Proposal for a Council Regulation (EC) on the conclusion of a Protocol setting out the fishing opportunities and financial contribution provided for in the Agreement between the European Community and the Republic of Madagascar on fishing off Madagascar for the period from 21 May 1998 to 20 May 2001
Date: 1998-06-25
Institutions: European Commission
Subjects: Madagascar, deep-sea fishing, financial compensation of an agreement, fishing agreement, fishing permit, fishing rights, protocol to an agreement

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 25.06.1998 
COM(1998) 390  final 

98/0217 (CNS) 

Proposal for a 

COUNCIL DECISION 

ON THE CONCLUSION OF AN AGREEMENT IN THE FORM OF AN EXCHANGE OF 
LETTERS CONCERNING THE PROVISIONAL APPLICATION OF THE PROTOCOL 
SETTING OUT THE FISHING OPPORTUNITIES AND FINANCIAL COMPENSATION 
PROVIDED FOR IN THE AGREEMENT BETWEEN THE EUROPEAN COMMUNITY 
AND THE REPUBLIC OF MADAGASCAR ON FISHING OFF MADAGASCAR FOR 
THE PERIOD FROM 21  MAY 1998 TO 20 MAY 2001 

Proposal for a 

COUNCIL REGULATION TEC) 

ON THE CONCLUSION OF A PROTOCOL SETTING OUT THE FISHING 
OPPORTUNITIES AND FINANCIAL CONTRIBUTION PROVIDED FOR IN THE 
AGREEMENT BETWEEN THE EUROPEAN COMMUNITY AND THE REPUBLIC 
OF MADAGASCAR ON FISHING OFF MADAGASCAR FOR THE PERIOD FROM 21 
MAY 1998 TO 20 MAY 2001 

(presented by the Commission) 

EXPLANATORY MEMORANDUM 

The  Protocol  to  the  Fisheries  Agreement  between  the  European  Community  and 

Madagascar expires on 20 May  1998. A new Protocol  was initialled  by both parties on 5 

March  1998 fixing the technical and financial conditions governing the fishing activities of 

Community  vessels  in Malagasy  waters during the period from 21 May  1998 to 20 May 

2001. 

The Commission proposes, on this basis, that the Council adopt: 

-  by Decision, the draft  Agreement in the form of an exchange of letters concerning the 

provisional application of the new Protocol pending its definitive entry into force, 

-  by  Regulation,  the  Protocol  setting  out  the  fishing  opportunities  and  the  relevant 

financial  and  technical  conditions  agreed  between  the  European  Community  and 

Madagascar for the period from 21 May 1998 to 20 May 2001. 

p:\accords\rnadag\98\cn.doc 

PROPOSAL FOR  A 

COUNCIL DECISION 

ON THE CONCLUSION OF AN AGREEMENT IN THE FORM OF AN EXCHANGE OF 
LETTERS CONCERNING THE PROVISIONAL APPLICATION OF THE PROTOCOL 
SETTING OUT THE FISHING OPPORTUNITIES AND FINANCIAL COMPENSATION 
PROVIDED FOR IN THE AGREEMENT BETWEEN THE EUROPEAN COMMUNITY 
AND THE REPUBLIC OF MADAGASCAR ON FISHING OFF MADAGASCAR FOR 
THE PERIOD FROM 21 MAY 1998 TO 20  MAY 2001 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, 

Having regard to the Agreement between the European Community and the Republic of 
Madagascar on fishing off Madagascar1, and in particular Article 14 thereof, 

Having regard to the proposal from the Commission, 

Whereas, under Article  14 of the  above Agreement, the Community and the Republic of 

Madagascar  held  negotiations  to determine  amendments  or  additions  to be made to  the 

Agreement at the end of the period of application of the Protocol to the Agreement; 

Whereas,  as  a  result  of  those  negotiations,  a  new  Protocol  was  initialled  on  5  March 

1998; 

Whereas, under  this  Protocol,  Community  fishermen  enjoy  fishing  opportunities  in  the 

waters  falling  within  the  sovereignty  or jurisdiction  of the Republic  of Madagascar  for 

the period from 21 May  1998 to 20 May 2001; 

Whereas, in order to avoid  interruption  of  fishing  activities by Community  vessels, it is 

essential  that  the  said  Protocol  be  approved  as  quickly  as  possible;  whereas  both 

1 OJL73,  18.3.1986, p. 26. 

p:\accords\madag\98\en.doc 

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Contracting Parties have therefore  initialled  an Agreement  in the form  of an exchange of 

letters  providing  for  the  provisional  application  of  the  initialled  Protocol  from  the  day 

following the date of expiry of the Protocol previously in force; 

