ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(76)621
Vol.1976/0189

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COMMISSION OFTHEEUROPEAN COMMUNITIES
ι
COM(76)621final.
Brussels,15November1976.
COMMISSION COMMUNICATION TOTHECOUNCIL
THIRDANDFOURTHEUROPEAN DEVELOPMENT FOOTS
1977
ESTIMATE OFCOMMITMENTS ANDDISBURSEMENTS
SCHEDULE OFCONTRIBUTIONS TOBECALLEDFOR.
CONTRIBUTION 'SSITUATION
COK(76)621final.

UnderArticle3,asregardsthethirdEDF,andArticle7»asregardsthe
fourthEDF,oftheInternalAgreementonthefinancingandadministration
ofCommunityaidtheCommission mustdrawupandtransmittotheCouncil
eachyearestimatesofEDFcommitmentstobeenteredintoduringthe
followingbudgetyearand,onthisbasis,preparethescheduleof
contributions tobecalledfor,takingintoaccounttheEDF'acash
requirements .
Accordingly ,thepurposeofthisCommunication istoassesstheEDF's
cashrequirements for1977*
ThetablesannexedtothisCommunication give:
(a)anestimateofcommitmentsin1977underthefourEDFsinoperation;
(b)anestimateoftotaldisbursements for1977?
(c)henco,thescheduleoftheMemberStates*contributions tothe
thirdandfourthEDFstobecalledforin1977?
(d)thecontributions situationat31December1977*
Thepurposeofthesecontributions istoreconstitute theEDF'scash
resourcesinordertoenableittomakedisbursements ;itisestimated
thatin1977about140millionEUAwillbeneededforthefirstthree
EDFs(payablebythesixMemberStatessignatorytotheYaoundeConventions)
andabout270millionEUAforthefourthEDF(payablebythenineMember
StatessignatorytotheLomeConvention).
Inaccordance withArticle2ofthe
thateachofthesecontributions be
thefirstpayablebefore20JanuaryFinancialRegulation,itisproposed
calledforintwoequalinstalments ,
1977andthesecondon1July1977*
Provisionoloddress:RuedelaLoi200,B-1040Brussels-Téléphoné350040-358040-Télégraphieoddress:«COMEURBrussels»-
Tek*:«COMEURBRU 21877>

ThisCommunication netsoutbelowthedetailedgroundsforthiBrequest
anddealBinturnwithi
I.thereoorxstitution oftheEDP'Bcashresources
II.theestimatedexpenditurefor1976
III.theestimatedexpenditurefor1977*
I.RrenrwSTITUTION OFCASHRESOURCES
ThetablebelowshowshowEDFexpenditurehasdevelopedfromyeartoyear
(inmillionsofEUA):
Year
i960
1961
1962
1963
1964
1965
1966
1567
1968
1969
1970
1971
1972
1973
1974
1975
1976
31August
TotalsFirstEDF
amount
4
16
53
65
83
85
76
62
40
26
15
II
10
10
5
2
3
566
NBSecondEDF
*
0.7
3.4
12.6
23.7
38.0
52.6
65.7
76.4
83.3
87:6
90.1
92,0
92.6
94.3
96.0
96.8
97.2amount
22
36
43
70
90
131
123
67
50
26
23
688amount
3.0
7.9
13,8
23.4
35.8
53.7
70.5
79.7
86.5
90.1
93.2
94.2ThirdEDF
25
41
98
141
183
57
545°°
2.8
7.3
18,2
33-8
54.2
60.0FourthEDF
amount
40
401.3Totalper
rearAggregate
total
4 4
16 20
53 73
65138
83•221
107 I328
112 440
105 545
110 655
116 771
146 917
159I076
118I.ISM
158I352
172I524
2081-732
1071-939
I839
Thepercentagehavebeencalculatedonthefoasis^oftheaggregate
annualamounts
Tothisamountof
shouldbeadded(a)expenditureintheprocessofbeingenteredintheaccountsequivalentto 39
(b)advancesmadetotheEAC,equivalentto21
TotalexpenditureunderthefourEDFsat31August1976amounts1.899
to1.839
39
21

