13.4.78 Official  Journal  of the European  Communities No C 90/11 
Proposal  for a Council  Regulation  on the application  of the provisions  of the Financial 
Protocols  concluded  with  Greece,  Turkey  and  Portugal 
(Submitted  by the Commission  to the Council  on 17 March  1978) 
THE  COUNCIL  OF  THE  EUROPEAN 
COMMUNITIES, 
Having  regard  to  the  Treaty  establishing  the 
European  Economic  Community,  and  in particular 
Article  209 thereof, 
Having  regard  to the proposal  from  the Commission, 
Having  regard  to the  opinion  of the  European 
Parliament, 
Whereas  the  Financial  Protocols,  which  constitute 
integral  parts  of the Agreements  with  Greece,  Turkey 
and Portugal,  and  are hereinafter  referred  to as the 
'Protocols',  have  fixed  the  aggregate  amount  of 
Community  aid to those  countries  at 280,  310  and 
230 million  units  of account  respectively,  comprising 
230 million  units  of account  in the form  of loans  on 
special  terms,  75 million  units  of account  in the form 
of grants  and  515  million  units  of account  in the form 
of loans  granted  by the  European  Investment  Bank 
from  its own  resources; 
"Whereas  the unit  of account  applicable  for purposes 
of the Protocols  was  defined  in a declaration  annexed 
to the said  Protocols; 
Whereas  the detailed  rules  for the administration  of 
the aid  not  covered  by the  Bank's  own  resources 
must  be laid  down; 
Whereas  provision  should  be made  to lay down  the 
rules  for the management  of financial  and  technical 
cooperation,  the  procedure  for  examining  and 
approving  aid and  the detailed  rules  for supervising 
the use of that  aid; 
Whereas  a Committee  of representatives  of the 
Member  States  should  be set up under  the auspices  of 
the Commission  for operations  directly  administered 
by the Commission; 
Whereas  it should  be stipulated  that  applications  for 
the financing  of operations  not  covered  from  the 
Bank's  own  resources  should  be submitted  for opinion 
to a Committee  of  representatives  of  the 
Governments  of the  Member  States  and  to the 
Commission, 
HAS  ADOPTED  THIS  REGULATION: 
Article  1 
The results  of financial  cooperation  with  Greece, 
Turkey  and  Portugal  may  be examined  within  the Association  Councils  and  the  Joint  Committee 
respectively  in accordance  with  Article  10 of the 
Financial  Protocol  with  Greece,  Article  13 of the 
Financial  Protocol  with  Turkey  and  Article  9 of the 
Financial  Protocol  with  Portugal. 
Article  2 
1. The  appropriations  for the financing  of aid not 
covered  from  the  Bank's  own  resources  shall  be 
administered  by the Commission,  in accordance  with 
the Financial  Regulation  of 21  December  1977 
applicable  to the  general  budget  of the  European 
Communities. 
2. The  Commission  shall  itself  administer  the 
grants  provided  for in Article  2 (6) of the Protocol 
with  Greece  for the purpose  of technical  assistance 
schemes  or projects. 
3. A  general  mandate  shall  be given  to the Bank 
by the Commission  in the name  of the Community  to 
administer  the interest  rate  subsidies  for loans  from 
its own  resources  in Greece  and  Portugal,  and  to 
administer  special  loans  in Greece  and Turkey. 
4. Operations  covered  by the mandate  established 
pursuant  to paragraph  3 shall  be undertaken  by the 
Bank  on behalf  and  at the risk  of the Community. 
The Bank  shall  act in accordance  with  the procedures 
laid down  by its Statute,  subject  to Articles  8 and 9 of 
this Regulation. 
The special  conditions  of the  mandate  —  in 
particular  the  provisions  concerning  movements  of 
funds  and  the  remuneration  for  executing  the 
mandate  — shall  be the  subject  of an agreement 
between  the Commission  and  the Bank. 
Article  3 
The unit  of account  used  for  the  purpose  of this 
Regulation  shall  be that  defined  in the Declaration  by 
the European  Economic  Community  relating  to 
Article  2 of the Protocols. 
