ARCHIVES HISTORIQUES
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DOCUMENTS "COM"
COM(81)592
Vol.1981/0180

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(81)592 final
Brussels .21October 1981
REPORT OFTHECOMMISSION TOTHECOUNCIL
ontheoperation during1980ofthesystemsetupbythe
LoméConvention forstabilizing exportearnings
sfi ?
Myi-.■.vl–-j
SodiJuS,'ulw
Gèneri -.?*/
C0M(81)592final

-1-
INTRODUCTION
1.Under Article 27ofthe Internal Agreement onthefinancing andadministra­
tion ofCommunity aid,theCommission isrequired todraw upeach year for
theMember States acomprehensive report ontheoperation ofthe export
>earnings' stabilization system (Stabex )and the usemade bytheACP States
ofthefunds transferred ,indicating inparticular the effect ofthesystem
onthe economic development ofthe recipient countries and onthedevelop­
ment ofexternal trade .
2.This report isconcerned with theapplication ofthe system during 1980 to
theACP States signatory totheLome Convention andgives information about
operations relating toformer OCTs that have acceded totheLome Convention
butare still covered bytheOCTallocation asfar asthesystem forthe
stabilization ofexport earnings isconcerned .
3.The cooperation machinery described inthe first comprehensive reports has
continued tofunction satisfactorily onthe whole and hence does not call
for anydetailed remarks .
4.Inthis report ,which isconcerned with thefirst year ofapplication ofthe
system set upbythesecond Lome Convention ,theCommission will examine
theactivities ofthe ACP-EEC institutions and thedevelopment ofthe
system ,and look attheapplication ofthetexts and the results .
5.Thethird part ofthe report will deal with the usemade bytheACP States •
ofthe funds transferred and the effect ofthesystem onthe economic de­
velopment ofthe recipient countries .

PARTONE:ACTIVITIES OFTHEACP-EECINSTITUTIONS ANDDEVELOPMENT OFTHE
SYSTEM
Chapter 1:Activities oftheinstitutions
1
§1.ACP-EEC Subcommittee ontheStabilization ofExportEarnings andCom­
mitteeofAmbassadors .
TheACP-EEC Subcommittee ontheStabilization ofExportEarnings didnot
meetin1981. ....
6.TheCommittee ofAmbassadors meton19June1981tosettlethematterof
thereduction ofStabextransfers fortheyearofapplication 1980.In
viewofthelackofsufficient fundstomeettransfer requests infulland
inpursuance ofArticle 34(2),theACP-EECCouncilofMinisters ,meeting
inLuxembourg on9and10April1981,hadinstructed theCommittee towork
outthedetailed arrangements forthereduction by20June.
OnthebasisofareportfromtheCommission advocating thatonlyonecri­
terionshouldbeadoptedfordifferentiating betweenreductions intrans­
fersfortheyearinquestion,namelythat,inpursuance ofArticle 46(2),
transfers toStatesincluded inthelistofleastdeveloped countries
shouldbereduced byasmaller amountthantheothers,theCommittee ,
actingontheproposal fromtheACPco-chairman ,decided asfollows :
-transfers oflessthan1million ECUwerenotreduced;
-transfers toleastdeveloped Stateswerereduced by40.49 %;
-transfers tootherStateswerereduced by52.64 %;
-theamountsofthesereductions corresponded roughlytotheratio 1:1.3
setforthetwogroupsofStates(52.64f40.49=1.3).
§2.ACP-EEC Council ofMinisters .
AtitsmeetinginLuxembourg on9and10April1981,theACP-EECCouncil
ofMinisters hadfourStabexitemsonitsagenda.
7.'First,theproblemofthelackoffundshadtobedealtwithunderthere­
levantprovision oftheConvention ,namelyArticle 34.Pursuant toArticle 34(1)
theCouncilauthorized theuseinadvanceof20%ofthe1981instalment for'
transfers for1980undertheexportearnings stabilization system.
Despitethisdecision,itwasalreadyapparent thattheamountavailable
wouldnotbesufficient andtheCounciltherefore empowered theCommittee
ofAmbassadors toreducetheamountofthetransfers tobemade,pursuant
toArticle 34(2).Intheinterest ofspeedyimplementation ofthetransfers, '
theCommittee ofAmbassadors wastoreachitsdecision by20June1981.
1

-3-
8.Secondly,theCouncilofMinisters tookadecision onthecaseofKiribati ,
Sincethecountry'sdeposits ofphosphate -chiefexporthitherto-areex­
hausted,withtheresultthatitnowexported onlycopra,'mostlytodestina­
tionsotherthantheCommunity ,thederogation provided forinArticle 46(3).
oftheConvention couldbegranted .TheCounciltherefore decidedthatfrom
1Januaryto31December 1982theexportearnings stabilization systemwould-
applytoexports fromKiribati whatever theirdestination ,
9.Threedecisions bytheCommission rejecting requests byEthiopia andUpper
Volta(1)fortransfers inrespectof1979werecontested bythetwoStates
inquestion .TheCouncildecidedthattheCommission ,aftercarrying outa,
furtherexamination oftherequests onthebasisofanynewinformation pre­
sentedbythe.countries concerned ,wouldtakeafinaldecision by10June1981
atthelatest (2).
10.Lastly,withregardtotheaddition ofnewproducts tothelist,theCouncil
calledupontheCommittee ofAmbassadors topreparedecisions onthebasis
ofstudiescarriedoutbytheCommission .Itglsoagreedthatanydecision
takencouldbeimplemented onlywitheffectfrom1January 1981,pursuant
toArticle 26oftheConvention .Accordingly ,theCouncildelegated its
powersofdecision inthismattertotheCommittee ofAmbassadors ,
■' ' \ * »,■',
§3.Parliamentary bodiesoftheLomeConvention .
11.AtthemeetingoftheJointCommittee oftheACP-EECConsultative Assembly ~
heldinLuxembourg from22to24September 1980andthemeetingoftheCon­
sultative Assembly whichfollowed from24to26September,themainitem
ontheagenda,asatArushainFebruary 1980,wastheexamination ofthe
.reportbyMrs.Katharina FOCKEontheresultsobtained underthefirstLome
Convention inthelightoftheforthcoming entryintoforceofthesecond
LomeConvention .Aresolution adoptedattheendoftheproceedings endorsed,
insofarasStabexwasconcerned ,theresolution oftheJointCommittee by
statingthat"asawhole,Stabexhasbeenappliedsatisfactorily ",even
though"theexistence ofcertaindifficulties "hadtoberecognized ;the
resolution alsocalledforareportassessing theimpactofStabexonthe /
]economies oftherecipient States. '
§4.European Parliament .
12.OnthebasisofthereportbyMr.WAWRZIK (3),drawnuptomarkthesigna-/
tureofthe'secondLomeConvention theEuropean Parliament adoptedthev
following resolutions atitsplenary session on17November .1980: "
(1)UpperVolta/cotton :nolossonexportstoalldestinations ;Ethiopia /
sesameseedandUpperVolta/groundnuts :dependence thresholds notreached.
(2)Commission décision of16June1981(seepage6,point20).
(3)PE-66.710 of12March1981.

