COUNCIL DECISION of 25 July 1991 on the association of the overseas countries and territories with the European Economic Community (91/482/EEC)

THE COUNCIL OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Economic Community, and in particular Article 136 thereof,

Having regard to the Internal Agreement on the financing and administration of Community aid signed in Brussels on 16 July 1990 (hereinafter referred to as 'the Internal Agreement'),

Having regard to the proposal from the Commission (1),

Having regard to the opinion of the European Parliament (2),

Whereas the provisions applicable to the association of the overseas countries and territories (hereinafter referred to as 'the OCT') with the European Economic Community must be laid down for a further period; whereas these provisions apply to the territories for which the French Republic has responsibility, the countries and territories for which the United Kingdom has responsibility, the countries for which the Kingdom of the Netherlands has responsibility and, in part, to Greenland;

Whereas these provisions form part of the European Economic Community's efforts to contribute towards international cooperation and to the solution of international problems of an economic, social and cultural nature, in conformity with the aspirations of the international community towards a new, more just and more balanced international economic order; whereas these efforts led in particular to the signing of the fourth ACP-EEC Convention in Lomé on 15 December 1989, hereinafter referred to as 'the Convention'; whereas, in view of the many similarities between the OCT and many of the ACP States, and while respecting their differing status, the provisions for the OCT should be adopted for the same period as for the ACP States;

Whereas the Community market has long been open to products originating in the OCT and in the ACP States; whereas, having regard to the special relationship between the Community and the OCT, based on the provisions of the Treaty and in particular on Part Four thereof, the said provisions should be improved by affording the OCT a greater degree of flexibility with regard to the rules of origin for products originating in the OCT by adopting new provisions for certain products not originating in the OCT;

Whereas the OCT's development requirements and the promotion of their industrial development on the other hand justify their retaining the possibility of levying customs duties and imposing quantitative restrictions and adopting, by way of derogation, legislation to assist the local population and local activities with a view to promoting or maintaining local employment;

Whereas special provisions should be adopted for rum, arrack and tafia;

Whereas this Decision in no way prejudices the special arrangements established for the import of products originating in the OCT into Spain and Portugal set out in the Annex to Council Decision 86/47/EEC of 3 March 1986 establishing arrangements for trade between Spain and Portugal on the one hand and the overseas countries and territories (OCT) on the other (1), as last extended by Decision 90/699/EEC (2);

Whereas the Community's contribution towards solving the economic and social problems of the OCT and the ACP States encourages it to strengthen relations between the OCT and the ACP States in various areas of cooperation, including trade;

Whereas, moreover, some OCT are in the same geographical area as overseas departments and ACP States; whereas the development of different parts of the same geographical area, which have similar features and are subject to similar constraints, should be achieved notably through the implementation of joint regional projects, whatever the status of the entities under Community law, so permitting economies of scale and strengthening regional cooperation between the partners concerned; whereas the Community has already created the instruments, notably financial instruments, to implement this cooperation, in the case of the overseas departments by means of Regulation (EEC) No 2052/88 (3) on the tasks of the Structural Funds and the operations of the European Investment Bank (hereinafter referred to as 'the Bank'); subsequent texts and Council Decision 89/687/EEC of 22 December 1989 establishing a programme of options specific to the remote and insular nature of the French overseas departments (Poseidom) (4), and, in the case of the ACP States, by means of the Convention and the Internal Agreement;

Whereas these neighbouring entities are traditionally confronted with similar problems, regardless of their differences in status; whereas regional cooperation tailored to local conditions requires more direct dialogue between the parties concerned; whereas encouragement should therefore be given to regional consultation procedures between overseas departments, OCT and ACP States, in close liaison with the Member States concerned in the case of overseas departments and the OCT;

Whereas, during the negotiations on the Convention, the Community improved a number of the provisions concerning areas and instruments of cooperation with the ACP States; whereas provisions for the OCT should be improved on the same lines;

Whereas, in order to facilitate the implementation of this Decision in the future and to ensure that financial aid is distributed as fairly as possible, aid should be allocated among the territories for which the French Republic has responsibility, the countries for which the Kingdom of the Netherlands has responsibility and the countries and territories for which the United Kingdom has responsibility; whereas lessons should be drawn from past experience and the programming and implementation procedures of development finance cooperation speeded up as much as possible;

Whereas there is general recognition of the active participation of local authorities of both the Community regions and of non-member countries in the implementation of common policies or in relations with the Community; whereas the association with the OCT has no provision for such participation, apart from the implementation of development finance cooperation in some OCT or in a more general way in others; whereas the participation of elected representatives of the population concerned should be stepped up, while respecting the constitutions of the Member States responsible for the OCT; whereas the principle of partnership between the Commission, the Member State and the country or territory meets this double objective;

Whereas various regulations adopted with a view to the completion of the single market are not applicable in the OCT but it may be advisable to examine ways of partially or totally extending them to the OCT, notably in the partnership framework;

Whereas Article 362 of the Convention makes provision for a country or territory referred to in Part Four of the Treaty that becomes independent to accede to the Convention; whereas it is therefore necessary to make provision for possible amendment of this Decision; whereas Article 1 of the Internal Agreement provides that where a country or territory which has become independent accedes to the Convention, the financial aid allocated to the OCT from the European Development Fund shall, by decision of the Council, be reduced and the amounts allocated to the ACP States correspondingly increased,

HAS DECIDED AS FOLLOWS:

PART ONE

GENERAL PROVISIONS OF EEC-OCT COOPERATION

Chapter 1

Objectives and principles of cooperation

Article 1

The aim of this Decision is to promote and accelerate the economic, cultural and social development and to strengthen the economic structures of the OCT listed in Annex I.

Article 2

The Community shall provide support for the OCT's efforts to achieve comprehensive development based on their cultural and social values, their human capacities, their natural resources and their economic potential in order to promote the OCT's social, cultural and economic progress and the well-being of their populations through the satisfaction of their basic needs, the recognition of the role of women and the enhancement of people's capacities, with respect for their dignity.

Such development shall be based on a sustainable balance between economic objectives, the rational management of the environment and the enhancement of natural and human resources.

Article 3

Cooperation shall be directed towards development centred on man, the main protagonist and beneficiary of development, which thus entails respect for, and promotion of, all human rights. Cooperation operations shall thus be conceived in accordance with the positive approach, where respect for human rights is recognized as a basic factor of real development and where cooperation is conceived as a contribution to the promotion of these rights.

The role and potential of initiatives taken by individuals and groups shall also be recognized and fostered in order to achieve in practice real participation of the population in the development process.

Article 4

The Community and the OCT shall give special importance and high priority to regional cooperation and integration. In this context, the Community shall offer effective support for the OCT's efforts to organize themselves into regional groupings and to step up their cooperation at regional and inter-regional level with a view to promoting a more just and more balanced international economic order.

Article 5

The Community acknowledges the need to accord special treatment to the least-developed OCT and to take account of the specific difficulties confronting them. It shall pay special attention to improving the living conditions of the poorest sections of the population.

Cooperation shall comprise, inter alia, special treatment when determining the volume of financial resources and the conditions attached thereto in order to enable the least-developed OCT to overcome structural and other obstacles to their development.

Article 6

Within the scope of their respective responsibilities, the authorities participating in the partnership framework referred to in Article 10 shall examine periodically the results of the implementation thereof and provide any necessary impetus and opinions for the attainment of the objectives of this Decision.

Any questions that might directly hamper the effective attainment of the objectives of this Decision may be raised in the context of this procedure.

Chapter 2

Decentralized cooperation and partnership

Article 7

In order to encourage all parties from the OCT and the Community which are in a position to contribute to the autonomous development of the OCT to put forward and implement initiatives, cooperation shall also support, within limits laid down by the relevant OCT authorities, development operations put forward by economic, social and cultural organizations in the framework of decentralized cooperation, in particular where they combine the efforts and resources of organizations from the OCT and their counterparts from the Community. This form of cooperation shall be aimed in particular at making the capabilities, original operating methods and resources of such parties available to the development of the OCT.

The parties referred to in this Article are decentralized public authorities, rural and village groupings, cooperatives, firms, trade unions, teaching and research centres, non-governmental development organizations, various associations and all groups and parties which are able to, and wish to, make their own spontaneous and original contribution to the development of OCT.

Article 8

Cooperation shall encourage and support the initiatives of the OCT parties referred to in Article 7, provided they correspond with the priorities, guidelines and development methods adopted by the relevant authorities of the OCT concerned. In this framework, cooperation shall support either the independent activities of OCT parties or the activities of OCT parties which are combined with support from similar parties from the Community which make their capabilities, experience, technological and organizational capacities or financial resources available to them.

Cooperation shall encourage parties from the OCT and the Community to provide supplementary financial and technical resources for the development effort. Cooperation may provide decentralized cooperation operations with financial and/or technical support drawn from the resources provided for in this Decision under the conditions laid down in Article 9.

