CELEX: 21964A1229(01)
Language: en
Date: 1963-09-12 00:00:00
Title: Agreement establishing an Association between the European Economic Community and Turkey - Protocol 1: Provisional Protocol - Protocol 2: Financial Protocol - Final Act - Declarations

31 . 12. 77                        Official Journal of the European Communities                               No L 361 /29
                                                    AGREEMENT
            establishing an Association between the European Economic Community and Turkey
                                       ( signed at Ankara, 12 September 1963 )
                                                      PREAMBLE
            HIS MAJESTY THE KING OF THE BELGIANS ,
            THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY,
            THE PRESIDENT OF THE FRENCH REPUBLIC,
            THE PRESIDENT OF THE ITALIAN REPUBLIC,
            HER ROYAL HIGHNESS THE GRAND DUCHESS OF LUXEMBOURG ,
            HER MAJESTY THE QUEEN OF THE NETHERLANDS,
            and
            THE COUNCIL OF THE EUROPEAN ECONOMIC COMMUNITY, ...
            of the one part, and
            THE PRESIDENT OF THE REPUBLIC OF TURKEY,
            of the other part,
            DETERMINED to establish ever closer bonds between the Turkish people and the peoples
            brought together in the European Economic Community;
            RESOLVED to ensure a continuous improvement in living conditions in Turkey and in the
            European Economic Community through accelerated economic progress and the harmonious
            expansion of trade, and to reduce the disparity between the Turkish economy and the econo­
            mies of the Member States of the Community ;
            MINDFUL both of the special problems presented by the development of the Turkish economy
            and of the need to grant economic aid to Turkey during a given period ;
            RECOGNIZING that the support given by the European Economic Community to the efforts
            of the Turkish people to improve their standard of living will facilitate the accession of Turkey
            to the Community at a later date ;
            RESOLVED to preserve and strengthen peace and liberty by joint pursuit of the ideals
            underlying the Treaty establishing the European Economic Community;
            HAVE DECIDED to conclude an Agreement establishing an Association between the European
            Economic Community and Turkey in accordance with Article 238 of the Treaty establishing the
            European Economic Community, and to this end have designated as their Plenipotentiaries :
 ---pagebreak--- No L 361 /30                     Official Journal of the European Communities                      31 . 12 . 77
             HIS MAJESTY THE KING OF THE BELGIANS :
                        Mr Paul-Henri SPAAK,
                        Deputy Prime Minister and Minister for Foreign Affairs ;
             THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY :
                        Dr. Gerhard SCHRÖDER,
                        Minister for Foreign Affairs ;
             THE PRESIDENT OF THE FRENCH REPUBLIC :
                        Mr Maurice COUVE DE MURVILLE ,
                        Minister for Foreign Affairs ;
             THE PRESIDENT OF THE ITALIAN REPUBLIC :
                        Mr Emilio COLOMBO ,
                        Minister for the Treasury ;
             HER ROYAL HIGHNESS THE GRAND DUCHESS OF LUXEMBOURG :
                         Mr Eugene SCHAUS ,
                         Vice-President of the Government and Minister for Foreign Affairs ;
             HER MAJESTY THE QUEEN OF THE NETHERLANDS :
                         Mr Joseph M. A. H. LUNS,
                         Minister for Foreign Affairs ;
             THE COUNCIL OF THE EUROPEAN ECONOMIC COMMUNITY :
                         Mr Joseph M. A. H. LUNS,
                         President in Office of the Council of the European Economic Community and
                         Minister for Foreign Affairs in the Netherlands ;
             THE PRESIDENT OF THE REPUBLIC OF TURKEY :
                         Mr Feridun Cemal ERKIN,
                         Minister for Foreign Affairs ;
              WHO, having exchanged their Full Powers, found in good and due form,
              HAVE AGREED AS FOLLOWS :
 ---pagebreak--- 31 . 12, 77                          Official Journal of the European Communities                            No L 361 / 31
                                                         TITLE I
                                                      PRINCIPLES
                          Article 1                                                     Article 4
By this Agreement an Association is established                 1.    During the transitional stage the Contracting
between the European Economic Community and                     Parties shall , on the basis of - mutual -- and balanced
Turkey.                                                         obligations :
                                                                — establish progressively -a customs union between
                          Article 2                                 Turkey and the Community ;
1.      The aim of this Agreement is to promote the             — align the economic policies of Turkey and the
continuous and balanced strengthening of trade and                  Community - more closely - in order to ensure the
economic relations between the Parties , while taking               proper functioning of the Association and the
full account of the need to ensure an accelerated                   progress of the joint measures which this requires .
