COMMISSION OF THE EUROPEAN COMMUNITIES 
C0MC90) 53 final 
Brussels, 9 February 1990 
Proposal for a 
COUNCIL DECISION 
on acceptance of the Terms of Reference of the 
International Copper Study Group 
(presented by the Commission) 
Explatatory Memorandum 
1. After more than ten years of various forms of 
discussion and negotiation, discussion was resumed In 
1987 on the establishment of a Copper Study Group. A 
negotiating conference was convened following the 
consensus reached In November 1987 and after two sessions 
(13 to 24 June 1988 and 20 to 24 February 1989) It proved 
possible to adopt the text of the terms of reference of 
the International Copper Study Group. 
During the paragraph-by-paragraph approval of the text, 
the United Kingdom entered a formal reservation regarding 
paragraph 4(f) (functions of the Group) and the United 
Kingdom and Germany entered a formal reservation 
regarding paragraph 18 (the Group's activities with a 
bearing on market development) 
2. The terms of reference approved by the Conference 
provide for the establishment of an International Copper 
Study Group responsible for major tasks of analysis and 
monitoring of the copper market and trade In copper, 
conducting consultations on the International copper 
economy, Improving access to and availability of 
statistics, carrying out relevant studies and undertaking 
activities aimed at developing the copper market. 
3. Membership of the Group Is open to a I I States 
interested In the production of, the consumption of, or 
the International trade In, copper and to any 
Intergovernmental organization having responsibilities In 
respect of the negotiation, conclusion and application of 
international agreements, In particular commodity 
agreements. 
The Group's activities fall under the common commercial 
policy. The Community's participation is therefore 
necessary in order to prevent It and its Member States 
from being excluded from such an International 
initiative. However, only the participation of States is 
taken Into account In determining the entry Into force of 
the Group's terms of reference. It is therefore 
necessary that the Member States take part in the Group's 
formation alongside the Community. 
4. The Group's terms of reference will enter into force 
definitively when States together accounting for at least 
80% of trade in copper have notified the Secretary-
General of the United Nations of their acceptance of the 
terms of reference. The terms of reference may also 
ent.v into force provisionally when accepted by States 
together accounting for at least 60% of trade in copper 
have notified the Secretary-General of the United Nations 
of thslr accept-1 ce of the terms of reference. If the 
requirements ro.* entry into force have not been met by 30 
Ju 3 !390, :h-;_ Secretary-General of the United Nations 
VY i i • i •)"• ; ':e those States which have notified their 
acceptance to decide whether or not to put the terms of 
reference Into force among themselves. 
5. It should be noted that under paragraph 22 of the 
terms of reference only States count for the entry Into 
force. If the Commission were to claim exclusive 
Community powers under Article 113 of the EEC Treaty, 
thereby preventing Member States from participating, It 
would be Impossible to establish the Group. 
6. In these circumstances, and since It Is In the 
Interest of a I I Member States that the Group be 
established, it seems appropriate to conclude a political 
agreement with the Member States to ensure their 
part icI pat ion. 
7. The draft terms of reference have been negotiated by 
the Community and Its Member States In accordance with 
the common position established by the Council*). 
8. The acceptance of the terms of reference Involves 
both Community action and Joint action by the Member 
States and it is therefore Important that the Community 
and Its Member States deposit their instruments of 
acceptance simultaneously on the basis of a common 
pos11 ion. 
9. The attached proposal for a Council Decision has been 
drafted in the above sense, any individual Independent 
initiative being an infringement of the EEC Treaty. 
) See doc. 6626/88 Proba 24. 
Proposal for a Council Decision on acceptance o" the To. m.-
of Reference of the International Copper Study Group 
THE COUNCIL OF THE EUROPEAN COMMUNITIES 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Articles 113 and 116 
thereof, 
Having regard to the proposal of the Commission, 
Whereas the Terms of Reference of the International Copper 
Study Group were adopted at Geneva on 24 February 1989 by 
the United Nations Conference on Copper; 
Whereas the States and International Organizations that 
were Invited to the Conference have been asked to notify 
the United Nations Secretary-General of their acceptance of 
the Terms of Reference In accordance with Article 20; 
Whereas the European Community and its Member States have 
participated in the Conference; 
Whereas the Study Group will develop an Important activity 
of analysis and surveillance of the market and of trade for 
copper ; 
Whereas acceptance of the Terms of Reference requires both 
Community action and concerted action by the Member States; 
Whereas, the Community and Its Member States should 
therefore, on the basis of a common position, lodge their 
instruments of acceptance at the same time. 
