOHM OP   SKIM MILK POWDER .
                             \
 ---pagebreak--- THE COUNCIL OP THE EUROPEAN COMMUNITIES .
                                                          of tlie one part .
THE GOVERNMENT CP THE ARAB REPUBLIC OP EGYPT
                                                          of "the other part .
                                                t
HAVE DECIDED to conclude this Agreement and to this end have designated at
their plenipotentiaries :
THE COUNCIL OF THE EUROPEAN COMMUNITIES :
THE G0VERIJM35T CP THE ARAB REPUBLIC OF EGYPT :    >
VniO HAVE AGREED A3 FOLLOWS :    v
 ---pagebreak---                                      - 2 -
                                  ARTICLE T
 The European Economic Community shall supply by way of gift to the
Arab Republic of Egypt                      ( hereafter referred to as
 "the recipient country") a quantity of         450 tonnes of skim.     milk powder .
                                     t
The quality and packaging conditions are specified in Annex I which foraa an
integral part of the present Agreement .              '
                                  Amors n
Deliveries Khali be effected under tho arran^ciuc-nta provided in Annex II
which forms an integral p~rt of the present / grcer-irnt .
                                 ΑΤ?ΊΊϋΤ.Ε ΠΙ
The recipient country under'takes . to i.ir.ko all nocuc&avy arrangements for tha
transport and instu'pjticc of the protects froii' joint of de 1 ivc-ry to placoa cl'
destination .
It undertakes to excroiuo the greatest care to ensure that tho tendering
arrangements for csa transport do not prejudice tho free plr.y of fair com
petition . Any problems arising in thin connection shall bo tho subject of
consultations under Article VIII of the present Agreement .
                                  ARTIO.M? IV
The recipient country undertakes to use tho product received as aid for pur
poses of consumption and to distributo it free of charge to the people in need .
 ---pagebreak---                                  . / ÏÏTTCLE V
The Contracting Parties undertake to implement this Agreement in such a way
as to avoid any" prejudice to the normal structure of national production
and international trado . To this end they shall take any measures required
to ensure that supplies as aid are in addition to and do not replp.ee business
transactions which might reasonably be expected in the absence of fcuch suppli.
                                                    9
                                   ARTICT.^VI
                *
The recipient country shall take all steps r squired to prevent :
(i )    the re-export of the product received as aid and also of any product ?.
        reraulting ibtroi'ro.a ;
(ii ) the export , commercially or otherwise , within a period of ci.:: months
        commencing fron the final delivery , cipher of my product procured
        locally of the car, c nature as that resolved as aid , or of any product ;.?
        resulting therefrom .
                                   ART-fOLS VIT
The recipient country undertaker. to inform tho Ei\roperJi Econonric Corxmnity
of how this Agreement is implemented . To this end it shall provide the
Commission of the European Communities with tho following details ;
(i )    Immediately after the unloading of each cargo : ports and dates of
        arrival of vessel ; nature , qriantity and any observations as to the
        quality of tho products unloaded } date on which unloading was completed
 ( ii ) Every three months until the quantities received as aid have been fully
        usedj qiiantities distributed ; number and nature of beneficiaries 5
        places , rates and method of distribution .
 ---pagebreak---                                  - 4 -
                               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
This Agreement ic drawn up in duplicate in the Danish , Dutch , English ,
French , German and Italian languages , each of those texts having equal force .
 ---pagebreak---                                                                                ΛΜΪΙΕΧ Ι
                                     SKIMW3ÛD KTLK POWER
 I. Quality requirements
      (a ) fat content -                         not exceeding 1,5 %
      (b ) moisture content                      not exceeding 4»0 $
     (c )  total acidity (lactic acid )          not exceeding 0,15 % (13° Domic )
     (d )  test for neutralizing agents          negative
      (e)  permitted additives                   nono
                                                         i
     (f )  test for phoephato-sis                negative
     (g )  solubility                            not exceeding 0,5 ral (not less than 99 %)
     (h )  degree of purity                      not loss than disc E ( 15,0 mg )
     (i )  bacteria content                      not exoeeding 50 000 per g
     (k )  strength of colon bacillus            negativo in 0,1 g
     (l )  flavour and smell                     fresh
     (m )  appearance                            white or slightly yellov;ish ,
                                                 absence of impurities and ooloured
                                                 particles
II »
     (a ) containing 25 kilogranvnes net weight
     (b ) composition of packing :
                                                                                2
           (aa ) 4 Kraft p?,per bags of a strength representing at least 70 g per ia ;
                 1 interposed tar-lined paper bag of a strength representing at
                   least 140 g per m2j
                 1 polyethylene inner bag at least 0,66 mm thick , welded or double-
                   bound
     or (bb ) 1 ,,clupak-poly-duplo ,, paper bag of a strength representing at
                   least 50/20/50 per m2j                                                 r
                                                                                4L
                 2 Kraft paper bags of a strength representing at least 70/75 S Per m
                 1 polyethylene inner bag at least 0,10 mm (thick welded or double-
                   bound )
                                                                                •Α
 ---pagebreak---                                    2
                                                                         2
or (co ) 1 Kraft    paper "bag of a strength representing at least 70 g/m~
          1 Kraft   paper bag with a polyethylene layer of a strength
            representing at least 80 g + 15 g/i?2
                                                                            2
          3 Kraft   paper "bags of a strength representing at least 70 g/ra
          1 polyethylene inner hag at least 0,06 mm thick , welded or double-
            bound
                                   «
(c ) marking on the packaging in English language^
     SKIMMED MILK POWDER
     GIFT OF THE EUROPEAN! ECONOMIC CGffifiJHITT
     TO THE  ARAB REPUBLIC OF EGYPT
     TO DISTRIBUTE FREE OF CHARGE
 ---pagebreak---                              General provisions
                         '    •    \
                                    \
                                  Article 1
 Delivery shall be effected and risks shall pass from the European Economic
 Community , hereinafter referred to as the EEC , to the recipient country at
                                      «
 the moment at which the goods are put down at the point of exportation
named "by the Commission of the European Communities at the "berth specified
by the recipient country or its agent referred to in Article 2 and under the
terns specified in the following articles . Without prejudice to Artilrics 7
and 8 the EEC Ghall "bear all cods up to delivery and the recipient country
those beyond such delivery .