-3-
This table shows that expenditure under thefirst twoEDFs increased
fairly steadily andpassed the50$mark attheendofthesixth year .
However ,there wasafaster rate ofdisbursements under thesecond EDP ,
which meant that the94$mark wasreached after eleven andahalf years ,
whereas inthecase ofthefirst EDFthis mark wasnotreached until
the fourteenth year .
Therate ofdisbursements waseven faster under thethird EDF .Over
54ioofthetotal amount ofthis Fund wasexpended inonly five yearB ,
with theresult that expenditure hasbegun totail offinthesixth
year (i.e. 1976)*
Detailed analysis oftheoperations provided forbytheACP-EEC Convention
ofLome suggests that expenditure under thefourth EDFcould continue
atasimilarly steady rate ,notwithstanding thedifficulties that certain
States might experience ingetting used toEDFprocedures .
Certain types ofexpenditure will beeffected more rapidly than the
traditional financing ofprojects sasforexample ,theexport earnings
stabilization system (Stabex )andtheexceptional aid ,forwhich inthe
first year ofoperation oftheLome Convention ,46„740®000 EUAhave been
committed with theprospect ofdisbursements "being made very rapidly . .
Consequently ,aswill beshown more clearly bythefollowing detailed
analysis ,total expenditure in1977under theFunds inoperation could
amount toaround 410million EUA .

_4-
Thatablebelowshowstheprobabletrendofresourcesandexpenditure
uptotheendof1977•
(millionEUA)
ResourcesExpenditure
Cashavailableat30September1976
Contributionsforthesecondsixmonthsof
1976,duebutnotyetpaid
Contributionsforthesecondsixmonthsof
1976(secondinstalmentforthefourthEDF,reducedasproposedbelow)142
84
-11
267
ExpenditurescheduledforthelastfourmonthB
of1976s
firstEDF
secondEDF
thirdEDF
fourthEDF2
5
50
24151
Cashavailableat31December197©
Contributions whichitisproposedtocall
forin1977
thirdEDF
fourthEDF140
270116
410
526
Expenditurescheduledfor1977
Cashavailableat31December1977116410
Onlyifthegreatestcareistakenwillthisbalancebesufficientto
fundtheaccouniaopenedinthevariousACPStates.
DuringthenegotiationoftheLomeConventiontheACPrepr®s®n**^®SstatedthattheywantedaccountsfoundedinthecurrencyofaMember
Statetobeopenedwiththeoentralbanksoranyothernationalpublicorsemi–publicfinancialinstitution(ProtocolNo2fArticle3^(3/*

Pursuant tothis provision theCommission must keep approximately
50accounts infunds intheACPStates .These accounts ,which arein
addition tothose opened inEurope ,aretobeused tocover disbursements
inthefirst twomonths oftheyear# Experience hasshown that although
contributions arenormally dueon20January they arepaid bythe
Member States over aperiod ofseveral weeks after that date .The
average balance peraccount will bearound 2million EUA ,anamount
which could turn outtobeinadequate inmany cases ,particularly ifa
Stabex instalment hadtobepaid atthat time oftheyear .
II.ESTIMATED EXPENDITURE FOR 1976
Expenditure under thefirst EDF inthefirst eight months amounted to
around 3million EUA ;for the last four months itshould bearound
2million EUA ,making atotal of5million EUAforthewhole year .
Expenditure under the second EDF amounted to7million EUA atthe end
ofAugust ;forthe last four months itshould come toaround
5million EUA .,making atotal of12million EUAforthewhole year .
Asregards thethird EDF ,account should betaken of:
(i)expenditure inthefirst eight months ,which amounts to57million EUA
(ii)tothis must beadded expenditure intheprocess ofbeing entered
intheaccounts ,equivalent to39million EUA ;
(iii)also ,asubstantial proportion oftheexpenditure incurred bythe
EA.C in1975 hasbeen entered intheEDFaccounts ,orwill beat
the endofOctober .Theamount involved maybeestimated at
around 8million EUA .
Thus definite expenditure under thethird EDF cannow beput at
(57+39+8)=104million EUA.Bytheendoftheyear this figure
should beincreased byaround 50million EUA .
Onthebasis oftheforegoing ,expenditure under thefirst three EDFs
in1976 would thus amount to:
5000000EUA
12000 000 EUA
154 000 000 EUA
171000 000 EUA1stEDF
2nd EDF
3rdEDF
TOTAL

