ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(77)30
Vol.1977/0011

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COMMISSION OFTHEEUROPEAN COMMUNITIES
>i*-COM(77)30final.
Brussels,16February1977*
".-Proposalfora
COUNCILREGULATION (EEC)
onfinanicialandtechnicalaidtonon-associated deve­
lopingcountries
(submittedtotheCouncilbytheCommission)
COM(77)30final.

1.Introduction
Theprinciple ofimplementing financial andtechnical aidfrom theCommunity
tothenon-assooiated developing countries wasestablished inaCouncil
resolution adopted atthesession of16July 1974 tontheunderstanding
that thevolume andtheprocedure forimplementing that aidwould be
spelled outlater onthebasis ofCommission proposals .
Twocommunications tothis effect were subsequently presented bythe
Commission totheCouncil ,one (C0M(75)95 final of5March 1975 )°nfinanoial
andtechnical aidtonon-associated developing countries fortheperiod
1976-80 ,theother (COM(76)89 final of3March 1976 )ontheguidelines
fortheuse ofthe 20million u.a .appropriation entered atthesecond
reading (December 1975 )inthe1976 budget ,thanks totheresolute action of
European Parliament .
Discussion intheCouncil onthese guidelines ,which hadbeen agreed bythe
European Parliament ,onuntil themeeting of18and 19October 1976 ,following
which theCouncil agreed totheimplementation –onanexperimental basis –ofthe
20million u.a .inthe1976 budget ;
agreed that theCouncil (Development )should discuss with the
Commission atitsmeeting of8November howthat sumwastobe
allocated ;
»
decided toaccept onthefirst reading theinclusion ofa30million u.a *
appropriation inthe1977 budget forthepurpose offinancial and
technical cooperation with thenon-assooiated developing countries ;
noted that theCommission hadformally undertaken topresent toit
assoon aspossible aproposal ,drawn uponanappropriate legal
basis ,fortheimplementation ofsuch appropriations * .
Resolution onfinancial andteohnical aidtodeveloping countries not
associated with theCommunity *

Theagreement onthecommitment andallocation ofthe20million u.a.
inaccordance with theguidelines defined "bytheCommission wasoonfirmed
some weeks later ,on7December 1976 .Foritspart ,theCommission -
asithadpromised theEuropean Parliament ,inparticular ,todo-hadtaken
ingood time theappropriate steps forproject identification and
appraisal andwas onthepoint ofcompleting the final negotiations with the
recipient countries andbodies selected ;itaccordingly managed to
oommit alltheappropriation before theendofthe 1976 budget year .
Tflfltly ,theCommission would point outthat theappropriations tobeentered in
the1977 budget were increased onthesecond reading inDecember 1976
from 30to45million u.a.,their use ,however ,remaining conditional
upon theadoption bytheCouncil ofaCommission proposal establishing
theappropriate legal basis fortheimplementation bytheCommunity
offinancial andtechnical aid tothenon-associated developing oountriee .
TheCommission considers that aidofthis kind canbebased only on
Article 235oftheTreaty ,which stipulates that "Ifaction bythe
Community should prove necessary toattain ....... oneoftheobjectives
oftheCommunity andthis Treaty hasnotprovided thenecessary powers ,
theCouncil shall ,acting unanimously onaproposal from theCommission
andafter consulting theAssembly ,take theappropriate measures ".
Tothis end ,theCommission hereby submits totheCouncil foradoption
theattached proposal foraCounoil regulation ,thegeneral guidelines
ofwhich asregards objectives ,scope andtheprocedure foritsimplementation
aredealt with inthefollowing seotions .
2.Objectives ,field ofapplication and procedure for implementing the aid
Thefundamental guidelines governing financial andtechnical aidto
non-associated developing countries have already been thesubject oftwo
initial Commission Communications totheCouncil ,referred toabove ,
1which were presented respectively on5November 1974 and 5March 1975 •
^ThenextCommunication onthissubject (3March 1976),referred toatthe
beginning ofthis Communication ,defined ,within this framework ,the
specific criteria forimplementing thefinancial andtechnical aidentered
under this head inthe1976 budget (20million u.a.).

The guidelines setoutinallthese communi cations will
remain valid for thefuture .Itwould therefore beagood idea torecall
them briefly andprovide further details andclarification ofanumber of
specific points .
Theguidelines forCommunity financial andtechnical aidtonon-associated
developing countries which theCommission proposes tofollow areasfollows :
Sectoral allocation
Thepriority objective istomeet food requirements .
This embraces action intheagricultural ,stock-farming andfishery sectors .
Inaddition tomeasures aimed directly atincreasing and improving production
(investments ,supply ofequipment ,seeds ,fertilizers ,etc.),itinvolves the
setting-up andimprovement ofinfrastructure ,marketing and storage ,applied
research ,training ,technical assistance ,etc .Atthe same time Community aid
will also beable tohelp promote therural sector asawhole byextending its
field toother measures such asthedevelopment ofcraft industries ,the
financing ofagro-industrial projects and theimprovement ofthesocial well­
being oftherural population (health ,drainage ,etc.).
Asasecondary aim ,incertain specific cases action topromote regional
cooperation might also beconsidered .
Geographical allocation
Aidformeeting food requirements must begranted totheleast developed countries *
Inspecific action topromote regional cooperation ,account should betaken ofthe
need toensure aCommunity presence inthemajor regions ofthedeveloping world .
<
*
End recipient
Insofaraspossible thepoorest sections ofthepopulation inthedeveloping
countries concerned should receive maximum benefit from schemes towhich the
Community contributes .
C0M(75)128 final ,presented on5November 1974 *
Thetable inquestion isreproduced asanannex tothis document .

