ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(81)141
Vol.1981/0036

Disclaimer
Conformément aurèglement (CEE,Euratom) n°354/83duConseildu1erfévrier1983
concernant l'ouverture aupublicdesarchiveshistoriques delaCommunauté économique
européenne etdelaCommunauté européenne del'énergieatomique(JOL43du15.2.1983,
p.1),telquemodifiéparlerèglement (CE,Euratom) n°1700/2003 du22septembre 2003
(JOL243du27.9.2003, p.1),cedossierestouvertaupublic.Lecaséchéant,lesdocuments
classifiésprésentsdanscedossierontétédéclassifiés conformément àl'article5dudit
règlement.
Inaccordance withCouncilRegulation (EEC,Euratom) No354/83of1February 1983
concerning theopeningtothepublicofthehistoricalarchivesoftheEuropean Economic
Community andtheEuropean AtomicEnergyCommunity (OJL43,15.2.1983, p.1),as
amended byRegulation (EC,Euratom) No1700/2003 of22September 2003(OJL243,
27.9.2003, p.1),thisfileisopentothepublic.Wherenecessary, classifieddocuments inthis
filehavebeendeclassified inconformity withArticle5oftheaforementioned regulation.
InÜbereinstimmung mitderVerordnung (EWG,Euratom) Nr.354/83desRatesvom1.
Februar 1983überdieFreigabe derhistorischen Archive derEuropäischen
Wirtschaftsgemeinschaft undderEuropäischen Atomgemeinschaft (ABI.L43vom15.2.1983,
S.1),geändertdurchdieVerordnung (EG,Euratom) Nr.1700/2003 vom22.September 2003
(ABI.L243vom27.9.2003, S.1),istdieseDateiderÖffentlichkeit zugänglich. Soweit
erforderlich, wurdendieVerschlusssachen indieserDateiinÜbereinstimmung mitArtikel5
dergenannten Verordnung freigegeben.

COMMISSION OFTHEEUROPEAN COMMUNITIES
GENERALBUDGET-FINANCIAL YEAR1981 COM(81)141final
SECTIONIII-COMMISSION
Brussels-23rdMarch1981
/
TRANSFER OFAPPROPRIATIONS No3/81
(non-compulsory expenditure )
f-!..%
x:y
\ '
C0M(81)141final

Ο&λλΛ4Α
GENERAL BUEGET -FINANCIAL YEAR 1981
SECTION III (COMMISSION )
TRANSFER OFAPPROPRIATIONS No3/81
(non-compul sory expenditure )
FROM CHAPTER 100 PROVISIONAL APPROPRIATIONS
Line 10–Article 206
TOCHAPTER 20 IMMOVABLE PROPERTY INVESTMENTS ,
RENTAL OFBUILDINGS AND
ASSOCIATED EXPENSES
Article 207 Construction orbuildings
526000ECU
TheFinancial Controller endorsed this proposal inaccordance with Article 21(4 )
oftheFinancial Regulation ,certifying that theappropriations areavailable ,
on17February 1981 .