This form of cooperation shall be organized in accordance with the role and the prerogatives of the public authorities of the OCT.

Article 9

Decentralized cooperation operations may be supported through the instruments of development finance cooperation, with the approval of the relevant authorities of the OCT concerned, preferably from the programming stage, of the principle of and the conditions for providing support for this form of cooperation. Such support shall be provided to the extent to which it is necessary for the successful implementation of the proposed operations provided the usefulness of the latter has been recognized and in accordance with the provisions for financial and technical cooperation. Projects under this form of cooperation may be linked, or not, with programmes in the focal sectors of the indicative programmes, with priority for those linked to the focal sectors.

Article 10

With the aim of enabling the competent local authorities of the OCT to take greater part, in the framework of the respective constitutions of the Member States having responsibility for them, in giving effect to the principles of the EEC-OCT association, while respecting the powers of the respective central authorities of the Member States concerned, a consultation procedure based on the principle of partnership between the Commission, the Member State and the OCT is hereby set up.

This partnership, the detailed provisions for which are set out in Articles 234 to 236 of this Decision, shall provide the opportunity for examining what has been achieved in the association and discussing any problems arising in relations between the OCT and the Community.

PART TWO

THE AREAS OF EEC-OCT COOPERATION

TITLE I

ENVIRONMENT

Article 11

1. In the framework of this Decision, the protection and the enhancement of the environment and natural resources, the halting of the deterioration of land and forests, the restoration of ecological balances, the preservation of natural resources and their rational exploitation are basic objectives that the OCT concerned shall strive to achieve with Community support with a view to bringing an immediate improvement in the living conditions of their populations and to safeguarding those of future generations.

2. The Community recognizes that the existence of some OCT is under threat as a result of a rapid deterioration in the environment that hinders any development efforts, in particular those aimed at achieving the priority objectives of food self-sufficiency and food security.

For many OCT, efforts to halt this deterioration of the environment and conserve natural resources are imperative and call for the preparation and implementation of coherent modes of development that have due regard for ecological balances.

Article 12

The dimension of the environmental problem and of the means to be deployed mean that operations will have to be carried out in the context of overall, long-term policies, drawn up and implemented by the relevant authorities of the OCT concerned at local, national, regional or international level with international support.

To this end, the Community shall give priority to:

- a preventive approach aimed at avoiding harmful effects on the environment as a result of any programme or operation,

-a systematic approach that will ensure ecological viability at all stages, from identification to implementation,

-a trans-sectoral approach that takes into account not only the direct but also the indirect consequences of the operations undertaken.

Article 13

The protection of the environment and natural resources requires a comprehensive approach embracing the social and cultural dimensions.

In order to ensure that this specific dimension shall be taken into account, attention shall be given to incorporating suitable educational, training, information and research schemes in projects and programmes.

Article 14

Cooperation instruments appropriate to environmental needs shall be designed and implemented.

Where necessary, both qualitative and quantitative criteria may be used. Jointly approved check-lists, adopted, where appropriate, in the course of the partnership consultations provided for in Articles 234 to 236, shall be used to help estimate the environmental viability of proposed operations, whatever their scale. Environmental impact assessment shall be carried out as appropriate in the case of large-scale projects and those posing a significant threat to the environment and should, as a minimum:

-describe the measures planned to avoid or reduce any major adverse consequences and, where possible, to remedy any such consequences,

-provide the necessary information for identifying and evaluating the main effects the project is likely to have on the environment.

For the proper integration of environmental considerations, physical inventories, where possible translated into accounting terms, shall be drawn up.

The implementation of these instruments has to ensure that, should an adverse environmental impact be foreseen, the necessary corrective measures are formulated in the early stage of the preparation of the proposed project or programme so that it can go ahead in accordance with the planned timetable, though improved in terms of environmental and natural resource protection.

Article 15

The Community, desirous of bringing real protection and effective management to the environment and natural resources, considers that the areas of EEC-OCT cooperation covered in this part of this Decision must be systematically examined and appraised in this light.

In this spirit, the Community shall support efforts made by the relevant OCT authorities at local, national, regional and international level and also operations mounted by intergovernmental and non-governmental organizations in furtherance of local, national and intergovernmental policies and priorities.

Article 16

1. The Community undertakes, for its part, to make every effort to ensure that international movements of hazardous waste and radioactive waste are generally controlled, and emphasizes the importance of efficient international cooperation in this area.

With this in view, the Community shall prohibit all direct or indirect export of such waste to the OCT while at the same time the relevant authorities of the OCT shall prohibit the direct or indirect import into their territory of such waste from the Community or from any other country, without prejudice to specific international undertakings concerning these two areas that have been made, or may be made, in future in the competent international forums.

These provisions shall not prevent a Member State to which an overseas country or territory has chosen to export waste for processing from returning the processed waste to the overseas country or territory of origin.

The Community and, where necessary, the relevant authorities of the OCT shall expedite adoption of the necessary internal legislation and administrative regulations to implement this undertaking.

2. The relevant authorities of the OCT undertake to monitor strictly the implementation of the prohibition measures referred to in the second subparagraph of paragraph 1.

3. The term 'hazardous waste' within the meaning of this Article shall cover categories of products listed in Annexes 1 and 2 to the Basle Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal.

As regards radioactive waste, the applicable definitions and thresholds shall be those which will be laid down in the framework of the International Atomic Energy Agency (IAEA). In the meantime, the said definitions and thresholds shall be those specified in Annex VI.

Article 17

At the request of the relevant authorities of the OCT, the Community shall provide available technical information on pesticides and other chemical products with a view to helping the OCT develop or reinforce a suitable and safe use of these products.

Where necessary and in accordance with the provisions for development finance cooperation, technical assistance can be given in order to ensure conditions of safety at all stages, from production to disposal of such products.

Article 18

The Community and the relevant authorities of the OCT recognize the value of exchanging views, using consultation machinery provided for in this Decision, on major ecological hazards, whether on a planetary scale (such as the greenhouse effect, the deterioration of the ozone layer, tropical forests, and so on), or of a more specific scope resulting from the application of industrial technology. Such consultations may be requested by the Commission, a Member State or the relevant authorities of an overseas country or territory, in so far as these hazards may in practice affect a country or territory, and shall be aimed at assessing the scope for joint action to be undertaken within the terms of this Decision. If necessary, the consultations will also provide for an exchange of views prior to discussions conducted on these subjects in the appropriate international forums.

TITLE II

AGRICULTURAL COOPERATION, FOOD SECURITY

AND RURAL DEVELOPMENT

Article 19

Cooperation in the agricultural and rural sector, that is arable farming, livestock production, fisheries and forestry, shall be aimed, inter alia, at:

- continuously and systematically promoting viable and sustainable development based in particular on protection of the environment and the rational management of natural resources,

-supporting the OCT's efforts to increase their degree of self-sufficiency in food, in particular by strengthening their capacity to provide their populations with food of adequate quantity and quality and to ensure a satisfactory level of nutrition,

-reinforcing food security at local, regional and inter-regional level by stimulating regional trade flows of food products and improving coordination of the food policies of the countries concerned,

-guaranteeing the rural population incomes that will significantly improve their standard of living, in order to be able to cover their essential needs in the areas of food, education, health and living conditions,

-encouraging the active participation of the rural population, both men and women, in their own development by organizing small farmers into associations and integrating producers, men and women, more effectively into national and international economic activity,

-increasing the participation of women in their capacity as producers, notably by improving access to all factors of production (land, inputs, credit, extension services and training),

-creating satisfactory living conditions and a satisfactory life style in the rural environment, notably by developing social and cultural activities,

-improving rural productivity, notably by transfers of appropriate technology and the rational exploitation of plant and animal resources,

-reducing post-harvest losses,

-reducing the workload of women by, inter alia, promoting suitable post-harvest and food-processing technologies,

-diversifying job-creating rural activities and expanding activities that back up production,

-improving production by on-the-spot processing of the products of arable and livestock farming, fisheries and forestry,

-ensuring a better balance between food crops and export crops,

-developing and strengthening agricultural research tailored to the natural and human environment of the country and the region and meeting extension service and food security requirements,

-in the context of the above objectives, protecting the natural environment particularly through specific operations to protect and conserve ecosystems.

Article 20

1. Operations to attain the objectives referred to in Article 19 shall be as varied and practical as possible, at local, regional and inter-regional level.

2. They shall be designed and deployed to implement the policies and strategies established by the relevant authorities of the OCT and respect their priorities.

3. Support shall be provided for such policies and strategies in the context of agricultural cooperation in accordance with the provisions of this Decision.

