ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(73)674
Vol.1973/0135

Disclaimer
Conformément aurèglement(CEE,Euratom)n°354/83duConseildu1erfévrier1983
concernantl'ouvertureaupublicdesarchiveshistoriquesdelaCommunauté économique
européenne etdelaCommunauté européenne del'énergieatomique(JOL43du15.2.1983,
p.1),telquemodifiéparlerèglement(CE,Euratom)n°1700/2003du22septembre2003
(JOL243du27.9.2003,p.1),cedossierestouvertaupublic.Lecaséchéant,lesdocuments
classifiésprésentsdanscedossierontétédéclassifiés conformément àl'article5dudit
règlement.
Inaccordance withCouncilRegulation(EEC,Euratom)No354/83of1February1983
concerningtheopeningtothepublicofthehistoricalarchivesoftheEuropeanEconomic
Community andtheEuropeanAtomicEnergyCommunity (OJL43,15.2.1983,p.1),as
amendedbyRegulation(EC,Euratom)No1700/2003of22September2003(OJL243,
27.9.2003,p.1),thisfileisopentothepublic.Wherenecessary,classifieddocuments inthis
filehavebeendeclassified inconformitywithArticle5oftheaforementioned regulation.
InÜbereinstimmung mitderVerordnung(EWG,Euratom)Nr.354/83desRatesvom1.
Februar1983überdieFreigabederhistorischen ArchivederEuropäischen
Wirtschaftsgemeinschaft undderEuropäischen Atomgemeinschaft (ABI.L43vom15.2.1983,
S.1),geändertdurchdieVerordnung (EG,Euratom)Nr.1700/2003vom22.September2003
(ABI.L243vom27.9.2003,S.1),istdieseDateiderÖffentlichkeit zugänglich.Soweit
erforderlich,wurdendieVerschlusssachen indieserDateiinÜbereinstimmung mitArtikel5
dergenanntenVerordnungfreigegeben.

COMMISSION OFTHEEUROPEANCOMMUNITIES
COM(73)674final
Brussels,15May1973
PROPOSAL FORA
REGULATIONQ?r(EEC)OFIE?COUNCIL
institutingacommonpolicyandanadministrative
procedureconcerningthedurationofguarantees
andcreditsinrespectofexportstocertainthird
countries.
(submittedtotheCouncil "bytheCommission)
CÛK(73)674final

EXPLANATORY MEMORANDUM
Forsomeyearspasttherehasteengrowingcompetition betweenthe
industrialized countriesingrantingexportcredits,fortheseplayacardinal
roleintraderelations "bothbetweentheindustrialized countriesthemselves
andbetweenthemanddevelopingorstate-trading countries.Thepractical
consequences ofthiscompetition areaconsiderable increaseinthescaleof
thecreditsgiven,astrongtrendtowardsanincreaseintheirdurationand
amoreorlessmarkedtendencyofpublicauthorities andpublicorsemi-
publicagenciestoinfluenceotherfactors,suchasinterestrates,amounts
ofpaymentsonaccount,procedureforsettlinglocalportions,etc....
1TheendeavoursoftheBerneUnioninthe1950'srestrictthemaximum
durationofcommercialcreditstofiveyearscalculatedfromaclearly
definedstartingpointwereadoptedandfollowedwithintheEuropeanEconomic
Community.Thisiswhy,oneofthe.firstactionsofthePolicyCoordination
2GroupforCreditInsurance,CreditGuaranteesandFinancialCreditswasto
instituteaprocedureforconsulation concerningcreditsofmorethanfive
years'duration(CouncilDecisionof15May1962),asamendedandextendedin
January1965(DecisionNo65/53of26January196p)andreinforcedin
July19673.
•••/•••
"Unionofinternational creditinsurers",knownas"BerneUnion",setupin
1934-MostWesterncountriesaremembersofit.TheUnionmakesnobinding
rulesbut,atvariousmeetings,recommendations establishing certainpolicy
guide–lines havebeenapproved.
2SetupbytheCouncilDecisionof27September1960,OJof27October1960,
pp.1339-1340.
30Jof30June1962,pp.1561-1562,andOJof5February19^5*PP«255to
258respectively .

