COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(94) 538 final 
Brussels, 21.12.1994 
COMMUNICATION FROM THE COMMISSION 
on the mid-term review of 
the Association of the overseas countries and territories with 
the European Community 

TABLE OF CONTENTS 
EXPLANATORY MEMORANDUM 7 
I GENERAL DESCRIPTION OF THE OCT 7 
II OVERVIEW OF THE PROVISIONS OF THE ASSOCIATION 
DECISION 8 
A. Partnership 9 
B Establishment and services 9 
C. Centre for the Development of Industry 9 
D. Trade arrangements 10 
III. PRINCIPLES UNDERLYING THE MID-TERM REVIEW 10 
A. EDF five-year package 11 
B. Memorandums from the Member States 11 
C. The Commission's experience 12 
COMMISSION PROPOSALS 14 
I. PARTNERSHIP 14 
II. COOPERATION STRATEGY, GREATER CONSISTENCY AND 
INCREASED EFFECTIVENESS 15 
A. Promotion of local initiatives and decentralized cooperation .... 15 
B. More intensive dialogue and an enhanced Community cooperation 
strategy 16 
1. Programming Community aid 16 
2. Economic development aid 17 
C. Greater consistency and increased effectiveness of implementation 
instruments and procedures 18 
1. Stabex 18 
2. Rehabilitation 19 
3. Procedures 19 
4. Supply contracts 20 
III. HEALTH AND DRUGS 20 
A. The situation at present 20 
B. Proposed amendment 21 
IV. ENVIRONMENT 21 
V. TRADE ARRANGEMENTS 21 
A. General arrangements 21 
1. Overview of the current provisions 21 
2. Effects in practice 22 
3. Proposed amendment 22 
B. Rum 23 
C. Technical amendment to the cumulation rules 23 
Ifli'l/Q/s 
VI. EXTREMELY REMOTE REGIONS OF THE EUROPEAN UNION ... 23 
A. Situation at present 24 
B. Proposed amendment 24 
VII ACCESS OF OCT CITIZENS TO CERTAIN COMMUNITY 
PROGRAMMES 
A. Situation at present 
B. Proposed amendment 
VIII. 
B. ESTABLISHMENT AND SERVICES 
A. Present arrangements 
Requests received and proposed amendments 
1. Banks, insurance companies and investment funds 
2. Professional qualifications 
3. Maritime cabotage 25 
25 
25 
27 
27 
27 
27 
28 
29 
ANNEX I: GENERAL SITUATION OF THE OCT 1 
I. Socio-economic features 1 
II. Statistics: a word of warning 2 
III. Status of the OCT with regard to the Member States concerned ... 3 
IV. Repercussions for Community legislation 8 
ANNEX 2: COMMISSION/MEMBER STATE/OCT PARTNERSHIP 11 
ANNEX 3: CENTRE FOR THE DEVELOPMENT OF INDUSTRY 13 
ANNEX 4: HEALTH AND NUTRITION 16 
ANNEX 5: TRADE ARRANGEMENTS 18 
ANNEX 6: PROVISIONS RELATING TO ESTABLISHMENT AND SERVICEgl 
Mid-term review 
of Council Decision 91/482/EEC of 25 July 1991 
on the association of the OCT with the EEC 
EXPLANATORY MEMORANDUM 
On 25 July 1991 the Council adopted Decision 91/482/EEC on the association of the 
overseas countries and territories (OCT) with the European Economic Community.1 
Like the fourth Lomé Convention with the ACP States, the Decision was adopted for a 
period of ten years, starting on 1 March 1990, with provision for a review before 
I March 1995. This review is the subject of this communication. 
The Commission's proposals for amendments are set out in Part II, while Part I, the 
explanatory memorandum, contains: 
a brief description o\ the OCT in terms of their social and economic situations 
and their status vis-à-vis the Member State concerned and Community law; 
an overview of the provisions of the Association Decision; 
a statement of the principles underlying the mid-term review. 
I GENERAL DESCRIPTION OF THE OCT 
There are 20 OCT (see Annex 1, Tables A to D), of which: 
11 are linked to the United Kingdom (Table A) 
6 are linked to France (Table B) 
2 are linked to the Netherlands (Table C) 
I is an autonomous region of Denmark (Table D) 
A. The social and economic characteristics of the OCT vary enormously, as regards 
not only culture and language but also geographical location, surface area, size 
of population and degree of development (see Annex 1 to Part I). 
Note that statistics concerning the OCT (Annex 1 to Part II) should be treated 
with extreme caution. 
B. As to their status, the common feature is the existence of a constitutional link 
with an individual Member State of the European Union. But the nature of the 
link varies from one Member State to another and sometimes differs even for 
OCT of the same Member State (Annex 1 to Part III). 
O.I L 263, 10.0.1001. pp I to 153. 
Analysis of these links throws light on the constitutional, legal or political 
reasoning behind some of the OCT authorities' requests this year for changes in 
the Association Decision in response to the completion of the single market or 
other aspects of European union. 
In terms of Community law, the status of the OCT is governed, pursuant to 
Article 227(3) of the Treaty, by the special arrangements provided for in 
Articles 131 to 136a of that Treaty. These arrangements are implemented by 
Council Decision 91/482/EEC, which is the sole legal framework for 
Community-OCT relations. 
The situation can be summed up as follows: 
the OCT are covered by the arrangements laid down in the Association 
Decision but not by the general provisions of the Treaty or legislation 
derived from those provisions; 
as individuals the inhabitants of the OCT are, however, natioanls of 
Member States of the European Union (with the exception of a few British 
OCT) and are thus citizens of the Union. Understandably, therefore, they 
are anxious that the Association Decision should mention the rights 
deriving from this citizenship, and this is one of the new elements to 
come up in this review of the Decision. 
II OVERVIEW OF THE PROVISIONS OF THE ASSOCIATION DECISION 
Apart from the general and final provisions, Decision 91/482/EEC falls into four 
parts: 
areas of cooperation; 
instruments of cooperation; 
provisions on establishment and services; 
the Commission/Member State/OCT partnership arrangements. 
These provisions can be summarized as extremely liberal trade arrangements (see 
below) combined with EDF and EIB financing on similar terms to that accorded 
to the ACP States. But a number provisions in force over the past four years, 
including those pertaining to establishment and services, break with the traditional 
parallelism between the Association Decision and the Lomé Convention because 
of the fact that the OCT are linked to Member States. 
The Decision that was adopted at the end of July 1991 after lengthy debate within 
the Council was based on a Commission proposal of 19 September 1990.2 
The new features introduced as a result of Lomé IV were: 
COM(OO) 387, 2 August 1090. 
extension of the duration from five to ten years (with the exception of the 
financial provisions, which remained at five); 
improved terms of financing (all projects financed with grants); 
the start-up of decentralized cooperation involving local communities; 
greater stress on the environment, the role of women, the promotion of 
business and services, and improvements to the working of Stabex and 
Sysmin; 
insistence on regional cooperation between ACP States and OCT within 
the same geographical area. 
In addition, some innovations were introduced because of the special status of the 
OCT, breaking with the traditional parallelism between the OCT and the ACP 
States. Some of these innovations were proposed by the Commission and others 
were added at the insistence of certain Member States within the Council. 
A. Partnership 
Commission/Member State/OCT partnership arrangements were set up 
(Articles 234 to 236 of the Decision). 
In proposing these arrangements the Commission made good the clear lack of 
provision for democratic dialogue in the previous six Association Decisions 
governing relations since 1957. Giving locally elected representatives a say was 
a move towards democracy and dialogue that greatly pleased the OCT local 
authorities. 
Thus in 1992, for the first time, the EDF indicative programme of each country 
or territory was signed by a local representative as well as the Member State and 
Commission representatives. There have also been a great many tripartite 
meetings on various aspects of implementation of the Association arrangements. 
B Establishment and services 
The arrangements for establishment and the provision of services in the OCT by 
nationals, companies and enterprises of Member States (Articles 232 and 233) 
was amended to promote or maintain local employment. Since 1991 OCT local 
authorities have been able, with the Commission's agreement, to take measures 
in respect of establishment and services in sensitive sectors of their economies to 
protect local inhabitants and undertakings. 
C. Centre tor the Development of Industry 
For their industrial development, the OCT may, as before, call on the services 
of the Centre for the Development of Industry (CDI), which was set up under the 
Lomé Convention, and (an innovation introduced in 1991) the Euro-Info Centres, 
which were set up as part of the Community's policy to develop businesses 
(Article 48). Here* again, the choice of these two possibilities places the OCT 
somewhere between the ACP States and regions of the Community. 
The Council laid down that recourse to these bodies would entail a financial 
contribution from the EDF resources allotted to the country or territory's 
indicative programme. 
D. Trade arrangements 
Here there have been a good many innovations, in relation to both past decisions 
and to other association agreements or conventions: Decision 91/482/EEC gives 
free access (i.e. no customs duties, levies or quotas) for all OCT originating 
products (Article 101). Before this provision, OCT agricultural products enjoyed 
the same preferences as ACP products. 
This completely new departure took the form of much larger concessions than the 
Community had ever accorded before in its many agreements with non-member 
countries. 
The concessions included: 
the lifting, without quantitative limits (except for rum), of import duties 
previously levied on the OCT and still applying to the ACP States 
(abandonment of parallel treatment for the OCT and ACP countries); 
changes in the rules of origin introduced under Lomé IV, and also specific 
amendments to the OCT rules of origin; 
introduction of a transhipment system giving free access to goods from 
third countries transiting through a country or territory in the unaltered 
state (not applicable to certain circumstances or to CAP products) as long 
as customs duties or levies at least equivalent to the Community's 
protection are levied on entry into the country or territory. A new 
certificate to accompany such goods has been created. 
III. PRINCIPLES UNDERLYING THE MID-TERM REVIEW 
Under Article 240(3) of the Association Decision, 1 March 1995 is the deadline 
for three objectives: ' 
Article 240(3); "Before the end of the first five years, the Council, acting 
unanimously on a proposal from the Commission, shall, in addition to the 
financial assistance referred to in Article 154(1), establish: 
(a) where necessary, any amendments to provisions following notification to 
the Commission by the relevant authorities of the OCT not later than 10 
months before expiry of this five-year period; 
(b) where necessary, any amendments proposed by the Commission in the 
light of its own experience or as a result of amendments under negotiation 
between the Community and the ACP States," 
10 
(i) decision on the amount of the eighth EDF package for the period 1 March 
1995 to 29 February 2000; 
(ii) changes resulting from the requests of the relevant OCT authorities; 
(iii) changes resulting from the proposals of the Commission itself. 