-6-
Expenditure under "thefourth EDF ,which came into operation on1April 197° ,
isalready very high tycomparison with expenditure under theother
EDFs after the first six months .
Expenditure uptoendSeptember breaks down asfollows :
Stabex ,1975 instalment 55million
exceptional aid 2million
advances tothe EAC for the installation and
running costs oftheCommission delegations 20million
Total expenditure at30September 1976 77million
Expenditure scheduled forthelast three months :
Stabex ,1975 17million
exceptional aid « 10million
scholarship holders /trainees 5million
other measures 15million
interest rate subsidies 10million
Approximate expenditure in1976 134million
Thedisbursements ofadvance ,fundB_f or.thefirst Stabex instalment for
1976 ,which were originally scheduled forthesecond half oftheyear ,
would have added about 40million EUAtothis estimate of134million EUA .
This procedure being nolonger foreseen inthefuture fortiming reasons ,^
thesecond instalment ofthecontributions tothefourth EDFfor1976 ,
^which wasfixed at80million EUA ,canbereduced to41million EUAtobe .
"'called foron1November .
{inaccordance with thewishes expressed bytheMember
States inthe discussions onthe fourth EDF contributions tobecalled for
inJuly 1976 ,aproposal isconsequently annexed hereto foradraft Council
Decision reducing by39million EUAthecontributions fixed bytheDecision
"of7'Juli 1976 .
III .ESTIMATED EXPENDITURE IN1977
First EDF–Expenditure under this Fund (which hasvirtually runoutof
resouroes )should notexceed 3000000EUA .

-7-
Second.EPF-Firmcommitments amounttoabout706millionEUA.
Sinceexpenditure comesto 687millionEUA
theamountoutstandingisthereforeabout 19millionEUA.
Consequently ,expenditurein1977couldcome
toaround 15millionEUA.
ThirdEPF–Firmcommitments amountto
Sinceexpenditure comestoonly
theamountoutstandingisabout724millionEUA»
558millionEUA
166millionEUA.
Expenditure in1977couldthusbereasonablyestimatedatbetween
120and125millionEUA.
Totalexpenditure underthefirstthreeEDFsshouldthereforeamount
toaround140millionEUA.
FourthEPF–AtthebeginningofOctober197°'theCommissiontook
commitmentdecisionsinvolvinganaggregate
amountof 278millionEUA
includingslightlymorethan46millionEUA
forexceptionalaid,towhichshouldbeadded
forStabex 72millionEUA.
TakingaccountoftheprojectsscheduledtobesubmittedtotheEDF
Committeeby31December,totalcommitmentsin1976underthefourthEDF
willamounttoaround 400millionEUA.
Invitationstotenderinvolvingsubstantial amountshavebeenorwill
shortlybeissuedforatotalof
approximately 150millionEUA.
Oncethecontractsareconcluded,startingadvanceswillhavetobepaid
tothefirms,followedbyadvancesforequipmentandmaterialsand
subsequently byinstalmentsinrespectofworks,equivalentto
approximately iOfoofthetotalamountofthecontracts,
i.e.,about 50millionEUA
OneandahalfStabexinstalments
Balanceofexceptional aidalreadydecided
Expenditure tocovertherunningcostsof
theCommissiondelegations in1977
Interestratesubsidies
Scholarshipholders/trainees
Lastly,allotherexpenditure onstudies
andappraisalsnecessaryforthe
implementation ofoperationstobe
financed
Totalexpenditure underthefourthEDF
in1977shouldamountto112millionEUA
36millionEUA.
22millionEUA
15millionEUA
10millionEUA
roundedupto20millionEUA
265millionEUA
270millionEUA

