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INTERIM PROTOCOL

BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE SOCIALIST FEDERAL REPUBLIC OF YUGOSLAVIA ON THE ADVANCE IMPLEMENTATION OF PROTOCOL 2 TO THE COOPERATION AGREEMENT

THE COUNCIL OF THE EUROPEAN COMMUNITIES ,

OF THE ONE PART , AND

THE FEDERAL EXECUTIVE COUNCIL OF THE SOCIALIST FEDERAL REPUBLIC OF YUGOSLAVIA ,

OF THE OTHER PART ,

WHEREAS THE COOPERATION AGREEMENT BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE SOCIALIST FEDERAL REPUBLIC OF YUGOSLAVIA WAS SIGNED IN BELGRADE ON 2 APRIL 1980 ;

WHEREAS THE INTERIM AGREEMENT BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE SOCIALIST FEDERAL REPUBLIC OF YUGOSLAVIA ON TRADE AND TRADE COOPERATION WAS SIGNED IN BRUSSELS ON 6 MAY 1980 ;

WHEREAS THE OBJECT OF THE COOPERATION AGREEMENT IS TO PROMOTE THE DEVELOPMENT AND DIVERSIFICATION OF ECONOMIC , FINANCIAL AND TRADE COOPERATION BETWEEN THE PARTIES AND TO CONTRIBUTE TO THE ATTAINMENT OF THE OBJECTIVES OF THE AGREEMENTS SIGNED AT OSIMO ON 10 NOVEMBER 1975 BY THE ITALIAN REPUBLIC AND THE SOCIALIST FEDERAL REPUBLIC OF YUGOSLAVIA , AND IN PARTICULAR THE OBJECTIVES CONTAINED IN THE PROTOCOL ON THE FREE ZONE AND IN THE AGREEMENT ON THE PROMOTION OF ECONOMIC COOPERATION BETWEEN THE TWO COUNTRIES ;

WHEREAS TO THAT END IT IS NECESSARY TO IMPLEMENT AS SPEEDILY AS POSSIBLE , BY MEANS OF AN INTERIM PROTOCOL , THE PROVISIONS OF PROTOCOL 2 TO THE COOPERATION AGREEMENT , RELATING TO FINANCIAL COOPERATION ;

WHEREAS IT IS NECESSARY TO ENSURE THAT , PENDING THE ENTRY INTO FORCE OF THE COOPERATION AGREEMENT AND THE ESTABLISHMENT OF THE COOPERATION COUNCIL , THE JOINT COMMITTEE SET UP BY THE TRADE AGREEMENT AND PROVIDED FOR BY THE INTERIM AGREEMENT ON TRADE AND TRADE COOPERATION CAN EXERCISE THE POWERS ASSIGNED BY THE COOPERATION AGREEMENT TO THE COOPERATION COUNCIL WITH REGARD TO FINANCIAL COOPERATION , WHICH ARE REQUIRED IN ORDER TO IMPLEMENT THIS PROTOCOL ,

HAVE DECIDED TO CONCLUDE THIS PROTOCOL , AND TO THIS END HAVE DESIGNATED AS THEIR PLENIPOTENTIARIES :

THE COUNCIL OF THE EUROPEAN COMMUNITIES :

EUGENIO PLAJA ,

AMBASSADOR OF ITALY ,

CHAIRMAN OF THE PERMANENT REPRESENTATIVES COMMITTEE ;

SIR ROY DENMAN ,

DIRECTOR-GENERAL OF EXTERNAL RELATIONS OF THE COMMISSION OF THE EUROPEAN COMMUNITIES ;

THE FEDERAL EXECUTIVE COUNCIL OF THE SOCIALIST FEDERAL REPUBLIC OF YUGOSLAVIA :

MILICA ZIBERNA ,

DEPUTY FEDERAL SECRETARY FOR FOREIGN TRADE ;

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 YUGOSLAVIA AND OF MUTUAL INTEREST TO THE SOCIALIST FEDERAL REPUBLIC OF YUGOSLAVIA AND THE COMMUNITY .