HAS DECIDED AS FOLLOWS: 
Article 1 
The Terms of Reference of the International Copper Study 
Group are hereby accepted by the European Community. 
The Community and the Member States that have completed 
their internal procedures shall lodge their instruments of 
acceptance with the Secretary-General of the United 
Nations. The text of the Terms of Reference is annexed 
hereto. 
Article 2 
The President of the Council Is hereby authorized to 
designate the persons empowered to lodge the Instrument of 
acceptance on behalf of the Community. 
Done at Brussels, For the Council 
The President 
ANNEX 
TERMS OF REFERENCE OF THE 
INTERNATIONAL COPPER STUDY GROUP 
Establishment 
1. The International Copper Study Group is hereby established to administer 
the provisions and supervise the operation of these terms of reference. 
Objective 
2. To ensure enhanced international co-operation on issues concerning 
copper, by improving the information available on the international copper 
economy and by providing a forum for intergovernmental consultations on copper. 
Definitions 
3. (a) "The Group" means the International Copper Study Group as 
constituted in these terms of reference. 
(b) "Copper'" means ores and concentrates of copper; unrefined and 
refined copper metal, including secondary copper; copper alloys; scrap, 
wastes and residues of copper; semi-manufactured products and such other 
products of copper as the Group may determine. 
(c) "Members" means all States and intergovernmental organizations as 
provided for in paragraph 5 which have notified their acceptance pursuant to 
paragraph 22. 
Functions 
4. In pursuance of its objective, the Group shall have the following 
functions : 
(a) To conduct consultations and exchanges of information on the 
international copper economy; 
(b) To improve-statistics on copper; 
(c) To undertake regular assessments of the market situation and 
outlook for the world copper industry; 
(d) To undertake studies on issues of interest to the Group; 
(e) To undertake activities related to efforts pursued by other 
organizations aimed at developing the market for copper and contributing to 
the demand for copper; 
- 2 -
if) To consider special problems or difficulties which exist or may 
arise in the international copper economy. 
The Group shall carry out the above functions without derogating from the 
right of every member to manage all aspects of its domestic copper economy and 
without prejudice to the competence of other international organizations in 
matters falling within their jurisdiction. 
Membership 
5. Membership of the Group shall be open to all States which are interested 
in the production or consumption of, or international trade in, copper, and to 
any intergovernmental organization having responsibilities in respect of the 
negotiation, conclusion and application of international agreements, in 
particular commodity agreements. 
Powers of the Group 
6. (a) The Group shall exercise such powers and take action or arrange for 
action to be taken as may be necessary to carry out and ensure the application 
of the provisions of these terms of reference. 
(b) The Group shall not have the power, directly or indirectly, to 
enter into any contract for the purposes of trade in copper or in any other 
commodity or product, or any contract for futures transactions; nor shall it 
have the power to enter into any financial obligations for such purposes. 
(c) The Group shall adopt such rules of procedure as are considered 
necessary to carry out its functions and which shall be subject to, and not 
inconsistent with, these terms of reference. 
(d) The Group shall not have the power and shall not be taken to have 
been authorized by its members to incur any obligation outside the scope of 
these terms of reference or the rules of procedure. 
Headquarters 
7. The Headquarters of the Group shall be at a location selected by it in 
the territory of a member State, unless the Group decides otherwise. The 
Group shall negotiate a Headquarters Agreement with the host Government to be 
concluded as soon as possible after these terms of reference have entered into 
force. 
- 3 -
Decision-making 
8. (a) The highest authority of the Group established under these terms of 
reference shall be vested in the General Session. 
(b) The Group, the Standing Committee referred to in paragraph 9, and 
such committees and subsidiary bodies as may be established, shall take 
decisions by consensus and without a vote, except in the case of decisions for 
which a specific voting majority is specified in these terms of reference or 
in the rules of procedure. 
(c) Each member State shall be entitled to one vote. 
Standing Committee 
9. (a) The Group shall establish a Standing Committee, which shall consist 
of those members of the Group which have indicated their desire to participate 
in its work. 
(b) The Standing Committee shall undertake such tasks as may be 
assigned to it by the Group and shall report to the Group on completion, or on 
the progress, of its work. 
