CELEX: 51987PC0355
Language: en
Date: 1987-07-24 00:00:00
Title: Recommendation for a COUNCIL DECISION on the conclusion of a Protocol on financial and technical cooperation between the European Economic Community and the Republic of Tunisia#Recommendation for a COUNCIL DECISION on the conclusion of a Protocol on financial and technical cooperation between the European Economic Community and the Arab Republic of Egypt#Recommendation for a COUNCIL DECISION on the conclusion of a Protocol on financial cooperation between the European Economic Community and the State of Israel#Recommendation for a COUNCIL DECISION on the conclusion of a Protocol on financial and technical cooperation between the European Economic Community and the People's Democratic Republic of Algeria#Recommendation for a COUNCIL DECISION on the conclusion of a Protocol on financial and technical cooperation between the European Economic Community and the Hashemite Kingdom of Jordan#(presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (87) 355
Vol. 1987/0199
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 concernant
l'ouverture au public des archives historiques de la Communauté économique européenne et de
la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, p. 1) modifié en dernier
lieu par le règlement (UE) 2015/496 du Conseil du 17 mars 2015 (JO L79 du 25. 3.2015, p. 1), ce
dossier est ouvert au public. Le cas échéant, les documents classifiés présents dans ce dossier
ont été déclassifiés conformément à l'article 5 dudit règlement ou sont considérés déclassifiés
conformément aux articles 26(3) et 59(2) de la décision (UE, Euratom) 2015/444 de la
Commission du 13 mars 2015 concernant les règles de sécurité aux fins de la protection des
informations classifiées de l'Union européenne.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 concerning
the opening to the public of the historical archives of the European Economic Community and the
European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as last amended by Council
Regulation (EU) 2015/496 of 17 March 2015 (OJ L 79, 27.3.2015, p. 1), this file is open to the
public. Where necessary, classified documents in this file have been declassified in conformity
with Article 5 of the aforementioned regulation or are considered declassified in conformity with
Articles (26.3) and 59(2) of the Commission Decision (EU, Euratom) 2015/444 of 13 March 2015
on the security rules for protecting EU classified information.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1. Februar
1983 über die Freigabe der historischen Archive der Europäischen Wirtschaftsgemeinschaft und
der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983, S. 1), zuletzt geändert durch die
Verordnung (EU) Nr. 2015/496 vom 17. März 2015 (ABI. L 79 vom 25.3.2015, S. 1), ist dieser Akt
der Öffentlichkeit zugänglich. Soweit erforderlich, wurden die Verschlusssachen in diesem Akt in
Übereinstimmung mit Artikel 5 der genannten Verordnung freigegeben; beziehungsweise werden
sie auf Grundlage von Artikel 26(3) und 59(2) der Entscheidung der Kommission (EU, Euratom)
2015/444 vom      13.   März 2015     über die   Sicherheitsvorschriften für den Schutz von  EU-
Verschlusssachen als herabgestuft angesehen.
 ---pagebreak---  COMMISSION OF THE EUROPEAN COMMUNITIES
                                                   COM ( 87 ) 355 final
                                                   Brussels ,-^     July 1987
                             Recommendation for a
                               COUNCIL DECISION
 on the conclusion of a Protocol on financial and technical cooperation
    between the European Economic Community and the Republic of Tunisia
                             Recommendation for a
                                COUNCIL DECISION
  on the conclusion of a Protocol on financial and technical cooperation
      between the European Economic Community and the Arab Republic of
                                     Egypt
                              Recommendation for a
                                COUNCIL DECISION
   on the conclusion of a Protocol on financial cooperation between the
             European Economic Community and the State of Israel
                              Recommendation for a
                                COUNCIL DECISION
  on the conclusion of a Protocol on financial and technical cooperation
    between the European Economic Community and the People 's Democratic
                              Republic of Algeria
                              Recommendation for a
                                COUNCIL DECISION
  on the conclusion of a Protocol on financial and technical cooperation
      between the European Economic Community and the Hashemite Kingdom
                                   of Jordan
                         (presented by the Commission )
C0M(87 ) 355 final
 ---pagebreak---                                                2-
 1.  On 25 November 1985 the Council adopted negotiating Directives authorizing
     the Commission to enter into negotiations with Algeria , Egypt , Israel ,
     Jordan, Lebanon, Morocco, Syria and Tunisia with a view to concluding new
C
     Protocols on financial and technical cooperation .   On 30 March 1987 the
     Council supplemented these Directives .
