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COM(74)1507
Vol.1974/0241

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COMM35SEON OFTHHEUROPEAN CGMMUMTIES
COM(74)1507final
Brussels,23September1974
Proposai ,fora
COUNCILDECISION
concludingtheOECDunderstanding of27June1974
onexportcreditsforgroundsatellitecommunications
stationsandadoptingmeasuresforitsimplementation
(submittedtotheCouncilbytheCommission)
COM(74)1507final

EXPLANATORY MEMORAHDUM
.TheCommunity hasparticipated inthedrafting within theOECD ofan
Understanding onexport credits forground satellite communications
stations .
TheCommission conducted these negotiations inclose consultation
X\TiththeCommittee provided forinArticle 113oftheEECTreaty and
within theframework ofthedirectives issued toitbythe Council in
itsDecision of4February 1974 *
Thenegotiations terminated inanUnderstanding which wasadopted by
theResolution ofthe OECD Council of27June 1974 andapproved by
several members ofthat organization andbytheCommunity .
Asregards Community participation inthis Understanding ,the
Resolution adopted bytheOECD Council contains thefollowing footnote
"Reference inthepresent Resolution ,aswell asinitsAnnex .,to
♦member countries orGovernments participating intheUnderstanding *
shajl beconsidered toapply also totheEuropean Economic Community ".
Although this wording isonly astopgap until abetter formula is
negotiated ,theCommission decided toaccept itinthis case ,
particularly since theCouncil wasinfavour ofsuch asolution ,in
order toavoid calling into question allthetexts already drawn up
within the OECD .

-2-
2.Therefore ,theCommission considers that theoutcome ofthe
negotiations isacceptable totheCommunity andconsequently ,under
Article 113oftheEECTreaty ,recommends theCouncil toconclude
theUnderstanding ,
Thepublic support measures provided forintheUnderstanding are
also subject totheconsultation andinformation procedure in
matters ofcredit insurance ,credit guarantees andfinancial credits
1which theCommunity setupunilaterally bytheCouncil Decision of
3December 1973 *Tofacilitate theapplication ofthis procedure ,
theCommission proposes that ,asregards those publio support measured
which observe thetwoconditions laid down intheUnderstanding
(minimum advance payment andmaximum duration ofcredit ),theMember
State concerned beexempted from therequirement toawait prior
consultation onthese twopoints before granting itssupport .The
Community procedure would thus continue toapply initsentirety to
anymore favourable support measures granted byaMember State under
-Article 5and6oftheUnderstanding .Inaddition ,inorder to
facilitate coordination between thetwoprocedures ,provision should
bemade for all notifications orcommunications effected orreceived
byMember States under theUnderstanding tobetransmitted bywayof
'information totheother Member States andtotheCommission ,
Apart from these twoprovisions ,nofurther measures arerequired in
order toensure theapplication oftheUnderstanding bytheMember
States .
3.Therefore ,asprovided forinArticle 113oftheEECTreaty ,the
Commission proposes that theCouncil conclude theUnderstanding and
adopt the .measures necessary foritsimplementation byadopting the
attached Decision ,
OJNoL346 ,17December 1973 »P«1

DRAFTPROPOSALFORACOUNCILDECISION CONCLUDING THEOECD
UNDERSTANDING OP27JUNE1974ONEXPORTCREDITSFORGROUND
SATELLITE COMMUNICATIONS STATIONS ANDADOPTING MEASURES
FORITSIMPLEMENTATION
THECOUNCILOFTHEEUROPEANCOMMUNITIES ,
Havingregard,totheTreatyestablishing theEuropeanEconomic
Community,andinparticularArticle113thereof;
HavingregardtotheproposalfromtheCommission ;
WhereastheCommunityparticipated intheframingoftheUnderstanding
onexportcreditsforgroundsatellitecommunications stations,which
v®.sadoptedbytheResolutionoftheOECDCouncilof27June1974?
WhereasitisdesirabletoconcludethisUnderstanding andtoadopt
certainmeasuresforitsimplementation ,tricingintoaccountin
1particulartheprovisionsofthe'CouncilDecisionof3December1973
onconsultation andinformationproceduresinmattersofcredit
insurance,creditguarantees an,-lfinancialcredits;,••
HASDECIDEDASFOLLOWS:
Article 1
TheUnderstanding onexportcreditsforgroundsatellitecommunications
stations,adoptedbytheResolutionoftheOECDCouncilof
27June1974»isherebyconcludedonbehalfoftheEuropeanEconomic
Community.
ThetextsoftheUnderstanding andtheResolutionareannexedhereto.
OJNoL346,17December1973,p.1»

