ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(78)93
Vol.1978/0033

Disclaimer
Conformément aurèglement (CEE,Euratom) n°354/83duConseildu1erfévrier1983
concernant l'ouverture aupublicdesarchiveshistoriques delaCommunauté économique
européenne etdelaCommunauté européenne del'énergieatomique (JOL43du15.2.1983,
p.1),telquemodifiéparlerèglement (CE,Euratom) n°1700/2003 du22septembre 2003
(JOL243du27.9.2003, p.1),cedossierestouvertaupublic.Lecaséchéant,lesdocuments
classifiés présentsdanscedossierontétédéclassifiés conformément àl'article5dudit
règlement.
Inaccordance withCouncilRegulation (EEC,Euratom) No354/83of1February 1983
concerning theopeningtothepublicofthehistoricalarchivesoftheEuropean Economic
Community andtheEuropean AtomicEnergyCommunity (OJL43,15.2.1983, p.1),as
amended byRegulation (EC,Euratom) No1700/2003 of22September 2003(OJL243,
27.9.2003, p.1),thisfileisopentothepublic.Wherenecessary, classified documents inthis
filehavebeendeclassified inconformity withArticle5oftheaforementioned regulation.
InÜbereinstimmung mitderVerordnung (EWG,Euratom) Nr.354/83desRatesvom1.
Februar 1983überdieFreigabe derhistorischen Archive derEuropäischen
Wirtschaftsgemeinschaft undderEuropäischen Atomgemeinschaft (ABI.L43vom15.2.1983,
S.1),geändertdurchdieVerordnung (EG,Euratom) Nr.1700/2003 vom22.September 2003
(ABI.L243vom27.9.2003, S.1),istdieseDateiderÖffentlichkeit zugänglich. Soweit
erforderlich, wurdendieVerschlusssachen indieserDateiinÜbereinstimmung mitArtikel5
dergenannten Verordnung freigegeben.

'
k■'vt,•!:t."'
*^
\t\ >:t•-:
...."'J'
t1
COMMISSION ,OFTHEEUROPEAN COMMUNITIES
•-«-•■/»f •£>.-fc. ■••:■--s.-.. ,■; fVA'-*. ••
1 ]|V1 **"
Cf.■• ..1■
*"**»-"V*
'»^♦/Js*t - J1
•'< ν'< V-,>, > ^# '
f *>t , 4■i„<* *-' .'*,11'
■ί.'.<< , , / >---ν.-/
*r"s>,ttit{,» >v
i''t"w<'*■>>,,>,1♦_■<,»•11/,*H»frI*. 1*• *> ^ \ *r'l><>'< S*1.?»->
j '■'.f*-'y>\■t3/O/>.'''V Jl.*«.''.'X^ v-':•\
> <, 1 •/:\ i,< *** > r ',-•··*ι/%> . -- „ν,,
.«'<' 'A'«'*'-.«*Vi\-*%r1-'v- 11/'t«/"
I♦"-"*'-'/NV-> '/*<*\x1,^1 , V''f,' ,'",*'F^l' «4,? t'i>•»flI>f,i y,k',v'!"-h->'ps,irr?*k&\k\;%•»"'u-f\
+\> b-*•.u *t:i{, r'v J
<■-,·<■ν ·.'ι^.Ε=ι/Γ^ ^-
P*t<*'r,'"'*'< 1J,M« ^-V –J
** ^-»• k^ ^ f' ^i }r»« <'ν^A.^
, v»,I*
-*■■■•!;••<».-■ •.. .•<•.V ■•Vi-».-t•:i.r-t•■■..<>.: ■,<■«■"r.\ J-..-t.,:•..i„
COM(78)93 final. vV
Brussels ,SMarch *197&.t•
V1 'Γτ
.ι*Λ
/ » »,^ >■ *<
>ΛΛ'1.«,Λι 'Γ','
V,/,»w<" v+1',''iur,' K>4 -2,
ii <*)** v- AV
-*>t*ii' i*
< *- .,■*« ^i M
,i,"•l«if•. ,
.*s»J"V<fv,»{»
1:i."
i^^v
,\/<
,tvy^v,-Proposal fora
!:COUNCIL ■REGULATION (ESC) i'
iri\*relatingtothe/t r«,fi<"J,!ift 'l'iV. »«,
i"/C\Iit
*.y•
■*
,h;'i'\-\t"
.-*■,\,
<•1\«-'■(
.ji
j ■•v. *M/< <,ν. >
.CreationofaEuropean Agency -forCooperation (EAC)«t"
•iiA
1*y'^
Λ7
ff
/>1^ν4* *,<n«* /■,■?«\.Af^lv
i
V f
*/I <»
; .*..-„
f|fv
•;v.■.;ii••■»■•>.■.».f-■■■V.rt ^V•r■..<>*.■ ..•»:■■•t
-»>>v/--^\\vsi }
:-•.■«.(submitted totheCouncilbytheCommission )
i
.'"Ί'X-
*·-1
t<
Vf,
',■;
jni^
I1-v4#'.VV ,>
H « **■
».\
■Α4ϊ
)■
'-t•/
J/J ■¥*sr#1lr %
h,vi' .i
A> V
"V>'>/
■*.ii,<
* iti
■ ^!
</ * V <
A\^^T«"
\**i»
y**iJ,
T
>.-;.- .•.. r*-.•^•»•
-t?.w.»;•* .."»:>
>,h
it!. vk:-,
'.Y'i.
'4.)'1S8,»j.S
..«λ.·»■
.■'ί-.,r,'t»t.
•-4Λ,.rt.M<■-
«I
■*^'"
m>
IV•*J
(t''f ,"«4"^ ^
V» 1,,*,'tJl^4/<'L,
..*-.. 1 ■••- .'.I.–•>>^0••lV,.'•«.•■<1.!(.. •-V
i'. V1« -f^'j'I'1 f< V^ ,
J.5,1^11*1''',"S»','tj,l C**
>·ϊ., "^ ι1^ ►Λ> 1'(.\V7»9-1 // ' Γ* 1I
a:l.l*/*
I•»N'
■\f
-I;'■'/„'/^I.,;•>'.-t'l;,, •'
'>»
Λ>
<
rV
'••'V>y-*^'4/t
-7-
i
l'i
.:t.r-.*,ï ■ï.:
1-"■<\i11,•L<<
,1•
,•.Y:•:l. .'j.•i.'-+i:ii.t* .Kr.yC ^ <•t.
f--"w>' ^
41> ^
v4 <
s*'t*xv'*TV. ^i
? f
*-I'I'
•I
CQM(78)93final.
i^1 ,*
r'•>^
<\t
•t.VV
1
ii
*l,'4
....sY
'V(
fiI
I-i.•'■•■■V-
;ï.»■'' '
V
«
i7
i'
Νf
4.1tV
»S-.
>V»'
*•
",>v
r-'.M:. •
•'.V,·.^I'■
«1 ·>
I
1ΤΛ*
ν
l>.t
1■*■<: ■;•3,+ >ril1 <\it\.w
'1^ ?\7<i
ig
*V)
<>Λ"
'.t
4,'*StI^*
,i•^i
** I«»
^ Viv'l-v^
^î',lî'*'
y 1.
À»«1'i\4
f,'A*>''t»f,^41t **fV»1? Vi>►
}fv*4-1*\**(
.Kt'f1 f<'w'f,'t-*\ ■v..-;;"*à
5{
,ιΊ1^ <'$
. >ν '
ν"„'♦η4
''*iK•u 1
c ■■V,'•ί1fi S\i'f
'>s
',.i *s'.
11..•-tï
V'/.".<.•• V"}■"V•.••'•■a.-••*■'
»•v■ ..-a.■?*.-.-r.j
'" Vy V>
'»4l'^ <
^ ;\•:
*»
^·■..-·"ν·^y
r,
-i. «•""vTS■
-,''-'.1■ •'
**^<'>/
/■i;►>
-i^^,41 x.
•A-:-U"•''--Y■<••"s1•••'«■•':.?l
>"''/«^,».«
f' /:
i»ft'>'^
Hi'
1''!'"-/'·>
^-/
:V.'V.i}-f*•Î-V'
r"v1wk-v.V'
11A