Article 21

1. Development of production calls for a rational stepping-up of animal and crop production and involves:

-improving farming methods for rain-fed crops while conserving soil fertility,

-developing irrigated crops, inter alia, through different types of agricultural water schemes (village water engineering, regulation of watercourses and soil improvement) ensuring optimum use and thrifty management of water which can be mastered by farmers and by local communities; operations shall also consist in the rehabilitation of existing schemes,

-improving and modernizing cultivation techniques and making better use of factors of production (improved varieties and breeds, agricultural equipment, fertilizers, plant treatment preparations),

-in the sphere of livestock farming, improving animal feed (more effective management of pasture, increased fodder production, more new water-points and repair of existing ones) and animal health, including the development of the infrastructure required for that purpose,

-better integration of arable and livestock farming,

-in the sphere of fisheries, modernizing fish-farming and developing aquaculture.

2. Other prerequisites for the development of production are:

-the extension of secondary and tertiary back-up activities for agriculture, such as the manufacture, modernization and promotion of agricultural and rural equipment and other inputs and, where necessary, their importation,

-the establishment or consolidation of agricultural savings and credit facilities adapted to local conditions in order to promote access to production factors for farmers,

-the encouragement of all policies and incentives for producers which are appropriate to local conditions with a view to greater productivity and to improving farmers' incomes.

Article 22

In order to ensure a return on output, agricultural cooperation shall contribute to:

- adequate means of preservation and suitable storage facilities for producers,

-effective control of disease, pests and other factors causing production losses,

-basic marketing arrangements underpinned by suitable organization of producers, with the necessary material and financial resources, and by adequate means of communication,

-flexible operation of marketing channels, taking account of every form of public or private initiative, to enable local markets, areas of the country with shortfalls and urban markets to be supplied, in order to cut down dependence on outside sources,

-facilities to prevent breaks in supplies (security storage) and guard against erratic price fluctuations (intervention storage),

-processing, packaging and marketing of products, particularly by developing artisanal and agro-industrial units, in order to adapt them to the trend of the market.

Article 23

Rural promotion measures shall involve:

-the organization of producers within associations or communities in order to enable them to derive more benefit from joint contracts and investment and jointly owned equipment,

-encouragement for the participation of women and for recognition of the active role they play as full partners in the rural production and economic development processes,

-the development of social and cultural activities (such as health, education and culture) essential for improving rural life styles,

-suitable extension service to train all farmers, both men and women,

-improvements in the training of instructors at all levels.

Article 24

Cooperation in agronomic and agrotechnical research shall contribute:

-to the development, in the OCT, of local and regional research capacities suited to the local natural, social and economic conditions of crop and animal production,

-in particular, to improving varieties and breeds, the nutritional quality of products and their packaging, and developing technology and processes accessible to the producers,

-to better dissemination of the results of research undertaken in an overseas country or territory, an ACP or non-ACP State and applicable in other OCT or other ACP States,

-to extension work in order to inform the greatest possible number of users of the results of such research,

-to promoting increased coordination of research, particularly at regional and international levels and implementing appropriate operations to achieve these objectives.

Article 25

Agricultural cooperation schemes shall be carried out in accordance with the detailed provisions and procedures laid down for development finance cooperation and in this context they may also cover the following:

1. under the heading of technical cooperation:

- exchange of information between the Community, the OCT and the ACP States and between the OCT and the ACP States (on, for example, water use, intensive production techniques and the results of research),

-exchange of experience between professionals working in such areas as credit and savings, cooperatives, mutual insurance, artisanal activities and small-scale industry in rural areas;

2.under the heading of financial cooperation:

-supply of factors of production,

-support for market regulation bodies, on the basis of a coordinated approach to production and marketing problems,

-participation in the constitution of funds for agricultural credit facilities,

-opening of credit lines for farmers, farmers' trade organizations, artisans, women's groupings and small-scale industrial operators in rural areas, geared to their activities (such as supplies, primary marketing and storage), and also for associations implementing campaigns on specific themes,

-support for measures to combine industrial and trade skills in the OCT and the Community within artisanal or industrial units, for the manufacture of inputs and equipment and for such purposes as the maintenance, packaging, storage, transport and processing of products.

Article 26

1. Community measures aimed at food security in the OCT shall be conducted in the context of the food strategies or policies of the relevant authorities of the OCT concerned and of the development objectives which they lay down.

They shall be implemented, in coordination with the instruments of this Decision, in the framework of Community policies and the measures resulting therefrom with due regard for the Community's international commitments.

2. In this context, multiannual indicative programming may be carried out with the relevant authorities of the OCT which so wish, so that their food supplies can be better predicted.

Article 27

With regard to available agricultural products, the Community undertakes to ensure that export refunds can be fixed further in advance for all OCT in respect of a range of products drawn up in the light of their food requirements.

Advance fixing may be for one year and shall be applied each year for the duration of this Decision, it being understood that the level of the refund will be determined in accordance with the methods normally followed by the Commission.

Article 28

In implementing the provisions of this Title, special attention shall be paid to assisting and enabling the least-developed OCT to utilize them fully. At the request of the relevant authorities of the OCT concerned, particular attention shall be paid to the specific difficulties of these OCT in carrying out the policies or strategies established by the relevant authorities to strengthen their food self-sufficiency and food security. In this context, cooperation shall bear in particular on the productive sectors (including the supply of physical, technical and financial inputs), transport, marketing, packaging and the setting-up of storage infrastructure.

Article 29

At the request of their relevant authorities, the OCT may be eligible for the services of the Technical Centre for Agricultural and Rural Cooperation, the objectives and tasks of which are described in Article 53 of the Convention.

Any costs resulting from services provided by the Centre for the benefit of the OCT which make use of them shall be financed from the funds provided for in Article 154 for whichever of the three groups those OCT belong to.

TITLE III

DEVELOPMENT OF FISHERIES

Article 30

To encourage the development of the exploitation of the fishery resources of the OCT, all the mechanisms for assistance and cooperation provided for in this Decision, notably financial and technical assistance in accordance with the terms set out in Title III of Part Three, shall be applied to fisheries.

The priority objectives of such cooperation shall be to:

- improve knowledge of the fisheries environment and its resources,

-increase the means of protecting fishery resources and monitoring their rational exploitation,

-encourage the rational exploitation of the fishery resources of the OCT and the resources of high seas in which the OCT and the Community share interests,

-increase the contribution of fisheries including aquaculture and non-industrial fishing, to rural development, by giving importance to the role they play in strengthening food security, improving nutrition and the social and economic conditions of the communities concerned; this implies, inter alia, a recognition of and support for women's work at the post-harvest stage and in the marketing of fish,

-increase the contribution of fisheries to industrial development by increasing catches, output, processing and exports.

Article 31

Assistance from the Community for fisheries development shall include support in the following areas:

(a) fisheries production, including the acquisition of boats, equipment and gear, the development of infrastructure for rural fishing communities and the fishing industry and support for aquaculture projects, notably by providing specific lines of credit to appropriate OCT institutions for onlending to the operators concerned;

(b)fisheries management and protection, including the assessment of fish stocks and of aquacultural potential, the improvement of environmental monitoring and control and the development of the capacity of the relevant authorities of the OCT to manage rationally the fishery resources in the exclusive economic zones of the OCT;

(c)processing and marketing of fishery products, including the development of processing, collection, distribution and marketing facilities and operations; the reduction of post-harvest losses and the promotion of programmes to improve fish utilization and nutrition from fishery products;

(d)the training of OCT nationals in all areas of fisheries, the development and strengthening of OCT research capabilities and the promotion of regional cooperation in fisheries management and development.

Article 32

In implementing Articles 30 and 31, special care should be taken to enable the least-developed OCT to maximize their capabilities to manage their fishery resources.

Article 33

Conservation and the optimum use of the living resources of the sea shall be carried out through direct or regional cooperation or, where appropriate, through international organizations.

TITLE IV

COOPERATION IN THE FIELD OF COMMODITIES

Article 34

Cooperation with the OCT in the field of commodities shall take into account:

- the fact that the economies of a large number of OCT are highly dependent on their exports of primary products,

-the deteriorating situation of their exports in most cases, mainly as a result of the downward trend in world prices,

-the structural nature of the difficulties in many commodity sectors both within the economies of the OCT and at international level.

Article 35

The main objectives of cooperation in the field of commodities are:

-diversification, both horizontal and vertical, of the OCT economies, in particular through the development of processing, marketing, distribution and transport (PMDT), and

-improvement of the competitiveness of OCT commodities on world markets through the reorganization and rationalization of their production, marketing and distribution activities.

All appropriate means should be deployed to enable them to go as far as possible in the attainment of these objectives; to that end coordinated use should be made of the range of instruments and resources of this Decision.

