COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(91) 403 final - SYN 366 
Brussels, 15 November 1991 
Proposal for a 
COUNCIL DECISION 
concerning the conclusion of a Cooperation Agreement between the 
European Economic Community and the Republic of Finland on a 
research and technological development programme in the field 
of renewable raw materials: forestry and wood products 
(including cork), "FOREST" 
(presented by the Commission) 
J 
EXPLANATORY UEHORANDUU 
Subject: Proposal for a Council Decision concerning the conclusion of a 
Coopérât Ion Agreement between the European Economic Community and 
the Republic of Finland on a research and technological development 
programme In the field of renewable raw materials. 
1. By Its Decision of 20th November 1989(1), the Council adopted a specific 
R&TD programme In the fields of raw materials and recycling (1990-1992). 
2. Article 8 of this Decision authorises the Commission to negotiate 
agreements with specified third countries, Including those European 
countries having concluded framework agreements for scientific and 
technical cooperation with the Community, with a view to associâtIng them 
wholly or partly with the programme. 
3. In the context of the Implementation of the Framework Agreement for 
sclent IfIc and technical cooperation between the European Communities and 
Finland, the conclusion of which on behalf of the EEC was approved by the 
Council Decision of 9th February 1987, this country has asked to 
participate In one subprogramme of the above mentioned Community 
programme, relating to forestry and wood products (Including cork) as a 
renewable raw material (FOREST). 
European cooperation within the field of forestry and forest Industrial 
research Is Justified by the cross-border nature of silviculture research 
problems and the need to unite the skills of sclent 1st s from various 
technological disci piInes In order to Improve the Industrial use of wood 
as a raw material. Only Joint efforts In promoting and adapting recent 
blotechnologlcal and technological findings within this sector can 
guarantee a significant contribution to the development of forestry and 
forest Industries Inside Europe. 
Considering that the association of Finland with the Implementation of 
this Community subprogramme can be of mutual advantage, the Commission 
negotiated with this country the attached draft Agreement. 
During the negotiations, Finland accepted the bilateral agreement pattern 
proposed by the Commission and recently used for EFTA country 
participation In the environmental programme "STEP". This pattern 
Introduced a new element - the "Cooperation Committee" - which did not 
exist In the S & T cooperation agreements previously concluded between 
the EC and these countries. 
(1) O.J. No. L 359. 8.12.1989. p.16. 
iï* 
The new pattern allows these countries to part Ici pate In the Community 
R&D programmes which are managed by committees laid down In the Council 
Decision 87/373/EEC of 13th July 1987 and takes Into account the three-
phase procedure described In the statements minuted at the Council 
meeting of 20th November 1989 at which the programme on raw materials and 
recycling was adopted. This procedure was detailed In paragraph 7 of the 
Commission Communication to the Council of 13th June 1990(2'. 
7. The Commission will endeavour to achieve consistency between the 
functions of the Cooperation Committee and the coordination requirement 
provided for In Article 3(4) of the proposed draft Agreement. 
8. Finland having accepted as a fundamental criterion of reference the 
principle that raw materials and recycling was and has to remain a 
Community programme In which the Community Interests have to be 
safeguarded, a draft Agreement has been agreed. 
9. The draft Agreement, which Is annexed to the attached proposal for a 
Council Decision, provides for: 
- the association of Finland with the Implementation of the above 
mentioned Community subprogramme; 
- a financial contribution from Finland for the funding of the work to 
be carried out In the framework of research contracts and of the 
management and administrâtIve operating expenditure for the Community 
subprogramme; this financial contribution Is proportlonal to the gross 
domestic product (GDP) of Finland; the funds paid will be credited to 
the Community budget (relevant budget heading 602) In conformity with 
the financial Annexes C and D; 
the entitlement of persons and research bodies from Finland to submit 
research proposals and to conclude the related research contracts with 
the Commission; 
- the establIshment of a Cooperation Committee with representatives of 
the Community and Finland, to ensure a proper Implementation of the 
Agreement and mutual coordination and Information on the development 
of the "FOREST" subprogramme. The Committee shall adopt Its own rules 
of procedure. 
10. In view of the nature of the cooperation, any additional expenditure paid 
from the Community budget (relevant budget heading B6-8004) resulting 
from the Implementation of this draft Agreement will be covered by the 
financial contribution from Finland. 
11. The Commission proposes that the Council adopt the attached proposal for 
a Decision. 
(2) Communication to the Council "Cooperation In S & T with third 
countries" (COU (90) 256 final). 
^Ir*v. 
Proposal for a 
COUNCIL DECISION 
concerning the conclusion of a Cooperation Agreement between the European 
Economic Community and the Republic of Finland on a research and technological 
development programme in the field of renewable raw materials: forestry and wood 
products (including cork), "FOREST". 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic Community, and In 
particular Article 130 Q (2) thereof. 