-8-
■ v •
Annex –Tables
European Development Fund
im
A–Estimate ofcommitments
'000 EUA
Amount
J1stEDF–fully committed
2ndEDF 15000
3rdEDF50000
4thEDF 600 000
B– .Estimate ofdisbursements '000 EUA
EDFFunds avail­
able at
30September
1976Disbursements
scheduled up
to31December
1976Funds avail­
able at
31December
11976Disbursements
scheduled for
1977Balance at_
31December
1977
1st ,2nd
and
3rdEDFI
:129000
28000 1
ι
157-000■57'000 • •100 000 ■140000 • IOC coo
4thEDF
i130002
56000
410003
I
110 000 94000 16000 270 ,000
I16.000
TOTALS
i267000 151 ,000 116 000 410 ,000 116 .0004
1
Balance ofcontributions tothethird EDFdueon1July 1976 butnot
gyet paid .Balance ofcontributions tothefourth EDFdueon1July 1976 butnot
.yetpaid .
Second instalment ofcontributions tothe fourth EDF -due on 1November
.1976 freduced asproposed .
Taking into account thecontributions to "becalled for in1977 both
the third and the fourth EBFa „

-9-
C-Contributions tobecalledfor.in1977
inEUA
l^embor
StatoFor: Dueon: |Total
contributions
i 3rdEDF 4thEDF 20January
1977_1July
JJ212___-_
Belgium 12.446000 16-875'00014,660,50014660,500 29.321.000
Denraark6.480,000 3.240,000 3,240,000 648O.000
Germany 46,438.000 70,,065.0005825150058,251.500116-503000
France 46.13800070.065,000 5825150058.25I500116,503,000
Ire1and I620,000 810000 810,000I,620000
Italy 21.868.000 32,4000002713400027.134joo54.268.000
Luxembourg 364000 540000 452000 452000 904.000
Netherlands 12446000 21,465000169555001695550033.911000
United
Kingdom50.490,000 25-245^000 2524500050,49c.00C
IUM.–HI.MW.IIini–M.11
140000,000 270000,000
r 1205.000000
I205.000000410000000

D–Situation bvMember State ofcontributions called forandto^becmod^iWl™3T'l)cc clribcr "f1J77–
1.Third KDF inEUA
l r~~_ C0MTRIBUTI 0NSMWII ■inn 1HP–
IMember ITotal I~Τ~ ΤPaid or ITobepaid !Paid at Outstandings
State contnbut ions/being paid in1977 !31December 31December
atend 1976 1977 1977
1 2 3 4 5(3+4)6(1-5 )
IBelgium80,444 444.5 8.89 64 ,893 ^888 12446000 77-339 088 3104 556..'
Germany 300158333,5 33.17 242131667 46438000 288569667 II588666 ,]
IFrance 300158333.5 33.17 242131667 46.438 .000 288569667 II588666 .;
Italy 141 ,381 ,111 ,- 15.61 113987 -223 21868 .000 135855 223 5525888 .■
Luxembourg 2413 333 .- 0,27 I96I667 364000 2325667 87 .666 .
Netherlands 80444444.5 8.89 64 ,893'388 12 -446000 77339888
I 111 13104 556,'
i
I ■■1 "
905 ,000000 ,-100.– 730000000 140000000 870000000 35,000 ,000 ,
II III I*II ■
4
2.Fourth EDF luEUA
1 ~τc.o NTRIBUT !0NS
IMember ITotal Paid or |Tobepaid 1Paid at Outstandings
iState Icontributions being paid in1977 31December 31December
atend 1976 1977 1977
1 2 3 4 5(3+4)6(1-5 )
1Belgium 196875000Γ6~25 II312500 16875000 28187500 168 687500
Denmark . 75600000 2,40 4 .344000 6480000 10824000 64776000
Germany 817425000 25.95 46.969.500 70 ,065,000 117034500 700390 ,.500
France 817425000 25.95 46969500 70,065 000 117034 500 700 390500
Ireland I18 ,900.000 0.60 I086 000 I..620 000 2706000 16.194 .000
Italy.378 ,000 -000 12-00 2!720000 32400 .000 54120000 323 .680000
Luxembourg 6300000 0:20 362000 540000 902000 5.398 DOC
Netherlands 250425 000 7.95 14.389 500 21 .465000 35854500 214570500
United I
Kingdom i1589 ,050000 18.70 33,847 000 50490,000 84337000 504713^00
3 ,150 .000oor18!000 000 1270000000 451000000 2.599000OOC
^Taking intoaccount thepayment ofthefirst instalment for197^,fixed at140million EUA
andtheeecond instalment ,originally fixed at80million EUAbutreduced to41million EU .
which isdueon 1November 1976•
4

