31.12.77 OfficialJournaloftheEuropean Communities NoL361/29
AGREEMENT
establishing anAssociation betweentheEuropean Economic Community andTurkey
(signedatAnkara,12September 1963)
PREAMBLE
HISMAJESTY THEKINGOFTHEBELGIANS ,
THEPRESIDENT OFTHEFEDERAL REPUBLIC OFGERMANY ,
THEPRESIDENT OFTHEFRENCH REPUBLIC ,
THEPRESIDENT OFTHEITALIAN REPUBLIC ,
HERROYALHIGHNESS THEGRANDDUCHESS OFLUXEMBOURG ,
HERMAJESTY THEQUEENOFTHENETHERLANDS ,
and
THECOUNCIL OFTHEEUROPEAN ECONOMIC COMMUNITY ,...
oftheonepart,and
THEPRESIDENT OFTHEREPUBLIC OFTURKEY ,
oftheotherpart,
DETERMINED toestablishevercloserbondsbetweentheTurkishpeopleandthepeoples
broughttogetherintheEuropeanEconomicCommunity ;
RESOLVED toensureacontinuous improvement inlivingconditions inTurkeyandinthe
European Economic Community throughaccelerated economic progressandtheharmonious
expansion oftrade,andtoreducethedisparitybetweentheTurkisheconomyandtheecono­
miesoftheMemberStatesoftheCommunity ;
MINDFUL bothofthespecialproblemspresentedbythedevelopment oftheTurkisheconomy
andoftheneedtogranteconomicaidtoTurkeyduringagivenperiod;
RECOGNIZING thatthesupportgivenbytheEuropean Economic Community totheefforts
oftheTurkishpeopletoimprovetheirstandardoflivingwillfacilitatetheaccessionofTurkey
totheCommunity atalaterdate;
RESOLVED topreserveandstrengthen peaceandlibertybyjointpursuitoftheideals
underlying theTreatyestablishing theEuropeanEconomicCommunity ;
HAVEDECIDED toconcludeanAgreement establishing anAssociation betweentheEuropean
Economic Community andTurkeyinaccordance withArticle238oftheTreatyestablishing the
EuropeanEconomic Community ,andtothisendhavedesignated astheirPlenipotentiaries :

NoL361/30 OfficialJournaloftheEuropean Communities 31.12.77
HISMAJESTY THEKINGOFTHEBELGIANS :
MrPaul-Henri SPAAK ,
DeputyPrimeMinisterandMinisterforForeignAffairs;
THEPRESIDENT OFTHEFEDERAL REPUBLIC OFGERMANY :
Dr.GerhardSCHRÖDER ,
MinisterforForeignAffairs;
THEPRESIDENT OFTHEFRENCH REPUBLIC :
MrMauriceCOUVEDEMURVILLE ,
MinisterforForeignAffairs;
THEPRESIDENT OFTHEITALIAN REPUBLIC :
MrEmilioCOLOMBO ,
MinisterfortheTreasury ;
HERROYAL HIGHNESS THEGRAND DUCHESS OFLUXEMBOURG :
MrEugeneSCHAUS ,
Vice-President oftheGovernment andMinisterforForeignAffairs;
HERMAJESTY THEQUEENOFTHENETHERLANDS :
MrJosephM.A.H.LUNS,
MinisterforForeignAffairs;
THECOUNCIL OFTHEEUROPEAN ECONOMIC COMMUNITY :
MrJosephM.A.H.LUNS,
President inOfficeoftheCounciloftheEuropean Economic Community and
MinisterforForeignAffairsintheNetherlands ;
THEPRESIDENT OFTHEREPUBLIC OFTURKEY :
MrFeridunCemalERKIN,
MinisterforForeignAffairs;
WHO,havingexchanged theirFullPowers,foundingoodanddueform,
HAVEAGREED ASFOLLOWS :

31.12,77 OfficialJournaloftheEuropean Communities NoL361/31
TITLEI
PRINCIPLES
Article 1
BythisAgreement anAssociation isestablished
betweentheEuropean Economic Community and
Turkey .Article4
1.Duringthetransitional stagetheContracting
Partiesshall,onthebasisof-mutual --andbalanced
obligations :
—establishprogressively -acustomsunionbetween
TurkeyandtheCommunity ;
—aligntheeconomic policiesofTurkeyandthe
Community -moreclosely -inordertoensurethe
properfunctioning oftheAssociation andthe
progressofthejointmeasureswhichthisrequires .
