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DOCUMENTS "COM"
COM(82)438
Vol.1982/0144

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(82)438 final
Brussels,20July1982
Recommendation fora
COUNCILREGULATION
concerningtheconclusionofaFinancialProtocolbetweentheEuropean
EconomicCommunityandthePEOPLE'^DEMOCRATIC REPUBLICOFALGERIA
*
Recommendation fora
COUNCILREGULATION
concerningtheconclusionofaFinancialProtocolbetweentheEuropean
EconomicCommunity andtheREPUBLIC OFTUNISIA
(submittedtotheCouncilbytheCommission )
I
C0MC82)438final

EXPLANATORY MEMORANDUM
3yitsdecision of27July 1981 ,the Council authorised the Commission to
negotiate new financial protocols with theMaghreb countries (Algeria ,
Morocco ,Tunisia ),theMashreq countries (Egypt ,Jordan ,Lebanon ,Syria )
and Israel .Atthe same time the Council adopted directives ,which
were supplemented atitsmeeting of29/30September 1981 .Onthe basis
ofthese directives ,the Commission succeeded inconcluding negotiations
with all those countries ,with the exception ofAlgeria andTunisia .On
23March itput before the Council recommendations for regulations on
the conclusion ofthe new financial protocols onwhich negotiations
had been completed (C0M(82)119 final ).
The negotiations with Algeria and Tunisia have now been concluded .The
texts ofthe new financial protocols have been initalled bythe heads of
the respective delegations .
Itwas also agreed toinclude certain statements inthe minutes ofthe
negotiations . (The text oftheminutes isattached tothis Communication .)
TheTunisian Delegation made astatement inwhich itexpressed the pai–
ticular importance itattached tothe granting infuture of aprefei –
ential margin toTunisian undertakings inconnection with invitations to
tender for public works and supply contracts ,asisdone for ACP undei–
takings .
The Commission recommends that the Council approve the outcome ofthe
negotiations with Algeria andTunisia and initiate the procedure forthe
signing and conclusion ofthe new financial protocols .Itconsequently
presents recommendations for Council regulations onthe conclusion of .
these protocols (the texts ofthe initialled protocols are attached to
the recommendations ).

RECOMMENDATION
FOR ACOUNCIL REGULATION
concerning theconclusion ofaFinancial Protocol
..between theEuropean Econor>is Community endthe
PEOPLE 'SDEMOCRATIC REPUBLIC OFALGERIA
THE COUNCIL OFTHE EUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Conifaunityy
and inparticular Article 238thereof ,.
Having regard tothe Recororaendat ionfrom theCommission ,
Having regard totheopinion oftheEuropean Par Iiassent ,
Whereas theFinancial Protocol between theEuropean Economic Community
and thePeople 'sDemocratic Republic ofAlgeria signed on
,should heconcluded ,
HAS ADOPTED THIS REGULATION 2
Article 1
The Financial Protocol between theEuropean Economic Community and
thePeople 'sDemocratic Republic ofAlgeria ishereby approved onbehalf
ofthe Community .
The text ofthis Protocol isannexed tothis Regulation .
Article 2
ThePresident oftheCouncil shall ,asregards the Coramursity ^give the
notification provided for inArticle 21<1>oftheProtocol® (1)
Article 3
This Regulation shall enter into force ontheday following itspublication
intheOfficial Journal oftheEuropean Communities .
This Regulation shall bebinding initsentirety anddirectly applicable inall
Member States .
Done at
For the Council
The President '
<*>Thedate oftheentry into force oftheFinancial Protocol will bepublished
intheOfficial Journal oftheEuropean Communities bytheGeneral Secretariat
ofthe Council .

COMMISSION
OFTHE
EUROPEAN COMMUNITIES
PROTOCOL ONFINANCIAL AND TECHNICAL COOPERATION
BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE
PEOPLE 'SDEMOCRATIC REPUBLIC OFALGERIA
Provisionol oddress :RuedelaLoi200 ,B-1040 Brussels«Téléphoné 3500 40-35 8040-Télégraphie address :•COMEUR Brussels•-
Telex :.COMEIJRRRU 21877 .

