COOPERATION AGREEMENT between the European Economic Community and the Republic of Finland on research in the field of wood, including cork, as a renewable raw material

THE EUROPEAN ECONOMIC COMMUNITY,

hereinafter referred to as ´the Community',

and THE REPUBLIC OF FINLAND,

hereinafter referred to as ´Finland',

both hereinafter referred to as the ´Contracting Parties',

WHEREAS the Community and Finland concluded a Framework Agreement for scientific and technical cooperation which entered into force on 17 July 1987;

WHEREAS, by Decision of 10 June 1986, the Council of the European Communities, hereinafter referred to as ´the Council', adopted, for a period of four years from 1 January 1986, a programme in the sector of materials (raw materials and advanced materials), which includes a subprogramme relating to wood, including cork, as a renewable raw material, hereinafter referred to as ´the Community programme';

WHEREAS a comprehensive research and development programme in the field of forest and forest products is being carried out in Finland;

WHEREAS the association of Finland with the Community programme can help to improve the efficacy of the research carried out by the Contracting Parties in the field of wood, including cork, as a renewable raw material and can avoid the useless duplication of efforts;

WHEREAS the Contracting Parties expect to derive mutual benefit from Finland's association with the Community programme,

HAVE AGREED AS FOLLOWS:

Article 1 Finland is hereby associated with the implementation of the Community programme as set out in Annex A.

Article 2 The financial contribution of Finland deriving from its association with the implementation of the Community programme shall be established in proportion to the amount available each year in the general budget of the European Communities for appropriations covering commitments to meet financial obligations of the Commission of the European Communities, hereinafter referred to as ´the Commission', resulting from work to be carried out in the framework of shared cost research contracts necessary to the implementation of the Community programme and from management and administrative operating expenditure for the Community programme.

The proportionality factor governing Finland's contribution shall be given by the ratio between Finland's gross domestic product (GDP), at market prices, and the sum of gross domestic products, at market prices, of the Member States of the Community and of Finland. This ratio shall be calculated on the basis of the last available OECD statistical data.

The amount estimated as necessary to carry out the Community programme, the amount of Finland's contribution and the timetable of the commitment estimates are set out in Annex B.

The provisions and rules governing Finland's financial contribution are set out in Annex C.

Article 3 For Finnish persons and untertakings, the terms and conditions for the submission and the evaluation of research proposals and the terms and conditions for the granting and conclusion of contracts under the Community programme shall be the same as those applicable to persons and undertakings in the Community. In particular, the provisions of the General Terms and Conditions applicable to research contracts within the Community shall apply, mutatis mutandis, to research contracts with Finnish persons and undertakings as far as questions relating to taxation and customs duties and the utilization of research results are concerned.

Article 4 The Commission shall be responsible for the implementation of the Community programme. It shall be assisted by the Management and Coordination Advisory Committee on ´Raw Materials and Other Materials', hereinafter referred to as ´the committee', set up by Council Decision 84/338/Euratom, ECSC, EEC.

The committee shall be enlarged to include two representatives designated by Finland who may be assisted or replaced by one Finnish expert. They shall participate solely in the work of the committee which meets in its variable configuration to accomplish the tasks concerning the Community programme on wood, including cork, as a renewable raw material.

Article 5 Each Contracting Party undertakes, in accordance with its respective rules and regulations, to facilitate the movement and residence of research workers participating in Finland and in the Community in the activities covered by this agreement.

Article 6 The Commission and the Technology Development Centre, Finland, shall ensure the implementation of this agreement.

Article 7 This agreement shall apply, on the one hand, to the territories in which the Treaty establishing the European Economic Community is applied and under the conditions laid down in that Treaty and, on the other hand, to the territory of the Republic of Finland.

Article 8 1. This agreement is concluded for the duration of the Community programme.

Should the Community revise the Community programme, the agreement may be terminated under mutually agreed conditions. Finland shall be notified of the exact content of the revised programme within one week after its adoption by the Community. The Contracting Parties shall notify each other within three months after the Community decision has been adopted if a termination of the agreement is envisaged.

2. This agreement shall be renewed by tacit agreement when the Community adopts a new Community programme, for the duration of the new programme, unless it is terminated by one Contracting Party within three months following the adoption of the new programme.

The provisions of the second subparagraph of paragraph 1 shall remain applicable.

3. Whenever a decision on a Community programme is taken by the Community, Annexes A and B shall be amended in accordance with the Community's decision, unless otherwise agreed upon by the Contracting Parties.

4. This Agreement shall not be regarded as having expired merely because there is a delay in the adoption of a future Community programme.

5. Except as provided in paragraphs 1 and 2, either Contracting Party may at any time terminate this agreement with six months notice. The projects and work in progress at the time of termination and/or expiry of this agreement shall be continued until they are completed under the conditions laid down in the agreement.

