ACP-EEC CONVENTION OF LOME

ANNUAL REPORT OF THE ACP-EEC COUNCIL OF MINISTERS (1984) CONVENTION ACP- CEE DE LOME ACP-EEC CONVENTION OF LOME

LE CONSEIL THE COUNCIL

LE SECRETAIRE EUROPEEN THE EUROPEAN SECRETARY

1 It AOUi tj

Mr P. PFLIMLIN Mr J.T. KOLANE 0502 Co-Cha1rmen of the ACP-EEC Jowt Assembly European Parl1ament Luxembourg

At 1ts meet1ng in Luxembourg on 21 June 1985, the ACP-EEC Council of Min1sters... examined the question of the Annual Report which it has to oublish pursuant to Article 168 (5) of the second ACP-EEC Convention and instructed the Cha1rman of the Committee of Ambassadors, in conjunction with the co-Secretaries, to finalise this report and to forward it to the Joint Assembly.

As this report has now_been finally adopted, we have the honour of commun1cating the text thereof to the Joint Assembly in order that it may be exam1ned by that body in accordance with Article 276 (1) of the Third ACP-EEC Convention.

The necessary copies of this text will be made available to your services as soon as possible.

Yours s1ncerely

Daniel VIGNES - I -

CONTENTS

I. INTRODUCTION p. 1

II. OVERVIEW OF THE ACP-EEC COUNCIL'S WORK p. 2

1. Council of Ministers p. 2 2. Artlcle 108 Committee p. 5 3. AC?-EEC Committee of Ambassadors p. 6 4. ACP-EEC Consultative Assembly p. 7 5. Annual meeting of representatives of the ACP-EEC economic and soc1al interests p. 8 6. Annual report of the ACP-EEC Council of Ministers for 1983 p. 8 7. Accession to the Convention p. 9

III. SPECIFIC AREAS OF THE ACTIVITIES OF THE COUNCIL OF MINISTERS p. 10

1. ·rrade Co-operat1on p. 10

(a) Imports of certa1n ACP agricultural products into the Community p. 10

(b) Aflatox1n: Proposed Community Directive on lower levels of aflatoxin in an1mal feed1ngstuffs p. 11

(c) Commission proposal for a Council Regulat1on imposing a tax on oilseeds and o1ls and fats of vegetable or1g1n p. 11

(d) Comm1ssion proposal on new measures relat1ng to management of the market 1n roses and carnat1ons p. 12

(e) R urn p. 12

(f) Consultations on the International Cocoa Agreement p. 12

(g) Enlargement of the Commun1ty to include Spa1n and Portugal p. 13

(h) General1sed preferences p. 13

(i) Study by the Work1ng Party on the evolution of ACP-EEC trade p. 13

... I . .. I I

2. Customs co-operation p. 14 (a) Derogations from the rules of origin p. 14 (b) Implementation of Annex XXI to the second Convention p. 14 3. Export earnings from commodities p. 15

(a) Stabex p. 15 (b) Sugar p. 17

4. Industrial co-operation p. 20

(a) Proceedings of the Council of Ministers p. 20

(b) Proceedings of the ACP-EEC Committee on Industrial Co-operation p. 23

(c) Activities of the Centre for Industrial Development p. 26

(d) Activities of the European Investment Bank ~n the industrial sphere p. 32

5. Agricultural co-operation p. 35

(a) Report on the TCA's activities p. 35 • (b) Programme of activities and preliminary draft budget for the TCA for 1985 p. 38

6. Financial and technical co-operation p. 39

(a) Proceedings of the Council of Ministers p. 39

(b) Proceedings of the Article 108 Committee p. 39

(c) Figures for the 4th and 5th EDFs p. 40

(d) Activit~es of the European Investment Bank in the ACP States and the OCT p. 57

7. Least-developed, landlocked and island ACP States p. 72

... I ... - III -

IV. THIRD ACP-EEC CONVENTION p. 73

A. NEGOTIATIONS p. 73

1. Min~sterial Conference on 9 and 10 February 1984 ln Brussels p. 73

2. M~n~sterial Conference on 3 to 5 May 1984 in Suva (Fiji) p. 74

3. MinisterLal Conference on 28 to 30 June 1984 Ln Luxembourg p. 74

4. M~nisterLal meeting in restrLcted sess~on from 9 to 13 October 1984 Ln Brussels p. 75

5. Meeting of the co-Presidents on 22 November 1984 in Brussels p. 75

6. Signing of the third ACP-EEC Convention Ln Lome, 8 December 1984 p. 76

8. MAIN CHARACTERISTICS OF THE NEW CONVENTION p. 77

1. I:n-orovements. to existLng mach~nery p . 78

(a) Flnancial and techn~cal co-operation p. 78

(b) Stab ex p. 80

{ c ) SysmLn p . 83

(d) Trade and customs co-operatLon p. 85

( e ) IndustrLal co-operation p. 88

(f) Development of mining and energy potential p. 88

(g) Regional co-operation p. 89

(h) ProvlsLons on the least-developed, landlocked and 1sland ACP States p. 89

(l) Inst1tutions p. 90 - IV -

2. Extendins co-ooe~ation and ~nnovations ~· 92 \a) The objectives of co-operation 9. 92

(b) Human ~ights 9. 92 (c) Agricultural and rural co-ope~at:ion I='· 92 (d) Fisheries p. 94 (e) Shipping p. 95

(f) Cultural and soc~al co-ope~ation p. 96 (g) Investment p. 97

v. CONCLUSIONS p. 98 ------

ANNEXES

~nex I Resolution of the ACP-EEC Council of Ministers p. 99 of 2 May 1984 on f~nancial and techn~cal co-ope:-at~on

~x II L~st of Resolutions adopted by the ACP-EEC 9. 111 Consultative Assembly

Annex III ~esolution of the ACP-EEC Consul~at~ve Assembly p. 112 taking ~nto account the eighth annual repo~t of the ACP-EEC Counc~l of Min~ste:-s on the State of lmplementation of the Lome Convent1on anc the p~ospects fo~ the subsequent new Conven~1on

Annex IV Final declarat+,on of the annual meet~ng of the p. 130 ACP-EEC representatives of econom~c and social inter-ests Annex V Breakdown by instruments of the overall flnancial p. 132 budget of Lome III

... I ... - 1 -

~. ~NTRODUCTION

Th1s annual report cove~s activities in 1984 1n the context of both the 1mplementation of the Second ACP-EEC Convent1on and the negot1at1ons for the Th1rd ACP-EEC Convent1on.

Under the Lome II Convention, 1984 was the last full year of lmplementation before the Convention exp1red on 28 February 1985. Implementation of the Convent1on took 1ts

normal cou~se th~oughout the year, and in part1cular at the meet1ng of the ACP-EEC Counc1l of Min1sters 1n Suva (rlJl) on 2 May 1984, but the attent1on of the partners was obv1ously concentrated first and foremost on the negot1at1ons for the Th1rd Convention of Lome. After numerous meet1ngs at ambassadorial level, three M1nister1al Conferences and two M1n1ster1al meet1ngs 1n restr1cted sess1on, the Third Convention of Lome was finally concluded, after lengthy and often dlfficult negot1at1ons. The new Convent1on, which was signed 1n ~o~e on ~ December 1984, w1ll govern ACP-EEC relat1ons until 28 February 1990.

At a time when the international dialogue between the

1ndus~r1alized countr1es and the develop1ng coun~r1es 1s hampered and practically paralysed by maJor difficulties, the

continuation of ACP-EEC co-operat1on and its streng~hen1ng by the new Convention of Lome represents a notable success and 1s an lndication of the continued determ1nation of the partners

to develop and consolidate this co-opera~ion at all levels .

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1 II. OVERVIEW OF THE WORK OF THE ACP-EEC ~NSTITUTIONS ( »

1. Counc~l of Ministe~s

The ACP-EEC Council of M1nisters held its ninth

ord~nary meeting on 2 May 1984 in Suva, F1ji, under the chairmansh~p of M~ Hugh L. ~HEARER, Oeputy Prime Min~ster and Min1ster of Fore1gn Affa1rs of Jama1ca, Pres1dent

in-Office of the ACP Council of Ministe~s. The Commun~ty spokesman was Mr Claude CHEYSSON, Ministe~ for External

Relat1ons of the French Republ~c and President-~n- Office of the Council of the European Communities. The

Commission of the Eu~opean Communities was represented by

Mr Edgard PISANI, member of the Commission ~espor.s1ble for development questions.

At this n~nth ordinary meeting the Council exam1ned a number of ~E~S~!!£_E£~~!~~~ w1th regard to t~ade which have caused, or are likely to cause, difficulties to ACP exporters to the EEC market - 1mport arrangements for strawberries, sharps and bran, aflatoxin in an1mal feedlng­ stuffs, oil seeds, roses and carnations.

As regards 1mplementation of the ~!£~£££!_~~-§~§~£· the Council heard several statements by representat1ves cf the ACP States concern1ng the scope of the annual

negotiat~ons on guaranteed prices for ACP sugar and re­ allocatrions under Artt~Ie 7(4) of the Protocol.

1 ( ) This section refers in general to a number of specific questions concerning the implementation of the second ACP-EEC Convention which were examined 1n 1984. A detailed analysis of these questions will however be found 1n sect1on III .

. . . I I •• - 3 -

The Council first dealt w1th several spec1fic questions concern~ng §!~~~~' part~cularly ACP requests for the inclus~on of new products 1n the system and for exports from F1ji to all dest~nations to be taken 1nto accouut.

The Council also.di~cussed problems connected with the negot1atlons for a new !~~~E~~~!~~~!-~~~9~-~9E~~~~~~· It was agreed that contacts and consultations between the Commun1ty and the ACP States would cont~nue throughout these negotiat1ons.

As regards ~~~~2~~-~2:~2~£~~~2~· :he Council took note of the 9rogress made by the Customs Co-operat1on Committee, part1cularly w~th regard to the question of lmplementa~~on of the ~~~~!_Q~£!~£~!i~~-~~-!~~-~£~S!~-~f_f!~~~!1_2£~9~£!~ (Annex XXI to the Final Act of the Convention). It asked the Comm1ttee to cont1nue its examination of this question and to take account 1n doing so of 1ts techn~cal aspects and of the ACP Sta~es' com~ents in th1s connection. The. result of taking these factors 1.n -co account is reflected in the wording of Annex XXX to the Final Act of Lome III.

As regards ::!}9~§!!i~!_£~:~E~£~!!~~· the Council rece~ved the jo1nt report on the complementary f1nanc1ng of 1ndustr1al co-operat1on drawn up under the aeg~s of the ACP-EEC Comm1ttee on Industrial Co-operation as laid down 1n Annex X to the

Second Convent1on. It arso cons1dered that ~he Jo1nt Declarat1on on Article 82 concerning investment in the least-developed, landlocked and island AC~ States (Annex XI to the F1nal Kct) should be lmplemented w1thout delay. Th1s v1.ew was taken 1nto account in the wording of Article 246 of Lome III. F1nally, it adopted a decision increasing the number of members of the Advisory Council of the Centre for the Development of Industry .

. . . / ... - 4 -

The Council signified its acceptance of the report from the

Article 108 Comm~ttee on the implementation of ~~~~£~~!-~~ E~£~~!£!!_£2=~E~!!~!~~ and adopted the resulting Resolution on financial and technical co-operation (see text in Annex I).

The Council was appraised of a report concerning the outcome of the latest meeting of the ~2~=§~2-£2~~~!~!~~~~-~~~~~~!~-~~ of ~he latest meetings of the ACP-EEC Joint Committe~ (Berlin, 19 to 23 September 1983 and Brazzaville, 20 to 24 February 1984).

Finally, a number of specific problems such as the situation in Southern Africa, action against desertification and drought and measures against natural disasters were mentioned.

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2. Artlcle 108 Commlttee

The third ministerial meeting of the Article 108 Committee, a jolnt body entrusted with the task of exam1ning measures likely to improve the implementation of financlal and technlcal co-operation, was held in Suva (Fiji) on 1 May 1984.

The Committee examined in particular the report from the Commission on the management of financial and technlcal co-operation in 1982. It drew up a draft Resolutlon on financlal and technical co-operatlon containing new guidelines, which was subsequently adopted by the Council (see Annex I) .

. . . I .. - - 6 -

3. ACP-EEC Committee of Ambassadors

The ACP-EEC Committee of Ambassadors held its 17th meeting in Brussels on 30 March 1984, with Mr LEPRETTE, Ambassador (France), in the chair as Chairman-in-offlce of the ~errnanent Representatives Committee, the ACP co-Chairman being Mr KAZUNGA (Ambassador, Zambia). The Committee made

preparat~ons for the meeting of the Council on 2 May 1984,

bas~ng itself in part~cular on the proceedings of the Customs

Co-operation Committee, the Commit~ee on· Industrial Co-operation and the Sub-Committee on Trade Co-operation, which all held one or more meetings in 1984.

It was not possible to hold a Comm~ttee meeting 1n the second half of 1984 because of the extra work caused by the end of the negotiations for renewal of the Convention, and

it was not until January 1985 tha~ 1t proved possible to examine the routine problems 1nvo1ved in implementing the

Convent~on. The Committee met aga~n in February 1985 to dec1de on the temporary arrangements that would apply pending entry into force of the new Convent1on.

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4. ACP-EEC Consulta~ive Assembly

The annual meet~ng of the Consultat~ve Assembly was held

~n Luxembourg from 19 to 21 September 1984. ?reparat1ons for 1t had been made at meetings of the Jo1nt Comm1ttee held from

22 to 24 February 1984 in Bra~~aville and from 17 to l9 September 1984 in Luxembourg.

The ACP-EEC Council of Min1sters was represented by the President of the ACP Council, Mr CHELTENHAM (Barbados) and the Pres1dent of the Counc1l of the European Commun1ties, Mr PATTISON (Ireland), who both made several contrJ.but1ons to the d1scussion.