ARTICLE 2

1 . FOR THE PURPOSES SPECIFIED IN ARTICLE 1 , AND FOR A PERIOD OF FIVE YEARS FROM THE DATE OF ENTRY INTO FORCE OF THIS PROTOCOL , AN AGGREGATE AMOUNT OF 200 MILLION EUROPEAN UNITS OF ACCOUNT ( EUA ) MAY BE COMMITTED IN THE FORM OF LOANS FROM THE EUROPEAN INVESTMENT BANK , HEREINAFTER CALLED " THE BANK " , GRANTED FROM ITS OWN RESOURCES .

2 . THE AMOUNT FIXED IN PARAGRAPH 1 SHALL BE USED TO PART-FINANCE SPECIFIC CAPITAL PROJECTS SUBMITTED TO THE BANK BY BANKS OR ORGANIZATIONS OF ASSOCIATED LABOUR HAVING THEIR SEAT IN YUGOSLAVIA .

3 . PROJECTS SHALL BE EXAMINED FOR ELIGIBILITY AND LOANS GRANTED IN ACCORDANCE WITH THE DETAILED RULES , CONDITIONS AND PROCEDURES LAID DOWN BY THE BANK'S STATUTE .

ARTICLE 3

1 . THE AMOUNTS TO BE COMMITTED EACH YEAR PURSUANT TO ARTICLE 2 ( 1 ) 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 ) MAY BE USED , UNTIL EXHAUSTED . IN THAT EVENT THE FUNDS SHALL BE USED UNDER THE SAME CONDITIONS AS PROVIDED FOR IN THIS PROTOCOL .

ARTICLE 4

LOANS GRANTED BY THE BANK SHALL BE SUBJECT TO TERMS AS TO DURATION ESTABLISHED ON THE BASIS OF THE ECONOMIC AND FINANCIAL CHARACTERISTICS OF PROJECTS ; THE INTEREST RATE SHALL BE THAT APPLIED BY THE BANK AT THE TIME OF SIGNATURE OF EACH LOAN CONTRACT .

ARTICLE 5

AIDS CONTRIBUTED BY THE BANK FOR THE EXECUTION OF PROJECTS MAY TAKE THE FORM OF CO-FINANCING IN WHICH , IN PARTICULAR , YUGOSLAV BANKS AND THE CREDIT BODIES AND INSTITUTIONS OF MEMBER STATES OR OF THIRD STATES , OR INTERNATIONAL FINANCE ORGANIZATIONS , WOULD TAKE PART .

ARTICLE 6

ORGANIZATIONS OF ASSOCIATED LABOUR ESTABLISHED IN ACCORDANCE WITH YUGOSLAV LAW , WHETHER OR NOT INCLUDING THE PARTICIPATION OF FOREIGN INVESTORS IN THE FORM OF A JOINT VENTURE , SHALL HAVE ACCESS ON EQUAL TERMS TO THE FINANCING EARMARKED FOR FINANCIAL COOPERATION .

ARTICLE 7

THE EXECUTION , MANAGEMENT AND MAINTENANCE OF PROJECTS FINANCED WITHIN THE FRAMEWORK OF FINANCIAL COOPERATION BETWEEN THE SOCIALIST FEDERAL REPUBLIC OF YUGOSLAVIA AND THE EUROPEAN ECONOMIC COMMUNITY SHALL BE THE RESPONSIBILITY OF THE BENEFICIARIES REFERRED TO IN ARTICLE 2 ( 2 ) .

THE BANK SHALL ENSURE THAT ITS FINANCIAL AID IS EXPENDED IN ACCORDANCE WITH THE AGREED ALLOCATIONS AND UNDER OPTIMUM ECONOMIC CONDITIONS .

ARTICLE 8

1 . PARTICIPATION IN TENDERING PROCEDURES AND OTHER PROCEDURES FOR THE AWARD OF CONTRACTS SHALL BE IN ACCORDANCE WITH THE BANK'S NORMAL PRACTICE .

2 . YUGOSLAVIA SHALL APPLY TO CONTRACTS AWARDED FOR THE EXECUTION OF PROJECTS FINANCED WITHIN THE FRAMEWORK OF FINANCIAL COOPERATION FISCAL AND CUSTOMS ARRANGEMENTS AT LEAST AS FAVOURABLE AS THOSE APPLIED IN RESPECT OF OTHER INTERNATIONAL ORGANIZATIONS .