Having regard to the proposal from the Commission (1), 
in cooperation with the European Parliament (2), 
Having regard to the opinion of the Economic and Social Committee (3), 
WHEREAS by Decision 89/626/EEC (4), the Council adopted a specific research and 
technological development programme In the fields of raw materials and recycling 
(1990-1992); whereas Article 8 of this Decision authorises the Commission to 
negotiate agreements with specified third countries, including those European 
countries having concluded framework agreements for scientific and technical 
cooperation with the Community, with a view to associating them wholly or partly 
with the programme; 
WHEREAS by Decision 87/177/EEC (5), the Council approved the conclusion, on 
behalf of the European Economic Community, of the Framework Agreements for 
scientific and technical cooperation between the European Communities and, among 
others, the Republic of Finland; 
WHEREAS the Government of Finland has asked to participate in one subprogramme of 
the above mentioned Community research programme, relating to forestry and wood 
products (including cork) as a renewable raw material (FOREST); 
(1) O.J. N- C 
(2) O.J. N' C 
(3) O.J. N* C 
(4) O.J. N* L 359, 8.12.1989, p. 16. 
(5) O.J. N* L 71, 14.03.1987, p. 29. 
i. 
WHEREAS the Community and Finland expect to obtain mutual benefit from 
coopérât Ion, 
HAS DECIDED AS FOLLOWS : 
Article 1 
The Cooperation Agreement between the European Economic Community and the 
Republic of Finland on the research and technological development programme In 
the field of renewable raw materials Is hereby approved on behalf of the 
Community. 
The text of the Agreement is attached to this Decision. 
Article 2 
The President of the Council shall carry out the notification as provided for in 
Article 10 of the Agreement. 
Done at 
For the CounciI 
The President 
SL\i 
COOPERATION AGREEMENT 
BETWEEN THE EUROPEAN ECONOMIC COMMUNITY 
AND THE REPUBLIC OF FINLAND 
ON RESEARCH AND TECHNOLOGICAL DEVELOPMENT 
IN THE FIELD OF RENEWABLE RAM MATERIALS: 
FORESTRY AND WOOD PRODUCTS (INCLUDING CORK) 
("FOREST". 1990-1992) 
Y - 2 hvr\ 
THE EUROPEAN ECONOMIC COMMUNITY, hereinafter called "the Community" 
and 
"THE REPUBLIC OF FINLAND", hereinafter called "Finland" 
both hereinafter called the "ContractIng Parties" 
WHEREAS the Community and Finland concluded a Framework Agreement for 
sclent IfIc and technical cooperation which entered Into force on 17 July 
1987; 
WHEREAS, by Decision of 20 November 1989. the Council of the European 
Communities, hereinafter called "the Council", adopted a RTD programme In the 
fields of raw materials and recycling (1990-1992), which Includes Inter alia 
a subprogramme relating to forestry and wood products (Including cork), as a 
renewable raw material (FOREST), hereinafter called "the Community 
subprogramme"; 
WHEREAS the association of Finland with the Community subprogramme can help 
to Improve the efficacy of the research carried out by the Contracting 
Parties In the fields of forestry and wood products and can avoid the useless 
duplication of efforts; 
WHEREAS the ongoing talks, relating to a European Economic Area, between the 
Commun! ty and the EFT A countries are likely to lead to a result In the area 
of R & D, the Contracting Parties should endeavour to find solutions for the 
continued cooperation In the field of R & D In the forestry sector which take 
this development Into consideration; 
WHEREAS the Community and Finland expect to obtain mutual benefit from 
Finland's association with the Community subprogramme, 
HAVE AGREED AS FOLLOWS : 
Finland Is hereby associated as from 20 November 1989 with the Implementation 
of the Community subprogramme as set out In Annex A. The Implement at Ion of 
the subprogramme and the Community's rate of financial participation are set 
out In Annex B. 
ARTICLE z 
The financial contribution of Finland , deriving from Its association with 
the Implementation of the Community subprogramme, shall be establI shed In 
proportion to the amount available each year In the general budget of the 
European Communities for appropriations covering commitments to meet 
financial obiIgatIons of the Commission of the European Communities, 
hereinafter referred to as "the Commission", resulting from work to be 
carried out In the framework of shared-cost research contracts necessary for 
the Implementation of the Community subprogramme and from management and 
administrative operating expenditure for the said subprogramme. 
The proportional Ity factor governing Finland's contribution shall be obtained 
by establtshlng the ratio between Finland's gross domestic product (GDP), at 
market prices, and the sum of gross domestic products, at market prices, of 
the Member States of the Community and of Finland. This ratio shall be 
calculated on the basis of the latest available stat 1st leal data of the 
Organisation for Economic Cooperation and Development (OECD). 