2.Thisstageshalllast-notmorethantwelveyears,
subject -tosuchexceptions asmaybemadebymutual
agreement .Theexceptions mustnotimpedethefinal
establishment of-thecustoms unionwithin a
reasonable period .Article2
1.TheaimofthisAgreement istopromotethe
continuous andbalancedstrengthening oftradeand
economic relationsbetweentheParties,whiletaking
fullaccountoftheneedtoensureanaccelerated
development oftheTurkisheconomyandtoimprove
thelevelofemployment andthelivingconditions of
theTurkishpeople .
2.Inordertoattaintheobjectives setoutin
paragraph 1,acustomsunionshallbeprogressively
established inaccordance withArticle3,4and5.
3.Association shallcomprise :
(a)apreparatory stage;
(b)atransitional stage;
(c)afinalstage.Article5
Thefinalstageshallbebasedonthecustomsunion
andshallentailclosercoordination oftheeconomic
policiesoftheContracting Parties.
Article6
Toensuretheimplementation andtheprogressive
development oftheAssociation ,theContracting
PartiesshallmeetinaCouncilofAssociation which
shallactwithinthepowersconferreduponitbythis
Agreement .Article3
1.Duringthepreparatory stageTurkeyshall,with
aidfromtheCommunity ,strengthen itseconomy so
astoenableittofulfiltheobligations whichwill
devolveuponitduringthetransitional andfinal
stages .
Thedetailedrulesforthispreparatory stage,in
particular thoseforaidfromtheCommunity ,areset
outintheProvisional Protocol andintheFinancial
ProtocoltothisAgreement .
2.Thepreparatory stageshalllastfiveyears,
unlessitshouldbeextended inaccordance withthe
conditions laiddownintheProvisional Protocol .
Thechange-over tothe"transitional stageshallbe
effected inaccordance withArticle 1ofthe
Provisional Protocol .Article7
TheContracting Partiesshalltakeallappropriate
measures ,whethergeneralorparticular ,toensurethe
fulfilment oftheobligations arisingfromthis
Agreement .
Theyshallrefrainfromanymeasures liableto
jeopardize theattainment oftheobjectives ofthis
Agreement .

NoL361/32 OtficialJournaloftheEuropean Communities 31.12.77
TITLEII
IMPLEMENTATION OFTHETRANSITIONAL STAGE
Chapter2
Agriculture
Article 11
1.TheAssociation shalllikewise extend to
agriculture andtradeinagricultural products ,in
accordance withspecialruleswhichshalltakeinto
accountthecommon agricultural policyofthe
Community .
2.'Agricultural products 'meanstheproductslisted
inAnnexIItotheTreatyestablishing theCom­
munity,asatpresentsupplemented inaccordance
withArticle38(3)ofthatTreaty.Article8
Inordertoattaintheobjectives setoutinArticle4,
theCouncilofAssociation shall,beforethebeginning
ofthetransitional stageandinaccordance wriththe
procedure laiddowninArticle1oftheProvisional
Protocol ,determine theconditions ,rulesand
timetables fortheimplementation oftheprovisions
relatingtothefieldscovered by-theTreaty
establishing theCommunity whichmustbe
considered ;thisshallapplyinparticular tosuchof
thosefieldsas*arementioned underthisTitleandto
anyprotective clausewhichmayproveappropriate .
Article9
TheContracting Partiesrecognize thatwithinthe
scopeofthisAgreement -andwithoutprejudicetoany
specialprovisions whichmaybelaiddownpursuant
toArticle 8,anydiscrimination ongroundsof
nationality shallbeprohibited inaccordance withthe
principle laiddownin-Article7oftheTreaty
establishing theCommunity .Chapter 3
Othereconomic provisions
Article12
TheContracting Partiesagreetobeguidedby
Articles48,49and50oftheTreatyestablishing the
Community forthepurposeofprogressively securing
freedomofmovement forworkersbetweenthem.
Article13
TheContracting Partiesagreetobeguidedby
Articles52to56andArticle58oftheTreaty
establishing theCommunity forthepurpose of
abolishing restrictions onfreedomofestablishment
betweenthem.
Article14
TheContracting Partiesagreetobeguidedby
Articles55,56and58to65oftheTreatyestablishing
theCommunity forthepurpose ofabolishing
restrictions onfreedomtoprovideservicesbetween
them.
ArticleIS
Therulesandconditions forextension toTurkeyof
thetransport provisions contained intheTreatyChapter 1
Thecustomsunion
Article10
1.ThecustomsunionprovidedforinArticle2(2)
ofthisAgreement shallcoveralltradeingoods.
