ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(80)212
Vol.1980/0066

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InÜbereinstimmung mitderVerordnung (EWG, Euratom) Nr.354/83 desRates vom 1.
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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(80)212 final
Brussels ,29th April 1980
COMMISSION COMMUNICATION TOTHE COUNCIL
pursuant toArticle 29oftheInternal Agreement on
thefinancing andadministration ofCommunity -aid
.REPORT
ontheoperation during 1978 ofthesystem setupby
theLomé Convention forstabilizing export earnings
r
COM (80)212 final

INTRODUCTION ' '
, f • « '
1.Under Artiole 29oftheInternal Agreement onthefinanelng and
administration ofCommunity aid ,theCommission "shall prepare anannual
comprehensive report ontheoperation ofthesystem (forstabilizing export
earnings ),indicating inparticular itseffect ontheeconomic development
oftherecipient countries andonthedevelopment ofexternal trade ".
2.This comprehensive report isconcerned with theapplication ofthesystem
during 1978 totheACPStates signatory totheLome Convention andsupplements
theprevious report ,which wasfor1977 *Italso gives information about -
operations relating toformer OCTs that have acceded totheLome Convention ,
butwhich ,asfarasthesystem forthestabilization ofesport earnings is
concerned ,arestill covered bytheOCTallocation . .
3.Thecooperation machinery described inthefirst comprehensive reports
hasbeen functioning satisfactorily onthewhole andhence does not call
foranydetailed remarks .
' ' >
' ' ' '
4.Inthis report theCommission will examine inturn : ,
theactivities oftheACP-EEC institutions andthedevelopment ofthesystem ;
thefourth year ofapplication ofthetexts andtheresults ;
theeffect of -thetransfers ontheeconomic development oftherecipient
countries andonthetrend offoreign trade .
5.However ,onthis last point ,the -information currently available tothe
Commission ontheusemade of1977 transfers istooincomplete forany
detailed study tobepossibly .Aspecial report will therefore beprepared
onthis subject induecourse .

PART ONE :ACTIVITIES OFTHEACP-EEC INSTITUTIONS ANDDEVELOPMENT OPTHE
SYSTEM
Chapter One ;Activities ofthe Institutions
g1TheACP-EEC Subcommittee ontheStabilization ofExport Earnings
6.TheACP-EEC Subcommittee which deals with theStabex system didnotmeet
in1979 .Thetwooutstanding issues were dealt with bytheACP-EEC Council
ofMinisters .
9
|2TheACP-EEC Committee ofAmbassadors
7.Atitsmeeting on7March 1979 »theCommittee ofAmbassadors agreed to
refer thefollowing matters totheACP-EEC Council ofMinisters :
(i)theinvitation totheCommission ,under the "good offices "procedure ,
toappraise three requests fortransfers relating to1975*' »
(ii)arecommendation concerning theinclusion ofsesame seeds intheStabex
list asfrom 1January 1979 *
Asregards theother products which theACPStates hadrequested should be
included inthe list ,itwasagreed torecommend that afurther look betaken
attheproblems involved with aview toachieving asolution within the
framework ofthenegotiations ,,
§3TheACP-EEC Council ofMinisters
8.TheACP-EEC Council ofMinisters ,which metinFreeport (Bahamas )
on22March 1979>approved therecommendations oftheCommittee ofAmbassadors
referred tointhepreceding paragraph .
Onsesame seeds (NIMEXE heading 12.01-68 ),the Council ofMinisters ,following
anACP-request for the inclusion ofthis product inthe Stabex list asfrom
1January 1978 ,decided toreturn thematter totheCommittee ofAmbassadors ,
with directions toexamine thepossibility offixing this date incompliance
with the ACP-States' request .
seethe 1977 report (C0M(79)277 ,§§14and 1^)fordetails regarding theprac­
tical implementation ofthis decision .

-3-
9«AtitsmeetinginLomeon31October1979»theCouncilofMinisters
decided,pursuanttoArticle18(2)oftheLomeConvention,toauthorize
theadvanceutilizationofpartoftheannualinstalmentearmarkedfor1979
for1978transfers#
g4TheCourtofAuditors
•10.Initsannualreporton1978,theCourtofAuditorsexaminedthe
administration ofthesystemduring1977*TheCourt'sremarksandthe
Commission'srepliescan"befoundinAnnex4"tothisdocument.
11.TheCourthasalsopreparedaspecialreportonthesystemasawhole,
onwhichtheCommissionhasgivenitsviews*
•\ ' *
ChapterHiDevelopment ofthesystem:accessionofnewStatestothe
Convention •
12•Thescopeofthesystemhas"beenwidenedwiththeaccessionofafurther
StatetotheLomeConvention# However,theaccessionofKiribati
on30October1979cannotbesaidtoconstituteanenlargementinthetrue
senseofthetermsincethisStatewasalreadycoveredbythesystemsetup
fortheOCTsandwillvcontinue tocomeundertheOCTallocation *
Priortoindependence ,KiribatiwasrecognizedbytheEECCouncilofMinisters
asoneofthecountriesthatarenotrequiredtohelpreplenishthesystem's
resources.Thisdecision,takingeffecton1January1979tplacesKiribati
amongtheStatesreferredtoinArticle48(2)'oftieLomeConvention.

PARTTWO:FOURTHYEAROPAPPLICATION OFTHETEXTSANDTHERESULTS
Chaxitei^On^:Ajjplicationofthetex-Ls
i1Closureoftheaccountsforthe1977financialyear
13.In1978Ugandarequestedatransfertooffsetadropinearningsfrom
cottonexportstotheEECin1977*Onappraisal,itwasfoundthatthe
"basesusedforcross–checkingthestatisticsforthetransferrequests
for1975and1976werenolongeravailable,mainlybecausetheMombasa
departmentwhichhadcentralizedthedataforthethreememberStatesof
theformerEastAfricanCommunityhadceaseditsactivities.
Itwasthenfoundthattheimplications ofthisnewdevelopment were
sufficiently far-reaching towarrantadjustingthebasesforthecross-checking
ofstatistics,whichinturncouldaffectthesizeofthetransfer.
Asitseemedunlikelythatthismattercouldbesettledconclusively
by31December1978,itwasdecidedthatfundsshouldbeputinreserveso
astoavoidtheamountrequiredforthetransfertoUgandabeingautomatically
carriedforwardtothe1978instalment.
Eventually,inJune197^,newbasesforcross-checking wereagreedon,
resultinginatransferof1287985EUA.Thevolumeoftransfersfor1977
thustotalled33729731EUA,and154813887EUAwascreditedtotheannual
instalmentfor1978.
§2Replenishment oftheresourcesmadeavailabletothesystem
14.Regardingthereplenishment ofresources,theCommission,inaccordance
withArticle21(3)oftheLomeConventionandwiththepracticalarrangements
containedinthelettersexchangedwheneachtransferismade,hasmadethe
necessarycalculationsinrespectofthetransferseffectedfor1975»1976

-5-
und1977 tocountries that arerequired tocontribute tothereplenishment
ofthesystem 'sresources andwhich have notmade therequisite refunds .
These calculations revealed that theconditions setbytheConvention for
triggering offtheresources replenishment process hadbeen metinnone of
these cases onthebasis ofthe 1977 results *TheACP States concerned
have been notified ofthis inwriting .
15.The 13761EUAstill owed bytheRepublic ofCameroon asaresult of
itspaying agent misinterpreting apayment order issued byitsauthorities
hassince beenreceived bytheCommission ^. \
S3Six-monthly advances (financial 1979 )
16.Pour requests foradvances were received from three ACPStates under
Article 19(6 )oftheConvention :
(a)Mali (groundnuts ,inshell ):this request wasrefused onthegrounds
that thebulk ofthecountry 'sexports ofthis product were made
towards theendoftheyear ,thus making itextremely diffioult to
assess anyadvance without risking therecurrence ofoverpayments ;
(b)~Gambia (groundnut oilandoilcake ):theCommission deoided topayan
advance of3692000EUA :
y
■ •■1
(o)Dominica :following thetotal destruction ofthis country 'spotential
banana exports inthewake ofHurricane David (August 1979 )»the
Commission allocated itanadvance of2480000 ECJAinSeptember 1979 *
§4Requests refused (financial 1978 )
17*Eight transfer requests were refused ,onthefollowing grounds :
(a)Four requests (Madagascar :coffee ;Ethiopia :cbffee ;Ethiopia :
rawhides ,skins andleather ;Central African Republic :wood inthe
rough )because 1978 export earnings from sales oftheproducts concerned
toalldestinations were higher onaverage than export earnings toall
2destinations forthereferenoe period 1974–77 •
See1977 report ,p.7,B19(C0M(79)277 final of30May1979)« >
2Idem .,pp8-9,§§24(c )and25* •

(b)Three requests (Niger :groundnuts ,inshell andgroundnut oiland
oilcake ),because the2.5% dependence threshold canbesaid tohave
been reached only if1977 export earnings forallthree products
are taken together .
This practice ,known as"globalization ",hasbeen applied inonly two
ofthe 107cases dealt with during thefirst four years ofapplication .
Itistherefore clear that ,farfrom being automatic ,globalization has
been treated asanexceptional device ,intrinsically difficult to
implement andonly toberesorted toinvery special circumstances ,
such asthedrought situation with which theRepublic oftheNiger had
tocontend in1975 *
TheLom6 Convention rule here isthat each product must beexamined
individually .Consequently thedependence threshold foreach product
onthe list must becrossed before atransfer can beconsidered .This
isborne outbythefact that ,during theLomd IInegotiations ,the
Contracting Parties felt itnecessary toagree onaformula whereby
each ACP State would beable tochoose ,whenever itapplied fora
transfer ,between theproduct -by-product approach and .globalization .
That itseemed necessary tomake provision for this option demonstrates
that itwas not the rule under Lom€ I.
(c)One request (Gabon :wood intherough ),because therelevant
thresholds had not been crossed .
§5Application ofArticle 17(1 )
18.The Commission cont.inu.ed toapply therule whereby the same basis is
used for cross-checking statistics for allrequests from countries
concerning products that have already been thesubject ofcross-checking
for 1975 ,1976 or1977 .
19.Inresponse toaninvitation bytheCouncil ,theCommission hasdrawn
upoross-checking records for alltransfer requests from countries that had
notyetreceived atransfer orrelating toproducts forwhich notransfer
hadpreviously been requested .