THECOUNCIL OFTHEEUROPEAN COMMUNITIES ,
oftheonepart ,and 1
THE PRESIDENT OFTHE PEOPLE 'SDEMOCRATIC REPUBLIC OFALGERIA
oftheother part ,
REAFFIRMING their resolve toimplement cooperation which will contribute
totheeconomic andsocial development ofAlgeria andpromote the
strengthening ofrelations between theCommunity and Algeria ,
ANXIOUS topursue tothis end the financial and technical cooperation
provided forinthe Cooperation Agreement ,
I
HAVE DECIDED toconclude this Protocol andtoffMs andhave designated
astheir Plenipotentiaries :

ARTICLE 1
Within theframework ofthefinancial andtechnical cooperation provided for inthe
Cooperation Agreement concluded between theEuropean Economic Community and the People 's
Democratic Republic ofAlgeria ,theCommunity shall participate ,onthe terms set out
inthis Protocol ,inthefinancing ofmeasures' intended tocontribute tothe
economic and social development ofAlgeria .
ARTICLE 2
1.For thepurposes specified inArticle 1and for aperiod expiring on
31October 1^86 ,anaggregate amount of 151 million ECUmaybecommitted
asfollows :
a> 107 million ECU inthe form ofloans from the European Investment
Bank ,hereinafter referred toasthe "Bank ",made from itsownresources ;
b)-44 million ECUfrom theCommunity 'sbudgetary resources ,composed
of :
16 million ECU intheform ofloans onspecial terms ;
-28 million ECU intheform ofgrants .
Provision may bemade forcontributions torisk capital formation ,tobe
charged against theamount shown inthe first indent ofb);these maytake
the form inter alia ofsubordinated loans ,conditional loans oracquisitions
ofholdings .
2.The loans referred toinparagraph 1(a)-with theexception ofthose
intended forfinancing the oil sector -carry a2%interest rate subsidy
financed bymeans ofthefunds shown inthesecond indent ofparagraph 1<b>.
I
#

2
ARTICLE3
1.ThetotalamountfixedinArticle2shallbeusedforthefinancingor
part-financingof:
-capitalprojectsir.thefieldsofproduction andeconomicinfrestructure,
aimedinparticularatdiversifyingth*»economicstructureofAlgeria
andespeciallyatpromotingitsindustrialization andmodernizingits
agriculture ;
-technicalcooperation schemesthatareapreliminary oracomplement
tocapitalprojectsdrawnupbyAlgeria;
-technicalcooperation inthefieldoftraining.
2.TheCommunity'sfinancialcontributions shallbeusedtocoverinternalandexternal
costsnecessarilyincurredincarryingoutapprovedprojectsorschemes(including
costsinrespectofstudies,consultingengineersandtechnicalassistance).
Theymaynotbeusedtocovercurrentadministrative ,maintenance or
operational expenditure .
ARTICLE4
1.Capitalprojectsshallbeeligibleforfinancingeitherbyloans
fromtheBank,combinedwithinterestratesubsidiesonthetermssetoutin
Article2,orbyloansonspecialterms,orbygrants,orbyacombinationcf
thesethreemeans.
2.Technicalandeconomiccooperationshallnormallybefinancedbygrants.
#

ARTICLE 5
1.The amounts tobecommitted each year shall bedistributed asevenly
aspossible throughout theperiod ofapplication ofthis Protocol .
*
?.Any funds notcommitted atthe <»ndoftheperiod referred toin
Article 2.1.shall beused ,until exhausted .Inthat case ,the funds shall be
used inaccordance with thesame arr*noe /nent sasthose laid down inthis Protocol .
ARTICLE 6
1.Loans granted bytheBank from itsown resources shall bemade in
accordance with the arrangements ,conditions andprocedures laid down in
itsStatute .They shall ,asregards their duration ,besubject toterms
established onthe basis ofthe economic and financial characteristics of
theprojects for which these loans ar»intended ,a'.so taking into account
tne conditions obtaining onthe caoital markets onwhich the Bank procures
its resources .The interest rate shall bedetermined inaccordance with the
Bank 'spractice atthe time ofsignature ofeach loan contract ,subject to
the in*:e-e«;t rate subsidy referred toinArticle 2<2).
2.Loonc onspecial terms shall begranted for40years with 10years'
postponement ofamortization and ataninterest rate of 1%per annum .The
terms andarrangements forconfibutions torisk capital formation shall be
determined onacase -by-case basis .
3.The loans may begranted through the intermediary oftheState or
appropriate Algerian bodies ,oncondition that they cnlend theamounts
totherecipients onterms decided ,byagreement with theCommunity ,on
thebasis oftheeconomic andfinancial characteristics oftheprojects
forwhich they areintended .