The funds est I mated as necessary to carry out the Community subprogramme, the 
amount of Finland's contribution and the 11 met able of the commitment 
estimates are set out In Annex C. 
The rules governing Finland's financial contribution are set out In Annex D. 
For the purposes of the Agreement, a Cooperation Committee to assist the 
Commission In the Implement at Ion of the research and technological 
development subprogramme In the field of forestry (1990-1992), adopted by 
Decision of the Council of the European Communities of 20 November 
1989(1), hereinafter referred to as "the Committee", Is hereby 
establI shed. 
The Committee shall consist of représentât Ives of the Community and 
Finland. 
(1) Council Decision 89/626/EEC 
- 4 
3. The Committee shall be consulted for all the matters concerning the 
Implementation of the Agreement. For this purpose. It shall make 
recommendat Ions. 
4. The representative of the Community shall take the appropriate steps to 
ensure coordination between the Implementation of this Agreement and the 
decisions taken by the Community In respect of the Implementation of the 
Community subprogramme. 
5. For the purpose of the proper Implementation of the Agreement, the 
Contracting Parties shall exchange Information and. at the request of 
either Party, shall hold consultations within the Committee. 
6. The Committee shall adopt Its own rules of procedure and It shall meet, 
at the request of either Contracting Party, In accordance with the 
conditions to be laid down In Its rules of procedure. 
ARTICLE 4 
For Finnish research and development bodies and persons, the terms and 
conditions for the submission and evaluation of proposals and the terms and 
conditions for the granting and conclusion of contracts under the Community 
subprogramme shall be limited to those arising from contracts under the same 
subprogramme. In particular, the general provisions appl/cable to research 
contracts within the Community shall apply subject to this article, mutatis 
mutandis, to research contracts with Finnish research and development bodies 
and persons as far as questions relating to taxation and customs duties and 
the utilization of research results are concerned. 
ARTICLE g 
The Commission shall send to Finland a copy of the reports establ I shed In 
accordance with Article 4 of the above mentioned Decision of the Council of 
the European Communities. 
- 5 -
Article g 
Each Contracting Party undertakes, In accordance with their respective rules 
and regulations, to fact I It ate the movement and residence of research workers 
participating In Finland and In the Community In the activities covered by 
this Agreement. 
Article 7 
The Commission and the Technology Development Centre of Finland shall ensure 
the Implementation of this Agreement. 
Article 8 
Annexes A,B,C and D to this Agreement shall be an Integral part thereof 
Article 9 
1. This Agreement shall be concluded for the duration of the Community 
subprogramme. 
Should the Community revise the Community subprogramme, the Agreement may 
be denounced under mutually agreed conditions. Finland shall be 
notified of the exact content of the revised subprogramme within one week 
of Its adoption by the Community. The Contracting Parties shall notify 
each other within three months after the Community decision has been 
adopted If a termination of the Agreement Is envisaged. 
2. Where the Community adopts a new R&D programme In the fields of 
forestry and wood products, this Agreement may be renegotiated or renewed 
under mutually agreed conditions. 
3. Subject to paragraph 1, either Contracting Party may at any time 
terminate the Agreement with six months notice. The projects and work in 
progress at the time of term/nation and/or expiry of this Agreement shall 
be continued until they are completed under the conditions laid down in 
this Agreement. 
6 -
Article 10 
This Agreement shall be approved by the Contracting Parties In accordance 
with their existing procedures. 
It shall enter Into force on the date on which the Contracting Parties notify 
each other of the completion of the procedures necessary for this purpose. 
Article 11 
This Agreement shall apply, on the one hand, to the territories In which the 
Treaty establIshlng the European Economic Community Is applied and under the 
conditions laid down In that Treaty and. on the other hand, to the territory 
of Finland. 
Article \Z 
This Agreement shall be drawn up In duplicate In the Danish, Dutch, English, 
French, German, Greek, Italian, Portuguese, Spanish and Finnish languages, 
each of these texts being equally authentic. 
For the European For the Republic of Finland 
Economic Community 
- / 
ANNEX A 
COMMUNITY SUBPROGRAMME IN THE FIELD 
OF RENEWABLE RAW MATERIALS: 
FORESTRY AND WOOD PRODUCTS (INCLUDING CORK) 
("FOREST", 1990-1992) 
The Community subprogramme shall cover the following research areas: 
Indicative allocation of funds 
(ECU million) 
1. Forest resources 
1.1 Tree Improvement 
1.2 Planning and management 
1.3 Forest protection 
2. Wood and cork technologies 
2.1 Quality assessment 
2.2 Processing technology 
3. lutp end paper manufacturing 
3.1 Improvement In pulping and bleaching 
3.2 Improvement of paper manufacture and coating 
Total 12 
- 8 -
ANNEX B 
IMPLEMENTATION OF THE SUBPROGRAMME AND 
THE COMMUNITY'S RATE OF FINANCIAL PARTICIPATION 
The subprogramme shall be Implemented by means of 
(I) shared-cost research contracts. 