development of the Turkish economy and to improve
the level of employment and the living conditions of
the Turkish people .                                            2.    This stage shall last-not more than twelve years ,
                                                                subject -to such exceptions as may be made by mutual
                                                                agreement. The exceptions must not impede the final
2.      In order to attain the objectives set out in            establishment    of - the   customs   union    within    a
paragraph 1 , a customs union shall be progressively            reasonable period .
established in accordance with Article 3 , 4 and 5 .
3.      Association shall comprise :                                                    Article 5
( a ) a preparatory stage ;                                     The final stage shall be based on the customs union
                                                                and shall entail closer coordination of the economic
( b ) a transitional stage ;                                    policies of the Contracting Parties .
( c ) a final stage .
                                                                                        Article 6
                          Article 3
                                                                To ensure the implementation and the progressive
1.      During the preparatory stage Turkey shall , with        development of the Association , the Contracting
aid from the Community, strengthen its economy so               Parties shall meet in a Council of Association which
as to enable it to fulfil the obligations which will            shall act within the powers conferred upon it by this
devolve upon it during the transitional and final               Agreement .
stages .
The detailed rules for this preparatory stage , in
particular those for aid from the Community, are set
out in the Provisional Protocol and in the Financial                                    Article 7
Protocol to this Agreement.
                                                                The Contracting Parties shall take all appropriate
                                                                measures , whether general or particular, to ensure the
2.      The preparatory stage shall last five years,            fulfilment of the obligations arising from this
unless it should be extended in accordance with the             Agreement .
conditions laid down in the Provisional Protocol .
The change-over to the "transitional stage shall be             They shall refrain from any measures liable to
effected in accordance         with  Article   1  of   the      jeopardize the attainment of the objectives of this
Provisional Protocol .                                          Agreement .
 ---pagebreak--- No L 361 /32                       Otficial Journal of the European Communities                             31 . 12 . 77
                                                      TITLE II
                            IMPLEMENTATION OF THE TRANSITIONAL STAGE
                       Article 8                                                      Chapter 2
In order to attain the objectives set out in Article 4,                              Agriculture
the Council of Association shall , before the beginning
of the transitional stage and in accordance writh the                                 Article 11
procedure laid down in Article 1 of the Provisional
Protocol , determine the conditions , rules and               1.     The   Association    shall  likewise extend      to
timetables for the implementation of the provisions           agriculture and trade in agricultural products, in
relating to the fields covered by- the Treaty                 accordance with special rules which shall take into
establishing the Community which must be                      account the common agricultural policy of the
considered ; this shall apply in particular to such of        Community .
those fields as* are mentioned under this Title and to
any protective clause which may prove appropriate .
                                                              2.     'Agricultural products' means the products listed
                                                              in Annex II to the Treaty establishing the Com­
                        Article 9                             munity, as at present supplemented in accordance
                                                              with Article 38 (3 ) of that Treaty.
The Contracting Parties recognize that within the
scope of this Agreement -and without prejudice to any
special provisions which may be laid down pursuant                                    Chapter 3
to Article 8 , any discrimination on grounds of
nationality shall be prohibited in accordance with the                       Other economic provisions
principle laid down in - Article 7 of the Treaty
establishing the Community.                                                           Article 12
                                                              The Contracting Parties agree to be guided by
                                                              Articles 48 , 49 and 50 of the Treaty establishing the
                       Chapter 1                              Community for the purpose of progressively securing
                                                              freedom of movement for workers between them .
                   The customs union
                                                                                      Article 13
                       Article 10
                                                              The Contracting Parties agree to be guided by
                                                              Articles 52 to 56 and Article 58 of the Treaty
 1.    The customs union provided for in Article 2 (2)        establishing the Community for the purpose of
of this Agreement shall cover all trade in goods .            abolishing restrictions on freedom of establishment
                                                              between them .