Creation ofaEuropean AgencyforCooperation <EAC>.
Forthepurposestfimplementing theLom*Convention andsimilaragreements
(Maghreb,Mashrek,Israel)theCommission assumesadministrative responsibility
particularly 1nthesphereoffinancial andtechnical cooperation .Alarge
partoftheseresponsibilities InvolvestheCommission applying astaffpolicy,
sinceitstask1s:
1.tosetup,fhaintain andrundelegations inthedeveloping countries linked
totheCommunity bycomprehensive preferential cooperation agreements ;
%H.torecruitandmanagetechnicalcooperation staffplacedatthedisposal *
ofthesecountries;
111.finally,toadminister ascholarship programme forstudents attending the
training establishments ofMemberStatesandassociated states.
Aspecialized instrument wasobviously neededtoundertake thesetasks.The
Commission providedthisinstrument in1964intheformofastructure governed
byprivatelawwhichhasprovedeffective anduseftilbutwhichtimehasshownto
benotcompletely satisfactory .
Thepurposeofthiscommunication istherefore !
tooutlinethefeaturesofthestructure whichwassetupandth«conditions
underwhichitOperates;
.toexplain whythisstructure mustdevelop and1ftwhatdirection;
finally,topresentthedrafttextrequiredforthecreationoftheproposed
newstructures .
X.THEEXISTING INSTRUMENT :THEEUROPEAN ASSOCIATION FORCOOPERATION
<1>Origin:theImplement InqConvention ontheAssociation annexedtothe
«
TreatyofRome
Intheinitialphase,from1958to1964,thetents1nforcedidnotcover
technical cooperation .Training programmes werelikewisenon-existent ,In
thecaseofcapitalaid,,the.onlyconcernwastoprovidetechnical supervision