Article 36

Cooperation operations in the field of commodities shall be directed towards developing international, regional and local markets; they shall be carried out in accordance with the detailed rules and procedures laid down in this Decision, notably those relating to development finance cooperation. In this context, they may also cover:

1. the enhancement of human resources, including in particular:

- training programmes and courses for operators in the sectors concerned,

-support for local or regional schools and training institutes specializing in the sector;

2.the fostering of investments by Community and OCT economic operators in the sector concerned, notably by means of:

-information and awareness-raising campaigns directed at operators likely to invest in activities that diversify and add value to OCT commodities,

-a more dynamic use of risk capital for firms wishing to invest in these PMDT activities,

-utilization of the pertinent provisions on investment promotion, protection, financing and support;

3.the development and improvement of the infrastructure necessary for activities in the sector concerned, and notably transport and telecommunications networks.

Article 37

In pursuit of the objectives set out in Article 35, particular importance shall be attached to:

- ensuring that market signals, whether local, regional or international, are duly taken into account,

-taking account of the economic and social impact of the operations carried out,

-ensuring greater consistency at regional and international level between the strategies pursued by the various OCT concerned,

-seeking an effective distribution of resources between the various activities and operators in the production sectors concerned.

TITLE V

INDUSTRIAL DEVELOPMENT, MANUFACTURING AND PROCESSING

Article 38

In order to facilitate the attainment of the industrial development objectives of the OCT, it is important to ensure that an integrated and sustainable development strategy, which links activities in different sectors to each other, is evolved. Thus sectoral strategies for agricultural and rural development, manufacturing, mining, energy, infrastructure and services should be designed in such a way as to foster interlinkages within and between economic sectors with a view to maximizing local value added and creating, where possible, an effective capacity to export manfactured products, while ensuring the protection of the environment and natural resources.

These objectives shall be pursued by implementing, in addition to the specific provisions on industrial cooperation, the provisions on trade promotion for OCT products and private investments.

Article 39

Industrial cooperation, as a key instrument for industrial development, shall have as its objectives:

(a) the creation of the basis of and framework for effective cooperation between the Community and the OCT in the fields of manufacturing and processing, mineral resources development, energy resources development, transport and communications;

(b)the promotion of conditions conducive to industrial enterprise development, and local and external investment;

(c)improvement of capacity utilization and rehabilitation of existing industrial undertakings which are potentially viable, in order to restore the productive capacities of OCT economies;

(d)fostering the creation of and participation in enterprises by OCT nationals, especially small and medium-sized enterprises that produce and/or use local inputs; promotion of new enterprises and strengthening of existing ones;

(e)support for the establishment of new industries to supply the local market in a cost-effective manner and ensure the growth of the non-traditional export sector in order to increase earnings, provide employment opportunities and increase real incomes;

(f)promoting increasingly close relations in the industrial field between the Community and the OCT, and in particular further encouraging the speedy establishment of EEC-OCT industrial joint ventures;

(g)promoting business associations in the OCT as well as other institutions for industrial enterprise and business development.

Article 40

The Community shall assist the OCT in the improvement of their institutional framework, reinforcement of their financing institutions and the estab lishment, rehabilitation and improvement of industry-related infrastructure. The Community shall equally assist the OCT in their efforts to integrate industrial structures at regional and inter-regional level.

Article 41

On the basis of a request from the relevant authorities of a country or territory, the Community shall provide the assistance required in the field of industrial training at all levels, bearing notably on the evaluation of industrial training needs and the establishment of corresponding programmes, the setting-up and operation of local or regional OCT industrial training establishments, training for OCT nationals in appropriate establishments, on-the-job training both in the Community and in the OCT and also cooperation between industrial training establishments in the Community and their counterparts in the OCT, and between the latter and those of other developing countries.

Article 42

In order to achieve the objectives of industrial development, the Community shall assist in the establishment and expansion of all types of viable industry which have been identified by the relevant authorities of the OCT as important in terms of their industrialization objectives and priorities.

In this context the following areas merit particular attention:

(i) manufacturing and processing of primary products:

(a) industries processing, on a local or regional basis, raw materials for export;

(b)industries based on local needs and resources, focused on local and regional markets and mainly small and medium-sized markets; industries geared to the modernization of agriculture, the efficient processing of agricultural products and the manufacture of agricultural inputs and tools;

(ii)engineering, metallurgical and chemical industries:

(a)engineering enterprises for the production of tools and equipment primarily tailored to maintaining existing plant and equipment in the OCT. These enterprises should, as a matter of priority, support the manufacturing and processing sector, the major export sectors, and small and medium-sized enterprises directed at satisfying basic needs;

(b)metallurgical industries based on the mining products of the OCT, aimed at the secondary processing of mining products to supply OCT engineering and chemical industries;

(c)chemical industries, particularly on a small and medium scale, aimed at the secondary processing of mineral products to supply the other branches of industry, and also the agricultural and health sectors;

(iii)industrial rehabilitation and capacity utilization: the restoration, upgrading, reorganization, restructuring and maintenance of existing potentially viable industrial capacities. Special emphasis should be put in this respect on industries with a low import content that provide up-stream and down-stream linkages and have a favourable effect on employment. Rehabilitation activities should be targeted at the creation of conditions necessary to make enterprises being rehabilitated self-sustaining.

Article 43

The Community shall assist the OCT to develop, during the period of application of this Decision, as a matter of priority, viable industries, as defined in Article 42, in accordance with the capacities and decisions of the relevant authorities of each country or territory and their respective endowments, taking into account the adjustment of industrial structures taking place in the OCT, the Community and throughout the world.

Article 44

The Community shall contribute in a spirit of mutual interest to the development of EEC-OCT, intra-OCT and OCT-ACP cooperation between enterprises by way of information and industrial promotion activities.

The aim of such activities shall be to intensify the regular exchange of information, organize the contacts required in the industrial sphere between industrial policy-makers, promoters and economic operators from the Community, the OCT and the ACP States, carry out studies, notably feasibility studies, facilitate the establishment and operation of OCT industrial promotion bodies and foster joint investment, subcontracting arrangements and any other form of industrial cooperation between enterprises in the Member States of the Community, in the OCT and in the ACP States.

Article 45

The Community shall contribute to the establishment and development of small and medium-sized enterprises in the artisanal, commercial, service and industrial sectors in view of the essential role that these enterprises play in the modern and informal sectors in building up a diversified economic fabric and in the general development of the OCT, and in view of the advantages they offer as regards the acquisition of skills, the integrated transfer and adaptation of appropriate technology and opportunities for taking the best advantage of local manpower. The Community shall also help with sectoral evaluation and the establishment of action programmes, with the setting-up of appropriate infrastructure, the establishment, strengthening and operation of institutions providing information, promotion, extension, training, credit or guarantee and transfer of technology facilities.

The Community and the relevant authorities of the OCT shall encourage cooperation and contact between small and medium-sized enterprises in the Member States, the OCT and the ACP States.

Article 46

With a view to assisting the OCT to develop their technological base and indigenous capacity for scientific and technological development and facilitating the acquisition, transfer and adaption of technology on terms that will bring about the greatest possible benefits and minimize costs, the instruments of development finance cooperation may be used to contribute to:

(a) the establishment and strengthening of industry-related scientific and technical infrastructure in the OCT;

(b)the drawing-up and implementation of research and development programmes;

(c)the identification and creation of opportunities for collaboration among research institutes, institutions of higher learning and enterprises of the OCT, the ACP States, the Community, the Member States and other countries;

(d)the establishment and promotion of activities aimed at the consolidation of appropriate indigenous technology and the acquisition of relevant foreign technology, in particular that of other developing countries;

(e)the identification, evaluation and acquisition of industrial technology, including the negotiation on favourable terms and conditions of foreign technology, patents and other industrial property, in particular through financing or through other suitable arrangements with firms and institutions within the Community;

(f)providing advisory services for the preparation of regulations governing the transfer of technology and for the supply of available information, in particular on the terms and conditions of technology contracts, the types and sources of technology, and the experience of the OCT and other countries with the use of certain types of technology;

(g)the promotion of technology cooperation between OCT and between them and the ACP States or other developing countries, including support to research and development units, in particular at regional level, in order to make the best use of any particularly appropriate scientific and technical facilities they may possess;

(h)facilitating, wherever possible, access to and use of documentary and other data sources available in the Community.

Article 47

In order to enable the OCT to obtain full benefit from the trade arrangements and other provisions of this Decision, promotion schemes shall be undertaken for the marketing of OCT industrial products on both Community and other external markets, and also in order to stimulate and develop trade in industrial products among the OCT and between the OCT and ACP States. Such schemes shall cover market research, marketing and the quality and standardization of manufactured goods, in accordance with Articles 152 and 153 and taking into account Articles 84 and 85.

Article 48

At the request of their relevant authorities, the OCT may be eligible for the services of the Centre for the Development of Industry (CDI), the objectives and activities of which are described in Articles 89 and 90 respectively of the Convention, or those of the Euro Business Information Centres set up under the Community's business promotion policy.

Any costs resulting from services provided by the Centre or the Euro Business Information Centres for the benefit of the OCT shall be financed from the funds provided for in Article 154 for whichever of the three groups those OCT belong to.

