CELEX: 51991SC1363
Language: en
Date: 1991-07-12
Title: Proposal for a Council Regulation (EEC) prohibiting to honour iraqi claims with regard to contracts and transactions affected by the United Nations Security Council resolution 661 (1990) and related resolutions

3.8.91                                Official Journal of the European Communities                              No C 204/5
    alpha acid content of these products is not lower than               a recognized producer group which markets all
    that of the hops they have been prepared from.'                      the produce of its members as referred to in
                                                                         Article 7 (3) (b). The amount of aid to be fixed in
4. The last subparagraph of Article 7 (3) (b) shall be                   this case shall be at least 50 % of the amount of
    replaced by the following:                                           aid which is fixed for the different groups of hop
                                                                         varieties according to the provisions of Article 12
    Tt shall be possible for a group or union to authorize                (5) (a) and (6) of the present Regulation.'
    its members to market all or a part of their produce
    themselves in accordance with rules laid down and                                       Article 2
    supervised by the group or union;'
                                                                 This Regulation shall enter into force on the seventh day
5. The following subparagraph shall be added to Article          following its publication in the Official Journal of the
    12(5):                                                       European Community.
    '(c) The amount of aid to be fixed may be lower in           This Regulation shall be binding in its entirety and
         the case of those producers who do not belong to        directly applicable in all Member States.
               Proposal for a Council Regulation (EEC) prohibiting to honour Iraqi claims with regard to
              contracts and transactions affected by the United Nations Security Council resolution 661
                                               (1990) and related resolutions
                                                       (91/C 204/05)
                                                    SEC(91) 1363 final
                                      (Submitted by the Commission on 12 July 1991)
THE COUNCIL OF THE EUROPEAN COMMUNITIES,                         in its paragraph 29, deals with claims by Iraq in relation
                                                                 with contracts and transactions affected by measures
                                                                 taken by the Security Council in resolution 661 (1990)
Whereas, under Regulations (EEC) No 2340/90 (') and              and related resolutions;
(EEC) No 3155/90 (2), both as last amended by Regu-
lation (EEC) No 1194/91 (3), the Community has taken
                                                                 Whereas the Community and its Member States have
measures to prevent trade by the Community as regards
                                                                 agreed to establish a Community instrument in order to
Iraq;
                                                                 ensure a uniform implementation, throughout the
                                                                 Community, of paragraph 29 of Security Council
                                                                 resolution 687 (1991);
Whereas as a consequence of the embargo against Iraq
economic operators in the Community and third
countries are exposed to the risk of claims by the Iraqi         Whereas such a uniform implementation is necessary to
side;                                                            achieve the aims of the Treaty establishing the European
                                                                 Economic Community; whereas no other powers are
                                                                 available in the Treaty than in Article 235;
Whereas it is necessary to protect operators against such
claims and to prevent Iraq from obtaining compensation
for negative effects of the embargo;                             Having regard to the Treaty establishing the European
                                                                 Economic Community, and in particular Article 235
                                                                 thereof,
Whereas the Security Council of the United Nations
adopted resolution 687 (1991) of 3 April 1991 which,             Having regard to the proposal from the Commission,
0) OJ No L 213, 9. 8. 1990, p. 1.
O OJ No L 304, 1. 11. 1990, p. 1.                                Having regard to the opinion             of the European
O OJ No L 115, 8. 5. 1991, p. 37.                                Parliament,
 ---pagebreak--- No C 204/6                            Official Journal of the European Communities                                   3. 8. 91
HAS ADOPTED THIS REGULATION:                                    person or body in Iraq, or any person claiming through
                                                                or for the benefit of any such person or body, directly or
                                                                indirectly, in connection with any contract or other
                           Article 1
                                                                transaction where its performance was affected by reason
For the purpose of the present Regulation:                      of the measures taken by the Security Council in
                                                                resolution 661 (1990) and related resolutions.
1. 'contract' or 'transaction' means: any contract or
   transaction, including guarantees, bonds (e.g.
                                                                                          Article 3
   performance bonds, bid bonds), stand-by credits,
   subcontracts;                                                Without prejudice to existing prohibitions with regard to
                                                                commercial and financial relations with Iraq, Article 2
2. 'claim' means any demand or action on the side of a          does not apply, when:
   party to a contract or a transaction for the fulfilment
   of an obligation resulting from or connected with            (a) a claimant has obtained a judgment from a court or
   such a contract or transaction by another party, such            an award or an equivalent decision that the
   as:                                                              performance of the contract or transaction was not
                                                                    affected by measures mentioned in Article 2;
   — a demand to pay a bond or guarantee,
                                                                    and
   — a demand to continue or to start activities foreseen
       under a contract or transaction,
                                                                (b) the judgment, award or equivalent decision was
   — a demand to provide indemnity for a payment                    obtained within the jurisdiction of a country that had
       made under a contract or a transaction,                      faithfully implemented the measures taken by the
                                                                    Security Council in resolution 661 (1990) and related
   — a demand for an injunction from a court, for an                resolutions, and in particular paragraph 29 of
       arbitral award or for the execution of such                  resolution 687 (1991).
       injunction or award;
                                                                                          Article 4
3. 'measures taken by the Security Council in resolution
   661 (1990) and related resolutions' means measures of        The onus of proving that the performance of the
   the United Nations Security Council, and measures            contract or transaction was not affected by measures
   introduced by the European Communities, any                  mentioned in Article 2, shall be on the person making a
   country or international organization in pursuance of        claim.
   the relevant decisions of the Security Council, or any
   other action authorized by the Security Council in
   respect of the invasion of Kuwait by Iraq, such as                                     Article 5
   military activities in connection with the liberation of
                                                                The Member States will take the necessary measures to
   Kuwait;
                                                                ensure the effectiveness of the disposition of Articles 2, 3
                                                                and 4.
4. 'person or body in Iraq' includes any person or body
   resident in Iraq, any body incorporated or constituted
   under law of Iraq and any body controlled by any                                       Article 6
   persons or bodies resident in Iraq or bodies incor-
   porated or constituted under the law of Iraq.                This Regulation shall enter into force on the day of its
                                                                publication in the Official Journal of the European
                                                                Communities.
                           Article 2
As from 3 April 1991, it shall be prohibited to honour          This Regulation shall be binding in its entirety and
any claim made by the Government of Iraq, or any                directly applicable in all Member States.