2.     The customs union shall involve :
— the prohibition between Member States of the                                       Article 14
    Community and Turkey, of customs duties on
    imports and exports and of all charges having             The Contracting Parties agree to be guided by
    equivalent effect, quantitative restrictions and all      Articles 55 , 56 and 58 to 65 of the Treaty establishing
    other measures having equivalent effect which are          the Community for the purpose of abolishing
    designed to protect national production in a               restrictions on freedom to provide services between
    manner contrary to the objectives of this                 them .
    Agreement ;
 — the adoption by Turkey of the Common Customs                                       Article IS
    Tariff of the Community in its trade with third
     countries , and an approximation to the other             The rules and conditions for extension to Turkey of
    Community rules on external trade .                        the transport provisions contained in the Treaty
 ---pagebreak--- 31 . 12. 77                          Official Journal of the European Communities                           No L 361 /33
establishing the Community, and measures adopted                in ; which the creditor or the beneficiary resides, any
in implementation of those provisions shall be laid             payments or transfers connected with the movement
down with due regard to the geographical situation              of goods , services or capital, and any transfers of
of Turkey.                                                      capital or earnings, to the extent that the movement
                                                                of goods, services, capital and persons between them
                                                                has been liberalized pursuant to this Agreement.
                        Article 16
The Contracting Parties recognize that the principles
laid down in the provisions on competition, taxation                                    Article 20
and the approximation of laws contained in -Title I of
Part III of the Treaty establishing the Community
must be made applicable in their relations within the           The Contracting Parties shall consult each other with
Association .                                                   a view to facilitating movements of capital between
                                                                Member States of the Community and Turkey which
                                                                will further the objectives of this Agreement.
                        Article - 17
                                                                They shall actively seek all means of promoting the
Each State party to this Agreement shall pursue the             investment in Turkey of capital from countries of the
economic policy needed to ensure the equilibrium of             Community which can contribute to Turkish
its overall balance of payments and to maintain                 economic development.
confidence in its currency, while taking care to ensure
a continuous, balanced growth of its economy in
conjunction with stable prices .                                 With respect to arrangements for foreign capital
                                                                 residents of all Member States shall be entitled to all
 Each State party to this Agreement shall pursue a               the advantages, in particular as regards currency and
 conjunctural policy, in particular a financial and              taxation, which Turkey accords to any other
 monetary policy, which furthers these objectives .              Member State or to a third country.
                        Article 18
                                                                                         Article 21
 Each State party to this Agreement shall pursue a
policy with regard to rates of exchange which ensures
 that the objectives of the Association can be attained .        The Contracting Parties hereby agree to work out a
                                                                 consultation      procedure    in   order ' to  ensure
                                                                 coordination of their commercial policies towards
                        Article 19                               third countries and mutual respect for their interests
                                                                 in this field , inter alia in the event of subsequent
 The Member States of the Community and Turkey                   accession to or association with the Community, by
 undertake to authorize, in the curency of the country           third countries .
                                                        TITLE 111
                                        GENERAL AND FINAL PROVISIONS
                         Article 22                               of the objectives of this Agreement. During the
                                                                 preparatory stage, however, such reviews shall be
 1.    In order to attain the objectives of this                 limited to an exchange of views .
 Agreement the Council of Association shall have the
 power to take decisions in the cases provided for
 therein . Each of the Parties shall take the measures           3.     Once the transitional stage has been embarked
 necessary to implement the decisions taken . The                 on, the Council of Association ' shall adopt
 Council of Association may also make appropriate                 appropriate decisions where, in the course of
 recommendations .                                                implementation of the Association arrangements,
                                                                  attainment of an objective of this Agreement calls for
 2.    The Council of Association shall periodically              joint action by the Contracting Parties but the
 review the functioning of the Association in the light           requisite powers are not granted in this Agreement.