Article 49

1. In implementing this Title, the Community shall pay special attention to the specific needs and problems of the least-developed OCT in order to establish the basis for their industrialization (the formulation of industrial policies and strategies, economic infrastructure and industrial training), notably with a view to adding value to raw materials and other local resources in the following fields, in particular:

- processing of raw materials,

-development, transfer and adaptation of technologies,

-development and financing of schemes in favour of small and medium-sized enterprises,

-development of industrial infrastructure and energy and mining resources,

-adequate training in the scientific and technical areas,

-production of equipment and inputs for the rural sector.

Such operations may be implemented with assistance from the CDI or the Euro Business Information Centres.

2. At the request of one or more of the least-developed countries or territories, the CDI shall grant special assistance for identification of on-the-spot industrial promotion and development possibilities, notably in raw materials processing and the production of equipment and inputs for the rural sector.

Article 50

In order to implement industrial cooperation, the Community shall help carry out programmes, projects and operations submitted to it on the initiative or with the agreement of the relevant authorities of the OCT. To this end, it shall use all the means provided in this Decision, notably those at its disposal under development finance cooperation and, in particular, those which are the responsibility of the Bank, without prejudice to operations to assist OCT in mobilizing finance from other sources.

Industrial cooperation programmes, projects and operations which involve Community financing shall be implemented in conformity with Title III of Part Three of this Decision, having regard to the particular characteristics of aid operations in the industrial sector.

TITLE VI

MINING DEVELOPMENT

Article 51

The main objectives of mining development shall be to:

- exploit all types of mineral resources in a way which ensures the profitability of mining operations in both export and local markets, while also meeting environmental concerns, and

-enhance the potential of human resources,

with a view to promoting and expediting diversified economic and social development.

Article 52

At the request of the relevant authorities of one or more of the OCT, the Community shall carry out technical assistance or training activities to strengthen their scientific and technical capacity in the field of geology and mining in order that they may derive greater benefit from available know-how and direct their exploration and prospecting programmes accordingly.

Article 53

Having regard to local, national and external economic considerations and with a view to diversification, the Community shall cooperate, as appropriate, through its technical and financial assistance programmes with the OCT in their prospecting and exploration efforts at all stages, both onshore and on the continental shelf as defined in international law.

Where appropriate, the Community shall also give its technical and financial assistance to the establishment of local, national or regional exploration funds in the OCT.

Article 54

With the aim of supporting efforts to exploit the OCT's mining resources, the Community shall contribute towards the support of projects to rehabilitate, maintain, rationalize and modernize economically viable production units in order to make them more operational and more competitive.

It shall also contribute to the identification, drawing-up and implementation of new viable projects to an extent compatible with investment and management capacities as well as market trends, taking particular account of the financing of feasibility and pre-investment studies.

Particular attention shall be accorded to:

- operations to enhance the role of small and medium-scale projects, so promoting local mining enterprises with particular emphasis on minerals for industry and agriculture, destined notably for the local or regional markets, and also new products, and

-operations to protect the environment.

Cooperation shall also support the efforts of the relevant authorities of the OCT to:

-build up supporting infrastructure,

-take measures to ensure that mining development makes the greatest possible contribution to the producer countries' social and economic development, such measures including the optimal use of mining revenue and the integration of mining development into industrial development and into an appropriate policy of land use planning,

-encourage investment,

-promote regional cooperation.

Article 55

In order to contribute to the objectives set out above, the Community shall be prepared to give its technical and financial assistance to help with the exploitation of the OCT's mining protential in accordance with the procedures appropriate to each of the instruments at its disposal and according to the provisions of this Decision.

In the sphere of research and investment preparatory to the launching of mining projects, the Community may give assistance in the form of risk capital, possibly in conjunction with contributions of capital from the OCT concerned and other sources of financing, in accordance with the procedures laid down in Article 156.

The resources referred to in these provisions may be supplemented, for projects of mutual interest, by:

(a) other Community financial and technical resources;

(b)action aimed at the mobilization of public and private capital, including cofinancing.

Article 56

The Bank may, in accordance with its Statute, commit its own resources on a case-by-case basis beyond the amount fixed in Article 154 for mining investment projects recognized by the relevant authorities of the country or territory concerned and by the Community as being of mutual interest.

TITLE VII

ENERGY DEVELOPMENT

Article 57

In view of the seriousness of the energy situation in the majority of the OCT, owing partly to the crisis caused in many countries by dependence on imported petroleum products, and in view of the effects the use of fossil fuels have on the climate, there should be cooperation in this area with a view to finding solutions to their energy problems.

Particular emphasis shall be placed on energy programming, operations for saving and making efficient use of energy, reconnaissance of energy potential and the economically and technically appropriate promotion of new and renewable sources of energy.

Article 58

Cooperation in the field of energy shall promote the development of the OCT's conventional and non-conventional energy potential and their self-sufficiency.

The main objectives of energy development shall be to:

(a) promote economic and social development by exploiting and developing local and regional energy resources in an appropriate manner from the technical, economic and environmental viewpoints;

(b)make energy production and use more efficient and, where the potential exists, increase energy self-sufficiency;

(c)encourage increased use of alternative, new and renewable energy sources;

(d)improve living conditions in urban, outlying and rural areas and propose solutions to these areas' energy problems that are appropriate to local needs and resources.

Article 59

In order to attain the abovementioned objectives, energy cooperation schemes may, at the request of the relevant authorities of one or more of the OCT concerned, be focused on:

(a) collection, analysis and dissemination of relevant information;

(b)strengthening the OCT's management and control of their energy resources in line with their development objectives in order to enable them to appraise energy demand and supply options and to achieve strategic energy planning, inter alia, by supporting energy programming and providing technical assistance for departments responsible for the planning and execution of energy policies;

(c)analysing the energy implications of development projects and programming, taking account of the energy savings required and of opportunities for primary source substitution; in this context, operations shall be designed to increase the role played by new and renewable resources, particularly in rural areas, through programmes and projects tailored to local needs and resources;

(d)implementing suitable programmes involving small and medium-sized energy development projects;

(e)enhancing investment potential for the exploration and development of local and regional energy sources and also the development of sites of exceptional energy production permitting the establishment of energy-intensive industry;

(f)promoting research, adaptation and dissemination of appropriate technology as well as the training needed to meet energy-related manpower needs in the energy sector;

(g)stepping up the OCT's research and development activities, particularly as regards the development of new and renewable sources of energy;

(h)upgrading the basic infrastructure necessary for the production, transmission and distribution of energy with particular emphasis on rural electrification;

(i)encouraging cooperation among OCT and between the OCT and ACP States in the energy sector, notably cooperation between the OCT, ACP States and other neighbouring States receiving Community aid.

Article 60

The objectives referred to above may be pursued with the financial and technical assistance of the Community to help with the exploitation of the OCT's energy potential in accordance with the procedures laid down for each of the instruments at the Community's disposal and according to the provisions of this Decision.

In the sphere of research and investment preparatory to the launching of energy projects, the Community may give assistance in the form of risk capital, possibly in conjunction with contributions of capital from the Member States and the OCT concerned and other sources of financing, in accordance with the procedures laid down in Article 156.

The resources referred to in these provisions may be supplemented, for projects of mutual interest, by:

(a) other Community financial and technical resources;

(b)action aimed at the mobilization of public and private capital, including cofinancing.

Article 61

The Bank may, in accordance with its Statute, commit its own resources on a case-by-case basis beyond the amount fixed in Article 154 for energy investment projects recognized by the relevant authorities of the country or territory concerned and by the Community as being of mutual interest.

TITLE VIII

ENTERPRISE DEVELOPMENT

Article 62

1. The Community stresses that:

(i) enterprises constitute one of the main instruments for achieving the objectives of strengthening the economic fabric, encouraging inter-sectoral integration and increasing employment, incomes and the level of skills;

(ii)present efforts by the relevant authorities of the OCT to restructure their economies should be complemented by efforts to strengthen and enlarge their productive base. The enterprise sector should play an important part in the OCT's strategies to revive growth;

(iii)a stable and propitious environment should be created together with an effective national and local financial sector with a view to reinvigorating the enterprise sector in the OCT and to encouraging European investment;

(iv)the private sector needs to be made more dynamic and play a greater role, in particular through small and medium-sized enterprises, which are better suited to conditions prevailing in the OCT economies. Micro-firms and crafts should equally be encouraged and supported;

(v)private foreign investors complying with the objectives and priorities of the association should be encouraged to participate in the development efforts of the OCT. Fair and equitable treatment should be accorded to such investment as well as a propitious, secure and predictable investment climate;

(vi)the fostering of entrepreneurship in the OCT is crucial for unlocking the OCT's considerable potential.

2. Efforts should be made to channel an increased proportion of the Decision's financial resources available under the Decision towards the encouragement of entrepreneurship and investment and to directly productive activities.