    To date negotiations have been completed with Egypt , Tunisia ,          ,
     Israel , Jordan* and Algeria .
    The chairmen of the respective delegations have initialled the texts of the
    draft Protocols .
    It should be noted that the result of the negotiations is in complete
    accordance with the Directives referred to above .
2.  The Commission recommends that the Council approve the result of the
    negotiations and initiate the procedure for signature and conclusion .
    It therefore presents herewith :
    -     recommendations for Council decisions on the conclusion of Protocols
          on financial and technical cooperation;
        »
    -     annexed to the recommendations , the text of the draft Protocols .
             f
                                                    »
 ---pagebreak---                                              3
                          Recommendation for a Council Decision
                    on the conclusion of a Protocol on financial and
             technical cooperation between the European Economic Community
                          and / the Republic of Tunisia_7 ^
  THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
 Having regard to the Treaty establishing the European Economic Community ,
 and in particular Article 238 thereof ,
 Having regard to the recommendation from the Commission ,
  Having regard to the assent of the European Parliament ,
 Whereas the Protocol on financial and technical cooperation between the
                                                              - 1
 European Economic Community and / the Republic of Tunisia_/      , should
 be approved ,
HAS DECIDED AS FOLLOWS :
                                        Article 1
The Protocol on financial and technical cooperation between the European
Economic Community and /~the Republic of Tunisia_/^ is hereby approved on
behalf of the Community .    The text of the Protocol is attached to this
Decision .
 ---pagebreak--- _____                                                                4
/ the Arab Republic of Egypt_7, /[the Hashemite Kingdom of .Jordan T
                   /"the People 's Democratic Republic of Algeria_/.
 ---pagebreak---                                     Article 2
The President of the Council shall give the notification provided for
in Article 21 of the Protocol . 1
  The date of entry into force of the Protocol will be published in the
  Official Journal of the European Communities  by the General Secretariat
  of the Council
 ---pagebreak--- PFEAMB1JE
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
 of the one part , and
THE PRESIDENT OF /"THE REPUBLIC OF TUNISIA^,
 of the other part ,
REAFFIRMING their resolve to implement , under the Mediterranean
policy of the enlarged Community , co-operation which will
contribute to the economic end social development of. /”Tunisia_7
and promote the strengthening of relations betweeft the Community'
and /"Tunisia^?,
ANXIOUS to pursue to this end the financial and technical
co-operation provided for in the Co-operation Agreement ,
HAVE DECIDED to conclude this Protocol and to this end have
 designated as their Plenipotentiaries :
♦
                                                                 /...
 5647 /87                                     aon/'ujw /' jw        E
 ---pagebreak---                                    Artide 1
        Vithin the framework of the financial and technical co-operation
 provided for in the Co-operation Agreement concluded between the
 European Economic Community and the /""Republic of TunisiaJ7 » the
 Community shall participate , on the terms set out in this Protocol ,
 in the financing of measures intended to contribute to the economic
 and social development of /""Tunisia 7 .
                                   Article 2
 1          For the purposes no^cified in Article 1 and for a period
    expiring on 31 October 1 99.1 , an aggregate amount of
     ... million ECU may be committed as follows :
    ( a ) ... million ECU in the form of loans from the European
           Investment Bank , hereinafter referred to as " the Bank ",
           made from its own resources ;
     ( b ) ... million ECU from the Community 's budgetary resources ,
           in the form of grants ;
    ( c ) ... million ECU from the Community 's budgetary resources ,
           in the form of contributions to risk capital formation .
 2.         The loans referred to in paragraph 1(a ) - with the exception
    of those intended for financing the oil sector - shall carry a
    2% interest rate subsidy financed by means of the funds referred
    to In paragraph 1(b ) ( J ).
 (*) Article 2(2 ) has been included subject to the partner agreeing
       to forgo subsidies on loans as a whole .