The Consultat1ve Assembly's proceed1ngs, together wlth

those of the Jo~nt Comrn1ttee, led to the adopt1on of ~umerous I Resolut1ons (see Annex II), amongst wh1ch part:cular ~ent1on should be made of the Resolutton taking account of the e1ghth Annual Report of the ACP-EEC Counc1l of Ministers on the scate of 1mplementat1on of the Lome Conventton and the prospects

for the subsequent new Convention. rh~s very comprehens~ve

Resolut~on, wh1ch deals w:th most of the quest1ons covered

by the Lome III negot1at1ons, ~s given tn Annex III.

These Resolutions were sent ~e th~ ACP-EEC Counc~l of Minlsters so that lt might take note of them.

I • • • I • • • - 8 -

5. A~nua~ ~ee~1ng of ~he reoresentat1ves of the ACP-EEC economic

er.~ scc:a~ 1nterests

The annual meeting between the representat1ves of

~CP-~EC econom1c and social 1n~erests and a delegat1on of the

.~r::P-:--:::c joint: Comm1 ttee was hela. 1n St"Ussels on

1~ and 15 September 1984 under the co-cha~rmanship of !'>1r 8ERSANI and Mr ZANDOU.

Part:~c1pants consldered that on the one hand it was essent1al to cont1nue and to w1den consultatlons and tne part1c1pat:ion of the representatives of economic and social lr.terests 1n co-operat1on and on the other hand to co-ordinate tn1s type of consultat1on so that 1t results 1n the concrete operat1onal 1nvolvement of both s1des of 1ndustry and groups repr~sencat1ve of the populat1on 1n ACP-EEC co-operat1on. In th1s context the meeting adopted, for the first t1me, a final

~eclaration on consultat1on of the .representatives of ACP-EEC economic anc social interests and 1ts place in the new Ccnvenc1on (see Annex IV). This jeclarat1on was sent to the ACP-EEC Consultative Assembly and the Counc1l of Minlsters. o. Annual reoort of the ACP-EEC Councll of M1n1sters for 1983

At 1ts mee~1ng 1n Suva on 2 May 1984, the ACP-EEC Council of M1n1sters gave 1ts agreement in pr1nc1ple to the annual report of the ACP-EEC Council of Min1sters for 1983 and

1~structed the Committee of Ambassadors, 1n conjunct1on w1th the co-Secretar1es, to finallze the text.

. .. I ... - 9 -

This report was subsequently sent to the Consultative Assembly and published (Article 175(6) and Article 168(5) of the Convention).

7. Accession to the Convention

On 5 March 1984 Saint Christopher and Nevis acceded to the Second ACP-EEC Convention by depositing its Act of Accesslon Wlth the Secretariat of the Council of the European Comrnunltles (Article 185(2)). Thls State, formerly a British colony, whlch achieved full independence on 19 September 1983, also acceded to the Protocol on ACP sugar.

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:II. SPECIFIC AREAS OF THE ACTIVITIES OF THE COUNC:L OF MINISTERS

l. TRADE CO-OPERATION

!~E~EE~-~!_£~£E!!~-~£~_!S£!£~!~~!~~-E!~~~£E~-~~E~ ~~~-S~~~~!E~

At the meeting of the ACP-EEC Council of Ministers in Suva, the two parties continued d~scuss~ons on an ACP req~est concern~ng impor~s of ACP strawberries into the Community. On 30 July 1984 the EEC Councll adopted a Regulat~on reducing the common customs tariff customs duty by 60% for ACP strawberries durlng the period 1 November to ~he end of February wlthin the 1 limits of a tar~ff quota of 700 ~onnes {•).

The Communlty also gave assurances that lt was prepared to examine any detalled in­ formatlon whlch the ACP States mlght provide on the evolutlon of their trade ln sharps and bran following the adoption of Regulation (EEC) 414/83, whlch for the flrst time gave them a real preference for these products .

. . . I ...

(1) Regulation No 1834/84, OJ L 172, 30.6.1984. (b) ~!!~~~~!~!-~~~e~~~~-~~~~~~!~~-Q!~~~~!~~-~~-~~~~~-~~~~!~ ~!-~!!~~~~!~-!~-~~!~~!_!~~~!~9~~~!!~

At the 9th Sess1on of the ACP-EEC Counc1l of M1n1sters held 1n FlJl 1n May, 1984, the ACP States expressed their ser1ous concerns with the effects that the proposed Commun1ty Directive to lower the levels of aflatoxin 1n feed1ngstuffs would have on ACP exports of groundnuts and groundnut products.

The Community indicated that these concerns would be taken fully 1nto account and undertook to prov1de the ACP States w1th the relevant informat1on on the measures contemplated and confirmed that 1t would COIJsult the ACP States in ample time before 1t adopted any regulation on th1s matter.

(c) ~~~~!~~!~~-e~~e~~~!-~~~-~-~~~~~!!_~~9~!~~!~~-!~e~~!~g-~ ~~~-~~-~!!~~~~~-~~~-~!!~-~~~-!~~~-~~-~~g~~~~!~-~~!9!~

The ACP States, at the same meet1ng, expressed their concern on th1s matter and po1nted out that the products affected by this proposal were extremely 1mportant to thelr econom1es. They further expressed thelr serious obJection to the Comm1ss1on proposal because they cons1dered 1t to be discr1minatory 1n 1ts product coverage and un1lateral.

The Community took note of the ACP concerns, po1nt1ng out that the Comm1ss1on proposal was st1ll under cons1derit1on by the Community and no decision had yet ~ been reached on thls matter. The Commun1ty undertook to take fully into account the comments of the latter and to consult them before a decision was taken on th1s matter.

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The Community 1nd1cated that there had been no developments on this matter s1nce March 1984 and that the s1tuat1on d1d not seem l1kely to change 1n the near future.

(d) ~~~~~~~~~~-e:~e~~~!-~~-~~~-~~~~~:~~-:~!~!~~~-!~ ~~~~9~~~~~-~!-~~~-~~E~~!-~~-E~~~~-~~9-~~E~~~~~~~

The ACP States conveyed the1r concerns in relation to th1s matter to the Commun1ty at the 9th Sess1on of ACP-EEC Counc1l of M1n1sters.

The Commun1ty stated that 1t was currently discuss1ng a proposal relat1ng to stat1stical surveillance of 1mports of these products. Nevertheless, th1s proposal was not 1n any way 1ntended to l1m1t 1mports of these products from the ACP States. The Community stated that 1t would 1n1t1ate consultations as soon as the latter had any spec1fic problems.

The ACP welcomed the Community's assurance and noted that the Community was not contemplating legislation at this stage which would restrict ACP exports.

(e) Rum

On 28 June 1984 the Council adopted a Regulation opening, allocating and providing for the administration of a Commun1ty tar1ff quota for rum, arrack and taf1a, orig1nat1ng in the ACP States (1) for the per1od 1 July 1984 to 28 February 1985.

The Commun1ty and the ACP States held a d1scussion in the ACP-EEC Counc1l on the negot1ations concerning renewal of the International Cocoa Agreement. It was agreed that the two parties would keep in touch dur1ng these negotiatlons .

. . . I . ..

(1) Regulat1on No 18~4/84, OJ No L 172, 30.6.1984. 13 -

(§) Enlargement------of the Community to include Spain and Portugal

At the meeting of the Committee of Ambassadors on 30 March 1984, the Community made a statement on developments in the accession negotiations with Spain and Portugal.

The ACP States stressed, at the meeting of the ACP-EEC Council of Ministers on 2 May 1984, the importance of their

hav~ng regular information on the progress of the negot~at~ons and said that they wanted such contacts to be of an official

nature in future~ The Community lndicated that the Commission was at the disposal of the ACP States for providlng them regularly with additional technlcal information and it confirmed that it was always prepared to consult the ACP States, when appropriate, withln the framework of the

competent bodies of the Convent~on.

In December 1984 the ACP States submltted a memorandum on the Commission proposal for the Scheme of Generalized Preferences for 1985. Although thls commun1cation was issued at a time when the Community had already agreed to the substance of thls Scheme, the text which the Commun1ty subsequently adopted followed the lines desired by the ACP States as regards some of its provlsions. In addition, the ACP-EEC Commlttee of Ambassadors subsequently asked the ACP-EEC Subcommittee on Trade Co-operatlon in January 1985 to exarn1ne how the consultation mach~nery on the SGP was worklng ln practlce.

(i) Study------L------by the Work1ng Partv on the Evolution of ACP-EEC Trade

The Council of M1n1sters 1nstructed the Working Party on the Evolut1on of ACP-EEC Trade to exped1te 1ts proceed1ngs w1th the a1m of draw1ng up a final report by September 1984.

The Work1ng Party, due to a host of factors, was not able to undertake the above mandate of Counc1l 1n 1984.

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2. CUSTOMS CO-OPERATION

(a) Derogations from the rules of origin

The ACP-EEC Customs Co-operat~on Committee declded on 31 July 1984 to grant a further derogation from the rules of origin to Mauritius for 600 tonnes of canned tuna originating in other developing countries and exported from Mauritius between 1 August 1984 and 28 February 1985 ( 1 ).

The Committee also decided on 3 October 1984 to grant a derogation from the rules of origin to Jamaica for 80 000 square yards of tufted carpet exported from 2 Jamaica between 3 October 1984 and 28 February 1985 ( ).

(b) Implementa~ion of Annex XXI to the Second Convention of Lome on the Joint Declaratlon on the or1gin of fishery oro ducts

The ACP-EEC Council noted that ~he report from the Customs Co-operation Committee on th~s question was not yet available but both parties conf1rmed their respect1ve

posit~ons.

, (-) Regulation (EEC) No 2591/84, OJ No L 243, 13. 9.1984. 2 ( ) Regulation (EEC) No 3124/84, OJ No L 292, 9.11.1984.

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3. EXPORT EARNINGS fROM COMMODITIES

(a) Stabex

At its 9th ord~nary meeting the ACP-EEC Council of

Ministers examined ~n detail certain problems already discussed at the previous meetings, and in particular the

problem of the lack of suff~cient funds for 1980 and 1981.

8oth parties reaff~rmed their po~nts of view on the quest~on.

As regards the method of s~!£~!~~!~S-~E~2!~£2• it was agreed that examination of the technical po1nts would oe continued by a Working Party. Th1s Work1ng Party, consisting of experts from ACP States (Ethiopia, Sudan, Togo) under the cha1rmanship of Mr KPTIGO (Togo) on the one hand and experts from the Commiss1on on the other, submitted a report to the Council. As a result of the Work1ng Party's work, the negot1ators were able to f1nd a solution to this problem w1th1n the framework of the Third ACP-EEC Convention.

The Council of M1nisters adopted a dec1s1on to

lnclude.. s~~-E~~~ in the ~~abex system by extend1ng applicat1on of the system to experts of thls product from Niger to other ACP States.

The Council also delegated authority to the Committee of Ambassadors to take the appropriate dec1s1ons as regards the ~!~2!~£~ to be made for the year of application 1983 and the replenishment of resources for the years 1975, 1976 and 1977. No action was required however under the f1rst of these decisions as the requests for transfers submitted by the ACP States for the year of application 1983 and agreed to by the Commiss1on

only reached an amoun~ well below the resources available

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for 1983 (some 97 MECU). The Commission made 21 transfers 1n respect of 1983, relating to loss of export earnings by 14 ACP States, totalling SO 403 781 ECU.

The Council asked the Committee of Ambassadors to examine certain problems which were still outstand1ng, and in particular the problem of the poss1ble ~~!!!~~~!~~-~f-~~l-~~!~~~~ rema1n1ng after expiry of the second Convention.

Finally, the ACP-EEC Council of Min1sters took note of a statement by the Community ind1cating that 1t was unable to ag~ee to the ACP States' request concern1ng the appl1cation of the STABEX system to FiJi's exports irrespeccive of their destinat1on, under Article 46(3) of the Convention. In its statemenc the Commun1ty pointed out that the operat1on of STABEX was based on the princlple that only exports to the Commun1ty were covered. Departure from that pr1nc1ple (as prov1ded for 1n Art1cle 46(3)) was only warranted where a significant proportion of the exports of the ACP country concerned had tradltionally gone to non-EEC markets. Th1s condltion was not however satisfied in the case of FiJi.

In the same field, the ACP States made a request to the Council of Ministers for extens1on of the per1od of validlty of a previous decis~on concerning applica~ion of the STABEX system to exports to any destination from the Republic of Kiribat1. This request 1s being considered by the Comm1ctee of Ambassadors, to which authority to take a decision in the matter has been delegated.

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(b) Sugar

(i) The negotiations between the ACP States and the Co~rnunity on the 9~~~~~~~~~-eE~~~~-f?r sugar for the 1984/1985 delivery period were concluded on 26 September 1984 with prices f~xed at 44,34 ECU/100 kg for raw sugar and

54,68 ECU/100 kg for ~hite sugar. These prices, wh1ch represented no 1ncrease over those appl4cable during the previous delivery period, were accepted under protest by the ACP.

(li) Two countries acceded to Protocol No 7 on ACP sugar dur1ng 1984. They were Saint Christopher and Nevis, with an agreed quantity of 14 800 tonnes, and the Ivory Coast w1th, for the time being, an agreed quantity of 2 000 tonnes as

from l July 1983. St Chr~stopher and Nev1s, formerly St Kitts-Nev1s, has already been supply1ng that quant1ty of sugar to the Commun1ty at preferent1al pr1ces as an OTC State.

(iii) As regards ~!~~e~~~·s request, supported by the othe~ ACP States wh4ch had acceded to the Protocol, for an 1nc~ease

in its export quota, the Community 1nfor~ed the ACP S~ates that lt was unable to agree to thls, referring in particular to the serious problems ar1s1ng from the supply situation on 1ts internal market; 1t d1d say, however, that the request could be considered, along Wlth those of other ACP States, in any reallocation of quantities ava1lable as a result of delivery shortfalls.