ARTICLE 7
Aidcontributed bytheCommunityfortheexecutionofcertainprojectsmay,withthe
agreementofAlgeriataketheformofco-financing inwhich,inparticular,creditand
development bodiesandinstitutions ofAlgeriaofMemberStatesorofthirdStatesor
international financeorganizations wouldtakepart.
ARTICLE8
In?followingshallbeeligibleforfinancial andtechnicalcooperation :
i)ingeneral: ' A •
-theAlgerian State;
b)withtheagreementoftheAlgerian Government,forprojectsor
measuresapprovedbyit:
-Algerian officialdevelopment agencies,
-privateagenciesworkinginAlgeriaforeconomicandsocialdevelopment,
-undertakings carryingontheiractivities inaccordance with
industrial andbusinessmanagement methodsandsetupaslegal
personswithinthemeaningofArticle12,
-grouosofproducers whoarenationalsofAlgeria,and,excep­
tionally,wherenosuchgroupsexist,theproducersthemselves,
-scholarshiD holdersandtraineessentbyAlgeria^underthetrainingschemes
referredtoinArticle3.

ARTICLE9
1.UpontheentryintoforceoftheAgreementtheCommunityand
Algeriashallestablishbymutualagreementthespecificobjectives
offinancialandtechnicalcooperation,byreferencetothepriorities
setbyAlgeria'sdevelopment pl«»n.
Theseobjectives maybereviewedbymutualagreementtotakeaccount
ofchangesinAlgeria's'economicsituationorintheobjectivesand
prioritiessetbvitsdevelopment plan.
2.Withintheframeworkestablished pursuanttoparagraph 1,financial
andtechnicalcooperationshallapplytoprojectsandschemesdrawnup
byAlgeria .orbyotherbeneficiaries approvedbythatcountry.
ARTICLE10
\
1.TheAlgerianStateor,withtheagreementofitsGovernment,theotherpossibl
beneficiaries referredtoinArticle8shallpresenttheirrequestsfor
financialaidtotheCommunity.
2.TheCommunityshallappraisetherequestsforfinancingincollaboration withth
competentAlgerianauthorities andtheotherbeneficiaries ,inaccordance
withtheobjectivesreferredtoinArticle9(1),andshallinformthem
ofthedecisionstakenonsuchrequests.
ARTICLE11
i.Theexecution,management andmaintenance ofschemesthatarethe
subjectoffinancingunderthisProtocolshallbetheresponsibility of
AlgeriaortheotherheneficiariesreferredtoinArticle8ofthis
Protocol.
TheCommunityshallmakesurethatthisfinancialaidisexpendedin
accordancewiththeagreedallocations andtothebesteconomicadvan­
tage.
(
2.Certainrulesforadministering thefinancialaidgrantedbytheCom­
munitywillbethesubjectofanexchangeoflettersbetweentheCommission
andAlgeriaattheconclusionofthisprotocol.

