PROPOSAL FOR A COUNCIL DECISION ON THE AMOUNTS OF THE TRANSFERS TO BE PAID TO THE FALKLAND ISLANDS AND FRENCH POLYNESIA UNDER THE SYSTEM FOR THE STABILIZATION OF EXPORT EARNINGS FOR THE YEAR OF APPLICATION 1986 PURSUANT TO DECISION 86/283/EEC
Date: 1987-12-23
Institutions: European Commission
Subjects: Falkland Islands, French Polynesia, Stabex, Sysmin, cooperation policy, development aid, distribution of EU funding, export revenue, vegetable oil, wool

ARCHIVES HISTORIQUES 
DE  LA COMMISSION 

COLLECTION RELIEE DES 
DOCUMENTS "COM" 

COM  (87)707 

Vol.  1987/0326 

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COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

C0MC87)  707  final 

Brussels,  23  December  1987 

PIWPOSAL  FOR  A COUNCIL  DECISION 

on the amounts of the transfers to be paid to the Falkland Islands and 
French  Polynesia under the system for the  stabilization of export 
earnings  for  the  year  of  application  1986  pursuant  to  Decision 
86/283/EEC. 

(presented  by  the  Commission) 

i 
0~ 
,,.u:...(; 

/a  ~  \::.t .. 

C0MC87)  707  final 

1. 

Z. 

3. 

4. 

5. 

6. 

The  clauses of the Council Decision of 30.6.1986 provide for a 
general fund totalling S million ECU  for the joint operation of 
the  STABEX  and  SYSMIN  instruments  during  the  period  of  its 
application. 

A pragmatic solution must thus be found, allowing for individual 
management of each of the two instruments, which do not have the 
same ends. 

Consequently, the Commission in administering ST ABEX and SYSMIN 
divides the available funds  as follows : 

- 1  Million ECU  for SYSMIN 
- 4  Million ECU  for ST ABEX. 

The representatives of the Member States, who met on 6.11.1987 
at  the  ACP  Group  of the  Council  have  noted  the  Commission's 
intention. 

Finally,  the Commission  declares that in order to respect the 
annual  framework  of Stabex,  the  1.800.000  ECU  needed  for the 
Stabex operations for the year of application 1986 in favour of 
the OCT  have been reserved to this end on  18 November  1987. 

An  amount  of  384,789  ECU  to  be  reconstitued  by  the  UK 
Authorities for  Kiribati in  application of the  provisions  of 
Art. 10912 from the Decision of 3016/1986 is deducted from the 
Falkland Islands' transfer rights ( see attached table). 

I.PURPOSE 

1. 

2. 

The  puxpose  of  this  communication  is  to  propose,  that  the 
Counc.U in applicat-1.on of article 91  paragraph 3  of the Council 
Decision  o:f  30  June  1986  on  the  association  of the  overseas 
coun.t:rios and territories with the European Economic Community 
reduces  the  amount  of  the  transfers  to  be  made  to  certain 
overseas countries and territories for the year of application 
1986, because the total sum of the transfers to be paid exceeds 
the amount of the a.vailable resources. 

It has  been  decided  by 

the  Commission, that 
an amount of 4  million ECU  should be allocated to the scheme for 
the stabilization of export earnings to cover all commitments 
made  under the  system  during the  life of the  above mentioned 
Council  Decis.ion.  Thus,  the  available resources  for the  year of 
application  1986  total  1,600,000  ECU,  which  comprises  of the 
800,000 ECU,  the unused instalment for the year of application 
1985, and another 800,000 ECU, the instalment to be used for the 
year of application 1986. 

3. 

DetailS of the transfer requests received from  the  overseas 
countries and territories for the year of application 1986 are 
as follows: 

Q.CI 

Product 

Transfer Basis 
(Arti c L~e  94 '§  2)  (1) 

Falkland 
Islands 

Sheep's or lamb's  wool 

503,034 

not carded or combed 

French 
Polynesia 

Total 

copra oil 

3. 4 s 9,224 

3,962,258 

( 1) Article 94  paragraph 2  reads: 
The dit'ference between the reference level and actual earnings, plus 
2  % for statistical errors and omissions shall constitue the basis of 
the transfer. 