oftheexecutionofprojectsfinancedbytheEOF.,Thistaskwasentrusted
exclusivelyto.firmsofconsultingengineerschosenfromwithintheCommunity,
whichwereboundbycontracttotheCommissionandsetupteamsoftechnicians
locally. v
•• •
Inthisphasfc,theveryideaofCommissionrepresentation wasnotevenconsidered.
However,eventsfapldlydemonstrated theneedto90beyondthissimpletechnical
role:circumstances requiredthefirmsofengineeringconsultantstoanswer
questionsraisedbytheGovernments oftheassociatedstateswhichwentfar
beyondthetechnicalfieldandinvolvedrelationsbetweentheCommissionand
non-membercountries.Consultancyfirms,whichwereengaged1nprofitmakingi
•mactivities,werenotsuitedtoassumingsucharoleofrepresentation .
> «
<2)Evolution:firstandsecondYaoundeConventions
Ztisforthisreasonthat1964sawthebeginningofasecondphase*Technical
cooperation,whidhhadbeenformalized,gaverisetoextensivetrainingprogrammes
andtheprovisionofexperts1nthemostvariedfields.Gradually,theCommission
setupanetworkof21,"EDFresidentsupervisors"whichstillexistedattheend,
of1975.
Theseresidentsupervisors wereassistedbyteamsoftechnicians and
administrative andfinanclalstaff,madeupone-thirdofthestaffofthe
consultancyfirmsretainedfromthefprecedingphaseandtwo-thirdsofstaff
recruiteddirectly,liketheresidentsupervisors themselves,underIndividual
contractsofemployment.
Duringthisphaseemphasiswasplacedmainlyonthefinancialandtechnical
supervisionoftheexecutionofprojectsandprogrammesfinancedbytheEDF:
Attheendof1975,these.localteamsweresupervisingannuallytheexecution
of100international invitations tenderand2000contractsofvariouskinds,
involvingtotaldisbursements of200millionunitsofaccount.Thevalueof
theseteamswasgenerallyacknowledged .

-3-
Atthat tine ,thdstaff oftheteams totalled 1-20expatriates ,78ofwhost
were university graduates orequivalent (like Astaff officials atthe Commissi ,
and 42were non-ejraduates (Bcategory ). Thestaff wasmainly technical :
11administrators !,asagainst 67civil engineers orarchitects ,30agricultural
and12financial experts . ;Inaddition tothis expatriate staff there wasa
total of320staff recruited locally -secretaries ,chauffeurs ,caretakers and
messengers (equivalent tocategories Cand DintheCommission ). Thesmallest
delegation employed twoexpatriates ,thelargest eight ,while theaverage was
about six .
*^However ,asCircumstances would have it,thenextphase began withtheappearance
ofnewforms ofaid (food aid,theCheysson Fund ,exceptional aidfrom budget
appropriations )dndtheassociated Governments' desire todeal with allaspects
ofcooperation with theCommunity andtheCommission .
(3)The administrative structure created 1n1964 ?the EAC
Tocarry outthealready considerable administrative tasks described above ,the
Commission in1964 chose astructure governed byprivate lawsince 1tdidnot
think itadvisable toenter thenecessary posts 1ntheCommission budget .
Under Belgian lawthis structure isconstituted astheEuropean Association for
Cooperation (EAC),anon-profit making association governed byinternational law.
«
TheAdministrative Council oftheEAC 1scomposed ofCommission officials ,under
thechairmanship oftheDirector-General forDevelopment .The EAC is
responsible ,under agreements concluded with theCommission ,forrecruiting and
managing notonly theresident supervisors andtheir staff butalso thetechnical
cooperation staff made available tothegovernments oftheassociated countries
attheir request /'and finally ,foradministering scholarship-holders and .
trainees placed inBelgian training establishments .
)
TheEACbudget andaccounts areapproved andchecked bytheCommission and
audited bytheAudit Board .Thehead office inBrussels hasastaff of40,
/ /

ofcategories A,8andC,whosetermsofemployswsnt,thoughobviouslydifferent,
canbecomparedtfiththoseoftemporarystaff.Theadministrative costof
thisheadoffice,financedbyagrantfromtheCommissionbudget,amountsto
nomorethan5%oftheEAC'stotaloperatingexpenditure,whichisfinanced
bytheEDF.
II.REASONSFORCHANGING THEEXISTING STRUCTURE
1.FvotutionaftertheLom6Convention
whiletheadministrative requirements relatingtotheextentofthetechnical
cooperation andtrainingprogrammesstillhadtobemet,theLom6Convention
wassignedon28February1975andcameintoforceon1April1976.It
considerably widenedthegeographical scopeofcooperation,trebledthevolume
ofaid-whichamounts .tomorethan3000millionunitsofaccountforfour
years-andenlarged,diversified andimprovedthevariousformsofcooperation *
VerylogicallythereforeandattheexpressrequestoftheACPStatesanew
phaseisemerging,theoutlineofwhichwasalreadyvisibleattb*endofthe
precedingphasfe:1naccordancewithaspecificprovisionofthe-om§Convention
thepostsofEOFresidentsupervisorwereabolishedandtheCommissionsetup
delegationsineachACPStateconcerned.TheDelegateswereofficially
responsibleforthewholerangeofrelationsbetweentheCommunityandthe
corresponding..ACP 'State,inparticularthevariousformsofcooperationdefined
bytheConvention (trade,industrialcooperation,salespromot"on,stabilization
ofexoortearnings,training,financialandtechnicalcooperation andalso
thoseprovidedforoutsidetheConvention (foodaid,specificmeasuresoutside
thetermsofConvention:meat,cereals,NGOs).However,theirrolen
relationtoprojectsandprogrammesfinancedbytheEOFremainsv<taljnd
isevengrowinginimportance:intheirdesiretodecentralize fromBrussels,
theDelegatesarebecominginvolvedintheappraisalandevaluationofprojects.
Economistswillthereforenowbeneededforthetaskofsupervisingamuatly
theexecutionof200international invitations totenderand5000contracts
ofvariouskinds,involvingatotalannualdisbursement of600millionunits
ofaccount.

