ARCHIVES HISTORIQUES 
DE LA COMMISSION 
 
 
 
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COM (85) 835 
 
 
 
Vol. 1985/0 271 
  
 
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 open ing to the public of the historical archives of the European Econom ic 
Communit y and the European Atom ic 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 file 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 1983 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 COMMUNITIES
C 0M C 85) 835 fin a l 
Brussels, 16 January 1986
£ Q Î3  !3I§§IQN_C O M M U N I CAT!0N_T0_THE_ C O U N C IL 
apportionment of Stabex balance from the second Lom é Convention
Draft
D|ÇISI0N_0F_IHE_AÇP=EEÇ_Ç0UNÇIL_0£_MINISTERS
apportioning the balance of the funds from the system for stab ilizatio n  
of export earnings under the second AC P-EE C  Convention
C O M (85) 835 fin a l

-  2 -
I ■ B ackground and purpose of the Communica tio n
1. This Communication is based on:
- A rticle  35 of the second Lom é Convention, which states:
"Before the expiry of the period referred to in A rticle  31, the 
Council of Ministers shall decide on the use of any balance remaining 
from the overall amount established in A rticle  31, as well as on the 
conditions for further use of any amounts s t i l l  to be replenished 
by the A C P  States under A rticles 42 and 43, following the expiry of 
the period referred to in A rticle  31."
- The second paragraph of A rticle  8 of Decision 2/85 of the 
A C P -E E C  Council of Ministers of 22 February 1985, concerning 
tra nsition al measures to apply from 1  March 1985, which provides:
"A rticle  35 of the said Convention shall continue to apply, except 
for the duration thereof, which shall be extended u n til the th ird  
A C P -E E C  Convention enters into force."
- Decision 7/85 of the AC P-EE C  Council of Ministers of 2 1  June 1985, 
which delegated to the AC P-EE C  Committee of Ambassadors powers to 
take a  decision under A rticle  35 of the second Lom é Convention.
2. For the part of the decision which deals with the use of the Stabex 
balance, regard should be had:
(a) to A rticle  2  of Decision 7/85 which states "Any balance referred 
to in A rticle  35 of the second Convention shall be reserved for 
the payment of an additional share of the amounts which, at the 
end of the financial years relating to the 1980 and 1981 years 
of application, after compensation of replenishment claims and 
taking into account the mobilization of a ll additional resources 
under the said year of application, had not been covered."
(b) to the fact that when adopting the decision, the Council of Ministers 
noted in its  conclusions that account should be taken, in deciding
on apportionment, of the A C P  States' proposal to take into 
consideration the special situation and d iffic u ltie s  of the 
least-developed A C P  State« on the lis t in A rticle  155(3)(a) of 
Lom é I I .
3. The present Communication contains proposals to the Member States 
regarding the position to be taken on the A C P-EE C  Committee of Ambassadors 
concerning the decision on:
- use to be m ade of the balance, having regard to the considerations in 
paragraph 2;
- use to be m ade subsequently of the amounts s t i l l  to be repaid by the 
A C P  States after expiry of the second Lom é Convention.
A  draft decision to be submitted to the A C P -E E C  Committee of Ambassadors 
is appended for approval to this Communication.

- 3  -
II. Allocation and breakdown of balance
4. A  number of points need to be covered:
- the size of the balance remaining at the end of Lo m é I I ;
- the purpose for which the m oney is to be used;
- the formula for apportionment of the balance am ong e lig ib le  A C P  States;
- the payment conditions;
- the nature of payments.
(a) Size of balance and purpose for which m oney is to be used
5. Annex 1  to this Communication shows the fin a l balance le ft over from 
the Lom é II Stabex fund after appraisal of a ll transfer applications 
relating to the last application year (1984). The to ta l is 127 180 016 E C U .
6. A rticle  2  of Decision 7/85 of the A C P -E E C  Council of Ministers is
clear as to the purpose for which this m oney is to be used: the whole su m
must be used in p a rtia l compensation of the effects of the 1980 and 1981 
s h o rtfa ll. This means:
- none of the money can be used in any other of the ways which might 
have been considered;
- it  must be apportioned solely between A C P  States whose ju s tifie d  ^  
transfer applications for 1980 and 1981 were not covered in fu ll.
There are 28 of these countries, listed in Annex IV; 19 of them are 
least-developed countries (LLDCs) within the meaning of the f ir s t paragraph 
of A rticle  255 of Lom é I I I .  In a ll, 43 transfers are involved, 27 of 
them to LLDCs.
(b) Formula for apportionment
7. The Committee of Ambassadors is required to apportion the available 
127 180 016 E C U  between 28 countries, taking into account:
- the amounts not covered by the transfers m ade in favour of the countries 
concerned ;
- the need to give more generous treatment to least-developed A C P  States.
W e  therefore need to agree on an estimate of the amounts not covered and a  formula for 
apportionment which takes account of the second of these c rite ria .
Note that because of the "safety net" for reductions som e of the 
applications for the two years, to ta llin g  5  124 345 E C U , were covered 
in fu ll.