ARTICLE 9

YUGOSLAVIA SHALL TAKE THE NECESSARY MEASURES TO ENSURE THAT INTEREST AND ALL OTHER PAYMENTS DUE TO THE BANK IN RESPECT OF LOANS GRANTED IN THE CONTEXT OF FINANCIAL COOPERATION ARE EXEMPTED FROM ANY TAXES OR LEVIES IMPOSED BY THE FEDERAL AUTHORITIES , THE REPUBLICS , THE AUTONOMOUS PROVINCES OR THE COMMUNAL AUTHORITIES .

ARTICLE 10

WHERE A LOAN IS ACCORDED TO A BENEFICIARY REFERRED TO IN ARTICLE 2 ( 2 ) , THE PROVISION OF A GUARANTEE BY THE SOCIALIST FEDERAL REPUBLIC OF YUGOSLAVIA MAY BE REQUIRED BY THE BANK AS A CONDITION OF THE GRANT OF THE LOAN .

ARTICLE 11

THROUGHOUT THE DURATION OF THE LOANS ACCORDED PURSUANT TO THIS PROTOCOL , YUGOSLAVIA SHALL UNDERTAKE ALL NECESSARY MEASURES , IN CONFORMITY WITH ITS NATIONAL LEGISLATION , TO MAKE AVAILABLE TO DEBTORS ENJOYING SUCH LOANS AND TO GUARANTORS OF THE LOANS THE FOREIGN CURRENCY NECESSARY FOR THE PAYMENT OF INTEREST , COMMISSION AND OTHER CHARGES AND REPAYMENT OF THE PRINCIPAL .

ARTICLE 12

THE RESULTS OF FINANCIAL COOPERATION MAY BE EXAMINED WITHIN THE JOINT COMMISSION PROVIDED FOR IN ARTICLE 31 OF THE INTERIM AGREEMENT BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE SOCIALIST FEDERAL REPUBLIC OF YUGOSLAVIA ON TRADE AND TRADE COOPERATION , UNTIL THE COOPERATION COUNCIL PROVIDED FOR IN ARTICLE 48 OF THE COOPERATION AGREEMENT IS ESTABLISHED .

ARTICLE 13

THE DECLARATION CONTAINED IN THE FINAL ACT SHALL FORM AN INTEGRAL PART OF THIS PROTOCOL .

ARTICLE 14

THIS PROTOCOL 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 SOCIALIST FEDERAL REPUBLIC OF YUGOSLAVIA .

ARTICLE 15

THIS PROTOCOL IS DRAWN UP IN DUPLICATE IN THE DANISH , DUTCH , ENGLISH , FRENCH , GERMAN , ITALIAN AND SERBO-CROAT LANGUAGES , EACH OF THESE TEXTS BEING EQUALLY AUTHENTIC .

ARTICLE 16

1 . THIS PROTOCOL SHALL BE SUBJECT TO 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 .

IT SHALL BE APPLICABLE UNTIL THE ENTRY INTO FORCE OF THE COOPERATION AGREEMENT SIGNED ON 2 APRIL 1980 AND , AT THE LATEST , UNTIL 30 JUNE 1985 .

TIL BEKRAEFTELSE HERAF HAR UNDERTEGNEDE BEFULDMAEGTIGEDE UNDERSKREVET DENNE INTERIMSPROTOKOL .

ZU URKUND DESSEN HABEN DIE UNTERZEICHNETEN BEVOLLMAECHTIGTEN IHRE UNTERSCHRIFTEN UNTER DIESES INTERIMSPROTOKOLL GESETZT .

IN WITNESS WHEREOF THE UNDERSIGNED PLENIPOTENTIARIES HAVE SIGNED THIS INTERIM PROTOCOL .

EN FOI DE QOI , LES PLENIPOTENTIAIRES SOUSSIGNES ONT APPOSE LEURS SIGNATURES AU BAS DU PRESENT PROTOCOLE INTERIMAIRE .

IN FEDE DI CHE , I PLENIPOTENZIARI SOTTOSCRITTI HANNO APPOSTO LE LORO FIRME IN CALCE AL PRESENTE PROTOCOLLO INTERINALE .