-4-
Parliament
"TakestheviewthattheStabexsystemintroduced underLomeIimposes
"muchgreaterobligations upontheEECthanexisting rawmaterials *agree­
"mentsandregardsitasapractical firststeptowardsimproving relations .
"between rawmaterials producers andconsumers ;welcomes thefactthatexpe-
"riencesofarwithStabexhasbeenlargelypositivefortheACPandthat,
"incontrasttothegeneralized systemofpreferences inparticular ,the
"leastdeveloped countries havebenefited mostfromthesystem;
"FeelsthattheCommission couldusefully prepare astudyshowingthespecific
"economic consequences forthevarious ACPcountries ;
"Noteswithsatisfaction thattheeffectiveness ofStabex,thefinancial
"resources available andtherangeofproducts covered havebeensubstan-
"tiallyincreased underLomeII;welcomes inparticular thefactthatthe
"ACP-EECCouncilofMinisters caninfuture,according tothecircumstances ,
"applyStabextointernal ACPtrade,whichwillhaveafavourable effect
"ontradecooperation between theACPStates".
Inaddition,theimprovements suggested byParliament inordertomakeStabex
anevenmoreeffective instrument include areference to.thequestion ofin­
dexation andtherecommendation thatthelistofproducts covered beextended
toinclude processed products .
13.Furthermore ,onthebasisofareportbyMrs.CASTELLINA devotedsolelyto
Stabexanddealingwiththerelevant Commission communications totheCouncil,
thespecialreportbytheCourtofAuditors andtheCommission 'sobservations
thereon,Parliament adopted anumberofresolutions reviewing Stabexopera­
tionsandconcluding that,generally speaking,therangeofinstruments and
mechanisms required fortheimplementation ofStabexhadfunctioned satisfac­
torilyunderLomeI.Theproposals forimprovements accompanying thisreview
revealpointsofconcernverysimilartothosealreadyexpressed inconnection
withMr.WAWRZIK'sreport.
14.ThemembersoftheEuropean Parliament havetabledwrittenquestions concerning
Stabex.TheywereMr.PEARCE(Q.E.n°390/80andn°623/81)£ndMr.P0NIAT0WSKI
(Q.E.n°760/81).Theanswerstothesequestions willappearintheOfficial
Journal bytheendof1981.
§5.CourtofAuditors .
15.TheCourtofAuditors madeitsroutineexamination fortheyearofapplica­
tion1979,i.e.theoperations carriedoutbytheCommission in1980.The
conclusions ofthisexamination ofthefinalyearofapplication oftheLomeI
arrangements canbeconsulted intheOfficial JournaloftheEuropean Commu­
nities.

-5-
Chapter 2:Development oftheSystem -
16.1980wasthefirstyearofapplication ofthesecond LomeConvention sofar,
asStabexisconcerned .Allthechanges madetothesystem ,bythenewCon­
ventionaccordingly cameintoeffect;thesechanges havebeendealtwithin
considerable detailinearlier reports andtherewouldseemtobenoneed
torepeatthemhere. \
17.Inaddition tothisgeneraldevelopment ,a'numberofspecific changes may
benoted : '
-theaccession totheConvention pursuant toArticle 185ofStateswhich
havebecomeindependent butcontinue,sofarasStabexisconcerned ,to
becovered bythefundsallocated totheOCT;theStatesinquestion are
SaintVincent andtheGrenadines andVanuatu;
-Zimbabwe'saccession totheConvention pursuant toArticle 186,asare-.
suitofwhichtheStabexappropriation wasincreased by7million ECU,
raisingtheannualallocation fortheremaining fouryearsoftheConven­
tionby1,750,000 ECU;
-thetwo-year derogation grantedtoKiribati,pursuant toArticle 46(3),
wherebyitsexportstoalldestinations arecovered bythesystem.
18.Withregardtothepossible addition ofnewproducts (nutmeg,mace,tobacco,
•citrusfruitandsisalproducts),underArticle 26nodecision cantake
effectbefore 1January 1981. ,
19.Theaccession ofGreeceto:theCommunity hadnoeffectonStabexforthe
yearunderconsideration ;tradebetween theACPStatesandGreecewillnot
betakenintoaccount ..unti'l -1982foryearofapplication 1981.
*■'i • ' .• '/

-6-
PARTTWO:APPLICATION OFTHETEXTS ANDTHERESULTS
Chapter 1:Application ofthetexts
§1.Closure oftheaccounts for1979.
20.TwoACPStateshaddisputed theCommission 'sdecision torejectthree
requests fortransfers inrespectof1979,andtheACP-EECCouncilof
Ministers decidedthatthefinaldecision wouldbetakenby10June1981
atthelatest.However,theresultsofstudies onthecasesinquestion
supplied bytheACPStatesconcerned didnotinvalidate thearguments and
groundsunderlying theCommission 'sdecision torejecttherequests .
Consequently ,on16June1981theCommission finallyrejected thethree
requests,thusclosing theaccounts for1979.
21.Foryearofapplication 1980,theCommission received forty-eight requests
fortransfers fromatotalofthirty-five Statessignatory tothesecond
LomeConvention .Inaddition,threerequests fortransfers werereceived
fromtwoOCTswithinthemeaningoftheDecision of16December 1980which
havebecomeindependent andhaveaccededtothesecondLomeConvention but
continue,sofarasStabexisconcerned ,tobecovered bythatDecision .
, i
§2.Requests rejected pursuant toArticles 38,25,29,37and39.
22.Thefifteen requests rejected canbedividedintothreegroups :
i.Thefirstgroupcomprises requests considered inadmissible pursuant to
Article 38;thisyeartherearefoursuchrequests :
-Papua-New Guinea (cocoa):requestlateandbasedon.earnings from .exports
toalldestinations '
'-Comoros (vanilla ):virtually thewholeof1980production instorage
-Dominica (copraproducís ):nolossonexportstoalldestinations
-Sudan(sesameseed):nolossonexportstoalldestinations .
ii.Thesecondgroupcomprises requests inrespectofwhichatleastoneofthe
conditions ofadmissibility (Articles 25,29and37)isnotfulfilled .
Thisappliestothefollowing tenrequests :
-Mali(sheakernels):productnotincluded inthelistofproducts covered
-UpperVolta(groundnuts )
-Ghana(cocoapaste)
-GuineaBissau (sawnwood)
-Equatorial Guinea (cocoa)
-Uganda (coffee)
-Sudan(cotton)
-SaoTome(cocoa)
-Togo(coffee)
-Zaire(coffee)dependence thresholds notreached
nolossincurred orfluctuation thresholds
notreached .

