3.8.91 Official Journal of the European Communities No C 204/5 
alpha acid content of these products is not lower than 
that of the hops they have been prepared from.' 
4. The last subparagraph of Article 7 (3) (b) shall be 
replaced by the following: 
Tt shall be possible for a group or union to authorize 
its members to market all or a part of their produce 
themselves in accordance with rules laid down and 
supervised by the group or union;' 
5. The following subparagraph shall be added to Article 
12(5): 
'(c) The amount of aid to be fixed may be lower in 
the case of those producers who do not belong to 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Whereas, under Regulations (EEC) No 2340/90 (') and 
(EEC) No 3155/90 (2), both as last amended by Regu­
lation (EEC) No 1194/91 (3), the Community has taken 
measures to prevent trade by the Community as regards 
Iraq; 
Whereas as a consequence of the embargo against Iraq 
economic operators in the Community and third 
countries are exposed to the risk of claims by the Iraqi 
side; 
Whereas it is necessary to protect operators against such 
claims and to prevent Iraq from obtaining compensation 
for negative effects of the embargo; 
Whereas the Security Council of the United Nations 
adopted resolution 687 (1991) of 3 April 1991 which, 
0) OJ No L 213, 9. 8. 1990, p. 1. 
O OJ No L 304, 1. 11. 1990, p. 1. 
O OJ No L 115, 8. 5. 1991, p. 37. a recognized producer group which markets all 
the produce of its members as referred to in 
Article 7 (3) (b). The amount of aid to be fixed in 
this case shall be at least 50 % of the amount of 
aid which is fixed for the different groups of hop 
varieties according to the provisions of Article 12 
(5) (a) and (6) of the present Regulation.' 
Article 2 
This Regulation shall enter into force on the seventh day 
following its publication in the Official Journal of the 
European Community. 
This Regulation shall be binding in its entirety and 
directly applicable in all Member States. 
in its paragraph 29, deals with claims by Iraq in relation 
with contracts and transactions affected by measures 
taken by the Security Council in resolution 661 (1990) 
and related resolutions; 
Whereas the Community and its Member States have 
agreed to establish a Community instrument in order to 
ensure a uniform implementation, throughout the 
Community, of paragraph 29 of Security Council 
resolution 687 (1991); 
Whereas such a uniform implementation is necessary to 
achieve the aims of the Treaty establishing the European 
Economic Community; whereas no other powers are 
available in the Treaty than in Article 235; 
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, Proposal for a Council Regulation (EEC) prohibiting to honour Iraqi claims with regard to 
contracts and transactions affected by the United Nations Security Council resolution 661 
(1990) and related resolutions 
(91/C 204/05) 
SEC(91) 1363 final 
(Submitted by the Commission on 12 July 1991) 
No C 204/6 Official Journal of the European Communities 3. 8. 91 
HAS ADOPTED THIS REGULATION: 
Article 1 
For the purpose of the present Regulation: 
1. 'contract' or 'transaction' means: any contract or 
transaction, including guarantees, bonds (e.g. 
performance bonds, bid bonds), stand-by credits, 
subcontracts; 
2. 'claim' means any demand or action on the side of a 
party to a contract or a transaction for the fulfilment 
of an obligation resulting from or connected with 
such a contract or transaction by another party, such 
as: 
— a demand to pay a bond or guarantee, 
— a demand to continue or to start activities foreseen 
under a contract or transaction, 
— a demand to provide indemnity for a payment 
made under a contract or a transaction, 
— a demand for an injunction from a court, for an 
arbitral award or for the execution of such 
injunction or award; 
3. 'measures taken by the Security Council in resolution 
661 (1990) and related resolutions' means measures of 
the United Nations Security Council, and measures 
introduced by the European Communities, any 
country or international organization in pursuance of 
the relevant decisions of the Security Council, or any 
other action authorized by the Security Council in 
respect of the invasion of Kuwait by Iraq, such as 
military activities in connection with the liberation of 
Kuwait; 
4. 'person or body in Iraq' includes any person or body 
resident in Iraq, any body incorporated or constituted 
under law of Iraq and any body controlled by any 
persons or bodies resident in Iraq or bodies incor­
porated or constituted under the law of Iraq. 
Article 2 
As from 3 April 1991, it shall be prohibited to honour 
any claim made by the Government of Iraq, or any person or body in Iraq, or any person claiming through 
or for the benefit of any such person or body, directly or 
indirectly, in connection with any contract or other 
transaction where its performance was affected by reason 
of the measures taken by the Security Council in 
resolution 661 (1990) and related resolutions. 
Article 3 
Without prejudice to existing prohibitions with regard to 
commercial and financial relations with Iraq, Article 2 
does not apply, when: 
(a) a claimant has obtained a judgment from a court or 
an award or an equivalent decision that the 
performance of the contract or transaction was not 
affected by measures mentioned in Article 2; 
and 
(b) the judgment, award or equivalent decision was 
obtained within the jurisdiction of a country that had 
faithfully implemented the measures taken by the 
Security Council in resolution 661 (1990) and related 
resolutions, and in particular paragraph 29 of 
resolution 687 (1991). 
Article 4 
The onus of proving that the performance of the 
contract or transaction was not affected by measures 
mentioned in Article 2, shall be on the person making a 
claim. 
Article 5 
The Member States will take the necessary measures to 
ensure the effectiveness of the disposition of Articles 2, 3 
and 4. 
Article 6 
This Regulation shall enter into force on the day of its 
publication in the Official Journal of the European 
Communities. 
This Regulation shall be binding in its entirety and 
directly applicable in all Member States.