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COM (84) 017 
 
 
 
Vol. 1984/0 004 
  
 
Disclaimer  
Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the opening to the public of the historical archives of the European Econom ic 
Communit y and the European Atom ic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), t his file is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februa r 1983 über die Freigabe der historischen Archive der Europäischen  
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983,  
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003  
(ABI. L 243 v om 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit  
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5  
der genannten Verordnung freigegeben.  
COMMISSION OF THE EUROPEAN COMMUNITIES
C O M (8 4 ) 1 7  final 
Brussels, 2 3  January 1 9 8 4
R E P O R T  F R O M  T H E  C O M M I S S I O N  T O  T H E  C O U N C I L  
o n  the administration of financial and technical cooperation in 1 9 8 1  and 
1 9 8 2  pursuant to Decision 80/1186/E E C  o n  the association of overseas coun­
tries and territories
C O M (8 4 ) 1 7  final

- 1 -
INTRODUCTION
This Commission report prepared in conjunction with the European Invest­
ment Bank (for the sections concerning the Bank) is the first to be 
presented by the Commission pursuant to Article 100 of Decision 80/1186/EEC 
on the association of overseas countries and territories with the Euro­
pean Economic Community. The report, which, under the terms of the Decision 
should be drawn up annually, aims chiefly to give an account of the 
situation with regard to the commitment, implementation and utilization of 
aid. This report, however, covers the two years 1981 and 1982.
The reason is that the situation at 31 December 1981 regarding the implemen­
tation of aid, and in particular of the resources committed (6.73 million 
ECU committed during the year, of which 5.10 million ECU under Stabex for 
Vanuatu and Saint Vincent, two countries in receipt of the OCT Stabex 
allocation despite having acceded to the Lome Convention), did not, in 
the Commission's view, warrant the preparation of a report for that year 
alone. This is a very similar situation to that which arose in the case 
of the earlier Decision where only one report was produced for the years 
1976, 1977 and 1978, together.
The Decision on the association of OCT entered into force at the same time 
as the second Lome Convention, i.e. on 1 January 1981. There are, moreover, 
deep similarities between the Convention and the Decision to the extent 
that the aim in both cases was to establish a new model governing 
relations between developed and developing regions and the basic provisions 
of the two texts are very similar.
2There is, however, as has been stated previously ,  a real difference m  
kind between the Convention and the Decision, since the former is a 
contractual agreement between the Community, its Member States and other 
sovereign States which embodies a specific institutional structure. In 
the case of the Decision on the association of OCT, notwithstanding the 
various references (Article 79 for example) to the (decentralized?) 
"authorities of the countries and territories", the responsibility for 
implementing the Decision falls exclusively to the Community and the 
Member States.
1
2OJ L 361, 31 Deecember 1980 
See Report concerning 1980, p. 2.

-  2 "
Another feature of the evolution of the OCT has been the gradual 
shrinkage in their number, from 27 in 1976 to only 18 at the end of 1980^.
This trend continued in 1981-82 with Belize and Antigua gaining independence 
and subsequently, by acceding to the Lome Convention, joining the ranks 
of the ACP States (the latter country under the name of Antigua and Barbuda).
These changes have naturally resulted in a change in the financial allocation, 
provided for under Article 83 of the Decision, the most recent adjustment 
of which was approved by the Council in July 1983.
Initial allocation (million ECU) Current allocation
Grants 51 39,3
Special loans 27 20,5
Risk capital 7 7
Stabex 9 9
Total EDF 94 75,8
Normal EIB loans 15 15
109 90,8
The Decision (Article 83(3)) lays down that the sums earmarked for grants 
and special loans (less the allocations for regional cooperation and 
emergency aid) shall be divided into three equal parts of 20 million ECU 
each for the French overseas territories, the Netherlands Antilles and 
the United Kingdom overseas countries and territories.
Following the changes made to the overall amounts of the grants and loans, 
their current breakdown is as follows (less the allocations for regional 
cooperation and emergency aid):
Annex I to the Decision of 16 December 1980.

