ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(79)223
Vol.1979/0092

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(79)223final
Brussels-3rdMay1979
THECOMMONFUND
CONTRIBUTIONS TOTHEFUND'SFIRSTANDSECONDWINDOWS
(Communication fromtheCommission totheCouncil)
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COM(79)223final

2.
I.INTRODUCTION
1.AttheNegotiating ConferencewhichtookplaceinGenevafrom12-20
March1979agreementwasreachedontheCommonFund'sfundamentalelements,
whichlargelycoincidewiththeideasalwaysdefendedbytheCommissionand
discussedwithintheCommunity.
1.1Anumberoftheseelementsmustnowbefurtherdefined,inparticular
astheyrelatetotheoutlineofthefinancialstructurethathasbeen
proposed.
FirstwindowSecondwindow
MinimumEqualAmounts(MEAs)oft1million 80+ 70
Otherobligatorycontributions 320° -
China 5% 16.0
Groupof7710% 32.0
GroupD 17% 54.4
GroupΒ 68%217.6
Voluntarycontributions - 280
400 350
+Assuming150membersandaroughly50:50divisionbetweenthe2windows.
°Ofwhich70paidup;150oncall;and100callable.
Targetfigure.
1.2Thefollowingarrangements havebeenmadeconcerningthefurtherwork
tobeundertaken :
-StatesMembersofUNCTADandinternational organisations havebeen
invitedtoindicateatUNCTADV(Manila,7May-1June)theirinten­
tionsonpledgingvoluntarycontributions totheFund'ssecondwindow.

-AnIntergovernmental InterimCommitteeisbeingestablished,whichis
tomeetforthefirsttimeafterUNCTADVinorder"toconsiderthe
elementsrequiringfurtherelaboration,todraftarticlesofagreement
...andtomakerecommendations regardingthepreparatory workrequired
tobringtheFundintooperation".
-TheNegotiating Conferenceistobereconvenedbeforetheendofthe
yearwithaviewtoadoptingthearticlesofagreement.
1.3Throughoutthenegotiations,theCommunityplayedamajorrole,
notablyastheoriginatorofthecompromise whichenabledthediscussions
toreachasuccessful conclusion .
ItwouldthereforebelogicalandusefulfortheCommunityassuch
toparticipate intheFundalongsidetheMemberStates,bothasa
memberandasregardsthefinancialcontributions .
1.4Inthelightoftheaboveconsiderations,thepurposeofthisCommuni­
cationistoproposeacommonapproachonthefollowingquestions :
-CommunitymembershipoftheFund;
-Contributions towardsthefinancingoftheFund'sfirstandsecond
Windows;
-TheallocationanddivisionamongtheMemberStatesofthefinancial
burdenoftheMinimumEqualAmounts.
COMMUNITY MEMBERSHIP OFTHECOMMONFUND
Inviewofitsparticularstatus,theCommunityisalreadyamember-either
aloneoralongsidetheMemberStates--oftheexistinginternational commodity
agreements (ICAs),whichmaybeexpectedtojointheCommonFund.
TheCommissionwouldrecalltheproposalsithasmadetotheCouncilconcerning
Communityparticipation intheagreementonrubber.

4.
Inthesamespirit,theCommission proposesthattheCommunity assuch,
alongsidetheMemberStates,should:
-beamemberoftheCommonFundandthattothisendprovisionshould
bemadeforthearticlesofagreementtocontainaclauseenablinginter­
governmental organisations withresponsibilities forthenegotiation,
rconclusion andimplementation ofinternational agreements,particularly
commodityagreements,toparticipate intheFund;
-contributetoensureitscredibility towardsthefinancingoftheFundon
thebasisoftheguidelines setoutintheremainderofthisCommunication .
III.THEFINANCING OFTHECOMMONFUNi):FIRSTANDSECONDWINDOWS
3.Itiscertainthatsomeindustrialised countrieswill,atManila,
indicatetheirintentiontocontribute totheFund'ssecondwindow.Itis
politically importantthattheCommunityshouldbeabletoindicateits
intentionsifitappearsadvisabletodosoduringtheConference .Thedetermi­
nationoftheindustrialised countries' contributions tothefirstwindowis
lessurgent;itisessential,however,thattheCommunityshouldhaveacoherent
viewofthefinancingoftheFundasawhole.
3.1£2nanclng__of _the_fjrst__wi_Qdow.Thetwokeyquestionswhichwillremain
tobesettledafterUNCTADVare(i)thekeytobeadoptedbetween
industrialised countriesfortheamountsnotcoveredbytheMinimum
EqualAmounts,and(ii)thecompsoition oftheCommunity'scontribution .
TheCommission prpposesthatthefollowinggeneralguidelines be
adopted:
-Key:accordingtotheagreement reachedalready,theamounttobe
subscribed (intheformofpaidupcapital,capitaloncall,and
callablecapital)tothefirstwindowistobedividedbetweenthe
fourregionalgroupsaccordingtoaformulabasedtwo-thirds onthe
UnitedNationskeyandone-third onpercapitaGNP.