Itshould beemphasized that this procedure wasuntil recently theonly ...
procedure forregular consultation "between exporting countries .There are
twovariants oftheprocedure :
-consultations onprivate credits "being theresponsibility of
theCoordination Group ;.
-consultations onpublic credits ,being theresponsibility of
theCommittee ofPermanent Representatives .
This procedure under which information isexohanged regularly andinadvance ,
makes itpossible todetermine whether there isanyCommunity coherence inthe
export credit policies ofMember States ;theMember States consult each other
andtheCommission whenever they propose togrant ortoguarantee credits
linked toexports foraduration exceeding five years calculated from the
starting points defined bytheBerne Union ordeparting from anyrule .or
norms adopted bycommon agreement between theMember States ofthe Community .
Although ithadbeen hoped that theinstitution oftheconsultation
procedure would ,through frequent discussion ofactual ca3es ,bring about
theadoption ofacommon attitude toexport credits ^theprocedure hasin
fact brought tolight thedifficulties inachieving some real discipline
among theMember States ,andyetitseffectiveness ultimately depends onthe
willingness ofeach Member States tocollaborate with itspartners andonthe
extent towhich each Member State isprepared ,when consulting theothers ,to
accept their advice . '
Theonly binding rule istobefound intheobligation tohold verbal
consultations where allbut oneoftheMember States consulted have given
anunfavourable opinion ontherelevant transaction ,andinsuch acase the
.•••/•••
Adoption bytheOECD Council ,on18April 1972 ,ofanexchange ofinformation
system forexport credits exceeding aduration of5years andaprior
consultation procedure forcredits exceeding aduration offive years •;
forexports toindustrialized countries .

relevantMemberStatemust,exceptincaseofurgency,suspenditsdecision
ontheoperationuntiladecisionistakenundertheconsultation procedure.
Detaileddiscussions onthissubjectintheCommitteeofPermanent
Representatives andintheCoordination Grouphavebroughttolighttwo
majorcausesofthedifficulties encounteredinadoptingacommoncredit
policy,firstlythefactthatMemberStatesalltooreadilyinvokecompetition
fromnon-Community industrialized countriesandsecondlythelimitedvalue
ofrulesestablishedbyreferencetocountryofdestination (Easterncountries,
GDR)ortogoodssupplied(salesofshops).
Itthereforeseemsthatauniformpolicyoncreditinsurance,credit
guaranteesandfinancialcredits(inparticularasregardsduration)mustbe
developedatCommunitylevel,iftwoobjectivesaretobeattained,namely:
–theslowingdownoftheincreasingcompetition betweenMember
Str.tesprovokedbyconsiderations ofcreditontheexternal
market•'
–thestrengthening ofthepositionofCommunityundertakings
vis-a-visthirdcountrycompetitors .
Moreover,inviewofthesubstantialcapitalrequirements ofdeveloping
countriesandofthelimitedextenttowhichtheycancontractdebts,gifts
andaidcreditsshouldnormallyberegardedasthemostsuitablemethodof
financingthoseoftheirimportswhichtheycannotpayforfromexport
income.
"Lolci-rrdistinction smstthereforebodraim"bt-'.increditsforfinancing
export3toindustrieliB .&andstrtu-tmding oo-intricreditsfor'inducing
rrfortstodevelopingcountriesandaid,a*definvdbythoDevelopmentJlid
Co3Kitt-wG(D.A.S)." ......

