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Vol. 1983/0 020 
  
 
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Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the openi ng to the public of the historical archives of the European Econom ic 
Community and the European Atomic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), this f ile is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februar 198 3 über die Freigabe der historischen Archive der Europäischen  
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983,  
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003  
(ABI. L 243 vom 27 .9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit  
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COMMISSION OF THE EUROPEAN COMMUNITIES
C0M(83) 52 fin a l  
Brussels, 8 February 1983
Report from the Commission to the Council
on the possibLe inclusion of wood pulp in the lis t  of products covered 
by the system fo r the s ta b iliz a tio n  of export earnings (Stabex)
C0MC83) 52 fin a l

S U M M A R Y
O n  30 November 1981, the A C P  Co-Chairman of the Stabex 
Subcommittee requested that wood pulp be included in 
the lis t  of products covered by the system for the 
s ta b iliz a tio n  of export earnings (Stabex), set up under 
the Second Lom é Convention.
A  report to be forwarded to the Council sets out the 
reasons for which the Commission considers it 
inadvisable to include wood pulp in the lis t of 
products covered by Stabex.

Report by the C o r n m  i  v,ion on the possible inclusion 
of wood pulp in th" lis t of products covered by the 
system for the sta b iliz a tio n  of export earnings (Stabex)
1. In a  le tte r dated 30 November 1981, the A C P  Co-Chairman of the Stabex 
Subcommittee requested that wood pulp (NIMEXE code 47.01.02 to 47.01.79) 
be included in the lis t of products covered by Stabex, pointing out that 
th is product w as one of taose dealt with in the negotiations for the 
Second Lom é Convention.
2. O f the A C P  States, only Swaziland and Cameroon export wood pulp, and the 
la tte r country is mentioned simply for the records since the product 
accounts for only a  very small percentage of its  total exports (some 0.5%).
3. W o o d  pulp represents on average 1 6 %  of Swaziland's exports, including 2 %  
going to Europe ( it  should be pointed out in this respect that Swaziland 
is covered for "a ll d estinations"). A n  examination of the figures for 
the 1978-81 period reveals that the quantities and values are subject to 
what are in som e cases substantial variations (see Annex), which suggest 
that the cost of including wood pulp in Stabex would inevitably be 
considerable - p a rtic u la rly  as there is a  problem regarding ownership of 
the firm  (see point 5  below) which, if  not solved s a tis fa c to rily , m ay 
jeopardize its  p r o fita b ilit y  in the future.
4. Only one production unit manufactures wood pulp in Swaziland. It produces 
mainly unbleached chemical deciduous or coniferous wood pulp and is one of 
the few plants in the world to m ake this type of product, which is a  raw 
material used in the manufacture of paper and, unbleached, is also employed 
for making boxes, cement bags and wrapping paper.
If the unbleached wood pulp were bleached it would be possible to obtain 
more elaborate products but bleaching is d if fic u lt in Swaziland as this 
process requires a  lot of water, of which there is not enough in 
Swaziland, and also presents environmental problems (disposal of the s a lt).
5. The cost of including wood pulp cannot be assessed without taking into 
account the financial results obtained by Stabex for 1980 arid 1981. These 
f ir s t  two years covered by the Second Lom é Convention witnessed two major 
reductions in transfers to the A C P  States, as a  result of the shortage of 
Stabex funds.
In these circumstances, the Commission feels that any request for the 
inclusion of new products must be examined even more carefully to avoid 
an excessive increase in the cost of transfers at a  time of continuing 
uncertainty as to how  the prices of the most important commodities w ill move.

-  2 -
6. The unit which produces wood pulp in Swaziland belongs to two companies 
which wish to dispose of th e ir shares, one because i t  considers that it  
has accomplished its  task as promoter, and the other because it  wishes to 
withdraw from the wood pulp production sector.
O n e  prospective buyer has com e forward, namely a  large South African 
m ultinational, but negotiations between it  and the Swaziland authorities 
have reached complete deadlock for the foreseeable future.
Since th is sale m ay well go through, the Community must examine the 
a d vis a b ility  of providing a  Stabex guarantee to what might, above a ll,  
be a  foreign legal person.
7. The market in wood pulp lias an o lig o p o lis tic  structure, which means that 
the system could be improperly applied. B y way of example, the unit 
values of exports to seven Member States of the Community in 1978 ranged 
from 153 to 248 emalangeni (Swaziland's national currency).
Indeed, the inclusion of wood pulp (and of manufactures in general) would 
com e up against identical problems to those raised at the time by the 
inclusion of mineral products in Stabex.
8. B y way of conclusion, the Commission proposes, on the basis of the 
arguments set out under points 5  to 7  above, that the A C P  States' request 
for the inclusion of wood pulp in the lis t  of products covered by the 
system for the s ta b iliz a tio n  of export earnings should not be granted.

Annex
S ta tis tic s  o r, exports of wood pulp from Swaziland
11. Quantities
Total of which to the E E Cof which to the 
Republic of South Africa
1978
1979
1980
1981161 429 
161 266 
98 626 
156 56623 501 
20 281 
15 274 
15 87030 479 
35 454 
57 129 
26 871
2. Values
1978
1979
1980
198126 732 251 
39 781 620
27 617 651 
45 138 7974 031 882 (15.08%)' 
7  910 218 (19.88%)
3 727 338 (13.50%)
4 440 960 (  9  .84% )4 858 462 (18.17%) 
7 682 808 (19.31%) 
17 500 106 (63.37%) 
10 278 700 (22.77%)
1In metric tons
2In emalengem
^ The figures in brackets indicate the value as a  percentage of the to ta l value,