-7-
iii.Lastly ,the request made byBurundi inrespect ofcotton was reduced
by100 %pursuant toArticle 39 (3)for reasons ofstorage ,which
places its request inthe same category asthe above rejected requests
§3-Application ofArticle 39 (3)
23.With regard tothethirty-three remaining requests from twenty-seven ACP
States and the three requests made bytwo OCTs ,consultations had tobe
held with the requesting States inrespect offifteen requests -affecting
fourteen States -since there hadbeen significant changes inthetrend
ofproduction and total exports oftheproducts inquestion ,necessita­
ting theapplication ofArticle 39 (3). '
i.Fall inratio between total exports andproduction oftheproduct :
-Madagascar (vanilla ):29.9 %cut inthetransfer base * -
-Mali (groundnut product 's):28.4 %cut
-Tanzania (coffee ):8.2 %cut - ■ '
-Comoros (copra ):32.7 %cut
-Somalia (raw hides and skins ):.22.9 %cut
-Rwanda (coffee ):27.2 %cut
-Sierra Leone (palm nuts and kernels ):7.3 %cut
-Kenya (coffee ):4.1 Acut
-Guinea Bissau (groundnuts ):14.3 Aeut .
ii.Fall inthe ratio between total exports and production ofthe product
inquestion ,combined with areduction intheproduct 'sshare of
exports tothe Community : '
Senegal .(groundnut products ):19.9 %cut inthetransfer base
-Sénégal (oil-cake ):24Aeut
-Fiji (coconut oil );28.2 %cut „ '
-Sudan (groundnuts ):38%cut . ,
iii.'Transfer entitlement scaled down tothe loss suffered onexports to
all destinations :
-Kiribati (copra )
-Vanuatu (cocoa ).
§4.Application ofthe Fiji Declaration onthe reference level
24.Application tothe case ofDominica
InaNote Verbale of1stApril 1980 ,theDominican Government requested a
derogation from theprovisions ofArticle 36ofthe Second Lome Convention
onthebasis oftheDeclaration adopted bytheACP-EEC Council of
Ministers meeting inFiji inApril 1977 .

-8Γ-
Thefactspresented byDominica insupportofitsrequest wereasfollows :
i.Theeconomic andsocialinfrastructure oftheentireislandwasseriously
damaged whenHurricane Davidstruckon29August1979.
ii.Theseverity ofthedamagecausedtotheisland'seconomy wasrecognized
byaresolution adopted on19October 1979bytheUnitedNations Econo­
micCommission forLatinAmerica,whichcalledforcontinuous ,urgent
andgenerous helpfromtheinternational community fortheisland's
reconstruction andrehabilitation efforts.
iii.TheCommunity haditselfrecognized theseriousness ofthesituation
ontheislandbyspeedily makingextensive assistance (emergency aid
andfoodaid)available immediately afterthehurricane .
Takingintoconsideration thetextoftheFijiDeclaration ,whichstates:
"Forthepurposes ofapplying theprovisions relating tothereference
"period,whereanACPStatereportsdifficulties duetoayearcharacte­
rizedbyexceptional events,theseriousness ofwhichhasbeenrecognized
"bytheinternational community ,theCommunity declaresitselfreadyto
"seekonacase-by-casebasis,inconjunction withtheACPStateconcerned ,
"asolution tothesedifficulties through asfavourable aspossible an
"interpretation oftheexisting provisions ",
theCommission ,following discussions withtheDominican authorities and
takinginto,accountthespecialcircumstances affecting thebananacrop,
whichisatthemercyoffrequent destructive hurricanes ,decidedthat
untilnormalproduction conditions wererestored ontheislandthereference
levelwouldbecalculated onthebasisofthe1975-78period;inother
words,inthefutureonlytheproduction yearsnotaffected byahurricane
willbegradually incorporated intothereference period.
25.Turningtotheprevious casesinwhichtheFijiDeclaration -wasapplied,
-asaresultofthegradualintroduction of"actual"yearsinthecalculation
ofthereference level,thetwotransfers madetoGuineaBissauthisyear
werebasedonnormalreference levelsforthefirsttime.Inthecaseof
thetransfer toCapeVerde,asthereference periodfor1980nowcontained
onlyone"notional"year,heretootheFijiDeclaration willceasetoapp(ly
in'1981.
§5.Paymentofadvances pursuant toArticle 40(3)
26.Anumberofadvances werepaidin1980and1981inordertoensureconti­
nuitybetweenthetwoConventions .Theseadvances,whicharedeductible
fromtransfers,concerned groundnut products fromtwoWestAfricanStates
seriously hitbydrought andCaribbean Statesaffected byahurricane
whichdestroyed virtually theirentireproduction ofbananas.Anadvance
wasalsomadetoMadagascar inrespectofvanilla.

-9-
27.Theadvancesamountedto37,650,000 ECU,brokendownasfollows:
-Commissiondecisionof13June1980
.Senegal:groundnutproducts ! 25,000,000 ECU
-Commissiondecisionof28October1980
.Gambia:groundnutproducts .A,650,000"
PJamaica:bananas 2,200,000 "
.Dominica:bananas 1,800,000"
.StLucia:bananas ^ 1,300,000
-Commissiondecisionof13February1981
.Madagascar :vanilla 1,000,000 "
-Commissiondécisionof20May1981
.Gambia:groundnutproducts 1,000,000
Byadecisionof28October1980,theCommission madeanadvanceof
700,000ECUtoStVincent(inrespectofbananas)fromtheOCTallocation .
§6.Replenishment oftheresourcesmadeavailabletothesystem
28.InaccordancewithArticle21(3)oftheLomeConvention andthespecific
arrangements laiddowninthelettersexchangedwheneachtransferismade,
theCommissioncarried-outthenecessarycalculations regardingtransfers
madefort-heyears1975to1979inclusivetocountriesrequiredtohelp
replenishthesystem'sresourceswhichhadnotrepaicjinfullthesumsdue.
Itwasfoundthatonthebasisofthe1980resultstherewasnocasein
whichtheconditionslaiddpwnbytheConventionforreplenishment were
fulfiIled.
29.Inthecaseoftransfersfor1975,theACP-EECCouncilofMinisterswill
havetodecide,takingintoaccountthebalanceofpayments .situationand
prospects,foreignexchangereservesandexternalindebteness oftheACP
Statesconcerned,whethertheamountstoberecoveredshouldberepaidin
wholeorinpart,immediately oroveraperiod,orwhethertheclaimshould
be,waived. ,
ForthispurposetheCommissionwilldrawupapapercontainingallthe
requisiteinformation sothattheCouncilcan-takeadecisioninthelight
ofallthefacts.
§7.Application ofArticle34
Asthecombinedtotaloftheresourcesmadeavailabletothesystempursuant
toArticle18(5)oftheFirstConvention andArticle33oftheSecondCon­
ventionwasinsufficient tocoveralltransfers,itwashecessarytoapply
Article34oftheSecondConvention .