ARTICLE 126
Allnatural andleqal persons which come within thescope ofthe
Treaty establishing the EECand allnatural and legal persons of
Algeria mayparticipate onequal ter«s intendering procedures and
other procedures fortheauard ofcontracts likely tobefinanced .Such
legal persons formed inaccordance with the lawofaMember State oftheEEC
orofAlgeria must have their registered offices ,their administrative head
offices ortheir principal establishments intheterritories inwhich
theTreaty establishing theCuropean Economic .Community ,isapplied orin
Algeria ;however ,where only their registered offices are inthose
territories orinAlgeria ttheactivities ofsuch legal persons must be
effect'Ivcly ar>dcontinuously linked witfy theeconomy ofthose territories
orcvAlgeri a.
ARTICLE 13
Topromote participation byAlgerian undertakings intheperformance
ofuorks contracts ,anaccelerated procedure forissuing invitations totender
involving shorter time limits forthesubmission oftenders maybeused where
theworks inquestion ,because ofthei ?scale ,aremainly ofinterest to
Algerian undertakings .
This accelerated procedure maybeused forinvitations totender thevalue of
which isestimated atless than twomillion ECU .
ARTICLE 14
1.Algeria shall apply tocontracts awarded fortheexecution of
projects orschemes financed bytheCommunity fiscal andcustoms arr ;tna<»m »«*«
noless favourable thai those applied vis-S-vis themost favoured international
development ornanization .
2'.The fiscal andcustoms arrangements shall beestablished bymeans ofan
exchange ofletters between the Parties .
ARTICLE 15
Algeria shall take thenecessary measures toensure that interest andall
other payments due totheCommunity inrespect ofloans granted under this
Protocol areexempted from anynational orlocal taxolevy .

7.
ARTICLE1A
Wherealoanisaccordedtoabeneficiary otherthantheAlgerian
State,theprovisionofaguaranteebythelatterorofotheradequate
guarantees mayberequiredbytheCommunityasaconditionofthegrantoftheLoan.
ARTICLE17
Throughoutthedurationoftheloansaccordedpursuanttothis
Protocol,Algeriashallundertaketomakeavailabletodebtors
enjoyingsuchloansortotheguarantors .thereoftheforeigncurrency
necessaryforthepaymentofinterest,commission andothercharges
andtherepaymentofprincipal.
ARTICLE18
Theresultsoffinancialandtechnicalcooperation maybeexamined
withintheCooperation Council.The'.attershallestablish,
whereappropriate,thegeneralguidelinesofsuchcooperation.
ARTICLE19
OneyearbeforetheexpiryofthisProtocol,theContractingParties
shallexaminewhatarrangements couldbemadeforfinancialandtech­
nicalcooperation duringapossiblefurtherperiod.
*
4

8
ARTICLE20
ThisProtocolshallbeannexedtotheCooperation Agreementconcluded
betweentheEuropeanEconomicCommunityandTunisia.
ARTICLE21
1.ThisProtocolshallbesubjecttoapprovalinaccordance withthe
ContractingParties'ownprocedures;theContractingPartiesshall
notifyeachotherthattheproceduresnecessarytothisendhavebeen
completed.
2.ThisProtocolshallenterintoforceon.thefirstdayofthesecond
monthfollowingthedateonwhichthenotifications providedforin
paragraph 1havebeengiven.
ARTICLE22
ThisProtocolisdrawnupintwooriginalcopiesintheOanish/Dutch,English,
French,German,Greek,ItalianandArabiclanguages,eachofthese
textsbeingequallyauthentic.

ANNEX
J

<5
COMMISSION
OFTHEEUROPEAN COMMUNITIES
Oiractorata-Ganaral forDavalopmant
Minutes ofthenegotiation ofaprotocol onfinancial
and technical cooperation between the European Economic
Community andthePeople 'sDemocratic Republic ofAlgeria
Joint déclaration concerning Article 2paragraph 1
Itisunderstood that thedefinition ofpossible forms ofrisk capital as
given inarticle 2.1 .isnotexhaustive neither does itcommit Algeria nor
theCommunity ,tooneormore ofthose definitions .TheCommunity clarifies
theexpression "acquisition ofholdings "asreferring totemporary ,
minority holdings .•
Joint déclaration concerning Article 2paragraph 2
Itisunderstood that bythe words "oilsector "shall bemeant "theprospection ,
extraction ,transmission (excluding distribution within Algeria )andrefining
(excluding petrochemical conversion )ofhydrocarbons ".
Joint déclaration concerning Article 3paragraph 1
Λ.Theprovisions ofarticle 3.1 .donotexclude from eligibility forfinancing
bytheCommunity projects having astheir objective thesocial development
referred tointhepreamble and inArticle 1.
i