                                                                      /
5647 / 87                                                               E
( АШЕХ I )
 ---pagebreak---                                       -8 -
3.           The risk capital referred to in paragraph 1(c ) Bhall
     contribute to the co-operation objectives and operations
     defined in Article 3 , in particular those indicated in the
     second Indent of paragraph 2 of that Article .
             It shall be used primarily to make equity capital or the
     like available to /“Tunisian ^ private undertakings , public
     undertakings and undertakings with State participation , in
     particular those with which natural or legal persons who are
     nationals of a Community Member State are associated . It may
     be used under the same conditions to finance specific studies
     for the preparation and development of such undertakings' projects
     and to assist such undertakings in their starting-up period .
             It shall be granted and administered by the Bank and may take
     the form of :
     ( a ) subordinated loans , where repayment and payment of any
            interest will not be made until other bank claims have
            been settled ;
     ( b ) conditional loans , where repayment or duration will depend on
            the fulfilment of conditions specified at the time when the
            loan is granted ;
     ( c ) acquisition of temporary minority holdings on behalf of the
            Community in the capital of undertakings established in
            /”Tuni8ia_7;
      ( d ) finance for the acquisition of holdings , in the form of
            conditional loans granted to £~Tunisia_7 or , with the
            /“TunisianJT Government’s agreement , to £~Tunisian ^/
            undertakings , either directly or through the intermediary of
            £~Tunis!an_7 financial Institutions .
                                                                      • • •/• • •
  5647 / 87                                        don / DJM/ jw
                                                                                ε
  ( ANNEX I )
 ---pagebreak---                                   Article 3
1.        The total amount fixed in Article 2 shall be used primarily
    for the financing or part-financing of co-operation projects or
    operations aimed at :
    – developing and diversifying agricultural production so as to
       reduce JT"Tunisia' s_7 food dependence , and efforts to diversify
       Agricultural production and exports with a view to Increasing
       the complementarity of the different Mediterranean regions ;
    - strengthening the economic links between the Community and
       / Tunisia_7 in their mutual interest by developing co-operation
       in the fields of industry , training and research , technology ,
       commerce and other services ;
    - regional and multilateral co-operation .
          Economic infrastructure and industrial development which are
    complementary to the above operations may also be financed .
2.        Of the eligible projects and operations priority shall be
    given to those having the following alms :
    - in the agricultural " sector , developing the production of
       agricultural products in short supply , particularly food crops ,
       inter alia in the framework of multiannual programmes and
       operations in the context of the national food strategy t 1 )..
       For maximum effectiveness , concentration of resources in
       specific sectors shall be sought ;
(*) In the case of countries with fisheries potential , the Community
     is ready to embark upon , or to strengthen , co-operation in the
     fisheries sector .    If the MTC concerned confirmed its interest
     in such co-operation during the negotiations , the following text
     would have to be inserted :
     •'In this framework , the development of fisheries and pisciculture
       will be encouraged ."
                                                                    • • • / ...
5647 / 87                                           don / uj>i / jw           E
( ANNEX I )
 ---pagebreak---     - in the industrial and service sectors , promotion of Joint
       ventures between firms from the Community Member States and
       /“Tunisian_7 firms , direct contacts , exchange of information ,
       promotion of investment , contribution of private capital , and
       support for small and medium-sized enterprises , including craft
       businesses , in order to promote employment ;
    - in the field of science and technology , expansion of / Tunisia * s_7
       training and research capability and establishment or development
       of links between /“Tunisian^/ and European private and public
       training and research institutions ;
    - in the trade' sector , diversification and promotion of exports and •
       organization of contacts between £~Tunisian_7 firms and firms
       from the Community Member States ;
    - in the priority areas referred to above , practical training
       schemes linked to projects or operations in firms and research
       institutions .
3.        The Community 's financial contributions shall be used to cover
    internal and external costs necessarily incurred in carrying out
    approved projects or schemes ( including costs in respect of studies ,
    consulting engineers and technical assistance ).         They may not be
    used to cover current administrative ,- maintenance or operational ,
    expenditure .
