ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (77)274
Vol.1977/0093

Disclaimer
Conformément aurèglement (CEE, Euratom) n°354/83 duConseil du1erfévrier 1983
concernant l'ouverture aupublic desarchives historiques delaCommunauté économique
européenne etdelaCommunauté européenne del'énergie atomique (JOL43du15.2.1983,
p.1),telquemodifié par lerèglement (CE, Euratom) n°1700/2003 du22septembre 2003
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Inaccordance with Council Regulation (EEC, Euratom) No354/83 of1February 1983
concerning theopening tothepublic ofthehistorical archives oftheEuropean Economic
Community andtheEuropean Atomic Energy Community (OJL43,15.2.1983, p.1),as
amended byRegulation (EC, Euratom) No1700/2003 of22September 2003 (OJL243,
27.9.2003, p.1),this fileisopen tothepublic. Where necessary, classified documents inthis
filehave been declassified inconformity with Article 5oftheaforementioned regulation.
InÜbereinstimmung mitderVerordnung (EWG, Euratom) Nr.354/83 desRates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft undderEuropäischen Atomgemeinschaft (ABI. L43vom 15.2.1983,
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COMMISSION OFTHEEUROPEAN COMMUNITIES
)
COM(77)274 final .
Brussels .21June 1977
\
Y
\
COMMUNICATION FROM THE COMMISSION TOTHE COUNCIL
REPORT ^
S
ontheoperation during 1975 of "the^stem setupbytheDecision on
theassociation oftheOCTwith theEECforstabilizing
export earnings ^
COM(77 )274final .
/

»
I
1.On9December 197""theCommission presented ,totheCouncil thecomprehensive
report ontheoperation during 1975 ofthe system setupbytheLom6 Con­
vention forstabilizing export earnings (COM (76)656final ).Provision is
made forthedrawing-up ofsuch areport annually inArticle 29ofthe
Internal Agreement onthefinancing andadministration ofCommunity aid ;
this Article also stipulates that itsprovisions also apply inrespect of
the countries and territories .
2.The system forstabilizing export earnings setupbytheCouncil Decision
of29June 1976 ontheassociation ofoverseas countries andterritories
with theEuropean Economic Community was notable tobeimplemented until
after the system applying totheACP States forreasons connected with the
date ofadoption oftheDecision .
\
3.This comprehensive report isconcerned with theapplication ofthesystem
during 1975 tothe overseas countries andterritories .Since this was the
first year ofapplication ,this report cannot cover the effect ofthe system
ontheeconomic development oftherecipient countries oronthedevelop­
ment ofexternal trade ,anymore than this waspossible inthereport for
theACP States .This report will deal with :
-themachinery forcooperation with thecountries and .territories ,
-theresults ofthe first period ofapplication ofthesystem .
0
0 0
I.THEMACHINERY FORCOOPERATION
4.InFebruary 1976 ,before theDecision ontheassociation oftheOCTwith
theEECwasadopted bytheCouncil ,theCommission ,inconjunction with the
Permanent Representations totheCommunities andtherelevant authorities
ofthethree member countries which thecountries andterritories come under ,
turned ,itsattention totheimplementation ofthesystem ;ithadbeen agreed
that itwould enter into force atthesame time astheBystem setupunder
theLom6 Convention ,itsfirst period ofapplication covering the1975
calendar year .

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5.Genez'ullyspeaking,theorganization setupwithintheCommissionfor
applyingthesystemtotheACPStates-thatistherelevantdepartments ,
equipment(forms,etc.),methodesandthesearchforadhocchannelsto
ensurethatthesystemoperatesrapidlyandeffectively-wasusedatthe
sametimefortheOCT.
6.OntheMemberStates*sidethemechanismforthemonthlynotification of
statisticsadoptedbytheRegulationof20January1976operatedinprac­
ticebeforethatdatefor1975*
7.Moreover,theprocedurefortheexchangeofviewswiththeMemberStates
ontransferproposalsandtheprovisionsoftheEDFfinancialregulation
adoptedbytheCouncilapplytotheOCTinthesamewayastotheACPStates.
8.Furthermore,measureshavebeentaken,inagreementwiththeMemberStates
andvaryingaccordingtothecountriesconcerned,regardingthemachinery
forcooperation :
-FrancepreferredtherequestsfortransfersrelatingtotheFrenchover­
seasterritoriestobecentralizedinParisbytheSecretariatd'Etataux
DepartementsetTerritoires d'Outre-Mer.Thisbodyhasprovidedthe
Commissionwiththelistofcorrespondents responsible forstatistical
cooperationineachoftheterritories ;
-intheparticularcaseoftheAnglo-French CondominiumoftheNewHebrides
itwasagreedthatrequestsfortransferswouldbepresentedjointlyby
theFrenchandUnitedKingdomauthorities ;
-theUnitedKingdomwantedtheUKoverseascountriesandterritoriestobe
entirelyresponsible bothforanyrequestsfortransfersandforstatis­
ticalcooperation ;
-becauseofthestructureoftheirexportstheoverseascountriesofthe
Netherlandsarenotatpresenteligibleunderthesystem;
-finally,theOCTwhichhavebecomeindependent andhaveaccededtothe
Lom£Conventioncontinue,asprovidedforinArticle1(3)oftheInternal
Agreementonthefinancingandadministration ofCommunityaidtobe
eligibleforthefundsforthestabilization ofexportearningsprovided