ANNEX I
COUNCIL DECIb \
laying down theschedule oftheMember s«-
contri"butions tothethird European Dev^u^ent
Fund tobecalled for in1977
THECOUNCIL OFTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Ct^munity .
1Having regard totheActofAccession ,andinparticular Article 114
thereof .
Having regard totheConvention ofAssociation between theEuropean
Economic Community spdtheAfrican States andMadagascar associated
with that Community ,signed on29July 1969 ,
Having regard totheAssociation Agreement providing fortheaccession
ofMauritius totheConvention ofAssociation between theEuropean
Economic Community andtheAfrican andMalagasy States associated with
that Community ,
loJNoL73,27.3.1972 ,p.14 .
^OJNoL282,28.12.1970 ,p.2.
J0JNoL288,15.10.1973 ,p.2.

-12-
Havingregard"to"theCouncilDecisionof29September1970onthe
AssociationoftheOverseas1CountriesandTerritorieswiththe
EuropeanEconomicCommunity,
Havingregardto?theInternalAgreementonthefinancingandadministrationofCommunityaid,signedon29July1969,andinparticularArticle3(1)
and(2)firstsubparagraphthereof,
HavingregardtotheAgreementamendingtheInternalAgreementonthe
financingandadministration ofCommunityaidsignedatYaoundeon
29July1969,
HavingregardtotheFinancialRegulationoftheEuropeanDevelopment
Fund(1969)establishedbytheInternalAgreementonthefinancingandadministration ofCommunityaid,andinparticularArticle2(l),(2)
and(3)thereof,
HavingregardtotheproposalfromtheCommission,
|lojNoL282,28.12.1970,p.83.
*0JNoL282,28.12.1970,p.47-
^OJNoL288,15-10.1973,p.13»40JNoL31,8.2.1971»P»1*

-13-
Whereasthescheduleofcontributions tohecalledforin1977
communicated bytheCommission,hasbeencheckedagainsttheestimate
ofcommitments andexpenditureforthatyear,
HASDECIDEDASFOLLOWS:
SoleArticle
Thescheduleofcontributions tothethirdEuropeanDevelopment Fund
to"becalledforin1977isasfollows:
–– 1 1 '■1––il +
Contributions tobecalledfor(inEUA)
1
Member !i
i
StateIon15January on1July Totalfor1977
|1977 l1977.(3rdEDF)
Belgium 6223000 6223000 1244&000
Germany 23219000 23219000 46438000
France 23219000 23219000 46438000
Italy 10934000 10934000 21868000
Luxembourg 182000 •.182000.Γ364000
Netherlands 6223.000 6223000 12446000
«
70000000 70000000 140000000
DoneatBrussels. 1976
FortheCouncil
ThePresident

-14-
COUNCIL DECISIONΜΪΓΕΧ 2
reducing the 21111011111 *of "theMeniber States contributions
tothefourth European Development Fund to "becalled for
in1976 _
THECOUNCIL OFTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic
Community ,
Ug^ying regard totheACP™EEC Convention ofLome "between theAfrican ,
Caribbean andPacific States andtheEuropean Economic Community
signed on28February 1975 ,hereinafter called the"Convention ",
Having regard totheCouncil Decision of29June 1976ontheassociation
oftheoverseas countries andterritories with theEuropean Economic
Community ,hereinafter called the"Decision ",
Having regard "to "theCouncil Decision of21April 1975 thedefinition
andconversion oftheEuropean unit ofaccount used forexpressing the ^
amounts ofaidmentioned inArticle 42oftheACP-EEC Convention ofLome ,
10JNoL25,30.1 .1^76 »P-1*
^OJNoL176,1.7.1976 ,p.8.
30JNoL104,24.4.1975 ,p.35 »