2.Thecustomsunionshallinvolve :
—theprohibition betweenMemberStatesofthe
Community andTurkey,ofcustomsdutieson
importsandexportsandofallchargeshaving
equivalent effect,quantitative restrictions andall
othermeasureshavingequivalent effectwhichare
designed toprotectnationalproduction ina
mannercontrary totheobjectives ofthis
Agreement ;
—theadoptionbyTurkeyoftheCommon Customs
TariffoftheCommunity initstradewiththird
countries ,andanapproximation totheother
Community rulesonexternaltrade.

31.12.77 OfficialJournaloftheEuropean Communities NoL361/33
in;whichthecreditororthebeneficiary resides,any
payments ortransfersconnected withthemovement
ofgoods,servicesorcapital,andanytransfersof
capitalorearnings ,totheextentthatthemovement
ofgoods,services,capitalandpersonsbetweenthem
hasbeenliberalized pursuanttothisAgreement .
Article20
TheContracting Partiesshallconsulteachotherwith
aviewtofacilitating movements ofcapitalbetween
MemberStatesoftheCommunity andTurkeywhich
willfurthertheobjectives ofthisAgreement .
Theyshallactivelyseekallmeansofpromoting the
investment inTurkeyofcapitalfromcountriesofthe
Community whichcancontribute toTurkish
economicdevelopment .
Withrespecttoarrangements forforeigncapital
residents ofallMember Statesshallbeentitledtoall
theadvantages ,inparticular asregardscurrencyand
taxation ,whichTurkeyaccordstoanyother
MemberStateortoathirdcountry .establishing theCommunity ,andmeasuresadopted
inimplementation ofthoseprovisions shallbelaid
downwithdueregardtothegeographical situation
ofTurkey .
Article16
TheContracting Partiesrecognizethattheprinciples
laiddownintheprovisions oncompetition ,taxation
andtheapproximation oflawscontained in-TitleIof
PartIIIoftheTreatyestablishing theCommunity
mustbemadeapplicable intheirrelationswithinthe
Association .
Article -17
EachStatepartytothisAgreement shallpursuethe
economic policyneededtoensuretheequilibrium of
itsoverallbalanceofpayments andtomaintain
confidence initscurrency ,whiletakingcaretoensure
acontinuous ,balancedgrowthofitseconomy in
conjunction withstableprices.
EachStatepartytothisAgreement shallpursuea
conjunctural policy,inparticular afinancialand
monetarypolicy,whichfurtherstheseobjectives .
Article18
EachStatepartytothisAgreement shallpursuea
policywithregardtoratesofexchangewhichensures
thattheobjectives oftheAssociation canbeattained .
Article19
TheMemberStatesoftheCommunity andTurkey
undertake toauthorize ,inthecurencyofthecountryArticle21
TheContracting Partiesherebyagreetoworkouta
consultation procedure inorder 'toensure
coordination oftheircommercial policiestowards
thirdcountriesandmutualrespectfortheirinterests
inthisfield,interaliaintheeventofsubsequent
accession toorassociation withtheCommunity ,by
thirdcountries .
TITLE 111
GENERAL ANDFINALPROVISIONS
oftheobjectives ofthisAgreement .Duringthe
preparatory stage,however ,suchreviewsshallbe
limitedtoanexchangeofviews.Article22
1.Inordertoattaintheobjectives ofthis
Agreement theCouncilofAssociation shallhavethe
powertotakedecisions inthecasesprovided for
therein .EachofthePartiesshalltakethemeasures
necessary toimplement thedecisions taken.The
CouncilofAssociation mayalsomakeappropriate
recommendations .
2.TheCouncilofAssociation shallperiodically
reviewthefunctioning oftheAssociation inthelight3.Oncethetransitional stagehasbeenembarked
on,theCouncil ofAssociation 'shalladopt
appropriate decisions where,inthecourseof
implementation oftheAssociation arrangements ,
attainment ofanobjectiveofthisAgreement callsfor
jointactionbytheContracting Partiesbutthe
requisitepowersarenotgrantedinthisAgreement .

NoL361/34 OfficialJournaloftheEuropean Communities 31.-12 .77
Article23
TheCouncilofAssociation shallconsistofmembers
oftheGovernments oftheMember Statesand
members oftheCouncilandoftheCommission of
theCommunity ontheonehandandofmembersof
theTurkishGovernment ontheother.
ThemembersoftheCouncilofAssociation may
arrangetoberepresented inaccordance withitsrules
ofprocedure .
TheCouncilofAssociation shallactunanimously .
Article24
TheofficeofPresident oftheCouncilofAssociation
shallbe-heldforatermofsixmonthsbya
representative oftheCommunity andarepresentative
ofTurkeyalternately .Thetermofofficeofthefirst
President maybeshortened byadecisionofthe
CouncilofAssociation .
