CELEX: 51974PC1507
Language: en
Date: 1974-09-23
Title: Proposal for a COUNCIL DECISION concluding the OECD understanding of 27 June 1974 on export credits for ground satellite communications stations and adopting measures for its implementation (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (74) 1507
Vol. 1974/0241
 ---pagebreak--- Disclaimer
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 ---pagebreak--- COMM35SEON OF THH EUROPEAN CGMMUMTIES
                                           COM (74) 1507 final
                                           Brussels , 23 September 1974
                                Proposai, for a
                               COUNCIL DECISION
              concluding the OECD understanding of 27 June 1974
            on export credits for ground satellite communications
            stations and adopting measures for its implementation
                  (submitted to the Council by the Commission)
   COM(74) 1507 final
 ---pagebreak---                            EXPLANATORY MEMORAHDUM
. The Community has participated in the drafting within the OECD of an
  Understanding on export credits for ground satellite communications
  stations .
  The Commission conducted these negotiations in close consultation
  X\Tith the Committee provided for in Article 113 of the EEC Treaty and
  within the framework of the directives issued to it by the Council in
  its Decision of 4 February 1 974 *
  The negotiations terminated in an Understanding which was adopted by
  the Resolution of the OECD Council of 27 June 1974 and approved by
  several members of that organization and by the Community.
  As regards Community participation in this Understanding , the
  Resolution adopted by the OECD Council contains the following footnote
  "Reference in the present Resolution, as well as in its Annex., to
  ♦member countries or Governments participating in the Understanding *
  shajl be considered to apply also to the European Economic Community".
  Although this wording is only a stopgap until a better formula is
  negotiated , the Commission decided to accept it in this case ,
  particularly since the Council was in favour of such a solution, in
  order to avoid calling into question all the texts already drawn up
  within the OECD .
 ---pagebreak---                                        - 2 -
2 . Therefore , the Commission considers that the outcome of the
      negotiations is acceptable to the Community and consequently, under
      Article 113 of the EEC Treaty, recommends the Council to conclude
      the Understanding ,
      The public support measures provided for in the Understanding are
      also subject to the consultation and information procedure in
      matters of credit insurance , credit guarantees and financial credits
                                                                      1
      which the Community set up unilaterally by the Council Decision of
      3 December 1973 * To facilitate the application of this procedure ,
      the Commission proposes that , as regards those publio support measured
      which observe the two conditions laid down in the Understanding
      (minimum advance payment and maximum duration of credit ), the Member
      State concerned be exempted from the requirement to await prior
      consultation on these two points before granting its support . The
      Community procedure would thus continue to apply in its entirety to
      any more favourable support measures granted by a Member State under
   - Article 5 and 6 of the Understanding. In addition, in order to
      facilitate coordination between the two procedures , provision should
      be made for all notifications or communications effected or received
      by Member States under the Understanding to be transmitted by way of
    ' information to the other Member States and to the Commission,
      Apart from these two provisions , no further measures are required in
      order to ensure the application of the Understanding by the Member
      States .
3. Therefore , as provided for in Article 113 of the EEC Treaty, the
      Commission proposes that the Council conclude the Understanding and
      adopt the. measures necessary for its implementation by adopting the
      attached Decision,
       OJ No L 346 , 17 December 1973 » P « 1
 ---pagebreak---       DRAFT PROPOSAL FOR A COUNCIL DECISION CONCLUDING THE OECD
      UNDERSTANDING OP 27 JUNE 1974 ON EXPORT CREDITS FOR GROUND
      SATELLITE COMMUNICATIONS STATIONS AND ADOPTING MEASURES
      FOR ITS IMPLEMENTATION
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard, to the Treaty establishing the European Economic
Community , and in particular Article 113 thereof ;
Having regard to the proposal from the Commission ;
Whereas the Community participated in the framing of the Understanding
on export credits for ground satellite communications stations , which
v®.s adopted by the Resolution of the OECD Council of 27 June 1974 ?
