6. 6. 91 Official Journal of the European Communities NoC 147/15 
II 
(Preparatory Acts) 
COMMISSION 
Proposal for a Council Regulation (EEC) on an export earnings stabilization system for least-
developed countries in Asia and Latin America (ALA) 
(91/C 147/05) 
COM(91) 169 final 
(Submitted by the Commission on 23 May 1991) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Article 235 
thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European 
Parliament, 
Whereas in pursuance of the Community development 
cooperation policy it is desirable to give effect on certain 
conditions to an export earnings stabilization system for 
least-developed countries in Asia and Latin America 
(ALA); 
Whereas amongst the objectives that make up the 
importance and significance of development there is inter 
alia that of promoting the welfare and respecting the 
fundamental rights of the communities concerned; 
whereas it is therefore necessary to obtain the fullest 
guarantees that the system will operate to the benefit of 
those communities; 
Whereas for the purposes of implementation, the aims 
and outlines of the system should be established in a 
basic regulation; 
Whereas to ensure that the system attains its objectives it 
is necessary to provide that the countries concerned 
should benefit only if they undertake to abide by certain 
conditions; 
Whereas it is necessary to estimate the amount of 
Community funding needed to carry out the operation; 
whereas the appropriations available will be determined 
as part of the budget procedure in compliance with the1 
financial perspective attached to the Interinstitutional 
Agreement of 29 June 1988 (»); 
(') OJ No L 185, 15. 7. 1988, p. 33. Whereas in exercising its implementing powers the 
Commission should be assisted by an advisory committee 
consisting of representatives of the Member States; 
Whereas the Treaty has not provided the necessary 
powers other than those of Article 235, 
HAS ADOPTED THIS REGULATION: 
TITLE I 
Objectives and general provisions 
Article 1 
1. As part of its policy for cooperation with 
developing countries, the Community shall set up an 
export earnings stabilization system for certain ALA 
countries classed by the United Nations among the least-
developed countries (LLDCs). The list of beneficiary 
countries shall be adopted in accordance with the 
procedure set out in Article 6 (2). 
2. The system shall cover the period from 1991 to 
2000; the first transfers shall be made from 1992 
onwards and the last in 2001. 
Article 2 
1. The aim of the system referred to in Article 1 shall 
be to help stabilize the earnings of the countries 
concerned from exports to the Community of products 
on which their economies are dependent, which are 
affected by fluctuations in price or quantity or both. 
2. The list of products concerned shall be adopted in 
accordance with the procedure set out in Article 6 (2). 
No C 147/16 Official Journal of the European Communities 6. 6. 91 
3. The system referred to in paragraph 1 shall help 
stabilize export earnings by means of non-repayable 
transfers of financial resources, hereinafter referred to as 
'transfers'. 
4. In order to attain the objectives set, transfers shall 
be devoted, in accordance with a framework of mutual 
obligations to be agreed between the recipient country 
and the Commission in each case, either to the sector, 
interpreted in the widest possible sense, that recorded the 
drop in export earnings and be used there for the benefit 
of economic operators adversely affected by this drop, 
or, where appropriate, directed towards diversification, 
either for use in other agricultural productive sectors, or 
for the processing of agricultural products. 
Article 3 
The system shall apply to earnings derived from imports 
into the Community of each of the products referred to 
in Article 2 (2), originating in one of the beneficiary 
countries. 
TITLE II 
Funding and financial management 
Article 4 
1. The estimated amount of Community expenditure 
needed to fund the operation set up by this Regulation is 
ECU 90 million for the five-year period from the 1992 
financial year to the 1996 financial year. 
2. The budget authority shall determine the appropri­
ations available for each financial year. 
3. The estimated amount needed for the second 
five-year period from the 1997 financial year to the 2001 
financial year shall be decided in 1996 on the basis of an 
evaluation of the operation of the system during the first 
five years. TITLE III 
Rules and procedures for implementation 
Article 5 
The implementing rules concerning the matters referred 
to in Articles 1 (1) and 2 (2) shall be adopted in 
accordance with the procedure set out in Article 6. 
Article 6 
1. The Commission shall be assisted by an advisory 
committee consisting of representatives of the Member 
States, with a Commission representative in the chair, 
called the 'ALA Stabex Committee'. 
2. The Commission representative shall put before the 
committee the draft measures to be adopted. The 
committee shall deliver its opinion on the draft measures, 
by vote if necessary, within a period which the chairman 
may determine in the light of the urgency of the matter 
under consideration. 
The opinion shall be entered in the minutes; in addition, 
each Member State shall have the right to request that its 
position be entered in the minutes. 
The Commission shall take the fullest account of the 
opinion delivered by the committee. It shall inform the 
committee on the way in which it has done so. 
Article 7 
The Commission shall report annually to Parliament and 
the Council on the administration of the system during 
the preceding year. 
Article 8 
This Regulation shall enter into force on 1 January 1992. 
This Regulation shall be binding in its entirety and 
directly applicable in all Member States. 
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