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DOCUMENTS "COM"
COM(81)221
Vol.1981/0081

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COMMISSION COMMUNICATION
TOTHECOUNCIL
ONTHEFINANCIAL ADJUSTMENTS RESULTING FROMTHECHANGEOF
STATUSOFCERTAIN OCTTO
ACP
(SAINTVINCENTANDTHEGRENADINES,REPUBLICOFVANUATU)
ONTHEAMENDMENT OFTHELISTSOFLEAST-DEVELOPMENT
ANDISLANDACPSTATESINTHESECONDACP-EEC CONVENCOM(81)221 final
Brussels-7May1981
V' i>7/>.
COMMISSION COMMUNICATION
TOTHECOUNCIL
TIONOFLOME
C0M(81)221final

COMMISSION COMMUNICATION TOTHECOUNCIL
ONTHEFINANCIAL ADJUSTMENTS RESULTING PROM
THECHANGEOPSTATUSOPCERTAINOCT'TOACP
(SAINTVINCENTANDTHEGRENADINES,REPUBLICOPVANUATU)
1.INTRODUCTION
/
TheOCTofSaintVincentandtheNewHebridesbecameindependent
on27October1979a-nd30July1980respectively ,theformer
nowbeingknownasSaintVincentandtheGrenadinesandthelatter
astheRepublicofVanuatu.SaintVincentandtheGrenadinesis
oneoftheACPStateswhichsignedtheSecondACP-EECConventionof
Lomeandhasindeedratifiedit.
InaccordancewithArticle135oftheSecondLomeConventionformer
OCTthathavebecomeindependent andwishtoaccedetotheConvention
havetohavetheirrequestsforaccessionapprovedby*theACP-EEC
CouncilofMinisters,andmustdepositaninstrumentofacoession
wriththeSecretariat oftheCouncil.TheRepublicofVanuatuacceded
totheConventioninthiswayon18March1981.<
MeanwhiletheCouncilhasadoptedaDecisiononthetemporary
preservation ,inthecaseoftheRepublicofVanuatu,ofthearrange­
mentsprovidedforbytheDecisionof29June1976ontheassociation
oftheOCTwith-theEECandtheDecisionof16December1930^which
replacedit. _ ..
Toavoidfurtherdelaysintheapplication tothisStateafterits
accessionofthearrangement ^providedforbytheLomeConvention ,all
thelegalactsnecessaryforthispurposeshouldbeadopted;also,
certainadjustments shouldbemadeinthecaseofSaintVincentand
theGrenadines . . -
Astheactsaresimilar,itwasconsideredadvisabletomakea
jointsubmissionforthetwocountries,andtocarryoutthe
necessaryadjustmentstotheEDFappropriations inonesingleoperation
Incisión80/ll8ó/SECof16December1930(OJNoL361,31December1930,
yy.1-110.
*

-2-
•d.TRANSFER OFRESOURCES
Article 1(4)oftheInternal Agreement onthefinancing arid
administration ofCommunity aidof20November 1979 reads as
follows :
"hhere acountry orterritory which hasbecome independent accedes
totheConvention ,theamounts indicated inparagraph 3(b)shall
bereduced andthose indicated inparagraph 3(a)correspondingly
increased byadecision oftheCouncil acting unanimously ona
proposal from theCommission ."
TheCommission therefore proposes that the Council adopt adecision
tothis effect (Annex I),theamounts having been fixed when thetwc
countries were still considered asOCT .
TheCommission 'sproposal hasbeen worked outonthebasis ofthe
amounts allocated tothis former United Kingdom OCTandthis former
Franco-British Condominium ,taking into account theallocations made by
theUnited Kingdom and theFrench Republic totheir overseas territories ,
inconsultation and with theagreement oftheCommission ,and in
accordance with thefollowing principles :
(a)Theamount ofresources tobetransferred foreach country ismace ,
upof:
-thecorresponding amount earmarked forthefifth EDF (OCT' p.irtj ;
-aproportion ofthefinancial resources reserved forregional
cooperation .
The total amount ofresources tobetransferred for the two OCT
isequal to10million ECU .
(b)This sumisallocated tothefifth EDF (ACPpart )ingrant form .
(c)Asregards Stabex ,itissuggested that adeclaration should be
recorded intheMinutes oftheCouncil calling attention tothe
provisions ofArticle 1(5)oftheInternal Agreement (Annex III).