Committees and subsidiary bodies 
10. The Group may establish committees or other subsidiary bodies, in 
addition to the Standing committee, on such terms and conditions as it may 
determine. 
Secretariat 
11. (a) The Group shall have a Secretariat consisting of a 
Secretary-General and such staff as may be required. 
(b) The Secretary-General shall be the chief administrative officer of 
the Group and shall be responsible to it for the administration and operation 
of these terms of reference in accordance with the decisions of the Group. 
Co-operation with others 
12. (a) The Group may make arrangements for consultations or co-operation 
with the United Nations, its oigans or specialized agencies, and with other 
intergovernmental institutions, as appropriate. 
(b) The Grout may also make arrangements as it considers appropriate 
for maintaining oontact with interested non-participating Goveraments, with 
other international non-governmental organizations, or with private sector 
institutions, a.~ appropriate. 
•.'.":? OhTî::-v--r? rcr.y bs i.-.vited to attend, meetings of the Group or its 
sobs•':. -:\\ -.-;- ' .^ji = s ci îfuoh ter;?*-, r :"•••'" -•-n.'.ii tior.j as the Group or those bodies 
ma'-' ô"20 iif . 
- 4 -
Relationship with the Common Fund 
13. The Group may apply to be designated as an International Commodity Body 
(ICB) under article 7 (9) of the Agreement establishing the Common Fund for 
Commodities, for the purpose of sponsoring, in accordance with the provisions 
of these terms of reference, projects on copper to be financed by the Fund 
through its Second Account. Decisions on the sponsoring of such projects 
shall normally be taken by consensus. If consensus cannot be reached, 
decisions shall be taken by a two-thirds majority vote. The Group shall not 
incur any financial obligations in respect of such projects; nor shall it act 
as executing agency for any such project. 
Legal status 
14. (a) The Group shall have legal personality. It shall, in particular, 
but subject to paragraph 6 (b) above, have the capacity to enter into 
contracts, to acquire and to dispose of movable and immovable property, and to 
institute legal proceedings. 
(b) The status of the Group in the territory of the host Government 
shall be governed by a Headquarters Agreement between the host Government and 
the Group. 
Budget contributions 
15. (a) Each member shall contribute to an annual budget which shall be 
approved by the Group in accordance with the provisions of the rules of 
procedure. For the purpose of assessing the contributions of members, 50 per 
cent of the budget shall be apportioned equally among them; 25 per cent shall 
be apportioned among member States in proportion to their shares in the total 
exports and imports of member States of copper ores and concentrates, measured 
in copper metal content, and unrefined and refined copper; and the remaining 
25 per cent shall be apportioned among member States in proportion to their 
shares in a total which shall consist of the mine production or refined 
consumption of copper of each member State, whichever is the higher. The 
calculation of these shares shall be based on the latest three calendar years 
for which statistics are available. 
(b) The Group shall determine the contribution of each member for each 
financial year in a currency to be decided by the Group and in accordance with 
the provisions for contributions specified in the rules of procedure. The 
payment of the contribution by each member shall be made in accordance with 
its constitutional procedures. 
(c) In addition to the budget contributions, the Group may accept 
donations from external sources. 
- 5 -
Statistics and information 
16. (a) The Group shall collect, collate and make available to members such 
statistical information on production, trade, stocks and consumption of 
copper, including consumption by specific markets and end-use industries, as 
it deems appropriate for the effective operation of these terms of reference, 
as well as the information referred to in subparagraph (b) below. 
(b) The Group shall make such arrangements as it considers appropriate 
by which information may be exchanged with interested non-participating 
Governments and with appropriate non-governmental and intergovernmental 
organizations in order to avoid duplication of work and to ensure the 
availability of recent, reliable and complete information on production, 
consumption, stocks, international trade, internationally recognized published 
prices of copper, technology, research and development activities relating to 
copper and other factors that influence the demand for and supply of copper. 
(c) The Group shall endeavour to ensure that information made available 
by it does not prejudice the confidentiality of the operations of Governments 
or persons or enterprises producing, processing, marketing or consuming copper. 
Annual assessment and reports 
17. (a) The Group shall undertake an annual assessment of the world copper 
situation and related matters in the light of information supplied by members 
and supplemented by information from all other relevant sources. The annual 
assessment shall include a review of anticipated copper production capacity 
for future years and an outlook for copper production, consumption and trade 
for the following calendar year, for the purpose of assisting members in their 
individual assessments of the evolution of the international copper economy. 