-2-
Article 2
Credits fortheexport tothird countries ofground satellite
communications stations which arenotgranted onmore favourable terms
that those setoutinArticle 1oftheUnderstanding maynotbethe
subject ,asregards theduration ofcredit andtheinstalments payable ,
ofanunfavourable opinion within themeaning ofArticle 10ofthe
Annex to .theabovementioned Council Decision of3December 1973»
Article 3
Member States shall transmit tothe other Member States and tothe
Commission ,subject totheconditions setoutinArticle 9ofthe
Annex totheabovementioned Council Decision of3December 1973 ,the
notifications andother communications which they send orreceive
pursuant totheUnderstanding .
Article 4
This Decision isaddressed tothe Member States .
Done atBrussels , For the Council

ORGANISATION FOR ECONOMIC
COOPERATION AND DEVELOPMENTANNEX
Paris ,10July 1974
C(74)l12(Pinal )
COUNCIL
RESOLUTION OFTHE COUNCIL
CONCERNING ANUNDERSTANDING ONEXPORT CREDITS
FOR GROUND SATELLITE COMMUNICATIONS STATIONS
(Adopted bytheCouncil atits363rd Meeting on27June 1974 )
TheCouncil ,
Having regard totheterms ofreference oftheTrade Committee 's
Group onExport Credits andCredit Guarantees ,which includes consideration
ofallpossible ways ofimproving cooperation between Member countries in
thefield ofexport credits andcredit guarantees /C(63)141 »0^1(63)22
Annex (Final ),Item 225^7 ;
Considering that anunderstanding between interested Member countries
onthemost favourable credit terms which may beofficially supported for
exports ofground satellite communications stations would constitute a
useful contribution forthegoods concerned toefforts aiming atcreating
more orderly competition inthefield ofexport credits ;
Having regard totheReport bytheTrade Committee 'sGroup onExport
Credits andCredit Guarantees of10June 1974 »concerning theimplementation
between certain Member countries ofanUnderstanding onExport Credits for
Ground Satellite Communications Stations ^C(74)^12 _/;
I. NOTES with satisfaction that thefollowing Member countries :
Belgium ,Canada ,Denmark ,Germany ,France ,Ireland ,Italy ,Japan ,the
Netherlands ,Sweden ,Switzerland ,theUnited Kingdom andtheUnited States ,
have approved theUnderstanding setoutintheAnnex tothis Resolution ,
whereby they undertake not toextend official support forexport credits
forground satellite communi cations stations onterms more favourable
than themost favourable terms setout intheUnderstanding .
II.NOTES that these countries have agreed that theUnderstanding shall
become effective asfrom 1July 1974 «
*Reference mthepresent Resolution ,aswell asinitsAnnex ,to
"Member countries orGovernments participating intheUnderstanding "
shall beconsidered toapply also totheEuropean Economic Community .

C(74)H2(Final )
III.INSTRUCTStheGrouponExportCreditsandCreditGuaranteestofollow
theoperationoftheUnderstanding ,toreviewitwithinaperiodpfone
yearafteritsimplementation and,inanycase,asoftenasrequested,in
accordancewi+hclause8oftheUnderstanding ,andtomakeanyappropriate
proposalstotheCouncil.
IV.REQUESTStheSecretary-General toensuretheefficientadministration
oftheUnderstanding .