Whereas the Agreement in the form of an exchange of letters should be approved  subject 

to a definitive decision under Article 43 of the Treaty; 

Whereas  the  method  for  allocating  the  fishing  opportunities  among  the  Member  States 

should be defined  on the basis of the traditional  allocation of fishing  opportunities under 

the fisheries  agreement, 

HAS DECIDED AS FOLLOWS: 

Article 1 

The  Agreement  in  the  form  of  an  exchange  of  letters  concerning  the  provisional 

application  of  the  Protocol  setting  out  the  fishing  opportunities  and  the  financial 

compensation provided  for in the Agreement between the European Community  and the 

Republic of Madagascar on fishing  off Madagascar  for the period from 21 May  1998 to 

20 May 2001, is hereby approved on behalf of the Community. 

The  text  of  the  Agreement  in  the  form  of  an  exchange  of  letters  and  the  Protocol  are 

attached to this Decision. 

Article 2 

The  fishing  opportunities  fixed  in  the  Protocol  shall  be  allocated  among  the  Member 

States as follows: 

a) 

Tuna seiners: 

Spain: 

22 

vessels 

France 

20 

vessels 

Italy: 

vessels 

b) 

Surface  longliners: 

Spain: 

20 

vessels 

France: 

vessels 

Portugal: 

4 

vessels 

If  licence  applications  from  these  Member  States  do  not  cover  all  the  fishing 

opportunities  fixed  by the Protocol,  the Commission  may take into consideration  licence 

applications from any other Member State. 

Article  3 

The President of the Council  is hereby authorised to designate the persons  empowered  to 

sign the Agreement  in order to bind the Community. 

Done at 

For the Council 

The President 

p:\accords\madag\98\en.doc 

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AGREEMENT 

IN THE FORM OF AN EXCHANGE OF LETTERS CONCERNING THE 
PROVISIONAL APPLICATION OF THE PROTOCOL SETTING OUT THE FISHING 
OPPORTUNITIES AND FINANCIAL COMPENSATION  PROVIDED FOR IN THE 
AGREEMENT  BETWEEN THE  EUROPEAN  COMMUNITY  AND THE  REPUBLIC 
OF MADAGASCAR  ON FISHING OFF MADAGASCAR FOR THE  PERIOD FROM 21 
MAY 1998 TO 20 MAY 2001 

A.  Letter from the Government of Madagascar 

Sir, 

With reference  to the Protocol initialled on 5 March  1998 setting out fishing opportunities 

and  financial  compensation  for  the period from 21  May  1998 to 20 May 2001, I have the 

honour to inform you that the Government of Madagascar is prepared to apply the Protocol 

on  a  provisional  basis  with  effect  from  21  May  1998,  pending  its  entry  into  force  in 

accordance  with  Article  7  of  the  said  Protocol,  provided  the  European  Community  is 

disposed to do the same. 

This is on the understanding that the first annual instalment of the financial compensation 

specified in Article 2 of the Protocol is paid by 30 October 1998. 

I should  be obliged  if you  would  confirm  the  European  Community's  agreement  to such 

provisional application. 

Please accept, Sir, the assurance of my highest consideration. 

For the Government 

of the Republic of Madagascar 

p :\accords\madag\98\en. doc 

B.  Letter from the Community 

Sir, 

I  have  the  honour  to  acknowledge  receipt  of  your  letter  of  today's  date, which  reads  as 

follows: 

"With reference to the Protocol initialled on 5 March  1998 setting out fishing opportunities 

and financial compensation  for the period from 21  May  1998 to 20 May 2001, I have the 

honour to inform you that the Government of Madagascar is prepared to apply the Protocol 

on  a  provisional  basis  with  effect  from  21  May  1998,  pending  its  entry  into  force  in 

accordance  with  Article  7  of  the  said  Protocol,  provided  the  European  Community  is 

disposed to do the same. 

This is on the understanding that the first annual instalment of the financial compensation 

specified in Article 2 of the Protocol is paid by 30 October 1998. 

I  should  be  obliged  if you would  confirm  the  European  Community's  agreement  to  such 

provisional application." 

I have  the  honour  to  confirm  the  European  Community's  agreement  to  such  provisional 

application. 