IntheCommission 'sview ,such records areunnecessary where useismade
ofbases forcross-checking "that have been approved inthepast orin
oases where ,cross –oheoking iscarried outonthebasis ofCommunity
import statistics .
§6Application ofArticle 17(4 ) '
20.Five ofthecountries covered bythesystem fortheir exports
irrespective ofdestination received atotal of6.43$ ofthetransfers made
for1978 :Cape Verde forbananas ,Guinea-Bissau forgroundnuts ,Samoa for
cocoa ,Swaziland foriron oreandTonga forbananas .
21.Cape Verde andGuinea-Bissau arecovered both byArticle 17(4 )and
bytheDeclaration made attheACP-EEC Council meeting inApril 1977 on
thereference period .Ifitwere notforArticle 17(4),these States ,
which used toexport almost exclusively toPortugal ,could notqualify for
thesystem .Also ,along period ofdrought inthecase ofCape Verde and
Guinea-Bissau 'sstruggle forindependence meant that anymeaningful
reference basis forquantities wasnon-existent from 1971 to1975 andeven
1976 .Forthese reasons ,theCommission ,taking asabasis theDeclaration
adopted inFiji onthereference period ,felt that itwasequitable andin
accordance with thespirit ofthesystem toextrapolate thereference :
quantities from thequantities exported byCape .Verde andGuinea-Bissau in
thepast .Hence thereference levels include thequantities forthe
years 1968-70 and1977 andtheunit values forthenormal reference period ,
1974-77 . .
87Article 19(4)(a )and (b),
22. (a)Initsexamination ofthetransfer requests presented ,the
Commission has notfound that any "fall inearnings ...istheresult of
atrade policy measure oftheACPState concerned adversely affecting
exports totheCommunity inparticular ...". Ithastherefore notbeen
vnecessary toapply Artiole 19(4)(a ). \

23.(b)TheCommission,havingfoundsignificantchangesinits
examination ofthetotalexportsofanumberofapplicantStates,held,
consultations witheightofthem,whichledtoareductioninthetransfer
forthereasonsgivenbelow:
(i)Tanzania(rawsisal):theproportionofexportstotheEECdropped,
in1978,to40.2$oftotalexportsofthisproductcomparedwithan
averageof49*4%fortheperiod1974-77*However,after
consultations ,thetransferwascutbyonly2.51%insteadofthe
arithmetical reductionof9®2%as
–Communitydemand,waslowin1978,
-Tanzaniahadmadenotableeffortstostepupitsexportstothe
Communityin1978comparedwith1977»despiteadropinunitvalues
owingtotheaggressivetradepolicybeingpursuedbyonemajor
LatinAmericanproducer;
(ii)Liberia(ironore),Chad(cotton),Togo(ooffee):compensation was
limitedtothedropinearningsfromthoseexportstoalldestinations
(iii)Benin(palmnutandkerneloil):dropinexportsin1978compared
withtheaverageshareofproductionexportedduringtheperiod
1974–77»resultinginareductionof10.4%;
(iv)Uganda(tea):owingtothedeclineinthevolumeoftraditional
exportstotheCommunityduringtheyearofapplicationinrelation
tothereferenceperiod,thebasisforthetransfer(5170730E5JA)
wasinitiallyreducedto2953004EUA.
However,totakeaccountofthelowerunitvaluesforsalestoother
markets,whichhadbecomenecessaryasaresultoftheshrinkingof
theCommunitymarket,thereducedamountwasincreasedby929920EUA,
sothatcompensation infactcameto3882924EUA;
(v)Sudan(groundnuts,shelledornot):thebasisofthetransferof
15279336ELJAwasreducedto9325911ECJAsoastotakeaccountof

–aninoreaseinthequantitiesofpressedseedsinSodan
(2036738EDA), .
-theimpactofthedevaluationoftheSudanesepound(3916687EUA);
:(vi)Swaziland(ironore):theformulawherebyforeigncurrencysavings
resultingfromtheclosureofminingoperationsaredeductedfrom
the"basisforthetransferwasappliedinthiscase*However,an
upwardadjustmentwasmadetotakeaccountofexpenditureinforeign
currencyoccasionedbythecontinuation ofexportsoforestockedat
themine-head.
ChapterII:Theresults , ' »
§1Overallresults ,
25*ThefourthyearofapplicationoftheStabexsystemwasareoordyear
onthreecounts: .
(i)thenumberoftransferdecisions(23inrespectofStatesbenefiting
fromtheLom£Conventionappropriation ,increasedtotakeaccountof
accessionstotheConvention)plusthreetransferstoACPStatesthat
hadaccededtotheConventionunderArticle89i
(ii)thevolumeoffundstransferred:163960618EUAfromthe"Lom6"
appropriation ,plus268323EDAfromthe"OCT"appropriation ,making
atotalof164228941EUA;
(iii)thenumberofproductscovered:14*
1
26.Theoverallresultsareasfollows:

TRANSFERS FOR1978
A.RESULTSOPTHE1979OPERATION BYACPSTATE
RECIPIENT ACPSTATE PRODUCT AMOUNTOFTRANSFERINEUA
Bénin Palmnutandkerneloil 3728394
M Cotton 880982
CapeVerde Bananas 429500
CentralAfricanRepublio Cotton 3079660
Gambia Groundnuts ,shelledornot 2488664
Guinea-Bissau Groundnuts ,shelledornot 3591506
Uppervolta Cotton,notcardedorcombed 2340590
I! Groundnuts ,shelled ,ornot 2890160
Liberia Ironore 7586943
Mali Groundnuts ,shelledornot 3893256
Mauritania Ironore 33394848
Uganda Tea 3882924
tt Cotton 3125543
Rwanda Pyrethrum 608802
Samoa Cocoa 780625
Sénégal Groundnutoil 49882295
tv Groundnutoilcake 15224094
Tanzania Rawsisal 5472645
Chad Cotton 4671608
Togo Coffee 946290
Tonga Bananas 244919
Swaziland Ironore 5490459
Sudan Groundnuts ,shelledornot 9325911
163960618
B.RESULTSOFTHE1979OPERATION FORTHEACPSTATES
ACCEDINGTOTHELOMfiCONVENTION UNDERARTICLE89
RECIPIENT ACPSTATE PRODUCT AMOUNTOFTRANSFERINEUA
Comoros
TuvaluCopra
Cloves
Copra39253
180299
48771
268323

-.11-
§2Resultsbycountry
' •«.
26.Thesumof91267286EUA,i.e.55.66$,waspaidtoleastdeveloped
ACPStateswhicharenotrequiredtocontributetowardsthereplenishment
oftheresourcesmadeavailableforthesystem.Forthefourfinancial
yearstakentogether,grantsaccountfor61.88$ofpayments.
ι -
27.AsregardsthetwotransferstoSenegal,itshouldbenotedthat
(i)inthecaseofgroundnutoil,Senegaldecidedtomakeonly'75$
useofitstransferright,
(ii)forgroundnutoilcake,3millionEUAwas.deductedfromthebasis
forthetransfersoastomakeallowanceforthepurchasebythe
Senegaleseauthorities ofoilcakeforthecountry*scattlewith
3millionEUAallocatedtoSenegaltinderArticle59of"the
LomeConvention .
13Resultsbyproduct
*
28.Fortheindividualproductstheresultsareasfollows(excluding
theStateshavingaccededtotheConventionunderArticle89whichreceived
transfersfor-copraandcloves):
■> , , . .
(a)Products ' AmountsinEUA
Groundnuts <22189497 13.53
'Groundnutoil 49882295 30.42
Groundnutoilcake 15224094• 9.29
Cocoa ,780625 . ..."O.48
Coffee 946290 O.58
Cotton 14098383 -8.60
Palmnutandkerneloil 3728394 2.27
Bananas 674419 0.41
Tea 3882924♦ 2.37
Sisal 5472645 '3.34
,Ironore . 46472250 '28.34
Fyrethrum 608802 O.37
163960618 100.00
(b)Ofwhich,productsaffectedby:
theeconomicsituation 40981791 24.99
\ . ·
localcontingencies 122978827 75.01.

-12-
29.Onlyoneproduotwasaffectedbytheeconomicsituationinmorethan
onecountry:ironore,exported "byLiberiaandMauritania.Swaziland *s
problemsareduetolocalcircumstances ,i.e.thedifficultiesinvolvedin
ensuringasmoothflowoforefromthemine-headstockpiletoMaputofor
shipment.
30.Amongotherlocalciroumstanoes ,particularmentionshouldbemadeof:
(i)climaticconditions(Senegal,Mali,UpperVolta,CapeVerde,Benin
andTonga),
(ii)thestagnationofproduction(Benin,CentralAfricanRepublicand
Uganda).
31.Theindividualandaggregateresultsforthefirstfouryearsof
applicationaregiveninanannextothisreport.Theseshowthatthe
systemisperformingitsdualtaskefficiently ,givingprotectionfrom
thevagariesoftheeconomicsituation–wherenecessary–andfromfalls
inearningsresultingfromadropinproductionduetolocalcircumstances .
32.§4Financialresults
Bywayoffinancialresults,accountshouldbetakenofthefollowing:
(i)thedataontheCommunitycurrenciesdrawn,giveninAnnexes1Aand
1B,
(ii)theoverallfinancialresultsforthefirstfouryearsofapplication ,
(iii)theinformationgivenbelowunder3onthefundstobecarriedover
to1979-