-3-
forinArtiole1(3)(c)ofthatAgreement.ThesameArticlealsostipu­
latesthatthemanagementrulestobeappliedtothesecountriesarethose
laiddowninTitleIIoftheConvention.Atpresentthecountriesaffected
bytheseprovisionsaretheComoros,SeychellesandSurinam.
9.MissionshavebeenmadetomostoftheOCTeligibleunderthesystem.
Theyhaveenabledthestatisticaldataforthereferenceperiodtobe
collectedand,atleastinthecaseoftheUnitedKingdomOCTandthe
Comoros,oneormorecorrespondents tobeappointed,whoareresponsible
fornotifyingandcrosschecking -thestatisticsandsigningrequestsfor
transfersandtransferagreements.Thesemissionsaretoberoundedoff
inthemonthstocomebyvisitstotheTerritoryoftheAfarsandIssas,the
GilbertIslands,Seychelles,theSolomonIslandsandTuvalu.
o
o o
II.FIRSTPERIODOFAPPLICATION OFTHESYSTEM
10.FollowingtheDecisionof29June1976*duringthelasttwomonthsof
thatyear,theCommissionreceivedfourrequestfortransfersfor1975*
OneoftherequestscamefromoneoftheOCTwhichhadbecomeindependent
andaccededtotheLomeConvention,theComoros.Theotherthreerequests
camefromthefollowing OCT:Belize,NewHebrides,TerritoryoftheAfars
andIssas.
11.Thesefourrequestswereadmissibleastheysatisfiedtheconditions
regardingthedependenceandfluctuationthresholdsprovidedforinthe
Decision.
Examinationofthetotalexportsofthecountriesandterritories
concerneddidnotshowasignificant changeandthereforenoconsultations
withinthemeaningofArticle21(4)oftheDecisiontookplace.
/

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12.TheoverallresultsforthefirstyearofapplicationoftheDecisionare
asfollows:
OCT
Belize
NewHebrides
Territoryofthe
AfarsandIssas
ACP
ComorosPRODUCT
Sawnwood
Copra
Rawhidesandskins
CopraAMOUNTOPTRA.NSFER
inEUA.
139.650
1.103.49?
256.894
1.500.043
298.304
1.798.347
13.Ofthefourcountriesconcerned,two,viz.theComorosandtheTerritory
oftheAfarsandIssas,havereceivednon-reimbursable transfers,while
BelizeandtheNewHebrideswillhavetocontribute towardstherecons­
titutionoftheresourcesmadeavailableforthesystem.
14.Withregardtotheproductscovered-sawnwood,rawhidesandskins,
copra-itisworthnotingthatthefirsttwoalreadyappearedinthecase
oftheACPStatesonthelistofproductswhoseexportshadBufferedfrom
theeconomictrend.
15*Inaccordancewithwhathasbeenstatedaboveregardingtheapplicability
totheOCToftheprovisionsoftheEDFfinancialregulationinparticular,
thetransferswerecalculatedaccordingtothesamemethodasthoseintended
fortheACPStates.Inotherwords,thevaluesresultingfromthecross­
checkingcarriedoutinthenationalcurrencyoftherequestingcountry
orterritory,wereconvertedintoEUAtakingtheaveragevalueofthe
currencyinquestionduringthereferenceperiodforthecalculationof
thereferencelevel,andbytakingtheaverageexchangeraterelatingto
1975forthecalculationofactualearnings*

-5-
PaymentofthetransferswasmadeintheMemberStatecurrencies
requestedbytherecipientcountriesorterritories.
16.Overall,thetransfersamountedto1.798*347 EUA.-wellbelowtheannual
amountallocatedtothesystem(4millionEUA).Therefore,inaccordance
withArticle20(3)oftheDecisionthebalanceof2*201.653 EUA.is
carriedforwardautomatically to1976.