CELEX: 51987PC0529
Language: en
Date: 1987-10-29 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 Lebanese Republic (presented by the Commission)

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DOCUMENTS "COM"
COM (87) 529
Vol. 1987/0265
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                     COM(87 ) 529 final
                                                     Brussels , 29 October 1987
                                  Recommendation for a
                                      COUNCIL DECISION
  on the conclusion of a Protocol on financial and technical cooperation
              between the European Economic Community and the
                                     Lebanese Republic
                           ( presented by the Commission )
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  C0MC87 ) 529 final
 ---pagebreak---                                                г-
 1.  On 25 November 1985 the rognrU adopted negotiating Directives authorizing
     the Commission to enter ;;;to negotiations with Algeria, Egypt , Israel ,
     Jordan, Lebanon, Morocco, Syria and Tunisia with a view to concluding new
0
    Protocols on financial and technical cooperation .    On 30 March 1987 the
    Council supplemented these Directives .
     Following Egypt , Tunisia , Israel , Jordan and Algeria , negotiations
     have also been completed with Lebanon .
    The chairmen of the respective delegations have initialled the text of the
    draft Protocol .
    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 :
                             O.
    -a recommendation     for Council decision: on the conclusion of a Protocol
                             Λ
          on financial and technical cooperation, with Lebanon
        »
          annexed to the recommendation:;, the text of the draft Protocol ..
                                                    *
                                                                 i
 ---pagebreak--- PREAMBLE
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
of the one part , and
THE PRESIDENT OF    THE REPUBLIC OF LEBANON
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 and social development of. Lebanon
and promote the strengthening of relations betweert the Community'
»n rf Lebanon .
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 :
                                                              e • ./ • •
                                                                         E
 ---pagebreak---                                      Artide 2
The President of the Council shall give the notification provided for
in Article 21 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---                                      -S -
2.        The risk capital referred to in paragraph 1(c ) shall
   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 Lebanon            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
          Lebanon     »
   ( d ) finance for the acquisition of holdings , in the form of
         conditional loans granted to Lebanon          or , with the
          Lebanese      Government ' s agreeroant , to  Lebanese
         undertakings , either directly or through the intermediary of
            Lebanese    financial institutions .
                                                                        £
 ---pagebreak---                             Article 3
     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 Lebanon 's     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
  Lebanon      in their mutual interest by developing co-operation
  in the fields of industry , training and research , technology ,
  commerce and other services ;
- ragionai and multilateral co-operation .
     Economic infrastructure and industrial development which are
complementary to the above operations may also be financed .
     Of the eligible projects and operations priority shall be
given to those having the following aims :
- in the agricultural' sector , developing the production of
  agricultural products in short supply , particularly food crops ,
  inter alia in the framework of multi annual programmes and
  operations in the context ©f the national food strategy
  For maximum effectiveness , concentration of resources in
  specific sectors shall be sought ;
 ---pagebreak---                                     - H» ~
   - in the industrial and service sectors , promotion of .joint
       venture a between firms from the Community Member States and
        Lebanese      firms , direct contacts , exchange of information ,
       promotion of investment , contribution of private capital , and
       support for small and medium-si zed enterprises , including craft
       foulnesses , in order to promote employment ;
   - in the field of science and technology , expansion of Lebanon
       training and research capability and establishment or development
       of links between Lebanon          and European private and public
       training and research institutions ;
   - in the trade' sector , diversification and promotion of exports and
       organization of contacts between Lebanese          firms and firms
       from the Cømmunity Kember 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 4
1.         Capital projects shall fee eligible for financing either
   toy loans from the Bank ,
                                                  , er by risk capital ,
    2>r by grants , or toy a combination of these seana .
2.         Technical and economic co-operation shall Ror-’&l ly fee fi nance u
                                                                    ■ï • o / * <ï *
                                                                                  E
 ---pagebreak---                             Article 5
                                                                          A*
1*        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 .
