CELEX: 51998PC0390(01)
Language: en
Date: 1998-06-25
Title: 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

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)
 ---pagebreak---  ---pagebreak---                             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 andfinancialconditions 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
 ---pagebreak---                                     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.
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                                              -2
 ---pagebreak--- 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
 ---pagebreak---                               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
                                                -4-
 ---pagebreak---                                       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 ofMadagascar
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
 ---pagebreak--- 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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                                                  -6-
 ---pagebreak---                                             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
                                                    -7-
 ---pagebreak---  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:               vessels
                                Portugal:             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-
 ---pagebreak---                                          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
 p:\accords\madag\98\en.doc
                                               -9
 ---pagebreak---                                       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 2 0 MAY 2 0 0 1
                                         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
                                               - 10
 ---pagebreak---                                              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 thefinancingof 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
 ---pagebreak---                                           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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                                                - 12
 ---pagebreak---                                                 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, licences authorising
         Community vessels to fish in Malagasy water shall be as follows.
        (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.
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                                                       13
 ---pagebreak---         (3)       The Malagasy authorities shall send licences to the representative of the
                  Commission of the European Communities in Madagascar.
       (4)        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)       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.
       (3)       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.
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                                                     14
 ---pagebreak--- 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.
                  Tuna seiners and surface longliners           shall complete a fishing form
                  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
                                                      - 15
 ---pagebreak---                  - 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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                                                    - 16
 ---pagebreak--- 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
                     determined in accordance with Malagasy legislation laying down
                     minimum and maximum figures;
                 - or by legal proceedings, if no composition is possible, in accordance with
                     Malagasy law.
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                                                  - 17-
 ---pagebreak---        (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.
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                                                    -18-
 ---pagebreak---                                        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:
                                                49
 ---pagebreak--- 21. Number of crew broken down by nationality:
22. Number of fishing licence (in the case of a renewal, attach licence):.
I, the undersigned,             , certify that the above information is correct and
undertake to comply therewith.
Stamp and signature of shipowner:                                            Date:
                                              Zo
 ---pagebreak---  ---pagebreak---                                   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.
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 ---pagebreak---      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
                                                                              in current ECU million
                Breakdown                     1998           1999            2000                        TOTAL
               (current ecus)
     Financial         compensation
     referred to in Article 2                0.304          0.304            0304                          0.912
     Allocations under Article 3             1368 1                                                        1368
     TOTAL                                   1.672          0.304            0304                          2.280
             73.      Schedule for proposed new operation
                                                                                      in current ECU million
                                        1998            1999              2000                               TOTAL
Commitment appropriations               1.672           0.304             0304                                 2.280
Payment appropriations
1998                                   0.988                                                                   0.988
1999                                                    0.646                                                  0.646
2000                                                                      0.646                                0.646
TOTAL                                   0.988           0.646             0.646                                2.280
          scientific and technical programmes:              ECU 168 000
          fisheries surveillance:                           ECU 600 000
          training:                                         ECU 300 000
          traditional fisheries:                            ECU 125 000
          ENEM:                                             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
 ---pagebreak--- 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
                                              1994-1997                   1998-2001
Category                            Fishing           Utilisation rate      Fishing
                                  opportunities                         opportunities
                                     (GRT)                                 (vessels)
Tuna seiners:                      42 vessels               91%           45 vessels
Surface longliners                     16                   73%           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
 ---pagebreak---         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.
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                                                          ZS
 ---pagebreak---        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.
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                                                  ZG
 ---pagebreak---  ---pagebreak---                                                                   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