In1976,1naccordancewiththeConventionandattherequestoftheACPStates,-
theCommissionincreasedthenumberofdelegetlonftfrom21to41.Itrecruits
thenewDelegates,establishestheirteams,transfersstafftoprovide3mixture
ofnationalities andusestheexperienceofsenior-stafftohelpnewemployees
settlein.Littlenowremainstobedonetocompleteanetworkofrepresentatic
which,whenfullyoperational,willcomprise250expatriatestaffofcategories A
andBand700localstaffofcategories CandD.
TheLom6policy1s,however,extendingtothelimitswhichwereS'.t.
InAfricaandthePacificothercountriesaregainingIndependence andacceding
totheConvention 1;inthesecountriesnewdelegationshavetobesetup.
Atthesametime,threeMaghrebcountries,IsraelandfourMashrekcountries
haveconcludeddevelopmentcooperationagreementswiththeCommunity.These
eightcountriesexpresslyaskedthatdelegationsbesetupandthiswas
acceptedinthe1977BudgetinthecaseofthethreeMaghrebcountries.
Inthe1978BudgettheCommissionhasproposedopeningfourdelegationsinthe
MashrekcountriesandadelegationinIsrael;creditshavebeenopenedtothis
effectinChapter100ofthebudget.Finally,theCommissionsendstechnical
cooperationexpertsanddevelopstrainingschemesoutsidetheassociatedcountries,
thepracticalproblemsinvolvedmustobviouslybedealt'iiithbythesameoffices.
2.RoleoftheCommissionDelegates
TheCommissionDelegates *are'concernedw1th:allaspectsofcooperationboth
withinandoutsidethetermsoftheassociationagreements;theirroletherefore
differsgreatlyfromthatoftheresidentsupervisorsoftheYaoundeConventions
andtheirtask1ssingularlymoredelicate#Forobviouspoliticalreasonsthe
spiritof"partnership"characteristic oftheLqm£policyistendingtoreplace
thesupervisoryrolebyanadvisoryone,althoughthisdoesnotmeanthatthe
monitoringo*the1executionofprojectsorsupervisionof.theproperuseof
Communityfundsaretoberelaxed.Andyetitisnotalwayseasytoreconcile
thesetwoideas.
Theextento*relationswiththeMemberStates®diplomaticmissions1sin*-.easing.
Thedeliberatelynorvdiplomat-ic styleofthedelegates^th6technicalnatureof
theiractivities/thepracticalandoperationalnatureoftheprogrammeswhich
t
t • /

fchs»ymenitorj),hev© helped greatly tocreate sodmaintain aclimate ofcooperation
which isdeveloping smoothly :systematic exchanges ofinformation onbilateral
andCommunity aid,joint visits toprojects financed byEuropean aid ,,inauguration ,
consultation .Since Lom£ this aspect has increased because theMember States
have stated that they wish toapprove Community schemes only after there has
been careful coordination with bilateral aid .
Events have also necessitated anetwork forthecoordination ofefforts with
those ofnon-member countries® aidorganizations (1nparticular those ofthe
Arab countries ,,butalso those oftheUnited States ,Canada ,etc.)and
international organizations ;here theCommission plays aleading role ,in .
Brussels viaitsdepartments andonalocal level viaitsDelegates ,The *
organization ofnumerous cofinancing operations with theIBRD,US,Candian,
Arab andMember States *aidhaseven enabled theCommission onanumber of
occasion totake thelead byusing EDFprocedures andtheDelegates' services
tomonitor ,onbehalf ofallproviders offunds ,theexecution ofcofinanced
projects .This trend iseven being accentuated ,forthenumber oflarge-scale
projects isincreasing ,while ,ontheother hand,theArab funds arenowmaking
their appearance andthey show confidence intheCommission ,whose "triangular ".
policy isknown andappreciated .
3.Rer.sons forchanging thestructure andprinciples tobeapplied
Atthefinal stage 'ofthis evolution ,1thastobenoted that theexercise of
such responsibilities bytheCommission anditsDelegates issomewhat surprising ,
ifnotabnormal when 1thastobedone through andunder theadministrative
control ofaprivate company .Itisalso shocking that because theAssociation
isaprivate company ,theCommunity must ,under common law,paytaxes toa
Member State onsums which come from thecontributions oftheother Member State ",
andwill infuture come from theCommunity budget (forthewages andsalaries
oftheEACstaff ,theDelegates ,services ,etc.). Clearly ,inview ofthefacts
ofthematter andthewayinwhich theAssociation hasevolved thestructure
mustundergo aradical transformation .Budgeti^ation ofCommunity development aid
begun inthe1976Budget withprovision foraidtonon-associated developing
countries ,followed upinthe1978Budget withaidtothecountries oftheMaghreb
andMashrek ,willbecompleted -bythebudgetization oftheEDFwhich isproposed by
theCommission initsmemorandum ontherenewal oftheLomeConvention .This can
onlyunderline theneedtoseftupanew "structure inaccordance withthree
fundamental principles .