–4–
Forthesereasonsitisnecessarytoestablish,atCommunitylevel,a.
harmonized ,policywherebytheincreasingcompetition "betweenMemberStates
provokedbyconsiderations ofcreditontheexternalmarketcanbeslowed
downandtolaydownthebasicprinciplesforacommonpolicyoncreditsto.
thirdcountries.
TheCommissionthereforeproposesthattheCouncilfixcreditlimitswitha
distinctionaccordingtotypeofcountry(industrialized countries,.including
state–tradingcountries),accordingtothegoodsorservicessupplied(by•
referencetotheamortizationperiodandprofitability),andtakingaccount
ofthirdcountrycompetition .
Theestablishment ofsuchlimitsrequiresalsoaninformation andconsultation
procedurebasedonasystemfortheexchangeofinformation andprior
consultation ,backedupwherenecessarybybindingmeasureswhenafinal
decisionistalcen,sothatrealdisciplineandsolidaritywillbeachieved
asregardsbothexportcreditpolicyandtheCommunity'sattitudein
international organizations ,inparticularintheOECD.•
Inordertoreflectcommitmentsalreadyundertakenwithininternational
bodies,inparticularinthe,OECD,theCommission'sproposalsembodyprevious
agreementslimitingthedurationofcreditsandcreditguarantees ,
concerningtheinformation andconsultation procedureforexport.credits,.
andconcerningindividualsectors(e.g.OECDshippingagreement).
' *«♦/•••
ThisiswhytheCoordination Group,atitsmeetingof25and26April1972,
feltthatthearrangements concludedbycreditinsurersintheBerneUnion
would,asregardsconsultation ,beregardedastheMemberStates'norms.

-5-
TheCommission'sproposalsfortheestablishment ofacommonpolicy
cover:
-firstly,determination oftheoperationstowhichtheproposed
measureswillapply,namelythegrantortotalorpartialguarantee
cfexportcredits,linkedtonationalexportsofgoodsorservices,
proposedbyaMemberStateorbyanycreditinsuranceorfinance
institution dependentontheState;
-secondly,thedurationofcreditgrantedinrespectofsuch
operations j
-thirdly,theinformation andconsultation procedure,asregardsboth
thecontextinwhichitistobefollowedanditsimplications with
respecttothefinaldecisionontheproposedtransaction .
*
**

Proposa1jfora
'REGULATION(EEC)OFTHECOUNCIL
institutingacommonpolicyandanadministrative
procedureconcerningthedurationofguarantees
andcreditsinrespectofexportstocertain
thirdcountries
THECOUNCILOFTHEEUROPEANC0IIMU1TITIES ,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
andinparticularArticle113thereof;
HavingregardtotheproposalfromtheCommission ;
Whereasthecommoncommercialpolicymustbebasedonuniformprinciples ,
inparticularasregardsexportpolicy;
IJhereasexportcreditsplayacardinalroleininternational tradeand
areanimportantinstrumentofcommercialpolicy;
Whereasdisparateexportguaranteeandcredittermsareapttoproduce
distortionsincompetition betweenCommunityundertakings ,whichmay
seriouslyharmtheinterestsoftherelevanteconomicsectorsofthe
Community,andmustthereforebeeliminated ;
Whereas,asregardsthedurationofexportcredits,itisnecessary
initiallytolaydowncertaincommonprinciplesforexportsto.
industrialized countries,includingthestate-trading countries,and
instituteaproceduretofacilitatetheapplication anddevelopmentof
"theseprinciples ;

-2-
Whereasitisalsonecessarytoallowforcertaindeparturesfromthe
adoptednormsandtomakeadequateprovisionaccordingly ;
HASADOPTEDTHISREGULATION :
<■
Article 1
ThisRegulationappliestothegrantortotalorpartialguaranteeof
exportcredits,inwhateverform,bypublicauthoritiesorbyanycredit
insuranceorfinancingorganization actingfortheiraccountorwith
theirsupport,wherethecreditsaredirectlyorindirectlylinkedto
exportsofgoodsorservicestoathirdcountiylistedinAnnexI;
Article2
Exportcreditsshallnotbegrantedorguaranteedontermsdeparting
fromthenormssetoutinAnnexIIunlessitisnecessarysotodos
(a)asaprotectivemeasure,toenableCommunityundertakingstocompete
withoffersmadebythirdcountryundertakings ;
(b)toremedyseriousdifficultiesintherelevanteconomicsector.
Article31
1.Whereitisproposedtograntortoguaranteeanexportcreditorto
promisetograntorguaranteesuchcreditontermsdepartingfromthe
normssetoutinAnnexII,theMemberStateconcernedshallinadvance
notifytheotherMemberStatesandtheCommissionsimultaneously thereof,
informingthemofallthefactorswhichwouldjustifytheproposed
measure,andgivingespeciallytheparticularslistedinAnnexIII.