-13
FINANCIALRESULTSOFSTABEXTRANSACTIONS WITHTHE
ACPSTATESATTHEENDOFFINANCIAL1978
Appropriâtions
11•75instalment
76instalment
77instalment
78instalment75.000.000
75000.000
76666.667
76666.667
303333334
12.'Replenishments
Cameroon
Fiji.
13.Drawingson1979instalment
Total463558
615140
1253399
+2.332097
305665431
+15333333
32099ü764
Expenditure
21.Financial1975
22.Financial1976
23.Financial1977
AvailableforFinancial197°
24.Financial1978
Transfers
Balancetobecarriedover
to1979instalment79.985,877,
.37135.936
33729i/31.
I-
163960618-1S0851.544
-170147220
-163960618
6186602

-14-
PART TURKS :EPFHOT CFTRANSFERS ONTHE ECONOMIC DEVELOPMENT OFTHE
RECIPIENT COUNTRIES AND ONTHE PATTERN OPFOREIGN TRADE
Chapter One :Effect onthe economic development ofthe recipient countries
S1Economic impact oftransfers
33.The relative size ofthecontribution made bytransfers effected
under this system inrelation tothe export earnings ofrecipient countries
varies according tothe extent ofthelosses sustained ,the share ofthe
country 'soverall exports accounted forbytheproduct orproducts
concerned andthestructure oftheexports (Community share oftotal
exports ).
Inantunbei' ofcases ,thecontribution reaches remarkable proportions .
Thus transfers ,expressed asapercentage oftotal export earnings (all
products ,alldestinat ions ,for 1977 »calculated inEUA),were asfollows :
Tuvalu 89.00%
Mauritania 44.39$
Guinea-B lscau 37.12%
Mali 27.61%
Benin (twotransfers ) 16.91%
Senegal (twotransfers ) 15.18%
Upper Volta (twotransfers ) 10.77%
34.The impact ofthetransfers obviously stands outfarmore clearly
when onelooks atthetransfers made for aspecific product andthe export
earnings (alldestinations )corresponding tothat same product (1978 ).
The following percentages illustrate this :

-15
Mali(groundnuts) 158.76%
Tuvalu(copra) 153.85%
Tonga(bananas) 150.1%
Senegal(groundnutoil)122.44%
Guinea-Bissau (groundnuts)94.59%
Senegal(oilcake) 78.18%
Mauritania(ironore) 46.87%
Samoa(cocoa) 28.72%
Tanzania(sisal) -23.04%
Thesedatarevealtheextentofthecompensatory flowsprovidedbythe
systemforthesectorsinquestionandconsequently oftheguaranteein
respectoftheACPStates*exportearnings,particularlyfortheleast
developedamongthem.
12Utilizationoftransfers(financial1977)>.
35.TheinformationavailabletotheCommissionregardingthisheading
atthepresentstageisstilltooincompleteforadetailedstudytobe
possible.Aspecialreportwillthereforebepreparedonthissubjeot
induecourse.
ChapterII:Effectonthepatternofforeigntrade
1 .
t
36..Forthereasonsgivenabove,itisimpossibleforthetimebeingto
/
commentontheeffeotsthetransfersmayhavehadonthepatternof
foreigntradein1978.-
CONCLUSION
37.1978wasarecordyearfortheStabexsystemintermsofthenumber
oftransferdecisionstakenbytheCommission^,thevolumeoffunds
transferred,thenumberofproductscovered,and,asshownin
ii34and35»theeconomioimpactofthetransfers..
1Forthefouryearsofapplicationtakentogether,107transferdeoisions
havebeentaken–85forACPStatesamongtheoriginalsignatoriesofthe
LomeConventionand22forACPStatesthathaveacoededtotheConvention
underArticle89andOCTs. '
* ··>

-16-
38.Inaddition,thesystemhascontinuedtodevelop:
(i)afurtherproducthasbeenincluded,
(ii)a"goodoffices"procedurehasbecomeoperative,
(iii)recoursehas"beenhadtoaprovisionofwhichnousehadpreviously
beenmade,viz.thepossibility ofdrawingontheinstalmentfor
thefollowingyearofapplication .
39.Thestagehasnowalmostbeenreachedwhenanattemptwillhaveto
bemadetoassesstheimpactofthetransfers.Thismightbedone
aftercompletionoftheoperationsrelatingtothefifthyearof
application-1979–intheformofcasestudiesofoneortwocountries
whichhavereceivedlargetransfersforaparticularyearandoftwoor
threecountrieswhichhavereceivedtransfersforoneormoreproducts
throughoutthelifeoftheLomeConvention.
40.Inadditiontotheoperationsconnectedwithimplementation ofthe
systemfor1978*1979alsosawtheconclusionofthenegotiationsforthe
newLomeConvention .
AsfarastheStabexsystemwasconcerned,thesenegotiations wereguided
toagreatextentbytheexperiencederivedfromthefouryearsof
application oftheexistingsystem,assetoutintheannualreports.
Annex5containsasynopsisofthesystemasitwilloperateinthefuture,
seeninrelationtothesystemthathasexistedtodate.

BREAKDOWN OPSTAEEX TRANSFERS FOR 1978 ACCORDING
TOCURRENCY REQUESTED BYACP STATESANNEX 1A
, ACP State ProductAmount of
transfer in
jEUA (100% )! . .
French
francDeutsche
markPound
'sterling
l ,Belgian
francDu'
guilder
Bénin x Palm nut ,and kernel oil
Cotton3728 394
880 982X
X »
Cape Verde Bananas 429 500 X
Central African Republic Cotton 3079 660 X
Gamibia Groundnuts ,shelled ornot 2488 664 X
• '· ι
IGuinea-BissauGroundnuts ,shelled ornot 3591 506 X
Upper Volta Cotton ,notcarded orcombed
Groundnuts ,shelled ornot2340 590
,<
2890 160%■X
X
Liberia Iron ore 7586 943 X
Mali Groundnuts ,shelled ornot 3893 256 X
IMauritania Iron ore 33394 848 X
Uganda Tea
Cotton3882 924
3125 543X
Χ
Rwanda Pyrethrum , 608 802 X
Samoa . Cocoa 780 625 X
ISénégal Groundnut oil
Groundnut oilcake49882 295 X
15224 094 X
Sudan Cotton 9325 911 X ■
Swaziland Iron ore "5490 459 X
Tanzania Raw eisal 5472 645 X
Chad Cotton 4671 608
Togo Coffee 946 290
ιX
Tonga Bananas ^ 244 919 X
l

1Includinga1.51millionHJAadvance,paidinNovember1978
2Includinga16millionEUAadvance,paidinJuly1978.
"^Includinga3millionEUAadvance,paidinJuly1978.
^Includinga160000EUAadvance,paidinNovember1978.ANNEX1A(con-td)

x ANNEX1B
BREAKDOWNOFSTABEXTRANSFERS FOR1975*1976,1977AND*
1978ACCORDING TOCURRENCYREQUESTED BYACPSTATES
i
–– 1
CurrencyAmountsinEuA
1975" 1976 %'L_1977r-* !1978.L* iTotalX
Frenchfranc 49828615j
|62.301702447245.841969974958.40119291933 i72,7620587077065.40
Deutschemark I2695458733.70.
11,972565
1 ■■32.24612116818.153531392521.548031724525-51
Poundsterling1220519 1.53615089416-56790881423.45 35142082.14187944355.97
Beleianfranc 19821552.478484892.28>•-
58395523.568690196?'76
Dutchguilder11395163.0711395160.36
TOTAL 79985877!
100.0037135936100,0033729731100.00163960618I
\100.00 :314812285100.00I

AMEX2
CUMJLATIVE TRANSFERSFOR1975,1976,1977AM)1978
(AmountsinEUA)
I.CUMULATIVE RESULTSBYACPSTATE
ACPState Product Amount1975Amount197"Amount1977Amount1978 Total
BENIN
TotalGroundnuts
Coffee
Cotton
Oilcake
Palmoil
Palmnutandkerneloil464330
1174883
4299556
11910792750347
7655762083137
1467364
1211826880982
3728394464330
1174883
10014022
1191079
2232940
4940220
7129848.3515923 4762327 460937620017474
BURUNDI
TotalCotton
Rawhidesandskins965602
520053965602
520053
1485655 1485655
CAMER00N
TotalWoodintherough
Cocoapaste3601423
4635583601423
463558
3601423 463558 4064981
CENTRALAFRICAN
REPUBLIC 1
TotalCotton
Coffee
Sawnwood353108
5498073079660!3079660
353108
549807
353108 549807 30796603982575I
ACPStatesreferredtoinArticle48oftheLom£Convention *

ACPState Product , Amount1975Amount1976Amount1977Amount1978Total
CONGO Woodintherough 73616777j61677
IVORYCOAST Woodintherough 1500000015000000
ETHIOPIA
TotalCoffee
Rawhidesandskins9339684
5080365,9339684
5080365
1442004914420049
FIJI Coconutoil .6151401499834 2114974
GABON woodintherough 670331167033i1
GHANA Woodintherough 51764085176408
UPPERVOLTA
TotalGroundnuts
Cotton,685239
17593611699772890160
23405904745376
2516526
861175. 11699775230750 7261902
MALI
TotalCotton
Gumarabic
Groundnuts1145004
848489
38932561145004
.848489
3893256
1145004848489 I3893256 5886749
NIGER Groundnuts
Rawhidesandskins
Groundnutoil
Oiloake5441294
507747
6755991
1532692412379
73832807853673
'507747
14139271
153269
Total 59490416909260 9795659 22653960
1ACPStatesreferredtoinArticle48oftheLom£Convention.

AN"EX2•
I
ACPState Product Amount1975Amount1976Amount1977Amount1978Total
SOMALIA Bananas1296907 1296907
Rawhidesandskins 635238 635238
Total1932145 1932145
SUDAN Groundnuts 968825 932591110294736
Rawhidesandskins 1658580 1658580
Total Γ1658580 968825 932591111953316
TANZANTA Cotton 1887082 1887082
Sisal 5165208 8176614 547264518814467
Total 1887082 5165208 8176614 547264520701549
TOGO Coffee 2680324 9462903626614
UGANDA Cotton 1748932 2249791 1287985 31255438412251
Tea 1399953 38829245282877
Total 1748932 3649744 1287985 7008467!13695128
SAMOA Cocoa 276978 780625 1057603
Copra1331544 1331544
Woodmtherough 348993 348993
Bananas 99313 99313
Total 276978 1630537 99313 7806252837453
1ACPStatesreferredtoinArticle48oftheLomeConvention .

