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DOCUMENTS "COM"
COM(73)1860
Vol.1973/0330

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COMMISSION OFTHEEUROPEAN COMMUNITIES
I
COM(73)1860final
Brussels,7November1973
RECOMMENDATION FORA
■COUNCILDECISION
onthepositiontobeadoptedbytheCommunity
intheOECDwithregardtoaspecialagreementon
groundstationsfortelecommunications satellites
(submittedtotheCouncilbytheCommission)
COM(73)i860final

Explanatory memorandum
Theaimofthis Recommendation istosecure theadoption bytheCouncil of
anumber ofdirectives concerning theposition that theCommunity should
adopt intheOECD with regard totheframing ofaspecial agreement onthe
credit terms which maybegranted forground stations fortelecommunications
satellites .
This Recommendation arises from the Commission 'sRecommendations tothe
Council concerning thespecial agreements being discussed intheOECD on
thesubject ofexport credit fornuclear power plants andaircraft .
Inthis sphere too itappears necessary toavoid anydistortions of
competition ordeterioration ofcredit terms .Thus the Commission
considers that theCommunity should define theprinciples ofitscommercial
policy onthis subject andparticipate intheframing ofthecontemplated
OECD special agreement .
Forthis purpose therepresentatives oftheMember States and the
Commission conferred intheCoordinating Committee onCredit Insurance ,
Guarantees andFinancial Credit Policies andarrived atajoint approach .
The Commission therefore considers that the time has come for the Council
tolaydown certain guidelines fortheCommunity 'sposition onthebasis
ofthe conclusions reached inthose consultations 9andrecommends that it
should adopt forthis purpose theDecision thedraft ofwhich isannexed
hereto .

Kecommendation for a
Council Decision ontheposition to "be
adopted bytheCommunity intheOECD with
regard toaspecial agreement onground
stations for telecommunications satellites
THjCOUNCIL OPTH3 EUROPEAIT COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Sconomic Community ;
andinparticular Arfciclo 113thereof
Having regard totheRecommendation from theCommission ;
Whereas itisdesirable toissue certain directives ontheposition tobe
adopted bytheCommunity intheOECD with regard totheframing ofa
special agreement onground stations fortelecommunication satellites ;
HAS D3CIDED ASFOLLOWS :
Sole Article
When aspecial agreement isframed intheOECD cnground stations for
telecommunications satellites ,the Commission shall express the
Community 1sposition inaccordance with thedirectives annexed .
Itshall act inconsultation with the Special Committee referred toin
Article 113oftheTreaty ,which shall assist itinitstask .
Done atBrussels ,
For the Council
The President

Mtra
TheCommission shall endeavour toachieve ,intheOECD ,anagreement "based
onthefollowing principles s
I. SC0P3
Theagreement shall concern alltransactions which receive official
support inwhole orinpart andwhich relate tocontracts forthe
sale ofground stations fortelecommunications satellites .
II. TERM OPCREDIT
1.Themaximum credit term shall notexceed eight years .
2.The credit shall run from the date when the seller has tohave
1constructed orcompleted theerection ofthe installations .
III .OTH^R CONDITIONS
1.Theamount oftheinstalments isfixed ataminimum of10>,
payable "before thefinal remittance (atleast 5/jbeing payable
atthedate ofsigning ofthecontract ).
2.Payments oncredit shall beintheform ofregular equal half-
yearly or,inexceptional cases ,yearly payments .
•••/•••
i.e. thedate when thesupplier has completed theconstruction ofthe
station andthepreliminary inspection tomake sure that thestation is
ready foroperation (whether ornotithasbeen handed over tothe
purchaser atthat stage ,under theterms ofthecontract ,andirrespectively
ofanycommitment which maybeoutstanding whereby thesupplier guarantees
theactual functioning ofthestation orthetraining oflocal staff ).

-2-
IV. IMPLIMSNTIîTG RULES AND PROCJIDURjîS
Thestandard agreement envisaged intheO^CD ,which would be
applicable toall special agreements ,would laydown detailed rules
andprocedures . '
Ifthestandard agreement came into force subsequently tothespe­
cial agreement asproposed here ,provisional rules andprocedures
would have tobeadopted forthelatter agreement until the
standard agreement came into force .