 ---pagebreak---  No L 361 /34                      Official Journal of the European Communities                             31.-12 . 77
                       Article 23                              for arbitration or for any other judicial procedure to
                                                               which the Contracting Parties may resort during the
 The Council of Association shall consist of members           transitional and final stages of this Agreement.
 of the Governments of the Member States and
 members of the Council and of the Commission of
                                                                                      Article 26
 the Community on the one hand and of members of
 the Turkish Government on the other .                         This Agreement shall not apply to products within
                                                               the province of the European Coal and Steel
 The members of the Council of Association may                 Community.
 arrange to be represented in accordance with its rules
 of procedure.                                                                        Article 27
 The Council of Association shall act unanimously.             The Council of Association shall take all appropriate
                                                              steps to promote the necessary cooperation and
                                                              contacts between the European Parliament, the
                        Article 24                            Economic and Social Committee and other organs of
                                                              the Community on the one hand and the Turkish
 The office of President of the Council of Association        Parliament and the corresponding organs in Turkey
                                                              on the other.
 shall be- held for a term of six months by a
 representative of the Community and a representative
 of Turkey alternately. The term of office of the first       During the preparatory state, however, such contacts
President may be shortened by a decision of the               shall be limited to relations between the European
 Council of Association .                                     Parliament and the Turkish Parliament.
 The Council of Association shall adopt its rules of                                  Article 28
 procedure.
                                                              As soon as the operation of this Agreement has
The Council of Association may decide to set up               advanced ; far enough to ; justify envisaging . full
committees to assist in the performance of its tasks,         acceptance by . Turkey of the obligations arising out
and in particular a committee to ensure the                   of the Treaty establishing the Community, the
continuing . cooperation necessary for the proper             Contracting Parties shall examine the possibility of
functioning of this Agreement.                                the accession of Turkey to the Community.
The Council of Association shall lay down the terms                                   Article 29
of reference of these committees .
                                                              1 . This Agreement shall apply to the European
                                                              territories of the Kingdom of Belgium , of the Federal
                       Article 25                             Republic of Germany, of the French Republic, of the
                                                              Italian Republic, of the Grand Duchy of Luxembourg
                                                              and of the Kingdom of the Netherlands on the one
1 . The Contracting Parties may submit to the                 hand and to the territory of the Turkish Republic on
Council of Association any dispute relating to the            the other .
application or interpretation of this Agreement which
concerns the Community, a Member State of the                2.     The Agreement shall also apply to the French
Community, or Turkey.                                        overseas departments so far as concerns those of the
                                                             fields covered by it which are listed in the first
2 . The Council of Association may settle the                subparagraph of Article 227 (2) of the Treaty
dispute by decision ; it may also decide to submit the       establishing the Community.
dispute to the Court of Justice of the European
Communities or to any other existing court or                The conditions for applying to those territories the
tribunal .                                                   provisions of this Agreement relating to other fields
                                                             shall be decided at a later date by agreement between
3.    Each Party shall be required to take the               the Contracting Parties .
measures necessary to comply with such decisions .
                                                                                     Article 30
4.    Where the dispute cannot be settled in
accordance with paragraphs 2 of this Article, the            The Protocols annexed to this Agreement by
Council of Association shall determine, in accordance        common accord of the Contracting Parties shall form
with Article 8 of this Agreement, the detailed rules         an integral part thereof.
 ---pagebreak---  31 . 12. 77                            Official Journal of the European Communities                               No L 361 /35
                          Article 31                                                          Article 32
 This Agreement shall be ratified by the Signatory                    This Agreement shall enter into force on the first day
 States in accordance with their respective                           of the second month following the date of exchange
 constitutional      requirements,    and     shall   become          of the instruments of ratification and the notification
 binding on the Community by a decision of the                        referred to in Article 31 .
 Council taken in accordance with the Treaty
 establishing the Community and notified to the
 Parties to this Agreement.                                                                   Article 33
                                                                     This Agreement is drawn up in two copies in the
 The instruments of ratification and the notifications               Dutch ,    French,     German,    Italian   and  Turkish
 of conclusion shall be exchanged at Brussels.                        languages, each of these texts being equally authentic.
                                                      PROTOCOL No 1
                                                      Provisional Protocol
               THE CONTRACTING PARTIES,
               RECOGNIZING the importance to the Turkish economy, particularly in the preparatory
               stage, of exports of tobacco, dried grapes, dried figs and hazelnuts ;
               DESIRING to adopt the Provisional Protocol provided for in Article 3 of the Agreement of
               Association ,
               HAVE AGREED AS FOLLOWS :
                         Article 1                                   or until the end of the tenth year, whichever is the
                                                                     earlier .