ANNEX 2
ACP STATE - PRODUCT Amount 1975 Amount 1976 Amount 1977 Amount 1978 Total I
MADAGASCAR
TotalSisal
Cloves3 j
.Τ·762 943
1139 5161762 943
1139 516
2902 459 2902 459
■SIERRA LEONE Iron ore 3977 274 3977 274
GUINEA-BISSAU
TotalGroundnuts
Palm nuts and kernels
Sawn wood444?437
626 966
146 8393591 506 8033 943
626 966
146 839
5069 403 146 839 3591 506 8807 748
TONGA ■
TotalCopra
Bananas831 720
72719
«.244919 '-831 72.0
317 638
904 439 244 919 1149358
CAPE VERDE Bananas
A-. |
.-•> ^ ' ,
- ' !347 712 429 500 777 212
MAURITANIA Iron ore ' 3605 602 33394 848 37000 450
SWAZILAND Iron ore3368 878 5490 459 8859 337
CHAD Cotton4671 608 4671608 I
LIBERIA Iron ore*7-586 943I7586943
ACPStates referred toinArticle 48oftheLome Convention .

ANNEX2
ACPSTATE PRODUCT Amount1975Amount1976Amount 1977Amount1978TotaL
RWANDA Pyrethrum 608802 608802
GAMBIA Groundnuts 2488664 2488664
SENEGAL Groundnutoil
Oilcake49882295
15224094
Total* i
i
I 65106389 j65106389
GRANDTOTAL 79985880 137135935 I33729731u63960618J314812164
ACPStatesreferredtoinArticle48oftheLomeConvention .

ANNEX*2
I.CUMULATIVE RESULTSBYPRODUCT
Product1975 1976 1977 1978 Total
Amount Amount AmountI*I•AmountAmount JL_J
Groundnuts 65908638.2'.443711,96 455118113.49I
!22189497
I13.533777397812.00
Groundnutoil 675599118.19 738328021.89I49882295
.■30.426402156620.34
Oilcake11910791.49 1532690,41 152240949,29165684425.26
COCOA II2769780.35 7806250.4810576030.34
Cocoapaste4635581.25 4635580.15
Coffee 1354799916.949462900.58144942894.60
Cotton 1022211212,78 500013813.4633711229.99140983838.603269175510.38
CopraI
21632645.82 21632640^T9
Coconutoil 6151400.77 1,4998344.0421149740.67
Palmoil7655762.06 1467364435 22329400.71
Palmnutandkerneloil6269661,69 12118263.5937283942,2755671860.77
Rawhidesandskins840198310.5084019832.67
Woodintherough3784281947.31 3489930.9438191812
Sawnwood 5498071,48 1468390.44 6966460.22
Bananas12969071.62 727190.20 4470251.33 6744190.4124910700.79
Tea13999533.77 I38829242.375282877.I1.681
Sisal.692815118.66 '
i817661424.24 î54726453.34!20577410
I6.54
T-rnnore T\ 397727410.71 697448020.68 j4647225028.345742400418*24
Cloves1139516•>3.0?11395160.36
Cumarable-8484892.28 8484890.27
Pyrethrum608802|0.37
I6088020.19
Total 79985880100.0037135935.■■■■■ι
100,0033729731I
I '.
100.00I'
1.63960618100,00314812.164
i10Q.00

«
ANNEX2
3.
Products -1975 X
?0,Ó0
;29,AO1976 X1977 X1978 XTotaI Χ
affectedbytheeconomicsituation'' »2»3,4
affectedbylocal
contingencies564'6914
23513966747/958
2965797720*14
79.86
I!11782216
21947515
ι ι
!34.93
I
65*07 '
I ■
i :40981791
122978827
i24.99
75.01116708877
19810328537,07
62,93
79985880100.00
L i► n
37135935!100,00
i I1
33729731!100.00j163960618,00,00314812164
i100.00
?Woodintherough,rawhides,skinsandleather,cottonin1975*
"Sisal,sawnwoodin1976.
.Sisal,ironorein1977»
Ironorein1978(withtheexceptionofSwaziland).
[II.NATUREOPTRANSFERS
1975 X!1976 X1977*i1978 XTotaIn
Grants
jLoans41527921
3845795951.92
j48.0828292810
j884312576.19
23.8133729731100*00
091267286
7269333255.66
44.34194817748
11999440661.88
38.12
1
79985880
I00.0037135935100.00 •1
33-729731j100,00 ;163960618
I100,00I -
314812164100.00
IV.REPLENISHMENT (1979)
None.

-8-
ANNEX3 „ '. ' ,•
ListofdrawingsundertheInternational MonetaryFunds1compensatory payments
1Systemin1979
CountryMillion
SDRsLastmonthof
relevant <'-12-.
monthperiodMonthof
drawing
Zambia I48.75 1 3/78 ..5/78
Jamaica 1v15-75 .-6/78
i •6/78
Guyana«12/77 7/78
*xSudan^'3 I21.30-."12/78 9/78
xxSénégalr2i*oo 12/78' •11/78
xGambiarA,50 9/78/-,11/78
I ! \1xGuinea-Bissau 1,10 12/78'.4/79•
xTanzania 1 20.25 <'12/78^ i5/79~,
Ethiopia3 t.18«00 12/78 .8/79
Malawi .' <-.19.50 ,•2/79/
Kenya 69.00.'I3/79,.;;'.8/797.
xxUganda' ;5«oo -'3/79'; 8/79,i,'123 xxUganda1xxUganda 25.00 10/79 9/79■'r.
Jamaica •31.75 ! 10/79- '9/79>
Burundi 9.50 «'6/79' .10/79
'Malawi :9.50 5/79 11/79,~
2xSudan' 36.00 :12/79 11/79
xLiberia 20.50,.6/79 '12/79·:-ν,
ListrequestedbytheEuropeanParliament'sCommitteeonDevelopment and
Cooperation.
The"x"denotethenumberoftransfersreceivedbytheACPStateconcerned
.in197.8.
ACPStatesnotrequiredtocontributetothereplenishment ofresources.

NoC326/212 OfficialJournalofthe.luropeanCommunitiesANNEXA
31.12.79
InthecaseoftheACPStates,therewere55
non-repayable transfersforatotalof102817029FUA
and10repayabletransferstotalling40597773F.UA.
InthecaseoftheOCT,thereweretwonon-repayable
transfersforasumof1338057EUAandfive
repayabletransfersforasumof2856325EUA.
8.3.Thebalanceofthetotalallocationavailableat
31December1978forthelasttwoyearsofapplication
(1978and1979)was241284885EUAfortheACP
States,2332097EUAofwhichrepresentsthe
reimbursements requested.FortheOCT,thisbalance
amountsto13499161EUA,takingaccountofa
repaymentof61133EUA.
8.4.Forthefirstthreeyearsofapplication,fiveACP
Statesshared82711011EUA,i.e.almost60%ofthe
transfers.Inall,26ACPStatesreceivedoneormore
transfersandsixreceivedoneormoretransferseach
year.
Duringthissameperiod,fiveproducts (wood,
groundnuts,cotton,sisalandcoffee)werethecauseof
.75%oftheamountstransferred .
SECTION 8:STABILIZATION OFEXPORTEARNINGS8.5.Fromthefirsttransferrelatingtoironore,the
onlynon-agricultural productoftheStabexsystem,it
hasbeenclearthattheprovisionsofTitleIIoftheLome
Conventiondidnottakeintoaccountthespecial
characteristicsofaminingproduct.
8.1.TitleIIoftheLomeConventiondealswiththe
stabilizationofearningsarisingfromtheexportof
certainbasicproducts*forwhichamaximum
interventionof375MEUAwaslaiddownfortheyears
1975to1979,subsequentlyincreasedto380MEUAon
theaccessionofthenewACPStates.
Again,theOCTbenefitfromasystemwhichoperates
alongsideStabexandwhichisallocatedasumof20
MEUA.
Observations onthetransfersand'theirmethodof
calculation
8.2.At31December1978,31ACPStatesandOCT
hadbenefitedinthethreeyearsofapplication1975,
1976and1977from72transferdecisionsrelatingto15
categoriesofproductforatotalof147609184EUA.ForthefirstthreeyearsofapplicationthreeACPStates
receivedStabextransfersforthisproductforatotalof
10951753EUA.Inaddition,oneadvanceof
7000000EUAwaspaidfortheyear1978.
InoneofthethreeACPStatesconcerned,theIn11in
exportswasduetothestoppageofworkinthemine
followingtheinsolvencyoftheminingcompanyandin
asecondACPcountryitwasduetoterminationof
activitiesbyreasonofthemineralresourcesbeing
exhausted .
InrelianceonArticle16oftheConvention ,the
Commission ,inthesecases,deductedfromthe
calculationbasisofthetransfer,theamountincurrency
whichshouldhavebeenspentforthenormalactivityol
theminingcompany(dividends,capitaloutflow,
machinery,etc.).Sincethesefactorsarenoteasily
calculable,theresultcouldonlybean.approximation .

