ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(80)214
Vol.1980/0066

Disclaimer
Conformément aurèglement (CEE, Euratom) n°354/83 duConseil du1erfévrier 1983
concernant l'ouverture aupublic desarchives historiques delaCommunauté économique
européenne etdelaCommunauté européenne del'énergie atomique (JOL43du15.2.1983,
p.1),telquemodifié par lerèglement (CE, Euratom) n°1700/2003 du22septembre 2003
(JOL243du27.9.2003, p.1),cedossier estouvert aupublic. Lecaséchéant, lesdocuments
classifiés présents dans cedossier ontétédéclassifiés conformément àl'article 5dudit
règlement.
Inaccordance with Council Regulation (EEC, Euratom) No354/83 of1February 1983
concerning theopening tothepublic ofthehistorical archives oftheEuropean Economic
Community andtheEuropean Atomic Energy Community (OJL43,15.2.1983, p.1),as
amended byRegulation (EC, Euratom) No1700/2003 of22September 2003 (OJL243,
27.9.2003, p.1),this fileisopen tothepublic. Where necessary, classified documents inthis
filehave been declassified inconformity with Article 5oftheaforementioned regulation.
InÜbereinstimmung mitderVerordnung (EWG, Euratom) Nr.354/83 desRates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft undderEuropäischen Atomgemeinschaft (ABI. L43vom 15.2.1983,
S.1),geändert durch dieVerordnung (EG, Euratom) Nr.1700/2003 vom 22.September 2003
(ABI. L243vom 27.9.2003, S.1),istdiese Datei derÖffentlichkeit zugänglich. Soweit
erforderlich, wurden dieVerschlusssachen indieser Datei inÜbereinstimmung mitArtikel 5
dergenannten Verordnung freigegeben.

COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(80)214 final
Brussels,29thApril1980
l~3<^\t™Siq
REPORTONTHEOPERATION DURINGTHEYEAROFAPPLICATION 1978
OFTHESYSTEMFORSTABILIZING EXPORTEARNINGS
SETUPBYTHEDECISION ONTHEASSOCIATION
OFTHE.OCTWITHTHEEEC
(Communication fromtheCommission totheCouncil)
COM(80)214final

1.Article 29oftheInternal Agreement onthefinancing andadministration
ofCommunity aid requires theCommission toprepare anannual comprenen -
.sive report ontheoperation ofthesystem forstabilizing export earnings
asregards theACPStates and theoverseas countries andterritories .
2.TheCommission presents simultaneously totheCouncil thefourth compre­
hensive report ontheoperation during 1978 ofthesystem setupbythe
Lom# Convention forstabilizing export earnings .
3.This comprehensive report isconcerned with theapplication fortheyear
1978 ofthesystem forstabilizing export earnings setupbytheCouncil
Decision of29June 1976 onthe association ofthe overseas countries and
territories with theEuropean Economic Community .Itdeals with :
(i)general developments since thefirst ,second andthird reports were
drawn up;
(ii)theresults ofthefourth year ofapplication ofthesystem ;
(iii)theeffect ofthetransfers ontheeconomic development ofthe
recipient countries /andonthedevelopment ofexternal trade .
ν
GENERAL DEVELOPMENTS
4.Animportant development since thepublication ofthethird report hasbeen
thechange ofpolitical status for StLucia ,StVincent and theGilbert
Islands .StLucia gained independence on23February 1979 ,StVincent on
27October 1979 and theGilbert Islands (now known asKiribati )on12July
1979 .
5.Three former OCT have acceded tothe Lom6 Convention .The Solomon Islands
on27September 1978 ,Tuvalu on17January 1979 ,and Dominica on26Feb­
ruary 1979 .Atransfer has been accorded toTuvalu during the year ofap~
plication 1978 .
6.However ,pursuant toArticle 1(5)ofthe Internal Agreement onthe fi­
nancing andadministration ofCommunity aid,those ACP States .which are
former OCT,that have become independent and have acceded totheLome Con­
vention under Article 89continue inthe future tobecovered bythe fund
forstabi lizing theexport earnings oftheOCT,provided for inArticle 1
(3)Cc)ofthat Agreement .
7.Themachinery forcooperation with thecountries andterritories asdes­
cribed inthereports for1975 ,1976 and1977 continued tofunction satis­
factorily .
8.Inaccordance with Article 22oftheDecision ,information ontheutiliza­
tion ofthe resources transferred during 1978 will bedrawn upinasepa­
rate report ,tobepresented totheCouncil atalater date .
9.Reference should also bemade totheexchange ofviews between theMember
States andtheCommission which ,asin1975 ,1976 and1977 ,enabled answers
-tobegiven torequests forinformation ,andproved very useful andfruit­
ful .