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(iv) The £!:~~~!~~!!~~of the conditions for implement~ng the guarantee under the Protocol on sugar, as referred ~o 1n

Article 2, cont~nued during 1984 with a view to the adopt~on of a joint statement by the 1nterested part1es. This examination was concerned in particular wlth the quest1ons

relating to the negot1atio~ of guaranteed prtces and the reallocation of quantities available. Wlth regard to the first of those questions, there are st1ll d1fferences of opin1on between the ACP States and the Community about the lnterpretation of Art1cle 5(4) of the Protocol. The Commun1ty maintalns that the ACP guaranteed pr1ce cannot be higher than the interventlon pr1ce for Communlty sugar w1thout there being a serious danger of ACP sugar proving unsaleable on the Commun1 ty' s 1nte·rnal market.

The ACP States felt that the consequences of this s1tuat1on was to prevent any real negot1at1on from tak1ng

place and that the Commun~ty was thus fail~ng to take 1n~o

account "all relevant ecor:.om1c factors" as stated ~n the Protocol.

(v) On ~~!~~~~X-~b~!!f~~~~ and reallocat1on (Artlcle 7), there were found to be differences of op1n~on between the ~wo part1es on timlng and on the powers of the CommlSSlon. Wh1le it was accepted that, 1n the event of del1very shortfalls due to force majeure, reallocat1on under Article 7(2) should

take place lmmediately 1n respect of the ent1re quan~1cy not

delivered during a given year, the ACP States, unl1ke th.e- 1, Comm1ssion, felt that a decis1on on immedlate reallocat1on should also be taken when the CommlSSlon reduced an export quota on account of delivery shortfall not attributable to force majeure (Article 7(3) and (4)).

. .. I ... - 19 -

The ACP-EEC Council of Ministers was informed that the procedure for consultations between the Commission and the ACP States concerned had been 1nitiated under Art1cle 7(4) of the Protocol following a deliverY shortfall not

attributable to force majeure on ~he part of an ACP State involving a quantity of 25 500 tonnes.

In the course of these consultatlons, the ACP proposed a formula on whlch the reallocatlons should be based. The Commission in turn, gave an lndlcation of some concerns that, 1n its opinion, needed to be taken into account ln effecting any reallocatlon.

(vi) In view of the prospect1ve accession of Portugal to the Community, the ACP States asked that, after access1on, Portugal be allowed to cont1nue to import the 300 000 tonnes of sugar it was currently importing from some Member States of the Protocol. The Community said that at th~s stage in the accession negotiations, 1t was unable to prejydge its final position on the matter.

. .. I ... - 20 -

4. INDUSTRIAL CO-OPERATION

Our~ng 1984 the joint ACP-EEC institutions continued to

supervise and guide the implementat~on of Title V of the Convention. They continued and stepped up both the general

policy aspects and the operational'activities of the bod~es set up by the Convention in order to promote industrial development in the ACP States.

(a) Proceedings of the Council of Ministers

The ACP-EEC Council of Min~sters concentrated ~n

particular on three top~cs at its meet~ng in Suva on 2 May 1984:

- ~!~~!~!~~-!~~~~~-~9_1~!~E-E~E~E~-~~-~~~E!~~~~E!Er f!~~£!~i-~!_!~9~~~£!!!_S2:~E~£!E!~~-i~~~~~-~-~2-E~~ ~2~~~~E12~l

The Council ~ook note of the joint ~eport on complementary financlng of lndustrlal co-operatlon drawn up under the aegis of the ACP-EEC Committee on Industrlal Co-operation in accordance with Annex X to the Lome Convention. This ~eport stated that the CID 1 s role in identifying, promoting and assistlng with the implementation of projects and in putting industrial

partners in touch with each oth~r should be considerably strengthened. The Centre should make greater efforts to identify projects on the ground and undertake an exhaustive compilation of feasibility

... I ... - 21 -

studies available in the ACP States. thereby making it possible to increase the number of projects that were viable and profitable. In carrying out its work, the CID should pay part1cular attention to identifying potential ACP and EEC partners who were likely to be able to particlpate in joint 1nvestment operations. The report also advocated giving special attention to develop1ng co-financing. Lastly, it stressed the need for increased and more effective co-ordination between the Commission, the EIB and the CID so as to ·encourage a greater degree of complementar1ty in the1r operat1ons.

As regards the volume of EIB and EDF resources (second Lome Convention), the ACP States supported the proposals of the ONITRI Work1ng ?arty that these should be increased in the following way?:

= maintenance of the real value of EDF and EIS resources by us1ng the interest generated by the payments mechan1sm;

= re-establishment of the EIS's additional loan facilities (Annex XX to the first Lome Conventlon).

. .. / ... - 22 -

Pointing out that the volume of EIB and EDF resources had been fixed for the duration of the Convention, the Commission took the v~ew that complementary financing should come from economlc operators, banks and firms.

- ~~E!~~~~~~~!~~-~f-~~!~-~!-E~-E~!-~~~~~~E!~~-iJ~!~E-~~S!!£!~~~~ 2~-~£E!S!!-~~-=-!~~!!E~!~E-!~_En!_!!!~E:9!~!1~E!9~-1~912S~!9_~~ ~~!~~-~~~-§E!E!!>

The Community and the ACP States confirmed thelr agreement that, as stated in the joint report on complementary financing of industrial co-operation, Annex XI should be implemented without delay.

The ACP-EEC Council of Minlsters instructed the Committee of Ambassadors to take the necessary measures.

The Council of Ministers adopted a decision increaslng the number of members of the CID Advisory Council from 16 to 20, two new members being chosen by the Community and two by the ACP States .

. . . I ... - 23 -

(b) Proceedings of the ACP-EEC Committee on Industrial Co-operat1on

The ACP-EEC Committee on Industrial Co-operation met twice in 1984: on 30 March and 28 November. It examined in particular a number of matters relating t: ~~~-~~~~~~-f2~-!~~~~~~!~! Q~~~!2E~~~~-i~!£l·

The Committee welcomed the excellent qual1ty of these

reports .and the marked irnprovemen~ in the management of the Centre, thanks to the efforts of the Director and his staff during the 9eriod of the second Lome Convent1on. It noted w1th· satlsfaction that the CID was now able to comm1t its entire oudget.

At its meeting on 28 November 1984 the Commlttee adopted the Centre's 1985 budget in accordance w1th Artlcle 81(5) of the Convention and Article 6 of the Centre's Financ1al Regulation (Declsion No 3/81/C!C of 2 September 1981). The Commit~ee agreed to forward the budget to the Commisslon to enable lt to implement current Commun1ty procedures as far as the contribution sought from the European Development Fund was concerned. The budget would be deemed to be flnally adopted as at the date on which the Commisslon took a decis1on on the EDF grant to the CID budget for 1985. It w1ll be recalled that the EDF contribution is made by way of a separate allocatlon, of a maximum of 25 million ECU, cover1ng the entire duration of the Convention (Article 81).

. .. / ... - 24 -

The Centre's budget for 1985, as adopted by the Committee after examination of a preliminary draft submitted by the CID's

Director which was accompanied by the opin~on of the Advisory

Counc~l, amounts to 6 987 10'1 ECU, including the sum to be covered by an EDF contribution which is to be paid out of the remainder of the 25 million ECU special allocation. Apart from admin~strative appropriations of 3 408 101 ECU, the budget conta~ns appropriat~ons of 3 579 000 ECU for programme expend~ture 1n the follow~ng main areas:

- industrial promotion : 705 000 ECU

- new investment in productive undertakings, studies, assistance, public relations : 1 135 000 ECU

- technical operations and serv1ces : 1 178 000 ECU

- common expenses directly related to intervent~ons : 482 000 ECU

- expenses in respect of the Advisory"Counc~l and auditors : 79 000 ECU.

. .. I .. 25 -

Art1cle 78(l)(d) of the Convent1on lays down that the ere shall guide, superv1se and control the actlVltles of the CID. In pe rform1ng thi.s task the Comm1 ttae took a number of declsions dur .. 1,g 1984, includlng:

a Decision g1v1ng a dlscharge to the Director of the CID 1n respect of implementation of the Centre's 1983 buaget {Artlcle 20 of the Centre's F1nanc1al Regulatlon);

- adJustment of the salaries of CID staff to take account of changes 1n the cost of llVlng and purchas1ng power (Artlcle 27(3) of Dec1S1on 2/81/CIC laying down the condltions of employment of CID staff);

- appo1ntment of new members to the CID Advlsory Counc1l follow1ng the increase 1n the number of members from 16 to 20.

The Comm1ttee consldered the quest1on of the transltlonal arrangemencs necessary from the date of exp1ry of the second Lome Convention unt1l entry 1nto force of the third Lome Convent1on.

In this connect1on the Comm1ttee took note of the formal nomination by the ACP States of Mr AKINRELE, the CID•s present Deputy director.

At 1ts meetlng on 22 February 1985 the Committee of Ambassadors asked the Cornmltcee on Industrlal Co-operatlon to take the dec1s1ons nec~ssary to the Centre's operat1on during ~he transitlonal period (1n particular extenslon of of the period of validity of contracts) and to appo1nt Mr AKINRELE and Mr MOSGARD as Director and Deputy D1rector respectively as from 15 May 1985. . .. I . .. - 26 -

(c) ActlVl~les of the Centre for Indust~lal Develooment ( 1 )

Com1ng------to the end of the Lome II Convent~on

l9E4 ··•as the last year of ac:tl.Vlty before the end of t.l"le Lome ~:! Convent~or.. The re?Ort therefore not only gives an account of the year's activ:~~es but also su~arizes CID's ac:~l.evement~ c~r~ns ~~e past :our vea~s.

s~~e o~servat::~.o~~ are also made in relat~on to the ~ew Looe C cr.-,;e:-. ~.:.on . ---

The------overall evaluatlon of four years of operation under Lome II :::: S?: ~e c: t."'l.e p:-:;,gress i ve dete~ ~ora t~on of t::e econowi.c: s~ tn."­ ~:en ~~ t~e AC? co~~~=~es du~~g the Lome II Convent~on, CI~ ?=~v~de~ essent1al l.nputs 1n :

- t~e crea~1on o! 41 new or rehabl.litated ~j~ustr~es;

- t::e l~?rovement of ~~e ope~ation of so~e 150 e~ter?rises t:.rc·..:.gh the pr:Jv::~.s~on of assl.stance for e=

T!"::.s r;r:.~;s t...~e r.u~er of ::~.ndust.ries t."lat have pnys~cal.ly ga.!.ned ==am c:~·s aSS.!.S~a~ce duri~; Lo~e II to 191.

O~ly l~ t.~e case of t~e 41 pro:ects has lt been ?OSS~le to ob~al~ ~!=o~a~~on on ~~e ei:ec~ o: C!~'s c:ataly~l.C ac~.!.on on enplcy~en~ created - JObs :or 2,895 pe~sons - ~~d on ::~.~vest~en~ - 77 :':llll~on ECt.:'.

:~ act~al fact, t.~e effects of tra~L~g and rehabilitat.1on ~xer­ c.!.ses may be more i~portant ~ ~~at they rev.!.ve L!ves~~ents t.."lat !'lave already been made.

c:~'s management is still of the o~inion that the effect of CI~'s work ca~!Ot be measured in the same quantl.fied ter:s (~mployrnent/~~vest.~ent) as tbat of ~vest.~ent ~nst~tut.~ons, ?a=~~cularly when t.~ree-quarters (iSO) of .!.ts ~!terve~t~ons, wh~cn have shown results so far, relate to ex~sting lndust:l.es, ofte~ Wlth marglnal pro!l.tability potent~al, where flnar1ce L~sti­ tut~ons fear to tread.

1 4 ( ) Th1s summary was dra\•m up by the Management of the Centre. It does not necessar1ly reflect tne v1ews of the ACP-EEC Council of M~nisters, partl.cularl:r w1.th regard to the comments made on the thlrd Convent1on of Lorn€.

. .. I .. - 27 -

An analys~s of the general impact of CID's asslstance, based on replies to the quest~onnaires sent to rec;pients of -~ss~st­ ance, ;ave the following r~sults :

3i\ indicated that the assistance was decisive for t~eir operat~on

~-s - ~~- indicated t~at the asslstance was si;ni!lcant 5% ~r.dicated that ~e assistance was of win or i~?ortanc~.

This analysls is based on a 64% response to questio~na~res sen~ to 65 promoters who have received ass~stance over the last two years.

Althoug~ these res~lts mav not seem lm~ortant in ~~e overall evaluat~on of econo~1c de~elopment in ~he ACP count=ies, 't~ey should be seen as nuclei or seed projects lead~ng to :ur'the= develop~ent, and are often s~all proJects that should be gro~t~ po1nts.

Nevertheless, cons1dering CID's l~m~ted f~~ds and sta=f, a d~rec~ catalytic effect of lrnportance has been ach~evec, also in ~e eyes of ~~e rec1p1ent AC? industr1es.

The new Conventlon ------~-~- C!D has not been part of ~~e negot1at1ons for t~e new Conven~~on but, 1n an early paper dest1ned for the negot1at~g pa=~les, 1ts Adv1sorv Counc1l had e~~ressed def~n1te v:ews on ~~e Lc~f III Cor.vention,-SOille of wh~ch were taken into ccnslce=a~~on ~n tne new doe~en~.

T~e pos~t~ve as?ec~s of ~ome !!! :

- In l~eu o= t~e Advlsorv Co~,Cll 1 C!~ shall have a Gover~1r.g Board wh~c~ w:ll be e~~itlec to ac~rove ~~d cont=ol ~~e use of ~~e bud~et. The Cor.~~ttee on Indust=lal Coo~era~lon (Cl~), howeve=, w~ll prov1de a ge~eral f=amework for CID's operat~or.s.