Nature ofaid-4-
Community aidmayeither "begiven inisolation or "becombined with
other sources ofexternal financing .Insofaraspossible itwill
becoordinated with andcomplement theMember States' bilateral aid .
Thebulk oftheaidwill have totake theform ofdirect action .
Nevertheless ,itwill bepossible forpart oftheaidtobe
channelled through national andregional financial bodies .
Terms and conditions ofaid
Community aidwill have tobeused insofaraspossible forfinancing
specific projects (project aid).Incertain cases ,however ,in
particular where theadministrative andplanning capacity ofthe
recipient countries isadequate ,programme aidmayalso beconsidered .
Community aid should take the form ofgrants .Inview ofthe
objectives ,thecategories ofcountries chosen andthesectoral
guidelines proposed inthis communication ,theCommission considers
that theonly conceivable form isgrant aid .
Inthelight ofthepositions expressed bytheCommunity onother
occasions ,participation intendering procedures andother procedures
fortheaward ofcontracts should ,intheCommission 'sview ,beopen
onequal terms toallnatural and legal persons oftheMember States
andrecipient State .Thepossibility ofother developing countries
inthesame region being included should also bepreserved .
Period ofexécution
Execution ofmost ofthedevelopment projects ,particularly inthe
rural sector –which isseen asthepriority objective ofCommunity
action –should beseen inamulti annual framework .
Thefinancial arrangements which ought therefore tobeapplied should ,
intheCommission 'sview ,bethose provided forinthefinancial

regulation (COM(76)210final )submitted forCouncil approval on
25May 1976 .
Monitoring ofuse offunds
TheCommission will seetoitthat every financing agreement signed with
thebeneficiaries contains provision fortheCommunity tomonitor theuse
ofthe funds appropriately .
3. Consultation and information procedures
Initscommunication of3March 1976 (COM(76 )89)theCommission
already pronounced itself infavour ofaprocedure forconsultation with
therepresentatives oftheMember States –through aCommittee tobe
setupforthis purpose –ontheimplementation offinancial andtechnical
aid tonon–associated developing countries .
Confirming this position ,theCommission proposes that this
procedure should involve the following phases :
(a)Theprogramme andspecific guidelines fortheaidprovided from
theresources entered intheCommunity 'sbudget will beadopted
bytheCommission following exchanges ofviews onthe intentions
oftheMember States and theCommission respectively asto
intervention inthenon-associated developing countries .This
exchange ofviews will take place inaCommittee ofrepresentatives
oftheMember States which will need tobesetup.
TheCommission will notify theCouncil andtheEuropean Parliament
ofthese specific guidelines assoon aspossible .
(b)Thefinancing decisions relating totheprojects andprogrammes
proper will betaken bytheCommission inaccordance with the
budgetary procedure butwith dueregard fortheopinion ofthe
Committee referred toabove .
TheCommittee should mainly concentrate itBexamination ofthe
C
financing proposals onwhether theprojects andprogrammes are in
keeping with theobjectives ofCommunity aidandwhether they are
consistent with thedevelopment plans ofthecountries concerned .
1
Proposal foraCouncil Regulation (ECSC ,EEC,EURATOM )amending the
Financial Regulation of25April 1973applicable tothegeneral budget
oftheEuropean Communities -C0M(76)210 final ,transmitted tothe
Council byletter (signed hyMrHillery )on26March 1976 .

Furthermore ,theCouncil andtheParliament will beinformed "bythe
Commission ofhow the financial and technical aid tothe
non-associated developing countries isbeing administered .This
information will besupplied within theframework ofthebudgetary
procedure .
Conclusion
Onthebasis oftheproposals made inthis Commission communication ,
itisrequested that theCouncil adopt theregulation annexed
hereto .