TEN BLIJKE WAARVAN DE ONDERGETEKENDE GEVOLMACHTIGDEN HUN HANDTEKENING ONDER DIT INTERIMPROTOCOL HEBBEN GESTELD .

U POTVRDU CEGA DOLE POTPISANI , PROPISNO OVLASCENI U TU SVRHU , POTPISALI SU OVAJ PRIVREMENI PROTOKOL .

UDFAERDIGET I BRUXELLES , DEN SJETTE MAJ NITTEN HUNDREDE OG FIRS .

GESCHEHEN ZU BRUESSEL AM SECHSTEN MAI NEUNZEHNHUNDERTACHTZIG .

DONE AT BRUSSELS ON THE SIXTH DAY OF MAY IN THE YEAR ONE THOUSAND NINE HUNDRED AND EIGHTY .

FAIT A BRUXELLES , LE SIX MAI MIL NEUF CENT QUATRE-VINGT .

FATTO A BRUXELLES , ADDI SEI MAGGIO MILLENOVECENTOOTTANTA .

GEDAAN TE BRUSSEL , DE ZESDE MEI NEGENTIENHONDERD TACHTIG .

SACINJENO U BRISLU , SESTOGA MAJA HILJADU DEVET STOTINA OSAMDESETE GODINE .

FOR RAADET FOR DE EUROPAEISKE FAELLESSKABER

FUER DEN RAT DER EUROPAEISCHEN GEMEINSCHAFTEN

FOR THE COUNCIL OF THE EUROPEAN COMMUNITIES

POUR LE CONSEIL DES COMMUNAUTES EUROPEENNES

PER IL CONSIGLIO DELLE COMUNITA EUROPEE

VOOR DE RAAD VAN DE EUROPESE GEMEENSCHAPPEN

ZA SAVET EVROPSKIH ZAJEDNICA

FOR DET FOEDERATIVE EKSEKUTIVRAAD FOR DEN SOCIALISTISKE FOEDERATIVE REPUBLIK JUGOSLAVIEN

FUER DEN FOEDERATIVEN EXEKUTIVRAT DER SOZIALISTISCHEN FOEDERATIVEN REPUBLIK JUGOSLAWIEN

FOR THE FEDERAL EXECUTIVE COUNCIL OF THE SOCIALIST FEDERAL REPUBLIC OF YUGOSLAVIA

POUR LE CONSEIL EXECUTIF FEDERAL DE LA REPUBLIQUE SOCIALISTE FEDERATIVE DE YOUGOSLAVIE

PER IL CONSIGLIO ESECUTIVO FEDERALE DELLA REPUBBLICA SOCIALISTA FEDERATIVA DI IUGOSLAVIA

VOOR DE FEDERALE UITVOERENDE RAAD VAN DE SOCIALISTISCHE FEDERATIVE REPUBLIEK JOEGOSLAVIE

ZA SAVEZNO IZVRSNO VECE SOCIJALISTICKE FEDERATIVNE REPUBLIKE JUGOSLAVIJE

FINAL ACT

THE PLENIPOTENTIARIES

OF THE COUNCIL OF THE EUROPEAN COMMUNITIES ,

OF THE ONE PART

AND OF THE FEDERAL EXECUTIVE COUNCIL OF THE SOCIALIST FEDERAL REPUBLIC OF YUGOSLAVIA ,

OF THE OTHER PART

MEETING AT BRUSSELS ON THE SIXTH DAY OF MAY IN THE YEAR ONE THOUSAND NINE HUNDRED AND EIGHTY FOR THE PURPOSE OF SIGNING THE INTERIM PROTOCOL BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE SOCIALIST FEDERAL REPUBLIC OF YUGOSLAVIA , ON THE ADVANCE IMPLEMENTATION OF PROTOCOL 2 TO THE COOPERATION AGREEMENT ,

HAVE , ON SIGNING THIS PROTOCOL , TAKEN NOTE OF THE DECLARATION BY THE COMMUNITY ON THE EUROPEAN UNIT OF ACCOUNT REFERRED TO IN ARTICLE 2 OF THE PROTOCOL . THIS DECLARATION IS ANNEXED TO THIS FINAL ACT .