-7-
<a>Whatever thtfresponsibilities assumed and .th*factions performed ,these
respor >sibiUties andfunctions areconcerned essentially withthe
representation ofpublic authority .What ismore,these responsibilities
andfunctions derive from aninternational treaty .Adirect hierarchical
linkofthekindprovided forunder theStaff Regulations musttherefore nc
becreated between theCommission Delegates andtheCommission itself .
Only apublic structure ,replacing aprivate association ,canenable such
anobjective 1tobeattained .
(b)Thispublic structure must,however ,preserve theadvantages which have
constituted thestrength andcontributed towards theeffectiveness ofthe^.
twelve -yearoldprivate organization ,namely flexibility andautonomy of
management .Experience hasshown thatthis isessential .Itisamatter
ofadministering ,from afar-between 5000and20000kilometres from
headquarters -arelatively small buthigh-quality staff inrespect of
which theavalanche ofminor day-to-daypractical problems canbeproperly
dealt withcnlybyaflexible andunderstanding organisation capable of
reacting immediately .
<C)finally *thisstructure mustallow aproper staff mobility policy tobe
organized ,forthebenefit oftheemployees aswellasoftheCommission
itself ,which willpermit osmosis between headquarters staff andthestaff
oftheoverseas branches .Heretoo,onlyapublic structure ,dependent
ontheCommission andorganized byit,canpermit thenecessary
interpenetration .
III.THENEWINSTRUMENT PROPOSED :THEEUROPE ANAGENCY FORCOOPERATION
Thewayinwhich theAssociation hasevolved -themainfeatures ofwhich have
beenoutlined -thereasons fortransforming theexisting structures andthe
principles tobeobserved indirecting thistransformation allcombine tojustif .
thenewstructure which itisproposed totheParliament andtheCouncil be
created :apublic Commission agency ,setupbytheCouncil onthebasis of
Article 235oftheTreaty ,which would havetoadminister thefollowing five
categories ofstaff :
-TheCommission Delegates ;"thefirst steps towards bringing themunder the
Staff Regulations applying toCommission staff wastaken withthecreation
inthe1977Budget oftentemporary posts andtheallocation ofthree posts
under the1978Budget /Thiscategory ofstaff willbeadministered directly
bytheCommission ,andtheAgency willmerely seetothepractical administrate

»8«
–Theadvisers andmembers ofthedelegations ^forwhom Itwould be
inadvisable tocreate adirect link with the Commission under the staff
Regulations byrequesting that thecorresponding 210posts becreated in
the list ofposts .These areexperts whose work requires them totravel
alotandwhose jobinvolves carrying outtechnical tasks oflimited
duration ;depending onthenature oftheprogramme tobecarried out in
each country orthestage reached intheimplementation ofthose programmes
they maybetransferred toanother country orgiven other duties
(technical cooperation made available toStates )orreplaced byother
experts with adifferent technical training .
-Technical cooperation experts placed atthedisposal ofStates receiving
Community aid,whotake their instructions from those States andwhocould
not therefore belinked directly totheCommission .
-Staff recruited inaccordance with the laws andregulations ofthe State9
inwhich they arerequired toperform their function andsubject tolocal
conditions pfemployment .
The^aTfoftheAgency he«dqudFfef^"ltave^ceOire~subJecl "ofsubmissions
totheCourt ofJustice suggesting that they berecognized ascivil servants
TheCommission will make proposals attheappropriate time taking account
ofthe verdict ofthe Court .
Inaddition ,theAgency willparticipate intheexecution oftheprogramme of
scholarships andtraineeships inBelgium ,andposfeibly inother European
countries ,fornationals ofthedeveloping countries ,inparticular w^hregard
totheaspect offollowing uptraining andthat ofwelfare :assignment to
educational establishments andenrolment ofcandidates ,organization of
trai ".toships ,travel arrangements ,receptionofscholarship-holders and
assistance infinding accommodation ,etc.
TheCommission therefore hasthehonour topropose intheAnnex adraft
Council Regulation .establishing aEuropean Agency forCooperation .