-2-
II.FOURTH YEAR OFAPPLICATION OFTHE SYSTEM
10.The Commission hasreceived three requests fortransfers fortheyear of
application 1978 from theOCTappropriation .The three requests were re­
ceived from twoOCT,which have become ACPStates through accession to
theLom6 Convention under Article 89,namely the Islamic Republic ofthe
Comoros ,andTuvalu . \
11.All three applications were admissible since thedependence and fluctu­
ation thresholds provided for bythe Decision onthe association ofthe
OCT with the EEC had been exceeded under the conditions set .
12.Examination ofthetrend oftotal exports from the countries and terri­
tories confcerned didnotshow anysignificant change ,andconsequently
there wasnoneed forconsultations within themeaning ofArticle 21 (4)
ofthe Decision . ,
13.Theoverall results forthe latest year ofapplication oftheDecision -
are asfollows r
OCT Product Amount oftransfer inEUA
ACP
Comores
TuvaluProduct
Copra
Cloves
CopraAmount oftransfer inEUA
39,253
180,299
48,771219,552
48,771
268,323
14.Both countries concerned received non-repayable transfers .Thus ,for .1978
100 %ofthetransfers were therefore made intheform ofgrants .
15.The transfers concern two products :cloves 67.2 Xand copra 32.8 %.
16.These transfers compensated forfalls inearnings resulting from local
circumstances (81.8 %)and market conditions (18.2 £).
17.With regard tothe reconstitution ofthe resources ,theCommission ,in
accordance with Article 23 (3)oftheDecision ,and thepractical arran­
gements embodied intheexchange ofletters which takes place onthe oc­
casion ofeach transfer ,carried out thenecessary investigations in
connection with thetransfers made for 1975 ,1976 and 1977 toOCT which
had undertaken tocontribute tothe reconstitution ofthe system 'sre­
sources .Investigations showed that inthecase ofKiribati andtheAnglo -
French Condominium oftheNew Hebrides ,the conditions laid down inthe
Decision hadbeen met.TheCommission has not asyetnotified the respon­
sible authorities oftheOCTconcerned ofitsfindings ,due toreconsti­
tution difficulties for the year ofexamination 1977 . y

18.In1977 ,theauthorities ofKiribati andtheAnglo-French Condominium of
theNewHebrides were informed that theconditions for reconstitution had
been fulfilled .Kiribati wasexpected toreconstitute 174,972 EUAwith
respect tothe1976 transfer .Pending adecision ontheir application
for achange ofstatus under Article 2386oftheDecision ,theKiribati
authorities have not atthepresent time made the contribution available
tothefund .TheNewHebrides wasrequired toreconstitute atotal amount
of1,430,863 EUA,that is1,103,499 EUAwith respect tothe1975 transfer
and327,364 EUAwith respect tothe1976 transfer .The _British authorities
have reconstituted 50%ofthetotal requested ,butnocontribution has
been forthcoming from the French authorities .Thematter has been raised
with the French authorities who have informed the Commission Services
that they will reconstitute their contribution atthe start ofthe fiscal
year 1980 .-
19.The applications which were submitted from the two territories in1978
for achange ofstatus under Article 23§6ofthe Decision have been
examined within theofficial community framework .Ithasbeen agreed that
from 1January 1979 Kiribati and theAnglo-French Condominium oftheNew
Hebrides areadded tothe list ofterritories atArticle 23paragraph 5
oftheDecision ,fortheyears ofapplication 1978 and1979 .With regard
tothetransfers received inprevious years ,theCommission Services ,
inaccordance with Article 23<3)oftheDecision andwith thepractical
arrangements laid down intheexchange ofletters ,will make theneces­
sary investigations and notify theNational Authorities oftheoutcome .
20.The four late requests ,received from Kiribati ,theSolomon Islands and
•Tuvalu ,fortheyear ofapplication 1975 ,which were initially turned
down ,have nowbeen accepted ,and thetransfers carried out,byanalogy
with the solution given toasimilar problem for the ACP States .
21.Inaccordance with Article 20 (3)oftheDecision ,theunexpended balance
atDecember 1979 for the year ofapplication 1978 isasfollows :
4,000,000 EUA 1978 allocation
+3,731,677 ""1977 carry over
+776,565 repayment received
+1,630,641 " expected repayments
268,323 " amount of1978 transfers
9,870,560 EUA
This amount will becarried forward automatically and added with effect
from 1January 1980 tothe amount available for the year ofapplication
1979 .
III .EFFECT OFTHE TRANSFERS ONTHE ECONOMIC DEVELOPMENT OFTHE RECIPIENT COUN­
TRIES AND ONTHE DEVELOPMENT OFEXTERNAL RELATIONS
22.Article 29ofthe Internal Agreement onthefinancing andadministration
ofCommunity aidstipulates that theCommission 'sannual report shall
indicate inparticular theeffect ofthesystem ontheeconomic develop­
ment oftherecipient countries andonthedevelopment ofexternal trade .
23.The same -article also stipulates that theCommission shall forward tothe
Member States thereports ,which itreceives .The1978 transfers infavour

-4-
oftheOCTwere carried outinMayandJune of1979 .Atthepresent time,
notoneoftherecipient countries hasforwarded areport totheCommis­
sion .
TheCommission will transmit totheMember States thereports on ,theuti­
lization ofthefunds transferred ,assoon asthey areinitspossession .