TheMemberStateconcernedshallmakethisnotification assoonasit
commencesconsideration oftheproposedguaranteesorcreditsorofany
othermeasurepreparatorytosuchconsideration .
2.Withinfiveworkingdaysfollowingreceiptofsuchnotification ,
additionalinformationconcerningtheparticularsreferredtoin
paragraph 1mayberequestedbytheCommissionorbyanyotherMember
State,whichshallsendacopyofitsrequesttotheCommission.
Article4
Whereaglobalcreditarrangementisconcluded,theprocedureslaiddown
inthisRegulationshallapplynotonlytothecreditsrelatingto
individualcontractschargedtothatarrangement butalsotothegranting
oftheglobalarrangement ,evenwherethearrangement doesnotspecify'
thenatureofthetransactions ,thedurationortheothercreditterms
listedinAnnexII.
"Globalcreditarrangement "meansanyunderstanding orstatement,in
whateverform,wherebytheintentiontoguaranteesupplierqrfinancial J
creditsortoopenfinancialcredits,uptoaspecifiedorascertainable
ceiling,andinrespectofaconnectedseriesoftransactions ,ismade
knowntoathirdcountryortoexportersortofinancialinstitutions .
Article5
1.TheotherMemberStatesmay,withinfiveworkingdaysfollowing ;
receiptofthenotification madeunderArticle3(1)»communicatetothe
consultorMemberStateandtotheCommissiontheirunfavourable opinion
orotherviewsontheproposedmeasure,orrequestverbalconsultation
onthemeasureviithintheCommitteespecifiedinArticle14orthe
adoptionofadecisioninaccordancewiththeprocedurelaiddownin
Article7. .•.

2.Whereadditionalinformationisrequestedinaccordancewith
Article3(2),thetime-limitforthepurposesofparagraph 1ofthis
Articleshallbethreeworkingdaysfollowingreceiptofsuch
additional information .
Article6
1.WheretheCommission,havingregardtotheviewsoftheotherMember
States,considersthattheproposedmeasuredoesnotcomplywith
Article2,orwhereatleastthreeMemberStatessorequest,itshall
initiatetheprocedurelaiddowninArticle7andshallsoinformthe
consultorMemberStatewithinfiveworkingdaysfollowingexpiration
ofthetime-limitsspecifiedinArticle5(0and(2).Insuchcase
theMemberStateshallnotadoptthemeasureuntiltheprocedurehas
ledtoafinaldecision. ;
2.TheconsultorMemberStatemaytaketheproposedmeasureif,within
thetime-limitspecifiedinparagraph 1,ithasnotbeeninformedthat
theprocedurelaiddowninArticle7isbeinginitiatedorifitis
•informedbytheCommissionthattheprocedureisnotbeinginitiated.
Article7
1.WheretheprocedurelaiddowninthisArticleistobefollowed,the
representative oftheCommissionshallsubmittotheCommitteeadraft
oftheprovisionstobeadopted.TheCommitteeshalldeliverits
Opiniononthedraftwithinatime-limitwhichtheChairmanmaysetin
accordancewiththeurgencyofthematterbutwhichshallnotexceed
threeworkingdays.Opinionsshallbeadoptedbyamajorityof41
votes.. ,-
! I* »
,2.TheCommission .;shalladoptprovisionswhichshallbeimmediately
applicable.However,wheretheproposedmeasuresarenotinaccordance
withtheOpinionoftheCommittee,theyshallforthwithbecommunicated
bytheCommissiontotheCouncil,andshallbesuspendedfortenworking
days.DuringthisperiodtheCouncil,actingbyaqualifiedmajority,
maytakeadifferentdecision.