·- The addltlon of trade promotion for the ma=keti~g of rnanu=ac­ tured goods ~s a ver~ical ~nte;rat~on o! c:~'s func~~ons and can therefore be a pos~t1ve re~n!orcement of its se=v~ces.

More peripheral, but an important aspect of th~ Convent~on as far as C!D is concerned, is ~~e em~has1s on facili~at~~g private investment through risk cap~tal ahd guarantee schemes .

. . . . [ ... - 28 -

To be of real importance for CID 1 S work, however, the detailee fraoework st~ll to be established within ~~e Convention shcule alleviate the heavy b~reaucracy in allocati~g funds and L~e need for government guarantees.

- C!D's name w~ll be changed to the "Centre for the Developme~t of Ind~stry". The negative aspects

The re?eated ar.d insistent suggestions of the Advisory Counc~l that CID's work area should be more limited have no~ led to a reduct~on of CID's ObJectives and tasks; on the contrary, f 1..lnctions have been added. In contradJ.ctJ.on to tr..~s l.ncrease ~n tasks, tr.e financ~al envelope of 40 m.J.llion ECU, foreseen for C!D dur~:1g the next Convent.l.on, is, in real terms, a reC.uc·· t.J.on of C!O's budget. To remain at ~~e level of the 1985 budget {7 .rnilll.on ECU) and cons~dering the trend in inflation, the anount should have been substantlally more than 40 mlll1on ECU. Therefore CID's 1mpact w1ll cont1nue to be lim1ted by funds and staff, although ' 1t has proved that 1t could ut1lize 1ts funds eff1c1ently.

T~.l.s Sltuat~on LS also contradictory to the sug;es~~ons of the Adv~sory Co1..:.nc.ll a.?J.d o: the AC?-.::EC Consult.a-:.l.ve Assembly and to the staternen~s prov~ded by various ?res~dencl.es of ~~e ACP-EZC Co~~c.l.l of MJ.nisters who had suggestad re.l.n:orcL,g CID.

------The year 1984 T~e year ~as not f:avoured by ex~raordina:y events ~ut was charac~er.l.zed by down-to-earth ~ntense act~v~~y whe~e bo~~ ~= s~a.f: a::.d the b1..!dget. have been worked to the l.!.:ra t.

Al~~o1..!gh events, sucn as the agro-food meet.!.n~ .!.~ Br~ssels for East and Southern Air~ca and o~~er prornot.l.on meet.!.nss .l.!l Europe, have been a.!.~ed at d~veloping new lnl.t.J.atl.ves, C!D's ope~at.J.ons have requ~red more follow-up of prOJects. :ewer promo~~na~.m~s3ions have ~~erefore been unde=~a~en to AC? countries and mo~e consul~ants have been ut.!.lJ.zed to id~~t~iy and subs~ant~ate proJects. As a matter of fac-=·, t.."le demands from AC? industries are now so numerous that neither ~~e budget nor L~e staff sufiice to meet all ~,e requests.

. .. I ... - 29 -

~~!!!~!~!~~-~!-~~~-~~~i!~-!~_!2~~ CIO has gener~!ly committed i~s buaqet appropr~ations as far as this ~s possible in practice.

The total co~~itment percentage of 93\ for 19S~ is smaller than the 1983 f~g~re (97\). This is due to more effic~ent deco~~itments at the end of the year for projects that had not used up the initially estimated co~~tments. Savings nave ~lso been made, howeve:, e.g. on travel costs.

The increasingly pos~t~ve budget performance ~s more ev~dent from ~~e overall d~sbursements attained over ~~e a~~~or~zed two-year period vis-a-vis budqet&ry appropr~at~ons

Disbursements

A!ter ~~e lst year After ~~e 2nd year of execution o: e.xecu t~on

1982 budget 59~ 74, 1983 budget 65\ 84% 1984 budget ,,, 90% (expec-ced)

~~suncerstandings as to CID'a al~inistrative c~sts have arise~ in the past cue to ~,e s~ecial iVlSlOn of ~~e buege~. Cal=ular tions ver~fied by the ~~-ce~al auditors sugges~ ~~a~ or.ly 25% o:: t.!le total budge~ ~s \:.Sed for ad..-:ti.:ust=a-:.~cn i!lcluC.~!'!g t=ans·· la~~o~, o::~ce cos~, et:. Th~s is JUS~~f~eC ~v ~~e fact ~~~~ ... t ~ ... " - l ... ~. t~ - .. • , ~~e maJor~ y o. ~~a pro:ess~ona s~a.~ wor~ as exper-s, c~=ec~-Y proviC.~!'!g &ss~st~~ce.

. .. I ... - 30 -

~u=ber of ClD Interven~icns Per Year

M• o1 Intervent\0- ... ~

319-

FlGUii.E ~$

F~qure l shews hew the volume of CID's tec~~~cal ass1star.ce proJects has increased year by year &1nce 1981, reaching 319 1nd~v~dually-ass1sted proJects in 1984. These are pro­ Jects Where CID has prov~ded both a financ~al ~nput as well as a ccntr~ut~on/evaluation from ~ts own sta!t.

Whereas t.~e number of interventions increased b~· more than 100% eve~ year up to 1982, the increases of ~~e last two years have tapered off. This is furtber ev1dence of C!D be~. q close to reach1ng its maxLmum number of poss~le in~e:ventions with the existing meAns:

... / ... M" el 111relect1 •(u.u\atlv• flaurea) ...... (Ia ~VlPAil (Va\UAll~ !! I!! 1!.!1 ~I~! ,, ... , .. Ul ltarte4 predUctten• •• llthalatiUatten - I" •t u' In,, I u., I u ~r•l•cts ~lth vert- ·=· ...... ,...... c •• lie~ ~ll&lve alfecll .·.: .. :.:...... Jralnlnt praJccte wllll verified I tlttiUilll ll poaltlve alltcte }:p.~:;;r~L 100 /..... ·... · letat nuelbcr of .·. '•'' prehu• wHa. 1.!~.~!~.! ~! !. ~~!.. !!! .. :;. _:_\(::;/. _:· dlract production ~1'.,iiW ;.: ::_=x .: .... I..N .&.oac:t . ·. : . :~=~· :.::·: .-~-- ~ ...... ··.·. - /.=·· 1111• ...... ,_ .... ·: . '0

Started production 1 1ncludea l~leecnted ed~led lalhnolowr project• and the rettartlng of unlla that were ca.pletelv Idle.

ell'li'l I - Ylllfl

t'JGURE 2 • ...... _ Whereas Fiq.l relates lo the number of interventions undertaken by CJD, Fi9. 2 relalco lo the numLct· of projects that have been successfully promoted oud noulHlPtl dur ln

(d) Act~vlties of the European Investment Bank 1n the 1 industrial sphere ( )

A general outline of the act1v1t1es of the European Investment Bank (EIB) in the AC? countries and the OCT in 1984 is given in I!I 6(d).

Overall, manufacturing industry received 53% of the total f1nanc1ng, directly-financed industrial projects accounting for 35% and global loans for 18%.

For projects in the industrial sector alone, the average cost of employment created amounts to 360 000 ECU for

~nd1vidual projects and to ten t1mes less for global loan appropriations. However, the main a1m of a number of the 1ndustrial projects financed is not the creat1on of jobs but

the development or r~habilitat1on of undertakings wh1ch are economically and f1nanc1ally viable.

1 ( ) The lnformation in th1s paragraph was suppl1ed by the European Investment Bank.

. .. I . .. - 33 -

In the industrial sector (excluding energy), about--­ two-thirds of direct f~nancing and global loan allocations were granted for projects aimed chiefly at developing national resources and the use of local manpower. The aim of the other­ industrial investments, mainly financed 'fxom global loans, is the processing of 1mported products.

More than half the amount allocated relates to ~ndustrial investments (89,6 million), in partlcular the manufacturing sector (26,9%), agto~industry (10,5%) and assistance for development banks (18,3%). The amount drawn down on global loans in progress rose from 21 milllon 1n 1983 to 38,1 million in 1984 for 92 small and med~um-s1zed 1nvestments, part~cularly in the agri-industrial sector (41%), the textile sector (16%), the wood process~ng ~ndustry (10%) and the tourist industry (8,5%).

An important aspect of activities 1n the industrial sector ~s the relat~vely large proportion of operations a~med at ~he rehabilitation and renovation of undertakings and prov1d~ng them w1th initial aid: 31,4 million 1.e. 43% of ass~stance from r1sk capital were allocated to such operat1ons.

. .. / ... - 34 -

Investment financed individually or by global loan allocat4ons should contribute towards the direct creation of some 4 000 jobs, mainly :n the industrlal and agr1-1ndustr1al sectors; in industry, the average investment cost per job created is 360 000 ECU for.individual projects and ten times less for global loan appropriations. These figures do not take account of rehabilltation and lnitial aid ~rojects, the main objective of which is to make undertakings capable of operating on an economically and f1nanc1ally v1able bas1s.

. .. I ... - 35 -

S. AGRICULTURAL CO-OPERATION

The main objective of agricultural co-operation between the Community and the ACP States is to assist the ACP States in their efforts to resolve problems relating to rural development and the improvement and expansion of agricultural production for domestic consumption and export, and to strenthen the security of food supplies for their populations.

The speciflc aspects of agricultural co-operation outlined in title VI of the Convent1on include the establishment of the !!£~~!£!!_~~~!E!_f~£-~S£!£~!!~£~! ~~-~~E!!_~~=~E~£~!!~~ (TCA), the headquarters of which are at present in Wageningen (Netherlands).

After certain initial difficulties, 1984 was the first year of full operation of the TCA.

(a) Activity report of the TCA

In November 1984, Mr ASSOUMOU MBA, Director of the Centre, submitted to the ACP-EEC Comm1ttee of Ambassadors and to the ACP-EEC Sub-Committee on Co-operation in Agrlcultura1 and Rural Development his first report on the activities of the TCA covering the period 15 October 1983 to 15 October 1984.

The main aspects of this report may be summarized as follows:

... I ... - 36 -

The TCA's ma~n activities during that pe~iod consisted of seminars, studies and publications. In additlon, the TCA pa~ticip~ted 1n var1ous meetings of other o~gan~zations.

An initial meeting of delegates was held in Wageningen f~om

2 to 6 April 1984. A debate was devoted to the p~oblems posed by agricultural and ~ural development, with part1cular ~eference to c~op production. l1vestock p~oduct1on sectors and measures to combat desertification. Recommendations for the TCA's p~io~1t1es and activities in the next few years were approved. These

~ecommendations are aimed 1n particular at improving the present food s1tuation in the ACP countries.

Ir. conjunction Wlth other specialized agencies. the TCA organ1zed a'seminar in Bujumbura. aurundi, from 24 to 26 October 1984 on basic an1mal health systems in Afr1ca. It focussed ln particular on reforming existlng livestock serv1ces.

Ano~her seminar was held in Montpelller from 10 to 15 December 1984 on New Med1a Technology for Agrlcul~ural and Rural Development 1n ACP countr1es. It exam~ned the p~oblems connected with the sources, transfer and repackag1ng of sc1entific and techn1cal 1nformat1on.

. .. I . .. - 37 -

In addition, the TCA organized a workshop on agricultural research policy and organ~zation in small countries and took part in a symposium on livestock production in tropical countries (Bad Soden, Federal Republic of Germany) and in a seminar in Dakar on Lome III - An Agenda for Africa.

Taking into consideration the recommendations made at the abovementioned Conference of delegates, the TCA has asked a number of institutions and individuals to prepare studies on l~s behalf within the priority fields determined and relating to

- early warning systems tor crop protection; - seed multiplication in ACP countries; - agroforestry.

The TCA also conducted preparatory work for the establishment of a focal point system. The main activities of these focal

~oints in Europe Wlll be the compilation and the transfer of existing info~ation to the ACP countries, wnereas in the ACP countrles they Wlll consist in the dissemination of scientlf~c and technical information to target groups and the report1ng of exlsting problems and results of field operations to TCA headquarters.

. .. I ... - 38 -

(b) Activity programme and preliminary draft budget of the TCA for 1985

In November 1984 the TCA also submitted to the Committee

of Ambassadors its activ~ty programme and 1ts prelim~nary draft budget for 1985.

The activity programme ~s based on the priorities def~ned

at the delegates• meeting in Apr~l 1984 and concerns in

particular food crops, l~vestock production, desertification and meetings of experts.

The 1985 preliminary draft budget provides for an approximate doubling of the 1984 budget and an increase in TCA staff from 12 to 24 officials.

The 1985 budget was f1nal1zed by the ACP-EEC Subcomm1ttee on Co-operation 1n Agricultural and Rural Development following a deta1led exam1nat1on (Artlcle 6 of the TCA's Financial Regulation). On 22 February 1985 the Comm1ttee of Ambassadors, on the bas1s of a report from the subcomm1ttee, agreed to the overall appropr1at1ons for the 1985 budget and for the measures necessary for the operat1on of the Centre dur1ng the trans1t1onal per1od in 1985. The budget 'was f1nally adopted by the ACP-EEC Committee of Ambassadors on the bas1s of the declSion taken w1th regard to the EDF's contr1but1on.

The Comm1ttee of Ambassadors conf1rmed the appo1ntment of Mr ASSOUMOU MBA as D1rector and of Mr tre1tz as ass1stant adviser to the Director.

. .. I ... - 39 -

6. FINANCIAL AND TECHNICAL CO-OPERATION

(a) Discussions of the Council of Ministers ~ ------~---~------

The main event in the financial and techn~cal co-operation sector in 1984 was the adoption by the ACP-EEC Council of Ministers of a ~esolution·on financial and technical co-operation on 2 May 1984 in Suva (Fiji) on the basis of the discussions conducted by the Article 108 Committee. This resolution, the full text of which is set out ln Annex I,

contains new ideas for further imp~ovement in co-operation under the second Lome Convention and makes recommendations on a series of key questions (principles: co-financing, micro-projects, regional co-operation, programme aid and maintenance; procedures: financ1ng of overruns, payment procedures; sectors: agriculture, rural projects and food strategies, anergy,

human ~esources, health and social services, transport and communications, environment and development.