                                 Article A
1.        Capital projects shall be eligible for financing either
    by loans from the Bank , combined with Interest rate subsidies
     on the terms set out in Article 2(2) ( l ), or by risk capital ,
     or by grants , or by a combination of these means .*
2.        Technical and economic co-operation shall normally be financed
    by grants .
(*) provided that the partner countries do not forgo interest rate
      subsidies for financing as a whole in the course of negotiation .
                                                                      • . ./. . •
5647 / 87                                       don / DJïî/ jw
( ANNEX I )
 ---pagebreak--- !•        The amounts to be committed each year shall be
    distributed as evenly as possible throughout the period
    of application of this Protocol .
2.        Any funds not committed at the end of the period
    referred to in Article 2(1 ) shall be used until exhausted .
    In such cases , the funds shall be used in accordance with
    the same arrangements as those laid down in this Protocol .
                             Article 6
1.        Loans granted by the Bank from its own resources shall
    be made in accordance with the arrangement. 5 , conditions and
    procedures laid down in its statute . They shall , as regards      -
    their duration , be subject to terms established on the
    basis of the economic and financial characteristics of the
    projects for which these loans are intended , also taking
    into account the conditions obtaining on the capital markets
    on which the Bank procures its resources . The interest
    rate shall be determined in accordance with the Bank 's
    practice at the time of signature of each loan contract ,
    subject to the interest rate subsidy referred to in Article 2(2 ).
2.        The terms and arrangements for contributions to risk
    capital formation shall be determined on a case-by-case
    basis .
3.        Aid from the Community 's budget resources , other than
    that In the form of interest rate subsidies for loans from
    the Bank or that intended for risk capital operations , shall
    be granted and administered by the Commission .
A,        The funds referred to in Article 2 may be granted
    through the intermediary of the State or appropriate
    /"Tunisian__7 bodies , on condition that they allocate the
    amounts to the recipients on terms decided , by agreement with
    the Community , on the basis of the economic and financial
    characteristics of the projects and operations for which they
    are Intended .
                                                           • • •i• • •
5647 / 87
                                           don / DJM / jw           E
( ANNEX I )
 ---pagebreak---                               Article 7
       Aid contributed by the Community for the execution of
certain projects may , with the agreement of /“TunisiaJ7,
take the form of co-financing in which , in ©articular , credit
and development bodies and institutions of /“TunisiaJ7, of
Member States or of third States or international finance
organisations would take cart .
                              Article 8
      The following shall be eligible for financial and technical
co-operation :
( a ) in general :
      - the jTTunisian_7 State ,
( b ) with the agreement of the /~TunisianJ7 Government , for
      projects or operations approved by it :
      - official rTunisian_7 development agencies ,
      - private agencies working in /~Tunisia_7 for economic
        and social development ,
      - undertakings carrying on their activities in accordance
        with industrial and business management methods and
        set up as legal persons within the meaning of Article 12 ,
      - groups of producers who are nationals of /~Tunisia_7 and ,
        exceptionally , where no such groups exist , the producers
        themselves ,
      - scholarship holders and trainees sent by /~Tunisia_7 under
        the training schemes referred to in Article 3 .
                                                            • • •/• • a
5647-/ 87                                     don /DJM / jw          E
( ANNEX I )
 ---pagebreak---                                 Article 9
1.          With a view to making optimum use of the instruments and means
     provided for in the Protocol and achieving the objectives laid down
     in Article 3 , the Community and /~Tunisia_7 shall , taking
     information provided by /~Tunisia_7 as a basis , examine :
     - the priority development objectives adopted at national level ;
     - the sector or sectors on which the Community contribution will
        be focussed , taking account in particular of the contributions of
        other providers of funds on a bilateral or multilateral basis and
        other Community instruments , including food aid ;
     - the measures and schemes best suited to achieving the sectoral
        objectives referred to in the second indent or , where such
        schemes are not sufficiently well defined , the broad objectives
        of the programmes for supporting the policies defined by the
        country in respect of those sectors ;
     - the regional action programmes which could be financed by the
        Community .
2.          On this basis the Community and /“Tunisia_7 shall , by mutual
     agreement , draw up an indicative programme committing both parties
     and determining the specific objectives of financial and technical
     co-operation , the priority sectors for intervention and the
     action programmes envisaged .