-3-
3.ADJUSTMENT OFTHETEXTS
(a)Article143oftheCouncilDecisionof16December19^0onthe
associationoftheOCTwiththeEECprovidesthat:
"Ifacountryorterritorybecomesindependent ,theCouncil,
'actingunanimously onaproposalfromtheCommission,shall
decideonanynecessaryadjustmentstothisDecision,in
particulartotheamountsspecifiedinArticle33".
TheadjustmenttoArticles83and114oftheaboveDecisionon
thebasisofthetransfertobecarriedoutintheInternal
Agreement ;isinlinewiththeallocation madeunder2above.
TheCommissionthereforeproposesthattheCouncil ,adopta
decisiontothiseffect(AnnexII).
#* **
**
d'heCouncilwillfindenclosedthefollowingproposalsandrecommendations :
-proposalforaCouncilDecisionadjustingtheamountsmadeavailable
totheEuropeanDevelopment Fund(1979)fortheACPStatesandthe
overseascountriesandterritories (AnnexI);
proposalforaCouncilDecisionadaptingtheDecisionof16December198O
ontheassociation oftheoverseascountries a*idterritories withthe
EuropeanEconomicCommunity(AnnexII);
-proposalforaCouncilDeclarationrelatingtoStabex(AnnexIII).

!}
v VIIl/293/81–MNT
Ong .:PR
ANNEX I
"PROPOSAL FOR ACOUNCIL DECISION
adjusting -theamounts made available
totheEuropean Development Fund for the
AGP States and for the overseas countries and territories
(Saint Vincent andtheGrenadines .Republic ofVanuatu )
THECOUNCIL OPTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,
Having regard totheInternal Agreement onthefinancing andadministration
1ofCommunity aid ,signed inBrussels on20November 1979 >hereinafter
referred toasthe "Internal Agreement ",andinparticular Article 1(4)
thereof ,
Having regard totheproposal from theCommission ,
Whereas Saint Vincent ,which wasassociated with theCommunity under
.. 2Council Decision 76/568/EEC , hasbecome independent andhas
signed ajidratified theSecond ACP-EEC Convention ofLome hereinafter
referred toas"theConvention ";whereas theRepublic ofVanuatu ,having
acquired thesame status ,applied toaccede totheConvention pursuant 'to
Article 185thereof ;whereas theACP-EEC Council ofMinisters hasapproved
this application ;
Whereas theConvention hasaccordingly applied tothese twoStates from
1January 1981 and18March 1981 respectively ;
1OJNoL347 ,
2OJNoL176,22.
1.12.1980 ,p.
7,1976 ,p.8210 .

Whereas theamounts provided ,forinArticle 1(3)(a)arid ,(b)oftheInternal
Agreement were fixed atatime when the twoStates inquestion were considered
associated overseas countries andterritories ;whereas ,therefore ,inaccord­
ance with Article 1(4 )ofthe said Agreement ,theamounts provided forthe
overseas countries and ,territories inArticle l(3)(b )ofthesaid
Agreemen-j ;should bereduced andthose provided fortheAGPStates under (a)
ofthat paragraph correspondingly increased ;
HAS DECIDED A3FOLLOWS :
Article 1
Article 1(3) oftheInternal Agreement shall bereplaced bythe
following :
"3.The amount stated inparagraph 2shall heallocated asfollows :
(a)4552million EUAfortheACPStates ,comprising :
2933million EUAintheform ofgrants ,
504million EUAintheform ofspecial loans ,
280million EUAinthe'form ofrisk capital ,
550million EUAintheform oftransfers pursuant to
Title II (Chapter 1)oftheConvention ;
280million SUAintheform ofthespecial financing
facility pursuant toTitle III ,Chapter 1ofthe
Convention .
(b) 75million EUAforthecountries andterritories ,comprising :
41million EUAintheform ofgrants ,
27million EUAintheform ofspecial loans ,
7million EUAintheform ofrisk capital ,
fortherecord intheform ofthespecial financing
facility pursuant totheprovisions oftheDecision
relating tomineral products :

(c)9million3JAintheformoftransfersforthecountries
andterritories ,pursuanttothoseprovisionsofthe
Decisionwhichconcernthesystemforstabilizing export
earnings."
Article2
ThisDecisionshallapplywitheffectfrom1May1981
DoneatBrussels,
PortheCouncil
ThePresident 1

