26. 8. 88 Official Journal of the European Communities No C 222/5 
II 
(Preparatory Acts) 
COMMISSION 
Proposal for a Council Decision determining general guidelines for 1989 for financial and 
technical assistance to Latin American and Asian developing countries 
COM(88) 397 final 
(Submitted by the Commission on 29 July 1988) 
(88/C 222/07) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, 
Having regard to Council Regulation (EEC) No 442/81 
of 17 February 1981 on financial and technical aid to 
non-associated developing countries (x) and in particular 
Article 9 (2) thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European 
Parliament, 
Whereas general guidelines should be determined for the 
administration by the Commission of financial and 
technical assistance to Latin American and Asian 
developing countries in 1989; 
Whereas at the close of the conference held in Hamburg 
in February 1988 (San Jose IV) the Community 
confirmed its support to the process of democratization 
in the various countries of Central America, 
HAS DECIDED AS FOLLOWS: 
Article 1 
Objectives and priorities 
Community aid should be concentrated on helping the 
poorest countries and the neediest sections of the popu­
lation. 
Priority will be given to the rural sector and, in 
particular, to measures aimed at improving the food 
situation, as a contribution towards the campaign to 
combat hunger in the world. Within the rural sector 
special attention will be paid to production, support 
0) OJ No L 48, 21. 2. 1981, p. 8. services and operations in the sphere of social infra­
structure as well as training of farmers and middle-level 
staff within the projects and programmes which have 
been adopted. Encouragement will equally be given to 
the least-developed countries in looking for jointventure 
exercises with Community enterprises. 
Support for regional integration efforts will be main­
tained and stepped up in all sectors in which Community 
support can make a positive contribution. 
Aid will be tailored to the needs and priorities of each 
country and each region. 
In Asia particular attention will be paid to the need for a 
transfer of capital, with a view to increasing productive 
investment in particular in the rural sector, as well as the 
need to improve the living standards of the neediest 
sections of the population. 
In Latin America particular attention will be paid to 
reducing social disparities, through support for pilot 
projects to promote land reform efforts by calling on the 
potential of rural communities for self-management. 
Community aid to Central America at both regional and 
national level will be given special attention. 
Ad hoc training projects may be considered in countries 
where they constitute a necessary preliminary to other 
activities. 
Wherever possible, Community aid will be used to 
prepare and implement agricultural policies (food 
strategies) incorporating Community food aid where 
necessary. 
No C 222/'6 Official Journal of the European Communities 26. 8. 88 
In exceptional circumstances aid may be allocated for 
infrastructure in least-developed countries where short­
comings handicap rural development. 
Article 2 
Budget appropriations 
There shall be separate budget appropriations for the 
implementation of financial and technical cooperation in 
Asia and in Latin America. 
Reserves common to Asia and Latin Amercia will be set 
up for the specific operations referred to in Article 5: the 
specified percentage indicated in Article 5 will be used 
from each of the two budget appropriations. 
Article 3 
Measures to deal with exceptional circumstances 
The part of the aid to be earmarked, pursuant to Article 
3 (3) of Regulation (EEC) No 442/81, to deal with 
exceptional circumstances, in particular projects which 
concern reconstruction following disasters, will be 
limited to a maximum of 10 % of the available funds 
referred to in Article 2, thus making it possible to 
provide an adequate response to needs which are 
difficult to forecast. 
Article 4 
Implementation of aid 
Aid shall be granted for projects or programmes, 
including integrated projects and sectoral programmes, where appropriate, in accordance with Regulation (EEC) 
No 442/81 and all other applicable provisions. 
The allocation of funds shall take account of: 
— the intrinsic value to development and the degree to 
which intervention corresponds to the priorities of 
the recipient countries and regions and the needs of 
the poorest sections of the population, 
— the income levels and development needs of the 
recipient countries, funding provided in previous 
years and the experience gained in implementing past 
aid, 
— cooperation agreements concluded with certain 
recipient countries or groups of recipient countries. 
The Commission and the Member States will continue to 
make strong efforts to increase the volume of 
cofinancing, in particular between the Community and 
the Member States as well as other countries and 
organizations. 
Article 5 
Special provisions 
The Community shall support agricultural research in 
Asia and Latin America at all levels. The upper limit for 
international research shall be 3 % of the funds referred 
to Article 2. 
The upper limit for the cost of administering the 1989 
programme (use of outside experts, provision of 
specialists) shall be 2 % of the funds referred to in 
Article 2.