1.     Four years after the entry into force of this
Agreement, the Council of Association shall consider
whether, taking into account the economic situation                  If, however, the additional Protocol has been adopted
of Turkey, it is able to lay down , in the form of an                but has not entered into force by the end of the tenth
additional Protocol, the provisions relating to the                  year, this Provisional Protocol shall be extended for
 conditions ,   detailed     rules   and    timetables    for        not more than one year.
implementing the transitional stage referred to in
Article 4 of the Agreement.
                                                                     Should    the    additional   Protocol    not have   been
The additional Protocol shall be signed by the                       adopted by the end of the ninth year, the Council of
Contracting Parties and shall enter into force after                 Association shall decide on the arrangements to be
completion        of    the     respective     constitutional        applied in respect of the preparatory stage from the
procedures .                                                         end of the tenth year.
2. If the additional Protocol has not been adopted
by the end of the fifth year, the procedure laid down
in paragraph 1 shall be set in motion again after a                                           Article 2
period which shall be fixed by the Council of
Association and which shall not exceed three years.                  From the date of the entry into force of this Protocol,
                                                                     the Member States of the Community shall open the
3.     The provisions of this Protocol shall continue to             following annual tariff quotas for imports originating
apply until the additional Protocol enters into force                in and coming from Turkey :
 ---pagebreak--- No L 361 /36                          Official Journal of the European Communities                                31 . 12 . 77
( a ) 24.01 —        Unmanufactured tobacco :      tobacco            If this Provisional Protocol should still be in
       refuse                                                         force at the date when the national rates of duty
                                                                      of Member States are finally aligned on the
       Belgo-Luxembourg Economic                                      Common Customs Tariff, the Community shall
       Union                            1 250 metric tons             adopt, for dried figs , the tariff measures necessary
       Federal Republic of Germany 6 600 metric tons
                                                                      to ensure that Turkey retains commercial
                                                                      advantages equivalent to those which it has
       France                 ^         2 550 metric tons             under the preceding paragraph, taking into
                                                                      account the provisions of Article 3 .
       Italy                            1 500 metric tons
       Netherlands                        600 metric tons
                                                                 ( d) ex 08.05 — Nuts, fresh, or dried, shelled or not :
                                                                      hazelnuts
       Each Member State shall apply to products
       imported under these tariff quotas the customs                 Belgo-Luxembourg Economic
       duty which it applies to imports of like products              Union                                 540 metric tons
       within the framework of the Agreement of
       Association signed by the Community on 9 July                  Federal Republic of Germany 14 500 metric tons
       1961 .                                                         France                              1 250 metric tons
                                                                      Netherlands                           710 metric tons
 ( b ) ex 08.04 — Dried grapes (in containers of a net
       content not exceeding 15 kg)                                   Each Member State of the Community , shall
       Belgo-Luxembourg Economic                                       apply an ad valorem customs duty of 2-5 % to
       Union                            3 250 metric tons             products imported under this tariff quota .
       Federal Republic of Germany 9 750 metric tons                  Furthermore, on the entry into force of this
       France                           2 800 metric tons             Agreement, the Member States of the
                                                                      Community shall abolish all intra-Community
       Italy                            7 700 metric tons             customs duties on this product and shall apply
                                                                      the Common Customs Tariff in its entirety.
       Netherlands                      6 500 metric tons
       Each Member State shall apply to products                                         Article 3
       imported under these tariff quotas the customs
       duty which it applies to imports of like products
       within ; the framework of the Agreement of                From the date of the final alignment of the national
       Association signed by the Community on 9 July             duties applied by Member States of the Community
       1961 .                                                    to products mentioned in Article 2 with those of the
                                                                 Common Customs Tariff, the Community shall each
                                                                 year open tariff quotas in favour of Turkey equal to
 ( c ) ex 08.03 — Dried figs (in containers of a net             the total of the national quotas open at the date of
       content not exceeding 15 kg)                              that final alignment. This procedure shall be
                                                                 implemented without prejudice to any decisions
       Belgo-Luxembourg Economic                                 which may have been taken by the Council of
       Union                              840 metric tons        Association pursuant to Article 4 in respect of the
       Federal Republic of Germany 5 000 metric tons             following calendar year.