TheCouncilofAssociation shalladoptitsrulesof
procedure .
TheCouncilofAssociation maydecidetosetup
committees toassistintheperformance ofitstasks,
andinparticular acommittee toensurethe
continuing .cooperation necessary fortheproper
functioning ofthisAgreement .
TheCouncilofAssociation shalllaydowntheterms
ofreference ofthesecommittees .forarbitration orforanyotherjudicialprocedure to
whichtheContracting Partiesmayresortduringthe
transitional andfinalstagesofthisAgreement .
Article26
ThisAgreement shallnotapplytoproductswithin
theprovince oftheEuropean CoalandSteel
Community .
Article27
TheCouncilofAssociation shalltakeallappropriate
stepstopromotethenecessary cooperation and
contactsbetweentheEuropean Parliament ,the
Economic andSocialCommittee andotherorgansof
theCommunity ontheonehandandtheTurkish
Parliament andthecorresponding organsinTurkey
ontheother.
Duringthepreparatory state,however ,suchcontacts
shallbelimitedtorelationsbetweentheEuropean
Parliament andtheTurkishParliament .
Article28
Assoonastheoperation ofthisAgreement has
advanced ;farenoughto;justifyenvisaging .full
acceptance by.Turkeyoftheobligations arisingout
oftheTreatyestablishing theCommunity ,the
Contracting Partiesshallexaminethepossibility of
theaccessionofTurkeytotheCommunity .
Article29
1.ThisAgreement shallapplytotheEuropean
territories oftheKingdomofBelgium ,oftheFederal
RepublicofGermany ,oftheFrenchRepublic ,ofthe
ItalianRepublic ,oftheGrandDuchyofLuxembourg
andoftheKingdom oftheNetherlands ontheone
handandtotheterritoryoftheTurkishRepublicon
theother.
2.TheAgreement shallalsoapplytotheFrench
overseasdepartments sofarasconcernsthoseofthe
fieldscoveredbyitwhicharelistedinthefirst
subparagraph ofArticle227(2)oftheTreaty
establishing theCommunity .
Theconditions forapplyingtothoseterritories the
provisions ofthisAgreement relatingtootherfields
shallbedecidedatalaterdatebyagreement between
theContracting Parties.
Article30
TheProtocols annexedtothisAgreement by
commonaccordoftheContracting Partiesshallform
anintegralpartthereof.Article25
1.TheContracting Partiesmaysubmittothe
CouncilofAssociation anydisputerelatingtothe
application orinterpretation ofthisAgreement which
concernstheCommunity ,aMemberStateofthe
Community ,orTurkey .
2.TheCouncilofAssociation maysettlethe
disputebydecision ;itmayalsodecidetosubmitthe
disputetotheCourtofJusticeoftheEuropean
Communities ortoanyotherexistingcourtor
tribunal .
3.EachPartyshallberequiredtotakethe
measuresnecessary tocomplywithsuchdecisions .
4.Wherethedisputecannotbesettledin
accordance withparagraphs 2ofthisArticle,the
CouncilofAssociation shalldetermine ,inaccordance
withArticle8ofthisAgreement ,thedetailedrules

31.12.77 OfficialJournaloftheEuropeanCommunities NoL361/35
Article32
ThisAgreement shallenterintoforceonthefirstday
ofthesecondmonthfollowingthedateofexchange
oftheinstruments ofratification andthenotification
referredtoinArticle31.Article31
ThisAgreement shallberatifiedbytheSignatory
Statesinaccordance withtheirrespective
constitutional requirements ,andshallbecome
bindingontheCommunity byadecisionofthe
Counciltakeninaccordance withtheTreaty
establishing theCommunity andnotifiedtothe
PartiestothisAgreement .
Theinstruments ofratification andthenotifications
ofconclusion shallbeexchanged atBrussels .Article33
ThisAgreement isdrawnupintwocopiesinthe
Dutch,French,German,ItalianandTurkish
languages ,eachofthesetextsbeingequallyauthentic .
PROTOCOL No1
Provisional Protocol
THECONTRACTING PARTIES ,
RECOGNIZING theimportance totheTurkisheconomy ,particularly inthepreparatory
stage,ofexportsoftobacco,driedgrapes,driedfigsandhazelnuts ;
DESIRING toadopttheProvisional ProtocolprovidedforinArticle3oftheAgreement of
Association ,
HAVEAGREED ASFOLLOWS :
oruntiltheendofthetenthyear,whichever isthe
earlier .