- 4 -
( i ) The amounts not covered
8. These amounts can be assessed by measuring the difference,where a  transfer 
had to be reduced, between the ju s tifie d  request and the actual
payment.
A rticle 2  of Decision 7/85 of the A C P -E E C  Council of Ministers of 
2 1  June spells out what is meant by:
- ju s tifie d  requests: the sum  of requests acknowledged after appraisal
to be ju s tifie d  (714 214 774 ECU), less amounts offset by replenishment 
claims (25 787 209 E C U ) and requests for which payment was m ade in fu ll 
(5 124 345 ECU), which gives a  to ta l of 683 303 220 E C U ;
- actual transfers: actual transfers approved, including the additional
resources m ade available under the L ib re v ille  decision, which to ta l 
315 705 270 E C U .
9. The to ta l sum  of the amounts not covered(see Annex II)increases therefore to 
367 597 950 E C U  ; i t  can be p a rtia lly  offset by the 127 180 016 E C U  balance
le ft at the end of the Convention.
( ii)  Apportionment
10. Annex II shows how  the amounts not covered have varied depending on the 
year (1980 or 1981) and the category of country (LLDC or other A C P ) 
concerned.
The variation in the amounts not covered,in terms of percentage reduction of the 
ju s tifie d  request, is shown in the following table :
Reduction of entitlement:
1980 1981 1980/1981
(a) All transfers 47.8% 57.5% 53.8%
(b) LLD C s 40.5% 53.3% 45.1%
(c) Other A C P 52.6% 58.1% 56.5%
Ratio of (b) to (c) 1.30 1.09 1.25
i

- 5  -
11. Note that (a) the overall reduction w as larger in 1981 than in 1980, 
57.5% against 47.8%, and (b) the LLDCs' preferential edge w as considerably 
less in 1981, when the cut applied to the other A C P  w as only 9 %  greater, 
than in 1980, when the d iffe re n tia l w as 30% .
A s the amounts not covered by the transfer requests presented by the least 
developed A C P  States are re la tive ly smaller than those for the ordinary A C P  
States, it  would be unfair simply to apportion the balance in proportion to 
the amounts not compensated for the close of the 1980/1981 exercise.
12. Another formula must be sought, based on the Lom é I I I  negotiations 
which produced A rticle  155(3)(c) of the new  C o n v e n t i o n , but taking 
into account the limited funds available.
13. Accordingly, w e  propose the following approach, taking account of 
two factors (see Annex I I I  for detailed calculations):
- available cash: the 127 180 016 E C U  balance w ill reduce the overall 
cut for 1980/1981 from 53.8% to 35.2%;
- preferential treatment for LLDCS: the fin a l reduction for the two
categories of country w ill correspond to the preference enshrined in 
A rticle  155(3)(c) of Lom é I I I  - i.e . the cut w ill be 3 0 %  greater for 
ordinary A C P s than for LLDCS.^
14. The actual reductions * - L  work out at:
- 28.6% for LLDCs, which is within the 3 0 %  lim it set in A rticle 155(3)(c);
- 37.2% for other ACPs, again within the 4 0 %  lim it set.
A rticle  155(3)(c) reads: "In no case shall the reduction of each
transfer basis referred to in (a) exceed:
- 3 0 %  for the A C P  States listed in Articles 257 and 260, (for the second 
a rtic le  footnote n° 2 refers).
- 4 0 %  for the other A C P  States."
A rticle  155(3)(c) refers to least-developed countries (A rticle  257) and 
landlocked countries (A rticle  260). This does not affect the outcome of 
apportionment in this case, since a ll the landlocked countries concerned 
are also LLDCs, so the two categories overlap.
'The ratio of 1:3 is the sam e as that worked out for the 1980 application 
year.