-5-
Article8
1.IncaseofurgencytheCommission mayauthorizetheconsultorMember
Statetoadopttheproposedmeasurebeforetheproceduresetoutin
Article3to7-hasbeencompleted,providedthattheconditionssetout
inArticle2(a)aremetandthatoffersfromotherCommunityundertakings
arenotmadeinrespectofthesameexporttransaction .
2.TheconsultorMemberStateshallcommunicateitsrequesttothe
CommissionandtotheotherMemberStatesinaccordancewithArticle3(1).
3.TheCommission ,afterconsultingtheMemberStateswithinthe
Committee,shalldecidebyDecisionaddressedtotheconsultorMember
Statewithinfiveworkingdaysfollowingreceiptoftherequest.It
shallcommunicateitsdecisiontotheotherMemberStates.
TheMemberStatesshallinformtheother-MemberStatesandtheCommission
ofdecisionstakenonmeasureswhichhavebeenthesubjectofconsultations
underArticles3to8.
Article10
AnyMemberStatemayconsulttheotherMemberStatesandtheCommission
onanexportcreditwhichitisproposedtograntortoguaranteein
accordancewiththenormssetoutinAnnexII.
Suchoptionalconsultation maybefollowed,uponrequestfromthe
consultorMemberState,byverbalconsultation withintheCommittee.

-6 .-
Article 11
1.AnyMember State mayaskanyother Member State whether ithas
knowledge ofanexport operation ,and inparticular oftheguarantee
and credit terms alleged byexporters orbythecredit orcredit
insurance organizations concerned ,tohave been granted inrespect of
offers from undertakings intheMember State ofwhich enquiry ismade .
2.Should noreply beforthcoming within five working days ,thealleged
terms shall bedeemed tobeestablished where the enquirer Member State
invokes them expressly ,inconnection with theprocedures laid down in
Articles 3to7ttojustify measures ;which itproposes totake in
respect ofthe same export transaction .
Article 12
1.Where athird country requests theinformation referred toin
Article 3(1)from aMember State ,andtheIlember State hasreason to
believe that therelevant export transaction isalso ofinterest to
undertakings inother Member .States ,that Member State shall inform
theother Member States andtheCommission ofthe request andofits
reply thereto .Where possible ,the Ilember State concerned shall
consult theother Member States andtheCommission before making its
reply .
2..Where therequest from thethird country ismade toalltheMember
States ,thereply thereto shall bemade bytheCommission after
consultation with the Member States within the Committee .
I
V
Article 13
TheCommission shall every sixmonths laybefore theCouncil areport
ontheapplication ofthis Regulation ,and ,whenever thenature and
importance oftheproblems dealt with sodemand ,additional reports .

-7-
Article*4
1.TheCommitteereferredtointhisRegulationisthe"Advisory
CommitteeforExportCreditInsurance"setupbytheCouncilDirective .
of27October19701.
2.ForthepurposesoftheprocedurelaiddowninArticle7»thevotes
oftheMemberStatesshallbeweightedinaccordancewithArticle143(2)
oftheTreaty,TheChairmanshallnotvote.
Article15
TheCommitteemayexamineanyotherquestionraisedbytheChairman,
eitheronhisowninitiativeorattherequestoftherepresentative
ofaMemberState.
Article16
;
ThisRegulationshallenterintoforceon
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicable
inallMemberStates.
1CouncilDirectiveof27October1970ontheadoptionofacommoncredit
insurancepolicyformedium-andlong-termtransactions withpublic
buyers(OJNoL254»23November1970)•

ANNEXI
LISTOFCOUNTRIES
(Article1)
Australia,Canada,Japan,NewZealand,NorthKorea,NorthVietnam,
People'sRepublicofChina,People'sRepublicofMongolia,Republic
ofSouthAfrica,USSR,UnitedStatesofAmerica,
AllEuropeanthirdcountriesexceptthefollowing:Cyprus,Greece,
Iceland,Malta,Portugal,Spain,TurkeyandYugoslavia.