4ANNEXII
PROPOSAL FDR ACOUNCIL DECISION
amending Decision 80/1186/EEContheassociation oftheoverseas countries
andterritories with theEuropean Economic Community
■THECOUNCIL OFTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,
Having regard toCouncil Decision 80/1186/EECof16December 1980 onthe
association ofthe overseas countries andterritories with theEuropean
1
Economic Community ,andinparticular Article 143thereof ,
Ha.ving regard totheproposal from theCommissioii ,
VJhoreas theInternal Agreement onthefinancing andadministration of
2Coiiununity aid ,signed inBrussels on20November 1979 1wasamended b;y
Decision
wherein ,accordingly ,theamounts provided forinArticles 83and114of
Decision 80/1186/EECshould beadjusted ,inview ofthefact that thesecond
ACP-EECConvention ofLome hasapplied toSaint Vincent andtheGrenadines since
1January 1981 andtotheRepublic ofVanuatu since 18March 1981 ,
1OJNoL361,31.12.1980 ,p.1
2OJNoL347,22.12.1980 ,p.210
/

HASDECIDEDA3FOLLOWS:
.Article 1
Decision80/1186/ESCisherebyamended,asfollows:
1.article83shallbereplacedbythefollowing:
Fortheperiodofapplication ofthisDecision,theoverall
amountoftheCommunity'sfinancialassistanceshall "be
99millionECU.
Thisamountshallcomprise!.
1.84millionECUfromtheEuropeanDevelopment Fund,hereinafter
referredtoas'theFund*,allocatedasfollows:
(a)75millionECUforthepurposessetoutinArticles79an'^
80,consistingof:
-41millionECUintheformofgrants,
-27millionECUintheformofspecialloans,
-7millionECUintheformofriskcapital,
-(fortherecord)intheformofthespecialfinancing
facilitysetupundertheprovisionsrelatingto
mineralproducts;
(b)forthepurposessetoutinTitleII,upto9millioniCU
intheformoftransfersforthestabilization ofexport
earnings.
2.ForthepurposessetoutinArticles7980,upto15million
ECUintheformofloansfromtheBank,madefromitsownresource
inaccordancewiththetermsandconditionsprovidedforinits
Statute.Theseloansshallcarry,undertheconditionslaiddov.n
inArticle87,a3$interestratesubsidy,thecostofwhichshall
bechargedagainsttheamountsofgrantaidprovidedforint{a).

-3-
3.The(amountsprovidedforintheformofgrantsandspecial
loans,.i.e.68millionECU,lesstheallocationsforregional
cooperationprojectsandemergencyaid,asprovidedforin
Article114(2)andArticle117respectively ,andtheamount,
ifany,earmarkedforinterestsubsidiesforloansfromthe
Bank,shallbeallocatedasfollows:
-Frenchoverseasterritories :18millionECU,
-Netherlands Antilles: 20millionECU
–UnitedKingdomoverseascountries
andterritories : 13.5millionECU."
2.Article114(2)shallbereplacedbythefollowing:
"2.Tothisend,anamountof9*5millionECUfromthe
financialresourcesprovidedforinArticle83forthe
economicandsocialdevelopment ofthecountriesand
territoriesshallbereservedforfinancingtheir
regionalandinter-regional projects."
Article2.
ThisDecisionshallenterintoforceon1'May1981.
Doneat
FortheCouncil,
ThePresident

ANNEXIII
COUNCILDELCARATION RELATING TO
STABEXANDTOSAINTVINCENTAND
THEGRENADINES ANDTHEREPUBLICOPVANUATU
TheCouncilrecallsthat,inaccordancewiththeprocedurelaiddown
inArticle1(5)of"theInternalAgreementonthefinancingand
administration ofCommunityaid,theabovementioned ACPStateswill
continuetobeeligibleforthefundsprovidedforinArticlel(3)(c)
ofthatAgreement,subjecttothemanagementruleslaiddownin
TitleII.Chapter1oftheSecondACP-EECConventionofLome.

Commission Communication totheCouncil
ontheamendmentofthelistsofleast-development and
islandACPStatesintheSecondACP-E3CConventionofLome

Introduction
TheOCT ofSaint Vincent and theNewHebrides became independent on
27October 1979 an(i30July 1980 ,respectively ,theformer nowbeing
known asSaint Vincent andtheGrenadines andthelatter astheRepublic
ofVanuatu .Saint Vincent and the Grenadines isone ofthe ACP States
which signed the Second ACP-JLEC Convention ofLome andhas indeed
ratified it.Inaccordance with Article 185oftheSecond Lome Convention
former OCT that have become independent andwish toaccede tothe Convention
have tohave their requests foraccession approved bytheACP-EEC Council
ofMinisters ,andmust deposit aninstrument ofaccession with the
Secretariat ofthe Council .TheRepublic ofVanuatu acceded tothe
Convention inthis wayon18March 1981 *
Toavoid further delays intheapplication tothese States ofthearrange­
ments provided forbytheLome Convention ,the lists ofleast-developed
and island ACP States should beamended .
*
Article 155(4 )oftheConvention provides that :
"The lists oftheACP States referred toinparagraph 3maybeamended
bydecision ofthe Council ofMinisters :
/
–where athird State inacomparable situation accedes tothis
Convention
f!
Theinclusion ofSaint Vincent and theGrenadines andtheRepublic of
Vanuatu inthe lists ofleast-developed andisland ACP States iswarranted
inview oftheir low level ofper capita income andtheir dependence ona
small range ofexports .These factors arecompounded bytheproblems cause !
bytheir geographical isolation andtheir insularity .
The Commission therefore recommends tothe Council that the Community
adopt afavourable position intheACP-REC Council ofMinisters onthe
inclusion ofthese new ACP States inthe lists inArticle 155 »