Please accept, Sir, the assurance of my highest consideration. 

on behalf of 

the Council of the European Union, 

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PROPOSAL FOR A 

COUNCIL REGULATION (EC) 

ON THE CONCLUSION OF A PROTOCOL SETTING OUT THE FISHING 
OPPORTUNITIES AND FINANCIAL CONTRIBUTION PROVIDED FOR IN THE 
AGREEMENT BETWEEN THE EUROPEAN COMMUNITY AND THE REPUBLIC 
OF MADAGASCAR ON FISHING OFF MADAGASCAR FOR THE PERIOD FROM  21 
MAY 1998 TO 20 MAY 2001 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 

Article  43  in  conjunction  with  the  first  sentence  of  Article  228(2)  and  the  first 

subparagraph of Article 228(3) thereof, 

Having regard to the proposal from the Commission, 

Having regard to the opinion of the European Parliament1, 

Whereas, pursuant to the Agreement between the European Community and the Republic 

of  Madagascar  on  fishing  off  Madagascar2  the  two  Parties  conducted  negotiations  to 

determine  the  amendments  or  additions  to be  made  to  the  Agreement  at  the  end  of  the 

period of application of the Protocol to the Agreement; 

Whereas,  as  a  result  of  these  negotiations,  a  new  Protocol  setting  out  the  fishing 

opportunities  and  financial  compensation  provided  for  in  the  said  Agreement  for  the 

period from 21 May  1998 to 20 May 2001  was initialled on 5 March 1998; 

Whereas it is in the Community's interest to approve the said Protocol; 

1  OJ 

2  OJL73,  18.3.1986, p. 26 

\\pollux\poolb3\accords\madag\98\en.doc 

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Whereas  the  method  for  allocating  the  fishing  opportunities  among  the  Member  States 

should be defined  on the basis of the traditional  allocation of fishing opportunities under 

the fisheries agreement, 

HAS ADOPTED THIS REGULATION: 

Article J 

The  Protocol  setting  out  the  fishing  opportunities  and financial compensation  provided 

for in the Agreement between the European Community and the Republic of Madagascar 

on  fishing  off  Madagascar  for  the period from 21 May  1998 to 20 May 2001  is hereby 

approved on behalf of the Community. 

The text of the Protocol is attached to this Regulation. 

Article 2 

The  fishing  opportunities  fixed  in  the  Protocol  shall  be  allocated  among  the  Member 

States as follows: 

a) 

Tuna seiners: 

Spain: 

22 

vessels 

France 

20 

vessels 

Italy: 

vessels 

b) 

Surface longliners: 

Spain: 

20 

vessels 

France: 

Portugal: 

vessels 

vessels 

If  licence  applications  from  these  Member  States  do  not  cover  all  the  fishing 

opportunities fixed by the Protocol, the Commission may take into consideration  licence 

applications from any other Member State. 

p:\accords\madag\98\cn .doc 

8-

Article 3 

The President of the Council  is hereby authorised  to designate the persons empowered  to 

sign the Protocol in order to bind the Community. 

Article 4 

This  Regulation  shall  enter  into  force  on  the  third  day  following  its  publication  in  the 

Official  Journal of the European Communities. 

This  Regulation  shall  be  binding  in  its  entirety  and  directly  applicable  in  all  Member 

States. 

Done at 

For the Council 

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PROTOCOL 

SETTING OUT THE FISHING OPPORTUNITIES AND FINANCIAL COMPENSATION 
PROVIDED FOR IN THE AGREEMENT BETWEEN THE EUROPEAN  COMMUNITY 
AND THE  REPUBLIC OF MADAGASCAR ON FISHING OFF MADAGASCAR FOR 
THE PERIOD FROM 21  MAY 1998  TO 20 MAY 2 0 01 

Article 1 

Pursuant  to  Article  2  of  the  Agreement,  licences  authorising  fishing  in  Madagascar's 

fishing  zone  shall be  granted  to 45  freezer  tuna  seiners  and  30  surface  longliners  for  a 

period of three years beginning on 21 May 1998. 

In  addition,  at  the  request  of  the  Community,  authorisation  may  be  granted  for  other 

categories  of  fishing  vessel  under  conditions  to  be  laid  down  in  the  Joint  Committee 

referred to in Article 9 of the Agreement. 

Article 2 

The amount of the  contribution referred  to in Article 7 of the  Agreement shall be fixed at 

ECU 304 000  for  each of the three years of the Protocol, the first instalment  to be paid 

not  later than  30 October  1998 and the two remaining  instalments before  20 May  1999 

and  20  May  2000. This  amount  is to  cover  an  annual  catch  of 9 500 tonnes  of tuna  in 

Malagasy waters; if the  tuna caught by Community vessels in Madagascar's fishing  zone 

exceeds  this  weight,  the  amount  referred  to  above  shall  be  increased  by  ECU  50  per 

additional tonne. 

The financial compensation shall be paid into an account to be indicated by the Malagasy 

authorities, in the name of the Public Treasury. 

p:\accorcis\madag\()8\en.doc 

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Article 3 

1.  During  the  period  referred  to  in  Article  1,  the  Community  shall  contribute  an 

additional  ECU  1 368 000 to financing  the measures  described  below, allocated  as 

follows: 

(1) 

ECU  168 000 for  Malagasy scientific  programmes to improve knowledge of 

fisheries  resources and ensure sustainable management thereof. 