-  6 -
15. The results of application of the formula are set out in Annex IV.
They are summarized by category of country in the table overleaf 
(6a), and show that:
- application of the Stabex balance raises the overall cover rate from 
46.2% to 64.8%;
- the apportionment formula raises the LLDCs' cover rate from 54.9% to 
71.4% and the rate for the other A C P s from 43.5% to 62.8%.
(c) Conditions and nature of payments
16. W e  propose that the Lom é II payment procedure be followed:
- conclusion of a  financing agreement between the Commission and each 
A C P  State concerned (A rticle  40(2));
- indication of probable use of transfer, in compliance with the objectives 
of the system (A rticle  41(1) and (2));
- report to be submitted within twelve months of the signing of the transfer 
agreement (A rticle  41(3)).
-  reconstitution of funds transferred,according to the rules at a rticle s 42 to 44.
17. Following the usual Lom é II procedure, the A C P  States w ill also have 
to state the European currency or currencies in which payment should be 
made, and the number of the bank account to be credited.
(d) Offsetting repayments
18. S o m e  of the A C P  States receiving a  share of the Stabex balance are required 
to contribute to the reconstitution of the system in accordance with the provi­
sions of A rticles 42 and 43 of Lom é II.Some countries have fo r certain amounts 
f u lfille d  the conditions laid down at the foregoing and have thus been obliged
to reconstitute.By analogy with the ad hoc measures approved by the ACP-EEC Council 
at L ib re ville  and the second indent of A rticle  174(2) of Lom e I I I  (1), i t  is 
proposed to set the repayments due from these countries against th e ir 
entitlement to a  share of the Stabex balance. In so far as the compensation 
w ill be aimed at the reconstitution obligations, which have been established 
and m ade known to the A C P  State concerned, and which are due solely at a  later 
date, the said obligations w ill be calculated taking into consideration the 
actual values of the corresponding amounts.
19. In line with the L ib re v ille  decision and A rtic le  174 of Lom é I I I ,  therefore, 
the sum  in the transfer agreement would be in th is case the net sum  remaining after 
the repayment is âedubtéa, wrircn indicates that the reconstitution ruling 
(a rticle s 42 to 44) does not apply to the amounts corresponding to compensation.
A rticle  174(2) reads: "The contribution m ay be made, at the request
of the A C P  State, either:
- direct to the system, or
- by deduction from its  transfer rights established before any application 
of A rticle  155, or
- by payment in local currency. In this case . . . "

Results of apportionment by category of country
"Toed l
ju s tifie d
requests
C m  E C U )Already
paid
C m  ECU)Situation oefore 
apportionment of balanceS u m s
outstanding
C m  E C U )Total paid 
ine. share 
of balance' 
C m  E C U )Situation before j 
apportionment of balance I
Reduction
53,8 X 
45,1 X
5 6 ,5  %I
Cover rate
46,2 X 
54,9 X 
43,5 %
!Reduct i on------------------------- »
j
Co
ver rate !
All A C P  
LLD C s 
Other A C P683,303
160,154
523,149315,TO
88,008
227,697
I127,180
26,322
100,858442,885
114,330
328,55535.2 X 
28,6 X
37.2 X
------------------------ _ |---------------- ------- 4
I
64
,8 X i 
71,4 %  j
62,8% j