DRAFT
DECISIONNo/81OFTHEACP-EECCOUNCILOFMINISTERS
OF
amendingthelistsoftheleast-developed andislandACPStates
(CommunityproposaltotheACPStates)
THEAGP–EECCOUNCILOFMINISTERS,
HavingregardtotheSecondACP-EECConventionsignedatLome
on31October1979,hereinafterreferredtoas"theConvention",and
inparticularArticle155(4)thereof,

WhereasSaintVincentand.-theGrenadinesispartytotheConventionand
theRepublicofVanuatuaccededtotheConventionon18March1981;
WhereasthesetwoStatescomeintothecategoriesofleast-developed ,and
islandStates,
HASDECIDEDASFOLLOWS:
Article 1
SaintVincentandtheGrenadines and.theRepublicofVanuatuarehereby
addedtothelistsofACPStatescontainedinArticle155(3)(a)and(c)
oftheConvention . '
Article2
ThisDecisionshallenterintoforceimmediatelyinrespectofSaint
VincentandtheGrenadinesandonthedayonwhichtheactofacoession
totheConventionisdepositedinrespectoftheRepublicofVanuatu.
Article3
TheACPStates,theMemberStatesandtheCommunityshallbebound,eachto
theextenttowhichitisconcerned,totakethemeasuresnecessaryto
implementthisDecision.
Doneat ,
FortheACP-EECCouncilofMinister
ThePresident

FINANCIAL RECORD
forthecurrentbudget.
■i.i .1 –,■■■■W
PARTONE:INTERVENTION APPROPRIATIONS
(forexistingand.newprojects)
1.RELEVANTBUDGETHEADINGCODE
a)RevenuePart-TitleI
b)ExpenditurePart-None
2.TITLEOFBUDGETHEADING
a)Ownresources
b)-
3.LEGALBASIS
a)Legalbasisquotedintheaccompanyingtexts
4.DESCRIPTION ,OBJECTIVE(S )ANDJUSTIFICATION OFPROJECT
1
a)Revenue
TheaccessionofSaintVincentandtheGrenadines andthe
RepublicofVanuatutotheConventionmerelyinvolvesa
changefromOCTstatustoACPstatus.
Consequently ,itwillnotresultinanychangeinthe
levies,dutiesandtaxeschargedontheproductsexported
bytheseStatestotheEEC.
b)Expenditure
TheaccessionoftheseStateswillhavenoeffecton
Communityexpenditure .

-2-
5.APPROPRIATIONS (inECU)
a)MujLt^~armual_timetable
Measureapplicablethroughouttheperiodofvalidityof
theSecondACP-EECConvention ofLome.
b)Paitern£f_u^il_i^ajti£n_duringth(3finaneial_^earnowbeing
prepared
None
6.TYPEOPCONTROLTOBEAPPLIED
SystemofcontrolprovidedforintheSecondACP-EECConvention
ofLomeandtheFinancialRegulationapplicabletothefifth
EDF.
PARTTWO:ADDITIONAL DATATOEEPROVIDED FORANEWPROJECT
7.TOTALCOSTOFTHEPROJECTFORTHEWHOLEOFITSEXPECTEDJURATION
None
3.INFORMATION REGARDING STAFFING ANDTHEAPPROPRIATIONS FORADI&STiUVD/.
EXPENDITURE NECESSARY FORTHEIMPLEMENTATION OFTHEPROJECT
TheprojectwillbecarriedoutwiththeCommission'sexistingstaff,.
).FINANCING OFTHEPROJECT
Theprojectaffectsonlytheallocationoftheamountsearmarked
fortheOCTandACPStatesrespectively intheSecondACP-EEC
ConventionofLome,whicharebornebytheMemberStates.There
isthereforenoeffectontheCommunityBudget.