Whereas it is desirable to conclude this Understanding and to adopt
certain measures for its implementation, tricing into account in
                                                    1
particular the provisions of the' Council Decision      of 3 December 1973
on consultation and information procedures in matters of credit
insurance , credit guarantees an,-l financial credits ;   , • •
HAS DECIDED AS FOLLOWS :
                             Article 1
The Understanding on export credits for ground satellite communications
stations , adopted by the Resolution of the OECD Council of
27 June 1974 » is hereby concluded on behalf of the European Economic
Community .
The texts of the Understanding and the Resolution are annexed hereto .
 OJ No L 346 , 17 December 1973 , p. 1 »
 ---pagebreak---                                 - 2 -
                              Article 2
Credits for the export to third countries of ground satellite
communications stations which are not granted on more favourable terms
that those set out in Article 1 of the Understanding may not be the
subject , as regards the duration of credit and the instalments payable ,
of an unfavourable opinion within the meaning of Article 10 of the
Annex to . the abovementioned Council Decision of 3 December 197 3 »
                              Article 3
Member States shall transmit to the other Member States and to the
Commission, subject to the conditions set out in Article 9 of the
Annex to the abovementioned Council Decision of 3 December 1973 , the
notifications and other communications which they send or receive
pursuant to the Understanding .
                              Article 4
This Decision is addressed to the Member States .
Done at Brussels ,                                 For the Council
 ---pagebreak---  ORGANISATION FOR ECONOMIC                                         ANNEX
COOPERATION AND DEVELOPMENT
                                                                   Paris , 10 July 1974
                                                                   C(74)l12(Pinal )
                                     COUNCIL
                           RESOLUTION OF THE COUNCIL
                CONCERNING AN UNDERSTANDING ON EXPORT CREDITS
                FOR GROUND SATELLITE COMMUNICATIONS STATIONS
 ( Adopted by the Council at its 363rd Meeting on 27 June 1974 )
        The Council ,
        Having regard to the terms of reference of the Trade Committee 's
 Group on Export Credits and Credit Guarantees , which includes consideration
 of all possible ways of improving cooperation between Member countries in
 the field of export credits and credit guarantees /C(63)141 » 0^1(63)22
 Annex (Final ), Item 225^7;
        Considering that an understanding between interested Member countries
 on the most favourable credit terms which may be officially supported for
 exports of ground satellite communications stations would constitute a
 useful contribution for the goods concerned to efforts aiming at creating
 more orderly competition in the field of export credits ;
        Having regard to the Report by the Trade Committee 's Group on Export
 Credits and Credit Guarantees of 10 June 1974 » concerning the implementation
 between certain Member countries of an Understanding on Export Credits for
 Ground Satellite Communications Stations ^C(74)^12_/;
 I.     NOTES with satisfaction that the following Member countries :
 Belgium , Canada , Denmark , Germany , France , Ireland , Italy , Japan , the
 Netherlands , Sweden , Switzerland , the United Kingdom and the United States ,
 have approved the Understanding set out in the Annex to this Resolution ,
 whereby they undertake not to extend official support for export credits
 for ground satellite communi cat ions stations on terms more favourable
 than the most favourable terms set out in the Understanding .
 II . NOTES that these countries have agreed that the Understanding shall
 become effective as from 1 July 1974 «
 * Reference m the present Resolution , as well as in its Annex , to
    "Member countries or Governments participating in the Understanding"
    shall be considered to apply also to the European Economic Community.
 ---pagebreak--- C(74)H2(Final )
III . INSTRUCTS the Group on Export Credits and Credit Guarantees to follow
the operation of the Understanding , to review it within a period pf one
year after its implementation and , in any case , as often as requested , in
accordance wi+h clause 8 of the Understanding , and to make any appropriate
proposals to the Council .
IV .  REQUESTS the Secretary-General to ensure the efficient administration
of the Understanding .