A. EDF five-year package 
The amount available to the OCT under the EDF is negotiated at the same time 
as that for the ACP States. It would therefore be premature to broach this issue 
now since the EDF is traditionally one of the last items negotiated with the ACP 
Group and any decision is thus some months off. The Council itself remarked 
in the negotiating directives for the mid-term review of Lomé IV dated 
7 February 1994 that "it is not, at this stage, possible to decide on the financial 
allocation for the eighth EDF."4 
B. Memorandums from the Member States 
By 1 May 1994 (ten months before the 1 March deadline), the Commission had 
received the opinions and requests of the relevant OCT authorities via the three 
Member States concerned.5 
There followed meetings to explain the issues, sometimes at high level within the 
framework of the Commission/Member State/OCT partnership arrangements and 
in the presence of local elected representatives. 
What emerged from these memorandums and discussions was that it would be 
useful to clarify some of the rules in force and make a few additions when 
revising the text. The additions are called for by the very nature of relations 
between the OCT and the European Union, namely that: 
Council document 4750/94 ACP 18/FIN40 of 9 February 1994, p.20. 
France: memo to the European Commission of 5 May 1994 (letter of 2 May from 
His Excellency P. de Boissieu, Permanent Representative, to Mr Marin). 
Netherlands 
Memorandum from the Prime Minister of the Netherlands Antilles of 29 April 
1994 (letter from Dr R.S.J. Martha, Minister Plenipotentiary for the Netherlands 
Antilles, to the Dutch Permanent Representation, 2 May 1994). 
Memorandum from Aruba on Article 240(3) of the Association Decision (letter 
from Dr R.S.J. Martha of 16 June 1994). 
Letter of 27 July 1994 from Mr Lubbers, the Dutch Foreign Minister, to Mr 
Delors (letter of 11 August from His Excellency BR. Bot, Permanent 
Representative). 
United Kingdom: UK proposed amendments, under letter of 30 April 1994 from 
Baroness Chalker of Wallasey, UK Minister of Overseas Development, to Mr 
Marin. 
the OCT are not part of the single market and secondary legislation does 
not apply directly to them; 
the OCT are linked to. or are sometimes an integral part of. Member 
States of the Union: in many cases the constitution of the Member State 
concerned means that their citizens are also European citizens. 
But, as is explained in greater detail in Annex 1, citizenship of the Union confers 
on them rights and obligations that are not taken into account in the current 
association provisions. Of course, some of these issues were raised in the past, 
and this is why certain parts of Decision 91/482/EEC no longer mirror the Lomé 
Convention and why Annex VIII was added to the Decision (Declaration by the 
Government of the Kingdom of the Netherlands), which annex has been referred 
to in correspondence concerning the review. 
Since 1991 we have had the signing and ratification of the Treaty on European 
Union, following which Article 8 of the EC Treaty lays down: "Every person 
holding the nationality of a Member State shall be a citizen of the Union." In 
view of this provision, representatives of the OCT concerned (all except some 
UK OCT, see Annex 1) wanted fuller and more detailed provisions in the 
Decision on the application to their citizens of some Community policies affecting 
individuals. 
This is behind the general tendency in the requests to ask for aknowledgement 
that the (XT's status is closer to the Union than that of other non-member 
countries. Hence the two new themes broached in this communication: 
giving OCT citizens access to certain Community programmes aimed at 
individual citizens of the Union; 
more detailed, liberal and reciprocal arrangements for the OCT in respect 
of Community law regarding establishment and the provision of services 
in certain sectors: diplomas, banks, insurance, investment funds. 
C. The Commission's experience 
Drawing on its own experience as manager of the EDF, the Commission has also 
proposed amendments to the Decision. 
In this context, its experience of financial cooperation with the OCT is 
comparable to that of the ACP States: the proposals it formulated in September 
1993, "Proposal for a Decision of the Council and of Representatives o\' the 
Governments of the Member States meeting within the Council authorizing the 
Commission to open negotiations with the ACP States party to the fourth ACP-
EEC Convention for the review of certain provisions of the Convention", and the 
conclusions it drew there, are generally equally valid for the OCT.6 So, in the 
interests of greater consistency and effectiveness, the changes proposed for 
relations with the ACP States in the Council directives of 7 February 1994 should 
also be fully implemented for the OCT. 
SEC(93) 1167 final of 21 September 1993. 
12 
However, the proposals concerning dialogue with the ACP States and structural 
adjustment are neither politically nor legally called for in the case of the OCT, 
since they have links to Member States. For the same reasons,these elements of 
Lomé IV did not figure in Decision 91/482/EEC. 
13 
COMMISSION PROPOSALS 
This communication puts forward ideas rather than formal proposals for legal provisions: 
pending the conclusion of the Lomé IV mid-term reviewnegotiations in areas where 
reference will have to be made to the ACP provisions. 
For areas that are not linked to the negotiations with the ACP Group, draft articles 
giving a clearer idea of what is proposed have been annexed. 
The Commission has followed the same approach it used in its proposal to the Council 
on the Lomé IV review, namely a division of each subject area into two parts: (i) the 
experience or reasons behind the proposals; (ii) the proposed amendments. 
At a later date further drafting will be needed to send a formal Commission proposal to 
the Council. After I March 1995 this proposal could be attached to the proposals for 
the allocation of eighth EDF resources to the OCT (see III. A above). 
I. PARTNERSHIP 
A. Present situation 
The Commission/Member State/OCT partnership was, as explained in the 
explanatory memorandum, proposed by the Commission and established by 
Decision 91/482/EEC (Articles 234 to 236). 
Local- and regional-level meetings have been held on the spot and at Commission 
headquarters, and OCT representatives have been highly appreciative of the 
system. 
A number of memorandums have been received praising the partnership 
arrangements and calling for their strengthening. Such a strengthening would 
mirror institutional relations with other partners, including the many joint ACP-
EC bodies, the partnership arrangements set up with Community regions 
following the reform of the Structural Funds in 1989 and the specific schemes for 
the extremely remote areas (the French departments, the Canaries, the Azores 
and Madeira), known as POSEIDOM,7 POSEICAN AND POSEIMA. 
B. Proposed amendment 
References in Articles 234 to 236 to the optional nature of the partnership should 
be deleted (see Annex 2). 
Council Decision 8()/687/EEC of 22 December 1()89 establishing a programme of 
options specific to the remote and insular nature of the French overseas 
departments, OJ L 399, 3012.1989, p. 39. 
14 
H. COOPERATION STRATEGY, GREATER CONSISTENCY AND 
INCREASED EFFECTIVENESS 
As noted in the explanatory memorandum, in the Commission's experience 
implementation of the EDF is similar for the ACP countries and the OCT. 
Naturallv. there are a number of things in the Commission's communication of 
September 1993 on directives for the negotiations with the ACP countries (incorporated 
into the Council negotiating directives of 7 February 1994) that do not apply to the OCT, 
both for institutional reasons (the OCT are linked to Member States) and the nature of 
their circumstances (human rights, democratic principles and the rule of law are adhered 
to). It is therefore proposed not to apply to the OCT Part A of the Council directives, 
apart from decentralized cooperation. 
It is proposed to apply, mutatis mutandis, everything in the directives designed to 
further: 
greater dialogue and an enhanced Community cooperation strategy (Part B); 
greater consistency and increased effectiveness of instruments and procedures 
(Part C): the structural adjustment proposals are not applicable to the OCT. 
A. Promotion of local initiatives and decentralized cooperation 
1. The Commission notes that the implementation of decentralized 
cooperation has not given the results hoped for and believes that 
amendments are needed to the decision-making procedures, which, as they 
stand, do not allow the instrument to be developed as it should be. 
Experience shows the need for more streamlined procedures that balance 
the OCT authorities' participation in the various decision-making stages 
with a greater scope for initiative by the final beneficiaries of such 
operations and more direct access to financing. 
2. To ensure greater coherence of décentraiized-cooperation and NIP 
operations, the country or territory will specify the amount it intends 
allocating to decentralized-cooperation operations, the principles and terms 
governing the release of funds and the categories of possible beneficiaries 
when the indicative programme is drawn up. 
Applications for financing may be sent directly to the Commission as soon 
as a financing agreement setting out the framework for 
decentralized-cooperation operations is signed by the country or territory, 
the Member State and the Commission. The Commission will appraise 
them on the basis of criteria agreed jointly with the relevant OCT 
authorities and. having checked compliance with these criteria and the 
project's viability, will notify the Local Authorizing Officer of the 
conclusions of the appraisal. Unless there is opposition from the LAO 
within a specified period, the Commission will then proceed to finance 
and manage the operation. 
15 
These arrangements will be set out in Article 9 of the Association 
Decision. 
To enable agents of decentralized cooperation to have direct access to 
financing procedures, such agents will have to be made eligible under 
Article 285 and thus included in the list of possible recipients in 
Article 191. 
In addition, enterprises should be deleted from the list of possible 
beneficiaries of decentralized-cooperation operations in Article 7 since 
there will be specific provisions for market enterprises. 
B. More intensive dialogue and an enhanced Community cooperation strategy 
/. Prosramminz Community aid 
The Commission proposes that the Community reaffirm the great 
importance it attaches to programming as an means of dialogue on policies 
but at the same time draw the attention of the OCT authorities to the 
inflexibility of the present system, which means that funds allocated to 
them sometimes lie idle. 
It proposes the following changes to the system. 
(a) Prior to drawing up the indicative programme, the Commission 
and the Member State would give the country or territory an 
indication of the total financing it could draw on during the second 
period covered by the Association Decision. This provisional 
amount would be regarded by the two parties as a target figure. 
There would not, however, be any legal obligation to disburse the 
funds automatically. It would merely give the OCT authorities a 
predictable basis on which to plan their development. 
(b) On conclusion of the indicative programme, the Commission and 
the Member State concerned would notify the country or territory 
of the funds available to it for implementing the first tranche of 
the indicative programme, which would be substantial and, in any 
event, enough to implement the indicative programme over a 
three-year period on the basis of the timetable of commitments 
provided for in Article I88(2)(c). 