Thist-®ys'iomtheconditionsgoverning£hfestablishment oftheAgency^
•itsobjectives-whicharenodifferentfromthoseofthepresentAssocetion ■*
thecompositionofItsAdministrative Board,itspowersandthoseofits
director,itsresources,theconditionsgoverningtheestablishment oflis
budget,therenderingofitsaccountstotheParliamentandtheCouncil,the*
auditingofitsoperationsbyth.»CountofAuditorsandthelawapplicableto
contractsconcludedbytheAgencyunderthesupervision oftheCourtofJustice.
SincetheproposedbodywillbeaCommissionagency,setuptoenablethe
Commissiontoassumetheadministrative responsibilities Incumbentupon1tunde^
thecooperationagreementsconcludedbytheCommunity,thedraftCouncil
*• ... .....RegulationreferstoaCommissionregulationforthepracticaldetails.
Wainfeaturesoftheproposednewinstrument
(a)Underthepresentconditions,theAgencybudgetwillamounttoapproximately
30ailIionunitsofaccountperyear,sharedbetweenheadquarters e*pe«dHv?
(financedbytheCommissionbudget)andoverseasoperatingexpenditurefins:
bytheEOFuntilthebudgetizationofthelatterin1980,Headquarters
expenditurewillnotexceed5%oft^etotaloperatingexpenditure.
(b>TheAgencystaffwillincludethestaffofthe
Delegationsendthetechnicalcooperationstaffplacedatthedisposalof
Governmentsattheirrequest.Thearrangements appliedtoallthese
categoriesofstaffwiltbedeterminedbycontracts,theclausesofwhich
willbeestablished bytheAgencyandwillbesubjecttoapprovalbythe
Commission.

Theywillbebasedmainlyontheprovision**nfore©butwil*ofcourse
observetheprinciple ofmaintaining theadvantages acquired.
<c>Inshort,theAgencywillbenotsomuchanewcreation asthelegal
transformation ofanexisting instrument .Thestaffexistsandthe
budgetary resources havebeenearmarked.Theproposedreformdoesnot
therefore entailanyimmediate financial consequences ,exceptinthesenseof
reduction inexpenditure ,sinceasaresultofthetransformation ofthe
EACintoapublicCommission agency,taxespaidinBelgiumandother
MemberStatesin'theformoftaxontheincomeofthestaffofaprivate
companywillnolongerbepayable *
Φ
Thereformis,however,afar-reaching one.ItwillprovidetheCommission
withapublicstructureforimplementing apolicywhichispublicandnotprivate.
Itwillputanemdtoaparadoxbroughtaboutbycircumstances butwhihhas
beentotallycalledintoquestionbythecourseofevents,bythechangeinthe
forminwhichtheCommission isrepresented inthedeveloping countries,andby
theprogressive budgetization ofCommunity development aid.

COUNCILREGULATION
establishing aEuropeanAgencyforCooperation
THECOUNCILCPTHEEUROPEANCOMMUNITIES *
HavingregardtotheTreatyestablishingtheEuropeanEconomicCommunity,
andinparticularArticle235thereof,
havingregardtotheproposalfromtheCommission/
HavingregardtotheOpinionoftheEuropeanParliament,
WhereastheACP-EECConventionofLom6,and1nparticularProtocolNo2thereto,
hadledtotheopening1ntheACPStatesofforty-oneCommissionDelegations,
thestaffofwhichmustbeadministeredunderthebestpossibleconditions;
WhereassimilarDelegationswillbeopenedinothercountrieslinkedtothe
Communitybycomprehensivepreferentialcooperationagreements;
whereas,underor'independentlyoftheLorn*Conversion,theACPStatesand
otherdeveloping.countriesenjoyarangeoftechnicalassistanceandcooperation
schemesfinancedbytheCommunity,andwhereasitisnecessarytorecruitand
administertheextoertsresponsibleforexecutingthoseschemesandtoundertake
thepitacticalorganizationoftrainingschemes;
Whereas,inordertofacilitatetheCommissionstaskendensurethenecessary
flexibility,effectiveness andmobilityintheadministration oftheexperts
servingoverseas,aEuropeanAgencyforCooperationshouldbesetupintheform
ofaCommunitybodywithpublicstatusundertheaegisoftheCommission,from
whichitwillreceiveItsdirectives;
Whereasthepowers,requiredforthecreat'onofsuchanAgencyarenotprovided
forintheTreaty;
WhereastheAgencywillbesetupwithintheframeworkoftheEuropeanCommunity
andwillfunction1naccordancewithCommunitylawand1ncompliancewiththe

directiveswhichitreceive#fromtheCommission;whereastheconditions
underwhichcertaingeneralprovisionswillapplyshouldbedefined,
HASADOPTEDTHISREGULATION :
»
Article 1
AEuropeanAgencyforCooperation,hereinafterreferredtoas"theAgency",
isherebyestablished.
Article2
ψ
ThetaskoftheAgencyshallbetoassisttheCommissionIn:
(a)recruiting,installingandadministering experts:
~placedatthedisposalofCommissionDelegationsestablishedindeveloping
countriesWhicharelinkedtotheCommunitybycomprehensive preferential
cooperation agreements;
-whoaretoundertaketechnicalassistanceorcooperationtasksfinanced
bytheCommunityinfavourofthedevelopingcountries;'
(b)administering thelocally-recruited Delegationstaff;
<c>participating inexecutingtheprogrammeofscholarships andtraineeships
inBelgiumandpossiblyotherEuropeancountriesfbrnationalsfromthe
developingcountries,withregardtotheaspectoffollowinguptraining
schemesandthatofwelfare.
Article3
1.TheAgencyshallbenon-profit making.ItshallenjoyintheMemberStates
themostextensivelegalcapacityaccordedtolegalpersons.
2.TheseatoftheAgencyshallbeinBrussels.
Article4
TheAgencyshallComprise:
-anAdministrative Board, .'t • •'
-aDirector.

