PROTOCOL relating to financial cooperation between the European Economic Community and the State of Israel

HIS MAJESTY THE KING OF THE BELGIANS,

HER MAJESTY THE QUEEN OF DENMARK,

THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY,

THE PRESIDENT OF THE FRENCH REPUBLIC,

THE PRESIDENT OF IRELAND,

THE PRESIDENT OF THE ITALIAN REPUBLIC,

HIS ROYAL HIGHNESS THE GRAND DUKE OF LUXEMBOURG,

HER MAJESTY THE QUEEN OF THE NETHERLANDS,

HER MAJESTY THE QUEEN OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,

and

THE COUNCIL OF THE EUROPEAN COMMUNITIES,

of the one part, and

THE STATE OF ISRAEL,

of the other part,

HAVE DESIGNATED as their Plenipotentiaries:

HIS MAJESTY THE KING OF THE BELGIANS:

Renaat VAN ELSLANDE,

Minister for Foreign Affairs;

HER MAJESTY THE QUEEN OF DENMARK:

Jens CHRISTENSEN,

Ambassador,

Permanent Under-Secretary;

THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY:

Hans-Dietrich GENSCHER,

Federal Minister for Foreign Affairs;

THE PRESIDENT OF THE FRENCH REPUBLIC:

Louis de GUIRINGAUD,

Minister for Foreign Affairs;

THE PRESIDENT OF IRELAND:

Garret FITZGERALD,

Minister for Foreign Affairs;

THE PRESIDENT OF THE ITALIAN REPUBLIC:

Arnaldo FORLANI,

Minister for Foreign Affairs;

HIS ROYAL HIGHNESS THE GRAND DUKE OF LUXEMBOURG:

Gaston THORN,

President and Minister for Foreign Affairs of the Government of the Grand Duchy of Luxembourg;

HER MAJESTY THE QUEEN OF THE NETHERLANDS:

Max van der STOEL,

Minister for Foreign Affairs of the Kingdom of the Netherlands;

HER MAJESTY THE QUEEN OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND:

Anthony CROSLAND MP,

Secretary of State for Foreign and Commonwealth Affairs of the United Kingdom of Great Britain and Northern Ireland;

THE COUNCIL OF THE EUROPEAN COMMUNITIES:

Anthony CROSLAND MP,

President in Office of the Council of the European Communities,

Secretary of State for Foreign and Commonwealth Affairs of the United Kingdom of Great Britain and Northern Ireland;

Claude CHEYSSON,

Member of the Commission of the European Communities;

THE STATE OF ISRAEL:

Yigal ALLON,

Deputy Prime Minister and Minister of Foreign Affairs;

WHO, having exchanged their Full Powers, found in good and due form,

HAVE AGREED AS FOLLOWS:

Article 1

The Community shall participate, within the framework of financial cooperation, in the financing of projects designed to contribute to the economic development of Israel.

Article 2

1. For the purposes specified in Article 1, the Community will ask the European Investment Bank (hereinafter referred to as "the Bank") to make available to Israel funds of up to 30 million European units of account. This amount may be committed, for a period expiring on 31 October 1981, in the form of loans granted in accordance with the conditions, detailed rules and procedures laid down by the Bank's Statute.

2. Capital projects helping to increase productivity and to achieve complementarity between the Contracting Parties' economies, and promoting in particular the industrialization of Israel which have been submitted to the Bank by the State of Israel or, with the latter's agreement, by public or private undertaktings having their seat or a place of business in Israel shall be eligible for financing.

3. (a) Examination of the eligibility of the 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.

(b) The conditions governing the amortization of each loan shall be established on the basis of the economic and financial characteristics of the project to be financed.

(c) Loans will carry the same rate of interest as that applied by the Bank at the time of the signature of the loan agreement.

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 by the end of the period referred to in Article 2 (1) shall be used, until exhausted. In that event the funds shall be used in accordance with the same arrangements as provided for in this Protocol.