 ---pagebreak---                                         -3-                   C(74)l12(Final )
                                       Annex
       UNDERSTANDING OF EXPORT CREDITS FOR GROUND SATELLITE COMMUNICATIONS
                                    STATIONS ( 1 )
1.     The Governments participating in the present Understanding undertake
not to extend official support to export credits for ground satellite
communications stations on terms more favourable than the following :
       – dovmpayment of 10 per cent at least of the contract value ,
          payable by final shipment , of xfhich not less than 5 Per cent
          payable on signature of the contract ;
       - credit of maximum length of 8 years from commissioning ( 2 )
          repayable by regular and equal half-yearly instalments .
2.     In this context " officially supported" shall include any facilities
which enable credits to be insured , guaranteed or financed by governments ,
by governmental institutions or with any form of direct or indirect
governmental participation in the operation in question .
3.      Insofar as other public bodies participate in measures to promote
exports , participating governments agree to use all possible influence to
prevent the financing of export contracts on terms more favourable than
those set out in the Understanding .
4.     The most favourable terms laid down in the Understanding will apply to
the officially supported credit extended bj' the exporter to the buyer
( in a supplier credit transaction ) or by a bank or any other party in the
exporter 's country to the buyer .or any other party in the buyer 's country
( in a buyer credit transaction ). '
5.      Official Development Assistcince ( ODA ) transactions with developing
countries are subject to the general rules and procedures covering the
provision of ODA .     Correspondingly , more favourable terms than those set
forth in this Understanding may be supported for transactions eligible for
consideration as ODA by the Development Assistance Committee .        Participa­
ting Governments agree to give adequate notice of the intention to support
in a particular case such terms .
( 1 ) The Understanding applies to transactions concerning complete stations ,
      major components- of parts of such stations , and whether the transaction
      takes place in isolation or as part of larger projects .
( 2 ) By "commissioning" is meant the point in time when construction of the
      station and preliminary tests by the supplier to ensure that it is
      ready for operation have been completed , whether or not under the terms
      of the contract the hand-over to the buyer is in fact made at that
      time , and irrespective of any continuing commitment which the supplier
      may have with regard to guaranteeing that the station will operate
      effectively or to training of local personnel .
 ---pagebreak--- C(74)H2(Final )                       -4-
Annex
    If in the case of transactions financed wholly or in part from other
funds than OM , a participating Government nevertheless considers a
transaction to fee development-motivated , the extension of more favourable
terms is not precluded , provided that , together with the adequate notice
of the intention to support such terms , appropriate explanations of the
relevant motives are given .
    For all cases covered "by this Clause " adequate notice " means that , in
accordance with agreed procedures ,, notification will be made to the other
participating governments in the Understanding with maximum possible
notice , normally not less than six weeks before the beneficiary or the
exporter is informed .
6 . Any government participating in the Understanding may , provided that
the decision is immediately notified to all other participating governments ,
support more favourable terms in a particular substantiated case to match
terms of officially supported transactions or contraventions of the above
terms by other participating governments , or competition from non-participating
countries .                                               •.
7 . Any government participating in the Understanding may obtain information
from any other participating government on the terms of any official support
for the export of the goods concerned in order to ascertain whethor the
terms actually conform to those set out in the Understanding.      Participating
governments undertake to supply all possible information requested with all'
possible speed .   According to the rules and practices of the O.E.C.D.
any participating government may ask the Secretary-General to act on its
behalf in the aforementioned matter and to circulate the information
obtained to all participants in the Understanding..
8 . The Understanding shall be subject to review as. often as requested by
participating governments . Any participating government may withdraw
from the Understanding upon giving to its partners three . calendar months'
notice of its intention to do so .    Within this period , at the request of
any of these partners , there shall be a meeting of the O.E.C.D. Group on .
Export Credits and Credit Guarantees , and any other participating
government , on notification to its partners , may withdraw from the
Understanding at the same effective date as the government which first
gave notice .