ARCHIVES HISTORIQUES 
DE LA COMMISSION 
 
 
 
COLLECTION RELIEE DES 
DOCUMENTS "COM" 
 
 
 
 
COM (85) 388 
 
 
 
Vol. 1985/0149 
  
 
Disclaimer  
Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the openi ng to the public of the historical archives of the European Econom ic 
Community and the European Atomic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), this f ile is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februar 198 3 über die Freigabe der historischen Archive der Europäischen  
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983,  
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003  
(ABI. L 243 vom 27 .9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit  
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5  
der genannten Verordnung freigegeben.  
COMMISSION  
OF THE
EUROPEAN COMMUNITIESCOM(8 5 ) 388 final 
Brussels, 5 July 1985
FOR O F F IC IA L USE O NLY
G en eral S ecretariat
COMMUNICATION FROM THE COMMISSION TO THE COUNCIL
United Nations Conference on Conditions for Registration <  
Ships, Resumed Session, 8-19 July 1985
C0M(85) 388 final

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I. INTRODUCTION
1. In accordance with Resolution 39/209 of the General  
Assembly of the United Nations of 20 December 1982, the  
UN Conference on Conditions for Registration has met in  
Geneva on two occasions·
The Conference made significant progress during the  
second part (28 January to 15 February 1985) of its  
session and will resume its work from 8 to 19 July 1985.
2. Community coordination and consultations with the Member  
States would be appropriate at this stage in order to  
discuss outstanding issues and any points which may give  
rise to problems in following a common position at the  
Conference.
3. There are two specific issues for which a Community  
position is required. These are:
- participation of regional organisations in the future  
agreement ;
- safeguarding the obligations of the Member States  
under the Treaty of Rome.
II. ISSUES OF GENERAL INTEREST
4. In preparation for the resumed session of the  
Conference, the OECD Group has already considered how  
the present composite text* could be modified to enable  
it to move closer to an agreement which would be  
acceptable to all Groups at the session.
The composite text is contained in doc.  
td/RS/CONF/15/ADD.1

The Commission strongly believes that the international  
community has an interest in eliminating any abuses of  
ship registration that may become possible through the  
failure of flag States to meet their international  
obligations of effectively exercising their jurisdiction  
and control over ships flying their flag. This view  
coincides with the view taken by OECD States (Group B).
The Commission, therefore, fully supports the adoption  
of measures which aim at strengthening the genuine link  
between ship and flag State by ensuring that the flag  
State is in a position to exercise its jurisdiction and  
control over matters such as maritime safety, labour  
conditions, environmental protection, the insurance of  
ships and company law.
At the same time, the Commission believes that the
\present market system, based on a relatively free flow  
of capital,'labour and management, has contributed to  
the efficient organisation of seaborne transportation.  
The Commission therefore agrees with the Member States  
that any concessions in relation to the economic con­
ditions of registration should not reduce the flexi­
bility offered by present arrangements to the detriment  
of their shipping and trading interests.
It is essential that the OECD States (Group B) continue  
to show solidarity through to the end of the  
Conference. In any event, the Commission considers it  
of the highest importance, in view of the Community  
interest in this matter, that the Member States and the  
Commission remain in close contact and consult each  
other as the need arises so as to proceed throughout the  
Conference with a common position.

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III. ISSUES OF SPECIFIC COMMUNITY INTEREST
a*  Participation of Regional Organisations
9. At the second part of the session of the Conference, the  
OECD Group pointed out that the interests of regional  
organisations might require their participation in the  
Agreement. The other regional Groups expressed doubts  
"whether any regional organisations exist on which are  
entrusted the task of registering ships. But both  
groups are open to discuss the issue".*
10. The Commission is of the opinion that the Community has  
to participate, in UN agreements if matters of Community  
competence are at stake. In respect of this particular
Agreement, the Community must ensure that it is
\compatible with the Treaty of Rome and that in  
implementiifg it the Member States respect their Treaty  
obligations. This would not at this stage necessarily  
require the participation of the Community in the  
Agreement.
11. If the Agreement were to contain any provisions the  
implementation of which would be a matter of Community  
competence - something which at this stage cannot be  
ruled out - a clause allowing for Community  
participation in the Agreement would be necessary.
Footnote in composite text