If,however ,theadditionalProtocolhasbeenadopted
buthasnotenteredintoforcebytheendofthetenth
year,thisProvisional Protocolshallbeextended for
notmorethanoneyear.
Shouldtheadditional Protocol nothavebeen
adoptedbytheendoftheninthyear,theCouncilof
Association shalldecideonthearrangements tobe
appliedinrespectofthepreparatory stagefromthe
endofthetenthyear.Article 1
1.Fouryearsaftertheentryintoforceofthis
Agreement ,theCouncilofAssociation shallconsider
whether,takingintoaccounttheeconomicsituation
ofTurkey,itisabletolaydown,intheformofan
additional Protocol ,theprovisions relatingtothe
conditions ,detailed rulesandtimetables for
implementing thetransitional stagereferredtoin
Article4oftheAgreement .
Theadditional Protocolshallbesignedbythe
Contracting Partiesandshallenterintoforceafter
completion oftherespective constitutional
procedures .
2.IftheadditionalProtocolhasnotbeenadopted
bytheendofthefifthyear,theprocedure laiddown
inparagraph 1shallbesetinmotionagainaftera
periodwhichshallbefixedbytheCouncilof
Association andwhichshallnotexceedthreeyears.
3.Theprovisions ofthisProtocolshallcontinueto
applyuntiltheadditional ProtocolentersintoforceArticle2
FromthedateoftheentryintoforceofthisProtocol,
theMemberStatesoftheCommunity shallopenthe
followingannualtariffquotasforimportsoriginating
inandcomingfromTurkey :

NoL361/36 OfficialJournaloftheEuropean Communities 31.12.77
IfthisProvisional Protocol shouldstillbein
forceatthedatewhenthenationalratesofduty
ofMemberStatesarefinallyalignedonthe
Common CustomsTariff,theCommunity shall
adopt,fordriedfigs,thetariffmeasuresnecessary
toensurethatTurkeyretainscommercial
advantages equivalent tothosewhichithas
underthepreceding paragraph ,takinginto
accounttheprovisions ofArticle3.
(d)ex08.05—Nuts,fresh,ordried,shelledornot:
hazelnuts
Belgo-Luxembourg Economic
Union 540metrictons
FederalRepublicofGermany 14500metrictons
France 1250metrictons
Netherlands 710metrictons
EachMember StateoftheCommunity ,shall
applyanadvaloremcustomsdutyof2-5%to
productsimportedunderthistariffquota.
Furthermore ,ontheentryintoforceofthis
Agreement ,theMember Statesofthe
Community shallabolishallintra-Community
customsdutiesonthisproductandshallapply
theCommonCustomsTariffinitsentirety .(a)24.01—Unmanufactured tobacco:tobacco
refuse
Belgo-Luxembourg Economic
Union 1250metrictons
FederalRepublicofGermany 6600metrictons
France ^ 2550metrictons
Italy 1500metrictons
Netherlands 600metrictons
EachMember Stateshallapplytoproducts
importedunderthesetariffquotasthecustoms
dutywhichitappliestoimportsoflikeproducts
withintheframework oftheAgreement of
Association signedbytheCommunity on9July
1961.
(b)ex08.04—Driedgrapes (incontainers ofanet
contentnotexceeding 15kg)
Belgo-Luxembourg Economic
Union 3250metrictons
FederalRepublicofGermany 9750metrictons
France 2800metrictons
Italy 7700metrictons
Netherlands 6500metrictons
EachMemberStateshallapplytoproducts
importedunderthesetariffquotasthecustoms
dutywhichitappliestoimportsoflikeproducts
within;theframework oftheAgreement of
Association signedbytheCommunity on9July
1961.
(c)ex08.03—Driedfigs(incontainers ofanet
contentnotexceeding 15kg)
Belgo-Luxembourg Economic
Union 840metrictons
FederalRepublicofGermany 5000metrictons
France 7000metrictons
Netherlands 160metrictons
Inthecaseofdriedfigsimported underthese
tariffquotaseachMemberStateshall,pending
thefinalalignment ofthenationalratesofduty
oftheMemberStatesoftheCommunity onthose
oftheCommonCustomsTariff,applyacustoms
dutyfordriedfigsequaltothebasicdutywithin
themeaningofArticle14(1)oftheTreaty
establishing theCommunity ,less'halfthe
reduction ofdutywhichMemberStatesofthe
Community allowtooneanother .Article3
Fromthedateofthefinalalignment ofthenational
dutiesappliedbyMemberStatesoftheCommunity
toproductsmentioned inArticle2withthoseofthe
CommonCustomsTariff,theCommunity shalleach
yearopentariffquotasinfavourofTurkeyequalto
thetotalofthenationalquotasopenatthedateof
thatfinalalignment .Thisprocedure shallbe
implemented withoutprejudice toanydecisions
whichmayhavebeentakenbytheCouncilof
Association pursuanttoArticle4inrespectofthe
followingcalendaryear.