/fc>
I (%
-2-
Joint déclaration concerning Article 5paraqraph 2
Itisunderitood that theapplication ofarticle 5.2 „isdependent upon the
submission bytheGovernment ofAlgeria ofmutually acceptable projects . 1
Declaration oftheDelegation oftheCommunity concerning Article 12
The provisions ofthe Financial Protocol are without prejudice tothe
general question oftheorigin ofaideligible forfinancing bytheBank
from itsown resources and donot,inthis connection ,affect theexercise
bytheBank 'sbodies oftheir powers under the Statute oftheBank .
The special loans and the grants for the financing oftechnical co-operation
maybeused tofinance aidoriginating outside theCommunity and Algeria ,inthe
event ofCommunity participation injoint co-financing according toarticles
7and 10ofthe Protocol .

RECOMMENDATION
FOR ACOUNCIL REGULATION
concerning theconclusion ofaFinancial Protocol
between theEuropean Economic Community and the
REPUBLIC OFTUNISIA
THE COUNCIL OFTHE EUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,
and inparticular Article 238thereof ,
Having regard totheRecommendation from theCommission ,
Having regard totheopinion oftheEuropean Parliament ,
Whereas theFinancial Protocol between theEuropean Economic Community
and theREPUBLIC OFTUNISIA ,Signed on
,should beconcluded ,
HAS ADOPTED THIS REGULATION :
Article 1
The Financial Protocol between theEuropean Economic Community and
theREPUBLIC OFTUNISIA ishereby approved onbehalf
oftheCommunity .
Tftetext ofthis Protocol .isannexed tothis Regulation .
Article 2
ThePresident oftheCouncil shall ,asregards theCommunity ,give the
notification provided for inArticle 21CDoftheProtocol .(1)
Article 3
This Regulation shall enter into force onthedayfollowing itspublication
intheOfficial Journal oftheEuropean Communities .
This Regulation shall bebinding initsentirety anddirectly applicable inall
Member States .
Done at
For the Council
The President
(5)Thedate oftheentry into force oftheFinancial Protocol will bepublished
intheOfficial Journal oftheEuropean Communities bytheGeneral Secretariat
ofthe Council .

COMMISSION
OFTHE
EUROPEAN COMMUNITIES
PROTOCOL ONFINANCIAL ANDTECHNICAL COOPERATION
BETWEEN THEEUROPEAN ECONOMIC COMMUNITY ANDTHE
REPUBLIC OFTUNISIA
Provis»on<jIoddressRuedeloLoi200,B–1040Brossels-Téléphoné350040-358040-Télégraphieaddress:«COMEURBrussels >
Telex:.COMEURBRU 21877.

THECOUNCILOFTHEEUROPEANCOMMUNITIES,
oftheonepart,and
thePRESIDENT OFTHEREPUBLIC OFTUNISIA,
oftheotherpart,
REAFFIRMING theirresolvetoimplementcooperation whichwillcontribute
totheeconomicandsocialdevelopment ofTunisia andpromotethe
strengthening ofrelationsbetweentheCommunityandTunisi§,
ANXIOUStopursuetothisendthefinancial andtechnicalcooperation
providedfori.itheCooperation Agreement,
HAVEDECIDEDtoconcludethisProtocolAndtoendhavedesignated
astheirPlenipotentiaries : ^

ARTICLE 1
Withintheframeworkofthefinancialandtechnicalcooperation providedforinthe
Cooperation AgreementconcludedbetweentheEuropeanEconomicCommunityandthe
RepublicofTunisia,theCommunityshallparticipate/onthetermssetout
inthisProtocol^inthefinancingofmeasures'intendedtocontributetothe
economicandsocialdevelopment ofTunisia.
ARTICLE2
1.ForthepurposesspecifiedinArticle1andforaperiodexpiringon
31October1986/anaggregateamountof139millionECUmaybecommitted
asfollows:
a)78millionECUintheformofloansfromtheEuropeanInvestment
Bank,hereinafterreferredtoasthe"Bank"/madefromitsownresources;
b)•61millionECUfromtheCommunity'sbudgetaryresources/composed
of:
24millionECUintheformofloansonspecialterms;
37millionECUinth«formofgrants.
Provisionmaybemadeforcontributions toriskcapitalformation,tobe
chargedagainsttheamountshowninthefirstindentofb);thesemaytake
theforminteraliaofsubordinated loans*conditional loansoracquisitions
ofholdings.
2.Theloansreferredtoinparagraph 1(a)-withtheexceptionofthose
intendedforfinancingtheoilsector-carrya3%interestratesubsidy
financedbymeansofthefundsshowninthesecondindentofparagraph 1(b).
9