•1. 

l,.s  the  total  of·  the  tra11st'e.r  b.:•.ses,  3,962,258  ECU,  is  higher 
·cha.n  1;30'.J,000 ECLT  at hand.  it ::s necess1:1ry,  as a.  f.;.nal  step, to 
a,kp~ th .:J  1aYasm·o ref'err~d to :-it Article 91  para.g:r-aph  l  of the 
C,:1.mr.il D•=oisL)Il of 30 ,:.Tune  l&f6, 'tlhioh pxov.id.:s '!'or a.dva:i1Ge use 
-::o  ta mwf.e  a.u+.oma.tical.i.-r  ior 12-cch  year,  except  the  last,  of  f:l. 
instalme11t. 
m;-.,.x.urm 
C.:111se'..!• .. e12-l;ly,  tl1e f.iD.anoing a.velleble is increased by ;:.C0,000 
Et;JU,  .25  5'i  of the ins·c,,lment for tl1e year of application 1987, to 
tbis  emmw.t  win  stnl  be 
1,800,000  ECU.  Nonetheless, 
i.:'lsul'f.:Loien·t; tc meet t.1Je aommitm:::its.  to be made upon the s:z;;,;ten 
:for the year of applic.ition 1986. 

~Jf  26  %  cf  the 

foLi.or,dng  year's 

5. 

Thcr.e:1."ore,  a  reduotion  of  tha  two  txans[er  bases  will  be 
.r-equixed,  in  aocordanue  with  the  pxovisions  of  Ai·t=icle  91 
paragraph 2, which xead.s  as :follows : 

"If after the measure referred to in para.gxaph 1, the amo1wt of 
xesou:r-ces  available is st.ill less than the total amount  of the 
tz·a.ns:fex bases fox the same yeaz· of application, the amount ci:f 
ea.oh trans:f ex basis shall be reduced by an amount calcu.Iated by 
applying to t.l1e reference level in question a percentage equal 
to that referred to in Article 98  applicable to the country or 
territory concerned". 

6. 

Taking into consideration the calculations explained above, the 
reduced transfer bases axe as follows: 

Product 

Falkland Islands 

French Polynesia 

Sheep'sor.Lamb's  wool 
not carded or combed 
Copra oil 

TOTAL 

Reduced Transfer 

Basis 
ECU 

118,707 

- 3  084  213 
--L---L---

3,202,920 

7. 

The total amount payable of 3,202,920 ECU  remains higher than 
the  available resources.  Article 91  paragraph  3  o:f  the  same 
Council  Decision  of  30  June  1986  allows  the  Council  on  a 
proposal from the Commission to :further reduce the amounts to be 
transf erxed. 

II. GROUND  FOR  'l,IJB  PE.OP.O.SAI, 

8. 

9. 

The Decision, ·whicl1 t.b.e  Co,.mci.l is asked to take in application 
of Article 9.l  pa1°agx·aph.  3  oi' the Couo.cil  Decision  of  30 June 
tl1e  asso,.Jia:cio:a  c:f  the  overseas  countries  and 
1986  on 
texritoxies t,;ritl1  tb.e  Eu:copea.v  EconomJc  Community should take 
into account the resov.Tces av aila.ble for the year of application 
1986, and ti1e  equal ·i;~cea:cn:sn-t  of the ti10 beneficiaxy overseas 
countries and te.rritories concerned. 

It is therefore pToposed, that the ts,10 transfer bases be further 
reduced by the percentage d.if.fe:cenoe between the total of the 
sums  to  be  paid,  :followi11g  the  application  of  Article  91 
paragxaph  2  o:f  the  above  mentioned Council Decision,  and  the 
amount  ol'  the  fund,  wld.oh  stands  at  1,800,000  ECU.  This 
percentage d:L:fference has been calculated to 43.8013 %. 

10. 

Following this final reduction, the definitive transfex rights 
to be paid will be as follows : 

QCT 

Product 

Falkland Islands 

French Polynesia 

Sheep's or lamb's wool 
not carded ox combed 
Copra oil 

TOTAL 

III.PROPOSAL 

Amount  of 
transfer 
ECU 
66,712 

1,733,288 

1,800,000 

11. 

In  the  light  of  the  foregoing,  the  Commission  requests  the 
Council  to  take  the  decision, 
the  proposal  for  which  is 
contained in the Annex. 

PROPOSAL  FOR  A COUNCIL DECISION OF 

on the amcmuts of the txan.sfers to be vaid to the Falkland Islands and 
French  Po.1ynesia  under  the  system  for the  stabilization  of export 
ea1:n.ings  for  the  year  o:f  application  1986  pursuant  to  Deci-sion 
861283/EEC. 