(c) The second tranche of the indicative programme would be 
allocated when the programme is reviewed three years after its 
signing in the partnership framework provided for in 
Articles 235(1). After dialogue within this framework the amount 
of the second tranche would be decided taking into account the 
five-year target figure and the nature of the projects and 
programmes .to be financed. Account would also be taken of the 
specific circumstances of each country and territory and any 
domestic factors affecting execution of its indicative programme. 
The procedures for awarding the second tranche will be laid down 
in the Internal Agreement. 
Articles 187, 188 and 190 of the Association Decision will have 
to be amended accordingly. 
(d) Furthermore, in view of the widely differing take-up of the EDF 
regional resources allocated to each of the three groups of OCT 
(British, French and Dutch), the same system of tranches could be 
used here. 
Economic development aid 
The Commission proposes that the Community emphasize the importance 
of promoting the private sector, which should have a greater role in the 
OCT's development. 
(a) Centre for the Development of Industry (CDI) 
Under the two Association Decisions covering the last ten years* 
the OCT have been able to call on the services of the CDI, 
financing the cost of its work from their EDF indicative 
programme resources. 
Indeed, the economies of many OCT call for the use of such an 
instrument: 
some OCT devote a large proportion of their indicative 
programme to trade, services or enterprise development 
(for instance, the Netherlands Antilles' Business 
Development Scheme financed under the sixth and seventh 
EDFs and the training of apprentices and entrepreneurs in 
New Caledonia); 
a number of the CDF s regional operations for the ACP 
countries embraced OCT. 
The legislative framework is as follows: 
the CDI is a joint ACP-EC institution and its operational 
and administrative financing comes from the EDF; 
Council Decision 86/283/EEC of 30 June 1986, Article 29 (OJ L 175, 1.7 1986). 
Council Decision 91/482/EEC of 25 July 1991, Article 48 (OJ L 263, 19.9.1991). 
17 
since the OCT may not use ACP funds, the Council made 
explicit provision that any expenses incurred by the CDI 
when used by the OCT would be financed from the 
resources allocated for whichever of the three groups the 
OCT in question belong to. 
But no application has ever been received. The reason may be the 
local authorities' lack of information on the subject or the fact that 
the limited amount available under the indicative programmes is 
fully spent on other activities. 
Therefore, to ensure that potential beneficiaries are fully aware of 
the possibilities, the relevant provisions should spell out the 
objectives of the CDI and what it does (at present the Decision 
merely refers to the relevant articles of Lomé IV). 
Thus, Article 48 of the Decision should be amended, and others 
amplifying it added, on the lines of Articles 87 to 95 of Lomé IV 
(see Article 48 et seq. in Annex 3). 
(b) EIB operations 
It is proposed that the Community introduce greater flexibility in 
the terms and conditions of risk-capital operations (by abolishing 
the mandatory interest-rate ceiling for quasi-capital operations 
directly concerning the private sector) and in the granting of 
automatic, flat-rate interest-rate subsidies for loans from the 
Bank's own resources. 
C. Greater consistency and increased effectiveness of implementation 
instruments and procedures 
/. Stabex 
(a) Reduction of the transfer basis following "significant changes" (Article 
129 of the Association Decision). 
It is proposed to: 
make provision for a reduction in the transfer in all cases of a 
significant change in marketed or exported production in the 
application year by comparison with the reference period (unless 
there is a satisfactory explanation for this change) and to drop the 
reference to "demand in the Community" in Article 129; 
exempt the least-developed OCT from such reductions if the 
transfer basis is less than ECU 1 million. 
(b) The implementation of the frameworks of mutual obligations (FMOs) in 
relation to the use of transfers (Article 135 of the Association Decision) 
The sums paid into blocked accounts would be returned to the system 
wherever: 
a country or territory did not submit a draft FMO to the 
Commission within 12 months of the transfer decision; 
a significant proportion of the FMO had not been implemented 
within 12 months of the expiry of the period laid down in the 
disbursement timetable set out in the FMO. 
2. Rehabilitation 
It is proposed that recourse to the procedures provided for in Article 206 
(post-emergency assistance contracts) be extended to the rehabilitation 
operations referred to in Article 167 of the Association Decision. 
A request by the relevant OCT authorities for recourse to Article 206 
procedures would be submitted to the competent authorities for 
authorization. 
Article 206 of the Decision would be amended accordingly. 
3. Procedures 
The following amendments are proposed: 
(a) With regard to the preparation, appraisal and evaluation of projects and 
programmes, the relevant OCT authorities will continue to establish, in 
liaison with the Commission, the terms of reference of studies for the 
implementation of cooperation under the Association Decision. The 
Commission will be responsible for proposing, on that basis, who should 
be awarded the contract for the study and, having obtained the agreement 
of the relevant OCT authorities, for drawing up and administering the 
study contract. The relevant OCT authorities will then approve the 
study's findings or ask for them to be amended. 
To this end, the Community will amend as necessary Articles 145(2)(c) 
and I45(3)(c) (attribution of responsibilities), Articles 192 and 193 (role 
of the relevant OCT authorities and of the Commission), Articles 217 and 
219 (roles of the chief authorizing officer and of the local authorizing 
officer) and Article 226 (application of these procedures to evaluation). 
(b) With regard to the management and execution of projects/programmes, 
the relevant OCT authorities will be given the opportunity to set up a 
technical management unit where such a unit appears necessary, taking 
into account the specific nature and size of the project or programme. 
The request would be made by the Commission to the local authorizing 
officer. The unit will be headed by a local government official appointed 
by the local authorizing officer, who will officially delegate to him the 
management powers provided for in Article 219(2). 
19 
Should the management unit require back-up, the Commission will 
provide appropriate technical assistance personnel. 
Articles 217 (chief authorizing officer) and 219 (local authorizing officer) 
will have to be amended accordingly. 
(c) To enable the direct implementation of the above measures, the 
Community will ask that a specific amount be reserved for that purpose 
within each indicative programme. The amount, which will be 
administered in accordance with the rules laid down in the articles 
referred to in paragraphs (a) and (b), will be established by reference to 
requirements estimated on the basis of the indicative programme and 
notified to the relevant authorities of the country or territory at the same 
time as the financial allocations for the implementation of the first and 
second tranches of the indicative programme. 
Article 187 (programming) will have to be amended accordingly. 
4. Supply contracts 
To plug a loophole in Decision 91/482/EEC, the rules on the origin of 
supplies eligible for EDF contracts should be spelled out in the same way 
as those for the ACT States. It is therefore proposed to add to 
Article 200(b) "in accordance with Council Regulation (EEC) 
No 2913/92 of 12 October 1992 establishing the Community customs 
code".4 
III. HEALTH AND DRUGS 
A. The situation at present 
In recent years the fight against drug trafficking at regional and inter-regional 
level has assumed growing importance. 
This is why the Community decided to aid the OCT in their efforts by mentioning 
this objective in the context of regional policy (Article 93(j) of the Association 
Decision, which is identical to Article 159(k) of Lomé IV). 
It is not, however, backed up by a listing of operations in the health sector 
eligible for support on the lines of Article 154 of Lomé IV; Title XI "Cultural 
and social cooperation" merely cites this sector among others (Article 88). In 
view of the scale of the problem, it would be useful to specify what kind of 
operations will be aided. 
OJ L 302, 19.10.1992, p. I. 
20 
B. Proposed amendment 
A "health and nutrition" article on the lines of Article 154 of Lomé IV should be 
added (see Article 88a in Annex 4). 
IV. ENVIRONMENT 
At present the Decision's only provisions on the matter concern the export of 
hazardous waste from the Community to the OCT, prohibiting such exports but 
allowing a Member State to re-export waste to a country or territory after having 
imported it from that same country or territory, the same arrangements as applied 
to the ACP States under the Lomé Convention. 
But the Community's import arrangements are not spelled out and the application 
mutatis mutandis to OCT waste of the "internal" rules adopted in 1993 is ruled 
out by the fact that the Council did not adopt them on the basis of Article 136 of 
the Treaty (Association Decision). This lacuna in Community legislation should 
be plugged by making Regulation (EEC) No 259/93 applicable to this trade (see 
Article 16(2a) in Annex 4. 
V. TRADE ARRANGEMENTS 
A. General arrangements 
/. Overview of the current provisions 
By Decision 91/482/EEC the Council accorded much larger concessions 
than the Community had ever accorded before in its many agreements 
with non-member countries. They included: 
free access (without customs duties, levies or quotas) to all 
products originating in the OCT; 
special flexible provisions on the rules of origin; 
introduction of a transhipment system. 
Nevertheless, the Council retained the principle of cumulation of ACP and 
OCT products, which means that ACP products can acquire OCT origin 
following even a simple form of working in a country or territory. It is 
worth noting that this is the first and only example of a cumulation rule 
applying to two different sets of preferential arrangements. 
Aware of the novelty of this situation, the Council asked the Commission 
to report back to it on the implementation of the trade machinery before 
the end of 1993 so that it could be reviewed if necessary (Article 240(2)). 
21 
2. Effects in practice 
These concessions, combined with the maintenance of the cumulation rule, 
caused disruption of the Community's agriculture sector in 1992-93; the 
Commission was therefore forced to adopt safeguard measures in 1993, 
then to soften and finally repeal them.10 
In November 1993 the Commission reported to the Council and proposed 
an amendment of Article 101 of Decision 91/482/EEC." This proposal, 
which has to be approved unanimously (Article 136 of the Treaty), has 
not yet won consensus among the Member States. 
As the Decision is now undergoing a mid-term review, it is worth 
recalling the two main concerns set out in the conclusions of the report 
which prompted the Commission's proposal for an amendment (see 
point 55 of the report), namely: 
"- that the trade arrangements adopted in mid-1991 should be retained to 
enable what are still new mechanisms to continue operating and thus 
further the development aims of the association between the OCT and the 
Community; 
- that there is a fundamental clash between two Community policies 
arising from the fact that free access is being given to products originating 
in the OCT which would, in the Community, be governed by market 
organizations." 