Article  4 
Periodic  exchanges  of views  shall  be held  on the 
implementation  of financial  cooperation  with  Greece, 
Turkey  and  Portugal  in the Committee  provided  for 
in Article  8. These  exchanges  of views  shall  relate 
inter  alia  to the information  obtained  by the Bank 
from  the countries  concerned  regarding  the financing 
sought  and  to operations  which  the Bank  intends  to 
submit  for an opinion  in accordance  with  Articles  8 
and 9, 
No C 90/12 Official  Journal  of the European  Communities 13. 4. 78 
Periodic  exchanges  of views  shall  be held  on the 
technical  cooperation  projects  referred  to in Article  2 
(6) of the  Financial  Protocol  with  Greece  in the 
Committee  provided  for in Article  5. These  exchanges 
of views  shall  relate  inter  alia  to the  information 
obtained  by the Commission  from  Greece  regarding 
the financing  sought  and  to operations  which  the 
Commission  intends  to submit  for  an opinion  in 
accordance  with  Article  7. 
Article  5 
1. There  is hereby  established  under  the  auspices 
of the  Commission  a Committee  (hereinafter  called 
'the Article  5  Committee')  consisting  of 
representatives  of the Member  States. 
The Article  5 Committee  shall  be chaired  by a 
representative  of the Commission;  its secretariat  shall 
be provided  by the Commission. 
A representative  of the  Bank  shall  take  part  in its 
proceedings. 
2. The  Council,  acting  unanimously  on a proposal 
from  the  Commission,  shall  adopt  the  rules  of 
procedure  of the Article  5 Committee. 
3. Within  the Article  5 Committee,  the votes  of the 
Member  States  shall  be weighted  in accordance  with 
Article  148  (2) of the Treaty. 
The Article  5 Committee  shall  act by a majority  of 41 
votes. 
Article  6 
1. The  Article  5 Committee  shall  give  its opinion 
on draft  decisions  submitted  to it by the Commission 
to finance  technical  assistance  projects  or schemes  in 
Greece. 
2. The  Committee's  assessment  shall  relate  to the 
conformity  of the  projects  with  the  objectives  of 
technical  cooperation  laid  down  in the Protocol  with 
Greece. 
Article  7 
The draft  financing  proposals  referred  to in Article  6, 
together  with  the opinion  of the Article  5 Committee, 
shall  be submitted  to the Commission  for its decision. 
The Commission  shall  take  decisions  and  they  shall 
be immediately  applicable.  However,  should  the 
Committee  not  deliver  a favourable  opinion,  the 
Commission  shall  communicate  its decisions  to the 
Council  forthwith, In that  event,  the Commission  shall  defer  by not more 
than two  months  from  the  date  of  such 
communication  the  application  of the  decisions 
which  it has taken. 
The Council,  acting  by a qualified  majority,  may  take 
a different  decision  within  two  months. 
Article  8 
1. There  is hereby  established  under  the auspices  of 
the Bank  a committee  consisting  of a representative 
of each  Member  State  and  with  the participation  of a 
Commission  representative  (hereinafter  called  the 
'Article  8 Committee').  It shall  be chaired  by the 
representative  of the Member  State  currently  chairing 
the board  of the Governors  of the Bank.  Its secretariat 
shall  be provided  by the Bank. 
2. The  Council,  acting  unanimously,  shall  adopt 
the rules  of procedure  of the Article  8 Committee. 
Within  the  Article  8 Committee,  the  votes  of the 
Member  States  shall  be weighted  in accordance  with 
Article  148  of the  Treaty.  The  Article  8 Committee 
shall  act by a majority  of 41 votes. 
3. Applications  for  loans  with  an interest  rate 
subsidy  or special  loans  submitted  by the  Greek, 
Turkish  or Portuguese  Government,  or on which  such 
Government  has  expressed  a favourable  opinion, 
shall  be transmitted  by the Bank  to the Members  of 
the Committee  and  to  the  Commission, 
accompanied  by any  relevant  comments. 
An application  for  a loan  shall  be  considered 
acceptable  if the Bank  does  not receive  — within  two 
months  from  the  date  of transmission  of the 
application  — any  request  for  consultation  of the 
Committee  or from  one  of its members  or from  the 
Commission. 