Proposai for
COUNCIL RBCULATION (EEC)NO
of
onfinancial and technical aid tonon-associated
developing countries
THECOUNCIL OFTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,
and inparticular Article 235thereof ,
Having regard totheproposal from theCommission ,
1Having regard totheopinion oftheEuropean Parliament ,
Whereas thepursuit ofaCommunity policy also postulates thedeployment of
certain financial and technical aidoperations for the "benefit ofnon-
associated developing countries ;
Whereas such operations would belikely tocontribute totheattainment of
theCommunity 'sobjectives ;
Whereas the Council oftheEuropean Communities ,inaresolution of
16July 1974 ,confirmed theprinciple ofCommunity financial andtechnical
aid tonon-associated developing countries ;
Whereas theaction tobeundertaken toimplement such aid ,theobjectives
tobeattained andthedetailed rules ofadministration should bedefined ;
whereas aprocedure should beestablished involving theconsultations ofa
runittee comprising representatives oftheMember States ;
CJNo

WhereastheTreatydoesnotprovidethenecessarypowersforthispurpose,
HASADOPTEDTHISREGULATION J
Article 1
TheCommunityshallimplementfinancialandtechnicalaidto
non–associateddevelopingcountriestindertheconditionsdefinedbelow*
Article2
Thepriorityobjectiveoftheaidshall "betocoverthefood
requirements-broadlyinterpreted –ofnon–associateddeveloping
countriesbymeansofprojectsintheagricultural ,stook–farming
andfisherysectors.
Inadditiontomeasuresaimeddirectlyatincreasingandimproving
production(capitalprojects,thesupplyofequipment,seedand
fertilizer),theaidshallcovertheprovisionandimprovementof
infrastructure ,marketingandstorage,appliedresearch,vocational
training,andsoon.Atthesametime,inordertohelppromote
theruralenvironmentasawhole,Communityaidmaybeextended,
whereappropriate ,tootheroperationssuchasthedevelopmentof
craftindustry,thefinancingofagro-industrial projectsandthe
improvementofsocialwelfare(training,health,drainage,etc.)*
Asasubsidiaryformofactionandincertainspecificcases,
operationstofosterregionaloooperation mayalsobeconsidered *

Article3
Theaidshallbedirectedtowardsthepoorestdevelopingcountries;account
shallbetaken,however,inparticularbywayofspecificoperationsto
fosterregionalcooperation,ofthenecessitytoensureaCommunitypresence
inthemajorregionsofthedevelopingworld.
Article4
TheCommissionshalladministertheaidinaccordancewiththeprocedures
laiddowninthisRegulation.
Article5
Thefundsrequiredfortheaidshallbethoseestablished bythebudgetof
theCommunities *Projectsandprogrammesthusfinancedshallbeundertaken
onamultiannual basis*
Article6
TheCommunityaidshallbeintheformofgrants*
Article7
Theaidmaycoverexpenditure onimportsandlocalexpenditurerequired
tocarryoutprojectsandprogrammes *Taxes,dutiesandchargesshall
beexcludedfromCommunityfinancing.Maintenance andoperatingexpenses
maybecoveredonlyatthetake-offstageofprojectsandinthecaseof
trainingandresearchprogrammes *

Article 8
Asregards operations financed "bytheCommunity ,participation intendering
procedures andother procedures fortheaward ofcontracts shall beopen on
equal terms toallnatural and legal persons oftheMember States and the
recipient State .Participation mayalso beextendfi toother developing
countries belonging tothe same region .
Article 9
Within the framework ofthebudgetary procedure ,theCommission shall provide
theCouncil andtheEuropean Parliament with information ontheadministration
ofCommunity aid tonon–associated developing countries .
Article 10
ACommittee chaired byarepresentative oftheCommission andcomprising
representatives oftheMember States shall besetup. Itshall be
presided over byarepresentative oftheCommission .
The Secretariat oftheCommittee shall beprovided bytheCommission .
Anyrule ofprocedure forthis Committee not laid down inthis Regulation shall
bedecided onbytheCommittee acting unanimously .
Article 11
TheCommittee shall institute aregular exchange ofinformation onoperations
undertaken bytheMember States innon-associated developing countries in
thecourse ofthis ,itBhall beinformed bytheCommission ofthe specific
guidelines which it(theCommission )intends tofollow intheprovision of
Community aid .
After this exchange ofviews ,theCommission shall adopt those guidelines
and shall notify theCouncil andtheEuropean Parliament thereof .

Article 12
TheCommittee shall deliver anopinion ondraft decisions presented toit
bytheCommission .
Thedraft decisions shall beaccompanied byamemorandum describing ,in
particular ,theplace oftheprojects orprogrammes inthecontext ofthe
development prospects ofthecountries concerned ,and containing information
onthe social effects thereof .
Article 13
TheCommittee shall actbyaqualified majority inaccordance with the first
indent ofArticle 148(2 )oftheTreaty .
Article 14
Thedraft decisions ,together with theopinion oftheCommittee ,shall be
submitted tothe Commission .
TheCommission ^decisions shall beapplicable immediately .Ifitsdecisions
arenot inaccordance with theopinion delivered bytheCommittee ,however ,
theCommission shall communicate them immediately totheCouncil .Inthat
event theCommission shall defer application ofthedecisions ithastaken
byuptotwomonths from thedate ofsocommunicating them .
eCouncil ,acting byaqualified majority ,maytake adifferent decision
vithin thetwo–month period .