31.12.79 OfficiaiJournaloftheEuropeanCommuninesNoC326/213
Replyo(theCommissiontoparagraph8.5 Referenceperiod
Itistruethatironoreisanunusualitemtobecovered
bytheStabexsystem,whichwasdevelopedsolelyto
offsetfluctuationsintheproductionandmarketingof
agriculturalproducts.
TheCommunity hasalwaysbeen'awareofthe
difficultiesarisingfromtheinclusion'o'amining
productinthesystem,andindeedthisisexpressedin
theCommunitydeclarationappendedtoArticle17of
theLomeConvention .Furthermore ,thearrangements
inthenewConventionfortheotherminingproducts
aretotallydifferentfromthoseintheStabexsystem.-
Advances.8.8.InordertoimplementtheStabexsystema
referenceleveliscalculatedforeachACPStateandfor
eachproduct.Thisreferencelevelcorrespondstothe
componentofexportearningsduringthefouryears
precedingeachyearofapplication (Article19(1)ofthe
LomeConvention ).
DepartingfromtheprovisionsoftheConventionon
thebasisofthestatementmadebytheCommunityat
thesecondsessionoftheACP-EECCouncilofMinisters
,atFiji,theCommission ,incalculatingthereference
levelfortwoStabextransfers,consideredreference
yearsotherthanthefourprecedingtheyearof
application.
8.6.AlthoughArticle19(6)oftheLomeConvention
prescribesthattransfersshouldbemaderapidly,in
particularbymeansofsix-monthlyadvances,thefirst
fiveadvancestofourACPStates,representing atotal
suraof27670000EUAwerenotmadeuntil1978.
8.7.Duringthefirstthreeyearsofapplication,the
facilityforobtainingadvancesnothavingbeenused,the
ACPStatesonlyreceivedtheirtransfersbetween6and
18monthsafterthelosshadbeenrecorded.
ReplyoftheCommissiontoparagraph8.7
TheCommission understands thiscommenttobe
referringtotheretrospectivenatureofthesystem.
Becauseofthis,itisquitepossiblethatsuchdelays
shouldoccur.Theymayevenbelongerandthebrackets ,
wider.
Themostimportantaspectoftheoverallmanagement is
thetimebetweenthesubmissionofthetransferrequest
andactualpayment.Thefollowinginformationonthis
time-lagmaybeofuse:
Implementahon
yaar
aiι
Averagetrma
mmonths
forwardcases
mCussesof
type(2)asa
perientugeof
alltheyear's
transfers
(]>'Average
itimeiag
fnralt
trjtttferi(*)
w
975 389-5 '4.
1976 2S444 3
1977 4490 8
1978(estimate) i257SO4-5
|VClearly,ifatransferrequestrequiresstatisticalresearchorconsultations under
Annie19'*).therequestingACPStat*andtheCommissionwiilrequirefurther
timeformvestxgatxmifthesystematoworkeffiaentty.Calculation basisfortransfers
8.9.WhenanACPStateconsidersthatitfulfilsthe
conditionsforbenefitingfromaStabextransfer,it
forwardsitsrequest,togetherwithsupporting
documents,fotheCommission .TheCommission
examinestherequest.
Thestatisticsappliedfortheimplementation ofthe
systemarethoseobtainedbycross-checking the
statisticsoftheACPStatesandoftheCommunity,
accountbeingtakenofthefobvalues.
5.10.TheCommission calculatestheamounttobe
transferredand'drawsupatransferagreement,whichis
signedbythebeneficiaryandbytheCommission .The
sumispaidtothebeneficiaryState.
Intheabsenceofwell-definedrulesforarrivingatthe
statisticswhichshouldserveasthebasisforthe'
calculationofthetransfer,thefiguresfinallyadopted
owemoretonegotiations thanto'mathematical
analysis,withtheresultthatincertaincasestheactual
amountofthetransferexceedsthatoftheinitial
request;inothercases,itisequalorlower.
Thedifferencebetweenthetransferrequestedbythe
ACPStateandtheactualtransferarisesmainlyfromthe
cross-checking andthedetermination ofthecif/fob
factor.Thereisalsotheinfluenceofcurrency
conversions neededforthecalculationofthetransfer.
Duringatransferforasubsequentimplementation
yeartothebenefitofoneACPStateandforthesame

NoC326/214 OfficialJournaloftheEuropeanCommunities 31.12.79
product,theCommissionautomaticallycalculatesthese
newtransfersonthebasisofthesamestatisticalsources
usedonthecalculationofthefirsttransfer.JTierewas
thusnonewcross-checking ofstatisticsrelatingtothe
newimplementation year,contrarytotheprovisionsof.
theLomeConvention.
ReplyoftheCommissiontoparagraph8.10
Onthesubjectofcross-checking ,theCommissionrefers
totheanswersitgavetopoint74inChapter7ofthe
Court'sreportfor1977.
WhennegotiatingthenewConvention ,theCommission
wasanxioustointroduceanautomaticcross-checking
systembyensuringthatthestatisticsusedforthe
implementation ofthesystemwerethosegivenby
multiplyingtheunitvaluesoftheexportsoftheACP
Stateconcerned,asgiveninthestatisticsofthatAGP
State,bythequantitiesimportedbytheCommunity,as
givenincommunitystatistics.
However,itresultedfromnegotiationsthatthisformula
couldnotbeacceptedastheonlysolutiontothe.
problem.
Thus,throughouttheperiodofvalidityofthenew
Convention,therequestingACPState,whenitsubmits
itsrequest,willchoosebetweenthesystemprovidedfor
bytheLomeConventionandtheabovementioned
formula.
Itistruethattheactualamountofthetransfermaybe
higherthan,equaltoorlowerthantheamount
originallyrequestedbytheACPStateonceithasbeen
convertedfromEUAintotheState'slocalcurrency.
However,asalltheelementsofthesystemaffectthe
'calculationofatransfer,itisimpossibletoidentifythe
preciseeffectonthefinalamountofeachoneofthese
elements.
If,forexample,figuresfromtheACPStateareusedas
thebasisforcalculatingthetransfer,thecross-checking
andthecif/fobfactorareimmaterialandany
discrepancyinamountsisdueentirelytotheeffectof
monetaryoperationsand–whereapplicable–a
reductionunderArticle19(4)(b).Thesituationismore
complicatediffiguresagreedwiththeACPStateduring
cross-checkingpartiallyorcompletelyreflecttheEEC
importfigures.Insuchacase,thesolutiontothe
problemofcross-checkingandcif/fobfactorswouldhavemoreimpactandproducetheresultmentionedby
theCourt(').
Inanyevent,thereisnoindicationthatcross-checking
andthedeterminationofthecif/fobfactorhaveany
moreimpactthancurrencyconversion.
Lastly,asStabexoperationsareexpressedinEUA,as
laiddownintheConvention ,theamountsinthe
nationalcurrenciesoftheACPStatesshownon
transferrequestformsareofvalueonlyinshowing
whetherthethresholdsofdependenceandfluctuation
havebeencrossed.
Itisessentialtousenationalcurrencyforthis,infact,
because–apartfromthosecountriesbenefitingfrom
thederogationinArticle17(4)–theEUAconceptis
inapplicableforanACPStateasameansofmeasuring
itsexportstonon-Community countries.
Inthesecondsubparagraphofthispoint,theCourtis
referringtoapracticefollowedbytheCommission's
departmentsinthecaseofsuccessivetransfersforthe
sameproduct,namelykeyringtothecross-checking
formulaadoptedforthefirsttransfer.Thismeansthat
if,forexample,itwasdecidedtousethestraightEEC
figures(orthestraightACPfigures,oranyother
formula)forcross-checkingthefirsttransfer,figuresfor
asubsequentimplementation yearwillbecross-checked
inthesameway,withoutamendingtheformula
originallyadopted.TheCommissionconsidersthatthis
continuityarrangementisinkeepingwiththeStabex
systemwhichrequiresrapidtransferscarriedoutas
automaticallyaspossible.
Thereisoneexceptiontothisprocedure,however:soas
toavoidfollowingitblindly,itonlyapplies'ifnonew'
informationcomestolight'.If,forexample,the
Commission'sdepartmentsdiscoverthattheoperation
ofthestatisticaldepartmentsofanACPStategives
seriouscauseforconcern,theCommissionwillnot
accepttheexportfigurereturnedbythatMemberState
atitsfacevalueifthemethodusedfortheinitial
cross-checking wastobasecalculationsontheACP
figures.
Toconclude,therefore,theCommissionconsidersthat
'itiswrongtosaythatthereisnocross-checking inthe
caseofsuccessivetransfers.TheCommissionfulfilsall
(*)SeetheCommission'sanswertotheCourt's1977report
regardingcross-checkingandthecif/fobfactor.