            The indicative programme may be reviewed by mutual agreement
     to take account of any changes in /“Tunisia' s_7 economic situation
     or in the objectives and priorities laid down by its development
     plan .
4.          The Community and /*~Tunisla_7 shall continue their exchanges
     of views within the appropriate bodies and shall , at least once
     during the period of implementation of the Protocol and at the
     latest before the end of the third year following the entry into
     force of the Protocol , make an assessment of the implementation of
     the indicative programme .
                                                                   •••/•••
5647 / 87                                        don / DJM / bt           г
 ( АМГУСХ )
 ---pagebreak---                                   Article 10
1.          Within the framework laid down in accordance with Article 9 ,
     the ^”Tunisian_7 State or , with the agreement of its Government ,
      the other possible beneficiaries referred to in Article 8 shall
      submit their requests for financial aid to the Community .
2.          The Community shall appraise the requests for financing in
      collaboration with the competent /~Tunlslan_7 authorities and
      other beneficiaries , In accordance with the objectives referred
      to in Article 9 , and shall Inform them of the decisions taken
      on such requests .
                                  Article 11
1.          The execution , management and maintenance of schemes that
     are the subject of financing under this Protocol shall be the
      responsibility of /“Tunisia^ or of the other beneficiaries
      referred to in Article B of this Protocol .
            The Community shall make sure that this financial aid is
      expended in accordance with the agreed allocations and to the
      best economic advantage .
2.           The projects and action programmes shall be the subject of
      appropriate evaluation , the outcome of which shall be communicated
      to both parties , which shall take appropriate measures by mutual
      agreement .
3.           Certain rules for administering the financial aid granted by
      the Community shall be the subject of an exchange of letters or
      a framework agreement between the Commission and ^“Tunisia 7
      upon conclusion of this Protocol .
5647 / 87                                         don/ DJM/bt             E
 ( AÎÎÎÎEX I )
 ---pagebreak---                                  Article 12
1.         All natural and legal persons falling within the scope of
    the Treaty establishing the European Economic Community and all
    natural and legal persons of /“Tunisia_7 may participate on
    equal te.rms in tendering procedures and other procedures for the
    award of contracts likely to be financed . Any such legal person
    formed in accordance with the law of a Member State of the European
    Economic Community or of ^”Tunisia_7 must have its registered office
    its administrative head office or its principal establishment in
    the territories in which the EEC Treaty is applied or in F Tunisia_7
    however , where only its registered office is in the said territories
    or in /“Tunisia_7 , the activities of such legal person must be
    effectively and continuously linked with the economy of those
    territories or of /”Tunisia_7 .
2.         In agreement with /“Tunisia_7 and with the aim of encouraging
    regional co-operation , natural and legal persons who are nationals
    of developing countries associated with the Community through
    overall co-operation or association agreements may be authorized
    by the Community exceptionally , on a case by case basis , to
    participate in the operations referred to in paragraph 1 which are
    financed by the Community . The eligibility of the natural or legal
    persons shall be assessed on the terms set out in paragraph 1 ,
    mutatis mutandis .
                                                                     . . ./.
 5647 / 87                                     don / DJM / bt
 ( ANNEX I )
 ---pagebreak---        To pro<iot«! p*rii*::s.?;:rtiion t»y f T’-MiSfciAnn 7 »s2 »der takings in the performance
of contracts sod to ensure the rapid end effective implementation of projects
end operations financed from resources administered by the Commission :
J. » An accelerated procedure for ipsuinj; invitations to tanner , involving shorter
     time limits for the submission ©f tenders , essy be used by /"Tunis ia_7 in agreement
     with ths Commission whare it is a question of works contracts which , because of
     their Beale , are mainly of interest to /"Tunisian 7 undertakings .
          The organisation of this accelerated procedure shall not rule out the
     possibility of issuing on international invitation to tender where it appears
     that the nature of the works to be carried out or the usefulness of widening
     participation justifies recourse to international competition .                         -
2.        Where urgency of the situation is established or where the nature , small
     scale or particular characteristics of certain works or supplies so warrant ,
     /”Tunisia_7 way , in agreement with the Commission , authorize , as an exception ,
     the placing of contracts after restricted invitations to tender , the conclusion
     of contracts by direct agreement and the performance of contracts through public
     works departments .