-10-
30.TheACP-EECCouncilofMinisters meetinginLuxemburg decided,pursuant to
Article 34(1)oftheSecondConvention ,todraw20Zfromtheinstalment
foryearofapplication 1981(ACP-EEC CouncilofMinisters Decision No2/81
of10April1981).
TheACP-rEECCouncilofMinisters,meetinginNairobi on8and9May1980,
"decided pursuant toArticle 18(5)oftheFirstConvention totransfer on
theexpiryoftheFirstConvention theunexpended balanceofStabexfunds
tothefirstannualinstalment underthesystemsetupbytheSecond
Convention (ACP-EECCouncilofMinisters Decision No7of9May1980),.which
meansthatthetotalamount .availabletomeettransfer entitlements for
yearofapplication 1980isasfollows : ..
1980annualinstalment 110,000,000 ECU
Drawingfrom1981instalment 22,000,000 ECU
Unexpended balance fromFirstConvention .5,975,905 ECU '
\ Total
Iftheresources available arecompared withthetransfer entitlements ,
whichcometo261,107,143 ECU,thecoverrateworksoutat52.84 %,equi­
valenttoashortfall of123,131,238 ECU.
31.Article 34(2)oftheSecondConvention stipulates thatinsuchasituation
theACP-EECCouncilofMinisters may,onthebasisofareportbythe
Commission ,reducetheamountofthetransfers tobemade.Article 46(2)
stipulates thatinsuchaneventaccount mustbetakenofthespecialdiffi­
cultiesoftheleastdeveloped ACPStates. /
Inthelightoftheseconsiderations theACP-EEC Committee ofAmbassadors
(seepage2,point6)decided onthefollowing percentage ratesof*,reduc-
tion(inroundfigures): _'r > - «
-40.49 %(corresponding toacoverrateof59.51Z)fortheleastdeveloped
ACPStates, / '
-52.64Z(corresponding toacoverrateof47.36Z)fortheotherACP
States,
withtransfers oflessthan1million ECUbeingpaidinfull..-
32.PaymentstotheACPStatessignatory totheConvention amountto .y
137,975,905 ECU,i.e.thetotalsumavailable .Thethreetransfers tothe
Statescovered bytheOCTallocation arenotbeingreduced,asthefunds
providedforbytheOCTDecision of16December 1980aresufficient .110,000,000 ECU
22,000,000 ECU
5,975,905 ECU
137,975,905 ECU
\

-11-*
Chapter 2:The results
§1.Overall results
33.A.Results ofthe 1980 operation byACP State
Recipient ACP State Product .
\Amount oftransfer
inECU
Burundi (1) Coffee 11,023,569'
Cape Verde (1) Bananas 214,764
Central African Rep .(1)Coffee 968,396
Comoros (1) Copra , 246,447
IIEssential oils 852,402
Ivory Coast Coffee 19,195,390
Dominica (1) Bananas 2,527,944
Fiji Coconut oil 842,296
The Gambia (1) Groundnuts 3,791,992
IIGroundnut oil 3,191,205
IIOil-cake 1,134,175
Guinea Bissau (1) Groundnuts 1,259,747
IIPalmnuts and kernels 273,91 ?
Jamaica Bananas 3,238,995
Kenya Coffee 10,032,204
Kiribati (1) Copra , 497,742
Lesotho (1) Mohair 242,279
Madagascar Vanilla 1,211,202
Malawi (1) Tea 1,330,961
Mali (1) Groundnut products 2,551,615
Rwanda (1) , Coffee 6,555,031
StLucia (1) Bananas 1 1,349,538 ,
Western Samoa (1) Cocoa 1,222,990 _
Senegal Groundnut products 30,353,160
I»Oil-cake - 8,253,832
Sierra Leone (1) Palmnuts and kernels 947,774
Somalia (1) Bananas 1,423,385
Raw hides and skins 415,854
Sudan (1) Groundnuts 13,415,560
Tanzania (1) Coffee ' 6,254,957
Chad C1) . Cotton 2,539,846 ,
Tonga C1) Copra products 602,239
Tuvalu CD Copra 14,495
\ 137,975,905
C1)States listed inArticle 155 (3).

-12-
34.B.Results ofthe1980 operation byACPState covered bytheOCTalloca­
tion .
ACP State covered byOCT
allocationProductAmount oftransfer
inECU
StVincent Bananas 913,286
Vanuatu Copra -
coconut oiI 3,776,616
Vanuatu Cocoa beans 410,207
• 5,100,109
§2,,Results bycountry
35.Ofthe 137,975,905 ECUtransferred toACPStates signatory totheSecond
Lome Convention ,64,848,826 ECU,i.e. 47%ofthetotal ,waspaid tothe
least developed ACP States ,which ,pursuant toArticle 46 (1)c),are not
required tocontribute towards the replenishment ofthe system 'sresources .
Theother ACP States' share was73,127,079 ECU (53%).Ifthethree
transfers toStVincent andVanuatu are included ,thetwo foregoing
percentages become 49%and 51%respectively .
§3.Results byproduct
36.Forthe individual products the results are asfollows (excluding States
covered bytheOCTallocation ): '
Products Amounts inECU %
■Groundnut products
Groundnuts
Groundnut oiI
-Oil-caker32,904,775-1
18,467,299
3,191,205
L9,388,007 -»(39.55 )
Total Groundnuts (1) 63,951,286 46.35
Coffee
Bananas
Cotton54,029,547 -
8,754,626
2,539,84639.16
6.35
1.84
Copra products
Copra
■Coconut oiIr 602,239
758,684
L842,296■
Total copra products ,2,203,219 1.60
Tea _
Cocoa1,330,961
1,222,9900.96
0.89
.
M

Products Amounts inECU %
Palm nuts and kernels
Vani Ila
Essential oiIs
Raw hides and skins
Mohai r1,221,693
1,211,202
852,402 -
415,854
242,2790.89
0.88
0.62
0.30
0.18 '
,' · · · ν· ( .· 137,975,905 100.00
ofwhich ,products,·...-
-affected bytheeconomic
situation 63,249,184 45.84
-affected bylocal con-
tingencies 74,726,721 54.16
(1)Transfers inrespect of6il-cake for1980 mainly concerned groundnut
oil-cake . . ^ ^
.37.Itcanbeseen that twoproducts accounted for85.51 %oftheamounts
transferred >;inone case Local contingencies were the cause ofthe fall
inearnings (groundnuts :46.35 %),whereas theother product (coffee :
39.16 %)wasaffected byunfavourable economic circumstances /but also
–byadverse local circumstances insome cases .
§4.Analysis ofthe situation regarding Stabex foryear ofapplication
1980 with particular reference tothe shortfall inthe funds
avai lable forthat year
38.Itshould benoted first ofall that this situation has occurred before .
There isaclear analo-gy with 1978 ,asinthat year total transfers were
equivalent to2.17 times the annual allocation under the First Lome
•Convention . •The amount bywhich requests exceed the annual allocation
for1980 isvery similar (2.37 times ). '
Themain difference this year isthat theConvention hasonly just entered
into force whereas in1978 savings carried -over from previous years and
thedecision byone State not toclaim its full entitlement ensured that
the funds available fully covered thetransfers tobepaid (1).
(1)This raises aproblem which hasnever been settled and forwhich there
would seem tobenofinal solution ,namely that nomethod offorecas­
ting ,however precise ,canpredict exactly when transfers may have
tobemade .Although itispossible toassess approximately how large
anappropriation will beneeded over anumber ofyears ,there isno
means offoreseeing orpreventing short-term swings similar tothose
experienced inthe case ofyear ofapplication 1980 .