ARTICLE 3
1.The total amount fixed inArticle 4shall beused forthefinancing or
part -financing of :
-capital projects inthefields ofproduction andeconomic infrestructure ,
aimed inparticular atdiversifying the economic structure ofTunisia
andespecially atpromoting itsindustrialization andmodernizing its
agriculture ;
-technical cooperation schemes that are apreliminary oracomplement
tocapital projects drawn upbyTunisia ;
-technical cooperation inthefield oftraining .
2.The Communi ty'sfinancial contributions shall beused tocover internal and external
costs necessarily incurred incarrying outapproved projects orschemes (including
costs inrespect ofstudies ,consulting engineers andtechnical assistance ).
They maynot beused tocover current ^dmini strati ve,maintenance or
operational expenditure . ^
ARTICLE 4
1.Capital projects shall beeligible forfinancing either byloans
from theBank ,combined with interest rate subsidies ontheterms setout in
Article 2,orbyloans onspecial terms ,orbygrants ,orbyacombination cf
these three means . 1
2.Technical andeconomic cooperation shall normally befinanced bygrants .
/

ARTICLE 5
1.Theamountstobecommitted eachyearshallbedistributed asevenly
aspossiblethroughouttheperiodofapplication ofthisProtocol.
?.Anyfundsnotcommittedattheendoftheperiodreferredtoin
Article2.1.shallbpused,untilexhausted.Inthatcase,thefundsshallbe
usedinaccordancewiththesamparr«noe/nent$asthoselaiddowninthisProtocol.
ARTICLE 6
1.LoansgrantedbytheBankfromitsownresourcesshallbemadein
accordance withthearrangements,conditions andprocedures laiddownin
itsStatute.Theyshall,asregardstheirduration,besubjecttoterms
established onthebasisoftheeconomic andfinancialcharacteristics of
theprojectsforwhichtheseloansa<""intended,alsotakingintoaccount
tneconditions obtaining onthecaoitalmarketsonwhichtheBankprocures
itsresources .Theinterestrateshallbedetermined inaccordance withthe
Bank'spracticeatthetimeofsignatureofeachloancontract,subjectto
thein*:e-e^tratesubsidyreferredtoinArticle2(2).
2.Loan<onspecialtermsshallbegrantedfor40yearswith10years'
postponement ofamortization andataninterestrateof1Xperannum.The
termsandarrangements forconfibutions toriskcapitalformationshallbe
determined onacase-by-casebasis.
3.Theloansmaybegrantedthroughtheintermediary oftheStateor
appropriate Tunisianbodies,onconditionthattheyonlendtheamounts
totherecipients ontermsdecided,byagreementwiththeCommunity,on
thebasisoftheeconomicandfinancialcharacteristicsoftheprojects
forwhichtheyareintended.

ARTICLE7
Aidcontributed bytheCommunityfoptheexecutionofcertainprojectsmay,withthe
agreementofTunisia,taketheformofco-financing inwhich,inparticular,creditand
development bodiesandinstitutions ofTunisiaofMemberStatesorofthirdStatesor
international financeorganizations wouldtakepart.
ARTICLE8
Thefollowingshallbeeligibleforfinancial andtechnicalcooperation :
a)ingénéral:
-theTunisianState;
b)withtheagreementoftheTunisian Government,forprojectsor
measuresapprovedbyit:
-Tunisian officialdevelopment agencies,
-privateagenciesworkinginTunisiaforeconomicandsocialdevelopment,
-undertakings carryingontheiractivities inaccordance with
industrial andbusinessmanagement methodsandsetupaslegal
personswithinthemeaningofArticle12,
-groupsofproducers whoarenationalsofTunisia,and,excep­
tionally,wherenosuchgroupsexist,theproducersthemselves,
-scholarshio holdersandtraineessentbyTunisiaunderthetrainingschemes
referredtoinArticle3.