To deal with this clash between two Community policies - OCT 
development and maintenance of guarantees given to producers under the 
common market organizations - the Commission canvassed a number of 
approaches (see point 35): abolition of ACP-OCT cumulation, full levies 
across the board, a reduced levy, and the creation of machinery enabling 
the Commission to set reference prices for imports with the aim of 
avoiding safeguard measures. This last solution was its preferred option. 
3. Proposed amendment 
The Commission is still intent on finding an option "compatible both with 
the aims of the CAP (by ensuring price stability on the market) ad with 
the aims of development policy (by providing OCT exporters with stable, 
predictable and advantageous market-access conditions)" (point 35). 
.This is why it stands behind the proposal put forward in November 1993 
,.'/.%;(see amended Article 101 in Annex 5). 
i.'.Vi,''".-' ' 
Decision 93/127/EEC, 0.1 L 50, 2.3.1993, p 27 
Decision 93/21 l/EEC, O.I L 90, 14.4.1993, p. 36. 
Decision 93/356/EEC, OJ L 147, 18.6.1993, p. 28. 
COM (93) 555 final of 25 November 1993. 
il 
Since the Commission formulated its proposal it has gradually become 
apparent that initiatives are afoot to process in the OCT other ACP 
products that are very sensitive from the Community's point of view (e.g. 
sugar and beef and veal). In view of this, the Commission is reserving 
the right to supplement the proposed machinery by a suitable amendments, 
where necessary, to the OCT rules of origin in respect of ACP-OCT 
cumulation and the minimal working required to obtain OCT origin. 
B. Rum 
Annex V to Decision 91/482/EEC on rum lays down the quantities of rum 
originating in the OCT which may be imported exempt from customs 
duties in the period up to 31 December 1995. 
Article 2(b) of this Annex provides that "for the arrangements applicable 
from 1996, the Council, acting by a qualified majority on a proposal by 
the Commission, shall establish, before 1 February 1995, on the basis of 
a report that the Commission will send to the Council before 1 February 
1994, the arrangements for the projected abolition of the Community tariff 
quota, taking into account the situation and prospects on the Community 
rum market and of the exports of the OCT and ACP States." 
The Commission has recently sent this report to the Council, proposing 
in conclusion that the quota be duly abolished on 1 January 1996, without 
prejudice to the Community's right to review the arrangements during the 
second half of the period covered by Decision 91/482/EEC should imports 
of OCT rum increase to the extent that they adversely affect Community 
production, particularly of traditional rum. 
The mid-term review offers an opportunity to amend Annex V to the 
Decision on these lines (see Annex 5). 
C. Technical amendment to the cumulation rules 
Taking advantage of the mid-term review, the Commission proposes, 
without touching the principle of ACP-OCT cumulation, to clarify the 
rules by amending Article 6 of Annex II to the Association Decision (see 
Annex 5). 
VI. EXTREMELY REMOTE REGIONS OF THE EUROPEAN UNION 
A. Situation at present 
In both the Association Decision and the fourth Lomé Convention the Community 
emphasizes the need for greater regional cooperation. 
23 
The same policy is enshrined in the provisions concerning the French overseas 
departments since the adoption of Council Decision 89/687/EEC of 22 December 
of 1989 establishing the POSEIDOM.12 
Since this recognition of the specific characteristics of the overseas departments 
within the Union, the Council has offered similar options to the Canary Islands, 
the Azores and Madeira, all far-flung island regions now given the label of 
"extremely remote areas". June 1991 saw the adoption of Decision 91/314/EEC 
establishing a programme of options specific to the remote and insular nature of 
the Canary Islands (POSEICAN),13 Regulation (EEC) No 1911/91 on the 
application of Community law to the Canary Islands,14 and Decision 91/315/EEC 
establishing a programme of options specific to the remote and insular nature of 
Madeira and the Azores (POSEIMA)15. 
Like the fourth Lomé Convention, (Article 156(4)), the Association Decision 
(Article 90(4)) lays down that "regional cooperation shall transcend the concepts 
of geographical location"; such thematic rather than geographically restricted 
regional cooperation can perfectly well apply to cooperation between the OCT, 
the DOM, the Canary Islands, the Azores and Madeira. 
B. Proposed amendment 
It is proposed that: 
the Canary Islands, the Azores and Madeira be mentioned alongside the 
DOM in Articles 
90(4), second subparagraph (regional cooperation); 
* 91(1), third indent (participants in regional cooperation); 
92(l)(d), economic diversification; 
92(1 )(h), expansion of markets; 
Annex II to the Decision concerning the rules of origin be amended to 
include the Canary Islands in the Community customs territory (see 
Annex 5, trade arrangements). 
OJ L 399, 30.12.1989, p. 39. 
OJ L 171, 29.6.1991, p. 5. 
OJ L 171, 29.6.1991, p. 1 (amended by Regulation (EEC) No 284/92, OJ L 314, 
7.2.1992, p. 6). 
OJ L 171, 29.6.1991, p. 10. 
24 
VIL ACCESS OF OCT CITIZENS TO CERTAIN COMMUNITY 
PROGRAMMES 
A. Situation at present 
It is quite clear (see Annex 1 "Impact on Community law") that secondary 
legislation does not apply to the OCT unless there is a specific reference to it in 
Council legislation adopted pursuant to Part IV of the EC Treaty (Association 
Decision). 
On the other hand, OCT citizens have the nationality of the Member State to 
which they are linked (though this must be qualified in the case of the British 
OCT, apart from the Falkland Islands) and, during the consultations held by the 
Commission, elected representatives of the OCT expressed astonishment at the 
lack of any reference in the Decision to the consequences of this fact. 
In the light of Article 8 of the amended EC Treaty in particular, it is odd that 
there is no reference in the Decision to a number of Community programmes 
aimed at individuals, which cover all Community citizens in principle. 
The most obvious example is that of access to the ERASMUS programme:16 
should not a student with the nationality of a Member State - France or the 
Netherlands, for example - have the right, having embarked on a course of study 
in Papeete or Curaçao, to apply for an ERASMUS placement in the United 
Kingdom or Germany? 
In the affirmative, legal provision for this possibility should be made in the 
Association Decision. 
B. Proposed amendment 
In response to this problem, Commission officials made an exhaustive list of 
Community programmes that together constitute a raft of measures to promote 
human, technical and economic development though the European Union and 
enhance the mobility and communications of its citizens. 
Some 80 programmes are running currently. Of these: 
programmes financed under the structural funds (the ERDF, the ES F and 
the EAGGF) can be excluded since by definition they do not apply to the 
OCT (which have their equivalent in the EDF); 
also excluded are programmes that have EDF equivalents in various areas 
of cooperation: this applies to many programmes in the fields of energy 
(ALTENER, SAVE and THERMIE) and the environment (LIFE). 
Even though there is now the wider framework of SOCRATES (see Annex 6). 
25 
Programmes which, it is proposed, should be applicable to OCT citizens enjoying 
the full nationality of a Member State are those that apply to: 
Community citizens as individuals (i.e. ERASMUS); 
small and medium-sized enterprises (SME) and handicraft businesses. 
Note that some SME programmes already cover SME in some non-
member countries (EFTA and Central and Eastern Europe) and SME in the 
OCT would fail to understand why they should not be covered as well. 
Community programmes meeting these criteria (SOCRATES, LEONARDO, LEI, 
LED A, POVERTY III, ERGO III, HELIOS II, BC-Net, Euromanagement, 
Europartenariat, Euroleaders, Interprise, Seed Capital, Venture Consort, COST, 
IMPACT 2, SPRINT, TIDE, KALEIDOSCOPE, MEDIA, FESTIVALS, HRTP 
and KAROLUS) are listed in Annex 7. 
It is also proposed that it be agreed that new programmes meeting these criteria 
also cover OCT citizens. 
This addition to the current provisions would obviously be a big political step -
justifiable and appreciated - towards recognizing the democratically-made choices 
of OCT citizens. 
Concretely, this would be done by inserting articles before the provisions 
applicable to establishment and the provision of services (Article 232) and adding 
annexes describing the programmes in question. 
The programmes fall into different categories: 
A. Education and training: SOCRATES and LEONARDO 
B. Employment and social affairs: LEIs (local employment initiatives), LEDA (Local 
Employment Development Action Programme), POVERTY III, ERGO II (the 
long-term unemployed), HELIOS II (Handicapped people in the European 
Community Living Independently in an Open Society). 
C. SMEs: BC-Net (Business Cooperation Network), Euromanagement, 
Europartenariat, Euroleaders, Interprise, Seed Capital, Venture Consort and 
measures specifically targeted at small businesses and handicraft businesses. 
D. Research/development/innovation: COST (scientific and technical research). 
IMPACT 2 (Information Market Policy Action), SPRINT (Strategic Programme 
for Innovation and Technology Transfers) and TIDE (Technology Initiative for 
Disabled and Elderly People). 
E. Culture and audiovisual media: KALEIDOSCOPE, MEDIA, FESTIVALS and 
FILMS. 
F. Japan: HRTP (Human Resources Training Programme in Japan), which is 
obviously potentially applicable to European citizens in the Pacific. 
26 
VIII. ESTABLISHMENT AND SERVICES 
As in the previous section, the issue here is to clarify the provisions laying down 
the conditions governing the right of establishment and the provision of services 
in relations between the Community and the OCT. 
A. Present arrangements 
The present arrangements derive from Article 132(5) of the EC Treaty, which 
lays down that this right is accorded on a non-discriminatory basis, in accordance 
with the provisions of the Treaty on the right of establishment, subject to any 
special provisions adopted pursuant to Article 136 (Association Decision). 
Decision 91/482/EEC covers only those cases where individuals, companies or 
firms of a Member State wish to establish themselves in a country or territory. 
It also affirms the principle of non-discrimination between Member States and 
provides for the possibility, with the Commission's authorization, of OCT aid for 
local inhabitants and activities in derogation from the rules normally applicable 
(Article 232(a)). 
Furthermore, the OCT authorities are not bound to accord non-discriminatory 
treatment "if a Member State is not bound under Community law, or else 
national law, to accord non-discriminatory treatment for a given activity to 
inhabitants of an OCT who are nationals of a Member State" (Article 232(b)). 
These rules are the upshot of successive rounds of amendments every five years 
and leave much room for uncertainty. 
B. Requests received and proposed amendments 
All the memorandums received pointed to the need for clarification, the main 
thing being to spell out that the fact that non-discriminatory treatment works both 
ways. Another point is to ensure that the OCT enjoy at least the same advantages 
as those accorded to third countries in the negotiations on the GATS (General 
Agreement on Trade in Services). 