GROUNDS
1.InOctober 1979 "theCouncilapproved theprinciple ofaCommission
Etelegation beingopened ,inCanberra ,Australia .InJuly1980,whenboth
the1980budgetandthememorandum ofagreement betweentheCommission and
theAustralian Government hadbeensigned,thelocalauthorities anda
numberofembassies assisted investigations intothequestion ofsiting
theDelegation .
(a)TheDepartment oftheCapitalTerritory exercisesstrictplanningcontrol
overCanberra :thenational institutions andgovernment departments are
sitedinwhatiscommonly knownasthe"parliamentary triangle",the
south-west extension ofwhichisreserved fordiplomatic missions which
maynot,underanycircumstances ,belocatedintheresidential areas.
(b)Chancelleries may,however,besituatedinbusinessareasalthoughthis
hasbeendifficult asCanberra wasplannedasanadministrative cityof
25000inhabitants .Theeconomicdifficulties whichhavesincearisen
havedelayedthedevelopment oftheseareas,thoughrentsandproperty
priceshaverisensharplyasaresultofrecentgovernment decisions :
aimedatstimulating economicactivity .
(c)SincetheFederalGovernment hasonlyrecentlydroppeditspolicyof
reserving almostallthedwelling houses(generally inthesuburbs)
foritsownemployees ,housesarenotavailable exceptintheveryrare
caseswhere ,civilservants onatwo-orthree-year posting moveon."
Nevertheless ,thecommissioning ofanewdevelopment programme hasgiven
risetoaspeculative marketonwhichsmallprefabricated housesare
beingofferedforsaleatexorbitant prices. ^
2.Noneofthebuildings visited wassuitable fortheCommission Delegation .
Themostadvancedbuildingprojects wouldnotbecompleteduntil1982.With
theassistance ofthelocalauthorities ,theCommission succeeded inrenting
anareaofsome1100sqminasmallbuilding underconstruction whichhad
originally beenintended forbusiness use.Itshouldbefinished atthe
endofFebruary 1981.Theleaserunsforfiveyearsfrom1March198land
theposition withregardtotheofficesisnowsettledforthetimebeing.
TheHeadofDelegation mustbeprovided witharesidence ,butwemustavoid
rentingavastpropertyataprohibitive priceandhavingtodoaconsiderable
amountofworkonit.
3..TheAustralian Government usuallyprovides diplomatic missions inCanberra
withplotsoflandonaninety-nine yearlease,themissionbeingobligedto
builditsChancellery ortheresidence ofitsHeadofDelegation orbothon
thatsitewithin18monthstothreeyears.Themissionisalsoresponsible
forlayingoutandmaintaining thegardens.

OfthetenMember States ,Belgium ,France ,Germany andItaly already have
large areas onwhich both chancellery andresidence aresited ,andGreece
hasjust acquired aplot .TheDepartment ofForeign Affairs andtheembassies
oftheMember States agree that ,even intheshort term ,this isthemost
economic solution .
TheAustralian Government has informed the diplomatic missions sited inthe
residential zones oftheAustralian Capital Territory (ACT)that they are
inbreach ofregulations andwill notbeallowed toremain after 19^7 -
This affects ,inter alia ,Denmark .
4°Forthe sake ofefficiency ,theDelegation oftheCommission andthe
residence should besited inone ofthe areas close tothe embassies and
theparliamentary triangle .Land inthat area isatapremium because
thenewAustralian Parliament buildings will bebuilt there before 1990 .
TheCommission took advantage oftheAustralian Government 'soffer ofa
7553sqmplot atanannual rent ofabout S>A6000 (about 5400ECU )subject
toreview evei-y twenty years .This ,area issimilar tothat occupied bythe
Netherlands ,smaller than those ofIreland andGreece ,about half thesize
ofthat rented byGermany and .aquarter ofthesize ofthose occupied by
France andBelgium .
5.TheCommission 'sfirst obligation istohave abuilding constructed within
eighteen months ofsigning thelease .Inview ofthedifficult anduncertain
nature oftherented market inCanberra ,theCommission intends 'tobuild
both offices andaresidence forthe .Hea.dofDelegation .Oneofthelargest
Australian "building ,firms hasprepared studies which show that :
(a)abuilding of1100sqmfortheDelegation ^rould costpi650000
(584000ECUatDecember 19S0rates );
(b)abuilding with 550sqmofliving space would cost$A538000
,(483000ECUatDecember 198O rates )including -preparation oftheland .
Theannexed comparison between renting andbuilding COSTS shows that the
investment would beamortized inunder five years from thecompletion of
construction inthecase oftheoffices andinunder sixyears inthecase
oftheresidence .These periods aretobeextended bytwoyears iftheloss
ofinterest onthemoney spent isincluded .
/
TheCommission will ,inanyevent ,continue itsefforts tofind themost
advantageous solution .

-3-
6.SinceofficespacefortheDelegation hasbeensecureduntilFebruary 1986,
theCommission proposestobuildaresidence fortheHeadoftheDelegation
in1981.Thisshouldtakeeightmonths.In19^3,itwillbeginworkonthe
buildingtohousetheDelegation offices.
SinceatChapter100ofthebudgetfor1981thereisaprovisional appropriation "
of1500000ECUforthepurchase ofbuilding landorbuildings ,theCommission
proposesthatthebudgetary authority authorize' thetransferof526000ECUtoArticle207(construction ofbuildings),whichatpresenthasonlyatoken
entry.