- 3 -
French overseas territories 18 million ECU^
Netherlands Antilles 20 million ECU
United Kingdom overseas countries
and territories 5.3 million ECU
The breakdown of these allocations for the French and United Kingdom 
overseas countries and territories is as follows:
French territories (million ECU)
Grants Special loans Total
Mayotte 1,25 1,25 2,50
New Caledonia 3,25 3,75 7,00
French Polynesia 3,00 3,00 6,00
Wallis and Futuna 2,50 - 2,50
10,00 8,00 18,00
United Kingdom countries and territories
Grants Special loans Total
Anguilla 0,40 - 0,40
Saint Kitts-Nevis 1,70 0,50 2,20
Cayman Islands - 0,50 0,50
Falkland Islands 0,05 - 0,05
Turks and Caicos Islands 0,50 - 0,50
British Virgin Islands - 0,50 0,50
Montserrat 0,70 - 0,70
Saint Helena 0,45 ~ 0)45
3,80 1,50 5,30
1At the programming stage, the French and United Kingdom authorities 
had set aside the sums of 2 million ECU and 2.5 million ECU respectively 
for the condomium of the New Hebrides.

- 4 -
The Programming Committee, which met on 2 December 1982, adopted the 
indicative programmes for New Caledonia, Wallis and Futuna, Anguilla, 
the Falkland Islands, the British Virgin Islands, Montserrat and the 
Turks and Caicos Islands. It was agreed on that occasion that the 
indicative programmes for territories not yet examined by the Committee, 
i.e. the Cayman Islands, Saint Kitts - Nevis, Saint Helena, Mayotte and 
French Polynesia, would be submitted for the Member States' approval 
by written procedure.

- 5 -
CHAPTER I: FINANCIAL AID
1. Commitments
The commitments made by the Commission and the Bank during the first two 
years of application of the 1980 Decision in respect of the OCT totalled 
16.63 million ECU, i.e. 18% of the modified total allocation of 90.8 
million ECU. This percentage is roughly half that achieved in the case 
of the Lome Convention which, for the same two-year period, recorded 
commitments totalling 1 792 million ECU, or 34% of the allocation of 
5 322 million ECU. The figure concerned is also distinctly below the 
corresponding figure in 1980 (28.5 million ECU) in connection with the 
implementation of the 1976 Decision on the association of OCT·*·.
Aid administered by the Commission
The sum total of commitments made in 1981 and 1982 in respect of aid 
administered by the Commission was almost 11 million ECU. The breakdown 
of these commitments is as follows:
million ECU %
Grants (including emergency aid
of 380.000 ECU) 5,03 45,8
Special loans 0,50 4,6
Stabex 5,44 49,6
10,97 100,0
Aid administered by the EIB
Since the entry into force of the 1980 Decision on the association of 
OCT, the Bank has accorded a total of 4.84 million ECU for the financing 
of three operations. Taking into account interest rate subsidies from 
EDF resources, the total sum amounts to 5.66 million ECU.
1At 31 December 1982 only 75% of the 1976 allocation had been committed.

-  6 -
million ECU %
Loan from own resources 3.00 53
Risk capital
Interest rate subsidies1.84 32.5
0.82 14.5
5.66 100.0
2. Payments
Payments made in 1981 and 1982 by the Commission and the Bank under the 
1980 Decision amounted to 8.63 million ECU, which represents a remarkable 
percentage in relation to commitments (52%). This satisfactory situation 
is, however, tempered by two particular constraints:
(i) over half those payments (5.4 million ECU) consist of Stabex 
transfers which are disbursed very quickly following their approval;
(ii) the recipient countries (Vanuatu and Saint Vincent), since their 
accession to the Lome Convention, have legally ceased to be OCT and 
become ACP States, even though they continue to receive the OCT 
Stabex allocation.
Within the context of aid that is disbursed swiftly, the sum of 380.000 
ECU in respect of emergency aid must be taken into account.
The breakdown of payments is as follows:

- 7  -
Payments made from resources administered by the Commission:^
'000 ECU
French OCT 179
Netherlands OCT 285
United Kingdom OCT 1 243 (of which 380
emergency aid)
Vanuatu 4 528 (Stabex)
Saint Vincent 913 (Stabex)
7  148
1Payments made from resources administered by the EIB
United Kingdom OCT 1 300 Ordinary loan
French OCT 180 Risk capital
1 480
CHAPTER II: SECTORAL BREAKDOWN OF FINANCIAL AID
1. Projects and programmes
Since 1981 was devoted mainly to preparing the way for implementing the
association Decision of 31 December 1980, the commitments made over this
2period primarily concerned Stabex .  In the case of projects, the sole 
large commitment (1 million ECU) involved the industrialization sector,
1The total payments made by the Commission and the Bank during 1981 
and 1982 work out higher if account is also taken of the payments made 
under the earlier Decision (1976), which amount to 19.04 million ECU 
for the Commission and 5.60 million ECU for the Bank respectively.
2see p. 10

-  8 -
consisting of a global loan in the form of risk capital accorded by the 
EIB to the Société Immobilière et de Credit of New Caledonia (SICNC) for 
the purpose of helping to finance small and medium-sized industrial and 
tourist undertakings. With respect to 1981, a technical assistance 
allocation of 430 000 ECU for economic services in the Netherlands Antilles 
was made, plus two allocations of 100 000 ECU to the French and United 
Kingdom OCT for training courses (study awards).
In 1982 the leading sector by far was production development (including 
industrialization and rural production), which accounted for 6.73 million 
ECU, representing 68% of the commitments made during that year.
In the case of industrialization, a loan from the Bank's own resources 
of 3 million ECU (plus an interest rate subsidy of 820 000 ECU from EDF 
resources) was made to the Cayman Islands. The purpose of this loan was 
to finance the installation of two diesel generating-sets with a unit 
output of 4.25 MW which were required in order to meet the increased 
demand resulting from tourism development. The Bank provided the Netherlands 
Antilles with 840 000 ECU in the form of risk capital in order to enable 
the Government to increase its participation in the capital of the local 
financing body set up in order to diversify economic activity, which is 
still highly dependent on imported petroleum refining. The Commission 
financed two operations with the respective aims of providing technical 
and financial support for small and medium-sized undertakings and 
formulating an industrial development policy.
In the case of rural production, financial aid totalling 1.37 million ECU 
was accorded to New Caledonia for projects involving Melanesian fresh 
water shrimp culture in Melanesian-inhabited areas, a track to service 
small coffee plantations and livestock health survey, the general aim 
of which is to determine the health of the territory's cattle, pig and 
poultry livestock population.

- 9 -
Economie infrastructure received the second largest allocation of 
sectoral aid amounting to 1.55 million ECU, of which the largest single 
allocation totalled 1.2 million ECU for the Mata-Utu quay in Wallis and 
Futuna. The remaining aid was used to finance studies relating to the 
Netherlands Antilles and the Turks and Caicos Islands.
In the social development sector, commitments totalled 650 000 ECU in 
1982. The largest of the projects was a water supply scheme in the 
British Virgin Islands totalling 500 000 ECU. The scheme, which was 
a continuation of a similar project undertaken under the fourth EDF,  
answered a priority need in terms of improving the living conditions 
of the local population by furthering the development of the country's 
tourist industry. Financial aid in the social sphere was also allocated 
for a training scheme in the Netherlands Antilles (145 000 ECU).
The Netherlands Antilles received aid for trade promotion totalling 
145 000 ECU.
Under Article 117 of the Council Decision of 16 December 1980, the 
Commission approved a United Kingdom Government request for emergency 
aid for the Falkland Islands, the aid being considered justified on 
urgent humanitarian grounds. The sum of 300 000 ECU financed the 
purchase of medical supplies and temporary accommodation for the civilian 
population.
The flood-stricken island of Montserrat received emergency aid totalling 
80 000 ECU in 1982 for the repair of damage to its economic infrastructure.