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b. Conditions for Registration and the Treaty of Rome
12. The Community must ensure that any conditions for the  
registration of ships in the Agreement are not incompat­
ible with the obligations of Member States under the  
Treaty of Rome.
13. The present composite text contains provisions that
run counter to a number of Articles in the Treaty, inter  
alia, Articles 7, 48, 52, 58, 59 (possibly), 67 and 221.
These provisions concern:
- participation by nationals of the flag State or  
persons domiciled in its territory in the complement  
of key officers and crew of ships flying its flag;
- establishment of shipowning companies or subsidiaries  
or their Representatives in the flag State;
- participation by nationals of the flag State in the  
ownership of vessels.
14. The requirement concerning the manning of ships is  
incompatible with Articles 7 and 48* of the Treaty. It  
is also contrary to Article 59 to the extent that it may  
concern the activities of professions such as those  
exercised by medical persons insofar as these activities  
do not fall within the ambit of Article 48.
As for the conditions relating to the management of  
shipowning companies and ships, nationality restrictions  
on the right of establishment are contrary to Articles  
52 and 58 of the Treaty.
* Court judgment No. 167/73 of 4 April 1974

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The requirement for national participation in the owner­
ship of ships is in contradiction with Articles 67 and  
221 .
15. In addition to the above, the recommendation concerning  
the promotion of joint ventures should not prejudice  
Community competition law.
16. Without excluding other questions which may arise during  
the Conference, these are conditions which the Member  
States cannot subscribe to as they infringe the Treaty.  
This is the case irrespective of the nature - mandatory  
or recommendatory - of the Agreement in general or of  
the specific provisions referred to.
17. All regional groups are aware of the fact that the
inclusion of conditions in the Agreement such as the one
\
referred to above presents specific problems for the  
Member Statès with regard to their obligations under the  
Treaty of Rome. This was formally recognised by the  
Group of 77 following a Community Declaration*.
18. In the light of the above, the Community must ensure  
that the Agreement contains a clause which safeguards  
the obligations of the Member States under the Treaty of  
Rome. The following text would meet this requirement:
See report of the Conference on the second part of its  
session, doc. TD/rs/CONF/15, §§107-110

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"This Agreement shall not affect any rights or obli­
gations resulting directly or indirectly from the  
Membership of any Contracting Party of any regional  
economic integration Organisation."
19. The Community should also submit a clause which provides  
for a derogation from the specific nationality  
conditions as between the Member States. The following  
text would be adequate:
"For the purposes of this agreement the term  
"nationals" may include those persons that benefit from  
provisions in an agreement establishing a regional  
economic integration organisation which relate to the  
free movement, of workers, the freedom to provide  
services, the right of establishment and the free move­
ment of capital."
\
20. If a derogation from the nationality conditions only  
were inserted, the competition law aspect would have to  
be covered through an amendment of the provision on  
joint ventures. The following wording (underlined)  
would cover the Community competition law aspect:
"States Parties to the present Agreement should, in  
conformity with their national policies, legislation,  
including legal obligations arising from agreements  
establishing a regional economic integration  
organisation, and the conditions of registration  
contained in this Agreement, promote joint ventures .."

IV. CONCLUSIONS
The Commission, therefore, proposes that the Council decide  
that, in pursuing the negotiations at the UN Conference on  
Conditions for Registration of Ships, the Member States and  
the Commission:
- remain in close contact and consult each other as  
necessary in the most appropriate manner, so as to pro­
ceed throughout the Conference with a common position;  
and in doing so contribute to maintaining solidarity  
within the OECD Group;
ensure that the .common position, in solidarity with the  
position of the OECD Group, aims at the adoption of
measures which strengthen the link between ship and flag
\State without reducing the flexibility offered by present  
arrangements'to the detriment of Community shipping and  
trading interests;
- ensure that the Agreement contains a clause which  
safeguards the obligations of the Member States under the  
Treaty of Rome;
ensure that the Presidency of the Council submits at the  
Conference a clause to that effect, as well as make any  
necessary declaration on behalf of the Community and its  
Member States.