Asregardshazelnuts ,however,thisprocedure shall
notbeimplemented untilthenationaldutiesof
MemberStatesoftheCommunity forallthethree
otherproducts havebeenbroughtintolinewith
thoseoftheCommon CustomsTariff.
Article4
Fromthesecondyearfollowing theentryintoforce
ofthisAgreement ,theCouncilofAssociation may
decidetoincreasethetariffquotasreferredtoin
Articles2and3.UnlesstheCouncilofAssociation

31.12.77 OfficialJournaloftheEuropean Communities NoL361/37
ensure-thatTurkeyretainsexportopenings
equivalent tothosewhichithasunderthisProtocol ,
takingintoaccount -thearrangements laiddownfor
thatcommonagricultural policy.
Article8
IftheCommunity shouldopentariffquotasfor
productsmentioned inArticle2ofthisProtocol ,
Turkeyshallnot,asregardstheratesofcustomsduty
chargeable withintheframework ofthosetariff
quotas,betreatedlessfavourably thanacountry
whichisnotpartytothisAgreement .
Article9
Turkeyshallendeavour toextendtoallMember
StatesoftheCommunity themostfavourable
treatment whichitgrantstooneormoreofthem.shoulddecideotherwise ,theseincreasesshallremain
inforce.Anyincreaseshalltakeeffectonlyfromthe
beginning ofthenextcalendaryear.
Article5
IfthisAgreement doesnotenterintoforceatthe
beginning ofacalendaryear,MemberStatesofthe
Community shall,fortheperiodfromthedateof
entryintoforceofthisAgreement untilthebeginning
ofthenextcalendaryear,opentariffquotasofone
twelfthofthetonnagesmentioned inArticle2for
eachmonthbetweenthedateofentryintoforceof
thisAgreement andthebeginning ofthenext
calendaryear.
FromthedateofentryintoforceofthisAgreement ,
however ,theCouncilofAssociation maydecideto
increasethetariffquotasopenedpursuant tothe
preceding paragraph soastotakeintoaccountthe
seasonal natureofexportsoftheproducts in
question .
Article6
Attheendofthethirdyearaftertheentryintoforce
ofthisAgreement ,theCouncilofAssociation may
takeappropriate measures topromotethedisposal
ontheCommunity marketofproductsotherthan
thosementioned inArticle2.Article10
Fromthebeginning ofthepreparatory stageeach
Contracting PartymaybringbeforetheCouncilof
Association anydifficulties regarding therightof
establishment ,theprovision ofservices,transport or
competition .Wherenecessary ,theCouncil of
Association mayputforwardtotheContracting
Partiesanyappropriate recommendations forthe
solutionofsuchdifficulties .
Article7
Onceacommon agricultural policyhasbeen
introduced fortobacco,hazelnuts ordriedfigs,the
Community shalltakeanymeasures necessary toArticle11
ThisProtocolshallbeannexedtotheAgreement .
PROTOCOL No2
Financial Protocol
THECONTRACTING PARTIES ,
DESIRING topromotetheaccelerated development oftheTurkisheconomy infurtherance
oftheobjectives oftheAgreement ofAssociation ,
HAVEAGREED ASFOLLOWS :

NoL361/38 OfficialJournaloftheEuropean Communities 31.12.77
Article 1
Requestsforthefinancingofinvestment projects
whichwillservetoincreasetheproductivity ofthe
Turkisheconomyandfurthertheobjectives ofthe
Agreement ofAssociation ,andwhicharepartofthe
Turkishdevelopment plan,maybesubmitted bythe
TurkishStateandbyTurkishundertakings tothe
European Investment Bank,whichshallinformthem
oftheactiontakenthereon .tendering procedures .Participation insuch'public
invitations totenderorothertendering procedures
shallbeopenonequaltermstoallnaturalandlegal
personswhoarenationals ofTurkeyorofMember
StatesoftheCommunity .
2.Loansmaybeusedtocoverexpenditure on
importsordomestic expenditure ,_wheresuch
expenditure isnecessary :forcarryingoutapproved
investment projects .