(b) Discussions of the Article 108 Committee ------~

The Article 108 Committee held two meetings at authortzed representative level on 28 March and 18 Aprtl 1984

and a meeting at min~sterial level on l' May 1984 tn Suva immediately after the 9th ordinary meeting of the ACP-EEC Council of Ministers on 2 May 1984.

. .... I ..... - 4U -

The Committee examined the Comm~ss~on report on the management of financial and technical co-operation 1n 1982 and

the comments made in this connect~on by the ACP States.

The Committee discussed a number 9f texts on (ex-post) evaluation on the basis of texts prepared by the Article 108 technical Working Party.

Following the technical Work~ng ?arty's preparatory discussions, it focused its attent1on on the preparat1on of a

detailed report to the ACP-EEC Counc~l of Ministers on the implementation of financial and technical co-operation and of

the resolution on financial and techn~cal co-operatlon referred to in 6 ( a ) above .

The discuss1ons of the Art1cle 108 Committee, conducted alongside the Lome III negotiat1ons, fac~l~tated these negotiations considerably as regards f1nanc1al and techn1cal co-operation. Numerous ideas which were broached within the

Committee were subsequently enshr1ned in the new Convent~on,

while the posit1ve working atmospnere w1th1n the Comm~ttee

contributed the relatively rapid complet1on of the d1scuss~ons in the negotiating bodies.

Following a recommendat1on of the ACP-EEC Councll of Ministers in Suva (2 May 1984), the three resolutions on financial and technical co-operation (Libreville 1982, Brussels 1983, Suva 1984) and the report on the implementat1on of financial and technical co-operat1on were published 1n the March/April l985(No 90) edition of the ACP-EEC Courier.

(c) Statistical------results of the 4th and 5th EDFs The follow1ng tables illustrate the sltuation as regards comm1tments and payments under the 4th and 5th EDFs at the end of the year covered by ~his report.

. .. I ... ' ~-~t_~~e--~~~~~~~-

IAHAI1AS - - 45 352 23& - - 80 1. 136 BARBADOS 375 - 130 396 100 - - 258 950 BENIN 21.081 - 4.131 2.540 - - - 1.824 :no BOTSWANA 14.043 - 55 1.430 513 1. 900 - 1.061 650 BURUNDI 45.104 1.173 2.070 4.086 - - - 1.857 4.CJ60 CA11EROON 25.512 410 4.736 2.230 383 - - 3.652 22.02CJ upE VERDE 3.516 14 300 100 - .: - 33 CENTRA L AFRICA 32.507 13G 2.334 1.911 19 227 - 2.339 CCI10103 5.422 - 669 120 70 - - 436 CONGO 22.020 - 57 1. !00 107 - - 2.161 6. 706 I IVORY COAST 9.274 300 1.412 3.525 2.353 - - 3. 37ft 22.804 ....1:- DJIBOUTI 463 315 847 928 - - - 49 C011INICA 460 -- ao -- - 180 ETHIOPIA 111.125 151 931 4. 025 500 - - 1.135 FIJI 1. 500 996 500 230 - - - 41t7 6.674 GABON 111 - 548 1.180 124 - - 1.619 7.412 GAMBIA 9.921 44 330 988 - - - 761 GHA!oiA 23.121 857 851 2.581 1.010 - - 2.003 19.570 GRENA IDA 1.639 243 38 .80 - - - 131 GUIH f.A.COHAKRY 26.023 830 1.101 115 - !0.000 - 1.677 25.400 GUINEA-BISSAU 17.018 - 616 1. 401 155 - - 1.196 EQUATORIAL C"IDW....A 6.772 - 86 1'•2 - - - 25 GUYANA 4.212 166 764 631 - 126 • - 981 6.8!9 UPPER VOLTA 51.424 1.151 4.388 3.'2~7 100 - - 2.751 7.000 JAMAICA 3.790 300 7 3 290 1.790 - - 1.418 8.6:!7 KE~YA 26.880 2.420 1. 02- 3.3oa f.(lQ 215 - 2 .'tl2 :57.758 ·-·------~-~-~------·------I -SUBSIDIES T --·------~------1 INVEST-- I MICRO I LINKED I GENERAL I 'l'RADE I INDUSTI-

KIRIBATI 3.227 LESOTKO 13.830 280 549 3.826 l. 026 :5.onn LIBERIA 16.122 300 795 3.265 :\00 1.710 MADAGASCAR 48.879 2.060 2.441 6.795 l. 465 3.107 6.000 MALAWI 46.032 1. 000 1. 050 3.275 679 3.282 1.470 1 L 705 MALI 66.992 2 .. '!5 2.H2 322 2.333 1.376 MAURITIUS 2. 960 330 700 621 876 10.601' MAURITANIA :n. 334 1.159 761 2.S52

NIGER 64.231 1.325 ~- 789 111 3.132 NIGERIA 2. 320 1.264 4.90!.' 288 1. 050 UiANDA 59.575 578 3.502 111 1. 400 9. 715 p PAPUA NEW GUINEA 3.622 515 331 1. 436 603 3.501 N

RWANDA 52.866 1.809 1.382 1.~60 2.')f>4 ST LUCIA 860 223 ST VINCENT

OOLOMON ISLANDS 719 29 50 32 6.760 WESTERN SAMOA 2.386 668 467 127 166 890 SAO TOME AND PRINCIPE 1. 219 489 90 117 SENEGAL 30.525 340 2_953 4.304 631 590 3. 760 l q 334 SEYCHELLES 1.987 375 40 106

SIER~A LEONE 23.463 740 771 2.)00 1.231 3.770 SOMALIA 44.862 8.503 3. 737 2.208 SUDAN 61.593 426 6.951 5.064 382 lt!l 3.008 15 oro SURINAME 932 452 121 940 500 1. 17 9 1 L 500 SWAZILAND f,.259 75 2 000 70 566 3.497 TANZANIA 67.163 1 530 575 40 529 2.256 :S2_85'J ------i·------s·u·a·s_i_n_i_£_8______------i~:---i-M!CRO ____ iLiNKED----i~--i-TRA6i ____ iiNDus1rRiJUJ------u~GEMENTi-srEcrAL- I MEN1'S 1 PROJECTS !TECHNICAL I TECHNICAL! PRTIONlOO-OPERAT I !mSTS I I.DANS ------~------~------~~P~-~~PERA~~------~------~------· --~------1 OiAD 38.724 380 521 4.650 - - - 2.606 7.550 TOGO 27.049 377 298 5.530 19 - - 2.122 2.278 TONGA 2.756 - 196 60 33 - - 116 130 TRINIDAD AND TOBAGO - - '520 2.28!1 - H6 - 929 2.1'" TUVALU 400 205 ZAIRE 76.700 - 2. '?2 8.007 122 - - 3.389 8.031 ZAttBIE 18.769 JOO 2.669 4. 970 507 - - 1.1l74 17.595 SUB-TOTAL ------1. 289.365 18.769 70.725 119.742 13.111 18.510 - 81.704 359.391

REGIONAL PROJECTS 159.505 14.652 25.71!5 l't. 321 9.737 - - 72.1!64 ------·------··--- ruB-TOTAL 159.505 - 14.652 25.7!5 lC..l'21 9. 7l1 - - 72_,,,. cxx:mos .....~ DJIBOUTI 1.204 GUADELOUPE 300 ------3311 1.400 FRENCH GUYANA 465 ------~~ 1. eu "ARTINIQUE 266 ------285 1.4~~ MAYOTTE 1.430 ------152 :SSG NEW CALEDONIA 1.238 500 - 400 - - - 132 91.!0 VANUATU (FRANCE> 450 235 262 - - - - 23 F'REl'O-I PO~IA 626 - 230 - - - - 103 91)0 REUNION 400 ------171 ;t.HO SAINT PIERRE AND MIQUELON ------lll HI) FRENCH SOUTHERN TERRITORIES WALLIS AND FUTUNA. 2.258 ------53 NETHERLANDS ANTILLES 4.792 150 885 3.603 - - - 1 .331 8.0lt2 BELIZE 523 - 'd - - 55 - 187 2.360 ~------~ I SUBSIDIES 1 ------;-~:---;-M!cR6 ____ !LiNK[D----~~--~-TRA6E----iiNDVsTRiAji------·---~~i--~~- r MENI'S 1 PROJECTS I TECHNICAL I TECHNICAL ! PRCM:YI'ICI>Jl OO-OPERAT 1 !msTS 1 LDANS 1 I I I I I I 1 I ------~ERAX--~ERA~------

BRUNEI CAYMAN ISLANDS IS 4'H CARIBBEAN 1. 709 459 30 60 146 495 JXroNICA 1. 960 - FALKLAND ISLANDS -. 20 21 KIRIBATI 170 121 VANUATU (UK) 450 235 26? 23 f10NTSERRAT 414 28 PITCAIRN 47 sr HELENA 39

~ ST~ 2.735 325 222 - ~ STWCIA 2.180 65 108 162 SJLOMON ISLANDS 292 550 157 760 217 ANI'ARCTIC TERRITORIES (UK) INDIAN OCEAN TERRITORIES (UK) TURKS AND CAICOS 207 9 TUVALU 20 VIRGIN ISLANDS 21 461

SUB-'IDrAL 24.068 1. 735 2.739 4.793 ~' 55 4.1?5 21 -!Ill

5.790 Ail... ACP cl 00 AIL FRENCH OCT Ail... TERRITORIES (UK) 300 100 Ail... COUNTRIES AND TERRITORIES 9.865 6.697 SUB-TOTAL 10.165 201) 12 487

TOTAL 1.483.103 20.504 u.. t 1 ~ 150.520 27.')')1 28.302 98.386 452.755 ~------,, I . I SUBSIDIES! ------~------~------~------I£XcEJ;_- --[li~si_{_RfsK _____ i ______i ______i ______I TOTAL I STABEX I ITIONAL I~ DIES I CAPITAL I GRAND I PAYMENI'S I ------~------I I I lAID I TE'tB I (EIB) 1 'IOTAL I I BAHAMAS 1.851 - - - - - 1.851 1.21U BARBADOS 2.210 - .- 50 1.215 - 3.474 3.120 lENIN 36.925 20.367 - 19 - 350 57.661 54.282 BOTSWANA 19.651 - - 2.670 1.253 1. 750 25.321t 22.707 BURUNDI 59.250 1.486 - 2.055 - 497 63.283 51.372 ~ 58.952 4.065 - 2.300 lt.207 5.000 74.523 61.343 ~VERDE 4.033 1. 207 - 1.341 - 3.580 10.161 9.754 CENl'RAL AFRICA 39.537 7.830 - 986 - - 48.352 v •. 982 CXM)RQS 6. 717 - - ::.869 - 12 9.59& &.545 CO .. GO 32.151 7.362 - 166 . 3.083 42.762 42.121 ~ IVORY COAST 43. Oltl 15.000 - 125 7.097 925 66.187 55.260 V'l DJIBOUTI 2.602 - - 1.310 - 1. ,00 4. 912 ". 392 IXJ'tUNICA 720 - - 3.900 - - 4.620 ,.-.557 EI'HIOPIA 119.975 14.420 - 4.651 - - 139. Olt7 121.176 FIJI 10.346 2.115 - 3.589 3.!64 119 20.032 19.451 GABON 10.994 6.703 - - -- 17.697 17.042 GAMBIA 12.045 7.515 - 749 - 2.358 22.666 20.104 Gt'AHA 50.000 5.176 - 2.725 1.864 222 59.988 58.902 GRENADA 2.131 - - 451 - ... 2.582 2.475 GUINEA-CONAKRY 65.146 - - 3.035 442 3'1!' 68.923 66 .lP5 GUINEA-BISSAU 20.185 11.288 - 4S::' - - 32.125 30.632 EOUITORIAL GUINEA 7.025 - - 301J - - 7.325 6.854 GUYANA ll.697 - - - - 3.20!i 16.897 16.8.33 UPPER VOLTA 70.041 7.262 - - 1. 636 7.608 86.546 7l.01Q JAMAICA 19.223 - - 1.175 - - 20.398 15.078 KE~YA /4.4 J 1 - - 1.339 8.4r-5 1.241 85.456 32 .35::! ------~-~------·------~ I I SUBSIDIES! ------~------i------~------IEiCiP~- --~i~~i-i-Ri8K-----~------~------~------I TOTAL I STABEX I ITIBNAL 1 ~rDIES I CAPIT)ru... I GRAND I PAYMENTS I I I I IAI I t£rf.i) I (EIB I 'IDTAL I I ------w------~-----

KIRIBATI 3.227 3.227 1.649 LESOTHO 22.511 1.146 98 23.755 18.666 LIBERIA 22.011 7.587 1-235 365 ll. 198 27.582 PtAOACASCAR 70.748 5.748 1. 518 2.286 80.300 72.fJ37 MALAWI 63.493 2.575 2.259 1. 552 74.879 68.430 1'1AL1 76.190 fJ.781 l. 018 6.360 93.349 85.127 I"AURITIUS 16.097 4. 537 2.225 35 22.894 17.918 MAURITANIA 35.805 37.000 1.427 3.637 77.870 76.023 .. 661 !03.713 96.705 .t:> HlGER 71.588 22.654 950 860 0\ NIGERIA 9.822 9 0?3 18.845 15.653 u:;ANDA 14.941 20.595 3.327 350 99.214 74.272 PAPUA tillN GUINEA 10.058 1.124 1. 600 12.782 10.642 RWANDA 60.481 609 5. 926 3 000 70.016 6 7. 7 08 ST WCIA 1. 083 1. 000 180 2.263 2.169 STVI~ OOI...OMON ISLANDS 7.590 7.590 6.701 WESTERN SAl'Jk)A 4.703 2.837 7.541 7 .29(1 SAO TOME AND PRIOCIPE 1. 915 300 2.215 2.132