-14-
39.More specifically ,thereason forthe hiphlevel ofrequests for1980
wasthecombination ofthree hazards ,oneaffecting groundnuts (repre­
senting 47.5 %oftotal requests ),another affecting coffee (39.6 %)and
the third resulting from thehurricane inthe Caribbean (5.1 %). It
should benoted that innone ofthese cases wasthesubstantial drop in
production offset toanyextent byhealthly prices .Inthecase ofground­
nuts ,substitute oilseeds from thetemperate regions held down prices ,
while American production andtheweakening ofdemand had asimilar
effect inthe case ofcoffee .
Inaddition ,there isthefact that thefirst twohazards (those affecting
groundnuts andcoffee ,representing 87%ofthetotal )struck products
with high reference levels .Inthecase ofIvory Coast ,forexample ,
theminimum transfer that canbemade forcoffe ,i.e. corresponding to
theminimum loss required forthefluctuation threshold tobeexceeded ,
works out at37million ECU .
40.There isafurther significant factor aggravating thesituation .In1976
and 1977 ,commodity prices recorded sharp rises which insome cases cannot
beexplained bymarket analysis alone .Itissignificant that theamounts
transferred forthese twoyears were the lowest inthefive years covered
bythe First Lome Convention (10%and 9%respectively ofthe total ).
y '
In1977 especially ,rising prices andexpanding production made for
exceptional export earnings .
Afew figures show the effect ofthis situation ontransfers for 1980 .
Totake the case ofone such transfer ,one arrives atthefollowing orders
ofmagnitude forexport earnings expressed innational currency :
1976 : 80
1977 :134
1978 : 86
1979 : 86
1980 : 89
If1977 isexcluded ,1980 looks like anormal year .More significant is
the fact that ifearnings hadbeen alittle lower in1977 -around the
132 mark for aState with afluctuation threshold of6.5 %(115 for States
with a2%threshold )-there would benoentitlement toatransfer .
41.Lastly ,itwasconsidered worthwhile tolook into thefinancial impact
ofthechanges made tothesystem bythenewConvention .Asnone ofthe
transfers made concern anyofthenewproducts added tothe list ,the
effects aretobefound mainly inthe lowering ofthresholds andthepossi­
bility of"globalizing "certain groups ofproducts .For1980 ,theextra
cost incurred asaresult ofthe changes was 17million ECU,equivalent
to6.5 %ofthetotal ,over andabove theautomatic 1%increment required
byArticle 39 (2)oftheConvention .

-15-
42.Thereasonsfortheappropriation havingbeenexceededare,therefore,
manyandvariousanditisthecombination ofthesediversefactorsthat
hasproducedthepresentsituation.
vSuchasituation,whichcannotberegardedasexceptional sinceitalready
occurredin1978-thoughindifferentcircumstances -isinherentinthe
system.
Stabexwasoriginallydesignedtooperateoverafive-yearperiodwithin
thefixedframeworkofafinancialappropriation .Thesituationthathas
developedthisyearcannotberegardedassurprisingasthenegotiators
madeprovisionforitinArticle18(4)oftheFirstConvention and
Article34(2)oftheSecondConvention .
Sinceitisestimatedthattheappropriation of550millionECUearmarked
fortheperiodofvalidityoftheSecondLomeConventionwillworkout
roughlyequaltooverallrequirements,itwouldseemunrealistic to
speculateonthepossibility oftheappropriation beingincreased-
atthe,expense,inevitably,ofotherEDFcooperation instruments .If,
forexample,theoriginalappropriation hadbeen1,000millionECU,
onefifthofwhich(plusthedrawingof20%)wouldhavebeensufficient
.tocovertotaltransfersfor1980,theresultwouldinevitably havebeen
thatfundswouldhavebeenlyingidleduringthelifetimeoftheConven­
tion.TherateofStabexpaymentsundertheFirstConventionfully,
bearsthisout. ,

-16-
4
PARTTHREE:USEOFTRANSFERS BYTHEACPSTATES ANDEFFECT OFTHESYSTEM ON
THEECONOMIC DEVELOPMENT OFTHERECIPIENT COUNTRIES
§1.Useoftransfers for1980
43.Anystatement regarding theeffectoftransfers for1980ontheeconomic
development oftherecipient countries wouldbepremature .Inaccordance
withArticle 41(2),thefollowing advanceinformation hasbeenprovided by
-theACPStatesconcerned regarding theusetowhichthetransfers havebeen
put: v
Burundi/coffee(11,023,569 ECU)
'theCouncilofMinisters,meeting on22July1981,decidedtoallocatevir-
(tuallyallthefundstotheequalization fundinordertosupportproducer
prices".
CapeVerde/bananas (214,764 ECU)
theStabextransferfor1980willbeusedforthepromotion ,offoodproduc­
tion
Comoros/copra(246,447 ECU),essential oils(852,402 ECU)
weintendtousethetransfer fundsonvariousdevelopment projects designed
toimproveourcountry'seconomic situation ,particularly inthesphereof
agriculture".
IvoryCoast/coffee(19,195,390 ECU)
theStabexfundswillprobably beusedtopromoteagricultural development
throughtheBNDA". ,
Dominica/bananas (2,527,944 ECU)
"budgetary supportintheagricultural sector".
Fiji/coconutoil(842,296 ECU)
"Thetransfers received ujiderreference No.13/75/FI/STABEXandNo.14/76/
\.FI/STABEXwereusedtofinanceinparttheCopraIndustry LoansScheme
whereby asupportpriceispaidifthemarketpriceofcoprafallsbelow
aminimumlevel,andrecovery oftheloanismadewhenpricesriseabove
thischosenlevel. "
• •
Itisproposed thatthetransfer nowappliedwillbeusedmainlyforthe
samepurpose.However,inviewofthegenerally poorreturnsobtained
fromcopra,effortsarebeingmadetodiversify thecropping inthecopra
areas,andoneofthemaincropschosenincocoa.Whereasfortheyears
1979and1980itwaspossible topayFt1900pertonnefordriedcocoa
beans,thepricehashadtobedroppedtoF81000pertonnefortheperiod
JanuarytoMarch1981.Thelikelyeffectsofthisveryseveredropin
priceonthecocoadevelopment plans1981-85arebeingconsidered ,asalso

-17-
istheadvisability ofasupportpriceforcocoaatalevelabovethe
presentdepressedprice.Ifasupportpriceforcocoaisapproveditis
likelythatsomeofthetransfernowbeingappliedforwillbeusedasa
loanfund,thusassistingindiversification inaccordancewithTitleII,
ChapterI,Article23,Section2."
Gambia/groundnuts (3,791,992 ECU),groundnutoil(3,191,205 ECU),oil-cake
(1,134,175 ECU)
"WithregardtoArticle41<2)Iwouldwishtoindicatetheprobableuses
towhichthetransferwillbeput.Stabexfundswillbeusedinthe
followingareas:
(i)Governmentdevelopmenteffortswithspecialemphasisontheagricul-..
turalandinfrastructural sectors.
(ii)AssistancetotheCooperative MovementandtheGambiaProduceMarketing
Boardtostrengthen andenhancetheroleoftheseinstitutions inthe
production andinthedistribution ofagricultural inputs". '
Jamaica/bananas(3,238,995 ECU)
"Purchaseoffieldboxesforuseinqualitycontrolareasandvehiclesfor
leaf-spotcontrolprogram". v
Kenya/coffee(10,032,204 ECU)
"Itisaccordingly requestedthatthesaidfundsshouldbemadeavailable
totheKenyaGovernmentduringthecurrentfinancialyearbywayofreim­
bursementtoclaims.Theprojectsforwhichthefundsareneededareshown
below(inKenyapounds):
I.MinistryofLivestockDevelopment '/ ,
1.CottonDevelopment Project 16,000
2.Agricultural MachineryTestingUnit 14,000
3.PilotSoilandWaterConservation 180,000
4.NyahururuLarge-Scale FarmersTrainingCentre 30,000
5.EldoretLarge-Scale FarmersTrainingCentres 40,000
6.Small-Scale FarmersTrainingCentres 15,000
7.Agricultural Engineering forMechanization for
Small-Scale Farms 40,000
8.Entomology andBiologicalControl 26,075
9.ForestResearchDepartment 25,000
10.Horticultural ResearchProject 80,000
11.SugarResearchStation-Kibos 30,000
12.DrylandFarmingResearchProject 40,000
x13.KisiiResearchStation 35,000
14.MatugaResearchStation 38,000
15.Soil,PlantandSeedInspectionRegulatoryServices <55,000
16.CoastalAgricultural ResearchStation 80,000
17.Maintenance ofStations 50,000
18.SoilandConservation Works 200,000
19.Irrigation andDrainageBranch 64,350
20.KEFR0Headquarters -Muguga 241,386
Sub-total 1,299,811
./.