Article 63

In pursuit of the abovementioned objectives, the full range of instruments provided for by this Decision, including technical assistance, should be deployed in the following areas with a view to sustaining private-sector development:

(a) support for the improvement of the legal and fiscal framework for business, and development of a greater role for professional organizations and chambers of commerce in the process of enterprise development;

(b)direct assistance for the creation and the development of business (specialized business start-up services; assistance for the redeployment of ex-public sector employees; assistance for technology transfers and development; management services and market research);

(c)the development of services in support of the business sector so as to provide enterprises with advisory services in the legal, technical and managerial fields;

(d)specific programmes for training and developing the capacity of individual entrepreneurs, particularly in the small-scale and informal sectors.

Article 64

In order to support the development of savings and local financial sectors, the following areas of action merit special attention:

(a) assistance for the mobilization of local savings and the development of financial intermediaries;

(b)technical assistance for the restructuring and reform of financial institutions.

Article 65

With a view to assisting enterprise development in the OCT, the Community shall provide technical and financial assistance, subject to the conditions laid down in Title III of Part Three.

TITLE IX

DEVELOPMENT OF SERVICES

Chapter 1

Objectives and principles of cooperation

Article 66

1. Services are important for the formulation of development policies, and cooperation in this sphere needs to be stepped up.

2. The Community shall support the efforts of the relevant authorities of the OCT to increase their domestic capacity to provide services with a view to improving the working of their economies, relieving balance-of-payment constraints and stimulating the process of regional integration.

3. The object is to ensure that the OCT derive maximum benefit from the provisions of this Decision, at local and regional level, and to enable them to:

- participate under the most favourable conditions in Community, local, regional and international markets by diversifying the range and increasing the value and volume of OCT trade in goods and services,

-increase their collective capacity by means of greater economic integration and consolidation of functional cooperation or cooperation on specific themes,

-stimulate enterprise development, notably by encouraging EEC-OCT investment in services, with a view to creating employment, generating and distributing revenue and facilitating the transfer and adaptation of technology to specific OCT needs,

-derive maximum benefit from local or regional tourism and improve their participation in world tourism,

-set up the transport and communications networks and informatics and telematics systems needed for their development,

-step up vocational training activities and transfer know-how in view of the determining role of human resources in the development of services.

4. In pursuit of these aims, recourse shall be had, in addition to the specific provisions on services, to those on trade, trade promotion, industrial development, investment and education and training.

Article 67

1. In view of the wide range of services and their unequal contribution to development, and with a view to maximizing the impact of Community aid on the development of OCT, particular attention shall be paid to services necessary for their economies in the following areas:

- services that support economic development,

-tourism,

-transport, communications and information technology.

2. In order to implement cooperation in services, the Community shall help carry out programmes, projects and operations submitted to it on the initiative, or with the agreement, of the relevant authorities of the OCT. To this end, it shall use all the means provided for in this Decision, notably those at its disposal under development finance cooperation, including those which are the responsibility of the Bank.

Article 68

In the field of the development of services, particular attention shall be given to the specific needs and economic situations of the least-developed OCT.

Chapter 2

Services that support economic development

Article 69

In pursuit of cooperation objectives in this sector, cooperation shall concern marketed services, without, however, this leading to neglect of certain parastatal services required to improve the economic environment, such as customs computerization, by giving priority to the following services:

- services that support foreign trade,

-services required by the business sector,

-services that support regional integration.

Article 70

To help restore the OCT's external competitiveness, cooperation in the field of services shall give priority to services that support external trade, the scope of which is as follows:

(i) the creation of appropriate infrastructure for trade, in particular through operations to improve external trade statistics, automation of customs procedures, port and airport management and the establishment of closer links between the various protagonists in trade, including exporters, trade financing bodies, customs and central banks;

(ii)the promotion of specifically trade-oriented services such as trade promotion measures that are also applicable to services;

(iii)the development of other external trade-linked services such as trade financing and clearing and payment facilities, and access to information networks.

Article 71

To foster a strengthening of the economic fabric of the OCT, taking account of the provisions on enterprise development, particular attention shall be paid to the following areas:

(i)business advisory services to improve the running of undertakings, notably by facilitating access to services in the fields of management, accountancy, information technology, legal advice, tax consultancy and finance;

(ii)the setting-up of adequate, appropriate and flexible business financing facilities to stimulate the growth or setting-up of undertakings in the field of services;

(iii)strengthening the OCT's capacity in financial services and technical assistance for developing insurance and credit institutions in the field of trade development and promotion.

Article 72

To underpin economic integration designed to create viable economies, and in view of the provisions on regional cooperation, particular attention shall be given to the following areas:

(i)services to support trade in goods between OCT and between OCT and ACP States through trade measures such as market studies;

(ii)services required for the expansion of trade in services between OCT, and between OCT and ACP States, with a view to enhancing their complementarity, notably by extending traditional trade promotion measures, adapted where necessary to the services sector;

(iii)the creation of regional centres of services aimed at supporting specific economic sectors or jointly implemented sectoral policies, notably through the development of modern communications and information networks and computerized data banks.

Chapter 3

Tourism

Article 73

In view of the real importance of the tourist industry for the OCT, measures and operations to develop and support tourism shall be implemented. These measures shall be implemented at all levels, from the identification of the tourist product to the marketing and promotion stage.

The aim shall be to support the efforts of the relevant authorities of the OCT to derive maximum benefit from local, regional and international tourism in view of tourism's impact on economic development and to stimulate private financial flows from the Community and other sources into the development of tourism in the OCT. Particular attention shall be given to the need to integrate tourism into the social, cultural and economic life of the people.

Article 74

Specific tourism development measures shall be aimed at the definition, adaptation and development of appropriate policies at local, regional, subregional and international levels. Tourism development programmes and projects shall be based on these policies on the basis of the following four components:

(a) human resources and institutional development, inter alia:

- professional management development in specific skills and continuous training at appropriate levels in the private and public sectors to ensure adequate planning and development,

-establishment and strengthening of tourism promotion centres,

-education and training for specific segments of the population and public/private organizations active in the tourism sector, including personnel involved in sectors that support tourism,

-intra-OCT and OCT-ACP cooperation and exchanges in the fields of training, technical assistance and the development of institutions;

(b)product development, inter alia:

-identification of the tourism product, development of non-traditional and new tourism products, adaptation of existing products including the preservation and development of cultural heritage, ecological and environmental aspects, management, protection and conservation of flora and fauna, historical, social and other natural assets, development of ancillary services,

-promotion of private investment in the OCT's tourist industries, including the creation of joint ventures,

-provision of technical assistance for the hotel industry,

-production of crafts of a cultural nature for the tourist market;

(c)market development, inter alia:

-assistance for the definition and execution of objectives and market development plans at local, subregional, regional and international levels,

-provision of support for OCT's efforts to gain access to services for the tourist industry such as central reservation systems and air traffic control and security systems,

-provision of marketing and promotional measures and materials in the framework of integrated market development plans and programmes and with a view to improved market penetration, aimed at the main generators of tourism flows in traditional and non-traditional markets as well as specific activities such as participation at specialized trade events, such as fairs, production of quality literature, films and marketing aids;

(d)research and information, inter alia:

-improving tourism information and collecting, analysing, disseminating and utilizing statistical data,

-assessment of the socio-economic impact of tourism on the economies of the OCT with particular emphasis on the development of linkages to other sectors in the OCT and the surrounding regions, such as food production, construction, technology and management.

Chapter 4

Transport, communications and informatics

Article 75

1. Cooperation in the area of transport shall be aimed at the development of road transport, railways, port installations and shipping, transport by domestic waterways and air transport.

2. Cooperation in the area of communications shall be aimed at the development of postal services and telecommunications, including radiocommunications and informatics.

3. Cooperation in these areas shall be directed particularly towards the following objectives:

(a) the creation of conditions fostering the movement of goods, services and persons at local, regional and international level;

(b)the provision, rehabilitation, maintenance and efficient operation of cost-effective systems serving the requirements of social and economic development and adjusted to the needs of users and to the overall economic situation of the OCT concerned;

(c)greater complementarity of transport and communications systems at local, regional and international level;

(d)the harmonization of the local systems installed in the OCT, while facilitating their adjustment to technological progress;

(e)the reduction of barriers to cross-border transport and communications, in terms of legislation, regulations and administrative procedures.

Article 76

1. In all cooperation projects and programmes in the fields concerned, efforts shall be made to ensure an appropriate transfer of technology and know-how.

2. Particular attention shall be given to training OCT nationals in the planning, management, maintenance and operation of transport and communications systems.

Article 77

1. Air transport is important in forging closer economic, cultural and social links among the OCT, between them and the ACP States and also between them and the Community, in improving the communications of isolated or not easily accessible regions and in developing tourism.