3.        The procedures referred to in points 1 and 2 above may be used for operations
     whose estimated cost is less than 3 million ECU .
                                                     Article 14
1.         /"Tunisia 7 shall apply to contracts awarded for the execution of projects
     or schemes financed by the Community fiscal and customs arrangements no less
     favourable than those applied vis~A~vis the aost favoured State or
     AntAraational development organization .
2.         R*e content of the arrangements referred to in paragraph 1 shall be
     established by ssaans of an exchange of letters between the Parties .
                                                                                                 • • •/9 9 •
                                                                                                           E
5647 / 87                                                 don / DJM / bt
( ΑΓΙΓ'ΞΧ I )
 ---pagebreak---                                   Article 15
           / Tunisia^? ©hall take th« necessary measures to ensure
   that Interest and &31 other payments due to the Bank in respect
   of transactions concluded under this Protocol are exempted from
   any national ©r local tax or levy .
                                  Artjlcle 16
           Where a loan is accorded to a beneficiary other than the
   /""Tunis ian_7 State , the provision of a guarantee by the latter or
  of other adequate guarantee ? shall be required by the Bank as a
  condition of the grant of the loan .
                                  Article 17
           Throughout the duration of the loans and risk capital operations
  provided for in Article 2 , /"Tunisia^? shall undertake to :
   ( a ) place at the disposal of the beneficiaries or their guarantors
         the currency necessary for the payment of interest and commission
         and amortization of loans and risk-capital aid granted for
         the implementation of aid measures on their territory ;.
   ( b ) make available to the Bank the foreign currency necessary for
         the transfer of all sums received by it in national currency
         which represent the net revenue and proceeds from transactions
         involving the acquisition by the Community of holdings in
         the capital of companies or firms .
                                 Article 16
          The results of financial and technical co-operation may be
 examined within the Co-operation Council . The latter shall establish ,
 where appropriate , the general guidelines for such co-operation .
                                 Article 19
          One year before the expiry of this Protocol , the Contracting
  Parties shall examine what arrangements could be made for financial
  and technical co-operation during a possible further period .
                                Artide 20
          This Protocol shall be annexed to the Co-operation Agreement
 concluded between the European Economic Community and the
 /"Republic of Tunisia^?.
                                                                  • • •/ . • •
5647 / 87                                     don / DJM / bt                 E
( ANNEX I )
 ---pagebreak---                                                                             \
                                - 18 -
                              Article 21
1.        This Protocol shall be subject to approval in accordance
    with the Contracting Parties' own procedures ; the Contracting
    Parties shall notify one another that the procedures necessary to
    this end have been completed .
2.        This Protocol shall enter into force on the first day of
    the second month following the date on which the notifications
    provided for in paragraph 1 have been given .
                              Article 22
       This Protocol is drawn up in two original copies in the
Danish , Dutch , English , French , German , Greek , Italian , Portuguese ,
Spanish and /"Arabic_7 languages , each of these texts being equally
authentic .
                                                                     ./.
5647 / 87                                                                E
                                              don / DJM/ bt
( ANNEX I )
 ---pagebreak---                                                               ANNEX I
I. Draft statements for entry 5n the minutes of the negotiations
     3 . Joint statement re Article 2(2 )                  A
               " It Is understood that " oil sector" means the extraction ,
         transport ( except for distribution ) in /“Tunisia^ and
         refining ( except for petrochemical processing ) of hydrocarbons
    2 . Joint statement re Article 5(2 )
   ^           "It is understood that the application of Article 5(2 )
         Is subject to the submission of mutually acceptable projects
         by the /”Tunisian_7 Government ".
    3 . § tatement_b£_the_Communi t^_de ] egation_re_Artic ] e_3 2
               " The provisions of the Financial Protocol are without
         prejudice to the general question of the origin of aid eligibl
         for financing by the Bank from its own resources or from risk
         capital and do not , in this connection , affect the exercise
         by the Bank 's bodies of their powers under the Statute of the
         Bank ."
               " The grants for the financing of technical co-operation
         may be used to finance aid originating outside the Community
         and the recipient State , in the event of Joint co-financing
         and where the wisdom of using that type of co-financing has
         been shown ."