(b) The Group shall prepare a report incorporating the results of the 
annual assessment and distribute it to members. If the Group deems it 
appropriate, this report, as well as other reports and studies distributed to 
members, may be made available to other interested parties in accordance with 
the rules of procedure. 
Market development 
18. (a) The Group shall hold discussions among members and between members 
and third parties, such, as copper research and market development 
organizations, on ways and means of increasing the demand and developing the 
market for copper. Within this framework the studies done by the Group in 
support of market development will be disseminated to copper development 
organizations for their use in preparing market development project proposals 
to be submitted to the Group for consideration. Execution of these projects 
will be undertaken by market development organizations. The Group may select 
and sponsor projects to be financed by the Common Fund through its Second 
Account. 
(b) The Group shall offer to facilitate co-ordination between market 
development organizations and support the extension of market development 
activities. 
- 6 -
Studies 
19. (a) The Group shall undertake or make appropriate arrangements to 
undertake ad hoc studies related to the international copper economy as may be 
agreed by the Group. 
(b) The studies may contain general recommendations or suggestions to 
the Group but such recommendations or suggestions shall not derogate from the 
right of every member to manage all aspects of its domestic copper economy and 
shall be without prejudice to the competence of other international 
organizations : in matters falling within their jurisdiction. 
Obligations of members 
20. Members shall use their best endeavours to co-operate and to promote the 
attainment of the objective of the Group, in particular by providing the data 
referred to in paragraph 16 (a). 
Amendment 
21. These terms of reference may be amended only by consensus of the Group. 
Entry into force 
22. (a) These terms of reference shall enter into force definitively when 
States together accounting for at least 80 per cent of trade in copper, as set 
out in the annex to these terms of reference, have notified the 
Secretary-General of the United Nations (hereinafter referred to as "the 
depositary") pursuant to subparagraph (c) below of their definitive acceptance 
of these terms of reference. 
(b) These terms of reference shall enter into force provisionally when 
States together accounting for at least 60 per cent of trade in copper, as set 
out in the annex to these terms of reference, have notified the depositary 
pursuant to subparagraph (c) below of their provisional or definitive 
acceptance of these terms of reference. 
(c) Any State or any intergovernmental organization referred to in 
paragraph 5 which desires to become a member of the Group shall notify the 
depositary that it accepts these terms of reference either provisionally, 
pending the conclusion of its internal procedures, or definitively. Any State 
or intergovernmental organization which has notified its provisional 
acceptance of these terms of reference shall endeavour to complete its 
procedures within 36 months of the date of entry into force of these terms of 
reference or the date of its notification of provisional acceptance, whichever 
is the later, and shall notify the depositary accordingly. Where a State or 
intergovernmental organization is not able to complete its procedures within 
the time limit referred to above, the Group may grant an extension of time to 
the State or intergovernmental organization concerned. 
- 7 -
(d) If the requirements for entry into force of these terms of 
reference have not been met on 30 June 1990. the depositary shall invite those 
States and intergovernmental organizations that have notified their 
provisional or definitive acceptance of these terras of reference to decide 
whether or not to put these terms of reference into force provisionally or 
definitively among themselves. 
(e) When these terms of reference enter into force, the depositary 
shall convene an inaugural meeting of the Group as soon as possible 
thereafter. Members shall be notified at least one month, where possible, 
prior to that meeting. 
Withdrawal 
23. (a) A member may withdraw from the Group at any time by giving written 
notice of withdrawal to the depositary and to the Secretary-General of the 
Group. 
(b) withdrawal shall be without prejudice to any financial obligations 
already incurred by the withdrawing member and shall not entitle it to any 
rebate of its contribution for the year in which the withdrawal occurs. 
(c) Withdrawal shall become effective 60 days after the notice is 
received by the depositary. 
(d) The Secretary-General of the Group shall promptly notify each 
member of any notification received under this paragraph. 
Termination 
24. (a) The Group may at any time decide by a two-thirds majority vote of 
member States to terminate these terms of reference. Such termination shall 
take effect on such date as the Group shall decide. 
(b) Nothwithstanding the termination of these terms of reference, the 
Group shall continue in being for as long as it is necessary to carry out its 
liquidation, including the settlement of accounts. 