SEHEGH 62.437 65.106 4.598 1 . 7 'i 6 7.440 141.348 135.344 SEYCHELLES 2.508 580 3.088 3.039

SIER~A LEONE 32.274 3. 977 36.252 31.021

SOMALIA 59.310 1. 932 13.346 212 7 1t .800 65.182 SUDAN 92.804 41.776 4.91'> 6.500 145.'197 132.365 SURINAM 15.623 15.623 9.334 SWAZILAND 12.467 13.225 29 2.025 1.106 28.851 27_ 2!>9 TANZANIA !04.951 20_702 3 !ft 92 7.750 133.808 118.114 -~------·------·------·----~------1 I SUBSIDIESI ·------;------~------~------i"EicF.P~- --£ r~rf-i-Rf5K- -- --~ ------~------;------

I TOTAL I STABEX I ITIONAL I ~!DIES I CI>J>( IT)1\L I GRAND I PAYMENTS 1 I I I rAID I tif.fii) I EIB I 'IOTAL I I . ····------·------,i Cl-IAD 54.430 7.336 - 300 - 7.500 69.566 64.157 TOGO 37.672 3.627 - - 356 3. 043 44.698 40.473 TONGA 3.290 1.208 - 165 - - 4.663 4.245 'IRINIDAD AND TOBAGO 6.764 - - - 1.537 - 8.301 5.069 TUVALU 605 - - - - - 605 585 ZAIRE 99.073 - - 18.987 - 5.636 123.697 106.350

lAMB IE 46.784 - 16.384 1.512 3.253 \ 67.933 62.137 ------SUB-TCYrAL 1..971.116 377.496 - 125.731 57.783 90.949 2.623.275 2.350.771 REGIOOAL PRO..JFrrS 296.563 - -- 2.572 6.133 305.269 233.856 ------&JB-TCYrAL 296.563 - - - 2 572 6.133 305.269 2l3.S56 CXMJROS - 2.326 - - - - 2.326 2.326 ~ DJIBOUTI 1.204 692 - - - - 1.896 L8S4 ...... GUADELOUP'E 2.03S - - - - - 2. 038 1.876 FRErn-1 GlNANA 1.616 - - - - - 1.616 1.599 "ARTINIQUE 2.014 - - - - - 2.014 2.014 "AYOTTE 1. 932 - - - - - 1.932 152 NE.W CALEDONIA 3.170 - - - 1.514 - 4.684 4.569 VANUATU CFRANCE) 970 715 - - - - 1.686 1. 555 FRElC-1 POLENESIA 1.864 - - - - 850 2. 714 1.823 REUNION 3.021 ------3.021 771 SAINT PIERRE AND MIQUEl.ON 639 ------639 639 fRENCH SOlm-IERN TERRITORIES WALLIS AND F1JTUNA 2.311 - - - - - 2.311 2.188 NE'I'HERLANDs ANTILLES 18.803 - - -- - 18.803 14.853 BELIZE 3.677 342 - - - - 4.020 3.462 ------·------·----- I I SUBSIDIES! ------~------~------~------·-lfi(ii;_- --£!~-;-Rf5K _____ i ______i ______~---- I TOTAL I STABEX I ITIONAL I ~'&!DIES! CAPITAL I GRAND 1 PAYMENl'S I I I I I AID -- I TE:lih I (EIB) t 'IDTAL I I ------· ------~----- BRUNEI CAYMAN ISlANDS 509 509 351 CARIBBEAN 2.89& 54 2.952 2.195 OCMINICA l. 960 2.893 4.853 4.847 FALKLAND ISLANDS 41 200 241 122 KIRIUTI 291 2.283 2.574 2.556 VANUATU (UK) 970 715 1.686 1.555 "ONTSERRAT 442 442 442 PITCAIRN 47 47 47 ST HElENA 39 39 39 3.282 500 3.782 3.744 +:- ST VIl'CENI' - - CD ST UJCIA 2.514 2.514 2.165 SJUK>N ISLANDS 1.976 2.173 4.149 3.670 ANTARCTIC TERRITORIES (UK) INDIAN OCEAN TERRITORIES (UK) TURKS AND CAICOS 216 216 234 TUVALU 20 175 194 194 VIRGIN ISLANDS 482 482 428 ------··------· SUB-'I'OTAL 53.946 12. 316 500 1. 5'" - 1. J 04 74.380 62.707

ALL ACP 5,790 1~.758 17.043 13.925 ALL FREr-01 OCT 100 100 100 ALL TERRITORIES (UK) ft 00 400 400 ALL COUNrRIES AND TERRITORIES 16. 56 3 16. ')63 1ft. 538

SUB-TOTAL 22.853 ll. 258 34.111 2li.

TOTAL :' _;t,9.67R 389 1112 137.490 (, 1. ~ 71J ~~.186 3.037 OJS 2.676 297 S1tuat1on of comm~tments and payments of the 5th EDF as at 31.12.198~ (thousands ECU) ------·------1 SUBSIDIES 1 ------~------·--··---1 INVES'l"- I MICRO I LINKED I GEl'JERAL I TRADE I INDUSTIUAU AGRICUL- I T A I -~--~SPECIAL I MENTS 1 PROJECTS r TECHNICAL I 'IECHNICAL I PRCMJI'ICX~I a:>-OPERAT I TURAL 1 ..;._ • 1 UJANS 1 I 1 f"'f'\_ AD l I 1 IOO--OPERAT I l'lV l ------_.------~~~--~ERA~------ANI'IGUA BARBADOS - - 60 100 lAHAM AS 1.321 - 27 105 BARBAOOS 1. ftla - 145 350 liS BELIZE - - - 100 lENIN 20.286 l.JOO 92 3.310 235 IOTSWANA 3.950 - 219 5.900 1.100 aao IUIUHDI 26.825 1.677 865 5.000 15 11.650 CAMERI.XlN 21.850 457 2.625 409 1.010 17.928 CAPE-VERDE 9.894 246 109 750 CENmAL AFRICA 35.235 406 323 1. 915 4.700 a:M)R(S 7.247 260 893 1. 050 & CO .. GO ~ 1 16 .1!00 - 213 1.58& 91 400 10.~00 s:- IVORY OOAST 8.500 3.540 210 517 2.325 18. 3'16•0 DJIIOUTI 3.070 - - 100 lXMINICA 2.824 189 134 222 E'niiOPIA 104.150 - 477 5.154 2&.31!0 FIJI 4.400 2.600 810 l. 300 496 GABON 3.715 - 3.501 .6 00 72 - - - 5.1!'~5 GAMBIA 5.600 432 150 2.60~ 35 GtiAHA 20.245 500 1. 086 2.491 6~ - - - 7.000 GRENADA 2.827 - 31 306 120 GUINEA-CONAKRY 35.703 1. 717 2.290 986 1.670 855 .. - - 6. 'JioS GUINFA-RISSAIJ 13 650 306 525 870 EQUITORIAL GUINEA l. 35l 145 842 31)2 GJYANA 9 36 3 - 495 1.201l 19 UPPER VOLTA 51.878 :?.085 t• ,. · I 2.'1?') 7.000 Vlii/E-2/354C82lF Rev.12 1------s-u-a·s-r·o·r·:E-5 ------·------·-·------· ! ------i~_----1-Micoo----~i.iNi

JAMAICA 2. 7l5 3.550 4.912 8. 635

KE~YA 31.577 4. 738 3.~21 3.086 1.132 9.000 KIRIBATI 434 173 94 350 - LESOTHO 5.350 6.116 3.641 716 8.UO LIBERIA 2.945 600 1. 351 1.100 -

I'IADACiASCAR 32.645 3. 013 8()8 4.1')9 272 2.,311 MALAWI 34.200 950 765 4.205 214 JO 1)111) MAll 41.555 1. 055 4.078 436 1:5 400 P1AURITIUS 6.150 2.098 311 •. 100 1 7tt5 6.J)D MAURITANIA 23.343 200 168 100 4? 8 71! 0 NIGER 47.382 905 l. 456 3.208 212 8.flCO I

HIGEIUA 9.400 677 18.030 - \J\ 0 LK:WIDA 46.820 2.293 5.035 4.300 I PAPUA NEW GUINFA EE l. 530 181 3.5CO 581 4 430 RWANDA 34.450 1.800 1.324 5.170 25 120 11 9()0 STWCIA 2.865 31 521 245 18 ST VINCEN'l' 3.015 125 245 15 ~WMON ISLANDS 3.370 530 1.840 WFSTEHN SAI'ttJA 6.050 10!1 SAO TOME AND PRIOCIPE 3.403 100 30 SFHEGAL 24.206 1.840 957 5.532 l.lll 17 JO(I SEYCHEllES 2.400 327 44ft 101

5 I ER!U. lEONE 14.343 2.210 798 4.250 1 ~ 2 400 501'1AUA 29.751 2.007 5.471) 680 SUDAN 65.811 1.400 8'l6 3.3l'i 75 1.200

5URIHAI'1E 2. 634 ! ~ .. , 64 2.700 ~==~~~~~~~==~=~~~~::~~::~:~:~:~~:~~~~~~~~~~~~~~~~~~~~~~~~~~~9:ffi:~~!:_n:_r;~:-~-::::::::::::::::::::::::_::=:=~~:~======~::==~~=~=~~~~== 1 INVEST"- I MICRO I UNKED I GENERAL I TRADE I INDUSTRIAU AGRICUL I T .A. I SPECIAL ~ MENrS ~ PROJECTS ~TECHNICAL~ TECHNICAL i PR(M)'l'Ia~{OO-OPERAT L~--~------L~------~~--~PEJU\~------·--- -

SWAZILAND 8.706 254 531 2.707 27 - - - 4 700 TANZANIA 82.875 734 6HI 1.780 601 - - - "' 51)1) (}W) 34.265 1. 000 701 329 TOGO 19.976 1. 935 1.490 5.100 359 - - - 5.830 TONGA 2.920 'IRINIDAD AND TOBAGO 150 1.124 5.313 TUVALU 839 148 13 VANUATU 2.75!) 420 140 180 - - - 750 ZAIRE 53.010 482 3.158 4.001 - - - - 16 U5 ZAMBIE 17.750 2.120 1. 065 4.690 795 ?20 - - z.eoo ZIMBABWE 15.450 6.555 1.189 2. 730 337 - - - t..?OO ------~------1. 128. 182 49.943 6 1l. 742 149.225 17. !10 1 3.375 tt.3nll 870 2'2."!14 SUB-'IUrAL

REGIONAL PROJECTS 187.306 - 11.276 35.414 29.567 24.108 1.251 - 73.~~~~

------·-·.. ~. ;'• f. I SJB-'IUrAL 187.306 11.276 ~~.414 2'l. 'it:. 7 24.108 1. ?51

P1AYOTTE 1. 250 1 ?'if) NEW CALEDONIA 1. 8QO 530 50 450

FRENCH POLYNESIA r, 0 0 ~00 u~ FRENCH SOU'lHERN TERRITORIES VANUATU WALLIS AND FUI'UNA 1.200 NETHERLANDS ANTILLES 1 .... 50 6!13 2.646 555 583 BRUNEI CAYMAN ISLANDS 500 CARIBBEAN 330 70 FAlKLAND ISLANDS ------·------I I S U B S I D I E S ------~~~---~-MicRO ____ ILINKED----~~--~-TRADE----;lNDUSTRIAIJACRICUL------~------~ T.A. ~sPECIAL I 1 PROJECTS I 'JID-MCAL I TECHNICAL I I'nRAL MC II..DANS MENI'S PRCMJI'!CX~I OO-OPERAT 1 I I II'YLI'\DI;'DA.,. I fY\ t"\DI:'DArro I I I~fl~T------~~~--~Ju~~------~------

"OHTSERRAT 90 PITCAIRN ST HELENA ST KITI'S-NE.VIS ST VINCENI' Am'ARCTIC TERRITORIES (UK) INDIAN OCEAN TERRITORIES (UK) TURKS AND CAICX)S 22! VIRGIN ISLANDS '500_

SUB-'lUI'AL 6.520 830 1.101 l 596 5~5 583 2 1\50

VI tv AIL N::P AIL FREl'Oi OCT 100 AIL TERRITORIES (UK) 100 AIL ca..JliiTRIES AND TERRITORIES REGIONAL PROJECTS 1. 984 85 1.682 3.00ll

SUB-TOTAL l. 984 85 200 1. 682 l.C'~O ----- TOTAL ------·------1.323. 992 50.773 73.204 188.435 49.305 28.066 5.551 870 l'>l.fl92 ... ------·------~------·-~ I I SUBSIDIES I ------i------__ i ______i_ ---ii:Xci:P~- -- ~ rNiiREsf- i-RfSI<- -- --i ------~------;--- -· ------r TOTAL I STABEX IPR!ODUGrS ITIONAL 1 g!DIES I CAPITAL I GRAND I PAYMENI'S I I I I lAID I EIB) I (EIB) I 'IUI'AL I J ------·------~------

ANTIGUA-BARBADOS 160 200 360 231 BAHAMAS l. 453 1.45' 54 BARBADOS 2.298 ?20 3.217 1.879 SELIZE 100 312 600 l. 012 375

lfNIN 25.224 3.637 1. 299 4.500 34.!,60 11. 59~ BOTSWANA 11. 96 9 215 4.759 16 ?43 'LOS? BURUNDI 46.032 11. 024 200 6.500 63."% 29.113 CAMERooN 44.279 17.337 16.389 78.00'; n.o'l6