THE  COUNCIL OF THE  EUROPEAN COMMUNITIES, 

Having  regard  to  the  Treaty  establishing  the  European  Economic 
Community, 

Having  regard  to  the  Internal  Agreement  on  the  financing  and 
administration of Community aid signed in Brussels on  19 Februrary 
1985 (hereinafter referred to as the "Internal Agreement"), 

Having regard to the Council Decision 86/283/EEC of 30 June 1986 on 
the  assooiation of the overseas countries and territories with the 
European Economic Community, and in particular Article 91 paragraph 3 
thereof, 

Having regard to the proposal from the Commission, 

Whereas,  in  accordance  with  Articles  88,  90,  and  91  of  the  above 
mentioned Decision, an amount of 1,800,000 ECU  has been allocated to 
cover all the commitments made under the system for the stabilization 
of export earnings for the year of application 1986 in favour of the 
overseas countxies and terxitories; 

Whereas the Falkland Islands have presented a transfer request under 
the system fox the year of application 1986 in respect of sheep's or 
lamb's  wool  not  caxded  ox  combed,  the  transfer  basis  for  which, 
calculated by vixtue of Article 94 paragraph 2 of the above mentioned 
Decision, and reduced in accordance with Article 91 paragraph 2 of the 
same Decision, amounts to 118,'lO'l ECU; 

Whereas French Polynesia has likewise presented a transfer request 
under the system for the year of application 1986 in respect of copra 
oil, the transfer basis for which, calculated by vixtue of Article 94 
paragraph 2 of the above mentioned Decision, and xeduced in accordance 
with Axticle 91 paragraph 2  of the same Decision amounts to 3,084,213 
ECU; 

Whereas  the  total  sum  of  tl1e  tr:ro  above  mentioned  tra11sfexs  is 
3,202,920 ECU, whi.cll exceeds the 1,800,000 ECU  available for the year 
of application 1986 ; 

Whereas it will thus be necesr.;a:cyto:i.~educe fuxthexthetxansfex bases 
by an  amount representing 43.8013  %. 

HAS  DECIDED  AS FOLLOWS  : 

Axticle 1 

The transfer rights due to the Falkland Islands to compensate fox the 
loss  of export  earnings  from  sheep's  o.r  lamb's  wool  not  carded  or 
combed during the year of application 1986, which amount to 118,707 
ECU,  should  be reduced  by  43.8013  %,  resulting thus  in a  definitive 
payment  of 66,712 ECU. 

Article 2 

The transfer rights due to French Polynesia to compensate fox the loss 
of export earnings from copra oil during the year of application 1986, 
which  amount  to  3,084,213  ECU  should  be  reduced  by  43.8013  %, 
resulting thus in a  definitive payment of 1,733,288 ECU. 

The  Decision shall take effect on the day of its adoption. 

Article 3 

Done  at Brussels 

Fox the Council 
The  President 

Jabl~_Showing_PrOQOS~d_Reductions_To_Transfers_Received_From_The_Overseas_Countries_And_Territories_Foc_The_Ye~r  Of 
-------------------------------------------------------------------------------------------------------------------
Ao □ lication year.12~~-
-•~•-•••••••••••--

(Art.  91  of  the  Council  Decision  of  30  June  1986  on  the  association  of  the  overseas  countries  and  territories  with  the 

European  Economic  Community) 

Arr:ts  in  ECU 

ANNEX 

Reference  Level 
1982  - 1985 
( A) 

EEC  Destinations 

Transfer  Basis 
-

. 

( B) 

( 2) 
Reduced  Transfer  Basis  Further  Redt..ction 
(Art.91  §2) 
(B-6¾  of  A=C) 

(43.8013¾  of  C) 
( D) 

-

6,405,456 

503,034 

(1) 

118,707 

51,995 

ina l  • Transfe~ 
I 
eas is 
( C-D) 

66,712 

---1 

3,459,224 

3,084,213 

1,350,925 

1,733,288 

I 
I 

6,250,189 

-

Falkland  Islands 
- Sheep's  or,  lamb's 

wool 

.. 
' 

.  .. 

French  Polynesia 

- Copra  Oil 

Totals 

3,962,258 

3,202,920 

. 

1,402,920  L 1,800,C00  I 

I 
I 

(1)  Amoun\  qf  3~4~789  ECU  to  be  reconstitued  by  UK  Authorities  ,n  application  of  the  provisions  from  Art.  109/2  of  the  Decision 

for  K1r1bat1  1s  deducted  from  Falkland  Islands  Transfer  Basis  of  initially  887,823  ECU. 

(2)  3,202,920  - 1,800,000  =  1,402,920 

1,402,920  X  100 
3,202,920 

=  43.8013  i.