CELEX: 51990PC0053
Language: en
Date: 1990-02-09
Title: PROPOSAL FOR A COUNCIL DECISION ON ACCEPTANCE OF THE TERMS OF REFERENCE OF THE INTERNATIONAL COPPER STUDY GROUP

COMMISSION OF THE EUROPEAN COMMUNITIES
                                    C0MC90) 53 final
                                    Brussels, 9 February 1990
                        Proposal for a
                       COUNCIL DECISION
       on acceptance of the Terms of Reference of the
              International Copper Study Group
                (presented by the Commission)
 ---pagebreak---                         Explatatory Memorandum
1. After more than ten years of various forms of
discussion and negotiation, discussion was resumed In
1987 on the establishment of a Copper Study Group. A
negotiating conference was convened following the
consensus reached In November 1987 and after two sessions
(13 to 24 June 1988 and 20 to 24 February 1989) It proved
possible to adopt the text of the terms of reference of
the International Copper Study Group.
During the paragraph-by-paragraph approval of the text,
the United Kingdom entered a formal reservation regarding
paragraph 4(f) (functions of the Group) and the United
Kingdom and Germany entered a formal reservation
regarding paragraph 18 (the Group's activities with a
bearing on market development)
2. The terms of reference approved by the Conference
provide for the establishment of an International Copper
Study Group responsible for major tasks of analysis and
monitoring of the copper market and trade In copper,
conducting consultations on the International copper
economy, Improving access to and availability of
statistics, carrying out relevant studies and undertaking
activities aimed at developing the copper market.
3. Membership of the Group Is open to a I I States
 interested In the production of, the consumption of, or
the International trade In, copper and to any
 Intergovernmental organization having responsibilities In
respect of the negotiation, conclusion and application of
 international agreements, In particular commodity
agreements.
The Group's activities fall under the common commercial
policy. The Community's participation is therefore
necessary in order to prevent It and its Member States
 from being excluded from such an International
 initiative. However, only the participation of States is
taken Into account In determining the entry Into force of
the Group's terms of reference.         It is therefore
necessary that the Member States take part in the Group's
 formation alongside the Community.
4. The Group's terms of reference will enter into force
definitively when States together accounting for at least
80% of trade in copper have notified the Secretary-
General of the United Nations of their acceptance of the
terms of reference. The terms of reference may also
ent.v into force provisionally when accepted by States
 together accounting for at least 60% of trade in copper
have notified the Secretary-General of the United Nations
of thslr accept-1 ce of the terms of reference.         If the
 requirements ro.* entry into force have not been met by 30
 Ju 3 !390, :h-;_ Secretary-General of the United Nations
VY i i • i •)"• ; ':e those States which have notified their
 ---pagebreak--- acceptance to decide whether or not to put the terms of
reference Into force among themselves.
5.   It should be noted that under paragraph 22 of the
terms of reference only States count for the entry Into
force.    If the Commission were to claim exclusive
Community powers under Article 113 of the EEC Treaty,
thereby preventing Member States from participating, It
would be Impossible to establish the Group.
6.   In these circumstances, and since It Is In the
Interest of a I I Member States that the Group be
established, it seems appropriate to conclude a political
agreement with the Member States to ensure their
part icI pat ion.
7. The draft terms of reference have been negotiated by
the Community and Its Member States In accordance with
the common position established by the Council*).
8. The acceptance of the terms of reference Involves
both Community action and Joint action by the Member
States and it is therefore Important that the Community
and Its Member States deposit their instruments of
acceptance simultaneously on the basis of a common
pos11 ion.
9.   The attached proposal for a Council Decision has been
drafted in the above sense, any individual Independent
initiative being an infringement of the EEC Treaty.
 ) See doc. 6626/88 Proba 24.
 ---pagebreak---  Proposal for a Council Decision on acceptance o" the To. m.-
    of Reference of the International Copper Study Group
THE COUNCIL OF THE EUROPEAN COMMUNITIES
Having regard to the Treaty establishing the European
Economic Community, and in particular Articles 113 and 116
thereof,
Having regard to the proposal of the Commission,
Whereas the Terms of Reference of the International Copper
Study Group were adopted at Geneva on 24 February 1989 by
the United Nations Conference on Copper;
Whereas the States and International Organizations that
were Invited to the Conference have been asked to notify
the United Nations Secretary-General of their acceptance of
the Terms of Reference In accordance with Article 20;
Whereas the European Community and its Member States have
participated in the Conference;
Whereas the Study Group will develop an Important activity
of analysis and surveillance of the market and of trade for
copper ;
Whereas acceptance of the Terms of Reference requires both
Community action and concerted action by the Member States;
Whereas, the Community and Its Member States should
therefore, on the basis of a common position, lodge their
instruments of acceptance at the same time.