Comparative costsofrentingand,building (inECU)
I.Residence
Costofrent^Totalbuilding costs
Year Expenditure Cumulâtive
cumulâtive
total„Conraound grand
totalperyearperyear cumulâtive
totalinterest
!
1981 ! 75000ï
500 I75000606400(3)606400 34541 640941
1982!'
' 82 157500 5400 611800 63549 709890
■19831' 90700 !
I248200 5400 617200 60721 776011
:1984- 99800!348000 5400 622600 56343 837754
1985 !:109800I457.800 5400 628000 50096 893250
1986 '120800!578600 5400 633400 40006 938656
1987 '132800
I711400 5400 638800 24428 963484
1988 146000 857400 5400 644200 12230 986114
1989 160600;1018000 5400 649600 -2781 988733
1Assuming thatrentsriseby10%peryear.
•¿Assuming anotional lossofinterest atthefollowing rates:
12.5%in1986and10.5#fromI987.13%to1985,
Breakdown :Rentfortheresidence
Groundrent
Building costs
Approaches5400
362000
16400075000
531400
606400
Buildingcostsarebasedon109%ofDecember I98Oprices.

Comparative costsofrentingand"building (inECU)
II#Delegation
YearCostofrent^Total2
"building costs
■Expenditure (includingCompound ,
interestCumulative
peryearrem 1
CUE
tulative .
otalperyearcumulâtive
total^ra.
totU.U.
ai
1981 Ί31500 1131500 131500 131
263
584500
21320131500
1982 131500 263000"131500 000 263000
1983 157800 420800 321800 800- 606120
1984J|157800,578600 515300 1100100 70566 1191986
1985!'
'157800 736400 515300 1615400 126215 1833501
1986 .189400 925800 - 1615400 113462 1946963
1987·!;189400 1115200 - 1615400 87335'.2034298
1988 1189400 1304600 :- 1615400 -76618 2110916
1989·Í227000 1531600 - 1615400 60828 2171'.'4U
1990|.227000 1758600 1615400 43380 22151?4
1991!'
I227000.1985600 1615400 24100 2239224
1992 ;
•272000 2257600 ·* 1615400-1929 2237295
►
Assumingarentincreaseof20$afterthefirsttwoyearsandof20$every
threeyearsfrom1983» -
^Buildingcosts "basedonDecember1980prices(584000ECU)plus12$
peryearuntil1983and9$in1984*Payment:20$(164000ECU)in1983,
40$(357000ECU)eachin1984and1985- -
^Assuminganotionallossofinterestatthefollowingrates:13$to1985,
12.5$in1986and10.5$from1987.

-3- ANNEX .(cont}
:1981
i
'1982
1984
1985
1986
1987Calculation ofcorrraound interest
I.Residence
531400χ0,13χ0,5=
46?090+60721+5400
!'v
433411+56343+54001982 531400+34541+5400-82500=
1983488841+63549+5400-90700=
1984 46?090+60721+5400-99800=
1985433411+56343+5400-109800 <
1986385354+50096+5400-120800
- ! . ■■
t
1987'320050+40006+5400-132800
h •
1988232656+24428+5400-146000
;. ■ j• ■
1989116484+12230+5400-160600488841
χ0*130=
467090
χ0.130=
433411
χ0.130=
=385354
χ0.130
=320050
χ0.125
=232656
χ0.105
=116484
χ0.105
=-26486
χ0,105
TotalinterestECU,
34541
63549
60721
56343
50096
40006
24428
12230
-2781
339133
II.Delegation
1981
1982
1983
1984
l
1985
1986
1987
1988
;1989
I
j
1990
i
'1991
1992(zero)
(zero)
164000x
164000+0,130
21320+357500
542820+70566+357500=
970886+126215-189400=
907701+113462-189400=
831763+87335-189400=
729698+76618-227000=
1I '
579316+60828-227000=
413144+
229524+43380"227000=
24100-272000=542820
χ0,130
970886
χ-0.130
907701
χ0.125·
831763
χ0.105
729698
χ0.105
579316
χ0.105
413144
χ.0.105
229524
χ0·;105
-18376
χ0,10521320
705*6
126215
113462
87335
76613
60828
43380
24100
-19^9
621895