-  10 -
2· Stabex
Stabex does not strictly fall within the heading of financial and 
technical cooperation. However, as in the case of projects and programmes, 
Stabex transfers benefit the economies of the countries concerned and 
are an integral part of the overall financial assistance which they receive. 
This approach, which tends towards an overall view of the entire range 
of financial aid flows, is also the approach adopted by the OECD Development 
Assistance Committee (DAC).
This approach is particularly justified since, under the two years in 
question and particularly in 1982, Stabex transfers amounted to a third 
of the total amount of financial aid approved (5.44 million ECU out of a 
total of 16.63 million ECU).
Another feature of the Stabex transfers made in 1981 and 1982 in respect 
of financial years 1980 and 1981 is that they involved OCT which, on 
gaining independence, have subsequently joined the ranks of the ACP States 
under the Lome Convention. The countries in question were Vanuatu (formerly 
the Anglo-French Condomium of the New Hebrides) and Saint Vincent and the 
Grenadines. The 1979 Internal Agreement concerning the financing and 
administration of Community aid (Article 1(4) and (5)) provides that a 
country or territory which, having gained independence, accedes to the 
Convention shall continue to receive the OCT Stabex allocation.
Stabex has continued to function satisfactorily in the overseas countries 
and territories.
The overall results of the first year of application (1980) of the Decision 
are as follows:
ACP
Saint Vincent^ Bananas 913 286 ECU
Vanuatu Copra products 3 776 616 ECU
Vanuatu Cocoa beans 410 207 ECU
5 100 109 ECU
By Commission Decision of 28 October 1980, an advance of 700 000 ECU on 
the final transfer was accorded to Saint Vincent and the Grenadines 
following the destruction of the banana crop by hurricane Allen.

-  11  -
The two states concerned received non-repayable transfers. Hence, all 
transfers made in respect of 1980 took the form of grants.
The three transfers offset the fall in earnings resulting from local 
circumstances.
The breakdown of the Stabex allocation to the OCT is as follows for year 
of application 1980:
Annual instalment 1 800 000 ECU
1980 replenishment
Carryforward of half of the balance outstanding 
on the expiry of the Council Decision of 
19 June 1976 on the association of OCT with 
the EEC (Council Decision 80/679 of 15-16
December 1980) 4 587 997 ECU
Total available 6 387 997 ECU
Sum total of transfers - 5 100 109 ECU
Unexpended balance 1 287 888 ECU
For year of application 1981, the following transfer was made following 
a fall in the price of the product concerned:
Vanuatu Cocoa beans 341 412 ECU
In this connection, it should be noted that the transfer was made in 
full, since the problem of a shortage of resources did not arise in the 
case of the allocation earmarked for OCT.

CONCLUSION
The implementation in 1981 and 1982 of the Decision on the association  
of overseas countries and territories involved what may be considered  
excessive delays. Programming naturally took some time, which is not  
unusual.
However, the process of implementation from the selection and finalization  
of projects through to their implementation in situ appears to have been  
very long, longer at any rate than in the case of the ACP States under  
the Lome Convention. The figures show this to be the case. This being so,  
a greater decentralization of implementating power in favour of the local  
authorities in the countries and territories, enabling them to have more  
direct relations with the Commission departments responsible for administra  
tion could possibly speed up the implementation of cooperation without  
prejudice to its quality.-  12 -