Reservations 
25. No reservations may be made to any of the provisions of these terras of 
reference. 
Annex - 8 -
TRADE IN COPPER S a/ 
Count rjy 
Australia 
Austria 
Belgium-Luxembourg 
Bolivia 
Brazil 
Bulgaria 
Canada 
Chile 
China 
Cuba 
Denmark 
Finland 
France 
German Democratic Republic 
Germany, Federal Republic of 
Greece 
Hungary 
India 
Indonesia 
Iran (Islamic Republic of) 
Ireland 
Italy 
Japan 
Madagascar 
Mexico 
Netherlands 
Norway 
Panama 
Papua New Guinea 
Peru 
Philippines 
Poland 
Portugal 
Republic of Korea 
Spain 
Sweden 
Thailand 
Turkey 
Union of Soviet Socialist 
Republics 
United Kingdom of Great Britain 
and Northern Ireland 
United States of America 
Yugoslavia 
Zaire 
Zambia Kxpor toj 
150 
24 
222 
1 
2 
1 
635 
1308 
7.0 
2.7 
2 
21 
15 
13 
70.7 
90.4 
41.7 
0.9 
13.1 
55.4 
122.0 
7.6 
53.5 
171.5 
343.4 
217.1 
177.1 
3.1 
4.2 
86.4 
81.6 
103.3 IIDliQLiii Total trade 
(thousand tonnes) 
13.3 
430.9 Share 
153.8 
2.0 
78.7 
358 
6 
1, 
54 
358 
62.5 
713.0 
23.7 
34.0 
64.6 
17.4 
0.2 
355.7 
1217.1 
5.0 
23.1 
12.0 
18 
16 
177 
97, 
81 
17 
46 
23.6 ) - - - (per cent) 
150.7 1.41 
37.5 0.35 
653.5 6.12 
1.0 0.01 
156.1 1.46 
3.0 0.03 
713.8 6.69 
1308.0 12.26 
365.9 3.43 
9.2 0.09 
4.3 0.04 
76.4 0.72 
373.8 3.50 
76.0 0.71 
783.7 7.34 
23.7 0.22 
34.0 0.32 
64.6 0.61 
107.8 1.01 
41.7 0.39 
1.1 0.01 
368.8 3.46 
1272.5 11.92 
127.0 1.19 
30.7 0.29 
65.5 0.61 
171.5 1.61 
343.4 3.22 
217.1 2.03 
195.5 1.83 
19.8 0.19 
182.1 1.71 
183.4 1.72 
163.5 1.53 
17.6 0.16 
46.3 0.43 
126.9 1.19 
32.1 
187.9 
16.5 
508.4 
500.5 324.5 
529.1 
34.5 
. 
20.0 356.6 
717.0 
51.0 
508.4 
520.5 3.34 
6.72 
0.48 
4.76 
4.88 
L-OTAL 5296.0 5374.9 10670.9 100.00 
a/ Annual average for the period 1984-1986 of imports and exports of ores and 
concentrates, measured in copper metal content, and unrefined and refined 
copper for "ountrie? which participated in the United Nations Conference on 
Copper, 1438. 
INTERNATIONAL COPPER STUDY GROUP 
FINANCIAL STATEMENT 
1. Budget heading: B 7730 
Operations relating to industry 
(Non-differentiated appropriations) 
2. Legal basis: 
Articles 113 and 116 of the EEC Treaty. 
3. Proposed classification 
Not applicable. 
4. Description of the opération and grounds 
4.1. Objectives: International Copper Study Group 
4.2. Those concerned: copper producers and consumers 
5. Nature of expenditure and method of calculation 
Contribution to the annual budget of the Group in the form of a 
share equal to 50% of the budget (see paragraph 15 of the Terms 
of Reference). Assuming that the Study Group will have a 
membership of about 20 and that the budget should be some 
ECU 750 000, the calculation is as follows: 
(ECU 750 000 f 2) = 20 = ECU 18 750 or ECU 20 000 in round 
figures 
6. The operation's financial implications on running costs 
Approximately ECU 20 000 annually. 
7. Comments 
None. 
lk 
ISSN 0254-1475 
COM(90) 53 final 
DOCUMENTS 
EN 16 
Catalogue number : CB-CO-90-019-EN-C 
ISBN 92-77-56825-9 
Office for Official Publications of the European Communities 
L-2985 Luxembourg 
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