il.12.79 OfficialJournaloftheEuropeanCommunitiesNoC326/215
itscross-checkingobligations:however,todate,there
/IJIVonlybeenrarecjscswhere'newinformation'was
trlttobesufficientlyimportanttojustifytheuseofa
differentcross-checkingarrangementtothatoriginally
adopted.AnydisagreementbetiveentheCourtandthe
Commissiononibismattercanonlybeduetoslightly
differentinterpretationsofthemeaningof'new
information' .
8.11.FollowingtheobservationsoftheAuditBoard
lorthefinancialyear1976,on30October1978the
CounciladvisedtheCommission todrawup
'cross-checking reports'forallcasesinwhich
cross-checkingtakesplace.
ReplyoftheCommissiontoparagraph8.11
WithregardtotheCouncil'srecommendation tothe
Commissionof10October1978,theCommission
statedthatit-waswilling,asfarasitscapabilitiesand
resourcesallowed,'todrawupcross-checking reports:
(i)forallCasesinwhich,fortheimplementation years
197Sand1979,therearegroundsfor
cross-checking ,i.e.whenthetransferrequestsin
questionconcernsituationsforwhichthe
Commissiondoesnotyethavecross-checked
figures; '
(ii)andforcasesinwhichthebasesforcross-checking
arenotCommunityimportstatistics'.TheCommission'sdepartmentshaveinvestigatedthe
availablesourcesonthespotandineachcasehave
selectedonitsrelativemeritsthesourcewhichseemed
themostsuitableandreliable.
8.13.AtransferwascalculatedbytheCommission
onthebasisofprovisionalfigurescommunicated bythe
ACPStntc.AlthoughtheACPStatehadforwardedthe
revisedandfinalfiguresbeforethetransferwaspaid,
whichshouldhaveledtoareductioninthetransfer,the
Commission didnottakethisofficialcommunication
intoaccount.
IfprovisionalFiguresareusedinthecalculationof
Stabextransfers,suchtransfersshouldbeconsideredas°
advancesorprovisionaltransfers,tobeconfirmed
withinasetperiod.
ReplyoftheCommissiontoparagraph8.13
TheAgreementrelatingtothetransfermentionedranas
follows: •
–dateoftransferproposal:■
–dateofCommissiondécision:
–date,ofsignatureofAgreements:
–dateofpaymentorder:!-
•–dateofpayment:21April1976,
6July1976,
8July1976,
28July1976,
9August1976.
8.12.TheCourthadestablishedonthespotthat
significantdisparitiesexistedbetweenthestatistics
communicated byonecountrytotheCommissionand
thoseoriginatingfromotherofficialstatisticalsources
ofthesamecountry.,.
ReplyoftheCommissiontoparagraph8.12
Thedepartmentsresponsibleformanagingthesystem
arewellawarethatinalmostallACPStates,thereare
atleasttwodifferentsourcesdrawingupdifferent
figureswhichatfirstsightseemtorefertothesame
tradeflows.However,thesesourcesarealwaysfoundto
beusingverydifferentmethods,afactwhichexplains
theCourt'sfindings(').Therevisedfiguresfor197SweresentonISJuly1976
andreceivedhytheCommission'sdepartmentson
23July1976.
However,bythistimetheCommissionhadalready
madeitsdecisionandtheTransferAgreementhadbeen
signed.TheCommission'sdepartmentshavealready
explainedwhyitdidnotseemworthrevokingthe
transfersalreadydecidedupon(caseswouldhavehadto
bereopenedeverytimethestatisticsusedwererevised,
sincetheywereconsideredtobethebestavailableatthe
timethedecisionwastaken).
■ ■ IM; ■,
• ;i:; !1
TheCommission ,wouldrefertoitsanswertopoint80
ofChapter7oftheCourt'sreportfor1977.,
(')Intheory,therearetwomainmethods:oneisbasedon
informationprovidedbytheexportersandrecordsexports
asproductsphysicallyleavethecountry,theotherrecords
exportswhenpaymentsforpastexportsarriveinthe
'country.TheLomeConventiondoes,however,dearlystatethat
'theCommissionshall,inconjunctionwiththe
requestingACPState,drawupadraftDecisiontomake
atransfer'(Article19(5)),and'foreachtransfera
"TransferAgreement"shallbedrawnupandconcluded
betweentheCommissionandtheACPStateconcerned'

NoC326/216 OfficinlJournaloftheEuropeanCommunities .11.12.>
(Article22).IntheCommissionsopinion,itisquite
clearthateachtransferrequestshouldresultinone
single,properly-agreed ,fixedamount.Anyother
approachwouldcausedelayswhichwouldcontravene
Article19(6)oftheConventionandthespiritofthe
Court'sremarkonpoint8.7.
8.14.TheStabexsystemonlyappliestotheexports
ofproductsoriginatingintheACPStatesconcerned.
Certification bytheACPStatethattheproducts
originatefromthatcountry,isatpresentperformed
automatically becausethetransferrequestformtobe
completedbytheACPStatecontainsaprintedclause
'Tobecompletedonthebasisofthecertificatesof
originissuedbythenationalauthorities'.
TheCourt,havingestablishedonthespottheabsence
ofsuchcertificatesoforigininanACPStatereceiving
Stabextransfers,wonderswhatguaranteesthe
Commissionhastosatisfyitselfthatthetransferis
merited.
ReplyoftheCommissiontoparagraph8.14
TheCommission'sdepartmentsdonotnormallyrequire
certificatesoforigintobesubmittedwheninvestigating
atransferrequest{').
TheguaranteestheCommissionhasare:
(i)thesignatureofahighofficialoraministerinthe
ACPStateonthetransferrequestfor/ttwhich
containstheclausereferredtobytheCourt.By
signingthisform,thesignatoryassumes
responsibilitynotonlyfortheaccuracyofthet
figuresbutalsoforensuringthatArticle17(5)of
theConventioniscompliedwith;
(ii)knowledgeoftheeconomyandproductioncapacity
oftherequestingACPState.ReplyoftheCommissiontoparagraph8.15
Itistruethatarateof97-3980271wasusctl >,/
therateof97-7083.Thereasonforthiserror,itbith
hadverylittleeffect,isthattheprogrammesmt,<n,l,\l/..
processthetransfersofcountriescoveredbyth
provisonsofArticle17(4)hadstillnotbeendrawnI<I<
andthattherateusedwasobtainedbyconibmuin
severalotherrates.
Disputes
8.16.In1977,threecountriessubmittedlate
requestsfortransfersfortheyear1975andtlic
Commissionconsideredtheserequestsinadmissible .
TheACP-EECCouncilofMinistersthereforeagreedto
initiatethegoodofficesprocedureprovidedforby
Article81(2)oftheLomeConvention .Asaresulto!
thisprocedure,theCommission wasinvitedto
re-examinethethreerequests.
Thequestionmayberaisedwhatmannerof
stabilizationthesetransfers,whichatbestwillbe
effectedin1979,willachieveofexportearningsforthe
year1975.
ReplyoftheCommissiontoparagraph8.16
TheanswertotheCourt'squestioninthethird
subparagraph isgivenbythecorrectstatementofthe
factsinthesecondsubparagraphofthesamepoint.
Observations onthereconstitution ofStabexresources
8.17.Inpractice,mostofthetransferstothe
least-favouredcountriesneednotberepaid,byvirtueof
Article21(5)oftheConvention .
8.15.TheCourtagainestablishedthatthewrong
exchangeratewasusedto'calculatetwotransfers,
whichresultedinareductionby1807F.UAofthesum
transferred .
(')However,inonecasewberitheCommission'sdepartments
hadsomedoubtsastowhetherArticle17(5)ofthe
Conventionwasbeingrespected,theyaskedforcertificates
tobesubmitted.TheACPStatecompliedwiththisrequest
totheircompletesatisfaction.Forothermorefavouredcountries,thesumi
transferred,notbearinginterest,arereimbursableunder
twoconditions .
Tothiseffect,theCommissiondetermines,foreachyear
andforeachproductofthecountriesconcerned,
whethertheunitvalueoftheexportsishigherthanthe
referenceunitvalueandwhetherthequantityactually
exportedtotheCommunityisatleastequaltothe
referencequantity.

31.12.79 OfficialJournaloftheEuropeanCommunitiesNoC326/217
Ifthesetwoconditionsarcmetatthesametime,the
recipientState.makesarepaymenttothesystem,within
thelimitofthetransfersithasreceived.
Duringanaudit,theCourtestablishedthatthe
Commissiondepartmentresponsiblehasaprogramme
forcalculatingthereconstitutionoffunds,butthat
thereisnoguaranteeofitsuniformapplication.Consequently ,thereferenceinArticle21(3)totherules
laiddowninArticle17(I)canonlyrefertotheresultof
thecross-checking whichwascarriedoutbeforethe
transferandnotthecross-checking onwhichany
repaymenthastobebased.
8.21.TheCourtfoundthatintheannualcalculation
forpossiblereconstitutionofStabextransfers:
* ^–theunitvalueoftheexportsinthestatisticsapplied
8.18.If,onexpiryofthefive-yearperiodafterthewasnear|yalwayshigherthanthereferenceunit
transfer,theresourceshavenotbeenfullyreconstituted,value(firstconditionforrepayment),
theCouncilofMinistersmaydecidethatthesums
outstandingaretobereconstitutedwhollyorpartially,–thequantityactuallyexportedtotheEEConthe
inoneormoreinstalments,orthattherighttootherhandwasnotatleastequaltothereference
repaymentbewaived(Article21oftheLomequantity(secondcondition)exceptforthreeACP
Convention). StatesandOCThavingactuallyreimbursed
2379469EUA.
8.1**.At31December1978,10repayabletransfers *
foratotalof40597773EUAwereeffectedforthe8.22.Whentotalexportstoalldestinationsofthe
benefitoftheACPStates,asagainst55non-repayable productwhichoccasionedthetransfershowa
transfers. significantincrease,buttheir.sharetotheEECdoesnot
v exceedthequantitywhichservedasareferenceforthe
transfer,theCommissionmightusefullyanalyzethe
InthecaseoftheOCTtherewerefiverepayablephenomenonwithinthespiritofArticle19(4)ofthe
transfersforatotalof2856325EUAasagainsttwoConvention.Inthiswayitcouldsatisfyitselfthatthe
non-payabletransfers. changeinthetrendofexportsisnotduetoapolicy
chosenbythe-beneficiaryStateinordertoavoid
repayment. *
Repaymentsmadeupuntil31December1978involve
threecountriesandfourtransfersandtotal2379469
EUA,including61133EUAemanatingfromanOCT.
'ReplyoftheCommissiontoparagraph8.22,
8.20.Inordertodetermineeachyeariftheconditions
forrepaymentbyanACPStateorOCTexist,theutruethatalmostallcaseswhereatransferwhich
Commissionineverycasebasesitselfonthefiguresshouldhavebeenreconstitutedisnot,thatisduetothe
originatingfromthesamestatisticalsourceasthatfac*thesecondconditioninArticle21(J)isnot
whichitselfservedasabasis.Thatistosay,forallthemet-lnfact>worldinflationinflates'unitvaluestoa
transfersforwhichtheACPstatisticshavebeenusedinlcvelwh,cbisalwayshigherthantheaverageunitvalues
thecalculationofthetransfer,theconditionsforduringthereferenceperiodwhiletheeconomiesofthe
reconstitutionareexaminedsolelyonthebasisofthe/EECMemberStatesmaynotalwaysbestrongenough
ACPstatistics,whereasbyArticle*21(3)thetoabsorbextraquantitiesinthosesameyears.
Commissionshouldalsocross-checkthestatisticsofthe
CommunityandoftheACPStates,beforeusing,where
necessary,theACPstatistics. However,ifinthesecircumstancestheCommission's
departmentsnoticeaconsiderableincreaseinexportsof
theproductconcernedtoallotherdestinations–
whichwouldhaveenabledtheACPStatetoexport
ReplyoftheCommissiontoparagraph8.20,greaterquantitiestotheEF.Candthustofulfilthe
". secondconditionsofreconstitution–theCommission
Itisclearthattheamountstoberepaidtothissystem"doesnotfeelthatitcanaccusetheACPStateof
forthereconstitutionofeachtransfercanonlybefabricationinordertoobtainreconstitutionasithasno
determinedfromthestatisticalinformationonthebasiscontroloverthesituation,
ofwhichthetransferwascalculatedasinthecaseof
successivetransfers(seeparagraph8.10).. 1
Itisadifferentmatterinthecasementionedbythe
CourtwheretheACPStatetriestoavoidmeetingthe
Anyotherprocedurewouldbeboundtocreateconditionsforreconstitution byadeliberatepolicy,
distortionssinceadebtcanonlybecalculatedontheFirstly,itshouldbemadeclearthattheCommission
basisofthefactswhichgaverisetothatdebt. doesnothavesufficientinformationtoprovethatthese