HAS DECIDED AS FOLLOWS:
                          Article 1
The Terms of Reference of the International Copper Study
Group are hereby accepted by the European Community.
The Community and the Member States that have completed
their internal procedures shall lodge their instruments of
acceptance with the Secretary-General of the United
Nations. The text of the Terms of Reference is annexed
hereto.
 ---pagebreak---                          Article 2
The President of the Council Is hereby authorized to
designate the persons empowered to lodge the Instrument of
acceptance on behalf of the Community.
Done at Brussels,                      For the Council
                                     The President
 ---pagebreak---                                       ANNEX
                            TERMS OF REFERENCE OF THE
                        INTERNATIONAL COPPER STUDY GROUP
                                  Establishment
1.    The International Copper Study Group is hereby established to administer
the provisions and supervise the operation of these terms of reference.
                                    Objective
2.    To ensure enhanced international co-operation on issues concerning
copper, by improving the information available on the international copper
economy and by providing a forum for intergovernmental consultations on copper.
                                   Definitions
3.    (a) "The Group" means the International          Copper   Study   Group  as
constituted in these terms of reference.
      (b) "Copper'" means ores and concentrates of copper; unrefined and
refined copper metal, including secondary copper; copper alloys; scrap,
wastes and residues of copper; semi-manufactured products and such other
products of copper as the Group may determine.
      (c) "Members" means all States and intergovernmental organizations as
provided for in paragraph 5 which have notified their acceptance pursuant to
paragraph 22.
                                    Functions
4.    In pursuance of    its objective,   the Group shall have     the following
functions :
       (a) To conduct consultations     and  exchanges  of  information   on  the
international copper economy;
       (b) To improve-statistics on copper;
      (c) To undertake regular assessments       of  the  market   situation  and
outlook for the world copper industry;
      (d) To undertake studies on issues of interest to the Group;
      (e) To undertake activities related to efforts pursued by other
organizations aimed at developing the market for copper and contributing to
the demand for copper;
 ---pagebreak---                                        - 2-
       if) To consider special problems or difficulties which exist or may
arise in the international copper economy.
The Group shall carry out the above functions without derogating from the
right of every member to manage all aspects of its domestic copper economy and
without prejudice to the competence of other international organizations in
matters falling within their jurisdiction.
                                    Membership
5.    Membership of the Group shall be open to all States which are interested
in the production or consumption of, or international trade in, copper, and to
any intergovernmental organization having responsibilities in respect of the
negotiation, conclusion and application of international agreements, in
particular commodity agreements.
                               Powers of the Group
6.     (a) The Group shall exercise such powers and take action or arrange for
action to be taken as may be necessary to carry out and ensure the application
of the provisions of these terms of reference.
       (b) The Group shall not have the      power, directly or indirectly, to
enter into any contract for the purposes    of trade in copper or in any other
commodity or product, or any contract for    futures transactions; nor shall it
have the power to enter into any financial  obligations for such purposes.
       (c) The Group shall adopt such rules of procedure as are considered
necessary to carry out its functions and which shall be subject to, and not
inconsistent with, these terms of reference.
       (d) The Group shall not have the power and shall not be taken to have
been authorized by its members to incur any obligation outside the scope of
these terms of reference or the rules of procedure.
                                   Headquarters
7.    The Headquarters of the Group shall be at a location selected by it in
the territory of a member State, unless the Group decides otherwise.        The
Group shall negotiate a Headquarters Agreement with the host Government to be
concluded as soon as possible after these terms of reference have entered into
force.
 ---pagebreak---                                                   - 3 -
                                             Decision-making
8.        (a) The highest authority of the Group established under these terms of
reference shall be vested in the General Session.
          (b) The Group, the Standing Committee referred to in paragraph 9, and
such committees and subsidiary bodies as may be established, shall take
decisions by consensus and without a vote, except in the case of decisions for
which a specific voting majority is specified in these terms of reference or
in the rules of procedure.
          (c)      Each member State shall be entitled to one vote.