At the request of the Government of Madagascar, this contribution may take 

the  form  of  a contribution  to  the  cost  of  international  meetings  to  improve 

knowledge and the management of fishery resources. 

(2) 

ECU  600 000  towards  a  system  of  fisheries  monitoring,  checks  and 

surveillance. 

« 

(3) 

ECU 300 000 for the financing of study grants and training courses. 

(4) 

ECU 125 000 for assistance in the development of traditional fisheries. 

(5) 

ECU  175 000  for  the  Ecole  Nationale  de  l'Enseignement  Maritime  de 

Majunga (ENEM). 

2.  The  competent  Malagasy  authorities  shall  send  the  Commission  a detailed  annual 

report on the use of the funds  allocated to the measures provided  for in paragraph 1 

and on the implementation  of these measures and the results achieved not later than 

three  months  after  the  anniversary  date  of the  Protocol.  The  Commission  reserves 

the  right  to  request  additional  information  from  the  Ministry  responsible  for 

fisheries  and  to  review  the  payments  concerned  in  the  light  of  the  actual 

implementation of the measures. 

3.  The  amounts  allocated  to  the  above  measures  shall  be  made  available  to  the 

Ministry  responsible  for  fisheries  and paid  as they  are used  into the bank  accounts 

indicated by it. 

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-11 

Article  4 

Should  the  Community  not  make  the  payments  referred  to  in  Articles  2  and  3  of  this 

Protocol, the Fisheries Agreement may be suspended. 

Article  5 

The  Annex  to  the  Agreement  between  the  European  Community  and  the  Republic  of 

Madagascar on  fishing  off  Madagascar  is hereby repealed  and replaced  by the  Annex  to 

this Protocol. 

Article  6 

This Protocol shall enter into force on the date of its signature. 

It shall apply from 21 May  1998. 

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ANNEX 

CONDITIONS GOVERNING  FISHING ACTIVITIES BY 
COMMUNITY VESSELS IN MADAGASCAR'S FISHING ZONE 

1.  Application for and issue of licences 

The  procedure  for  applications  for,  and  the  issue  of, 
Community vessels to fish in Malagasy water shall be as follows. 

licences  authorising 

(1) 

Through  its  representative  in  Madagascar,  the  European  Commission  shall 
present to the Malagasy authorities: 

-  at  least  20 days  before  the beginning  of the  desired  period  of validity,  a 
licence  application  completed  by the shipowner  in respect  of each vessel 
for which authority to fish under the Agreement is requested; 

an  annual  application  for  prior  authorisation  to  enter  Madagascar's 
territorial  waters; such  authorisation  shall be valid  for the duration  of the 
licence. 
Licence applications must be made on the  form  provided  by  Madagascar 
for  this  purpose,  in  accordance  with  the  specimen  given  in Appendix  1; 
they  shall be accompanied by proof of payment  of the advance due from 
the shipowner. 

(2) 

Licences shall be issued for a specific vessel and shall not be transferable. 

However,  in  the  event  of force  majeure, a  licence  for  one  vessel  may  be 
replaced by a new licence for another vessel of similar characteristics  should 
the  European  Commission  so  request.  The  owner  of  the  vessel  being 
replaced  shall  return  the  cancelled  licence  to  the  Malagasy  Ministry  with 
responsibility  for  sea  fisheries  via the  Delegation  of the Commission  of  the 
European Communities in Madagascar. 

The new licence shall indicate: 

- 

- 

the date of issue, 

the fact that it cancels and replaces the licence of the previous vessel. 

The  fee  provided  for  in Article  5 of the Agreement  shall not be  due  for  the 
remaining period of validity. 

p:\accords\madagV)8\en.doc 

13 

(3) 

(4) 

The  Malagasy  authorities  shall  send  licences  to  the  representative  of  the 
Commission of the European Communities in Madagascar. 

Licences  must  be  kept  on  board  at  all  times;  however,  on  receipt  of 
notification  of payment  of  the  advance  sent  to  the  Malagasy  authorities by 
the  European  Commission,  vessels  shall  be  entered  on  a  list  of  vessels 
authorised  to  fish,  which  shall  be  sent  to  the  Malagasy  authorities 
responsible  for  fisheries  inspection.  A  copy  of  the  said  licence  may  be 
obtained  by  fax  pending  arrival of the licence itself; that copy shall be kept 
on board. 

(5) 

Owners of tuna boats must be represented  by an agentin Madagascar. 

(6) 

The Malagasy authorities shall give notice, before the Agreement enters into 
force,  of  the  arrangements  for  payment  of  fees  and  advances,  including 
information  on bank accounts. 