                                            *
 5647 / 87                                    don / DJM / bt           £
 ---pagebreak---                     Modifications to the text "Tunisia"
 TUNISIA
          Article 2 par.l : add "224'^million ECU
                II      II   II    la :     If
                                                  "131 "        II        fl
                II      II   II    lb :     II    •ï gyn        II        II
                II      II   ·*
                                   le :     II    it      5.1   II        II
          Cross out foot note of page 2 relative to Article 2 , par . 2
             H       H           H    i«       it       "4             "        " u 3  « 2
             H       u           u    n        u        u     j        ii       u u 4, " 1
 EGYPT
          Replace " Tunisia " by " Egypt "
          Article 2 par . 1              : add "449 " million ECU
              "        »     "      la :      "     " Z49 " million ECU
               "       "     "      lb :      "     " 189': million ECU
               "       "     "      le :      "     " 11 " million ECU
          Cross out foot note of page 2 relative to Article 2 , par . 2
            n       u          ir     K       il       "4         "            u  u 3  " 2
            u       !■         i>     u       n        n     5    i            n  n 4  u 3
ALGERIA
         Replace "Tunisia " by "Algeria"
         Article 2 , par . 1              : add " 239 " million ECU
             II      II       II
                                    la :       II    " 183 "        II       II
             II      II      II
                                    lb :       II
                                                     " 52 «         II       II
             II      II      II
                                    le :       II
                                                     tl     411     II       II
         Croe e out        Article 2 ,      par . 2 and foot note related to it
           "       "       in Article 4 , par . 1 , -the .wards : "Combined with interest
         rate subsidies on the terms set out in Article 2(21 "and the foot
         note ( 1 ).
         Cross out in Article 6 , par . 3 , the wofds : " in the form of interest
         rate subsidies for loans from the Bank or that"
                        (X.              Gj ÿpc* 11 /k
 ---pagebreak--- c
                                        -2-
  JORDAN
         Replace " Tunisia" by " Jordan"
         Article 2 , par . 1    : add " 100 " million ECU
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 ---pagebreak---                                              n
                          Recommendation for a Council Decision
              on the conclusion of a Protocol on financial cooperation
                       between the European Economic Community
                                 and the State of Israel
 THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
 Having regard to the Treaty establishing the European Economic Community ,
 and in particular Article 238 thereof ,
 Having regard to the recommendation from the Commission ,
Having regard to the assent of the European Parliament,
 Whereas the Protocol on financial cooperation between the European Economic
 Community and the State of Israel should be approved ,
 HAS DECIDED AS FOLLOWS :
                                        Article 1
The Protocol on financial cooperation between the European Economic Community
and the State of Israel is hereby approved on behalf of the Community . The
text of the Protocol is attached to this Decision .
 ---pagebreak---                                                гъ
                                           Article 2
The President of   t he Counc i l shal l give the notification provided for in
                                   1
Article  14   of the Protocol
  The date of entry into force of the Protocol will be published in the
 Official Journal of the European Communities by the General Secretariat
  of the Council .
 ---pagebreak---                                  DRAFT PROTOCOL
  relating to financial cooperation between the European Economic Community
                            and the State of Israel
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
of the one part , and
THE STATE OF ISRAEL,
of the other part ,
REAFFIRMING their resolve to implement, under the Mediterranean policy
of the enlarged Community, cooperation which will contribute to the
economic development of Israel and promote the strengthening of relations
between the Community and Israel ,
ANXIOUS to pursue to this end th'e financial cooperation provided for in
the Agreement ,
HAVE DECIDED to conclude this Protocol and to this end have designated as
their plenipotentiaries :
                                    Article 1
The Community shall participate, within the framework of financial
cooperation, in the financing of projects designed to contribute to the
economic development   of Israel .
 ---pagebreak---                               2Ï
                             Article 2
  1 . For the purposes specified in Article I , the
 Community will ask the European Investment Bank
 (hereinafter referred to as ‘the B?"k’) to make available
 to Israel funds of up to 63 mn ECU .          This amount
 may be committed, for a period expiring on 31
 October 1991 , in the form of loans granted in accor­
dance with the conditions, detailed rules and proce­
dures laid down by the Bank’s Statute.