NoC326/218 OfficialJournaloftheEuropeanCommunities 31.12.79
policiesexist,andsecondly,evenifitwerepossibleto
provesuchconduct,theCommissionwouldnotfeelit
couldapplyArticle19(4)(b)asthisonlycovers
transfers.ThisomissionfromtheLomeConventionwas
remediedinnegotiationsforthenewConventionby
stipulatingthatthesamerulesapplytoreconstitutionas
totransferrequests.
8.23.Article53(3)oftheFinancialRegulationof27
July1V76specifiesthat,forpaymentsrelatingtothe
contributions towardsthereconstitution ofStabex
resources,theconversionratestobeusedbetweenF.UA
andthecurrencyorcurrenciesusedforpaymentshall
bethoseinforceonthe10thdayprecedingpayment.Article2(2)ofthevariousTransferAgreements,signed
bytheCommissionandthebeneficiaryStates,lays
downthattheratesofexchangetobeusedarethosein
forceonthedaypriortothedayonwhichthe
operationiscarriedout.
ReplyoftheCommissiontoparagraph8.23
Thisiscorrect.Eventhoughinpracticethisdetailisnot
particularlyimportant,theCommissiondoestryto
harmonizedeadlinesinthedifferentdocumentswhen
draftingnewAgreements,sincethenewCotwention
cameintoforce.
Table78.BreakdownofStabextransfersbyACPStaleandbyyearofapplicationasat31December1978
(1UA)
k.r-ac._._1975 1976 1977 Tota
/vv-r v
Amount % Amount % Amount % Amount %
Niger5949041816909260183979565930-322653960158
Bénin 71298489735159239-3476232714-715408098107
Taruunu I188OS226516520813-7817661425-215228904106
lvorvCoast I1500000020-5 1500000010-5
Ethiopia14420049196 14420049 !100
Congo7361677100 736167751
Uganda17489322-436497449-7 •539867638
GuineaBissau 506940313514683905521624236
Ghana 517640871 -517640836
Cameroon 360142349463158 1-2 40649812-8
SierraLeone 397727410-6 397727428
Mauritania 3605602 360560226
Swaziland 336887810-433688782-4
Madagascar 29024537-7 290245920
Togo26803243-7 26803241-9
Fiji 61514008149983940 211497415
WesternSamoa 2769780416805374-4993130-3205682814
lipperVolta 861175 11699773-62031152 •4
Somalia 193214526 1932145 •4
Comoros 2983040-42865080-810909273-4 16757391-2
Sudan 165858023 16585801-2
Mali 648503098484892-2 149699210
Burundi 148565520 14856550
Tonga 90443924 9044390-6
CentralAfricanEmpire 3531080-55498071-5 9029150-6
Jibun 2568940-42653280-71696290-56918510-5
Total 73341263100037687772100-032385064100-0143414802100-0

12.79 OfficialJournaloftheEuropeanCommunities*
NoC326/219
Table79.BreakdownofSubextransfersbyoverseascountryandterritoryandyearofapplicationa*
at31December1978
(EVA)
OCT Sawnwood Copra Tut»
Belize 1975
1976
1977139650
202714139650
202714
-Total 342364 342364
GilbertIslands1975
1976
1977t
1083098 1083098
Total 1083098 1083098
NewHebrides 1975
1976
1977I'1103499
3273641103499
327364'
Total 1430863 1430863
SolomonIslands .1975
1976
19771273640 1273640
Total 1273640 1273640
Tuvalu 1975
1976
197764417 64417.
/Total1
64417 64417
Total 1975
1976
1977139650
2027141103499
27485191243149
2748519
202714
Grandtotal 342364 38520184194382

ANNEX5
SystemofStabilization ofExportEarnings(Stabex)
Innovations andmajorchangesinthenewConvention ACP/EECcomparedwiththeConventionofLome
JSubjectProvisions inthenewConvention Legalbasis N.B.:provisions LoméI
1.Innovations andmajorchangeswithrespecttothepoliticaloptionsofthesystem
1.1Aims Theaimshavebeenclarified .Stabexshallsupportthedevelop­
menteffortsoftheACP-States andenabletheminthiswayto
ensureeconomicandsocialprogressfortheirpeoples.art.23§1art.16
1.2Use Therecipient ACPStateshalldecidehowtheresourceswillbe
used,subjecttocompliance withtheobjectives .art.41§1
iTherecipient ACPState
decideshowtheresources
willbeused;nolinkto
aims(art.20)
Inordertoattaintheseobjectives,transfers mustbedevoted
tomaintaining financialflowsinthesectorinquestionor,
forthepurposeofpromotingdiversification ,directedtowards
otherappropriate sectorsandusedforeconomicandsocial
development .art.23§2Nothing
Duringappraisalofthedossier,andinanycasebeforethe
transferagreement 1ssigned,therequesting ACPStateshall
givetheCommission someindication oftheprobableusetowhich
thetransferwillbeput.art.41§2Nothing
However,theimplementation ofthetransfershallnotbemade
conditional ontheindication ofprobableuse.ACP/EECcommon
DéclarationiNothing

2.-
Subject ! Provisions inthenewConvention Legalbasis N.B.:provisions LoméI
1.3Productscovered
«Thefollowingproductshavebeenaddedtothelistofproducts
underLom6I(1):essentialoilsofcloves,ofniaouliandof
ylang-ylang (2);cashewnutsandkernels;pepper;shrimpsand
prawns;squid;cottonseeds;oil-cake(3);rubber;peas;beans;
lentiIs.
'~'*" •art.25§1Groundnuts,groundnut
ioil#groundnutoilcake,
cocoabeans,cocoapaste,
cocoabutter,rawor
roastedcoffee,extracts,
essencesorconcentrates
ofcoffee,cotton,cottor
linters,coconuts,copra,
coconutoil,coconutoil­
cake,palmoil,palmnut
andkerneloil,palmnut
andkerneloil-cake,palir
nutsandkernels,raw
hidesandskins,bovine
cattleleather,sheepanc
lambskinleather,goat
andkidskinleather,
woodintherough,wood
roughlysquared,wood
sawnlengthwise,fresh
bananas,tea,rawsisal,
ironore(4),vanilla,
cloves,pyrethrum,ylang-
ylang,arablegum,wool,
mohair,sesameseeds(1)
Cart.17§1)
(1)Inthiscontext,itmightberecalledthattheinclusionofsesameseedhasbeendecidedbytheCouncilofMinisters ACP/EECat
Freeport,March1979. .'."■r
(2)Thisnewandlargerproductpackagereplacestheproduct"ylang-ylang",theinclusionofwhichwasdecidedbytheCouncilof
Ministers ACP/EECinFiji,April1977.
(3)ThisglobalpositionincludesandreplacestheoilcakesalreadyincludedinLom6I:groundnutoilcake;coconutoilcake;palmnut
andkerneloilcake. . ,
(4)Asfarasironoreisconcerned,exportsofironoresfromsitesbeingworkedwhenthisConventionissignedshallcontinuetobe.
coveredbyStabexforaperiodlimitedtothefirstfivefinancialyearsofthissystem.Allotherexportsofironorewillfall
undertheapplication oftheprcvilionsregardingprojectandprogrammeaidsformirteralproducts.Uponexpiryofthatperiod,
ironoreshallbewhollycoveredbythelattersystem. ,

Subject
1.4 Products groups
1.5 Covered exports
1.6ThresholdsProvisions inthe new Convention
With regard totobacco ,citrus fruits andsisal products ,the
inclusion ofthese products will beexamined inthecourse of
implementation ofthenew Convention .
Upon presentation ofeach transfer request ,the ACPState may
choose between astrictly "product byproduct "approach and an
approach which allows forproduct groups ,bytaking theraw
material and theprocessed product together (e.g. groundnuts and
groundnut oil,orwood intherough andwood roughly squared and
wood sawn lengthwise ,etc.).
The chosen form remains valid for all operations which apply to
theparticular case ;e.g. forpassing thethresholds ,the cal­
culation ofthe amount tobereplenished ,etc .
Ifsorequested byanACPState ,theCouncil ofMinisters ACP/
EECmaydecide upon theapplication ofthesystem toexports of
aproduct covered bythe list from therequesting ACPState to
other ACP States .
Dependence threshold :-6/5Xinthenormal case <1)
-2X.for least developed countries
-2Xfor land-locked and insular coun­
tries
Threshold offluctuation :-6,5 Xinthenormal case
-2Xfor least developed countries
-2Xfor land-locked and insular
.countriesLegal basis
Declarations of
the Community
art .25S3
irt .25S3
art .27
art .29
art .46§1
art .47S1
art .37
art .46§1
art .47S1N.B. :provisions Lomé I
Approach bygroups not
provided ;ambiguity in
art .17S2
Nothing
7,5 X(art .17S2)
2/5X(art .17§2)
2,5 X(art .17§2)
7,5 X(art .19§2)
2,5 X(art .19§2)
2,5 X(art .19§2)
(1)The threshold of5Xfor raw sisal has been maintained .