-18-
II.MinistryofLivestockDevelopment
1.VeterinaryClinicCentres 45,000
2.Drugs,SeraandVaccines 834,000
3.FootandMouthDiseaseControlPlantEquipment 45,000
4.GeneralVeterinaryServicesPastoralAreas 125,000
5.KabeteVeterinaryLaboratory 222,500
6.WelcomeInstituteforResearchonFootandMouth
Disease 36,000
7*Construction ofWaterSupplies 35,000
8.NationalAnimalResearchStationNaivasha 213,000
9.OtherAnimalResearchStations 105,000
10.BeeIndustryDevelopment 30,500
11.SheepandGoatDevelopmentProject 80,000
12.GrazingBlockDevelopment NorthEasternProvince 46,000
13.AthiRiverMeatTraining 61,000
14.A.H.I.T.I.Kabete 79,420
Sub-total 1,957,420
III.MinistryofEnvironment andNaturalResources
1.RadioNetwork
2.KenyaRangelandEcologicalMonitoringUnit
3.MineralSurveyandExploration
4.WildlifeConservation andManagementServices
5.WildlifeResearchProvinces
6.WildlifeConservation ServicesProvinces
7.EducationUnit
8.FisheriesDevelopment ..'.
9.KenyaMarineandFisheriesResearchInstitute
Sub-total 1,608,650
Grandtotal4,865,650
Finally,mayIpointouttheabovenamedlistisnotexhaustive andwill
bediscussedinmoredetailswiththeEECDelegationOfficialsherein
Nairobiattheappropriate time".
Kiribati/copra(497,742ECU)
underart.41.2SecondLomeConvention GovernmentofKiribatiexpects
thatfundswillbeusedfor.coprapricestabilization ".
Lesotho/mohair(242,279ECU)
"transferofabout220,000malotitobeutilizedbythelivestockproducts
marketingservices(L.P.M.S.)throughspecialaccountwithLesothoNational
Development Bankforthefollowingprojectsformohairgoatfarmers:
a)improvement ofcollection andconditioning ofmohairthrough:
-purchaseofthreecollectiontrucks(64,000m)\
-erectionofwarehouse (70,000m)
-purchaseof20doublebalepresse(12,000m)
-cashreservefordirectpurchasefromthefarmers(30,000m).
' ./.91,450
35,000
177,000
104,000
80,500/
693,000
62,000 ν
155,700 ■
210,000
1,608,650

19-
b)contribution toestablishment ofangora breeding station for66,000 m.
Estimates will berefined and final figures given during systematic repor­
ting ".
I , • '.
Madagascar /vani lla(1-211 -202 ECU )
"Thetransfer will probably beused forthepurchase ofrawmaterials and
components andspare parts forindustry ,particularly theagri-foodstuffs
industry ".
Malawi /tea (1,330,961 ECU )
- i. ' "
"Credits tosmallholders viaNational Rural Development Programme and .
Smallholders Sugar Authority ".
Mali /groundnuts (2,551,615 ECU )
''Inaccordance with Article 41 (2)oftheConvention ,thetransfer will
probably beused asfollows :
1)agricultural production :allocation tothePrice Surveillance andRegu­
lation Office (0SRP )which isauthorized toact,directly orindirectly ,
through integrated development schemes (inparticular 0DIPAC )tosupport
price levels andensure aguaranteed price forfarmers producing ground­
nut and cereal products . 1
2)processing ofgroundnut products :action toensure atleast partial
coverage oftheoperating deficit where this hasbeen caused byafall
inexport earnings during 1980 ".
Rwanda /coffee (6,555,031 ECU)
The Government plans topay thetransfer into the0CIR equalization fund ,
since thepurpose ofthis fund istostrongly support the coffee price
paid totheproducer inthe interests ofmaintaining aguaranteed purchase
price ofRF120/kiLo ofparchment coffee .The Rwanda Government attaches
great importance tomaintaining this price ,irrespective ofthe state of
theworld market ,inorder togive itsproducers afair income (InRwanda ,
one out ofevery twopeasant farmers isacoffee producer ).
Atthe current reference price of120 cents perpound ofmarketable coffee ,
fobMombasa ,theequalization fund disburses RF12,000 per tonne ofparch­
ment coffee purchased andhigher processing andtransport costs areenvi­
saged asaresult ofincreased fuel prices .
Replenishment ofthe reserves ofthe 0CIR equalization fund will notonly
help touphold domestic coffee prices ,but should also enable the fund to
subscribe development bonds ,these being onemeans offunding thedevelop­
ment budget under which investment projects areplanned for1981 inthe
economic and social sectors ,including anumber ofschemes toimprove the
quality ofthe coffee produced ". *
./.

-20-
SaintLucia/bananas(1,349,538 ECU)
'Rehabilitation ofagricultural sectorandtherestoration ofsocialand
economicinfrastructure ,i.e.:roadrepairs,roofingandgeneralrepairs
tohousing.Assistanceforrepairoffishingboatsandequipment.Field
rehabilitation ,forbananasandfood".
SaintVincentandtheGrenadines/bananas(913,286ECU)
"Rehabilitation ofagricultural sectorandrestoration ofeconomicinfra­
structure,includingplantingmaterialandchemicals".
WesternSamoa/cocOâ(1,222,990 ECU)
theproposedutilizationofthe1980Stabextransferisforthefollowing
developmentprojects(inWStala): ,
Departmentofagriculture
1.Cocoarehabilitationanddevelopment 98,000
,2.Reafforestation 600,000
3.Coconuthybridization 42,500
4.SeLectedseedling ,cocoareplanting 40,000
5.Dairyproduction • 42,000
6.Animalhealthservice 46,000
7.Plantprotection 102,000
8.Agricultural inputsfertilizers andchemicals 800,000
1,670,500
Theaboveutilization proposalisaimedbasicallyatstrengthening and
expandingtheproductivecapacityoftheagricultural sectorwhichwill
minimisetheadverseeffectsontheoveralleconomybroughtaboutbythe
fluctuations inflictedbyexternaltradefactors.The800,000WStala
proposedtobeearmarkedforsubsidisingthecostofagriculturalinputs
forplantersisbeingcurrentlyreviewedastowhetherthefundscouldbe
furthereffectivelyutilizedforprovidinganexportsubsidythroughthe
proposedpriceorstabilization 6chemesofcopra,cocoaandbananaexports"
Senegal/groundnutproducts(30,353,160 ECU),oïl-cake(8,253,832 ECU)
"TheSenegalGovernmentintendstouseanyStabextransfer,whetherinthe
formofanadvanceorfinalpayment,toassisttheruralpopulation and
prepareforthenextfarmyear,particularly thegroundnutcrop(groundnut
andoleaginousproducts)." 1
SierraLeone/palmnutsandkernels(947,774ECU)
"inaccordancewithart.'23,para2andart.41,para1and2,government
intendstoutilizetransferof947,774ECUfordevelopment ofagriculture,
moreparticularly onfollowingprojects:
1)Kambiaintegratedagricultural developmentproject '.Le300,000
2)Tormabumricedevelopmentproject Le500,000
3)Farmers'financecompany Le430,000
Total:Le1,230,000,équivalentof947,000ECU".