AMEXII
LISTOFIIORIK
(Article2)
A,Durationofcraditsandguarantees
1.Thedurationofcreditsandguaranteesshallnotexceedfiveyears
calculatedfromthestartingpointsspecifiedinparagraph3.
However,forexportsofships,thedurationshallbethatspecified
intheUnderstanding onExportCreditsforShipsembodiedinthe
OECDCouncilResolutionof16December1970.
2.Thedurationofthecreditorguaranteeshallincludeanyperiodof
graceproposedinconjunctiontherewith,
3.Thestartingpointsarethefollowing:
(a)Inthecaseofcapitalgoodsconsistingofindividualitems
usableinthemselves :
themeandate,oractualdates,whenthebuyeristotakephysical
possessionofgoodsinhisowncountry;
(b)Inthecaseofcapitalequipmentforcompleteplantsorfactories:
thedatewhenthebuyeristotakephysicalpossessionofthe
entireequipment(excludingspareparts)suppliedunderthe
contract;
(c)Inthecaseofconstructionorinstallationcontracts:
theearlierofthefollowing:
-eitherthedatewhenthesellerwillhaverespectively
constructedorinstalledtheplant;or

-12monthsafterthedatewhentheentireequipment(excluding
spareparts)tobesuppliedunderthecontractwillhavebeen
deliveredonsite;
(d)Inthecaseofloansandfinancialcredits:
thedateonwhichthefirstdrawingismade.
B.Percentageoflocalcosts
Inthecaseofguaranteedprivatecredits,thebalanceofthelocal
portionpayableoncreditmustnotexceedjfoofthecontractprice,
unlesspaymentofthelocalportionistobemadenotlaterthanthree
monthsafterfinalcompletionoftheworksordeliveries.
Forthepurposesofthisrules
-"balancepayableoncredit'1meansthebalanceoutstandingafter
chargingagainstthelocalportionallpaymentsmadeonaccountin
connectionwiththecontract;
-"localportion"meansthatportionofthecontractpricerepresenting
theexpendituretheexporterexpectstoincuronthespotintheway
ofpaymentstoemployeesandothersandpaymentsforgoodsandmaterials
-"contract"meansanytypeofcontract(forthesupplyofgoodsand
materials;,for^thecariyingoutofwork;mixed(i.e.,supplyand
works)contracts);
-"paymentonaccount"meansallthesumspayablebetweentheplacingof
ï • i
theorderandfinalcompletionoftheworksordeliveries.
Leasingcontracts _ ■
Forthepurposesoftheaboverules,leasingcontractsaretobetreated
ascredits.Unlesstheycontainexpressprovisionrestrictingtheir
totalduration,thatdurationistoberegarded,forthepurposesof
Article2ofthisRegulation ,asinexcessoftheperiodssetoutin
sectionAhereof.

ANTTEXIII
LISTOFPARTIGULARS
(Article3)
Article 1
A.Inthecaseofanindividualcontract,theMemberStateconcerned
shallcommunicate thofollowingparticulars :
(a)countryofdestination ;
(b)locationoftheproposedtransactionortransactions ,orfailing
that,addressofheadofficeofthecontractingpartyinthecountry
ofdestination ;
(c)characteristics ofthetransactionandprincipaltechnicaldetails
ofitemstobesupplied:
-natureoftransaction ;
-ifcontractisforanumberofitemsofcapitalgoods,approximate
numberthereof;
--valueratingaccordingtoscaleofvalues;
-iftransaction comprisesanumberofindividualcontracts,minimum
pricesetforsuchcontracts,ifany;
-iftransactionistobeputforinternational tender,closingdate
forsubmissionoftenders;
(d)principalcredittermsappliedforbyproposedrecipient;
(e)credittermstheauthoritiesintheexportingcountryproposeto
offer,inparticular :
-percentagepayableoncredit;
-durationofcreditandstarting-point therefor(e.g.,each
delivery,lastdelivery,takingoverofworks)andcreditdrawing
period,ifany);