                                           Standing Committee
9.        (a) The Group shall establish a Standing Committee, which shall consist
of those members of the Group which have indicated their desire to participate
in its work.
          (b) The Standing Committee shall undertake such tasks as may be
assigned to it by the Group and shall report to the Group on completion, or on
the progress, of its work.
                                   Committees and subsidiary bodies
10.       The Group may establish committees or other subsidiary bodies, in
addition to the Standing committee, on such terms and conditions as it may
determine.
                                                Secretariat
11.        (a) The         Group     shall     have        a       Secretariat     consisting  of   a
Secretary-General and such staff as may be required.
           (b) The Secretary-General shall be the chief administrative officer of
the Group and shall be responsible to it for the administration and operation
of these terms of reference in accordance with the decisions of the Group.
                                        Co-operation with others
12.        (a) The Group may make arrangements for consultations or co-operation
with the United Nations, its oigans or specialized agencies, and with other
intergovernmental institutions, as appropriate.
           (b) The Grout may also make arrangements as it considers appropriate
for maintaining oontact with interested non-participating Goveraments, with
other international non-governmental organizations, or with private sector
 institutions, a.~ appropriate.
           •.'.":? OhTî::-v--r? rcr.y bs i.-.vited to attend, meetings of the Group or its
sobs•':. -:\\ -.-;- ' .^ji = s ci îfuoh ter;?*-, r :"•••'" -•-n.'.ii tior.j as the Group or those bodies
ma'-' ô"20 iif .
 ---pagebreak---                                      - 4 -
                        Relationship with the Common Fund
13.   The Group may apply to be designated as an International Commodity Body
(ICB) under article 7 (9) of the Agreement establishing the Common Fund for
Commodities, for the purpose of sponsoring, in accordance with the provisions
of these terms of reference, projects on copper to be financed by the Fund
through its Second Account.      Decisions on the sponsoring of such projects
shall normally be taken by consensus.          If consensus cannot be reached,
decisions shall be taken by a two-thirds majority vote.       The Group shall not
incur any financial obligations in respect of such projects; nor shall it act
as executing agency for any such project.
                                   Legal status
14.   (a) The Group shall have legal personality.       It shall, in particular,
but subject to paragraph 6 (b) above, have the capacity to enter into
contracts, to acquire and to dispose of movable and immovable property, and to
institute legal proceedings.
      (b) The status of the Group in the territory of the host Government
shall be governed by a Headquarters Agreement between the host Government and
the Group.
                               Budget contributions
15.   (a) Each member shall contribute to an annual budget which shall be
approved by the Group in accordance with the provisions of the rules of
procedure. For the purpose of assessing the contributions of members, 50 per
cent of the budget shall be apportioned equally among them; 25 per cent shall
be apportioned among member States in proportion to their shares in the total
exports and imports of member States of copper ores and concentrates, measured
in copper metal content, and unrefined and refined copper; and the remaining
25 per cent shall be apportioned among member States in proportion to their
shares in a total which shall consist of the mine production or refined
consumption of copper of each member State, whichever is the higher.           The
calculation of these shares shall be based on the latest three calendar years
for which statistics are available.
       (b) The Group shall determine the contribution of each member for each
financial year in a currency to be decided by the Group and in accordance with
the provisions for contributions specified in the rules of procedure.          The
payment of the contribution by each member shall be made in accordance with
its constitutional procedures.
       (c) In addition to the budget       contributions,  the  Group  may  accept
donations from external sources.
 ---pagebreak---                                       - 5-
                           Statistics and information
16.   (a) The Group shall collect, collate and make available to members such
statistical information on production, trade, stocks and consumption of
copper, including consumption by specific markets and end-use industries, as
it deems appropriate for the effective operation of these terms of reference,
as well as the information referred to in subparagraph (b) below.
      (b) The Group shall make such arrangements as it considers appropriate
by which information may be exchanged with interested non-participating
Governments and with appropriate non-governmental and intergovernmental
organizations in order to avoid duplication of work and to ensure the
availability of recent, reliable and complete information on production,
consumption, stocks, international trade, internationally recognized published
prices of copper, technology, research and development activities relating to
copper and other factors that influence the demand for and supply of copper.
      (c) The Group shall endeavour to ensure that information made available
by it does not prejudice the confidentiality of the operations of Governments
or persons or enterprises producing, processing, marketing or consuming copper.