If such  a request  is received,  the  Committee  shall 
examine  whether  the loan  application  is acceptable. 
Article  9 
1. The  assessment  by the Member  States  and  the 
Commission  shall  relate  to the  conformity  of the 
projects  with  the objectives  of financial  cooperation 
as laid  down  in the Protocols. 
2. Where,  in the case  of an application  for a loan 
with  an interest  rate  subsidy,  or for  financing  by 
13. 4. 78 Official  Journal  of the European  Communities No C 90/13 
special  loan,  the procedure  provided  for in Article  8 
results  in a tacit  agreement  or in a favourable  opinion 
from  the Committee  and  from  the Commission,  the 
application  shall  be submitted  for a decision  to the 
Board  of Directors  of the Bank,  which  shall  act in 
accordance  with  the provisions  of the Bank's  statute. 
In the absence  of favourable  opinion  from  the Article 
8 Committee  or in the  event  of an unfavourable 
opinion  from  the Commission,  the Bank  shall  either 
not take  any action  on the application  or request  that 
the Member  State  taking  the chair  of the Article  8 
Committee  bring  the  matter  before  the Council  as 
soon  as possible. 
3. Where,  in the absence  of a favourable  opinion 
from  the Article  8 Committee  or in the event  of an 
unfavourable  opinion  from  the  Commission,  the 
matter  is brought  before  the Council  in accordance 
with paragraph  2, the application  shall  be submitted 
to the Council  together  with  the reasoned  opinions 
of the Article  8 Committee  and  the Commission. 
The Council  shall  act  by  a qualified  majority. 
However,  in the event  of an unfavourable  opinion  of 
the Commission,  it shall  act unanimously. 
If the Council  decides  to confirm  the position  taken 
by the Article  8 Committee  or by the Commission, 
the Bank  shall  not take  any action  on the application. If, however,  the  Council  decides  in favour  of the 
application,  the Bank  shall  implement  the procedures 
provided  for in its statute. 
Article  10 
1. The  Commission  shall  ascertain  from  the Bank 
that the  mandate  laid  down  in Article  2 is being 
carried  out. 
2. It  shall  also  ascertain  how  grants,  which  it 
administers  directly,  are used  by the recipients. 
3. The  Commission  shall  inform  the Council  and 
the European  Parliament  at least  once  a year,  and  in 
addition  whenever  they  so request,  as regards  the 
implementation  of paragraphs  1 and 2. 
Article  11 
This  Regulation  shall  be applicable  for  the  same 
period  as the Protocols. 
This  Regulation  shall  be binding  in its entirety  and 
directly  applicable  in all Member  States. 
Proposal  for a Council  Regulation  amending  the Annex  to Regulation  (EEC)  No 804/68 
on the common  organization  of the market  in milk  and  milk  products 
(Submitted  by the Commission  to the Council  on 20 March  1978) 
THE  COUNCIL  OF  THE  EUROPEAN 
COMMUNITIES, 
Having  regard  to the Treaty  establishing  the European 
Economic  Community,  and  in particular  Article  43 
thereof, 
Having  regard  to the proposal  from  the Commission, 
Having  regard  to the  opinion  of the  European 
Parliament, products  (1), as last  amended  by Regulation  (EEC) 
No 2560/77  (2), provides  that  refunds  may  be granted 
to the extent  necessary  to enable  such  products  to be 
exported  either  in unprocessed  form,  or in the form 
of goods  listed  in the Annex; 
Whereas,  in view  of milk  product  prices  in 
international  trade,  provision  should  be made  for the 
granting  of refunds  to milk  products  incorporated  in 
goods  falling  within  heading  No  22.09  of the 
Common  Customs  Tariff,  so as to enable  industries 
exporting  such  goods  to use  milk  products  of 
Whereas  Article  17 (1) of Council  Regulation  (EEC) 
No 804/68  of 27  June  1968  on  the  common 
organization  of the  markets  in milk  and  milk (*) OJ No L 148,  28. 6. 1968,  p. 13. 
(*) OJ No L 303,  28. 11. 1977,  p. 1.