- 7  -
20. In the event that the replenishment obligation is larger than the 
entitlement to a  share of the balance, the transfer w ill be zero and 
the balance w ill remain as a  claim at the expiry of the Convention 
(see paragraph 24). The sum s corresponding to repayments w ill 
be credited by other ways to the Lom é I I I  Stabex fund.
I l l . Subsequent use of amounts s t i l t  to be repaid
2  1 A rticle  35 of Lom é I I  does not apply only to use of the Stabex balance, 
but also to the use of any amounts s t i l l  to be repaid by A C P  States from 
e arlie r transfers.
Such claims are based on the Commission's review of conditions for 
replenishment in the seven years following payment of the transfer, pursuant to 
A rticle  43(2) of Lom é I I .  Replenishment claims already established have been 
notifie d  to the A C P  States concerned, which must pay o n e -fifth  of the amount 
annually over five years, a fte r a  two-year grace period.
(a) Timing
2  2 S o  far the two-year grace period has not elapsed for any of the 
repayment obligations. The f ir s t  repayment instalment in respect of a  
transfer for the Lom é II application period fa lls  due in 1986, after expiry 
of the Convention.
th repayments 
ich provides 
W e  can wait
use of 
ime of

-  8 -
( b )  Ut i L  i z  a  t i on
24. A rticle  33(3) of the second Convention provides that sum s repaid 
shall be credited to the annual instalment in use at the time.
A rticle  154(3) of Lom é I I I  makes a  sim ilar provision.
W e  therefore propose that repayments in respect of obligations accruing 
under the second Convention be credited to the Lom é I I I  annual instalment 
for the year of payment.
IV. Cone lusion
25. In the lig h t of the foregoing, it  is proposed that the draft decision 
at Annex V  be adopted and transmitted for fin a l approval to the 
AC P-EEC  Committee of Ambassadors.

Balance of fund  fo r the stabilization of 
export earnings under the second AC P-EEC  Convention
Application
yearAnnual 0  
instalm ent'Carried
overAdvance use of 
instalment in 
preceding 
yearBrought forward 
from following 
yearAdditional
resources.Total available 
fo r application 
yearPayments in 
respect of 
.application 
yearBalance
1980 110.000.000 5.975.905(2) - +  22.000.000 - 137.975.905 137.975.905 -
1981 111.750.000 - - 22.000.000 +  22.350.000 +  70.753.710 +182.853.710 182.853.710 -
1982 111.750.000 - - 22.350.000 +  13.852.363 - 103.252.363 103.252.363
1983 111.750.000 - - 13.852.363 - - - 97.897.637 50.4 68. 149 47.429.488
1  984 111.750.000 47.429.488 - - ~ ~ 159.179.488 31.999.472 127.180.016
Vne annual instalment is  110 m illio n  E C U  (see A rtic le  31 of Lom é I I :  550 m illio n  EC U ,  fo r five application  years).
From ' i l  onwards a furthe r 7 m illio n  E C U  was added to cover the accession of Zimbabwe, so the four remaining annual
instalments were increased by 750 000 E C U .
o
Balance from Lame I .
3The 70 753 710 E C U  is  m ade up of A0 m illio n  E C U  of interest from the E D F  to  be used fo r short-term development projects, 
plus 30 753 710 E C U  representing repayments of special loans in addition to the o rig in a l Stabex payments.

Annex II
Amounts  not covered 
1  .  Appli cations
(a) Total ju s tifie d  applications
(b) Repayment claims 
offset1980
261.107.143E C U
1981 T o ta l
(c) Ju stified  applications paid in fu ll 3.360.141
(d) Total ju s tifie d  applications 
subject to a  reduction
(e) - LLD Cs
(f> - Other A C P  
2, Payment
(a)  Original Stabex allocation
(b) Additional resources
(c) Justified applications 
paid in f u ll
(d) Total
(e) ~  LLDCs
( f)  - Other A C P
t Amounts  n o t covered
(a)
(b) 
(c  )Total
- LLDCs
- Other A C P257.747.002 
103.332.219 
154. AH .783
137.975.905
■  3.360.141
134.615.764453.107.631 714.214.7?4
-  25.787.209 - 25.787.209
-  1.764.204 - 5.124.345
4  25.556.21 8  , r 6  8T"._ 3  0 3.2 ?  O
56.822.204 160.154.^23
368.734.014 523.148.797
112.100.000 250.075.905
70.7 5  3.71 0  70 .'7  5  3. 7 1  0
•  1.764.204
181.089.5065.124
3 1  5.705.2 7 0 )
6 1  .488.685 
73.127.079
123.131.238 
41.843.534 
81.287.70426.519.384
154.570.12288.008.069
227.697.201
244.466.712 367.597.950
30.302.820 72.H6.354
214.163.892 295.451.596