It is proposed to add an article to the Association Decision which would extend 
to the OCT the Community's GATS offer in return for an undertaking on 
non-discrimination on their part (see Article 233a in Annex 6). 
In addition, the Netherlands Antilles has made specific requests regarding certain 
sectors. 
/. Banks, insurance companies and investment funds 
Requests have been made here for the extension of the Community arrangements 
to enable banks and insurance companies established in the OCT to establish 
themselves and provide services within the Community under the same conditions 
applied to Community institutions. 
27 
Extending the advantages of Community arrangements to the OCT without also 
applying the acquis communautaire to financial institutions established in the OCT 
cannot be contemplated. If such institutions were not obliged to comply with the 
same rules as Community establishments but could still profit from the 
considerable advantages of the single market (for example, the single licence) the 
proper functioning of the single market would be threatened by the presence of 
rules laying down different minimum standards, especially as regards 
establishment. This could create a serious distortion of competition. Furthermore, 
surveillance of the single market would be endangered, as would consumer 
protection. 
Checks could be made to see whether some OCT might be prepared to apply 
Community legislation on financial services or the whole of the acquis 
communautaire to financial institutions established on their territory which 
proposed to start operating in the Community; we would, however, point out that 
the single market constitutes a whole where there is a common approach in 
different areas and an intertwining of policies. For example, financial services are 
closely linked to company law and rules on the surveillance of the financial 
system. It would therefore be difficult to embark on "à la carte" arrangements 
that would open the door to partial participation in the single market by some 
OCT. Furthermore, the Community arrangements are largely based on mutual 
recognition of the surveillance carried out by the supervisory authorities in the 
Member State where the financial institution has its head office. Close 
cooperation between Member State authorities is needed to do this, and a climate 
of trust is created at the same time. We cannot be sure that the same standards 
will be adhered to by the authorities of each country and territory. 
/ Professional qualifications 
There is a request for recognition of professional qualifications acquired in the 
OCT or third countries on completion of a course of study satisfying the minimum 
Community requirements. 
(a) There is limited scope for acquiring professional qualifications in the 
OCT, some offering no possibilities at all. Nor, by and large, have there 
been major problems resulting from a refusal to recognize such 
qualifications. There does not seem to be any need, therefore, for specific 
measures on the matter at present. 
Nevertheless, it would be quite possible to do some preparatory work with 
a view to establishing a list of professional qualifications acquired in the 
OCT by OCT citizens that would be recognized in the Member States as 
long as they satisfy the training requirements laid down by the 
Community (see Article 233b in Annex 6). 
(b) Specific Community directives on a given profession do not apply to the 
recognition of qualifications acquired in a third country. The Member 
States may recognize these qualifications or not, and recognition by one 
Member State does not automatically entail recognition by the others. A 
derogation just for OCT citizens would upset the balance and very nature 
of the system and cannot be envisaged. 
28 
(c) As to professions for which the Community has not laid down minimum 
qualifications, this is an area where the Member States have kept the right 
to lay down requirements. The provisions on recognition of qualifications 
acquired in third countries in Directive 89/48/EEC call for a system of 
cooperation between the Member States that would be difficult to 
implement for the OCT. In these circumstances, no steps can be taken. 
3. Maritime cabotage 
The last request is for application to OCT vessels of Council Regulation (EEC) 
No 3577/92 of 7 December 1992 applying the principle of freedom to provide 
services to maritime transport within Member States (maritime cabotage).17 
The Commission sees obstacles to the application to the OCT of this Regulation, 
which was the subject of lengthy debate before adoption. The beneficiaries of the 
cabotage Regulation are "Community shipowners operating vessels registered in, 
and flying the flag of. a Member State" as long as they comply with all the 
conditions for carrying our cabotage in that Member State. This last condition 
(which is suspended until 1997) was included with the express intention of 
restricting the participation of vessels in certain Member States" second registers 
because these vessels have much lower operating costs that those on the registers 
of other Member States and could therefor distort competition in the European 
cabotage market. 
The cabotage rules thus remained outside the scope of the acquis extended to the 
EFTA countries under the agreement of the European Economic Area. On 
accession, these countries be will covered by the regulation but not vessels on 
Norway's second register. 
A legal appraisal of the Antilles' request took in ships registered in the Kerguelen 
Islands (France) and in the Netherlands Antilles (Netherlands) in relation to the 
various proposed Regulations on the subject (Euros, cabotage and Community 
shipowners). The conclusion is that "register of a Member State" covers 
registers in the territory of the Member State to which the Treaty, with all its 
rights and obligations, applies. This is not true, however, of the OCT, where 
there are also different manning rules in force. 
The Commission is therefore not presently proposing any amendments on the 
subject of cabotage. 
().l L 364, 12.12.1992, p. 7. 
29 
ANNEX 1: GENERAL SITUATION OF THE OCT 
I. Socio-economic features 
A. The only thing the twenty OCT have in common is the fact that, with the 
exception of Greenland and the British and French Antarctic Territories, they are 
all islands, in many cases archipelagoes. 
The OCT can be divided into those situated in the tropics (such as the French 
Pacific OCT. the Dutch OCT and the British islands in the Caribbean), and those 
in the far north (Greenland and St Pierre et Miquelon) and the far south (the 
Falklands and the Southern and Antarctic Territories). 
B. Apart from Greenland, which? with a land mass of 2 175 600 km2' is larger than 
the European Union. New Caledonia (19 000 km2), the Falkland Islands (12 000 
km2) and French Polynesia (4 200 km2), the OCT are very small. 
C. They are scattered around the world 
the eleven British OCT are widely scattered: five are in the Caribbean 
region, three of them in the Lesser Antilles (Anguilla, Montserrat, British 
Virgin Islands) and two in the Greater Antilles (Cayman Islands, Turks 
and Caicos Islands); there are a number of islands in the southern 
Atlantic, some on the latitude of Tierra del Fuego (Falklands, Sandwich), 
others on the latitude of Angola (St Helena); Pitcairn is isolated in the 
Pacific, and the British Indian Ocean Territories are situated to the south 
of the sub-continent. 
the six French OCT are also very scattered: French Polynesia, New 
Caledonia and Wall is et Futuna are in the Pacific, Mayotte and the three 
Southern Territories in the Indian Ocean, and St Pierre et Miquelon off 
Newfoundland. 
the Dutch OCT are all situated in the Caribbean, with three islands off the 
coast of Venezuela (Aruba, Bonaire, Curaçao) and three in the Leeward 
Islands (Saba, St Eustatius and St Maarten). 
Greenland covers a huge expanse in the Atlantic, in the Labrador Sea. 
}o 
D. The population of the OCT totals around 900 000, broken down as follows: 
85 000 in the British OCT; 
483 000 in the French OCT; 
262 000 in the Dutch OCT; 
55 000 in the Danish OCT. 
Only three of the OCT have more than 150 000 inhabitants (Netherlands Antilles, 
French Polynesia, New Caledonia), and most of them are sparsely populated, in 
many cases with fewer than 10 000 inhabitants (Anguilla, St Helena, Falklands, 
St Pierre et Miquelon). 
E. The above features inevitably have economic repercussions. Investment projects 
are hampered by distance-related costs and the small surface areas involved, 
production costs are higher than in the Community, and investment and 
repayment costs have to be borne by a limited number of taxpayers. 
Per capita GDPs vary considerably. Subject to the remarks made in point II 
below, six OCT are substantially more developed than the rest: the Cayman 
Islands, with a per capita GDP of USD 30 511; Greenland (USD 16 679); Aruba 
(USD 15 866); French Polynesia (USD 15 270); New Caledonia (USD 13 400); 
and the British Virgin Islands (USD 10 882). The other OCT have per capita 
GDPs ranging from USD I 500 to 7 000. 
F. OCT trade balances are generally negative, in many cases badly so. OCT trade 
is tightly bound up with the Community and, in spite of a series of association 
decisions designed to open up Community markets to OCT products, there has 
been little diversification in trade with their Member States. 
II. Statistics: a word of warning 
Statistical data on the OCT must be approached with a considerable degree of caution. 
There is a dearth of detailed, recent figures, and it is by no means certain that the basic 
data that are available are technically consistent and hence comparable. Given this 
situation, the EC Statistical Office was obliged to turn to a number of sources, such as 
the World Bank and the Caribbean Development Bank, in its efforts to produce as 
accurate a picture as possible. The main economic indicators thus collated are given in 
Annex 1, Tables A-D. 
S I 
In any case, any analysis of economic indicators such as per capita GDP and trade 
balances is rendered highly contentious by the fact that most OCT are small in both 
surface area and population (often around 10.000 inhabitants): for example, a one-off 
import or export can throw the entire year's balance of trade figures out of kilter. One 
would also expect the trade balance figures of service-based economies to include 
invisibles, but they are not itemized in the figures available. 
III. Status of the OCT with regard to the Member States concerned 
Leaving aside the specific features of the constitutions of individual territories and the 
related legislation adopted by their Member States, the OCT generally enjoy a 
considerable degree of administrative autonomy, except where foreign affairs, defence, 
monetary policy and, in some cases, justice are concerned. 
Their status is a matter of democratic choice, in many cases made on the basis of 
référendums conducted by universal suffrage. The governments of the Member States 
concerned each have a ministerial portfolio devoted to relations with their OCT. 
The constitutional status of the OCT varies considerably, and as such is liable to entail 
different consequences vis-à-vis Community legislation, as we shall see below. 
A. British OCT 
The British OCT are subject to the jurisdiction of the Crown, and their Head of State is 
Queen Elizabeth II. They have all freely chosen to remain UK dependencies, lacking full 
autonomy. 
I. They are administered locally by a mixed system consisting of elected representatives 
and appointed officials. They all enjoy a very considerable degree of autonomy, but 
some powers remain the exclusive province of Governors appointed by the Foreign 
Minister. These powers usually comprise foreign affairs, defence, internal security and 
justice. Some Governors are also in charge of personnel administration, and in the 
Caribbean they are also responsible for off-shore financial arrangements. Other 
administrative tasks are performed by locally elected ministers. 
*%t 
The key governing body is the Executive Council, generally chaired by the Governor and 
consisting of elected Ministers and senior appointees such as the Attorney-General. 