CAPE-VERDE 10.999 215 -. ~ 1) 0 6.300 19.214 3.659

CEN1'RAL AFRICA 42.579 4.181 r;oo ''- 1nn 52.360 24.828

CXM::JROS 9.458 2.170 344 161 ] ~ 1 ~l 4.125 COJfGO 28.292 4P.7 480 2'> 25? 12.054 \11 IVORY COAST 33.398 54.525 793 ~.998 95 714 71.3f." ~ DJIBOUTI 3.170 342 2.305 5.817 3.915 rx::l'JIINICA 3.369 3.030 500 l. 000 7.899 4.6n ETHIOPIA 138.031 5.785 48.250 500 192.615 54.31:.> FIJI 9.6'J6 2.141 2.829 4 527 1.800 20.903 15.706 GA80H 12.983 'l.392 22.374 12.24'1

GAMBIA 8.823 14.289 48 1.600 24.76~ 17.371

GI-l ANA 31.384 62.221 4.~110 13. 60'1 lll 596 70.~6'l GRENADA 3.284 3.026 2.400 8.709 5.271)

GUINEA~ONAKRY 50.165 1. lOU 1.092 52 357 19.459 GUINEA-BISSAU !5.351 2.420 3.800 21.571 7.225

IDUITORIAL CillNEA 2.639 2.639 ~?'\ GUYANA 11.077 - 3.0'l0 4.000 18.077 4.079 UPPER VOLTA '>7.550 1.047 525 69.121 28.439 ~----- ~- -~~~~-~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~:~~~~~~~~-~!~~j~~~~~~!~~~~~~~~~:~~~:~~~~~~~~~~~~~~~::::~:t------I I I MINn. I EXCEP- c INI'EREST I RISK I t 1 · I TOTAL I STABEX I l} ITIONAL I M1 IES I CAPITAL I GRAND I PAYMENI'S I I I 1PRODUCTS rAID___ I EIB r (EIB) t 'IDTAL I J. ;______~------~------·------1 JAMAICA 19.812 3.239 5.000 28 050 s no KE"YA 53.354 31.086 2.400 5.131 1.550 93.521 54 Hl KIRIBATI 1. 052 1. 534 200 2.781'l 2.152 lESOTHO 24.683 1. 291 75 3.000 29.049 9.137 liBERIA 5.996 507 700 7.2'l:S 3.649 MADAGASCAR 43.587 6.114 1.820 7.170 58.690 ~3.5~1 MAlAWI 50. 3l4 4.669 424 6.000 61 416 17.362 36.070 MALI 60.524 9.954 10.410.,,. 80.8118 MAURITIUS 17.754 750 500 19.082 5.544 1'1AURITANIA 32.559 4. 3( ') l6.9l9 15 .GIS NIGER 61.163 11.352 :, 564 76.078 27.856

28.107 25C 5.121 ll.471\ 6.177 VI NIGERIA p l£ANDA 58.448 (•. 4 a a 10.000 72.841l 26.000 PAPUA NEW GUINEA 10.222 39 182 1.363 13.800 64.567 52.698 RWANDA 54.789 7.706 2.000 700 6 5. 194 32.7.~6 ST LUCIA 3.680 1.350 220 1. 000 6.249 3.Q38 ST VINCENT - 3.400 ~01! 3.600 2. 580 SJt.IJr.'lON ISLANDS 5.740 3.790 425 9.955 4.6~3 '.vESTEI1N SAMOA 6.150 4.868 ?.00 3.325 14. 54~ 12.Jl't SAO TOME AND PRINCIPE 3.5H 7. 011 80 10.624 5 .tn ~ SENEGAL 51.168 64.880 2 14 5 ~.60S 6.289 130.0~9 87.424 SEYCHELLES 3.272 240 1. 000 4.51:! l. 352 'HERqA LEONE 24. 011 8.362 ]0.000 42 :sn 14.087 SOI'IAUA 37. Q08 2.581 15.950 9.560 65.999 44.510

~~.,..JAN 72.607 32.195 l4.S'lJ 200 119.502 76.893 SURINAME 5.560 5.560 1. 930 I I SUBSIDIES! ------~------!------~-~~~--iiXCE:P~- -- (iNiERESi_i_RfSI<- ----; ------~------;------I TOTAL I STABEX !PRODUCTS ITIONAL I~ IES I CAPITAL 1 GRAND J PAYMENI'S I I I l I AID . I IB I ( EIB) I '!UrAL I I ------~------

SWAZILAND 16.925 8.189 - no 2.117 - 27.361 12.305 TAHZAHit. 94.100 6.949 - 5!14 - 11.000 112.554 41.152 (}W) 36.295 6 1n - 11.740 - - 54.168 25.:!89 TOGO 3't.690 2r'.849 - 550 l 521 j_ 000 60.6!0 43.t.87

TONGA 2. 920 4. 011 - I.t.CC - 2.325 10.65" 7.4~~ TRINIDAD AND IDBA.GO 6.587 -- - 1.163 - 7.750 2.291 TUVALU 999 142 - - - 125 1.('66 570 VANUATU 4.240 - - - - 1. 000 5.240 1.6M ZAIRE 77.306 - 40.000 2.765 - 18.200 133.271 63.989 \11 ZAMBIE 29.340 - 55.000 1. 550 3.J40 1. 500 95.930 48.563 \11 ZIMBABWE 30.461 - - 8.000 (..(,1,-i 5.4CO 50.5,7 21.:\03 ------~ ------~---- SUB-TOTAL 1.686.992 463.134 98.000 160.477 M.926 178.114 2.67l.6l.: 1.299.8'•8

REGIONAL PROJECTS 362.210 - - - I. 335 25.414 388.959 134.607 ----~------~------·------SUB-TOTAL 362.21!1 - - - 1.3~5 25.414 388.?59 134.607

MAYOTTE 2.500 - - 270 - - 2. 770 270 NEW CALEDONIA 3 420 - - - - 1. 000 4.420 1 . 781 FRENCH POLYNESIA 1. 300 - - "175 74(1 1. 500 3.715 1.144 FRENCH SOUTHERN 'IERRITORIES VANUATU - 8.932 - - - - 8.932 8.93? WALLIS AND FUTUNA 1.200 - - - - - 1.200 1. 032 NETHERLANDS ANTILLES 5.897 - - - - 840 6.737 3.?.95 BRUNEI CAYMAN ISlANDS 500 - - - ~18 - 1. 318 66n CARIBBEAN 400 - - - - - 400 300 - 300 300 FALKLAl'ID ISLANDS ------~1------I I S U B S I D I E S. I ------i------i------~-~--liXciP~- --[~i-1-RiSK-~---~------i------; ------1 TOTAL I STABEX IPRQNV'me' ITIONAL 1 ~!DIES I CAPIT):AL I GRAND 1 PAYMENI'S 1, I I 1 'L.IlJV~,;;) tAID- - I IB) I (EIB t 'IOTAL I 1 ------·----- ______j ______

"ONTSERRAT 90 so 170 so PITCAIRN ST HELENA ST KITI'S-NEVIS 1. 000 1. 000 ltSD ST VINCENT 913 913 'Hl Am'ARCTIC TERRITORIES (UK) INDIAN OCEAN TERRITORIES (UK)

TURKS AND CAICOS 223 2:!8 53 VIRGIN ISl.ANDS 500 500 441

SUB-'l'CYrAL 16.C35 9.845 825 ._ 558 4.HO 32.602 19.331

V1 c-. AIL ACP 100 100 s AIL FREOCH OCT ALL TERRITORIES (UK) 100 100 72 AIL COUNI'RIES AND TERRITORIES REGIONAL PROJECTS 6.751 6.751 l'l3 SUB-TOTAL 6.951 6.951 P90

TOTAL 2.072.138 472.979 98.000 161.302 89.8\9 207.869 3.102.157 1.454.726 - 57 -

(d) Activities of the European Investment 9ank in the ACP countries ~~=;~;=22!-(I)------

!n 1984 finance prov1ded by the Bank amounted to 160,7 MECU, comprising 79,1 ~ECU of subsidized loans from own resources and 81,6 ME~u of risk cap1tal assistance. In spite of the persistence of a very difficult economic situation, aggravated by climatic uncertaint1es, it was possible to maintain a level of f1nanc1ng comparable w1th that of 1982. Ald was granted to 22 ACP States (18 1n_ Afr~ca, 3 1n the Caribbean and l 1n the Paclflc) and 1 OCT. Since the entry into force of the f1rst Lome Conven~1on the Bank has provided assistance to 57 of the 64 ACP countries.

(li) ~£~~~~~-~r-~~£~~£ Overall, manufacturing industry rece1ved 53% of the to~al, energy 29%, water suppl1es 15%, extractlve 1ndust~1es 2,5% and studies for ~reJects flnanced by r1sk cap1tal 0,3%.

The financial year was marked by an appreciable reduct1on in new a1d to development banks for the f1nanc1n~ of small and medium-s1zed bus1nesses. The number of allo­ cations from current global loans 1ncreased (92 as aga1nst 54 in 1983}, as d1d the amount of funds involved wh1ch reached 38,1 MECU, the average amount ~er allocat1on be1ng 414 000 ECU as aga1nst 367 000 ECU 1n 1983. The relat1vely large proport1on of operat1ons a1med at rehab1l1tat1on, renovation and prov1ding inltLal a1d for ex1st1ng proJects should also be stressed. Thus 43% of all risk cao1~al assistance went 1nto f1nanc1ng thls type of aid whlch seems likely to expand in future.

1 ( ) The 1nformat1on in th1s paragraph was supplied by th~ EIB .

. . . I ... - 58 -

The total cost of investment projects the Bank helped to finance, est~mated on the basis of provisional cost est~mates, was of the order of 700 MECU. On the basis of the appraisal files the direct effect on employment in the proJects financed may be estlmated at 4 000 JObs.

More than 60% of the risk capital assistance went to the least developed ACP States, according to the classlflcatlon 1n Art1cle 155 of the second Convent1on of Lome; nearly 75% of the loans from the Bank 1 S own ~esources were granted to the other ACP States.

Nearly 75% of the loans from own resources were granted 1n countr1es with a per capita 1ncome of more than US $ 410 and more than 90% of r1sk cap1tal assistance went to the poores~ ACP countries (per capita GDP of US$ 410 o~ less).

0

0 0

The follwoing table shows the breakdown oy sector o~ the Bank 1 s activit~es 1n the ACP States and the OCT 1n 1984 ~der the Lome Conven~ions.

. .. I . .. - 59 -

Table: Breakdown by~sector of the, Bank's operations in the ACP States·and the OCT in l984_under the Lome Convent~ons

(in m~ll~ons a£ ECU)

Loaner· Risk SECTORS from cap1.tal. Industry Energy Infra­ own opera­ Total Total lncluding resources struc­ tions ud to ture ?evelopment

AFRICA .....••..•• lld 75.9 LSl,C ~ Ben1n ...... lJ..S -4,.5 -18,0 18,0 Burundl. ...•••... 2.94 2,94 0,94 0.94 2,0 Cameroon ...... 28,0 28.0 lJ.4 14,c Ivory Coast .•.•.•• 12;5 12.6 u.s Eth.10p1.a ...•••••• 12.0 u.o u.o Gabon ...... 10.0 lO,O 10,0 Ghana ...... l0,03 10,0'3 2A3 1,5 Guinea ...... 7,5 7.3 7,.5 Gu~nea Bissau .••• 3.3 3.,! 3.5 L.1beria .....••... l :.s 5,0 5,0 s.o Madagascar ••••.•. a.o a,c 8,0 a.o Malawl...... •.•.... 3,5 3..S 3.5 Rwanda ...••.•....• :!,0 2,0 2,C Sao Tome ...... O,J4 O.Olt O,C4 Somalia ...... 7,0 7,0 7,0 Tanzan.1a ...•.•... 3.5 3.3 3,.5 Togo ...... •...... 2,4) 2.:.3 2,43 Zaire ...... 14,!6 14,16 12.16 11.15 2.0 Reg~onal (East Africa} o.; o..s 0,5 0.5 CARIBBEAN. -t •• o !J LO Jama~ca,,., ••.••••••• 4,Q ~.o St Luc~a .•••.••••. l,O 1,0 1,0 l,C St Vincent .•••...• 2.~ 2,9 :.9 PACIFIC ...•••..... t.O l:9.. !.:£ 1£ Tonga ...... -L,O 1,0 t.o 1,0

'T'OT AL. '0 ...... 79,l 81,2 54,1 24,6

OCT - ~ 0.! 0.3 -0.3 Netherlands Antilles o.s -o.s o• .a 0,8

G R A N 0 T 0 T ~ L 79 .l lED.7 1:!2.0 5/o,l-

... I . .. - 60 -

~!~~£!_i!~~!9_~~-~~~-~~~-§E!~~~-~9-2S!_!~-1~~~ The Bank provided assistance in 21 African, Caribbean and Pacific countries and one overseas territory. It granted eight loans amounting to a total of 79,1 MECU fcom lts own resources and risk capital assis~ance totalling 81,6 MECU 1n twenty-five cases. Thus total finance for the year amounted to some 160,7 MECU as agai~st 137,6 MECU in 1983 and 159,5 MECU in 1982. The level of aid provlded was still largely lnfluenced by the limited number of investment opportun1ties of a certa1n size and the economic situation in most of these countries, whlch was still difficult and aggravated by the climatlc uncertainties. The loans from own resources were accompan1ed by lnterest subsid1es from the resources of the European Develqpment Fund, except in the case of the loan for an Oll­ field in Benin. 1 Apart from industrial investment operations ( ) the loans were mainly for the development of hydrocarbon resources and for hydro-electric energy product1on (33,9 MECU, or 21% of the total), and for the water supply systems of two central African capitals (24,6 MECU).

1 ( ) These are dealt with in III 4 (d).

. .. I . .. - 61 -

'!he 1:\«> hydrocarbon exploitation projects will, 'Nhen fully operative, produce approximately 300 000 tonnes or oil equivalent a year; the hydro-electric investment projects will help in avo1ding annual imports of approximately 35 000 tonnes of petroleum products.