2.  Validity of licences and payment of fees 

(1 ) 

Licences shall be valid for one year. They shall be renewable. 

(2) 

(3) 

The  fee  shall  be  ECU  20  per  tonne  caught  in  waters  under  Malagasy 
jurisdiction.  Licences  shall  be  issued  on  advance  payment  to  the  Malagasy 
Treasury  of  an  annual  sum  of  ECU  2 000 per  tuna  seiner,  ECU  1 100 per 
surface  longliner of more than  150 GRT and ECU 800 per surface  longliner 
of 150 GRT or less. 

At the end of each calendar year, the European Commission  shall draw up a 
final statement  of the fees  due in respect  of the fishing  year on the basis of 
catch  declarations  completed  by  each  shipowner  and  confirmed  by  the 
scientific  institutes  competent  for  verifying  catch  statistics  such  as Orstom 
(Office  of  Overseas  Scientific  and  Technical  Research),  IEO  (Spanish 
Océanographie  Institute)  or  USTA  (Antsiranana  Tuna  Statistical  Unit)  and 
transmitted  by  the  Member  States  of  the  European  Community.  The 
statement  shall  simultaneously  be  notified  to  the  Malagasy  sea  fisheries 
authorities  and  the  shipowners.  Shipowners  shall  make  any  additional 
payments to the Malagasy fisheries authorities within 30 days of  notification 
of the final statement. 

However, where the final statement is less than the advance referred  to at (2) above, 
the balance shall not be recoverable by the shipowner. 

p:\accords\madag\98\en.doc 

14 

3.  Declaration of catches 

(1 ) 

Vessels authorised  to fish in Madagascar's  fishing zone under the Agreement 
shall  notify  their catch  statistics  to the sea fisheries authorities, with  a copy 
for  the  Delegation  of  the  Commission  of  the  European  Communities  in 
Madagascar, in accordance with the following procedure. 

longliners  shall  complete  a  fishing  form 
Tuna  seiners  and  surface 
corresponding  to  the  specimen  given  in  Appendix  2  for  each  period  spent 
fishing  in  Madagascar's  fishing  zone.  The  forms  shall  be  sent  to  the 
competent  authorities  referred  to  above  not  later  than  30  September  each 
year. 

Forms must be completed  legibly and be signed by the master of the vessel. 
In  addition,  they  must  be  completed  by  all  vessels  which  have  obtained  a 
licence, even if they have not  fished. 

(2) 

In  the  event  of  failure  to  comply  with  these  provisions,  the  Malagasy 
authorities  reserve  the  right  to  suspend  the  licence  of  the  offending  vessel 
until  the  formalities  have been  completed.  In  such  cases, the  Delegation  of 
the  Commission  of  the  European  Communities  in  Madagascar  shall  be 
informed  without delay. 

4.  Communication  of information 

The  captain  shall  give notification,  at  least  24 hours  in  advance, by  radio, telex  or 
fax to the coastal radio station at Antsiranana, and by fax (No (261 20) 22 41655) to 
the Ministry responsible for fisheries, of his intention to bring his vessel into or take 
it out  of Madagascar's  fishing  zone. When notifying  his intention  to leave, he shall 
also  notify  the  estimated  catches  taken  during  the  time  his  vessel  has  spent  in 
Madagascar's fishing  zone. The radio frequency  and the telex and fax numbers to be 
used will be indicated on the licence. 

5.  Observers 

At the request  of the Malagasy  authorities, tuna seiners and  surface  longliners  shall 
take  an  observer  on  board  who  shall  be  treated  as  an  officer.  The  time  spent  on 
board  by the observer  shall  be fixed by the Malagasy  authorities, but,  as a general 
rule,  it  should not  exceed  the time required  to carry out his duties. Once on board, 
the observer will: 

-  observe the fishing activities of the vessels, 

-  verify  the position of vessels engaged in fishing operations, 

-  perform biological sampling in the context of scientific programmes, 

-  note the fishing gear used, 

p: \accords\madag\98\en .doc 

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-  verify the catch data for Madagascar's zone recorded in the logbook. 

While on board, the observer: 

-  must take all  appropriate  steps to ensure that  the conditions  under which 
he is taken on board and his presence on board do not interrupt or hamper 
fishing  activities, 

-  must respect the material and equipment on board  and the  confidentiality 

of all documents belonging to the said vessel. 

The conditions governing his embarkation shall be agreed between the shipowner or 
his  agent  and the Malagasy  authorities. The shipowner  shall, via his agent, make a 
payment of ECU  10 to the Malagasy Government for each day spent by an observer 
on  board  a tuna  seiner  or  surface  longliner.  If the  shipowner  is  unable  to  take  the 
observer aboard  and put him off at a Malagasy port agreed by common  accord  with 
the  Malagasy  authorities,  the  shipowner  shall  bear  the  cost  of  taking  the  observer 
aboard and putting him ashore. 