                          Annual assessment and reports
17.   (a) The Group shall undertake an annual assessment of the world copper
situation and related matters in the light of information supplied by members
and supplemented by information from all other relevant sources. The annual
assessment shall include a review of anticipated copper production capacity
for future years and an outlook for copper production, consumption and trade
for the following calendar year, for the purpose of assisting members in their
individual assessments of the evolution of the international copper economy.
       (b) The Group shall prepare a report incorporating the results of the
annual assessment and distribute it to members.         If the Group deems it
appropriate, this report, as well as other reports and studies distributed to
members, may be made available to other interested parties in accordance with
the rules of procedure.
                                Market development
 18.   (a) The Group shall hold discussions among members and between members
and   third parties, such, as copper research and market development
organizations, on ways and means of increasing the demand and developing the
market for copper. Within this framework the studies done by the Group in
support of market development will be disseminated to copper development
organizations for their use in preparing market development project proposals
to be submitted to the Group for consideration. Execution of these projects
will be undertaken by market development organizations. The Group may select
and sponsor projects to be financed by the Common Fund through its Second
Account.
       (b) The Group shall offer to facilitate co-ordination between market
development organizations and support the extension of market development
activities.
 ---pagebreak---                                          - 6 -
                                       Studies
19.   (a) The Group shall undertake or make appropriate arrangements to
undertake ad hoc studies related to the international copper economy as may be
agreed by the Group.
      (b) The studies may contain general recommendations or suggestions to
the Group but such recommendations or suggestions shall not derogate from the
right of every member to manage all aspects of its domestic copper economy and
shall be without prejudice to the competence of other international
organizations : in matters falling within their jurisdiction.
                               Obligations of members
20.   Members shall use their best endeavours to co-operate and to promote the
attainment of the objective of the Group, in particular by providing the data
referred to in paragraph 16 (a).
                                      Amendment
21.   These terms of reference may be amended only by consensus of the Group.
                                  Entry into force
22.    (a) These terms of reference shall enter into force definitively when
States together accounting for at least 80 per cent of trade in copper, as set
out in the annex to these terms of reference, have notified the
Secretary-General of the United Nations (hereinafter referred to as "the
depositary") pursuant to subparagraph (c) below of their definitive acceptance
of these terms of reference.
       (b) These terms of reference shall enter into force provisionally when
States together accounting for at least 60 per cent of trade in copper, as set
out in the annex to these terms of reference, have notified the depositary
pursuant to subparagraph (c) below of their provisional or definitive
acceptance of these terms of reference.
       (c) Any State or any intergovernmental organization referred to in
paragraph 5 which desires to become a member of the Group shall notify the
depositary that it accepts these terms of reference either provisionally,
pending the conclusion of its internal procedures, or definitively. Any State
or intergovernmental      organization which has notified its provisional
acceptance of these terms of reference shall endeavour to complete its
procedures within 36 months of the date of entry into force of these terms of
reference or the date of its notification of provisional acceptance, whichever
is the later, and shall notify the depositary accordingly. Where a State or
intergovernmental organization is not able to complete its procedures within
the time limit referred to above, the Group may grant an extension of time to
the State or intergovernmental organization concerned.
 ---pagebreak---                                          - 7-
       (d) If the requirements for entry into force of these terms of
reference have not been met on 30 June 1990. the depositary shall invite those
States    and  intergovernmental    organizations   that have notified    their
provisional or definitive acceptance of these terras of reference to decide
whether or not to put these terms of reference into force provisionally or
definitively among themselves.
       (e) When these terms of reference enter into force, the depositary
shall convene an inaugural meeting of the Group as soon as possible
thereafter. Members shall be notified at least one month, where possible,
prior to that meeting.
                                     Withdrawal
23.    (a) A member may withdraw from the Group at any time by giving written
notice of withdrawal to the depositary and to the Secretary-General of the
Group.
       (b) withdrawal shall be without prejudice to any financial obligations
already incurred by the withdrawing member and shall not entitle it to any
rebate of its contribution for the year in which the withdrawal occurs.
       (c) Withdrawal shall    become   effective 60 days after  the notice is
received by the depositary.
       (d) The Secretary-General of the Group shall promptly        notify each
member of any notification received under this paragraph.
                                     Termination
24.    (a) The Group may at any time decide by a two-thirds majority vote of
member States to terminate these terms of reference. Such termination shall
take effect on such date as the Group shall decide.