Annex I I I
Apportionment formula
E C U
1
The following terms are known:
- Total ju s tifie d  applications: 0JA C p 683 303 220
Total LLD C  ju s tifie d  applications: D J  160 154 423
Total ju s tifie d  applications (other): D J  523 148 797d
Total transferred including balance: M T T  442 885 286
2. The overall rate of reduction (TRg =  1  - ^11 ) i s  also
D J  A C P
known: 0.35185.
3. In order to find the specific rates of reduction for
LLDCs (TRpn]]))  and non-LLDC A C P  States (TRg), w e  must solve the 
following equations:
(a) T Ra  .  , ,
i r  - 1.3 (target equation)
P M D
(b) < T R a X  DJa) +  (TRpf1|) x DJp m ) =  D JAcp -  MTT
4. The two equations produce the following answers:
TRpmd =  0.28612
T R g  =  0.37196
1  ;  ;
Abbreviations have been le ft in French for ease of comparison.

A C P  State Product
★
Benin Cotton 
Palm o il 
Palm nut oi L
Total
&Burundi Coffee
Cameroon Cocoa products 
Coffee
Total
Central Africa* Coffee
Ivory Coast Coffee
Dominica* Bananas
.  ★
Ethiopia Coffee
F iji Coconut oi l
Gambia* G roundnuts 
Groundnut  o il 
Oil cake
Total
Ghana Cocoa
j  Guinea Bissau* Groundnuts
|Jamaica Bananas
|Kenya Coffee
Least-developed countryAmounts in  ECU
ansrer before 
e of A rticle  34 
th claim offsetS u m  paid 
ineluding 
additional 
resourcesPercentage
reductionTotal amount  of 
transfer 
ineluding 
balanceAmount  to 
be transferred
u )' (2 1 (3) (4)=(1)-(1)x(3) C5)=(4)-(2)
279.910
547.448
1.171.228130.169
254.585
544.66328,6 199.820
390.808
836.10869.651 
136.223 
291.440
! *???.-1.426,736 4?7X  314
18.525.195 11.023.569 28,6 13.224.629 2.201.060
24.700.600
16.680.68210.348.448
6.988.46137,2 15.512.826
10.476.0425.164.37 8  
3.487.581
41.381.282 17.3J6.909988^868
4.932.048 2.505.192 28,6 3.520.854 1-015.662
124.861.030 54.525.114 37,2 78.417.020 23.891.906
4.248.229 2.527.944 28,6 3.032". 694 504.750
2.083.050 968.702 28,6 1.487.032 518.330
3.130.409 1.495.68757,2 1.966.005 470.318
11.157.193
8.460.125
3.045.1196.017.081 
4.631.565 
1.663.91628,6 7.964.8 1  4  
6.039.451 
2.173.8271.947.733 
1.407.886 
509.911
12.312.562 lo .178.09? 3.865.530
78.234.352 32.776.692 37,2 49.133.850 16.357.158
2.117.015 1.259.747 28,6 1.511.279 251.532
6.839.447 3.238.995 37,2 4.295.408 1  .056.41 3
71.4.38. 0 7 1 31.086.435 37,2 44.865.565 13.779.130
..............-  .. i_ _ ____