THE PLENIPOTENTIARIES HAVE AGREED THAT THE DECLARATION SHALL BE SUBJECTED IN THE SAME MANNER AS THE INTERIM PROTOCOL TO ANY PROCEDURES THAT MAY BE NECESSARY TO ENSURE ITS VALIDITY .

UDFAERDIGET I BRUXELLES , DEN SJETTE MAJ NITTEN HUNDREDE OG FIRS .

GESCHEHEN ZU BRUESSEL AM SECHSTEN MAI NEUNZEHNHUNDERTACHTZIG .

DONE AT BRUSSELS ON THE SIXTH DAY OF MAY IN THE YEAR ONE THOUSAND NINE HUNDRED AND EIGHTY .

FAIT A BRUXELLES , LE SIX MAI MIL NEUF CENT QUATRE-VINGT .

FATTO A BRUXELLES , ADDI SEI MAGGIO MILLENOVECENTOOTTANTA .

GEDAAN TE BRUSSEL , DE ZESDE MEI NEGENTIENHONDERD TACHTIG .

SACINJENO U BRISLU , SESTOGA MAJA HILJADU DEVET STOTINA OSAMDESETE GODINE .

FOR RAADET FOR DE EUROPAEISKE FAELLESSKABER

FUER DEN RAT DER EUROPAEISCHEN GEMEINSCHAFTEN

FOR THE COUNCIL OF THE EUROPEAN COMMUNITIES

POUR LE CONSEIL DES COMMUNAUTES EUROPEENNES

PER IL CONSIGLIO DELLE COMUNITA EUROPEE

VOOR DE RAAD VAN DE EUROPESE GEMEENSCHAPPEN

ZA SAVET EVROPSKIH ZAJEDNICA

FOR DET FOEDERATIVE EKSEKUTIVRAAD FOR DEN SOCIALISTISKE FOEDERATIVE REPUBLIK JUGOSLAVIEN

FUER DEN FOEDERATIVEN EXEKUTIVRAT DER SOZIALISTISCHEN FOEDERATIVEN REPUBLIK JUGOSLAWIEN

FOR THE FEDERAL EXECUTIVE COUNCIL OF THE SOCIALIST FEDERAL REPUBLIC OF YUGOSLAVIA

POUR LE CONSEIL EXECUTIF FEDERAL DE LA REPUBLIQUE SOCIALISTE FEDERATIVE DE YOUGOSLAVIE

PER IL CONSIGLIO ESECUTIVO FEDERALE DELLA REPUBBLICA SOCIALISTA FEDERATIVA DI IUGOSLAVIA

VOOR DE FEDERALE UITVOERENDE RAAD VAN DE SOCIALISTISCHE FEDERATIEVE REPUBLIEK JOEGOSLAVIE

ZA SAVEZNO IZVRSNO VECE SOCIJALISTICKE FEDERATIVNE REPUBLIKE JUGOSLAVIJE

DECLARATION BY THE COMMUNITY ON THE EUROPEAN UNIT OF ACCOUNT REFERRED TO IN ARTICLE 2 OF THE PROTOCOL

THE EUROPEAN UNIT OF ACCOUNT USED TO EXPRESS THE AMOUNTS SPECIFIED IN ARTICLE 2 OF THE PROTOCOL IS DEFINED AS THE SUM OF THE FOLLOWING AMOUNTS IN THE CURRENCIES OF THE MEMBER STATES OF THE COMMUNITY :

GERMAN MARK 0,828

POUND STERLING 0,0885

FRENCH 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 EQUIVALENT IN THAT CURRENCY OF THE SUM OF THE AMOUNTS OF CURRENCY REFERRED TO IN THE FIRST PARAGRAPH . IT IS CALCULATED BY THE COMMISSION USING DAILY MARKET EXCHANGE RATES .

THE DAILY VALUES OF THE EUROPEAN UNIT OF ACCOUNT IN THE VARIOUS NATIONAL CURRENCIES ARE MADE AVAILABLE EVERY DAY AND ARE PUBLISHED PERIODICALLY IN THE OFFICIAL JOURNAL OF THE EUROPEAN COMMUNITIES .