3.TheBankshallensurethatthefundsareusedin
themostjudiciousmannerandinaccordance with
theobjectivesofthisAgreement .Article2
Projectsforwhichrequestsareapproved shallbe
financedbyloans.Theseloansmaybecontracted up
toatotalof175millionunitsofaccount,whichmay
becommitted inthefiveyearsfollowingtheentry
intoforceofthisAgreement .Article6
Turkeyundertakes toallowrecipients oftheseloans
toobtainthecurrencynecessaryfortherepayment of
theloansandofinterestthereon .Article3
Requests forfinancing submitted byTurkish
undertakings shallnotbeapproved withoutthe
agreement oftheTurkishGovernment .
Article7
Assistance providedunderthisProtocolforcarrying
outcertainprojects maytaketheform:of
participation in.financing operations inwhich,in
particular ,thirdcountries ,international finance
organizations orcreditanddevelopment authorities
andinstitutions ofTurkeyorofMemberStatesof
theCommunity-may beconcerned .Article4
1.Loansshallbegrantedonthebasisofthe
economicfeaturesofthe.projectswhichtheyareto
finance .
2.Loans,especially =thoseforinvestment projects
thereturnonwhichisindirectorlongterm,maybe
madeonspecialtermssuchasreducedratesof
interest,extendedrepayment periods,interest-free
periodsand,whereappropriate ,anyotherspecial
repayment termswhichmgyfacilitatetheservicingof
suchloansbyTurkey .
3.Anyloangrantedtoanundertaking ortoan
authority otherthantheTurkishStateshallbe
subjecttoaguarantee fromtheTurkishState.Article8
AidtoTurkisheconomic andsocialdevelopment
undertheconditions setoutinthisAgreement andin
thisProtocol shallbesupplementary tothe
endeavours oftheTurkishState.
Article5
1.TheBankmaymakethegrantingoftheseloans
subjecttopublicinvitation totenderorotherArticle9
ThisProtocolshallbeannexedtothisAgreement .

31.12.77 OfficialJournaloftheEuropean Communities NoL361/39
In:witnesswhereof,theundersigned Plenipotentiaries havesignedthisAgreement .
DoneatAnkarathistwelfthdayofSeptember intheyearone-thousandninehundred
andsixty-three .
ForHisMajestytheKingoftheBelgians,
ForthePresidentoftheFederalRepublicofGermany ,
ForthePresidentoftheFrenchRepublic *
ForthePresidentoftheItalianRepublic ,
For.HerRoyalHighnesstheGrandDuchessofLuxembourg ,
ForHerMajestytheQueenoftheNetherlands .

NoL361/40­ OfficialJournaloftheEuropean Communities 31.12.77
FINALACT
ThePlenipotentiaries of
HisMajestytheKingoftheBelgians ,
ThePresidentoftheFederalRepublicofGermany ,
ThePresidentoftheFrenchRepublic ,
ThePresidentoftheItalianRepublic ,
HerRoyalHighnesstheGrandDuchessofLuxembourg ,
HerMajestytheQueenoftheNetherlands ,and
TheCounciloftheEuropeanEconomic Community ,
oftheonepart,and
ThePresidentoftheRepublicofTurkey,
oftheotherpart,
*
meetingatAnkara,onthetwelfthdayofSeptember intheyearonethousandnine
hundredandsixty-three ,
forthesignatureoftheAgreement establishing anAssociation betweentheEuropean
Economic Community andTurkey,
haveadoptedthefollowingtexts:
Agreement establishing anAssociation betweentheEuropeanEconomic Community
andTurkeyandtheProtocollistedbelow:
ProtocolNo1:Provisional Protocol
ProtocolNo2:Financial Protocol
ThePlenipotentiaries havefurthermore :
—adoptedtheDeclarations whicharelistedbelowandannexedtothisAct(AnnexI):
1.Declaration ofIntentondriedgrapes,inconnection withArticle2ofthe
Provisional Protocol ,
2.Interpretative Declaration onthevalueoftheunitofaccountreferredtoin
Article2oftheFinancialProtocol ,
3.Interpretative Declaration onthedefinition of'Contracting Parties'usedinthe
Agreement ofAssociation ,

31.12.77 OfficialJournaloftheEuropean Communities NoL361/41
—andtakennoteoftheDeclarations oftheGovernment oftheFederalRepublicof
GermanywhicharelistedbelowandannexedtothisAct(AnnexII):
1.Declaration onthedefinition oftheexpression 'Germannational',
2.Declaration ontheapplication oftheAgreement toBerlin.
ThePlenipotentiaries haveagreedthattheDeclarations annexedtothisActshallbe
subjected ,inthesamemanneras,fortheAgreement establishing anAssociation between
theEuropean Economic Community andTurkey,toanyprocedures thatmaybe
necessarytoensuretheirvalidity .