2. The objective of cooperation in this field shall be to promote the harmonious development of local and regional OCT air transport networks and the modernization of local fleets of aircraft in line with technical progress, the implementation of the international Civil Aviation Organization air navigation plan, the improvement of reception infrastructure and the application of international operating standards, the development and improvement of aircraft maintenance centres, the provision of training and the development of modern airport security systems.

Article 78

1. Shipping services are one of the forces behind economic development and promotion of trade between the OCT and the Community.

2. The objective of cooperation in this field shall be to ensure harmonious development of efficient and reliable shipping services on economically satisfactory terms by facilitating the active participation of all parties according to the principle of unrestricted access to the trade on a commercial basis.

Article 79

In the framework of financial and technical assistance for shipping, special attention shall be given to:

- effective development of efficient and reliable shipping services in the OCT, notably the gearing of port infrastructure to meet traffic requirements and the maintenance of port equipment,

-maintenance or acquisition of handling equipment and watercraft and their modernization in line with technical progress,

-development of inter-regional shipping with a view to encouraging intra-OCT and OCT-ACP cooperation and improvements in the functioning of the OCT's shipping,

-technology transfer including multimodal transport and containerization for the promotion of joint ventures,

-setting-up of appropriate legislative and administrative infrastructure and the improvement of port management, notably through vocational training,

-development of inter-island shipping services and connecting infrastructure and increased cooperation with economic operators.

Article 80

Particular importance shall be attached to the promotion of shipping safety and the security of crews, and to the prevention of pollution.

Article 81

1. In the field of cooperation on communications, particular attention shall be paid to technological development in supporting the OCT's efforts to establish and develop effective systems. This includes studies and programmes concerning satellite communication, where this is justified by operational considerations, in particular at regional and subregional level. Cooperation shall also cover means of observation of the Earth by satellite for meteorology and remote sensing purposes, notably their use in connection with all forms of pollution, the management of natural resources, agriculture and mining in particular, and land use planning.

2. Particular importance shall be attached to telecommunications in rural areas, in order to stimulate their economic and social development.

Article 82

The aim of cooperation in the field of information technology shall be the building-up of the OCT's information technology and telematics capacity by offering OCTs which wish to give high priority to this sector support for their efforts to acquire and install information technology systems; the development of efficient telematic networks, including international financial information; the production, in time, of computer components and software in the OCT; their participation in international activities in the field of data processing and the publication of books and reviews.

Article 83

Cooperation activities in the transport and communications fields shall be carried out in accordance with the provisions and procedures laid down in Title III of Part Three.

TITLE X

TRADE DEVELOPMENT

Article 84

With a view to attaining the objectives set out in Article 100, the Community shall implement measures for the development of trade at all stages up to final distribution of the product.

The object is to ensure that the OCT derive the maximum benefit from the provisions of this Decision in the fields of trade, agricultural and industrial cooperation and may participate under the most favourable conditions in Community, domestic, subregional, regional and international markets by diversifying the range and increasing the value and the volume of the OCT's trade in goods and services.

Article 85

1. In promoting the development of trade and services, in addition to development of trade between the OCT and the Community, particular attention shall be given to operations designed to increase the OCT's self-reliance, to developing intra-OCT, OCT-ACP and international trade and to improving regional cooperation in trade and services.

2. Operations shall be undertaken at the request of the relevant authorities of the OCT, particularly in the following areas:

- the establishment of coherent trade strategies,

-development of human resources and professional skills in the field of trade and services,

-the establishment, adaptation and strengthening of organizations in the OCT dealing with the development of trade and services, particular attention being paid to the special needs of organizations in the least-developed OCT,

-support for the OCT's efforts to develop and improve the quality of their products, adapt them to market requirements and diversify their outlets,

-market development measures, including increasing contacts and exchange of information between economic operators in the OCT, the Member States of the Community and third countries,

-support for the OCT in the application of modern marketing techniques in production-oriented sectors and programmes in areas such as rural development and agriculture,

-support for the OCT's efforts to develop and improve support service infrastructure, including transport and storage facilities, in order to ensure effective distribution of goods and services and enhance the flow of exports from the OCT,

-support for the OCT in developing their internal capacities, information systems and awareness of the role and importance of trade in economic development,

-support for small and medium-sized enterprises in identifying and developing products, market outlets and joint marketing ventures.

3. With a view to expediting procedures, financing decisions may deal with multiannual programmes in accordance with the provisions of Article 196 on implementation procedures.

4. Support for the OCT's participation in trade fairs, exhibitions and trade missions should be provided only where such events form an integral part of overall trade development programmes.

5. Participation of the least-developed OCT in various trade activities shall be encouraged by special provisions, inter alia, the payment of travel expenses of personnel and costs of transporting exhibits on the occasion of their participation in local, regional and third-country fairs, exhibitions or trade missions, including the cost of the temporary construction and/or renting of exhibition booths and stalls. Special assistance shall be provided to the least-developed OCT for the preparation and/or purchase of promotional material.

Article 86

Within the framework of the instruments provided for in this Decision and in accordance with the provisions for development finance cooperation, assistance for the development of trade and services shall include technical assistance for the establishment and development of insurance and credit institutions in connection with trade development.

Article 87

In addition to the appropriations which, within the framework of the indicative programmes referred to in Article 187, may be allocated by each country or territory to the financing of operations to develop the fields referred to in Titles IX and X of Part Two, the contribution of the Community to the financing of such operations, where they are of a regional nature, may amount, within the framework of the regional cooperation programmes referred to in Article 90, to the amount provided for in Article 154 of this Decision.

TITLE XI

CULTURAL AND SOCIAL COOPERATION

Article 88

Cooperation shall contribute to the self-reliant development of the OCT, a process centred on man himself and rooted in each people's culture. The human and cultural dimension must embrace all areas and be reflected in all development projects and programmes. Cooperation shall back up the policies and measures adopted by the relevant authorities of the OCT to enhance their human resources, increase their own creative capacities and promote their cultural identities. It shall foster participation by the population in the process of development.

In particular such cooperation shall be carried out by:

- taking into account the cultural and social dimension,

-promoting cultural identities and inter-cultural dialogue, notably in connection with the safeguarding of the cultural heritage, the production and dissemination of cultural products, cultural events, and information and communications,

-implementing operations to enhance human resources, particularly with regard to education and training, scientific and technical cooperation, the role of women in development, health and nutrition, and population and demography.

Article 89

Cultural and social cooperation operations shall be carried out in accordance with the procedures laid down in Title III of Part Three.

TITLE XII

REGIONAL COOPERATION

Article 90

1. The Community shall support the efforts of the relevant authorities for the OCT through regional cooperation and integration to promote long-term collective and self-reliant, self-sustained and integrated social, cultural and economic development and greater regional self-sufficiency.

In so doing, it shall take account of the particular legal systems of the OCT concerned.

2. Community support shall be given within the framework of the major regional cooperation and integration objectives which the OCT have set or will set for themselves at regional, inter-regional and international level.

3. In order to promote and strengthen the OCT's collective capabilities, the Community shall provide effective aid enabling them to strengthen regional economic integration and consolidate the cooperation of a functional type or on specific themes referred to in Articles 92 and 93.

4. While taking account of local circumstances, regional cooperation shall transcend the concepts of geographical location. It shall also cover intra-OCT regional cooperation.

It shall include regional cooperation between OCT, ACP States and overseas departments, in accordance with Article 98. The funding to cover the participation of ACP States and the overseas departments shall be additional to funds allocated to the OCT under the Decision.

Article 91

1. Regional cooperation shall cover operations agreed on between:

- two or more or all OCT,

-one or more of the OCT and one or more neighbouring countries, ACP or non-ACP,

-one or more of the OCT and one or more ACP States or overseas departments,

-two or more regional bodies of which OCT are members,

-one or more of the OCT and regional bodies of which OCT, ACP States or overseas departments are members.

2. Regional cooperation may also cover projects and programmes agreed upon by two or more OCT and one or more neighbouring developing States, ACP or non-ACP, and, when special circumstances so warrant, between one country or territory and one or more non-neighbouring developing States, ACP or non-ACP.

Article 92

1. In the context of regional cooperation particular attention shall be paid to:

(a) evaluation and utilization of existing and potential dynamic complementarities in all relevant sectors;

(b)maximization of the use of human resources in the OCT as well as the optimum and judicious exploration, conservation, processing and exploitation of OCT natural resources;

(c)promotion of scientific and technical cooperation among the OCT or between OCT and ACP States, including support for intra-OCT and intra-ACP technical assistance programmes as provided for in Article 181 (e) of the Decision;

(d)acceleration of economic diversification in order to stimulate complementarity in production and intensification of cooperation and development within and between OCT regions, and also between the latter, ACP States and overseas departments;

(e)promotion of food security;

(f)strengthening a network of relations between individual countries or territories or between groups of countries or territorities which have common characteristics, affinities and problems in order to solve such problems;

(g)fullest use of economies of scale wherever a regional solution is more efficient than a local solution;

(h)expansion of the OCT's markets by promoting trade among OCT and between the OCT, ACP States and neighbouring third countries or overseas departments;

(i)integration of the OCT's markets by liberalizing intra-OCT and OCT-ACP trade and eliminating tariff, non-tariff, monetary and administrative barriers.