5.
Anexamination ofpossible alternatives shows that there isnogood
reason why the same key should not beadopted todetermine the break­
down between industrialised countries ofthe amount attributable to
them (which would give afigure ofaround &52million for the Commu­
nity onthebasis ofthehypothesis given inthetable onpage 2).
-The Community share :until such time astheprinciple ofacontri­
bution from theCommunity assuch ,either alone oralongside the
Member States ,isrecognized ,theCommission does not wish topre­
judge thearrangements (inclusion inthebudget ornational contri­
butions )orthe internal breakdown ofthe Community share .
3.2 Volunt ar^_cont rjbjxt i^ns_to_the_second_w2ndow .TheCommunity should
announce ,atthe most suitable moment during theManila Conference ,that
itintends tomake avoluntary contribution tothis window ,provided
that other countries and groups ofcountries announce their intention
' ofdoing likewise .
Whilst itisunlikely that theCommunity will wish toindicate a
specific figure atUNCTAD V,itmight make itclear that itscontri­
bution will bedetermined inthe light of :
-theCommunty 'soverall financial participation inthe Common Fund ;
-thewillingness ofother countries andgroups ofcountries to
contribute .
Itgoes without saying that those Community Member States that wished
todosocould announce their intention ofmaking supplementary
national contributions .

6.
3.3 mum_E3uaJ ;_ s__CMEAs).-Incommon with allmembers oftheFund /,
theMember States oftheCommunity will berequired tocontribute
$1million each .The Commission proposes that this contribution be
allocated tothetwowindows inapproximately .equal shares .
Forthe reasons given inparagraph 3.1,the Commission does not wish
atthis stage toprejudge either thearrangements orthe internal
breakdown ofthis contribution /between the Member States .
IV.CONCLUSIONS
i.Inthe light ofthe role played bythe Community throughout thenegotiations /
itisproposed that theCommunity assuch should participate inthe Common
Fund ,alongside theMember States ,both asamember and asregards the
financial contributions .
Inthis context ,steps will have tobetaken ,when thenegotiations resume ,
toensure that the clause required tomake such participation possible
appears inthe final agreement .
ii.The contributions ofindustrialised countries tothe first window should
bedetermined according tothesame formula asthat used todetermine the
contributions ofthevarious groups ofcountries ,,
iii .The Community should announce ,atManila ,itsintention tomake avoluntary
contribution tothe second window .
iv.TheMinimum Equal Amounts should beallocated tothetwowindows in
approximately equal shares .
v.Asregards theallocation ofthefinancial burden ofthevarious
contributions within theCommunity ,the Commission reserves the right
toforward precise proposals totheCouncil atalater date when the
Council hasstated itsview ontheprinciple oftheparticipation of
theCommunity assuch inthe Fund andontheprinciple ofitsfinancial
contribution . .

FINANCIAL RECORD
A.PART1:INTERVENTION APPROPRIATIONS
1.Relevantbudgetheadmgcode:Title9,Chapter97-tokenentry
2.Titleofbudgetheading:
Cooperation :Communitycontribution tothefinancingoftheCommonFund.
3.Legalbasis:Article113andArticle116
4.Description,objective(s )andjustification oftheproject:
Communitycommitmenttoparticipate inthefinancingoftheCommonFund,
whichwillsupportcommodityagreements (theCommunityisalreadyamember)
5.Financialimplications oftheproject(inu.a.)
5.0 Tokenentry.
6.Typeofcontroltobeapplied:generalbudgetarycontrol..,
B.PART2:ADDITIONAL DATATOBEPROVIDED FORANEWPROJECT
7.Overallfinancialimplications oftheprject(forthewholeofitsexpected
duration)(inu.a.)5.1.0
5.1.15.0.0
5.0.1
5.0.2
5.1Multiannual timetable :singlepayment.
Patternofutilization ofappropriations duringthefinancial
yearnowbeingprepared :disbursements tofirstwindowas
commodityagreementsjoin;onceandforalldisbursement to
secondwindow.
Methodofcalculation :notapplicable .
Implications inrespectofrevenue:none.
Multiannual timetable :notapplicable .
Methodofcalculation :notapplicable .
7.0
7.1Inrespectofexpenditure (costs):tokenentry
Inrespectofrevenue:none

2.
Z.Information re^ardir ^staffing ar.d tr.eappropriations foradministrat "ve
expenditure lecessary forthe impleiTien 'atiorloftheproject
(Forthe cjrrs.Vc financial year ,forthensxt -three years ,and (ifpossible )
fortheentire duration oftheproject ):none .
9.Project financed from :Community budget .