4.-
»
rSubject Provisions inthenewConvention Légalbasis N.B.:provisions LoméI
1.7Relationtoother
compensating sys­
temsThecontracting partiesagreetoconcertactioninorderto
avoidanydoublecompensation intheeventofaworldsystem
forthestabilization ofexportearningsbeingestablished .JACP/EECcommon
DéclarationNothing
|2.Majorchangesreferringtothefinancialprovisionsofthesystem
2.1Funding 550millionEUAforthedurationofthenewConvention . art.31 375MEUA(art.18S1)
+5MEUAfor3ACP
Stateshavingadhered
totheConvention
2.2Replenishment of
theresources
2.2.1Thirdcondition Athirdconditiontotriggeroffthereplenishment hasbeen
addedtothetwoalreadyexistingintheConventionofLom4:
theearningsfortheyearandtheproductinquestionhaveto
amounttoatleast106,5Xoftheaverageofearningsduring
thereferenceperiod(1)(thresholdoffluctuation reversed);
thethreeconditions mustbefulfilledsimultaneously .art.43
art.43§
S2a,b
2cTwoconditions :
-theunitvalueofthe
exportsishigherthan
thereferenceunitvalue;
-thequantityactually i
exportedtotheCommunity 1
isatleastequaltothe
referencequantity,
(art.21§3).
2.2.2Newformula Theamounttobemadeavailabletothesystemisequaltothe
difference betweentheactualearningsandtheaverageof
earningsduringthefouryearspriortotheyearunderconsi­
deration.art.43
art.43S
§1
3• »
Theamountisequaltoj
thereferencequantity I
multiplied bythediffe-;
rencebetweentherefe-1
renceunitvalueandthe
actualunitvalue,
(art.21§3).
(1)Art.43S2and3makeclearthatthereferenceperiodofreplenishment istooamovingaverageof4years.

ISubject ' Provisions inthenewConvention , LegalbasisN.B.sprovisionsLomé'I!
2.2.3Consultations Shouldtheexamination ofthetrendofexporttoalldestina­
tionsandofproductionoftheproductinquestionaswellasof
demandrevealsignificant changes,consultations shallbeheld
betweentheCommission andtheACPStateconcernedinorderto
establishwhetherthesechangesaresuchastojustifyacontri­
butiontothereplenishment andifso,towhatextent.art.43§5Nothing
2.2.4Penodof
observationAtthebeginningofeachyearduringtheperiodofsevenyears
followingtheyearinwhichthetransferwaspaid,theCommis­
sionexaminesiftheconditionsforreplenishment arefulfilled.
I-art.42
art.A39
§2Periodoffiveyears
followingtheallocation
ofthetransfer,without
clarification
(art.21§2).
2.2.5Periodof
replenishmentTheamountshallbemadeavailabletothesystemattherate
ofonefifthperyearafteraperiodofdefermentoftwoyears
beginningintheyearduringwhichtheobligationofreplenish­
mentwasestablished . ,art.43§4Peribdoffiveyears
followingtheallocation
ofthetransfer,without
deferment
(art.21§2).
2.2.6Replenishment
incurrencyof
theACPStateIftheACPStaterequires,theCommissionwillexaminewithit
thepossibility ofreplenishment inlocalcurrencyofallor
partoftheamountsowingtothesystem.ACP/EECcommon
DéclarationNothing >
3.Innovations andmajorchangeswithrespecttoimplementation andadministration ofthesystem ,
3.1Inclusionofanew
productinthe
listIftheinclusionofanewproductintothelistisrequested,
theCouncilofMinistersshalldecideonthisrequestnotlater
than6monthsafterthepresentation oftherequest.art.26
INothing
3.2Crosschecking Whensubmitting thetransferrequestforeachproduct,,theACP
Stateshallchooseifthestatistics usedtoimplementits
requestshallbethosecrosschecked inaccordance withthepro­
cedureoftheLom6Convention orthoseobtainedbymultiplying
theunitvaluc-softheexportsoftheACPStatebythequanti­
tiesimportedbytheCommunity.art.30§2S3Crosschecking ofstatis­
ticsoftheACPState
andoftheCommunity,
accountbeingtakenof
thefobvalues
(art.1?S1).

6.-
Subject Provisions inthenewConvention Legalbasis N.B.:provisions Lomé]
3.3Statistical errors
andomissions
3.AShort"periodof
reference
3.5Inadmissible
requestsInordertotakeaccountofstatisticalerrorsandomissions/the
basisoftransferwillbeincreasedby1%ofthisfigure.
WhereanACPStatestartsprocessing aproducttraditionally
exportedintherawstateorbeginsexportingaproductwhichit
didnottraditionally produce,thesystemmaybebasedona
referenceperiodofthreeyears.
Apartfromthereasonforaninadmissible requestprovidedby.
theLomeConvention,twootherreasonsrenderingarequestinad­
missiblehavebeenmadeexplicit -:iftherequestispresented
after31Marchoftheyearfollowingtheyearofapplication and
ifitemergesfromthedossier,afterconsultations ,thatthe
requesting ACPStatehasrecordedanexcessinexportearn4ngs
oftheproductinquestiontoalldestinations .art.39S2
art.36S3
art.38§1b
art.38§1a
art.38§2Nothing
Nothing
Therequestshallnotb(
admissibleifexaminatic
oftherequest,tobe
undertaken bytheCommis
sioninconjunction witf
theACPStateconcerned ,
showsthatthefallin
earningsfromexportstc
theCommunityof-thepre
ductsinquestionisthe
resultofatradepolic)
measureoftheACPState
concernedadverselyaf­
fectingexportstothe
Communityinparticular
(art.19S4a).The1st
ofthetwootherreasons
(deadline)resultsfrom
adecisionoftheACP/
EECCommitteeofAmbas­
sadors,theother'one
fromthelogicofart."■
17§4.

Subject Provisions inthenewConvention ILégalbasisN.B.:provisions LoméI
3.6Interpretation of
inadmissible
requestsTheprovisionsoninadmissible requestsshallbeappliedinthe
mostfavourable waypossibleinordertotakeaccountofparti­
cularsituations whichcouldoccur.ACP/EECcommon
DéclarationNothing
3.7ConsultâtionsIthasbeenmadeclearthatthesignificant changesrequiring
consultations ontheamounttobetransferred donotrefersole­
lytothetrendoftherequesting ACPState'sexportstoall
destinations,butalsototheproductionoftheproductinques­
tionanditslevelofdemandintheCommunity.art.39S3Consultations aretrig­
geredbysignificant
changesinthetrendof
totalexportsofthe
ACPState
(art.19§4b).
3.8Définition of
availablefinan-
cialresourcesInordertocontributetotheclarityofthesystem,theresour­
cesavailableforeachyearofapplication havebeendefined.
Theyaremadeupofthesumofthefollowingelements:
-theannualinstalment,possiblyreducedbyanadvancedrawing
ofamaximumof20%intheprecedingyear,
-anyamountnotusedintheprecedingyearsandcarriedfor­
'wardtothenextyear'sinstalment,
-theamountscontributed tothereplenishment ofthesystem,
-anyamountdrawninadvanceofthenextyear'sinstalment.art.33 Nothing

Subject NewConvention Convention ofLomé
I4.N.B.;provisionssligthlymodifiedorunchanged
I4.1Limitation *ofthesystemtoACPStatesandtheirexportstotheEECart.23§1 art.16
4.2ExtentandListingofleastdeveloped,'
landlocked andinsularACPStates
νart.155S3a
art.155§3bandcjart.24art.48§2
4.3Preferenceforsomeleastdeveloped ACPStateswithregardtothe
-,applicationofthesystemtoexportsofaproducttoalldestinationsart.46§3 art.17S4
ListingoftheseACPStates> ACP/EECcommonOeclar.ACP/EECcommonOeclar.
4.4Financialprovisions
-Divisionofthetotalfundingintofiveequalannualinstalments
-Automaticcarryforwardofremainingbalancesattheendofeachyear
-Incaseofinsufficiency offunds
.authorization touseinadvanceamaximumof20%ofthefollowing
years'sinstalment ■..
.reductionofthetransferstobemade
onthebasisofadecisionontheCouncilofMinisters ACP/EEC.art.32S1
.art.32§2
art.34
art.34,.*art.18§2
art.18§3
art.18§*2
art.18§4
4.5Principleofthereplenishment oftheresourcesmadeavailableforthe
system .. -:art.42 art.21§1
4.6DecisionoftheCouncilofMinisters ACP/EECconcerning
-theallocationofanybalanceremainingofthefundingafterthe
expiryoftheConvention ,
-theamountsnotyetfullyreplenishedaftertheobservationperiod
ofsevenyears ■art.35
art.44art.18
art.21§
§5
4
'4.7UpondecisionoftheCouncilofMinisters .ACP/EEC: ".,
possibilitytoincludenewproductsintothelistandtrhecriteriato
beappliedinthiscase .'
iart.26 art.17§3

I
i
Subiect NewConvention Convention ofLomé
4.8Management bytheCommission art.31 art.18§1
4.9statistical andcustomsco-operation,practicalmeasuresinthisfieldart.45 art.23
4.10Certificate oforigin art.28 art.17§5
4.11Definitionofdefinitive importintotheEEC art.30§1 art.17§1
4.12TransferrequestexaminedbytheCommissioninconjunction withtheart.39§1 art.19§4a
ACPStateconcerned
4.13Calculation ofthetransfer
-formulaforthedependencethreshold art.29 art.17§2
-formulaforthefluctuation threshold art.37 art.19§2
-formulaforthereferencelevel art.36§2 art.19§1
4.14TransferdecisiondrawnupbytheCommission;transferagreement
iart.40§1and2 art.19§5andart.22
4.15Rapidtransfers;paymentofadvances art.40§3 art.19§6
4.16Transfersshallbearnointerest art.40§4 art.21§1
4.17Reportonusewithintwelvemonthsfollowingsignatureofthetrans-art.41§3 art.20
feragreement