Most of the Territories have a single Assembly which passes territorial legislation, in 
compliance with UK and international legislation. 
The OCT have their own budgetary resources, but the UK government also provides 
development aid and technical cooperation in most cases. 
2. The citizenship status of OCT inhabitatants - which can have repercussions in respect 
of Community legislation - varies. 
The UK has on two occasions defined its interpretation of the term "nationals" with 
regard to Community legislation, once when the UK joined the EEC, and again with the 
adoption of the British Nationality Act of 1981: 
in most cases, OCT nationals are "British subjects" (rather than "British 
citizens") with the right of abode in the UK; 
the people of the Falkland Islands are defined as "British Dependent 
Territories citizens", a status they have shared with the people of 
Gibraltar since the Falklands Islands Act of 1983. 
B. French OCT 
The French OCT are divided into two different types: the four Territoires d'Outre-Mer 
(TOM - Overseas Territories) and the two Collectivités Territoriales (Territorial 
Communities). 
1. The TOM (New Caledonia and dependencies, French Polynesia, Southern and 
Antarctic Territories, Wallis et Futuna) are each covered by a basic law establishing their 
institutions and delegating extremely varied degrees of power to the territorial 
authorities. 
French Polynesia is the most independent, its territorial government and assembly being 
endowed with legislative autonomy. The French state is represented by a High 
Commissioner, 
#^s 
who promulgates the laws adopted by the territorial government after they have been 
debated by the territorial assembly. 
Since the national referendum of November 1988 conducted in the wake of the Matignon 
Agreements, New Caledonia has been governed by an interim law that will remain in 
force until the self-determination referendum scheduled for 1998. Under the current 
arrangements, the Territory's institutions consist of a Congress comprising the 
Assemblies of the three Provinces (North, South, Islands), with a High Commissioner 
in the role of executive. 
The Wall is et Futuna Islands are governed by a Senior Administrator appointed by the 
State, assisted by a Territorial Council operating on the basis of opinions delivered by 
the Territorial Assembly. 
The Southern and Antarctic Territories (the islands of St Paul and Amsterdam, the 
Crozet Islands, the Kerguelen Islands and Adélie Land) are governed by a Senior 
Administrator appointed by the State and assisted by an Advisory Council. 
2. Although the two Collectivités Territoriales (Mayotte, St Pierre et Miquelon) are each 
governed by specific laws on their organization, their status is much closer to that of a 
full département. The French government designates a representative with the rank of 
Prefect, and the Territories have a General Council elected by direct universal suffrage. 
3. Regardless of the administrative status of the Territory from which they come, French 
OCT nationals enjoy full French citizenship, and thus hold European passports like any 
other French citizen. 
They are eligible to vote for, and be elected to, the French National Assembly (one or 
more members per OCT), the Senate (one or more senators per OCT) the French 
Presidency, and (unique among the OCT) the European Parliament (the recent elections 
returned one Polynesian and one New Caledonian member). 
C. Dutch OCT 
The Charter of the Kingdom of the Netherlands of 22 October 1954 established a 
tripartite realm, with the Sovereign of the Netherlands as Head of State. Under this new 
constitutional order, the Netherlands, the Netherlands Antilles and Suriname (now 
independent) deal with their domestic affairs autonomously, and handle matters of 
common interest jointly, on an egalitarian basis. In other words, the Netherlands Antilles 
are associated with the Netherlands with equal rights. 
+ 11* 
This basic text governs the relations of the Netherlands and the Netherlands Antilles, of 
which Aruba was an integral part until 1 January 1986, when, under an amendment made 
to the Charter on 22 July 1985, the island was accorded separate status, placing it on an 
equal footing with the Netherlands Antilles (the five islands of Curaçao, Bonaire, Saba, 
St Eustatius, St Maarten) in terms of its relations with the Netherlands. 
I. Aruba and the Netherlands Antilles each have their own constitution, and enjoy 
domestic autonomy with their own government and parliament. 
The Charter rests on two essential principles: 
the association of the two "overseas countries" with all affairs of State (the term 
"kingdom" is used in the Charter with regard to affairs of common interest); 
autonomy in the administration of internal affairs. 
The Charter provides for reciprocal representation in the administrative and political 
bodies of the Netherlands and the overseas countries; this provision plays an important 
role. 
The Crown "member countries" are associated with the affairs of the kingdom which are 
administered "in cooperation". The plenipotentiary ministers of the associated countries 
sit on the Council of Ministers of the Kingdom, and take part in the Council's 
deliberations and all its special meetings on matters of common interest having an impact 
on their country. Mirroring the representation of the overseas countries in The Hague, 
the Dutch sovereign is represented in the Antilles and Aruba by a Governor who 
exercises executive power jointly with the local Council of Ministers, with the assistance 
of an Advisory Council. 
As regards constitutional and legislative organization, Article 41 of the Charter lays 
down the principle of autonomy in the conduct of the internal affairs of each of the 
kingdom's components, although there are some restrictions concerning those of the 
kingdom's affairs held to be "of common interest". 
This list is not exhaustive, and can be added to with the consent of all the parties. Thus, 
any matter not explicitly recognized as being "of common interest" is held to be an 
"internal affair". 
^5 
2. Citizens of the two Dutch OCT have full Dutch nationality, and therefore, like 
French OCT citizens, have the same European passport whether they are from The 
Hague, Curaçao or Aruba. 
The citizens of each of the three parts of the kingdom can vote for, and be elected to, 
their own parliaments. 
Netherlands Antilles and Aruba nationals residing in the Netherlands or abroad, in say 
the USA or Spain, are eligible to vote and stand for the European Parliament, but not 
those residing in the two OCT. 
D. Greenland 
When the Danish constitution was revised in 1953, Greenland ceased being a colony to 
become an integral part of the Kingdom of Denmark. 
On Denmark's accession to the EC in 1973, Greenland, unlike the Faroe Islands, which 
had obtained "home rule" in 1948, therefore became a part of the Community in the 
same way as "metropolitan" Denmark. However, Greenland's relationship with the 
Community was very controversial, with 70% of Greenlanders voting against accession 
in the Danish referendum of 1972. 
On 1 May 1979, Greenland acquired the status of a "distinct community within the 
Kingdom of Denmark", along the same lines as the "home rule" granted to the Faroe 
Islands in 1948. This new status was confirmed in a referendum held in February 1982. 
The home rule system is based on the principle of preserving the unity of the Kingdom 
of Denmark; the constitutional status of the "home rule authority" is governed by Danish 
law, under which the national parliament delegates some of its authority to Greenland. 
Local administration is the preserve of the Greenland authorities, while broader issues 
are handled by representatives of the Kingdom or by the Danish government. 
Environmental protection was transferred to the home rule authority on 1 January 1989. 
and the country's mineral resources are the joint property of Denmark and Greenland, 
but defence, finance, private law and international relations remain the province of 
central government, although in the case of the latter Greenland is consulted on matters 
that concern it. 
# i< 
Under the home rule system, Greenland elects two members to the Danish parliament. 
IV. Repercussions for Community legislation 
Depending on whether or not OCT form an integral part of their Member States, their 
citizens may have differing personal status as regards the application of Community 
legislation. 
Precedent dictates that only the Council, through an association decision adopted on the 
basis of Article 136 of the Treaty, can apply a given provision of the Treaty or the 
secondary legislation to the OCT, a fact that sets them apart from the French 
Départements d'Outre-Mer (DOM). That having been said, citizens of OCT that form 
an integral part of a Member State (Denmark, France, Netherlands) are perfectly within 
their rights to query this arrangement, and their elected representatives duly broached 
this issue with the Commission during the preparatory consultations conducted in line 
with Article 240 (3) of Decision 91/482/EEC. 
By way of illustration of these queries and rights, we will use the words of Professor 
Jacques Ziller, one of the world's leading specialists in Community law, in a paper 
inspired by the Kaeffer/Procci case brought before the Court of Justice.1'" 
"The French and Dutch OCT and Greenland form an integral part of the French 
Republic, the Kingdom of the Netherlands and the Kingdom of Denmark respectively, 
with significant variations in the extent of their internal autonomy, from none at all for 
Wall is et Futuna and the French Southern and Antarctic Territories, to legal autonomy 
on an equal footing with that of the Netherlands in Europe for Aruba and the Netherlands 
Antilles. The law on citizenship in these countries makes no distinction between 
metropolitan and OCT nationals, a fact which has significant repercussions with regard 
to the application of Community legislation. 
From "Champ d'application du droit communautaire", Prof. J. Ziller, Editions 
Techniques .luris-Chasseurs, No 470, 1991-1 1. # u 
The British OCT, on the other hand, do not form an integral part of the United 
Kingdom. Regardless of whether they are colonies, associated countries, or territories, 
and irrespective of the extent of the internal autonomy they enjoy, they must be 
considered as territories whose external relations are managed by the United Kingdom. 
British law on citizenship distinguishes between UK and OCT nationals, a fact which has 
significant consequences with regard to the application of Community legislation. 
The repercussions of these differences in status are illustrated by the cases brought 
jointly by Kaefer and Procacci.14 
According to the United Kingdom, the administrative tribunal of Papeete, which issued 
the preliminary rulings brought before the Court of Justice in this case, does not qualify 
as a "court or tribunal of a Member State" within the meaning of Article 177 of the 
Treaty. The first problem to be solved with regard to this assertion was to establish 
whether or not the tribunal concerned, the judicial nature of which was not contested, 
was a "court or tribunal of a Member State". It is not surprising that this matter should 
have been raised by the UK government, since the constitutional status of British OCT 
entails that their tribunals are not tribunals of the United Kingdom of Great Britain and 
Northern Ireland, even though their Court of Appeal is the Judicial Committee of the 
Privy Council, a body that has no judicial function in the UK's internal affairs. 
The situation as regards the Dutch OCT is more complex. They form an integral part of 
the Kingdom of the Netherlands, a tripartite State created in 1953 and comprising (since 
1986) Aruba, the Netherlands Antilles and the Netherlands. Aruba and the Netherlands 
Antilles have their own tribunals, but they dispense justice in the name of the 
Sovereign,20 and - more importantly - their Court of Appeal is the High Council of the 
Netherlands,21 which is thus the Supreme Judicial Court for all three parts of the 
Kingdom. We can therefore deduce that the tribunals of Aruba and the Netherlands 
Antilles are "courts or tribunals of a Member State", on an equal footing with those of 
the Netherlands proper. 