Transfer before S u m  paid
A C P  State Productuse of A rticle  3 4 including
with claim offset additional
resources
(1) (2)
Madagascar Coffee 8.212.870 3.440.826
Vani l la 2.537.569 1  -211.202
Total 10.770.439 4.652.028
-  *Malawi Tea 2.236.690 1  .330.961
Mali* Shea nuts 1.247.938 653.39)
Groundnut  product: 4.288.009 2.551.615
Total 5*535.9475=193;9Q$
Papua N G Coffee 22.488.1089.421.513
Cocoa 13.696.000 5.738.012
Copra 3.307.501 1.385.695
Coconut oi l 2.769.103 1.160.130
Total 42.260.712 17.705.350
Rwanda Coffee 12.374.108 7.208.422
bt Lucia Bananas 2.267.910 1.349.538
Solomon î s * Copra 1.555.393 723.321
Western Somoa* Cocoa j  4.572.974 2.393.836
Copra |  2.226.476 1.035.401
Tota l .799;  450 3*429.237
*Sao Tome Cocoa2.139.373 994.895
Least-developed countryAmounts in  EC U
Percentage T  
reduction t 
it 
bDtal amount  of 
ransfer  t 
icluding 
alancemount  to be 
ransferred 1
(3) (4 ) =  m -(1)*(3) (5)^(4)- (2)
37,2 5.157.965
1.606.2411.717.139
395.039
6.764.206 2.112,178
28,6 1.596.712 265.751
28,6 1 È90.869 
3.061.092237.478
509.477
3*951.961 6,955
37,2 14.123.305
8.601.559
2.077.224
1.739.0924.701.792
2.863.547
691.529
578.962
26.54 1.180 8,835,830  I
?8,6 8.833.537 1.625.115
28,6 1.613.999 269.461
28,6 1.110.352 387.031 !
28,6 3.264.521
1.559.420870.685
554.019
5,853,941 1-424, ZD4
28,6 1.527.240532.345
”,- - - - - - - - ,- - - - - - - - - - ..... ...—— —
—
2 ! 
|-T*>.

Amounts in E C U
A C P  State ProductTransfer before  
use of Arti c  le 34  
with claim offsetS u m  paid  
including  
additional  
resourcesPercentage
reductionTotal amount of  
t ransfer  
including  
balanceAm ount to be  
transferred
(i) i2) (3) (4)-(1)-(1)x(3) (5)=(4)-(2)
Senegal |
!Groundnuts  
Groundnut products  
O i l cake62.710.740  
64.093.584  
17.428.75126.272.999
30.353.160
8.253.83237,2 39.384.501
40.252.974
10.945.85513.111.502
9.899.814
2.692.023
Total 144.233.075 64.879.991 ?0.583= 330 25.ZQ3.33?
sierra Leone* Palm nuts  
Cocoa3.919.986
114.7232.030.037
53.35128,6 2.798.371
81.898768.334
28.547
•Total 4,034.709 2*083.388 880.2&? m . m
Somalia* Bananas 4.433.147 2.372.596 28,6 3.164.702 792.106
*Sudan Groundnuts
Cotton22.544.954
23.393.73013.415.560
10.879.03028,6 16.094.225  
16.700.1432.678.665  
5.821.113
Total 45.938.684 32.794.368 8.499,778
*Tanzania Coffee 12.004.221 6.949.151 23,6 8.169.4 8 4 1.620.353
Chad* Cotton 4.268.231 2.539.846 28,6
s3.046.973 · 507.127
685.303.220 315.705.270 35,2 4-2.S85.286 127.180.016
★Least-developea country

Annex V
D R A F T  
.  DECISION
O F  T H E  A C P-EEC  C O U NC IL O F  MINISTERS
apportioning the balance of the funds from  
the system for stabilization of export  
earnings under the second ACP-EEC Convention

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T H E  ACP-EEC CO UNCIL O F  MINISTERS,
Having regard to the second ACP-EEC Convention signed in Lo m é on  
31 October 1979, and in particular Articles 33, 35, 40, 41, 42, 46 and  
155 thereof,
Having regard to the third ACP-EEC Convention signed in Lom é on  
8 December 1984, and in particular Articles 154, 156 and 174 thereof,
Having regard to Decision N o  13/81 of the ACP-EEC Council of Ministers  
of 19 June 1981 reducing Stabex transfers for the 1980 application year,
Having regard to Council Decision 82/464/EEC of 14 July 1982 allocating  
the s u m  of 30 753 710 E C U  for compensatory payments to stabilize export  
earnings (1981),
Having regard to Decision N o  9/82 of the ACP-EEC Council of Ministers of  
5  August 1982 reducing transfers under the Stabex system for the  
1981 application year,
Having regard to the conclusions of the ACP-EEC Committee of Ambassadors  
(Stabex: inadequacy of resources for 1981) approved on 5  August 1982,
Having regard to Decision N o  2/85 of the ACP-EEC Council of Ministers of  
22 February 1985 on transitional measures to apply from 1  March 1985,
Having regard to decision N o  7/85 of the ACP-EEC Council of Ministers of  
21 June 1985 delegating powers to the ACP-EEC Committee of Ambassadors  
to deal with the balance of the fund for stabilization of export earnings,
Whereas after payment of Stabex transfers for the fin al application year  
under the second ACP-EEC Convention a  balance of the fund remains unspent;
Whereas the system lacked sufficient resources for the 1980 and 1981  
application years to enable the A C P  States to be compensated in fu ll for  
their loss of earnings and transfers had accordingly to be reduced;
Whereas Decision N o  7/85 of the ACP-EEC Council of Ministers provides that  
the balance of the Stabex resources should be used to pay part of the amounts  
outstanding;
Whereas the said Decision also provides that replenishment claims shall  
be offset and that the mobilization of additional resources shall be taken  
into account;
Whereas the treatment of the transfers for the 1980 and 1981 application  
years should, after apportionment of the balance, be identical;