2 . Capital projects helping to increase productivity
and to achieve complementarity between the Contrac­
ting Parties’ economies and promoting, in particular,
the      industrialization . of Israel, which   have  been
submitted to the Bank by the State of Israel or, with
the latter’s agreement, by public or private under­
takings having their seat or a place of business in
Israel, shall be eligible for financing.
3. (a) Examination of the eligibility of the projects
          and the granting of loans shall be undertaken in
          accordance with the detailed rules, conditions
          and procedures laid down by the Bank’s Statute.
     (b) The loans shall, as regards their duration, be
          subject to terms established on the basis of the
          economic and financial characteristics of the
          projects for which these loans are intended, also
          taking into account the conditions obtaining on
          the capital markets on which the Bank procures
          its resources.
     (c) The interest rate shall be determined in accor­
          dance with the Bank's practice at the time of
          signature of each loan contract.
 ---pagebreak---                         Article J
Any funds not committed at the end of the period
referred to in Article 2 ( I ) shall be used until
exhausted . In that case, the funds shall be used in
accordance with the same arrangements as those laid
down in this Protocol .
                       Article 4
Aid contributed by the Bank for the execution of
projects may, with the agreement of Israel, take the
form of co-financing.
                       Article i
The execution , management and maintenance of
schemes which are the subject of financing under this
Protocol shall be the responsibility of Israel or the
other beneficiaries referred to in Article 2.
The   Bank shall    ensure that its  financial aid is
expended in accordance with the agreed allocations
and to the best economic advantage.
                       Article 6
1 . Israel shall apply to contracts awarded
for the execution of projects financed by the
Bank fiscal and customs arrangements no less
favourable than those applied vis-a-vis the
most favoured nation or the most favoured
international development organization .
 ---pagebreak---  2.    Israel shall take the necessary measures to ensure
 that interest and all other payments due to the Bank
 in respect of loans granted under this Protocol are
 exempted from any national or local taxes or levies.
                           Article 7
 Where a loan is granted to a beneficiary other than the
 State of Israel , the provision of a guarantee by the
 latter or other sufficient guarantees shall be
 required by the Bank as a condition of the
 grant of the loan .
                           Article 8
 All natural and legal persons coming within the scope
 of the Treaty establishing the European Economic
 Community and all natural and legal persons of Israel
 may participate on equal terms in tendering proce­
 dures and other procedures for the award of
 contracts which may be financed by the Bank .
 Such legal persons formed in
'accordance with the law of a Member State of the EEC
  or of Israel must have their registered offices, their
  administrative head offices or their principal establish­
  ments in the territories in which the Treaty establi­
  shing the EEC is applied or in Israel ; however, where
  only their registered offices are in those territories or
  in Israel, the activities of such legal persons must be
  effectively and continuously linked with the economy
  of those territories or of Israel .
                           Article 9
  Throughout the duration of the loans granted pursuant
  to this Protocol , Israel shall undertake to make avail­
  able to debtors enjoying such loans and guarantors of
  the loans the foreign currency necessary for the
  payment of interest and commission and the repay­
  ment of capital .
 ---pagebreak---                      0$
                 Artide 10
The results of financial cooperation may be
examined within the Cooperation Cancil .
                 Article 11
One year before this Protocol expires
the Contracting Parties will consider
measures which might be taken during
a new period of financial cooperation.
                 Article 12
This Protocol shall form an integral
part of the Agreement between the European
Economic Comnmity and the State of Israel
signed on 11 May 1975.
                 Article 13
This Protocol is drawn ip in two original
copies in the Danish, Dutch, English,
French, German, Greek, Italian, Portuguese,
Spanish and Hebrew languages, each of
these texts being equally authentic .
 ---pagebreak---                        Article 14
 1.   This Protocol shall be subject to approval in
 accotdance with the Contracting Parties’ own proce­
 dures ; the Contracting Parties shall notify each other
when the proceduies necessary to this end have been
 completed.
 2.   This Protocol shall enter into force on the first
 day of the second month following the date on which
 the notifications provided for in paragraph 1 have
 been given .