5.
ARTICLE 9
1.Upon theentry into force oftheAgreement theCommunity and
Tunisia shall establish bymutual agreement thespecific objectives
offinancial and technical cooperation ,byreference tothepriorities
set byTunisia 's development plan .
These objectives may bereviewed bymutual agreement totake account
ofchanges in Tunisia 's 'economic situation orintheobjectives and
priorities set bvitsdevelopment plan .
2.Within theframework established pursuant toparagraph 1,financial
and technical cooperation shall apply toprojects and schemes drawn up
by Tunis.ia orbyother beneficiaries approved bythat country .
ARTICLE 10
1.TheTunisian State or/with theagreement ofitsGovernment ,theother possible
beneficiaries referred toinArticle 8shall present their requests for
financial aid totheCommunity .
2.The Corn-nudity sh^U appraise the requests forfinancing incollaboration with the
competent Tunisian authorities and theother beneficiaries ,inaccordance
with theobjectives referred toinArticle 9(1>,andshall inform them
ofthedecisions taken onsuch requests .
ARTICLE 11
1.Theexecution ,management and maintenance ofschemes that are the
subject offinancing under this Protocol shall bethe responsibility of
Tunisia orthe other beneficiaries referred toinArticle 8ofthis
Protocol .
The Community shall make sure that this financial aid isexpended in
accordance with theagreed allocations and tothe best economic advan­
tage .
2.Certain rules foradministering thefinancial aidgranted bytheCom­
munity will bethesubject ofanexchange ofletters between theCommission
andTunisia attheconclusion ofthis protocol .
•/••••

6.
ARTICLE 12
Allnatural andleqal persons which come within thescope ofthe
Treaty establishing the EEC and allnatural And legal persons of
Tunisia mayparticipate onequal terms intendering procedures end
other procedures fortheaward ofcontracts likely tobefinanced .Such
legal persons formed inaccordance with the lawofaMember State ofthe EEC
orofTunisia must have their registered offices ,their administrative head
offices ortheir principal establishments inthe territories inwhich
theTreaty establishing theEuropean Economic Community ,isapplied orin
Tunisia ;however ,where only their registered offices are inthose
territories orinTunisia /theactivities ofsuch legal persons must be
effectively aidcontinuously linked witf )theeconomy ofthose territories
orofTunisia .
ARTICLE 13
7opromote part icipat ionbyTunisian undertakings intheperformance
ovuorUs contracts ,anaccelerated procedure forissuing invitations totender
i.-.volving shorter time limits forthesubmission oftenders maybeused where
theworks inquestion ,because ofthei ?scale ,aremainly ofinterest to
Tunisian undertakings .
This iccelerated procedure maybeused forinvitations totender thevalue of
wr»ich isestimated atless than twomillion ECU .
ARTICLE U
«
1.Tunisia shall apply tocontracts awarded fortheexecution of
projects orschemes financed bytheCommunity fiscal and customs arrana*m# «*«
noless favourable than those applied vis-i-vis the most favoured international
development organization .
2.The content ofthe arrangements mentioned inthe above paragraph shall be
established bymeans ofanexchange ofletters between the Parties .
ARTICLE 15
Tunisia shall take thenecessary measures toensure that interest and all
other payments duetotheCommunity inrespect ofloans granted under this
Protocol artexempted from anynational orlocal taxoflevy .