(II) concerted actions, 
(III) coordination activities. 
(Iv) education and training activities and 
(v) studies and assessments. 
The subprogramme Is open to universities, research organisations and 
Industrial companies. Including small and medium-sized enterprises. 
Individuals, or any combination thereof established In the Community and In 
Finland. As a rule projects must be transnational and at least one partner 
In a project must be establ I shed In the Community. 
For shared-cost contracts, the Community participation shall not normally 
exceed 50% of the total expenditure, but this percentage may be varied 
according to the nature <:nd the stege of development of the research. In 
respect of uni vers it les and research Institutes carrying out projects In this 
subprogramme, the Community may bear up to 100% of the additional expenditure 
Involved. 
- 9 
ANNEX C 
FINANCIAL PROVISIONS 
1. According to the Council Decision adopting the FOREST subprogramme, the 
amount estimated as necessary to carry out this Community subprogramme 
shall be 12.000,000 ecus. 
2. Finland's financial contribution for Its association to the Community 
subprogramme Is estimated to be 280,423 ecus and shall be added, along 
with other possible contributions from third countries, to the above 
mentioned amount, as foreseen In Article 2 of this Agreement. 
3. The Indicative timetable for the committment appropriations of the FOREST 
subprogramme and Finland's contribution are as follows: 
(ECU) 
Community Committments 
Management and 
Administration 
Operations 
Contracts 
TOTAL 
Finland's contribution 
Management and 
Administration 
Operations 
Contracts 
TOTAL 1990 
456.000 
2.644.000 
3.100.000 
10,656 
61,786 
72.442 1991 
5 JO.000 
6.090.000 
6.600,000 
11.918 
142,315 
154,233 1992 
490.000 
1.810.000 
2.300,000 
11.451 
42,297 
53,748 TOTAL 
1.456.000 
10.544.000 
12.000.000 
34.025 
246.398 
280,423 
- 10 -
ANNEX D 
FINANCING RULES 
The Annex lays down the detailed rules governing Finland's financial 
contribution referred to In Article 2 of the Agreement. 
2. At the beginning of each year, or whenever the Community subprogramme Is 
revised so as to Involve an Increase In the amount estimated as necessary 
for Its Implementation, the Commission shall send to Finland a call for 
funds corresponding to Its contribution to the costs under the Agreement. 
This contribution shall be expressed both In ecus and In the Finnish 
currency, the composition of the ecu being defined In Council Regulation 
(EEC) No. 3180/78(1). as amended by Regulation (EEC) No. 1971/89(2>. 
The value In Finnish currency of the contribution In ecu shall be 
determined on the date of the call for funds. 
Finland shall pay Its contribution to the annual cost under the 
Agreement at the beginning of each year and at the latest three months 
after the call for funds Is sent. Any delay In the payment of the 
contribution shall give rise to the payment of interest by Finland at a 
rate equal to the highest discount rate obtained In the Member States of 
the Community on the due date. The rate shall be Increased by 0.25 of a 
percentage point for each month of delay. 
The Increased rate shall be applied to the entire period of delay. 
However, this Interest shall be payable only If the contribution Is paid 
more than three months after a call for funds has been made by the 
CommIssI on. 
Travel costs of Finnish representatives and experts arising from their 
participation In the work of the Committee referred to In Article 3 of 
the Agreement shall be reimbursed by the Commission In accordance with 
the procedures currently In force for the representatives and experts of 
the Member States of the Community and. In particular. In accordance with 
Council Decision no. 84/338/Euratom. ECSC.EEC(3>. 
(1) OJ No L 379. 30.12.1978. p.1. 
(2) OJ No L 189. 04.07.1989. P. 1. 
(3) OJ No L177. 04.07.1984, P. 25. 
// -
3. The funds paid by Finland shall be credited to the Community subprogramme 
as budget receipts allocated to Its appropriate heading In the statement 
of revenue of the general budget of the European Communities. 
4. The Financial Regulation In force applIcable to the general budget of the 
European Communities shall apply to the management of the appropriât Ions. 
5. At the end of each year, a statement of appropriations for the Community 
subprogramme shall be prepared and transmitted to Finland for 
Information. 
ISSN 0254-1475 
COM(91) 403 final 
DOCUMENTS 
EN 11 15 
Catalogue number : CB-CO-91-464-EN-C 
ISBN 92-77-76761-8 
Office for Official Publications of the European Communities 
Lr2985 Luxembourg