   Zn 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 uccordance with the arrangements , 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 ,
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 .
                      intended for risk capital operations , shall
   be granted and administered by the Commission .
4.        The funds referred to in Article 2 may be granted
   through the intermediary of the State or appropriate
    l_ebcLT>ese   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 .
                                                          • • • / • • •
                                                                      £
 ---pagebreak---                                     - ц.-
                                 Article 7
       Aid contributed by the Community for the execution of
certain projects may , with the agreement of Lebanon             t
take the form of co-financing in which , in ©articular , credit
and development bodies and institutions Of Lebanon              , Of
Member States or of third States or international finance
organisations would take oart .
                                 Article B
      The following shall be eligible for financial and technical
co-operation :
( a ) in general :
      - the     Lebanese    State ,
( b ) with the agreement of the Lebanese          Government , for
      projects or operations approved by it :
      - official   Lebanese    ,   ievelopment agencies ,
      - private agencies working in Lebanon          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          Lebanon         and ,
        exceptionally , where no such groups exist , the producers
        themselves ,
      - scholarship holders and trainees sent by Lebanon                  under
        the training schemes referred to in Article 3 .
                                                                   • • • /...
                                                                            E
 ---pagebreak---                                 -'a -
                              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 Lebanon        shall , taking
   information provided by lebanon       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 Lehanon        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      Lebanon 's   economic situation
   or in the objectives and priorities laid down by its development
   plan .
4.        The Community and Lebanon     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 .
                                                                          E
 ---pagebreak---                               Artide 10
     Within the framework laid down in accordance with Article 9 ,
the Lebanese       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 .
     The Community shall appraise the requests for financing in
collaboration with the competent Lebanese         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
     The execution , management and maintenance of schemes that
are the subject of financing under this Protocol shall be the
responsibility of     Lebanon     or of the other beneficiaries
referred to in Article 8 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 .
     The projects and action programmes shall be the subject of
appropriate evaluation , the outcome of which shall be communicated
to both parties , whicf* shall take appropriate measures by mutual
agreement .
     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      Lebanon
upon conclusion of this Protocol .
 ---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 Lebanon
 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
 European Economic Community and      the Republic of Lebanon   , 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 Lebanon    is hereby approved on
behalf of the Community . The text of the Protocol is attached to this
Decision .
                  /
 ---pagebreak---                                     Article 2
The President of the Council shall give the notification provided for
in Article 21 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---                                      –    –
                                                                                  w
                                    Artide 15
            Lebanon     ^bal 1 take the necessary measures to ensure
 that Interest and all other payments due to the Bank In respect
 of transactions concluded under this Protocol are exempted from
 any national or local tax or levy .
                                   Article 16
        Where a loan is accorded to a beneficiary other than the
  Lebanese        State , the provision of a guarantee by the latter or
 of other adequate guarantees 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 , Lebanon            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 18
        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 .
                                  Article 20
        This Protocol shall be annexed to the Co-operation Agreement
concluded between the European Economic Community and the
  Republic of Lebanon .
                                                                    • • • / • « •
                                                                                E
 ---pagebreak---                                                                               U ,
                                - щ-
                              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    languages , each of these texts being equally
authentic .
                                                                   • • /• • •
                                                                           £
 ---pagebreak---                                    - J 1-
                                                                 ANNEX I
!• Draft statements for entry in the minutes of the negotiations
                                                         0
    1-
   t          " It is understood that the application ©f Article 5(2 )
        is subject to the submission of mutually acceptable projects
        by the    Lebanese     Government ".
     2•                    _Ç£!!!!I!£Di*£_SJeleg&tien_r®_Articl e«!§
              " The provisions of the Financial Protocol are without
        prejudice to the general question of the origin of aid eligible
        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 ©f technical co-operation
        saay be used to finance aid originating outside the Community
        smd the recipient State , in the event ©f Joint            financing
        ®nu where the wisdom ©f using that type ©f ©©-financing has
        been shown ."
                                                                            1