7.
ARTICLEU
Wherealoanisaccordedtoabeneficiary otherthantheTunisian
State,theprovisionofaguaranteebythelatterorofother-adequate
guarantees mayberequiredbytheCommunityasaconditionofthegrantoftheloan.
ARTICLE17
Throughoutthedurationoftheloansaccordedpursuanttothis
Protocol,Tunisiashallundertaketomakeavailabletodebtors
enjoyingsuchloansortotheguarantorsthereoftheforeigncurrency
necessaryforthepaymentofinterest,commission andothercharges
andtherepaymentofprincipal.
ARTICLE18
Theresultsoffinancialandtechnicalcooperation maybeexamined
withintheCooperation Council.Thp'.attershallestablish,
whereappropriate,thegeneralaui<"*linesofsuchcooperation.
ARTICLE19
OneyearbeforetheexpiryofthisProtocol,theContractingParties
shallexaminewhatarrangements couldbemadeforfinancialandtech­
nicalcooperation duringapossiblefurtherperiod.
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8.
ARTICLE20
ThisProtocolshallbeannexedtotheCooperation Agreementconcluded
betweentheEuropeanEconomicCommunityandAlgeria..
ARTICLE21
1.ThisProtocolshallbesubjecttoapprovalinaccordancewiththe
ContractingParties'ownprocedures;theContractingPartiesshall
notifyeachotherthattheproceduresnecessarytothisendhavebeen
completed.
2.ThisProtocolshallenterintoforceon.thefirstdayofthesecond
monthfollowingthedateonwhichthenotifications providedforin
paragraph 1havebeengiven.
ARTICLE22 v
ThisProtocolisdrawnupintwooriginalcopiesintheDanish,Dutch,English,
French,German,Greek,ItalianandArabiclanguages,eachofthese
textsbeingequallyauthentic.
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*

ANNEX

COMMISSION
OFTHEEUROPEAN COMMUNITIES
Oirtctofit**G«n«rai for0«v#lopff»#ni
Minutes ofthenegotiation ofaprotocol onfinancial
andtechnical cooperation between the European Economic
Community and theRepublic ofTunisia .
V.
Joint déclaration concerning Article 2paragraph 1
Itisunderstood that thedefinition ofpossible forms ofrisk capital as
given inarticle 2.1 .isnotexhaustive neither does itcommit Tunisia nor
theCommunity ,toone ormore ofthose definitions .TheCommunity clarifies
theexpression "acquisition ofholdings "asreferring totemporary /
minority holdings .•
Joint déclaration concerning Article 2paragraph 2
Itisunderstood that bythe words "oil sector "shall bemeant "theprospection
extraction /transmission (excluding distribution within Tunisia )andrefining
(excluding petrochemical conversion )ofhydrocarbons ".
Joint déclaration concerning Article 3paragraph 1
Theprovisions ofarticle 3.1 .donotexclude from eligibility forfinancing
bytheCommunity projects having astheir objective thesocial development
referred tointhepreamble andinArticle 1. '

-2-
Joint déclaration concerning Article 5paragrapn 2
Itisunderstood th.st theapplication ofarticle 5.2 .isdependent upon the
submission bytheGovernment ofTunisia "ofmutually acceptable projects .
Declaration oftheDelegation oftheCommunity concerning Article 12
Theprovisions ofthe Financial Protocol are without prejudice tothe
general question oftheorigin ofaideligible forfinancing bytheBank
from itsown resources and donot,inthis connection ,affect theexercise
bytheBank 'sbodies oftheir powers under theStatute oftheBank .
The special loans andthegrants forthefinancing oftechnical co-operation
maybeused tofinance aidoriginating outside theCommunity andTunisia ,inthe
event ofjoint co-financing andwhere thewisdom ofusing that type ofco-financing
has been shown .
Statement bytheTunisian Delegation concerning Article 13
The Tunisian Delegation considers that the preferential margin -the
accelerated procedure with aceiling of2million ECU -granted toTunisian
undertakings inconnection with invitations totender does not take 'suffi­
cient account ofthe respective levels ofcompetitiveness ofEuropean and
Tunisian undertakings .Ittherefore wishes toreaffirm theparticular
importance itattaches tothis matter sothat infuture asolution based
onnon-discrimination between Tunisia and other non-member countries -and
one which isinany event compatible with the spirit and letter ofthe
third and fourth paragraphs ofthePreamble tothe EEC-Tunisia' Cooperation
Agreement -can befound tothis problem .