CELEX: 51975PC0123
Language: en
Date: 1975-03-26 00:00:00
Title: Recommendation for a DECISION (EEC) OF THE COUNCIL concerning the negotiation with the People's Republic of Bangladesh with a view to the conclusion of a commercial cooperation agreement (submitted to the Council by the Commission)

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COM (75) 123
Vol. 1975/0042
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 ---pagebreak--- COMMISSION OF THE BUKOI2ÂN COMMUMTIBS
                                                              COM(75)123 final
                                                              Brussels , 26 March 1975
                                  Recommendation for a
                             DE CISION ( EEC ) OF THE COUNCIL
                    concerning the negotiation with the People 's
                       Republic of Bangladesh with a view to the
                  conclusion of a commercial cooperation agreement
                    ( submitted to the Council "by the Commission)
  C0il(7 ^) 123 final
 ---pagebreak---                                EXPLANATORY MEMORANDUM
      In the Council Directives for the negotiation of a Commercial Cooperation
Agreement ( CCA ) between the Community and Bangladesh (l ), the Commission
was requested to explore the terms on which the Community could obtain an
undertaking from Bangladesh with regard to non-discriminatory access to
its natural resources .
      A series of preliminary meetings have'feen held "between representatives
of the Commission and representatives of Bangladesh to shed light on the
approach of both sides to this problem .
      The Government of Bangladesh is not willing to enter into a general
commitment which would give the Community non-discriminatory access to all
its natural resources .      II would however , readily condiser co-operation
within specified sectors on tertis that would give the Community access to
the natural resources related to such sectors , provided that this offer would .
lead to investments by Community enterprises which , in turn , would contri -.
bute significantly to the economic development of their counctry . Further , .
Bangladesh is       prepared to guarantee such investments .
                           for
      The natural forum defining in the long terra specific areas for the
type of co-operation envisaged is obvious ^ the Joint Commission to be set
up under the Agreement' .
      The present legislation of Bangladesh guarantees foreign investors
against nationalisation for a period of ten years after the date of
acquisition of an interest in a particular venture .       The Bangladesh repre­
sentatives indicated , however , that their Government are prepared to
increase the guarantees in favour of investors who would engage in projects
which had been selected after consultation within the framework of the CCA .
( l ) Doc . S/ IO21 /75 ( COMER 196 ) of 30 September 1974 and Corr. 1 of 8 October
 ---pagebreak---        Bangladesh ranks to-day as one of the poorest among the developing
Countries .   Yet , even though prospecting has "been so far on a limited scale ,
it is known that the country possesses certain potential resources which
could contribute significantly to its development and , concurrently, supply
overseas partners with needed requirements .     In particular , it was reported ( l )
in 1973 that Bangladesh disposes , in the Bay of Bengal , of .deposits of
natural, gas of a unique degree of purity and in quantities estimated at some
8-9 trillion cubic feet .    There are also indications of oil reserves .
   '  It is the opinion of the Commission that the terms on which Bangladesh
is prepared to offer aocess to its natural resources could be of advantage
for the trading interests of the Community and , simultaneously , could fawur
a novel form of co-operation which would bring genuine social and economic
progress to a non-associated developing country .
       For the Commission to engage in negotiation on these lines , however ,
would seem to call for a modification on the negotiation directives to .
include Gommunity access on a non-reciprocal basis to the natural resources
of Bangladesh in specified ' sectors , on the understanding that the Community
will promote investments in these sectors by Community enterprises and that
Bangladesh will offer satisfactory guarantees for such investments .
       To this end , the Commission recommends that the Council modify in the
manner suggested its negotiation directives in the matter of access to
natural resources and , to that effect , adopt the "Recommendation for a
Decision (EEC ) of the Council " appended herewith . .
( l ) International Bank for Reconstruction and Development , Report No 455a-BD
 ---pagebreak---         Recommendation for a DECISION ( EEC ) OF THE COUNCIL
concerning the negotiation with the People 's Republic of Bangladesh
  with a view to the conclusion of a commercial cooperation agreement
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
and in particular Article 113 thereof ,
Having re/jard to the recommendation of the Commission ,
Whereas the Council , by its Decision of 15 October 1974 » authorized the
Commission to open negotiations with a view to the conclusion of a
commercial cooperation agreement between European Economic Community and
the People 's Republic of Bangladesh ;
     Whereas , in view of the outcome of exploratory talks with the
representatives of Bangladesh , it appears necessary , in regard to the
conditions of access by the Community to the natural resources of that
country, to modify the directives appended to the above-mentioned
Decision ,
HAS DECIDED:                SOLE ARTICLE
     Chapter B.IV, entitled "Access to natural resources ", of the
negotiation directives appended to the Council 's Decision ( EEC ) of
15 October 1974 authorizing the Commission to open negotiations with
the People 's Republic of Bangladesh with a view to the conclusions of
a commercial cooperation agreement , is replaced by the text given in the
Annexe hereto .
Dore at Brussels ,                                  For the Council
                                                    The Président ,
 ---pagebreak---                                                              AMEXE
 IV.   Access to natural resources in Bangladesh
       The Commission shall endeavour to obtain the inclusion in the
 Agreer.ent of provisions securing for the Community non-discri ninatory
 acccse to the natural resources of Bangladesh in such sectors as might
"be rc-iconrnended by the Joint Commission . These provisions would also
relate , on the one hand , to special state guarantees which mijht be
 extended by Bangladesh to Community enterprises investing in these
                  r
 sectors and , on the other hand , to the measures which the Coinroinity
might take to promote such investments .