BreakdownofSTABEXtransfersfor1975,1976,1977and1978
accordingtonationalcurrencyrequestedbytheOCT
Nationalcurrency Amounttransferred inEUA Proportion oftotalinXI
1975
(1)1976
(2)1977
(3)1978
<4)(1)+(2)+(3)+(4 )1975
(1)1976
(2)1977
(3)1978
(4)(1)+(2)+(3)+(4 )
FrenchFranc 1,658,697 879,2001,260,556 219,552 4,018,005 41.926.686.281.8 44.7
GermanMark 139,650 139,650 3.5 1.6
PoundSterling 2,161,609 2,421,155 202,71448,771 4,834,249 54.673.413.818.2 53.8
BelgianFrancj–
!
DutchguilderI ''ANNEX1

I i
ANNEX 2
l *
Aggregate transfers for1975 .1976 ,1977 and1978
1.Breakdown byOCT (inEUA)
OCT Product 1975 Product 1976 Product 1977 Product 1978 Amount 1975 Amount 19761
Amount 19771 Amount 1978 Total
s-– ;
jBelize'Sawn woodM Sawn wood 139,650 202,714 342,364
Comoros Copra Copra Copra
Cloves
Ylang-ylangCopra
Cloves298,304 286,508 367,784
552,547
170,59639,253
180,299991,849
732,846
170,596
1,895,291
Djibouti Rawhides ,
skins and
leatherRawhides ,
skins and
leatherRawhides ,
skins and
leather256,894 265,328 169,629 691,851
Kiribati Copra Copra 1,200,321 1,083,098 2,283,419
J
New Hebrides Copra Copram 1,103,499 327,364 1,430,863
Salomon
IslandsCopra
Wood inthé
roughCopra 138,502
761,2451,273,640 1,412,142
761,245
2,173,387
Tuvalu Copra Copra Copra 61,541 64,417 48,771 174,729
TOTAL 3,959,956 3,300,355 1,463,270 268,323 8,991,904
i

-ANNEX2 ---
2.Breakdown byproduct 1
Prouuct1975 1976 1977 1978 TOTAL
Amount XAmount XAmount XAmount XAmountr
Cloves 552/54737.8180,299 67.2 732/846«•Vy
Copra 2/802/16770.763/035/02792.0 367/78425.188/02432.86/293/00270.0
Rawhides,skins
andLeather 256/8946.49265/3288.0.169/62911.6 691/8517t
•>►»,
7.7
Sawnwood 139/6503.53 202/71413.8 342/3643.8
Woodintherough 761/24519.22I
i761/245
Ylang-ylang 170/59611.7 170/596
TOTAL 3/959/956100.003/300/355100.00 1/463/270100.00268/323100.008/991/904100.00
IProducts 1975 II !
I% !I
1976 %.1977l
'%1978 XTotal■
sufferingfromeco­
nomicsituation 1/316/44333.24 551/83616.72202/71413.8548/77118.22/119/764!■
23.6
sufferingfromlocal
circumstances 2/643/51366.762,748,519 83.28 1/260,556 86.15219/55281.86,872/140',»H
76.4-r-
TOTAL 3/959/956100.003/300/355100.00 1/463/270100.00
I–}
268,323100.00|»
8,-991,904 100.00

ANNEX2
3.Natureoftransfers
I-11975 X 1976 X 1977 X1978 XTOTAL X
Grants 1,516,486 38.301,889,893 57.261,260,556 86.15268,323 100.004,935,258 54.9
Loans 2,443,470 61.701,410,462 42.74202,714 13.85 4,056,646 45.1
/
TOTAL 3,959,956 100.003,300,355 100.001,463,270 100.00268,323 100.008,991,904 100.00
/
4.Utilization ofannualinstalments
1975 X1976 X 1977 X1978 XTOTAL X
Disburse -*
mentsI
3,959,956 99.003,300,355 82.511,463,270\
36.58268,323ι
6.708,991,904 56.20
.Reconsti -*
tution 61,133 1.53 715,432 17.90 776,-565 4.90
Balance 40,044 1.00760,778 19.022,536,730 63.424,447,109 111.207,784,661 48.70
Annual
instalment 4,000,000 100.004,000,000 100.004,000,000 100.004,000,000 100.0016,000,000 100.00

-4-
ANNEX 2
5.Reconsti tution
1978 /1979
OCT Product
IYear inrespect of
which the transfer
was madeRequested amounts
for reconstitution
(inEUA )Amounts
reconstituted
(inEUA )
New
Hebrides Copra 1975 1,103-499 551-750
MCopra 1976 . 327-364 163-682
TOTAL 1-430,863 715-432 *
*)Situation asatOctober 1979 -50%only ofamounts requested have been
reconstituted .
\