Article 4

Aid contributed by the Bank for the execution of projects may, with the agreement of Israel, take the form of co-financing.

Article 5

The execution, management and maintenance of schemes which are the subject of financing under this Protocol shall be the responsibility of Israel or the other beneficiaries referred to in Article 2.

The Bank shall ensure that its financial aid is expended in accordance with the agreed allocations and to the best economic advantage.

Article 6

1. Israel shall apply to contracts awarded for the execution of projects financed by the Bank fiscal and customs arrangements at least as favourable as those applied in respect of other international organizations.

2. Israel shall take the necessary measures to ensure that interest and all other payments due to the Bank in respect of loans granted under this Protocol are exempted from any national or local taxes or levies.

Article 7

Where a loan is accorded to a beneficiary other than the State of Israel, the provision of a guarantee by the latter may be required by the Bank as a condition of the grant of the loan.

Article 8

As regards projects and measures financed by the Bank, participation in tendering procedures and other procedures for the award of contracts shall be open, on equal terms, to all natural or legal persons of the Member States and of Israel.

Article 9

Throughout the duration of the loans accorded pursuant to this Protocol, Israel shall undertake to make available to debtors enjoying such loans and guarantors of the loans the foreign currency necessary for the payment of interest and commission and the repayment of capital.

Article 10

The results of financial cooperation may be examined within the Cooperation Council.

Article 11

This Protocol shall form an integral part of the Agreement between the European Economic Community and the State of Israel signed on 11 May 1975.

Article 12

This Protocol is drawn up in duplicate in the Danish, Dutch, English, French, German, Italian and Hebrew languages, each of these texts being equally authentic.

Article 13

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 following the date on which the notifications provided for in paragraph 1 have been given.

Til bekræftelse heraf har undertegnede befuldmægtigede underskrevet denne tillægsprotokol.

Zu Urkund dessen haben die unterzeichneten Bevollmächtigten ihre Unterschriften unter dieses Zusatzprotokoll gesetzt.

In witness whereof, the undersigned Plenipotentiaries have affixed their signatures below this Additional Protocol.

En foi de quoi, les plénipotentiaires soussignés ont apposé leurs signatures au bas du présent protocole additionnel.

In fede di che, i plenipotenziari sottoscritti hanno apposto le loro firme in calce al presente protocollo aggiuntivo.

Ten blijke waarvan de ondergetekende gevolmachtigden hun handtekening onder dit Aanvullend Protocol hebben gesteld. >PIC FILE= "T0009966">

Udfærdiget i Bruxelles, den ottende februar nitten hundrede og syvoghalvfjerds, som svarer til den tyvende shvat fem tusinde syv hundrede og syvogtredive i den hebraiske kalender.

Geschehen zu Brüssel am achten Februar neunzehnhundertsiebenundsiebzig, welcher dem zwanzigsten Shvat fünftausendsiebenhundertsiebenunddreißig des hebräischen Kalenders entspricht.

Done at Brussels this eighth day of February nineteen hundred and seventy-seven which corresponds to the twentieth Shvat five thousand seven hundred and thirty-seven of the Hebrew calendar.

Fait à Bruxelles, le huit février mil neuf cent soixante-dix-sept correspondant au vingt shvat cinq mil sept cent trente-sept du calendrier hébraïque.

Fatto a Bruxelles, l'otto febbraio millenovecentosettantasette corrispondente al venti Shvat cinquemilasettecentotrentasette del calendario ebraico.

Gedaan te Brussel, de achtste februari negentienhonderd zevenenzeventig, welke datum overeenkomt met twintig Shvat vijfduizend zevenhonderd zevenendertig van de Hebreeuwse kalender. >PIC FILE= "T0009967">

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For Rådet for De europæiske Fællesskaber

Für den Rat der Europäischen Gemeinschaften

For the Council of the European Communities

Pour le Conseil des Communautés européennes

Per il Consiglio delle Comunità europee

Voor de Raad van de Europese Gemeenschappen >PIC FILE= "T0009970">