Article 9 Annexes A, B and C to this agreement shall form an integral part thereof.

Article 10 This agreement shall be approved by the Contracting Parties in accordance with their existing procedures. Subject to the Contracting Parties having notified each other of the completion of the procedures necessary for this purpose, it shall enter into force on 1 January 1988.

Article 11 This agreement shall be drawn up in duplicate in the Danish, Dutch, English, French, German, Greek, Italian, Portuguese, Spanish and Finnish languages, each of these texts being equally authentic.

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ANNEX A COMMUNITY PROGRAMME IN THE FIELD OF WOOD, INCLUDING CORK, AS A RENEWABLE RAW MATERIAL (1986 to 1989) The following research areas are included in the Community programme:

1.

Wood production 1.1.

Forest-tree breeding and gene resource conservation 1.2.

Protection against damage from biotic and abiotic agents and fire 1.3.

Better use of land resources (coordination action only) 1.4.

Forest inventory (coordination action only) 2.

Wood harvest, storage and transport 2.1.

Organization of harvesting operations and development of harvesting machinery 2.2.

Harvesting, treatment, storage and transport 3.

Wood as a material 3.1.

Properties, protection and improvement of wood and wood-based panels 3.2.

Development of testing and grading procedures 4.

Mechanical wood processing and use of finished wood products 4.1.

Mechanical conversion and manufacturing processes 4.2.

Drying process 4.3.

Use of wood and wood-based materials in construction 4.4.

Other uses of finished products made of wood 5.

Pulp and paper manufacturing and processing and wood chemicals 5.1.

The physical and organic chemistry of wood defibring 5.2.

Chemi-mechanical pulping (high-yield pulping) 5.3.

Pulping processes with low-grade wood 5.4.

Substitutes for wood fibres and material additives 5.5.

Fibre recycling 5.6.

The process of manufacture of paper and board 5.7.

Products derived from wood as a source of chemicals In relation to the research areas set out above:

- the work shall be carried out as shared-cost contract research and coordination and training activities,

- consideration will be given to standardization and prestandardization aspects.

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Kunde: 42637 l000umbe15 ANNEX B FINANCIAL PROVISIONS Article 1 The amount estimated as necessary to carry out the Community programme shall be 10 million ECU.

Article 2 Finland's financial contribution to the execution of the Community programme is estimated to be 216 100 ECU.

Article 3 The timetable of the commitment estimates and of Finland's financial contribution is given in the following table:

Timetable of the commitments estimated as necessary to carry out the Community programme (commitment appropriations) and of Finland's contribution (ECU) Year Commitments for management and administrative operation contracts Total Finland's contribution 1986 1987 1988 1989 341 495 480 205 364 700 380 950 0 7 678 300 685 300 69 050 341 495 8 158 505 1 050 000 450 000 7 380 176 305 22 690 9 725 Grand Total 1 567 350 8 432 650 10 000 000 216 100 EWG:L000UMBE16.96 FF: 0UEN; SETUP: 01; Hoehe: 258 mm; 59 Zeilen; 916 Zeichen;

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Kunde: 42637 l000umbe16 ANNEX C FINANCING RULES Article 1 This Annex lays down the provisions and rules governing Finland's financial contribution referred to in Article 2 of the agreement.

Article 2 At the beginning of each year, or whenever the Community programme is revised so as to involve an increase in the amount estimated as necessary to its carrying out, the Commission shall send to Finland a call for funds corresponding to its contribution to the costs under the agreement.

This contribution shall be expressed both in ECU and in the Finnish currency, the composition of the ECU being defined in Council Regulation (EEC) No 3180/78. The value of the contribution in ECU shall be determined on the date of the call for funds.

Finland shall pay its contribution to the annual costs under the agreement at the beginning of each year and at the latest three months after the call for funds is sent. Any delay in the payment of the contribution shall give rise to the payment of interest by Finland at a rate equal to the highest discount rate obtaining in the Member States of the Community on the due date. The rate shall be increased by 0,25 of a percentage point for each month of delay.

The increased rate shall be applied to the entire period of delay. However, this interest shall be payable only if the contribution is paid more than three months after a call for funds has been made by the Commission.

The financial regulations in force applicable to the general budget of the European Communities shall apply to the management of the appropriations.

Travel costs of Finnish representatives and experts deriving from their participation in the work of the committee referred to in Article 4 of the agreement shall be reimbursed by the Commission in accordance with the procedures currently in force for representatives and experts of the Member States of the European Community and, in particular, in accordance with Council Decision 84/338/Euratom, ECSC, EEC.

At the end of each year, a statement of appropriations for the Community programme shall be prepared and transmitted to Finland for information.

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