If  the  observer  is  not  present  at  the  time  and  place  agreed  and  during  the  twelve 
hours  following  the  time agreed,  the  shipowner  shall  be automatically  absolved  of 
his obligation to take the observer on board. 

6.  Employment of seamen 

At  least  six  Malagasy  seamen  shall  be  employed  by  the  fleet  of  tuna  seiners  and 
surface longliners for the duration of the fishing season. 

In the event that these seamen are not so employed, the shipowners shall pay the  full 
amount of the wages of the seamen or seaman not employed; this sum is to be used 
for  the  training  of  Malagasy  fishermen  and  shall  be  paid  into  an  account  whose 
number shall be notified  to the agents. 

The  employment  contracts  for  the  seamen  shall  be  concluded  between  the  agents 
and the seamen concerned. 

7.  Fishing zones 

Community  vessels shall have access to all waters under Madagascar's jurisdiction 
outside the coastal zone often  nautical miles. 

Should  the  Malagasy  authorities  decide  to  install  experimental  fish  concentration 
devices (FCDs), they  shall  inform  the European Commission  and the agents of the 
shipowners concerned, indicating the geographical position of the devices. 

From  the  30th  day  after  such notification,  it  shall be  forbidden  to  approach  within 
1.5  nautical  miles of the FCDs. The dismantling  of any FCD must be  immediately 
notified  to the same parties. 

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8.  Use of port facilities 

The  authorities  of  Madagascar  and  the  beneficiaries  of  the  Agreement  shall  lay 
down the conditions  for using port  facilities. 

9. 

Inspection and monitoring of fishing activities 

Vessels  holding  a licence shall permit  and assist  any Malagasy  official  responsible 
for the inspection and monitoring of fishing activities to board the ship and carry out 
his duties. 

10.  Transshipment 

When fish are transshipped, freezer tuna seiners shall hand over the fish which they 
do not intend to keep to a company or body nominated by the Malagasy  authorities 
in charge of  fisheries. 

11.  Provision of services 

Community  vessel  owners  operating  in  the  Malagasy  fishing  zone  shall  practise 
positive discrimination  in favour of Malagasy services (careening, handling,  fuel-oil 
bunkering, consignment, etc.). 

12.  Boarding 

( 1 ) 

Transmission of information 

The Malagasy Ministry responsible  for  fisheries  shall inform  the Delegation 
and  the  flag  State,  within  48  hours,  of  the  boarding  of  any  fishing  vessel 
flying  the  flag  of  a  Member  State  of  the  Community  fishing  under  the 
Fisheries Agreement  in Madagascar's fishing zone and shall transmit  a brief 
report  of  the  circumstances  and  reasons  leading  to  such  boarding.  The 
Delegation  and  the  flag  State  shall  be  kept  informed  of  any  proceedings 
initiated and penalties imposed. 

(2) 

Settlement of boarding 

in  accordance  with  the  law  on  fisheries  and  the  relevant  regulations, 
infringements  may be settled: 

-  either  by  composition,  in  which  case  the  amount  of  the  fine  shall  be 
laying  down 
in  accordance  with  Malagasy  legislation 

determined 
minimum and maximum figures; 

-  or by legal proceedings, if no composition is possible, in accordance with 

Malagasy law. 

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-  17-

(3) 

The vessel  shall be released and its crew authorised to leave the port: 

-  either  as  soon  as  the  obligations  imposed  by  the  composition  procedure 
have been completed on presentation of the receipt for the settlement, or 

on  presentation  of  proof  that  a  bank  security  has  been  lodged,  pending 
completion of the legal proceedings. 

p :\accords\madag\98\cn. doc 

- 1 8-

APPENDIX  1 

APPLICATION  FORM  FOR  A  FISHING  LICENCE 

1. New  application  or  renewal: 

2.  Name  and  flag  of  vessel: 

3.  Period  of  validity:  from 

to 

4.  Name  of  shipowner: 

5.  Address  of  shipowner: 

6. Name  and  address  of  charterer  (if  different  from  4  and  5):.... 

7.  Name  and  address  of  official  representative  in. Madagascar: 

8. Name  of  captain: 

9. Type  of  vessel: 

10.  Registration  number: 

11.  External  identification  of  vessel: 

12.  Port  and  country  of  registration: 

13.  Overall  length  and  breadth  of  vessel: 

14.  Gross  and  net  tonnage  of  vessel: 

15.  Make  and  power  of  main  engine: 

16.  Freezer  capacity  (t/d): 

17.  Hold  capacity  (m3): 

18.  Radio  call  sign: 

19.  Other  communications  equipment  (telex,  fax): 

20.  Fishing  appliances: 

4 9 

21.  Number  of  crew  broken  down  by  nationality: 

22.  Number  of  fishing  licence  (in  the  case  of  a renewal,  attach  licence):. 

I,  the  undersigned, 
undertake  to  comply  therewith. 