-3- C(74)l12(Final )
Annex
UNDERSTANDING OFEXPORTCREDITSFORGROUNDSATELLITE COMMUNICATIONS
STATIONS(1)
1.TheGovernmentsparticipating inthepresentUnderstanding undertake
nottoextendofficialsupporttoexportcreditsforgroundsatellite
communications stationsontermsmorefavourablethanthefollowing:
–dovmpayment of10percentatleastofthecontractvalue,
payablebyfinalshipment,ofxfhichnotlessthan5Percent
payableonsignatureofthecontract;
-creditofmaximumlengthof8yearsfromcommissioning (2)
repayablebyregularandequalhalf-yearly instalments .
2.Inthiscontext"officiallysupported"shallincludeanyfacilities
whichenablecreditstobeinsured,guaranteedorfinancedbygovernments ,
bygovernmentalinstitutions orwithanyformofdirectorindirect
governmental participation intheoperationinquestion.
3.Insofarasotherpublicbodiesparticipate inmeasurestopromote
exports,participating governments agreetouseallpossibleinfluenceto
preventthefinancingofexportcontractsontermsmorefavourablethan
thosesetoutintheUnderstanding .
4.ThemostfavourabletermslaiddownintheUnderstanding willapplyto
theofficiallysupportedcreditextendedbj'theexportertothebuyer
(inasuppliercredittransaction)orbyabankoranyotherpartyinthe
exporter'scountrytothebuyer.oranyotherpartyinthebuyer'scountry
(inabuyercredittransaction).'
5.OfficialDevelopmentAssistcince (ODA)transactions withdeveloping
countriesaresubjecttothegeneralrulesandprocedurescoveringthe
provisionofODA.Correspondingly ,morefavourabletermsthanthoseset
forthinthisUnderstanding maybesupportedfortransactions eligiblefor
consideration asODAbytheDevelopment Assistance Committee.Participa­
tingGovernments agreetogiveadequatenoticeoftheintentiontosupport
inaparticularcasesuchterms.
(1)TheUnderstanding appliestotransactionsconcerningcompletestations,
majorcomponents -ofpartsofsuchstations,andwhetherthetransaction
takesplaceinisolationoraspartoflargerprojects.
(2)By"commissioning "ismeantthepointintimewhenconstructionofthe
stationandpreliminarytestsbythesuppliertoensurethatitis
readyforoperationhavebeencompleted,whetherornotundertheterms
ofthecontractthehand-overtothebuyerisinfactmadeatthat
time,andirrespective ofanycontinuingcommitmentwhichthesupplier
mayhavewithregardtoguaranteeing thatthestationwilloperate
effectivelyortotrainingoflocalpersonnel.

C(74)H2(Final )
Annex-4-
Ifinthecase oftransactions financed wholly orinpart from other
funds thanOM ,aparticipating Government nevertheless considers a
transaction tofeedevelopment-motivated ,theextension ofmore favourable
terms isnotprecluded ,provided that ,together with theadequate notice
oftheintention tosupport such terms ,appropriate explanations ofthe
relevant motives aregiven .
Forallcases covered "bythis Clause "adequate notice "means that ,in
accordance with agreed procedures ,,notification will bemade totheother
participating governments intheUnderstanding with maximum possible
notice ,normally not less than sixweeks before thebeneficiary orthe
exporter isinformed .
6.Anygovernment participating intheUnderstanding may ,provided that
thedecision isimmediately notified toallother participating governments ,
support more favourable terms inaparticular substantiated case tomatch
terms ofofficially supported transactions orcontraventions ofthe above
terms byother participating governments ,orcompetition from non-participating
countries . •.
7.Anygovernment participating intheUnderstanding mayobtain information
from anyother participating government ontheterms ofanyofficial support
fortheexport ofthegoods concerned inorder toascertain whethor the
terms actually conform tothose setoutintheUnderstanding .Participating
governments undertake tosupply allpossible information requested with all'
possible speed .According totherules andpractices oftheO.E.C.D.
anyparticipating government mayasktheSecretary-General toactonits
behalf inthe aforementioned matter and tocirculate the information
obtained toallparticipants intheUnderstanding ..
8.TheUnderstanding shall besubject toreview as .often asrequested by
participating governments .Anyparticipating government maywithdraw
from theUnderstanding upon giving toitspartners three .calendar months'
notice ofitsintention todoso.Within this period ,attherequest of
anyofthese partners ,there shall beameeting oftheO.E.C.D. Group on .
Export Credits andCredit Guarantees ,andanyother participating
government ,onnotification toitspartners ,maywithdraw from the
Understanding atthesame effective date asthegovernment which first
gave notice .