       France                           7 000 metric tons        As regards hazelnuts, however, this procedure shall
       Netherlands                        160 metric tons        not be implemented until the national duties of
                                                                 Member States of the Community for all the three
                                                                  other products have been brought into line with
        In the case of dried figs imported under these           those of the Common Customs Tariff.
        tariff quotas each Member State shall, pending
        the final alignment of the national rates of duty
        of the Member States of the Community on those                                    Article 4
        of the Common Customs Tariff, apply a customs
        duty for dried figs equal to the basic duty within
        the meaning of Article 14 ( 1 ) of the Treaty            From the second year following the entry into force
        establishing the Community, less 'half the                of this Agreement, the Council of Association may
        reduction of duty which Member States of the              decide to increase the tariff quotas referred to in
        Community allow to one another.                           Articles 2 and 3 . Unless the Council of Association
 ---pagebreak--- 31 . 12 . 77                          Official Journal of the European Communities                          No L 361 / 37
should decide otherwise, these increases shall remain            ensure-  that   Turkey      retains  export   openings
in force. Any increase shall take effect only from the           equivalent to those which it has under this Protocol ,
beginning of the next calendar year.                             taking into account - the arrangements laid down for
                                                                 that common agricultural policy.
                        Article 5
                                                                                        Article 8
If this Agreement does not enter into force at the
beginning of a calendar year, Member States of the               If the Community should open tariff quotas for
Community shall , for the period from the date of                products mentioned in Article 2 of this Protocol,
entry into force of this Agreement until the beginning           Turkey shall not, as regards the rates of customs duty
of the next calendar year, open tariff quotas of one             chargeable within the framework of those tariff
twelfth of the tonnages mentioned in Article 2 for               quotas, be treated less favourably than a country
each month between the date of entry into force of               which is not party to this Agreement.
this Agreement and the beginning of the next
calendar year.
                                                                                        Article 9
From the date of entry into force of this Agreement,
however, the Council of Association may decide to                Turkey shall endeavour to extend to all Member
increase the tariff quotas opened pursuant to the                States of the Community the most favourable
preceding paragraph so as to take into account the               treatment which it grants to one or more of them .
seasonal nature of exports of the products in
question .
                                                                                        Article 10
                        Article 6
                                                                 From the beginning of the preparatory stage each
At the end of the third year after the entry into force          Contracting Party may bring before the Council of
of this Agreement, the Council of Association may                Association any difficulties regarding the right of
take appropriate measures to promote the disposal                establishment, the provision of services, transport or
on the Community market of products other than                   competition . Where necessary, the Council of
those mentioned in Article 2 .                                   Association may put forward to the Contracting
                                                                 Parties any appropriate recommendations for the
                                                                 solution of such difficulties .
                         Article 7
 Once a common agricultural policy has been                                             Article 11
introduced for tobacco , hazelnuts or dried figs, the
 Community shall take any measures necessary to                  This Protocol shall be annexed to the Agreement.
                                                    PROTOCOL No 2
                                                     Financial Protocol
              THE CONTRACTING PARTIES ,
              DESIRING to promote the accelerated development of the Turkish economy in furtherance
              of the objectives of the Agreement of Association,
              HAVE AGREED AS FOLLOWS :
 ---pagebreak---  No L 361 /38                       Official Journal of the European Communities                            31 . 12 . 77
                        Article 1                              tendering procedures . Participation in such ' public
                                                               invitations to tender or other tendering procedures
 Requests for the financing of investment projects             shall be open on equal terms to all natural and legal
 which will serve to increase the productivity of the          persons who are nationals of Turkey or of Member
 Turkish economy and further the objectives of the             States of the Community.
 Agreement of Association, and which are part of the
 Turkish development plan, may be submitted by the
 Turkish State and by Turkish undertakings to the              2.    Loans may be used to cover expenditure on
 European Investment Bank, which shall inform them             imports or domestic expenditure, _ where such
 of the action taken thereon .                                 expenditure is necessary: for carrying out approved
                                                               investment projects .