-15-
Havingregard,to^heInternalAgreementonthefinancingandadministrationofCommunityaidsignedon11July1975,hereinaftercalledthe
"InternalAgreement",andinparticularArticle7thereof,
HavingregardtotheCouncilDecisionof7July1976layingdownthe
scheduleoftheMemberStates'contributions tothefourthEuropean
Development Fundtobecalledforin1976,
HavingregardtotheproposalfromtheCommission,
Whereasinviewofthereductioninthedisbursements
tobemadeunderthefourthEuropeanDevelopmentFundin1976,theMemberStates1contributions shouldbereducedaccordingly,
10JNoL25,30.1.1976,p.168.

HASDECIDEDASFOLLOWS:
SoleArticle
ThescheduleofcontributionstothefourthEuropeanDevelopmentFund
tobecalledforin1976isasfollows:
Contributions tobecalledfor(inEUfl.)
Member
Stateon26July1976on1November
1976Totalfor1976
(4thEDF)
Belgium87500002562500 11312500
Denmark 336O000984000 !4344000
Germany 3633000010639500 46969500
France 3633000010639500 46969500
Ireland 840000 246000 1086000
Italy168000004920000 21720000
ILuxembourg 280000 82000 362000
Netherlands 111300003259500 14389500
I1
United
Kingdom261800007667000 33847000
14000000041000000 181000000
DoneatBrussels,
FortheCouncil
ThePresident

-17-
ΑΝΝΕΧ3
COUNCILDECISION
layingdownthescheduleoftheMemberStates*
contributions tothefourthEuropeanDevelopment
Fundtobeoalledforin1977
THECOUNCILOPTHEEUROPEAN COMMUNITIES .
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
HavingregardtotheAQP-EECConventionofLome"betweentheAfrican,
CaribbeanandPacificStatesandtheEuropeanEconomicCommunity
signedon28February 1975»hereinaftercalledthe"Convention",
HavingregardtotheCouncilDecisionof29June1976ontheassociation
oftheov|rseascountriesandterritorieswiththeEuropeanEconomic
Community,hereinaftercalledthe"Decision",
HavingregardtotheCouncilDecisionof21April1975onthedefinition
andconversionoftheEuropeanunitofaccountusedforexpressingthe,
amountsofaidmentionedinArticle42oftheACP-EECConventionofLome,
'OJNoL25,30,1.1976,p.1.
mjNoL176,1.7.1976,p.8.J0JNoL104,24.4.1975,p«35»

-18-
Havingregardto.jtheInternalAgreementonthefinancingandadministrationofCommunityaidsignedon11July1975*hereinaftercalledthe
"InternalAgreement",andinparticularArticle7thereof,
Havingregardtothescheduleofcontributions tothefourthEuropean
Development Fundtohecalledforin1977*communicated "bytheCommission
on
Whereasthatschedulehasbeencheckedagainsttheestimateofcommitments
andexpenditurefortheyearinquestion.
*QJNoL25,30.1.1976,p.168

-19-
HASDECIDED ASFOLLOWS :
Sole Article
Theschedule ofcontributions tothefourth European Development Fund
to "becalled forin1977 isasfollows :
I
I Contributions tohecalled for (inEUA)
Member State on15January
1977Ion 1July
1977Total for 1977
(4thEDF ) J
Belgium 8437500 8437500 I6.875000
Denmark 3240 000 3240 000 6.480.000
IGermany 35032.500 35032 500 7O.O65.OOO
France 35032 500 35032 500 70O65000
IIreland 810 000 810 000 1.620 000
Italy16200 000 16200 000 32.400.000
ILuxembourg 270 000 270 000 540.000
Netherlands 10732500 10732 500 21465.OOO
United Kingdom 25245000 25245000 50490.000
135000000 135.000 000 270000000
Done atBrussels ,
For the Council
The President