-2-
1-amountsofpaymentsonaccount|
-proportionguaranteed ;
-termsofpayment}
-periodofgrace,ifany;
-whererepaymentisnotto"beeffected "byequalinstalmentsat
regularintervalsbetweenthestarting-point andtermination of
thecredit,exactdetailsofhowitistobeeffected(percentage
ofeachinstalmentanddateofpayment);
-minimuminterestchargeabletotheexporterorforeignrecipient
bytheMemberStateorexportfinancinginstitution ;
-amountofeffectiveinterestsubsidy;
-creditinsurancecharges,wherethesedifferfromthosenormally
payableunderthegenerallaw; '
(f)precisegroundsreliedonfornotapplying,orfordepartingfrom,
thenormssetoutinArticle 1.
Wherethefollowingobtain,theymustbementioned:competitionfroma
thirdcountry(withindicationwhetherornotsupported);operationto
bechargedtoaglobalcreditarrangement whichhasbeenthesubjectof
previousconsultation ;importanceofcontractinviewofthestate
eitheroftheindustryconcernedoroftheareawheretheexporting
undertakingislocated.
Article2
B.Inthecaseofglobalcreditarrangements ,theMemberStateconcerned
shallcommunicatethefollowingparticulars :
(a)countryofdestination ;
(b)ceilingofglobalcreditarrangement;'
(c)purposeofcredit:
-ifknown,placewheretransactionistobecarriedout;'
-natureofgoodsandmaterialstobesupplied;

-3-
-whetherexpectedborrowersandguarantorsarepublicorprivate;
(d)credittermsasunderArticle1(e)andeligibilityrequirementsfor
individualcontracts(e.g.,closingdatesforchargingtoglobal
creditarrangement ,minimumcontractpricestobeset,ifany);
(e)precisegroundscitedfornotapplying,orfordepartingfrom,the
normssetoutinAnnexII.Wherethefollowingobtains,itmust
bementioned;competitionfromathirdcountry(withindication
whetherornotsupported).

Declaration tobeinsertedintheCouncilMinutes
X.TheCouncilandtheCommissionagreedthatasageneralrulethe
procedurelaiddowninArticles6(1)and7shouldnotbeapplied
totransactions covered "byArticle1oftheRegulationforexports
toEuropeanState-trading countries,wherethedurationofthe
creditorguaranteedoesnotexceed7yearscalculatedfromthe
starting-points setoutinAnnexII,
II.TheCouncilandtheCommissionagreedonthefollowingrulesfor
applyingArticle12oftheRegulation;
1.(a)wheretheauthoritiesintheMemberStateenquiredofare
entirelycertainthatthedurationofthetransaction in
questionwillnotexceedfiveyearscalculatedfromthe
starting-points indicatedinAnnexII,theenquirercountry
maysafelybesoinformed.Naturally,dependingonthe
typeofequipmenttowhichtheenquiryrelates,ashorter
durationnaybeindicated;
(b)otherwise,thereplyshallbethatthematterisnotknown,
andthat,exceptincaseofmatching,thedurationofthe
creditwillnotexceedfiveyearscalculatedfromthe,
starting-points indicatedinAnnexII;
(c)shoulditappearthatthetransactiontowhichthethird
countiy'senquiryrelatesisdefinitely,sofarastheMember
Stateisconcerned,eligibleforassistanceunderanoutline
agreement,theMemberStateshallmentionthisinitsreply.
2.Wheretheenquiryisaddressed:
-toasingle^MemberStateoftheCommunity:itshallbefor
thatMemberStatetodecidewhetheritoughttoconsultthe
otherMemberStatesbytelexbeforegivingareply;

-2-
--toseveralMemberStatesoftheCoirmmnitytitshall "befor
thoseStatestodecidewhethertheyoughttoconsulttheother
MemberStatesbytelexbeforegivingtheirreply;
-toalltheMemberStatesoftheConrnmitj;theyshallsendto
theCommissionbytelextherepliestheyproposetomake,and
theCommissionshallproposeadraftreplytotheCommittee
anditselfafterwardsdispatchthejointreplythusformulated.
/