Table 1
BREAKDOWN OF FINANCING DECISIONS TAKEN IN 1981 AND 1982 IN FAVOUR OF O.C.T. (EPF AND EIB)
(in million Ecus)
1981 1982
Indus- 
t ri a l  i  - 
sat i  onSoc i  al 
deve­
lopmentStabexOtherTotalIndus­
triali­
sationRural
pro­
duc­
tionEcono­
mi c
infra- 
st ruc- 
tureSoci al 
deve­
lopmentT rade 
promo­
tionEmer­
gency
aidStabexTotalGeneral
Total
1981/82
Mayotte 
New-Caledoni a 
French Polynesia 
[French Antartic 
(Territories 
Wallis 8 Futuna 
[The Netherlands 
[Ant i  l  les 
Brunei
Cayman Islands 
Caribbean 
Falkland 
Montserrat 
Pitcai rn 
St Helena 
[British Antartic 
[Territories 
[British Indian 
[Ocean Territ. 
Turks 8 Caicos 
Virgin Islands 
Vanuatu (*)
St Vincent (*)1,00
4,19
0,910,431,00
0,43
4,19
0,911,54
3,821,37
1,20
0,30 0,15
0,050,15
0,500,30
0,08
0,341,37
1,20
2,14
3,82
0,30
0,08
0,05
0,50
0,342,37
1,20
2,57
3,82
0,30
0,08
0,05
0,50
4,53
0,91
All territories :  
PTOM (F)
(UK)0,10
0,100,10
0,100,10
0,10
Regional interv. 0,10 0,100,10
TOTAL : 1,00 0,205,100,436,735,361,371,55 0,650,250,380,34 9,9016,63
of which :
Grants
Stabex
Special loans 
EIB loans 
Risk capital 1,000,20
5,100,430,63
5,10
1,001,52
3,00
0,841,371,55 0,15
0,500,250,38
0,345,22
0,34
U,5U
3,00
0,845,85
5,44
0,50
3,00
1,84
(*) Vanuatu (previously New Hebrides) and St. Vincent having acceded to the Lomé II Convention still continue to benefit from the 
OCT/Stabex allocation.

TABLE 2
FINANCING SITUATION AT 31 DECEMBER 1982, BROKEN DOWN BY METHOD OF FINANCING AND ADMINISTRATIVE BODY
(million ECU)
Commitments made at end 1982
AllocationAid administered  
by the CommissionAid administered  
by the EIBTotal
Amount %Amount %Amount % Amount %
EDF resources 75.80 83510.97 100 2.66 47.0 13.63 82.0
Grants
(of which interest rate  
subsidies,  
emergency aid)30.30 433 5.03
(0.38)45.8
(3.5)0.82
(0.82)14.5 5.85
(0.82)
(0.38)35.2
(4.9)
(2.3)
Special loans 20.50 226 0.50 4.6 0.50 3.0
Risk capital 7.00 77 1.84 32.5 1.84 11.1
Stabex 9.00 99 5.44 49.6 5.44 32.7
EIB resources 15.00 165 3.00 53.0 3.00 18.0
Loans from own resources 15.00 165 3.00 53.0 3.00 18.0
Total 90.80 100 10.97 100 5.66 100 16.63 100

TABLE 3
SUMMARY STATEMENT BROKEN DOWN BY % PER SECTOR, METHOD FOR FINANCING AND ADMINISTRATIVE BODY AT END 1982
(million ECU)
Production development Economic
infra­
structureSocial
develop­
mentTradeMisc­
ellan­
eousTotal Emer- Stabex Grand
total
Industry Rural
prod­
uctionTotalprom­
otionpro-
gramm
able
aidgency
aid
(1) (2) (3) (4) (5)(l)to(5) (6) (7)(l)to(7)
I. Aid administered by the  
Commission
- Programmable grants
- Special loans  
'- Emergency aid
- Stabex0.70 1.372.07 1.55 0.35
0.500.250.434.65
0.50
0.38
5.444.65
0.50
0.38
5.44
Total 0.70 1.372.07 1.55 0.85 0.250.43 5.15 0.385.44 10.97
Breakdown of total in % 6.4 12.518.9 14.1 7.7 2.33.946.9 3.549.6 100%
II. Aid administered by  
the EIB
- Loans from own  
resources
- Interest rate  
subsidies
- Risk capital3.00
0.82
1.843.00
0.82
1.843.00
0.82
1.843.00
0.82
1.84
Total 5.66 5.66 5.66 5.66
III. Grand total 6.36 1.377.73 1.55 0.85 0.250.4310.81 0.385.44 16.63
Breakdown in % 38.3 8.246.5 9.3 5.1 1.52.665.0 2.332.7 100%