Article5
1.TheAdministrative Boardshallconsistofnotlessthanfiveandnot
morethanthirteenmembersdesignatedbytheCommissionandchosenfrom
withinitsstaff.
2.ThetermofofficeofmembersoftheAdministrative Boardshallbefive
years.Itshallberenewable.Upontheexpiryoftheirtermofoffice
or1ntheeventoftheirresignation,membersshallremaininofficeuntil
theirappointments arerenewedoruntiltheyarereplaced.
3.TheAdministrative Boardshallelectitschairman,adeputychairman,an
Administrator-Delegate andasecretaryfromamongItsmembers.
Article6
TheAdministrative BoardshallmeetasoftenastheInterestsoftheAgencyrequlrv
andatleastonceayear.ItsmembersshallbeconvenedbytheChairmanor
DeputyChairman.
Themembersshallbeentitledtoberepresented byoneoftheircolleagueswith
specialauthorization toattendthemeetinginquestion.Amembernayrepresent
onlyoneofhiscolleagues.
«
Λ
Article7
IftheChairmanlilunabletoattend,theBoardshallbechairedbytheDeputy
Chairmanor.Iftltolatter1sunabletoattend,bytheAdministrator-Delegate .
Article8
Fordecisionstobeadopted,notlessthanfiveofthemembers
DecisionsshallbOtakenbyasimplemajorityofthosevoting,
ofatie,theChairmanshallhavethecastingvote*mustbeoresent.
Intheevent

Article9
TheAdministrative Boardshalladsnir^stisptheAgency„whoseguidelines
itshalllaydown.
Itshalldecidewhethertoacceptanylegacy,donationorsubsidyfrom
sourcesotherthantheCommunity
Article10
ThedirectoroftheAgencyshallbeappointedbytheCommissionfrom«
011stofcandidatessubmittedbytheAdministrative Board.
Thedirectorshallbeappointedforamax1mumperiodoffiveyears..His
termofofficeshallberenewable.
Article11
ΜΜβΜΜΜΜαΜ
ThedirectorshallImplementthedecisionsoftheAdministrative Boardand
shallberesponsiblefortheday-to-dayrunningoftheAgency.Heshall
bethelegalrepresentative oftheAgency.
4
ThedirectorshallprepareandorganizetheworkoftheAdministrative Board.
Heshallparticipateinanadvisorycapacity4ntheworkoft^eBoard.
ThedirectorshallbeaccountabletotheAdministrative Beardforthe
runningoftheAgency.
Article12
t
By31Marcherfeachyearatthelatest/thedirectorshallprepareageneral
reportoritheactivities/financialsituationandfutureguidelinesofthe
AgencyandshallsubmitittotheAdministrative Board.
•After1t«adoptionbytheAdministrative Boardsthereportshallb<forwarded
totheCommission. *

Article13
TheAdministrative .Boardshalldrawup0balancedstatementofallrevenue
andexpenditureforearchfinancialyear,whichshallbethesameasthe
calendaryear.
Article14
TheAgency'srevenueshallcomprise:
-thesubsidyincludedunderaspecificentryinthebudgetoftheEuropean
Communities,
-thesubsidyauthorizedbytheCommissionfromtheresourcesoftheEuropear.
•Development Fund,
-anyotherresources.
Article15
1.TheAdministrative Boardshall,by31Marcheachyear,atthelatest,
sendtheCommissionanestimateofrevenueandexpenditure.Thisestimat .
shallbeadoptedbytheCommission whowillforwardittothebudgetary
authoritywiththepreliminarydraftbudgetoftheEuropeanCommunities .
2.TheCommission .wiIIalsoforwardthisestimate,fortheiropinion,tothe
EuropeanDevelopment FundCommitteesetupbytheInternalAgreementonthe
financingandadministration ofCommunityaid,signedon11July1975,
accompanied bythefinancingproposalcoveringtheDelegations' expenditure ,.
3.TheCommissionshalladopttheestimateofrevenueandexpenditurebeforet!/
beginningofthefinancialyear,adjustingittothesubsidiesgrantedby
thebudgetauthorities.

Articlelo
Withoutprejudicetotheprovisionsofthej^eneral
FinancialRegulation andoftheEDFFinancialRegulation ,
theprovisionsconcerningtheAgency'srelationswiththeCommissionandtheinternal
administrative andfinancialarrangements applicabletotheAgencyshallbe
thesubjectofaregulationadoptedbytheCommission,thetextofwhichshall
bepublishedintheOfficialJournaloftheEuropeanCommunities ..This
Regulationshalllaydowntheprinciplesgoverningthefinancialadministration
andtheexecutionoftheestimate,theauditingofrevenueandexpenditure,the
conclusionofcontracts,thekeepingofaccountsandtheinventoryofmovable
andimmovableassets.
Article17
1.Thegeneraltermsofemployment,thegeneralsystemofremuneration,
allowancesandadditionalpaymentsforstaffshallbedetermined,byanalogy
withtheprovisionsapplicabletothetemporarystaffoftheCommunities,
bytheCommission.
Article18
1.TheAdministrative Boardshallby31Marchatthelatestsendtheaccounts
ofalltherevenueandexpenditureoftheAgencyfortheprecedingfinancial
yeartotheCommissionandtotheCourtofAuditors.