       (b) Nothwithstanding the termination of these terms of reference, the
Group shall continue in being for as long as it is necessary to carry out its
liquidation, including the settlement of accounts.
                                    Reservations
25.    No reservations may be made to any of the provisions of these terras of
reference.
 ---pagebreak---                                       Annex
                                                        - 8 -
                               TRADE IN COPPER a/ S
Count rjy                         Kxpor toj    IIDliQLiii     Total trade    Share
                                            (thousand t o n n e s )) - - - (per cent)
Australia                          150                              150.7     1.41
Austria                             24            13.3               37.5    0.35
Belgium-Luxembourg                 222           430.9              653.5    6.12
Bolivia                              1                                1.0    0.01
Brazil                               2           153.8              156.1     1.46
Bulgaria                             1              2.0               3.0    0.03
Canada                             635            78.7              713.8    6.69
Chile                             1308                             1308.0   12.26
China                                7.0         358                365.9    3.43
Cuba                                 2.7            6                 9.2    0.09
Denmark                              2              1,                4.3    0.04
Finland                             21            54                 76.4    0.72
France                              15           358                373.8    3.50
German Democratic Republic          13            62.5               76.0    0.71
Germany, Federal Republic of        70.7         713.0              783.7    7.34
Greece                                            23.7               23.7    0.22
Hungary                                           34.0               34.0    0.32
India                                             64.6               64.6    0.61
Indonesia                           90.4          17.4              107.8     1.01
Iran (Islamic Republic of)          41.7                             41.7    0.39
Ireland                              0.9            0.2               1.1    0.01
Italy                               13.1         355.7              368.8    3.46
Japan                               55.4        1217.1             1272.5   11.92
Madagascar
Mexico                             122.0            5.0             127.0     1.19
Netherlands                          7.6          23.1               30.7    0.29
Norway                              53.5          12.0               65.5    0.61
Panama
Papua New Guinea                   171.5                            171.5     1.61
Peru                               343.4                            343.4    3.22
Philippines                        217.1                            217.1    2.03
Poland                             177.1          18                195.5     1.83
Portugal                             3.1          16                 19.8    0.19
Republic of Korea                    4.2         177                182.1     1.71
Spain                               86.4          97,               183.4     1.72
Sweden                              81.6          81                163.5     1.53
Thailand                                          17                 17.6    0.16
Turkey                                            46                 46.3    0.43
Union of Soviet Socialist
  Republics                        103.3          23.6              126.9    1.19
United Kingdom of Great Britain
  and Northern Ireland              32.1         324.5              356.6    3.34
United States of America           187.9         529.1              717.0    6.72
Yugoslavia                          16.5          34.5               51.0    0.48
Zaire                              508.4              .             508.4    4.76
Zambia                             500.5          20.0              520.5    4.88
                        L-OTAL    5296.0       5374.9           10670.9    100.00
a/ Annual average for the period 1984-1986 of imports and exports of ores and
concentrates, measured in copper metal content, and unrefined and refined
copper for "ountrie? which participated in the United Nations Conference on
Copper, 1438.
 ---pagebreak---               INTERNATIONAL COPPER STUDY GROUP
FINANCIAL STATEMENT
1.    Budget heading: B 7730
      Operations relating to industry
      (Non-differentiated appropriations)
2.    Legal basis:
      Articles 113 and 116 of the EEC Treaty.
3.    Proposed classification
      Not applicable.
4.    Description of the opération and grounds
      4.1.     Objectives:     International Copper Study Group
      4.2.     Those concerned:        copper producers and consumers
5.    Nature of expenditure and method of calculation
      Contribution to the annual budget of the Group in the form of a
      share equal to 50% of the budget (see paragraph 15 of the Terms
      of Reference).       Assuming that the Study Group will have a
      membership of about 20 and that the budget should be some
      ECU 750 000, the calculation is as follows:
      (ECU 750 000 f 2) = 20 = ECU 18 750 or ECU 20 000 in round
      figures
6.    The operation's financial implications on running costs
      Approximately ECU 20 000 annually.
7.    Comments
      None.
                                                                      lk
 ---pagebreak---                                                                      ISSN 0254-1475
                                                               COM(90) 53 final
                                                      DOCUMENTS
EN                                                                              16
                                Catalogue number : CB-CO-90-019-EN-C
                                                             ISBN 92-77-56825-9
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