2. Particular stress shall be put on the promotion and strengthening of regional economic integration.

Article 93

Having regard to Article 92, the scope of regional cooperation shall include the following:

(a) agriculture and rural development, notably food self-sufficiency and food security;

(b)health programmes, including education, training, research and information related to primary health care and control of major diseases, including animal diseases;

(c)evaluation, development, exploitation and preservation of fishery and marine resources, including scientific and technical cooperation with a view to the surveillance of exclusive economic zones;

(d)preservation and improvement of the environment, especially through programmes to combat desertification, erosion, deforestation, coastal deterioration, the consequences of large-scale marine pollution, including large accidental discharges of petroleum or other pollutants with a view to ensuring rational and ecologically balanced development;

(e)industrialization, including the setting-up of regional and inter-regional production and marketing enterprises;

(f)exploitation of natural resources, notably the production and distribution of energy;

(g)transport and communications, namely air and sea transport, inland waterways, postal services and telecommunications;

(h)development and expansion of trade;

(i)support for the setting-up or strengthening of regional payment mechanisms including clearing and financing facilities for trade;

(j)assistance to help the OCT combat drug trafficking at regional and inter-regional levels;

(k)assistance for action programmes undertaken by OCT and OCT-ACP and ACP-EEC trade and business organizations with the aim of improving the production and marketing of products on external markets;

(l)education and training, research, science and technology, informatics, management, information and communication, the establishment and strengthening of training and research institutions and technical bodies responsible for technology exchanges and cooperation among universities;

(m)other services, including tourism;

(n)cultural and social cooperation activities, including support for action programmes implemented by OCT at regional level with a view to enhancing the status of women, improving their living conditions, expanding their economic and social role and promoting their full participation in the economic, cultural and social development process.

Article 94

1. Regional organizations duly mandated by the relevant authorities of the OCT or by them and the ACP States concerned must play an important part in the design and implementation of regional programmes.

2. They may take part in the programming exercise and in the implementation and management of regional programmes and projects.

3. Where an operation is financed by the Community through a regional cooperation body, the financing terms applicable to the final beneficiaries shall be agreed between the Community and that body in agreement with the country or territory or countries or territories and, where relevant, the ACP State or States concerned.

Article 95

A regional operation is one which helps directly to solve a development problem common to two or more countries or territories through joint schemes or coordinated schemes and which meets at least one of the following criteria:

(a) because of its nature or physical characteristics, it necessarily extends beyond the frontiers of a country or territory and cannot be carried out by a single country or territory nor be divided up into local operations to be undertaken by each country or territory on its own account;

(b)the regional formula makes it possible to achieve significant economies of scale in relation to local and national operations;

(c)the operation is the regional or inter-regional expression of a sectoral or a global strategy;

(d)the accompanying costs and benefits are unequally shared out among the beneficiary countries, territories and States.

Article 96

The Community's contribution under regional cooperation shall, in respect of operations which could be undertaken partly at local level, be determined on the basis of the following factors:

(a) the operation strengthens cooperation between the OCT and, where relevant, the ACP States concerned at the level of their authorities, institutions or enterprises, or through regional bodies or by removing obstacles, whether financial or in the form of regulations;

(b)two or more OCT and, where relevant, ACP States have entered into mutual commitments in respect of an operation, notably as regards the distribution of facilities, investment and the running thereof.

Article 97

1. The requests for financing from funds earmarked for regional cooperation shall be governed by the following general procedures:

(a) requests for financing shall be presented by each of the OCT participating in a regional operation;

(b)wherever an operation of regional cooperation is such as to be of interest to other OCT or ACP States, the Commission shall, in agreement with the authorities making the application, inform them or, if need be, all the OCT or ACP States. The OCT interested shall then confirm whether they intend to participate.

Notwithstanding this procedure, the Commission shall examine without delay any request for financing as long as it has been presented by at least two OCT or at least one OCT and one ACP State. The financing decision shall be taken after the authorities consulted have communicated their intention;

(c)where a single country or territory is associated with ACP States or non-ACP countries, as provided for in Article 94, its request alone shall suffice;

(d)regional cooperation bodies may present requests for the financing of one or more specific regional cooperation schemes on behalf of their OCT members, and with their explicit agreement;

(e)each request for regional cooperation funding must include, where necessary, proposals concerning:

(i) the ownership of the goods and services to be financed as part of the operation, and the division of responsibilities for operation and maintenance;

(ii)the choice of the regional authorizing officer and relevant authorities of the country or territory, State or body authorized to sign the financing agreement on behalf of all the participating OCT and, where relevant, ACP States and participating bodies.

2. The indicative programme for each region may lay down appropriate arrangements for the submission of requests.

3. The country or territory, countries or territories, ACP State or States or regional bodies participating in a regional operation with third countries as provided for in Article 94 may request the Community to finance that part of the operation for which they are responsible or a part in proportion to the benefits they derive from the operation.

Article 98

1. In order to improve regional cooperation, encouragement shall be given for consultations between the relevant authorities of different States, notably ACP States, OCT and the overseas departments of the geographical area in question, in liaison with the authorities of the Member States responsible for the OCT and overseas departments.

2. Regional cooperation in the field of trade may take the form of regional trade agreements, in accordance with the Treaty and the Convention.

3. In administering the European Development Fund and the Structural Funds, and in accordance with the rules on eligibility for the respective Funds, the Commission will ensure that the OCT (EDF), overseas departments (Structural Funds) and ACP States (EDF) may receive financing from Community funds for regional projects or programmes carried out jointly by OCT, overseas departments and ACP States within the same geographical area subject to the following:

- the joint regional project or programme must comply with the provisions on objectives, scope and rules of procedure laid down in the relevant Articles of the Convention and of this Decision,

-the rules of procedure for financing projects and programmes shall be those governing the Community fund in question.

The Commission shall assume responsibility for coordination in the period between the financing and the implementation of the project or programme.

Article 99

For the purposes set out in this Title, the amount of the Community's financial assistance is provided for in Article 154 of this Decision.

PART THREE

THE INSTRUMENTS OF EEC-OCT COOPERATION

TITLE I

TRADE COOPERATION

Chapter 1

General trade arrangements

Article 100

1. In the field of trade cooperation, the object of this Decision is to promote trade between the OCT and the Community, taking account of their respective levels of development, and also between the OCT themselves.

2. In the pursuit of this objective, particular regard shall be had to securing effective additional advantages for the OCT's trade with the Community and to improving the conditions of access for their products to the market in order to accelerate the growth of their trade and, in particular, of the flow of their exports to the Community and to ensure a better balance in trade between the parties concerned.

3. To this end, the parties concerned shall apply the provisions of this Title and the other appropriate measures under Title III of this Part and under Part Two of this Decision.

Article 101

1. Products originating in the OCT shall be imported into the Community free of customs duties and charges having equivalent effect.

2. Products not originating in the OCT but which are in free circulation in an OCT and are re-exported as such to the Community shall be accepted for import into the Community free of customs duties and taxes having equivalent effect providing that they:

- have paid, in the OCT concerned, customs duties or taxes having equivalent effect of a level equal to, or higher than, the customs duties applicable in the Community on import of these same products originating in third countries eligible for the most-favoured-nation clause,

-have not been the subject of an exemption from, or a refund of, in whole or in part, customs duties or taxes having equivalent effect,

-are accompanied by an export certificate.

3. The provisions of paragraph 2 shall not apply to:

-agricultural products listed in Annex II to the Treaty nor to products falling within Council Regulation (EEC) No 3033/80 of 11 November 1980 laying down the trade arrangements applicable to certain goods resulting from the processing of agricultural products (1), as last amended by Regulation (EEC) No 1436/90 (2),

-products subject, on import into the Community, to quantitative restrictions or limitations,

-products subject, on import into the Community, to anti-dumping duties.

4. To the extent that the provisions of paragraph 1 lead to tariff arrangements which are more favourable to products originating in the OCT than the arrangements resulting from Regulation (EEC) No 715/90 (3), the abolition of customs duties shall take place gradually over the same periods and at the same rate as those provided for by the Act of Accession of Spain and Portugal, for the same products as imported from these States into the Community as constituted on 31 December 1985.

During this gradual reduction, and when the customs duties applied to imports into the Community, as constituted on 31 December 1985, of products from Spain and Portugal differ for the two countries, the higher of the two customs duties shall be applied to products originating in the OCT. Dismantling shall begin as soon as the duties a