                        Article 2
                                                               3.    The Bank shall ensure that the funds are used in
                                                               the most judicious manner and in accordance with
Projects for which requests are approved shall be              the objectives of this Agreement.
 financed by loans. These loans may be contracted up
 to a total of 175 million units of account, which may
be committed in the five years following the entry
into force of this Agreement.                                                          Article 6
                        Article 3                              Turkey undertakes to allow recipients of these loans
                                                              to obtain the currency necessary for the repayment of
                                                               the loans and of interest thereon .
Requests for financing submitted by Turkish
undertakings shall not be approved without the
agreement of the Turkish Government.
                                                                                       Article 7
                        Article 4
                                                              Assistance provided under this Protocol for carrying
1.    Loans shall be granted on the basis of the              out    certain   projects   may    take the  form : of
economic features of the . projects which they are to         participation in . financing operations in which, in
finance .                                                     particular, third countries, international finance
                                                              organizations or credit and development authorities
2.    Loans, especially = those for investment projects       and institutions of Turkey or of Member States of
                                                              the Community-may be concerned .
the return on which is indirect or long term, may be
made on special terms such as reduced rates of
interest, extended repayment periods, interest-free
periods and, where appropriate, any other special
                                                                                       Article 8
repayment terms which mgy facilitate the servicing of
such loans by Turkey .
                                                              Aid to Turkish economic and social development
3.    Any loan granted to an undertaking or to an             under the conditions set out in this Agreement and in
authority other than the Turkish State shall be               this Protocol shall be supplementary to the
subject to a guarantee from the Turkish State.                endeavours of the Turkish State .
                        Article 5
                                                                                       Article 9
1.    The Bank may make the granting of these loans
subject to public invitation to tender or other               This Protocol shall be annexed to this Agreement.
 ---pagebreak--- 31 . 12 . 77                        Official Journal of the European Communities                 No L 361 / 39
             In : witness whereof, the undersigned Plenipotentiaries have signed this Agreement.
             Done at Ankara this twelfth day of September in the year one- thousand nine hundred
             and sixty-three.
             For His Majesty the King of the Belgians,
             For the President of the Federal Republic of Germany,
             For the President of the French Republic*
             For the President of the Italian Republic,
             For. Her Royal Highness the Grand Duchess of Luxembourg,
             For Her Majesty the Queen of the Netherlands .
 ---pagebreak--- No L 361 /40­                       Official Journal of the European Communities                       31 . 12 . 77
                                                     FINAL ACT
            The Plenipotentiaries of
            His Majesty the King of the Belgians,
            The President of the Federal Republic of Germany,
            The President of the French Republic,
            The President of the Italian Republic,
            Her Royal Highness the Grand Duchess of Luxembourg,
            Her Majesty the Queen of the Netherlands, and
            The Council of the European Economic Community,
            of the one part, and
            The President of the Republic of Turkey,
            of the other part,
                                                                      *
            meeting at Ankara, on the twelfth day of September in the year one thousand nine
            hundred and sixty-three,
            for the signature of the Agreement establishing an Association between the European
            Economic Community and Turkey,
            have adopted the following texts :
            Agreement establishing an Association between the European Economic Community
            and Turkey and the Protocol listed below :
            Protocol No 1 : Provisional Protocol
            Protocol No 2 : Financial Protocol
            The Plenipotentiaries have furthermore :
            — adopted the Declarations which are listed below and annexed to this Act (Annex I):
                1 . Declaration of Intent on dried grapes, in connection with Article 2 of the
                    Provisional Protocol ,
                2 . Interpretative Declaration on the value of the unit of account referred to in
                    Article 2 of the Financial Protocol,
                3 . Interpretative Declaration on the definition of ' Contracting Parties' used in the
                    Agreement of Association,
 ---pagebreak--- 31 . 12 . 77                       Official Journal of the European Communities                      No L 361 /41
             — and taken note of the Declarations of the Government of the Federal Republic of
                 Germany which are listed below and annexed to this Act (Annex II) :
                 1 . Declaration on the definition of the expression ' German national',
                 2. Declaration on the application of the Agreement to Berlin .
             The Plenipotentiaries have agreed that the Declarations annexed to this Act shall be
             subjected, in the same manner as, for the Agreement establishing an Association between
             the European Economic Community and Turkey, to any procedures that may be
             necessary to ensure their validity .