-21-
Somalia /bananas <1,423,385 ECU),rawhides and skins (415,854 ECU)
«
"the funds will beused topromote anddevelop various banana projects and
improve hide and skins quality with aview toovercoming theprobLem current­
lyencountered inthese twoareas ".
Sudan /groundnuts (13,415,560 ECU)
Aswas indicated inthemeeting alltransfers will beutilized insuppor­
ting the rehabilitation programme and thegroundnut seed improvement
project ".
Tanzania /coffee (6,254,957 ECU )
"also beadvised that utilization ofthe Stabex transfer would beas
follows (inTSh ):
a)Morogoro canvas miII 38,000,000
b)Kagera sugar factory 8,000,000
c)NMCgodown (Kipàwa DSM ) 1,500,000
d)Cashew nutfactory Tunduru ' 4,300,000
e)Kilombero factory -irrigation - 2,000,000
f)NMCgodown Morogoro 1,000,000
g)Dakawa ricefarm -irrigation ' 4,690,000
h)Pyrethrum factory -Mafinga 2,210,000
61,700,000
Chad /cotton (2,539,846 ECU )
"TheGovernment intends ,inaccordance with theSecond Lome Convention ,to
use thetransfer forfinancing the1982-83 cotton crop (contribution towards
purchase ofinputs )andaccordingly requests that theCommission beinformed
that thetransfer should bepaid inFFinto the account opened onbehalf of
the Republic ofChad atthe BEAC inYaounde .The Chad Government will issue
thenecessary instructions with regard tothe settlement ofinvoices concer­
ning thepurchase of-inputs ". *
Tonga /coconut products (602,239 ECU )
Subject toGovernment consideration ,thetransfer islikely tobeused to
support thecoconut industry directly inthe form of,one,supporting
Tonga 'sprice stabilization scheme for coconuts ,two,providing for Local
costs ofcoconut replanting scheme and coconut pest control ".
Tuvalu /copra (14495 ECU )
With regard totheutilization ofthetransfer (Art .41ofthe Convention ),
the funds once thetransfer hasbeen agreed will bepaid tothe Copra co­
operative Society toassist ittomaintain astable producer price onthe
outer islands ".
Vanuatu /copra producís (3,776,616 ECU),cocoa (410,207 ECU )
"Parliament has just approved legislation setting upcommodities marketing
board one offunctions ofwhich istostabilize prices paid forprescribed
commodi ties ".
/'

-àà
Intention istoholdStabexfundsinspecial accountforeventual transfer
tostabilization fundexpected tobesetupbyboard.Transfer tobemade
whenMinister ofFinancesatisfied withestablishment andoperations of
board.IfGovernment revenuecontinues tobeaffected bylowcommodities
salesincomehoweveritispossible thatpartwillbetransferred to
Government revenueaccounttosupport development drive".
CentralAfricanRepublic/coffee(968,396 ECU)
."TheagencyinreceiptofthetransferistheCaissedeStabilisation etde
Perequation desProduits Agricoles whichwillusethefundsforcoffeeand/
orcottonprojects."
Guinea-Bi ssau/groundnuts (1,259,747 ECU),palmnutsandkernels (273,919 ECU)
"Theequivalent willbepaidintotheNational Development Fundandbe
usedtofinanceruraldevelopment projects."
I '
44.Thisinformation -aSecondLomeConvention innovation -isverygeneral
insomecases.However,Article 41(2),whichrequires theprovision of
suchinformation ,bringspolitical responsibilities intoplaysincea
financial decision isinvolved .Hence,thisprocedure cannotbecompared
withthetechnical cooperation arrangements alreadywellestablished ,such
asthetransmission ofstatistical dataorthecross-checking andother
procedures operating withinthesystemaccording towell-defined rules.
ν
Consequently ,therecanbecauseforsatisfaction thatinalmostall-cases
thisadditional andnewdifficulty withwhichtheACPStateshavebeen
confronted hasnotsloweddowntheimplementation oftransfers .Also,
onthebasisoftheseinitialencouraging results,thereisgoodreason
toexpectbetterresultsinfutureyearsfromthosequarters wherethere
isscopeforimprovement .
§2.Economic impactoftransfers for1980
45.Therelative proportion oftransfers effected underthesysteminrelation
totheexportearnings ofrecipient countries variesaccording tothe^
extentofthelossessustained,theshareofthecountry'soverallexports
accounted forbytheproductorproducts concerned,andthestructure of
exports (Community shareoftotalexports).
Inanumberofcases,theproportion isremarkably high.Disbursements
expressed asapercentage oftotalexportearnings (allproducts,all
destinations ,for1979,calculated inECU)wereasfollows :
28.33 %
22.06 %
14.93 %
14.54 %
13.84 %Gambia (threetransfers )
Dominica
Guinea-Bissau (two'transfers )
Burundi
Vanuatu (twotransfers )

-23-
Tonga
Cape Verde
Senegal (twotransfers )
Western Samoa
Comoros (two transfers )11.66%
9.97 %'
9.17 X
9.02 %
8.66 %.
46.The impact ofthetransfers obviously ,stands out farmore clearly when one
looks atthetransfers made for aspecific product andtheexport ,earnings
(alldestinations )corresponding tothat same product (1980 ).Thefollowing
percentages illustrate this :
These data reveal the extent ofthe compensatory flows provided bythe
system for the sectors inquestion andconsequently oftheguarantee in
respect oftheACP States' export earnings ,particularly forthe least
developed among them .
,§3.Utilization reports and economic impact ofLome Itransfers
47.With regard tothetransfers made during theLome Iperiod ,theCommission
iscollecting theutilization reports for1979 ,the last year ofapplica­
tion ,aswell aslate reports forprevious years .These reports will sub­
sequently betransmitted tothe Council without comment ,since anevaluation
isdue bythe end ofthe year ;this will provide more detailed information
and itwill bepossible toassess the effect ofLome Itransfers onthe
economic development ofthe recipient countries .
48.Stabex hasbeen criticized inconnection with 1980 ,and the fact that the
allocation fof -that specific year was too small hasdrawn avariety of
comment .Two criticisms inparticular have been aimed atthenature and
role ofthe system .One criticism was that theproblems experienced by
Stabex for that year were structural and notoccasioned bythe economic
situation ,Whereas another view was that faced with the collapse ofStabex ,
priority should infuture begiven toseeking andconcluding commodity
agreements based onprices .Sierra Leone (palm nuts and kernels )
Sudan (groundnuts )
Dominica (bananas )
Mali (groundnut products )
Comoros (copra )
Gambia (groundnut oil )
Gambia (oil-cake )
Western Samoa (cocoa )
Cape Verde (bananas )
Comoros (essential oils )297.47 %
157.65 %
132.80 %
101.31 %
85.56 %
78.62 %
73.28 %
72.26 %
70.60 %
62.21 %.
\
CONCLUSION
/