,  certify  that  the  above  information  is  correct  and 

Stamp  and signature  of  shipowner: 

Date: 

Zo 

FINANCIAL STATEMENT 

!.  TITLE  OF  OPERATION:  New  Protocol  selling  out  the  fishing  opportunities  and 

financial  compensation under the EC/Madagascar Fisheries Agreement 

2.  BUDGET HEADING INVOLVED: B7-8000 

3.  LEGAL  BASIS: Article  43 of the  Treaty,  in  conjunction  with  Article  228(2)  and 

the first  subparagraph of Article 228(3) thereof 

EC/Madagascar  Agreement  (OJ  L  73,  18.3.1986).  Council  Regulation  (EEC)  No 
780/86 

4.  DESCRIPTION OF OPERATION: 

4.1.  General Objective: Protocol and Annex for three years 

4.2. 

Period covered and arrangement for renewal or extension 

Period: 21.5.1998 to 20.5.2001 

Renewal arrangements: negotiation prior to the expiry of the Protocol 

5.  CLASSIFICATION  OF EXPENDITURE OR REVENUE: 

5.1.  ÇE 

5.2.  DA 

5.3.  Type of revenue involved 

6.  TYPE OF EXPENDITURE 

-  Other:  financial  compensation  paid  to  a  non-member  country  in  exchange  for 

fishing opportunities granted by it and set out in the Protocol. 

p:\accords\rnadag\98\fifin-en.doc 

7. 

FINANCIAL  IMPACT 

7.1.  Method of calculating total cost of operation (definition  of unit costs) 

See Annex to the Protocol 

7.2. 

Itemised breakdown of cost 

Breakdown 

1998 

1999 

2000 

TOTAL 

in current ECU million 

(current ecus) 

Financial 
referred to in Article 2 

compensation 

Allocations under Article 3 

0.304 

13681 

0.304 

0304 

TOTAL 

1.672 

0.304 

0304 

0.912 

1368 

2.280 

73. 

Schedule for proposed new operation 

in current ECU million 

Commitment appropriations 

Payment appropriations 

1998 

1999 

2000 

1998 

1.672 

0.988 

1999 

0.304 

0.646 

2000 

0304 

0.646 

TOTAL 

0.988 

0.646 

0.646 

TOTAL 

2.280 

0.988 

0.646 

0.646 

2.280 

scientific  and technical programmes: 
fisheries  surveillance: 
training: 
traditional  fisheries: 
ENEM: 

ECU  168 000 
ECU 600 000 
ECU 300 000 
ECU  125 000 
ECU  175 000 

Total additional  funding  excluding financial  compensation should be paid in the following  instalments: 

50% in  1998, 25% in  1999 and 25% in 2000. 

p:\accords\madag\98\fifin-en.doc 

23 

8.  FRAUD PREVENTION MEASURES; RESULTS OF MEASURES TAKEN 

Since  financial  compensation  is  paid  by  the  Community  for  services  rendered 
(fishing  opportunities),  it  is used  by  the  authorities  of the  non-member  country  as 
they  think  fit,  provided  they  report  to  the  Community,  as  provided  for  in  each 
Agreement, on the use of certain funds (contribution to the scientific programme). In 
the case of Madagascar, all the measures referred  to in Article 3 of the Protocol  are 
subject  to  an  annual  report  on  implementation  and  results  achieved;  the  payments 
can be reviewed in the light of the actual implementation of the various measures. 

The Agreement also provides for Community vessels to submit catch declarations. 

9.  ELEMENTS OF COST-EFFECTIVENESS  ANALYSIS 

Category 

1994-1997 

Fishing 
opportunities 
(GRT) 

Utilisation rate 

1998-2001 

Fishing 
opportunities 
(vessels) 

Tuna seiners: 

42 vessels 

Surface longliners 

16 

91% 

73% 

45 vessels 

30 vessels 

In terms of the benefits  of this tuna Agreement, the unit cost of each  tonne of tuna 
caught is ECU 80 payable by the Community  and ECU 20 payable by shipowners. 
The  average  commercial  value  of  a  tonne  of  tuna  is  ECU  1  000.  It  has  not  been 
possible to change this breakdown, following the discussion  in the external group of 
the  Council,  when  the  Member  States  with  fisheries  interests  stated  that  any 
amendments should apply to the new tuna agreements. Because tuna is such a highly 
migratory  species,  actual  catches  taken  in  a given  zone  can  fluctuate  greatly  from 
one fishing year to the next. 