             In witness whereof, the undersigned Plenipotentiaries have signed this Final Act.
             Done at Ankara, on the twelfth day of September in the year one thousand nine
             hundred and sixty-three.
             For His Majesty the King of the Belgians,
             For the President of the Federal Republic of Germany,
             For the President of the French Republic,
             For the President of the Italian Republic,
             For Her Royal Highness the Grand Duchess of Luxembourg,
             For Her Majesty the Queen of the Netherlands.
 ---pagebreak--- No L 361 /42                        Official Journal of the European Communities                        31 . 12 . 77­
             Declaration of Intention concerning dried grapes with reference to Article 2 of the
                                                   Provisional Protocol
             The Community declares that it does not envisage the establishment of a common
             organization of the market in dried grapes .
             Interpretative Declaration on the value of the unit of account in the context of Article 2
                                                of the Financial Protocol
            The Contracting Parties declare that :
             1 . The value of the unit of account used to express the amount mentioned in Article 2
                 of the Financial Protocol shall be 0-88867088 grammes of fine gold .
             2. The parity of the currency of a Member State of the Community in relation to the
                 unit of account defined in paragraph 1 shall be the relation between the weight of
                 fine gold contained in the unit of account and the weight of fine gold corresponding
                 to the par value of that currency communicated to the International Monetary Fund.
                 If no par value has been communicated, or if exchange rates differing from the par
                 value by a margin exceeding that authorized by the International Monetary Fund are
                 applied to current payments, the weight of fine gold corresponding to the parity of
                 the currency shall be calculated on the basis of the exchange rate for a currency
                 directly or indirectly expressed in and convertible into gold which is applied in the
                 Member State to current payments, on the day of the calculation, and on the basis
                 of the par value communicated to the International Monetary Fund for that con­
                 vertible currency.
            3 . The unit of account defined in paragraph 1 shall remain unchanged throughout the
                 period in which the Financial Protocol is in force. If, however, before the end of
                 that period a uniform proportionate change in the par values of all currencies in
                 relation to gold should be decided by the International Monetary Fund under
                 Article 4, Section 7, of its Articles of Agreement, the weight of fine gold contained
                 in the unit of account shall alter in inverse ratio to that change.
                 If one or more Member States do not apply the decision taken by the International
                 Monetary Fund as referred to in the preceding subparagraph, the weight of fine
                 gold contained in the unit of account shall alter in inverse ratio to the change
                 decided by the International Monetary Fund . The Council of the European Com­
                 munities shall, however, examine the situation thus created and shall take the
                 necessary measures, acting by a qualified majority, after receiving a proposal from
                 the Commission and the opinion of the Monetarv Committee .
 ---pagebreak--- 31 . 12 . 77                        Official Journal of the European Communities                       No L 361 /43
             Interpretative Declaration on the definition of the expression 'Contracting Parties' used
                                            in the Agreement of Association
             The Contracting Parties agree that for the purposes of the Agreement of Association
             ' Contracting Parties' means the Community and the Member States or alternatively
             the Member States alone or the Community alone on the one hand, and the Turkish
             Republic on the other. The meaning to be given to this expression in each particular
             case is to be deduced from the context of the Agreement and from the corresponding
             provisions of the Treaty establishing the Community. In certain circumstances ' Con­
             tracting Parties' may ; during the transitional period of the Treaty establishing the
             Community, mean the Member States, and after the expiry of that period mean the
             Community.
                        Declarations by the Government of the Federal Republic of Germany
              1 . Declaration on the definition of the expression 'German national'
                  All Germans as defined in the Basic Law for the Federal Republic of Germany shall
                  be considered nationals of the Federal Republic of Germany.
             2, Declaration on the application of the Agreement to Berlin
                  The Agreement of Association shall apply equally to Land Berlin unless the Govern­
                  ment of the Federal Republic of Germany makes a declaration to the contrary to the
                  other Contracting Parties within the three months following the entry into force of
                  the Agreement.