                                   Article 2
The EEC shall appoint an agent to impler.ip.nt tlio provisions of tho i.rocont
Annex - or for each consignment - whose name a>;d address it shall          knot.?)
to tho recipient country immediately following his appointment .
The recipient country shall appoint an agent iii the port or ports of chipMsvl ,
whose name and address it shall make known to the EEC with all despatch cud
if possible before the appointment of egont of the EEC .
                                   Article 3
Before implementing tho procedures for appointing tho agent of the EKC
referred to in Artiole 2 , the Commission of the European Communities and
the recipient country shall jointly establish the period during which
delivery must begin .
              Obligations of the European Economic Community
                                   Article 4
Should the EEC not be in a position to carry out delivery on the date , and
 ( if applicable ) on the schedule as provided in Artiole 6 , all oosts arising
for the recipient country – for example demurrage void freight and dead freight
shall be borne by the EEC .
 ---pagebreak---  The oh&rgaa and "the arrangement a relating 'to demurrage Xr1& down In tha
 contract between the recipient 'country and tho carrier nrunt • have "been agreed
 in advance by the recipient country and the agent of the EEC .
The other costs referred to in tho first paragraph shall only bo refunded by
the EEC if they have been paid by tho recipient country with tho approval of
the EEC .                                                '
                                                                                f
                                                     Article 5
Should it prove impossible for th3 EEC to supply all or part of the fp ocls
on the date and within the time-lir.iits provided for in Article 6 and without
prejudice to the provisions of Article 4 , a new date and a nc-w time-linit
shall be agreed between tho agents of tho EEC and of tho recipient country
for the delivery of all the goods or of tho vndoliverod part thereof .
                 Obli/'-itions of the recipient corn-fcrv
                      V- .».»■* 4···. I I». II ■ *« ––   «ι »Μ |Ι ι I »| ι· «Ν -*! I Μ ιΜι ■ I Τ | η «««·' «»?« · *>*»
                                                     )
                                                     Article 6
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 3 .
The agent of the recipient country shall inform the EEC of this date
immediately 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 dolivery .
He shall establish with the agent of the EEC the schedule on whioh delivery
shall take place .
 ---pagebreak---         .    -                Article 7
 Should tho reoipient country be unable to begin loading on the date provided
 for in Article 6 , paragraph 1 , the agent of the recipient country shall inform
the agent of the EEC without delay#
 In this event a new date for the commencement of delivery and ( if applicable )
 a new schedule oould be agreed between the agents of the EEC f.nd of the
 recipient country . Tho cocts arising from this flelay shall in till cases except
 force majeure be borne by the recipient counxry .
Should tho nev; date provided for in paragraph 2 be ir.ore than 30 cles.r dr.yr?
after the date for loading provided for in Article 6 , paragraph 1 , the
may dispose of the good3 without prejudice to its coroatment under Article; 1
of this Agreement .
                              Article 8
If tho quantity made available for loading on a vcosel cannot hb put on
board in its entirety , the recipient ocuntry clml inform tho JSC ao soon
as possible and not later than fifteen clear dpy&i after loading h&b bacn
completed whether it intent's to accept or to renounce tho balance .
In the former cane the provisions of Article 7 » paragraphs 2 and 3 , Khali
apply to the balance , if delivery has not yet taken place .
In the latter case tho EEC may consider that it hao discharged its coir.Jij tmunt
to the recipient countiy under Article 1 of this Agreement and Ehall bear
the costs resulting from such renunciation .
In any event after the expiry of an interval of fifteen clear dsys and in
the absence of any notice on the part of the reoipient country , tho renun
ciation shall be deemed to have taken place .
                              Article 9
Upon delivery of the goods , the recipient country shall hand to the agent of
the EEC a certificate of acceptance stating the port of shipment , date of
acceptance , the nature and quantity of tho goods acoepted and including any
comments on the quality of the goods and send copy thereof to the Commission
of tho European Communities .


RECOMMENDATION FOR A COUNCIL DECISION CONCERNING THE CONCLUSION OF AN ADDITIONAL PROTOCOL TO THE COOPERATION AGREEMENT BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE SOCIALIST FEDERAL REPUBLIC OF YUGOSLAVIA ESTABLISHING NEW TRADE ARRANGEMENTS