\
-7-
Thelattershallexaminetheminaccordancewilththesecondparagraph
ofArticle206(b)oftheEECTreaty.
2.TheCommtssionshallsubmittheaccountsandthereportpftheCourtAudi-
togetherwithitsowncomments,totheCouncilandtotheEuropeanParliament
by31Octoberatthelatest.AdischargeshallbegiventotheAdministrati
Boardinrespectofthefinancialadministratfon oftheAgencyunderthe
procedurelaiddowninArticle206(c)oftheEECTreaty.
3#TheFinancialControlleroftheCommissionshallberesponsibleforchecking
thecommitmentandpaymentofallexpenditure andtherecordingandrecovery
ofallrevenueoftheAgency.
Article19
MembersoftheAdministrative Board,thedirector/thestaffandallother
personsparticipating intheactivitiesoftheAgdncyshallberequired,even
aftertheirdutieshaveceased,nottodiscloseinformationofthekindcovered
bytheobligationofprofessional secrecy.
* Article20
TheProtocolontheprivilegesandImmunitiesoftheEuropeanCommunltesshall
applytotheAgency.
Article21
1.ThecontractualliabilityoftheAgencyshallbegovernedbythelaw
applicabletothecontractinquestion.
»
)

»8-
.TheCourtofJusticeoftheEuropeanCommunitiesshallhavejurisdiction
inalldisputesbetweentheAgencyanditsstaffwithinthelimitsand
ontheconditionslaiddownin'theStaffRegulations applicabletothelatter.
••
2.Inthecaseofnon-contractual liability/theAgencyshall/1naccordance
withthegeneralprinciplestrsm*ontothelawsoftheMemberStates,ijiake
goodanydamagecausedbytheAgencyoritsstaffintheperformanceof
theirduties.
TheCourtofJusticeoftheEuropeanCommunitfesshallhavejurisdiction
indisputesrelatingtocompensation foranyOuchdamage.
0•
«0
Article22
TheAgencyshallbeplacedunderthesupervisionoftheCommission/whichwill
giveititsdirectives-
MemberStated/membersoftheAdministrative Boardandthirdpartiesdirectly
andpersonallyinvolvedmayrefertotheCommissionanyactoftheAgency,
whetherexpressorimplied/fortheCommissiontoexaminethelegalityofthat
act, •
ReferralshallbewadetotheCommissionwithin15daysofthedayonwhichthe
partyconcernedfirstbecameawareoftheactinquestion.
TheCommissionshalltakeadecisionwithinonemonth..Ifnodecisionhasbeen
takenwithinthisperiod/thecaseshallbedeemedtohavebeendismissed.
/

«
!'S
F
-9-
Article23
ThisRegulationdhallenterIntoforceonthethU»ddayfollowingits
publicationIntheOfficialJournaloftheEuropeanCommunities.
ThisRegulationshallbebinding1nitsentiretyanddirectlyapplicable
inallMemberStates.
Doneat
Φ·
FortheCouncil
ThePresident

FINANCIAL STATEMENT
1.UntiltheED?isbudgetized(i.e.untilfinancial1980),thecreation
ofaEuropeanAgencyforCooperationwillnotinvolveadditionalexpenditure
fortheBudget.Theadministrative expenditure incurrec"."bytheheadquarters
oftheexistingAECiscoveredbyaCommissionsubsidy(Article9340ofthe
Budget).TheheadquartersoftheAgencywillhefinancedinthesameway,
whiohunderpresentconditionswillmeanapproximately 2.6millionEUAfor
the1978Budget.Similarly,theoperatingexpenditureconcerningthe
delegationsintheMaghrebandMashrekcountriesandinIsraelhasalready
beenentered,andwillcontinuetobe,inArticle9431oftheBudget
(820,000EUAforfinancial1978,plus379,100EUAinChapter100).The
operatingexpenditureofthedelegationsintheACPcountriesiscoveredby
EDFappropriations .
2.TurningtheAECintoanofficialCommunityAgencywillmeanasavingfor
theBudgetsinceitwillputanendtothepaymenttoBelgiumoftaxespayable
onthesalariesofBrussels–basedstaff,towhomBelgianlawapplies.Gping
bythefiguresinthe1978Budget,some760,000EUAwillbesavedinthisway.
3.OncetheEDFisbudgetized(on1March1980),astheCommissionproposes
initsmemorandum onthefuturenegotiations fortherenewaloftheLome
Convention,theappropriations neededtofinancethedelegationsintheACP
countrieswillhavetobeenteredintheCommission'sBudget,inadditionto
thevolumeofaid.HowmanyACPStateswillsignthefutureConvention,and
thereforehowmanydelegationswillhavetobemaintainedoropened,isnot
yetknown,andsoitisnotpossibletosayexactlywhatthebudgetary
implications willbe,butsisaroughidea,thecostfor*'theEDFofrunning
41delegationsin1978is26.2millionEUA.