49.ThisreportmakesitclearthatStabexhasnotcollapsed .Themachinery
providedforundertheConvention hasfunctioned correctly,andhere,
creditisonceagainduetotheACPStatesfortheirexcellent cooperation .
Allofthefundsavailable havebeenallocated ,whichrepresents asubstan­
tialfigureofalmost138million ECU.Ananalysis ofthesituation for
1980shows,moreover,thattheproblemencountered probably derivefrom
economic circumstances ;thisobservation isendorsed bythefactthat
theStabexfund.,for -theOCTfonctioned perfectly .Attheverymost,cri­
ticismcouldbelevelled attherigidity ofthefinancial ruleswhichdo
notalwayspermit aflexible response tosituations whichvarygreatly
bydefinition .
50.Commodity agreements clearly supplement ratherthancompetewithasystem
suchasStabex.Byreducing pricefluctuations ,worldagreements could
reducethenumberofStabexrequests thoughStabexcontinue tooffer
protection againstproduction riskswhichcannotbeprovided byanymarket
organization system.Hence,theCommission hasendeavoured toensureStabex
compatibility withexisting worldagreements andhastakenanactivepart
inthenegotiation andadministration ofnewagreements .Inanewworld
economic ordercomprising morecommodity agreements 'thaninthepast,
Stabexwillremainthelastresortforproducers .
X

AnnexI
„ListofdrawingsundertheInternational MonetaryFund's
compensatory paymentssystemcarriedoutsince1January1980
-
Mi11ion
SDRsLastmonthofre-Month
Country levant12-month
periodof ■
drawing
Mauritania (2) 10,5 6/79 1/80
Guyana ι6.25 12/79 1/80
UgandaXXC1)(2) 25.0 9/79 1/80
MaliX(1)(2) 5.1 12/79 3/80
Madagascar X(1) 29.2 12/79 7/80
Equatorial Guinea 6.4 5/807/80j
Tanzania XC1)(2) 15.0 3/80 9/80!
•I
SudanX(1)(2) 21.8ï12/80 11/80
ChadX(1)(2), 7.1 12/80 1/81
CentralAfrican^<1)(2>Republic
DominicaΧ(1)(2)9.0
1.9512/80
•12/80-1/81
2/81
Grenada(2) 2.1 12/80; 4/81
SaintVincent X(1)(2) 1.3 12/80 3/81
SaintLuciaX(1X2),2.7 '3/81 4/81!
I
Equatorial Guinea 4-7 '10/80 4/81 1
,Mauritius 40.5 5/81 4/81
Samoa(2) 2.0 6/81 4/81:
SudanX(1)(2) 45.7 12/80 4/81I
JamaicaX(1) 37.0 12/80 4/81
.Ethiopia(2) 18.0 6/81 5/81
Tanzania X(1)(2) 15.9 6/81 /81
UgandaX(1)(2) 45.0 6/81 /81
TheGambiaXXX(1)(2)9-0 6/81,'/81
(1)'The"X"denotethenumberoftransfersreceivedbytheACPStates
concernedfor1979and1980. '
(2)ACPStatesnotrequiredtocontributetothereplenishment ofre­
sources.

AnnexII
Cumulative transfers priortotheapplication ofArticle 34(2)
Country Product ;Cumulative transfer ?prior
,totheapplication of
Article 34(?)
Burundi Π) CoffeeΨ
18525195
CapeVerde(1) Bananas 214764
,CentralAfrican Rep.;1)Coffee 1627397
Comoros (1) Copra 246447
MEssenti aIoiIs 852402
IvoryCoast Coffee 40532892
Dominica(1) Bananas 4248229
Fiji Coconut oiI 1778588
TheGambia (1) Groundnuts 6372472
»1Groundnut il' 5362846
IIOil-cake 1905990
Guinea-Bissau (1)' Groundnuts 2117015
II.Palmnutsandkernels 273919
Jamaica Bananas 6839447
Kenya Coffee 21183952
Kiribati C1)/ Copra 497742
Lesotho (1) Mohair 242279
Madagascar VaniIla 2557569
Malawi (1) Tea 2236690
Mali(1) Groundnut products 4288009
Rwanda (1) Coffee11015781 ,
SaintLucia(1). Bananas2267910
Samoa(1) Cocoa 2055245
Senegal Groundnut products ;64093584
IIOil-cake 17428751
SierraLeone(1) Palmnutsandkernels 1592741'
Somalia,(1) Bananas , 2392010
MRawhidesandskins 415854
Sudan(1) Groundnuts 22544954
Tanzania (1) Coffee 10511504
Chad<1) . Cotton 4268231
Tonga(1) Copraproducts 602239
Tuvalu (1) •Copra . 14495
261107143
(1)ACPStateshotrequiredtocontribute tothereplenishment ofresources .

Breakdownoftransfersfor19£0accordingtocurrencyrequestedbyACTStates
'Recipient ACPState ProductAmountoftransfer
inECU¡■'rench
Franc.deutsche
MarkI;Pound
Sterling
Burundi(1) Coffee 11.023569 Χ
CapeVerde(1) Bananas 214764 Χ
CentralAfricanRep.(1)Coffee 968396 X -
Comoros(1) Copra 246447 X
•V
II ·"·EssentialoiIs 852402 X.
IvoryCoast Coffee 19195390 * Χ
DominicaCD' Bananas 2527944' Χ
Fiji Coconutoil 842296 Χ
TheGambia(1) Groundnuts 3791992 χ
II .'··GroundnutoiI 3191205 X χ
MOil-cake 1134175 χ'"
Guinea-Bissau (1)Groundnuts 1259747 -.' χ
»1Palmnutsandkernels 273919 χ
Jamaica Bananas 3238995/χ
Kenya Coffee '10032204 Χ
Kiribati(1) Copra 497742 χ
Lesotho(1) Mohair 242279 X
Madagascar Vanilla 1211202 Χ
MalawiCI) Tea 1330961r , χ
MaliC1) -Groundnutproducts 2551615 i' χ
RwandaCD■ Coffee 6555031 Χ
SaintLuciaCD Bananas 1349538 Χ
SamoaCD Cocoa 1222990 χ
Senegal Groundnutproducts 30353160 χ
II-Oil-cake 8253832 χ
SierraLeone Palmnutsandkernels 947774*- χ
SomaliaCD Bananas .1423385 >Χ(30%) Χ(70%)
"Rawhidesandskins 415854 χ•
SudanCD Groundnuts 13415560 Χ
TanzaniaCD Coffee 6254957 Χ'
ChadCD Cotton 2539846 χ
TongaCD Copraproducts - 602239 χ
TuvaluCD Copra 14495 χ \ .-
(1)ACPStatesnotrequiredto.contributetothereplenishment of"resources.

Recipient ACP State
OCT allocationProductAmount oftransfer -
inECUFrench
FrancDeutsche
MarkPound
Sterling
Saint Vincent -Bananas 913.286 X
Vanuatu Copra products 3.776.616 X
II
•Cocoa beans 410.207 X