p:\accords\madag\98\fifin-en .doc 

£V 

In all tuna agreements, the catches taken by the Community fleet in the waters of the 
non-member country cannot be known in advance. The Community therefore pays a 
fixed amount which is directly proportionate to an expected catch weight  ("reference 
weight")  calculated  on  the  basis  of  the  average  catches  recorded  during  previous 
years,  adjusted  where  necessary  according  to  the  number  of  vessels  authorised  to 
fish. If the  expected  catch  weight  is exceeded,  an  additional  amount  is paid.  If the 
expected  catch  is  not  taken,  the  non-member  country  keeps  the  amount  initially 
paid. 

The  guidelines  laid  down  by the Council  for  negotiating  fisheries  agreements  with 
the  ACP  States  specify  that  account  must  be  taken  of the  Community's  interest  in 
maintaining or establishing fisheries relations with the countries concerned. 

In  the  case  of  Madagascar,  during  the  period  of  validity  of  the  1995-98  Protocol, 
Community  shipowners  actually  obtained  licences  for  tuna  fisheries  for  91% of 
what  was  available  for  tuna  seiners  and  73%  for  surface  longliners.  For  both 
economic  and biological  reasons, average  annual  catches  of around  6 000 tonnes a 
year  were  recorded  during  the  1995-98  Protocol,  while  the  reference  weight  was 
9 000 tonnes per year.  However, since the number of vessels authorised to fish has 
been increased by  17 units under the new Protocol, it is warranted to provide for an 
increase  in  actual  catches  and  to  increase  the  reference  weight  for  1998-2001 
slightly, from 9 000 to 9 500 t/year. 

The total financial  compensation amounts to ECU 2 280 000. ECU  1  368 000 of that 
amount  is earmarked  explicitly  for specific  measures to develop fisheries (scientific 
research, marine surveillance, training, etc.). These measures account  for 60% of the 
total  cost  of  the  agreement,  as compared  with  37.5% under  the  previous  Protocol. 
This  shows  the  Commission's  concern  to  ensure  not  only  the  development  of 
fisheries  activities  for  Community  vessels  but  also  sustainable  development  of 
fisheries in  Madagascar.  This  Protocol  provides,  for  the  first  time,  for  a  detailed 
report  on  the utilisation  of the  funds  earmarked  for  specific  measures,  and  enables 
the Commission  to review  its payments  in the light  of the implementation  of those 
measures. 

The  advances  paid  by  the  owners  of  tuna  vessels  to  obtain  their  licences  are 
substantially  increased  for  tuna  seiners  (ECU  2 000  instead  of  ECU  1  500)  and 
surface  longliners (ECU 800 and ECU  1 100 according to the tonnage of the vessel, 
instead  of  ECU  500).  The purpose of this increase  is to  increase  the  responsibility 
of  shipowners  by  making  them  bear  a  larger  share  of  the  cost.  The  Annex  also 
provides  for  an  increase  in  the  number  of  Malagasy  seamen  to  be  employed  on 
Community vessels. 

Assuming  the  fishing  opportunities  provided  for  in the  Protocol  are  fully  used,  the 
increase in the annual cost will be ECU 35 000 to the EC budget and ECU 55 000 to 
the shipowners, in the form of larger advances. 

The Agreement  is clearly profitable  in that the value of catches  far exceeds the cost 
of the Protocol. 

p:\accords\madag\98\fifin-en.doc 

ZS 

In  addition  to  the  direct  sale  value  of  catches,  the  Agreement  also  offers  the 
following  advantages: 

-  guaranteed employment  on board fishing vessels, 

the  multiplier  effect  on  jobs  for  the  ports,  auctions,  processing  factories, 
shipyards and service  industries in the regions concerned, 

- 

these jobs are created in regions where there are no alternatives to fishing. 

-  guaranteeing supply to the Community market in fishery products. 

Clearly,  the  list  of  advantages  must  include  the  importance  of  relations  with 
Madagascar, both in the fisheries  sector and in the political sphere. 

10.  ADMINISTRATIVE  EXPENDITURE  (PART A OF THE  BUDGET) 

No impact on administrative expenditure. 

p:\accords\madag\98\fifin-en.doc 

ZG 

ISSN 0254-1475 

COM(98) 390 final 

DOCUMENTS 

EN 

03  11  02 

Catalogue  number  :  CB-CO-98-405-EN-C 

ISBN  92-78-37382-6 

Office  for Official  Publications of the European  Communities 

L-2985 Luxembourg 

M