Inwitnesswhereof,theundersigned Plenipotentiaries havesignedthisFinalAct.
DoneatAnkara,onthetwelfthdayofSeptember intheyearonethousand nine
hundredandsixty-three .
ForHisMajestytheKingoftheBelgians ,
ForthePresidentoftheFederalRepublicofGermany ,
ForthePresidentoftheFrenchRepublic ,
ForthePresidentoftheItalianRepublic ,
ForHerRoyalHighnesstheGrandDuchessofLuxembourg ,
ForHerMajestytheQueenoftheNetherlands .

NoL361/42 OfficialJournaloftheEuropean Communities 31.12.77­
Declaration ofIntentionconcerning driedgrapeswithreferencetoArticle2ofthe
Provisional Protocol
TheCommunity declaresthatitdoesnotenvisagetheestablishment ofacommon
organization ofthemarketindriedgrapes.
Interpretative Declaration onthevalueoftheunitofaccountinthecontextofArticle2
oftheFinancial Protocol
TheContracting Partiesdeclarethat:
1.Thevalueoftheunitofaccountusedtoexpresstheamountmentioned inArticle2
oftheFinancialProtocolshallbe0-88867088 grammesoffinegold.
2.TheparityofthecurrencyofaMemberStateoftheCommunity inrelationtothe
unitofaccountdefinedinparagraph 1shallbetherelationbetweentheweightof
finegoldcontainedintheunitofaccountandtheweightoffinegoldcorresponding
totheparvalueofthatcurrencycommunicated totheInternational MonetaryFund.
Ifnoparvaluehasbeencommunicated ,orifexchangeratesdifferingfromthepar
valuebyamarginexceedingthatauthorized bytheInternational MonetaryFundare
appliedtocurrentpayments ,theweightoffinegoldcorresponding totheparityof
thecurrencyshallbecalculated onthebasisoftheexchangerateforacurrency
directlyorindirectlyexpressedinandconvertible intogoldwhichisappliedinthe
MemberStatetocurrentpayments ,onthedayofthecalculation ,andonthebasis
oftheparvaluecommunicated totheInternational MonetaryFundforthatcon­
vertiblecurrency .
3.Theunitofaccountdefinedinparagraph 1shallremainunchanged throughout the
periodinwhichtheFinancialProtocolisinforce.If,however,beforetheendof
thatperiodauniformproportionate changeintheparvaluesofallcurrencies in
relationtogoldshouldbedecidedbytheInternational Monetary Fundunder
Article4,Section7,ofitsArticlesofAgreement ,theweightoffinegoldcontained
intheunitofaccountshallalterininverseratiotothatchange.
IfoneormoreMemberStatesdonotapplythedecisiontakenbytheInternational
Monetary Fundasreferredtointheprecedingsubparagraph ,theweightoffine
goldcontained intheunitofaccountshallalterininverseratiotothechange
decidedbytheInternational MonetaryFund.TheCounciloftheEuropeanCom­
munitiesshall,however ,examinethesituation thuscreatedandshalltakethe
necessarymeasures ,actingbyaqualifiedmajority ,afterreceiving aproposalfrom
theCommission andtheopinionoftheMonetarv Committee .

31.12.77 OfficialJournaloftheEuropean Communities NoL361/43
Interpretative Declaration onthedefinition oftheexpression 'Contracting Parties'used
intheAgreement ofAssociation
TheContracting PartiesagreethatforthepurposesoftheAgreement ofAssociation
'Contracting Parties'meanstheCommunity andtheMemberStatesoralternatively
theMemberStatesaloneortheCommunity aloneontheonehand,andtheTurkish
Republicontheother.Themeaningtobegiventothisexpression ineachparticular
caseistobededucedfromthecontextoftheAgreement andfromthecorresponding
provisions oftheTreatyestablishing theCommunity .Incertaincircumstances 'Con­
tractingParties'may;duringthetransitional periodoftheTreatyestablishing the
Community ,meantheMemberStates,andaftertheexpiryofthatperiodmeanthe
Community .
Declarations bytheGovernment oftheFederalRepublicofGermany
1.Declaration onthedefinition oftheexpression 'Germannational'
AllGermans asdefinedintheBasicLawfortheFederalRepublicofGermany shall
beconsidered nationalsoftheFederalRepublicofGermany .
2,Declaration ontheapplication oftheAgreement toBerlin
TheAgreement ofAssociation shallapplyequallytoLandBerlinunlesstheGovern­
mentoftheFederalRepublicofGermanymakesadeclaration tothecontrarytothe
otherContracting Partieswithinthethreemonthsfollowing theentryintoforceof
theAgreement .