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Whereas A rticle 46(2) of the second ACP-EEC Convention provides that when  
transfers are reduced because of an insufficiency of funds, the special  
d iffic u ltie s  of the A C P  States listed in Article 155(3)(a) shall be taken  
into account; whereas regard should be had in particular to Article 155(3)(c)  
of the third Lom é Convention;
Whereas provision should be m ade for applying the principle stated at the  
second indent of A rticle 174 (2) of the third ACP-EEC Convention ;
Whereas the apportioned funds should be paid out under transfer  
agreements using the procedure laid dow n in the second ACP-EEC Convention;
Whereas sum s to be repaid during the lifetim e of the third ACP-EEC Convention  
from Stabex transfers m ade before that period should go towards the Stabex  
allocation under that Convention,
H A S  DECIDED A S  F O L L O W S :
Article 1
The balance remaining from the system for stabilization of export earnings  
under the second ACP-EEC Convention is 127 180 016 ECU.
Article 2
1. The s u m  referred to in Article 1  shall be used in accordance with this  
Decision to pay part of the amounts outstanding from the 1980 and 1981  
application years.
2. The su m  outstanding represents the difference between ju s tifie d  transfer  
applications not paid in f u ll, net of offset replenishment claims to a  
value of 25 787 209 ECU, a total of 683 303 220 ECU, and the amounts paid
in p artia l settlement out of available resources, including an additional  
70 753 710 ECU, a  to tal of 315 705 270 EC U .
A rticle 3
The su m  referred to in Article 1  shall be apportioned in such a  way as  
to ensure that the ratio of the reduction rate for A C P  States listed in  
A rticle 155(3)(a) of the second Convention to the rate for other  
A C P  States is .1:1.3.

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Article 4
1. Articles 40 to 44 ° f the second Convention shall apply to payments  
of shares of the s u m  referred to in Article 1.
2. The obligations of an A C P  State to reconstitute the transfers paid under  
Lom é I I ,  which have been established and notified to the A C P  State concerned
at the date of entry into force of the present decision, w ill be deducted against  
the rights, to participate in the distribution of the amount provided for the fir s t  
article,paking into consideration the real value of each obligation at that date.
3. S u m s  to which paraghaph 2 applies shall -b e  credited to the annual instalment  
for the fir s t application year under the third A C P _E E C  Convention.
Article 5
1. S u m s  repaid in respect of transfers m ade before the lifetim e of the  
third ACP-EEC Convention which fa ll due during that period shall be  
allocated in accordance with Article 154(3) of that Convention.
2. S u m s  repaid in respect of transfers m ade before the lifetim e of  
the third ACP-EEC Convention, which fa ll due after that period shall be  
allocated in accordance with a  decision to be taken by the ACP-EEC Council  
of Ministers under Article 156 of that Convention.
Article 6
The A C P  States, the M em ber States and the Community shall be bound, each  
to the extent to which it is concerned, to take the measures necessary  
to implement this Decision.
Artie le 7
This Decision shall enter into force on the day on which it is adopted.
Done at
For the ACP-EEC Council of Ministers
B y the ACP-EEC Committee of Ambassadors