Court of Justice of the European Communities, 12 December 1990, P. Kaefer and 
A. Procacci vs French State, Case Nos C-100/89 and C-101/89, Reports Vol. 1, 
p. 4647. 
Article 97 of the Constitution of the Netherlands Antilles (Staatsregeling van de 
nederlandsc Anlillen, Official Journal (Staatshlad) 1955/136, and Article VI 1 of 
the Constitution of Aruba {Slaatsregeling van Aruba), Official Journal 
(Afkondigingsblad van Aruba) 1985/26. 
Hoge Raad der Nederlanden, Article 23 of the Constitution of the Kingdom of the 
Netherlands {Slatuut voor bet Koninkrijk der Nederlanden). 
Greenland's internal autonomy status, obtained on 1 May 1979, makes it a "distinct 
community within the Kingdom of Denmark", but justice remains the province of the 
Kingdom's central authorities. We can therefore conclude that Greenland's courts and 
tribunals are also those "of a Member State". 
One would imagine that the UK's intervention was in fact not so much concerned with 
the administrative tribunal of Papeete per se, as with putting down a marker with regard 
to the status of British OCT tribunals; in which case, the Court's ruling in this matter 
was presumably acceptable to the UK government, in that it merely observed that the 
Papeete tribunal's status as a French court was not contested after the Advocate-General 
had specified that this status was based on Articles 2, 72 and 74 of the constitution, and 
on the law of 6 September 1984 concerning the status of the Territory of French 
Polynesia. It is therefore clear that the concept "tribunal of a Member State" must be 
understood in relation to the internal legislation of the Member State concerned, while 
the jurisdiction ratione materiae of such tribunals must be defined in terms of 
Community legislation." 
^ 
BRITISH OCT 
Territory 
AnguillR 
tayman Islands / 
I-* "*• --
Falkland Islands, j 
South Sandwich 
Islands 
British Virgin 
'Islands 
Montserrnt 
Pitcaim 
Saint Helena and ,' 
dependencies 
British Antarctic 
Territories 
British Indian 
Ocean Territories 
Turks and Caicos 
Islands Population 
1992 
9 000 
30 000 
2 000 
-
13 000 
12 000 
(1993) 55 
7 000 
-
-Surface area 
(Km2) 
1992 
91 
264 
12 173 
-
150 
102 
(1993) 35.5 
308 
-
\ 
12 000 417 
TOTAL 1 85 000 13 .540.5 
1 7 Density 
(Pop /Km 2) 
1992 
98,9 
113.** 
86,96 
-
86*67 
117,65 GNP 
Million USD 
1992 
66.1 
836,0 
n/a 
-
185,0 
63*3 
1.54 
22.73 
-
-
28.78 15,1 
~ 
-
78.8 GNP. per 
Capita USD 
1992 
6B34 
305H 
n/a 
-
10 882 
5 976 
-
2 804 
-
-
6 252 Imports 
Million USD 
1991 
32.6 
271,0 
(1989) 
13 867 
-
135.0 
35,2 
-
10.2 
-
-Exports 
Million USD 
'l991 
0,4 
3.0 
(1989) 
17 692 
-
3.3 
10 
-
0,2 
-
-Dotaocc 
of Trade 
1991 
-32,2 
-268.0 
(1989) 
3 825 
« 
-131,7 
-34,2 
-
-10 
-
-
45.0 4,0 1-41,0 
Source: UN Population nod Vital Statistics Report, April 1994 
Caribbean Development Bank Annual Report 1993 
St. Helena and Dependencies Yearbook 
Note; GNP Figures were only available for British Virgin Islands ( USD 164.9m in 1989) and for St Helena and Dependencies 
(M? 9.67m in 1990/91). 
Gase EUR0STAT A 5 
® > 
Z m x 
CD 
m 
FRENCH OCT 
Territory 
Mayottc 
New 
Caledonia 
French 
Polynesia 
St-Plerrc-ci-
Miquclon 
Southern & 
Antarcti c 
Territories 
WAIHS el 
Futurist 
TOTAL Population 
1991 
94 410 
(1990) 
169 900 
199 031 
(1990) 
6 392 
(1990) 
13 705 
483 438 Surf ate area^. 
Km2 
1991 
374 
19 103 
A 167 
242 
274 
24 160 P- _.— 
Density 
Pop/km2 
19$1 
252 
8,89 
47,76 
26.4 
50 GNP 
Million USD 
1991 
476 
(1989) 
2 223 
(1990) 
3 007 
-
-1 GNP . per 
Capita 
USD 
1991 
5 041 
(1989) 
13 400 
(1990) 
15 270 
3 200 
(198<J) 
1 500 Imports.- j 
Million USD 
1992 
(1990) 
38,55 
(1988) 
839,89 
(1990) 
882 
47,5 
(1985) 
13,04 ( ' Exports- ,; 
/MilliorfUSD 
1992 
(1990) 
4,42 
(1990) . 
424.45 
(1990) 
106 
15 77 
(1985) 
0,002 | Balance 
of Trade 
Million USD 
1992 
(1990) 
-34,13 
(1990) 
-414,45 
(1990) 
-776 
-31,73 
(1985) 
-13,038 
Source; 
Mayotte: Préfecture. Dzadoudi. 
New Ca ledoni a ' institue Territorial de la Statistique et des Etudes Economique, Noumea 
French Polynesia j^stitut Territorial de la Statistique, Papeete 
St-Picrrc -et-Miquclon; Prefecture place du Lieutenant, Si Pierre 
Wallis ct Furuna: Europa World Yearbook 1994 
PAO Production Yearbook 1992 
Base EUR0STAT A 5 > z z m x 
r 
w 
© 
DUTCH OCT 
1 
Arubn 
/Netherlands 
| Antilies 
TOTAL Population 
1992 
71 233 
191 311 
262 544 Surface area 
(Km2) 
1992 
193 
800 
993 Densjty 
(Pop /Kra2) 
1992 
369 
239 '.' GNP 
Million USD 
1992 
1 130,16 
(1988) 
1407 GNP per 
Capita USD 
1992 
15 866 
(1988) 
7 395 Imports 
Million USD 
1992 
387,3 
(1990) 
2 093 Exports 
Million USD 
1992 
22,8 
(1990) 
1776 | 
# Balance 
of Trade 
Million USD 
1992 
-364.5 
(1990) 
-317 
Source; Ccntraal Bureau Voor de statistiek. Curaçao 
Bank Van de Nederlandse Antillen, Curaçao z z m x 
Base EUROSTAT A 5 
m 
GREENLAND 
Territory Population 
1993 Surface "areé 
(KJU2) 
1993 Density 
CPop/km2) 
1993 GNP 
Million USD 
1991 GNP per 
Capita USD 
1991 Imports 
Million USD 
1992 Exports 
Million USD 
1992 Balance 
of Trade 
Million USD 
1992 
Greenland 55 117 2 175 600 0,025 919,32 16 679 415,37 304.82 •110.55 
I Source: Greenland Bureau of Statistics 
Buropa World Yearbook 1994 
Base EUROSTAT A 5 > 
2 m x 
ANNEX 2: COMMISSION/MEMBER STATE/OCT PARTNERSHIP 
Delete terms < between brackets > 
Article 234 
Community action shall be based <as tar as possible> on close consultation between 
the Commission, the Member State responsible for a country or territory and the relevant 
local authorities of such countries of territories. 
This consultation shall hereinafter be referred to as 'partnership'. 
Article 235 
1. Partnership shall cover the programming, preparation, financing,monitoring and 
evaluation of operations carried out by the Community under this Decision, and any 
problem arising in relations between the OCT and the Community. 
2. To this end, working parties in association with the OCT, of an advisory nature and 
made up of the three partners referred to in Article 234, <may be> shall be set up 
either on the basis of geographical area or by group of OCT under the responsibility of 
a single Member State, notably at the request of the OCT concerned. These working 
parties shall be set up: 
on an ad hoc basis to deal with specific problems, or 
on a permanent basis for the period remaining of the life of this Decision. < in 
this case they shall meet at least once a year to examine progress in implementing 
this Decision or deal with other matters arising under paragraph l.> 
3. The Commission shall chair the working parties. A representative of the Bank shall 
be present at meetings when matters concerning it are on the agenda. 
The general expenses of these meetings and the expenses incurred by OCT 
representatives in attending meetings shall be borne by the relevant authorities of the 
OCT. 
© 
Article 236 
1. Other OCT shall be notified by the Commission of recommendations made by a 
working party. 
2. The opinions of working parties shall be duly taken into account by the Commission, 
notably in its role of administrator of the Fund. Where relevant, they shall form the basis 
of proposals from the Commission to the Council with a view to bringing into force, 
under Article 136 of the Treaty, new provisions concerning the application of the 
association of the OCT with the Community, with particular regard to the effects on the 
OCT of the completion of the single market. 
ANNEX 3: CENTRE FOR THE DEVELOPMENT OF INDUSTRY 
Article 48 
At the request of their relevant authorities, the OCT may be eligible for the services of 
the Centre for the Development of Industry (CDI) referred to in Articles 87-96 of the 
fourth Lomé Convention, the objectives and activities of which are described below, or 
those of the Euro Business Information Centres set up under the Community's business 
promotion policy. 
Any costs resulting from services provided by the CDI or the Euro Business Information 
Centres for the benefit of the OCT shall be financed from the funds provided for in 
Article 154 for whichever of the three groups those OCT belong to. 
Article 48a 
The CDI shall help to establish and strengthen industrial enterprises in the OCT, notably 
by encouraging joint initiatives by economic operators of the Community and the OCT. 
In the interests of effectiveness, the CDI shall focus its efforts on OCT that have 
identified support for industrial development, or the private sector in general, as a focal 
sector for Community aid in their indicative programmes. 
In these OCT the CDI's shall carry out its activities inthe framework of 
industrial-development or private-sector support programmes established for the 
implementation of the ndicative programmes, and shall direct its activities to small and 
medium-sized enterprises. 
The CDI shall exercise selectiveness in undertaking the tasks referred to above, laying 
emphasis on opportunities for joint ventures and subcontracting. 
Article 48b 
1. In undertaking the tasks referred to in Article 48a the CDI shall operate by giving 
priority to viable projects. In particular, it shall: 
(a) identify, appraise, evaluate, promote and assist in the implementation of 
economically viable industrial projects of the OCT; 
(b) carry out studies and appraisals aimed at identifying practical opportunities for 
industrial cooperation with the Community in order to promote the industrial 
development of the OCT, and facilitating the implementation of appropriate 
schemes; 
(c) supply information and also specific advisory services and expertise, including 
feasibility studies, with a view to expediting the establishment and/or restoration 
of industrial enterprises; 
(d) identify potential partners of the OCT and the Community for joint investment 
operations and assist in the implementation and follow-up; 
(e) identify and provide information on possible sources of financing, assist in the 
presentation for financing and, where necessary, assist in the mobilization of 
funds from these sources for industrial projects in the OCT; 
(f) identify, collect, evaluate and supply information and advice on the acquisition, 
adaptation and development of appropriate industrial technology relating to 
specific projects and, where appropriate, assist in the setting up of experimental 
or demonstration schemes. 
i In order to improve the attainment of its objectives, the CDI, in addition to its main 
activities, may also pursue the following: 
(a) carry out studies, market research and evaluation work and gather and 
disseminate all relevant information on the industrial cooperation situation and 
opportunities and notably on the economic environment, the treatment which 
potential investors may expect and the potential of viable industrial projects; 
(b) help, in appropriate cases, to promote the marketing of OCT manufactures on 
their domestic markets and the markets of other OCT, the ACP States and the 
Community in order to encourage optimum exploitation of installed or projected 
industrial capacity; 
(c) identify industrial policy-makers, promoters and economic and financial operators 
in the Community and the OCT, and organize and facilitate contacts and meetings 
of all kinds between them; 
(d) identify, on the basis of needs indicated by the OCT, opportunities in industrial 
training, chiefly on the job, to meet the requirements of existing and planned 
industrial undertakings in the OCT and, where necessary, assists in the 
implementation of appropriate schemes; 
(X\ 
(e) gather and disseminate all relevant information concerning the industrial potential 
of the OCT and trends of industrial sectors in the Community and the OCT; 
(0 promote the subcontracting and also the expansion and consolidation of regional 
industrial projects. 
îî 
ANNEX 4: HEALTH AND NUTRITION 
Article 88a 
1. The Community recognizes the importance of the health sector to ensuring the 
sustainable and self-reliant development of the OCT. The aim of cooperation shall be to 
facilitate the right of access of the greatest number of people to adequate health care, 
thus promoting equity and social justice, alleviating suffering, reducing the economic 
burden of disease and mortality, and promoting the effective participation of the 
community in operations to improve health and well-being. 
The attainment of these aims calls for: 
a systematic, long-term approach to the improvement and strengthening of the 
health sector, 
the definition of comprehensive national health guidelines and programmes, 
improved management and use of existing human, financial and physical 
resources. 
2. To this end, cooperation in this sector shall seek to support functional and sustainable 
health services which are financially affordable, culturally acceptable, geographically 
accessible and technically competent. It shall seek to promote an integrated approach to 
the creation of health services based on the extension of preventive care, the 
improvement of curative care and complementarity between hospital-based and basic-
level services,in accordance with primary health care policy. 
3. Cooperation in the health sector may provide support for: 
the improvement and extension of basic health services and also the strengthening 
of hospitals and maintenance of equipment, acknowledged as essential for the 
smooth operation of the health systems a whole, 
health-sector planning and management, including the strengthening of statistical 
services, and the formulation of health-financing strategies at territorial, regional 
and district levels, this last level being the focal point for coordination of basic 
services, provision of specialist services and implementation of programmes to 
stamp out widespread diseases, 
schemes to integrate traditional medicine in modern health care, 
essential drug programmes and strategies, including local production units for 
basic drugs and consumables, taking account of traditional pharmacy, in 
particular the use of medicinal plants, which is something that should be studies 
and developed, 
training of staff in the context of an overall programme, from public health 
planners, administrators management staff and specialists, down to the personnel 
working in the field, this training being tailored to the actual responsibilities 
borne at each level, 
support for training and information programmes and campaigns aimed at 
stamping out endemic diseases,improving environmental hygiene, combating the 
use of narcotic drugs, the spread of transmitted diseases and other health scourges 
in the framework of integrated health systems, 
the building up of research institutes, university departments and specialist 
schools in the OCT, notably in the field of public health. 
ENVIRONMENT 
Article 16(2) (second subparagraph) 
Council Regulation (EEC) No 259/93 of 1 February 1993 on the supervision and control 
of shipments of waste within, into and out of the European Community22 shall apply to 
imports into the Community of hazardous waste from the OCT. 
OJ L 30, 6 February 1993, p. 1 
ANNEX 5: TRADE ARRANGEMENTS 
1. Article 101(1) is replaced by the following: 
"Products originating in the OCT shall be imported into the Community free of import 
duty". 
2. The following subparagraphs are added to Article 101(3): 
"Where it is found that trade between the OCT and the Community in products covered 
by institutional price arrangements under the common agricultural policy is threatneing 
to disruptthe market, the Commission may, after consulting the authorities involved, as 
called for by the partnership arrangements provided for in Article 235, set a reference 
price such products. 
In setting the reference price, account shall be taken of the economic and social 
development objectives of the OCT; the price shall not exceed the level strictly necessary 
to comply with the objectives of Article 39 of the Treaty, and shall allow products 
originating in the OCT more favourable conditions than those applying to imports of the 
same product originating in a third country enjoying preferential treatment in trade with 
the Community. 
The reference price arrangements and measures to ensure compliance with them shall be 
introduced in accordance with the procedure provided for in Article 38 of Regulation 
(EEC) No 136/6623, or the corresponding articles of other Regulations establishing the 
common organization of agricultural markets, as appropriate." 
"on the establishment of a common organization of the market in oils and 
fats", OJ L 172 of 30 September 1966. 
TECHNICAL MODIFICATION ON CUMULATION 
(Annex II to Decision 91/482/EEC) 
The word "however", followed by the entire text of the former Article 7. is added to 
Article 6(4). Article 7 is deleted. The new Article 6 now reads as follows: 
Article 6 
Cumulation 
1. For the purpose of implementing this Title, the OCT shall be considered as being one 
territory. 
2. When products wholly obtained in the Community or in the ACP States undergo 
working or processing in the OCT, they shall be considered as having been wholly 
obtained in the OCT. 
3. Working and processing carried out in the Community or in the ACP States shall be 
considered as having been carried out in the OCT when the materials undergo working 
or processing in the OCT. 
4. Paragraphs 2 and 3 apply to any working or processing carried out in the OCT, 
including the operations listed in Article 3 (3). However, originating products made up 
of materials wholly obtained or sufficiently processed in two or more OCT or in one or 
more ACP States and in one or more OCT shall be considered as products originating 
in the OCT or ACP States where the last working or processing took place, provided this 
working or processing exceeded the insufficient operations listed in Article 3 (3) or a 
combination thereof. 
CANARY ISLANDS 
(Annex II to Decision 91/482/EEC) 
In Title IV of Annex II, "CANARY ISLANDS, CEUTA AND MELILLA", and in 
Article 31, of which this Title consists, all references to the "Canary Islands" are 
deleted. 
RUM 
(Annex V to Decision 91/482/EEC) 
From I January 1996, Annex V is replaced by the following text: 
"I. The arrangements applicable to imports of products coming under CN codes 
2208 40 10, 2208 40 90, 2208 90 11 and 2208 90 19 originating in the OCT may be 
revised should such imports increase to an extent liable to cause injury to Community 
rum production, particularly as regards traditional rum. 
2. Acting by a qualified majority on a proposal from the Commission, the Council shall, 
where necessary, establish the provisions required for the implementation of Article I." 
ANNEX 6: PROVISIONS RELATING TO ESTABLISHMENT AND SERVICES 
Article 232 
(proposed amendments are underlined) 
As regards the arrangements applicable to establishment and provision of services, in line 
with Article 132(5) of the Treaty and subject to paragraphs 1 and 2 of this Article. 
the Member States shall treat nationals and companies or enterprises of the OCT 
on a non-discriminatory basis, 
the relevant authorities of the OCT shall treat nationals and companies or 
enterprises of Member States on a non-discriminatory basis. 
JL The relevant authorities of an OCT may, however, adopt regulations to aid their 
inhabitants and local activities in derogation from the rules normally applicable to 
nationals, companies or enterprises of all Member States as long as such derogations are 
confined to sensitive sectors of the OCT's economy and are intended to promote or 
support local employment. 
(a) Such derogations may be granted by the Commission at the request of the 
relevant authorities of the OCT concerned and after consultation in the framework 
of the partnership provisions of Articles 234 to 236. 
(b) Such a request must be accompanied by reasons indicating in particular the 
sectors concerned, the duration and other procedures envisaged. It shall be 
notified to the Commission, which shall inform the Member States and take a 
decision within three months. If the Commission has not acted within that period, 
the derogation shall be deemed to have been approved. 
(c) Such derogations shall be published in the Official Journal of the European 
Communities. 
1 If a Member State is not bound under Community law, or else national law, to 
accord non-discriminatory treatment for a given activity to inhabitants of an OCT who 
are nationals of a Member State or enjoy a legal status specific to an OCT, or for 
companies or enterprises established in an OCT and covered by the definition in Article 
233, the authorities of that OCT shall not be bound to accord such treatment. 
Article 233a 
1. Community undertakings made on the basis of the Most-Favoured-Nation clause in 
the framework of the General Agreement on Trade in Services (GATS) shall be extended 
to the OCT. 
2. As regards the arrangements governing trade in services, the OCT shall afford 
nationals, companies or enterprises of the Member States treatment that is no less 
favourable than that which they extend to nationals, companies or enterprises of third 
countries. 
Article 233b 
With a view to the ultimate recognition of professional qualifications acquired in the 
OCT, the Commission and the Member States concerned shall start work with a view 
to producing a list of professional qualifications acquired in the OCT by OCT nationals 
that would benefit from being recognized in the Member States, with the proviso that 
such qualifications must comply with the minimum training levels required by the 
Community. 
ISSN 0254-1475 
COM (94) 538 final 
DOCUMENTS 
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