A large number of investment projects in the ACP States were co-financed, in particular with the World Bank and the International Finance Corporation, the European Development Fund, the Caisse Centrale de Cooperation Economique, the Commonwealth Development Corporation, the Deutsche Finanzierungsgesellschaft fUr Bete1l~gungen in Entw~cklungslandern GmbH and var~ous othe~ b~lateral or multilateral financial institutions for development aid.

. .. I ... - 62 -

In 1984 the Bank prov1ded assistance to 18 African countr1es; aid was granted for the first time to Gu~nea-Bissau and Sao Tome and Principe. In Cameroon loans totalling 28 MECU will contribute to improving and expanding water supplies in Yaounde, the cap1tal, and to extend~ng latex processing plants with a view to the production of rubber for export. In Ben1n the Bank granted a non-subsJ.dJ.zed loan from ltS own resources and risk cap1 tal as'sJ.stance to start explol t1ng an offshore oilfield (18 MECU).

In Za~re two grants of aid totalling 12 1 2 MECU were made to the Societe Financ1ere de Developpement (SOFIDE) to support small and ~edium-scale 1nvestment 1n the 1ndustrial, agro-1ndustr1al, ~ln~ng and tourist sectors. Thls was the Bank's s1xth grant of aJ.d to SOFIDE. In addltlon, a loan of 2 MECU Wlll enable Zalre, 1n assoc1atJ.on w1th the governments of Burundi and Rwanda, to fJ.nance part or 1ts share of the cost of the SINELAC 27 MW hydro­ electrlc power station.

In the Ivory Coast a loan of 12~6 MECU was.granted for the emergency lnstallatLon of four turbo-generators Wlth a total output of 100 MW, the purpose of wh~ch was to compensate for the failure of the hydro-electric installations follow1ng the exceptional drought of 1983.

. .. I .. .. - 63 -

In Ethiopia aid ot_ 12 MECU will help in the overhaul and extension of a textile mill whose production is entirely f'or the domestic market.

In Ghana the Bank agreed to a loan of' 7,6 MECU for reha­ bilitation of the Tema oil refinery, which will considerably reduce the production costs of refined products. In addition aid of 2,4 MECU will enable the State to increase its share of the cap1tal of the regional company of Ciments de l'Afrique de l'Ouest (CIMAO), whose installations are in Togo and which has already received aid from the Bank on several occasions.

In Gabon a loan of 10 MECU was granted for the extension of capacity to treat and distribute drinking water 1n the capital, Libreville.

In Madagascar global aid of 8 MECU should enable a development bank to finance the rehabilitation of small and med~um-sized industrial agro-industrial and m1ning businesses.

Ln Gu1nea a loan of 7,5 MECU was granted for improvement of the quality of the alumina produced by the Friguia company, which had previously received finance from the Bank in 1980.

In Somalia aid amounting to 7 MECU will help i~ the development of natu~al gas deposits; this project will thus reduce the cost of electricity production in the Mogadisclo area and the country•s balance of payments deficit.

In Liberia two grants of' aid totalllng 5 MECU have been made to the develoment bank to finance small and med1um-s1zed proJects, the acquisition ot' holdings in compan1es and studies .

. . . I ... - 64 -

In Guinea-Bissau a loan of 3; 8 ME;CU was ,granted for ·.the renovation of a sh~p repa~r yard working mostly for local vessels, which because of the country's part~cular geog~aphical features account for nearly half the domestic transport of goods.

In Malawi a loan of 3,5 MECU was granted to enable the State to increase its share of the capital ~n a sugar refinery with a view to helping it to overcome current diff~culties connected with the persistent weakness of the price of sugar and with transport problems.

In Tanzania aid amounting to 3,5 MECU is to help start product~on in a canvas mill; the undertaking is at present unable to function properly owing to a lack of funds for external payments which is preventing it from purchasing inter­ mediate products and essent~al spares abroad. This project was financed by the Bank once before in 1978.

In Burundi, in addition to aid amounting to 0,9 MECU for the acqu~sit~on of a share of the capital of the development bank, a loan of 2 million was granted to the State to enable it to finance part of its holding in the SINELAC hydro-electric power station project.

In Togo aid of 2,43 MECU was given to help the State ~ncrease its share of the capital 'of CIMAO.

Rwanda also received a loan of 2 MECU for .the SINELAC project.

Finally, there were two grants of a~d to finance studies, one of 0,5 MECU to the Banque de Oeveloppement des Etats de l'Afrique Centrale (BDEAC) and the other to Sao Tome and Pr1ncipe .

. . . I ... - 65 -

The Bank provided assistance to' three countries in the Caribbean:

In Jama1ca a loan of 4 MECU will contribute to the financing of equ1pment to increase the productivity of two alumina plants . by reducing fuel consumption. Emissions of pollutants from these plants will also be reduced. The Bank's first operation ih Saint Vincent and the Grenadines consisted of aid of 2,9 MECU for three hydro-electric power stations w1th a total output of 3,4 MW. This project w1ll enable a considerable economy to be made in the consumption of 1mported petrol~um products. \ In Saint Lucia two loans to the development bank will enable help to b• given in the financing of small and medium-scale 1nves~ment in industry, agro-industry and tourism (1 MECU).

In the Pacific the Bank granted two loans totalling 1 MECU to the development bank of the Kingdom of Tonga for the granting of loans and the acquisition of share holdings in connect~on with small and medium-sized industrial and tqurism projects. In the OCT the Bank granted aid of 0,8 MECU to the Government of Aruba, one of the isl~ds in the Netherlands Antilles, to f1nance an increase in the capital of the development bank.

0

0 0

The following summary gives details of these o9erations, including the cost.

. .. I ... - 66 -

1. LOANS FROM THE BANK'S OWN RESOURCES

ACP STATES - AFRICA

CAMEROON 9 602,3 million francs CFA

Plant for the treatment and distribut~on of water 1n Yaounde Republic of Cameroon for the Societe Nat~onale des Eaux 5 006,9 million francs CFA 14,6

Increase lh latex processing capacity; last phase of investment 1n agro-industrial complex near Kribi, south-west of Yaounde ~epubl~c of Cameroon for the Societe de Developpement Hevea-Cameroun-Hevecam 4 595,9 m1llion francs CFA 13,4

BENIN Second phase in the development of the Seme ollfield off the coast of Ben~n People's Republic of Benin 4 631,9 m~llion francs CFA 13,5

IVORY COAST Installation in Abidjan of four gas turbines with an overall output of 100 MW to compensate for the lack of hydro-electric power caused by the drought ~n the summer of 1983 Republ~c of the Ivory Coast 4 349,3 mill~on francs CFA 12,6

GABON Extension of water treatment and distribution 1nstallations in Libreville Societe d'Energie et d'Eau du Gabon 3 42,9, 4 million francs CFA 10,0

... I . .. - 67 -

GUINEA

Adaptatlon of the Fr~a-Kimbo factory installations in order to produce better quality alum~na Friguia 136,8 million sylis 7,5

LIBERIA Global loan to the Liberian Bank for Development and Investment for the financing of small and med~um­ sized lndustrial, agro-indus~rial and tourist ous1nesses 3 m1llion Liberian dollars 3,5

ACP STATES - CARIBBEAN

Modern~zat1on of two alumina factor1es at K~rkvine and Ewarton; equ~pment to reduce furnace fuel consumption; installat~ons for treat1ng and d~scharg1ng red sludge pollutant Jama1ca Baux~te Mining L1m1ted 12,7 m~ll1on Jama~can dollars 4,0

2. RISK CAPITAL ASSISTANCE FROM EUROPEAN DEVELOPMENT FUND RESOURCES

ACP STATES - AFRICA

ZAIRE 401,7 m1ll1on zaires

Hydro-electric power station (two 13,3 MW un1ts) on the RUZlZl Condit~onal loan to the Za~rian State to enable 1t to acqu1re a capital holding in S1nelac 1 s 60,9 million zaires 2,0

... I .. . - 68 -

Global loan to !inance investment in or rehabilitation of industr~al, agro-industrial, tourist and mining businesses Condit~onal loan to the Societe Financiere de Developpement - Sofide 336,4 m~llion zaires 12,0

Share of the increase in Sofide's cap~tal 4,4 million za~res 0,157

ETHIOPIA Overhaul of the Bahr Dar cotton mill north of Add~s Ababa Sahr- Dar Mill via the Ethiopian State (National Textile Corporation) 18,4 m~llion Eth~opian dollars 12,0

GHANA

257,0 m~llion cedis

Rehabllitation of the Tema refinery to the east of Accra Cond~t~onal loan to the Republic of Ghana for the Ghanalan Italian Petroleum Company Limited 196,6 milllon cedis 7,6

Restructuring of a regional cement complex in Togo Conditional loan to the Ghanaian State to ~art­ finance an increase in the capital of CIMAO~ Societe des Ciments de l'Afr~que de l'Ouest 50,3 milllon cedis 2,43

MADAGASCAR Global loan to the Bankin'ny Indostria to flnance the rehabilltation of small and medium-sized lndustr~al, agro-industr~al and mining projects Conditional loan to the Democratic Republic of Madagascar 3 843,5 million Malagasy francs 8,0

SOMALIA First phase of a programme to develop the Afgoy gas deposits near the capital Mogadiscio Conditional loan to the State of Somalla 98,8 milllon Somali shillings 7,0

BENIN Second phase of the development of the Seme ollfield off the coast of Benin Conditional loan to the People's :.=tepublic of Senln 1 544 million francs CFA 4,5

... / ... - 69 -

GUINEA BISSAU

Renovat1on of a shlP repa:r yard 1n B1ssau Condit1onal loan to the Republ1c of' Gu.1nea-B1ssau to enable capltal to be provided for the f1nar.cJ..ng of the Guinave sh1py:-.:-.. 307,9 mill1on pesos 3,8

MALAW"!: Increase 1n :he capJ..tal of tne Dwanga Sugar Cor?n~atlon to ~nable proauctlon capac1ty to be

Cond1::onal ~oan :o the S~ate of Malaw1 from ~he .,;,.grJ..cul tural Ceve2.oprnen t and Harke t1ng Co rporat 1on and Press ~old1ngs L1m1ted 3,9 m1ll1on kwachas 3,5

TANZA.NI..4.

A1d for start1ng ~p the Morogoro canvas m1ll r:or.d1 t:.onal :can to the S ':ate of Tanzan1a for Tanzarua Leathec Assoc1ated Industr1es ~5,9 ~1111on Tanzan1an sh1ll1ngs 3,5

3URVNDI 283,2 "TIJ.l2.ton Burund1 francs Hycro-elec~c:~ power statJ.on ltwo 13,3 MW unJ.ts) on ::he :i'JZ 1 z 1 ~ond1t1onal loan :o the State of Burund1 :o ~nable :~ to requ1rs a Jhare of the cap1tal of S1nelac 133,2 m1llJ.on Burund1 francs 2,0 Cond1t1onal loan to the Republ1c of 8urund1; contr1but1on to the 1ncrease 1n the cap1tal of the Banque Nat1onale de Developpement Econom1que 85,0 m1ll1on Burund1 francs 0,937

TOGO Restructur1ng of a reg1onal cement complex 1n Togo Conditional loan to the State of Togo to part­ flnance an 1ncrease 1n the cap1tal of CIMAO - Soc1ete des C1ments de l'Afrique de l'Ouest '338,8 ~1ll1on francs CFA 2,43

RWANDA

Hydro-el~ctrl~ power s~at1on (two 13,3 MW unlts) on the :tt..;::lzl Condlt:onal loan to the S~ate of Rwanda to enable 1r to acqu1re a share of the cap1~al of S1nelac 165,9 m1ll1or. ?:wanda ::rancs 2,0

... I ... - 70 -

LIBERIA Global loan ~o f1nance studies and the acqu1S1t1on of SGcr0 nolc~ngs C.:md~. r::1onal loan to the L1berian Bank for Ge·,.~ ~npmen t and :nves tmen t 1,3 m~ll1on dollars 1,5

S~udy ~8r rhe 1nstallat1on of a palm 011 rn1ll Co"1d.:.'Cl)<1al .:.oan to the Government of Sao '!'orne and ?c-ulclpe l ,J m1ll1on doora 0,04

Global loan to flnance studies in the industr1al, rn.1n1ng, tour1sm and energy sectors Conc:n t:l.Jnal loan to the Banque de Developpement des Ztats de l'Afrique Centrale- BDEAC 110,8 m1ll1on francs CFA 0,5

:::;;:· VJ:NCENT 2un of r1ver hydro-electrlc power stat1ons w1th a total output of 3,37 MW on three separate s1tes LG rhe Cumberl~"1d area and connecting l1ne to CondltLor.al loan to the State of St V1ncent and ~h~ Gr~nad1nes for St V1ncent Electrlclty .:;

SAl~T LUCIA

~on~1t1onal loans to - the SLDB - St Luc1a Development Bank for the f1n~~c1ng of 1ndustrial, agro-indust~1al and -ourJ.st proJects through small and medJ..um­ ~~led bus1nesses :. , :t. rnJ. J.lJ.on East~rn Car1bbean dollars 0,60 ·· tf'.e S ta <:e of Sa1n t Luc 1a to enable 1 t to finance ~; Lncrease 1n the cap1tal of the SLDB 'J. S Eas<:ern Car1bbean dollars 0,40

... I ... - 71 -

ACP STATES - PACIFIC

TONGA Global loan to finance the acquisition of holdings in and se~ondary loans to small and medium-sized industrial, agro-industrial, transport and tourist businesses Conditional loan to the Tonga Development Bank-TDB 0,6 million pa'anga 0,70 Conditional loan to the Kingdom of Tonga to enable lt to increase its share of the capital of the TDB 0,3 million pa'anga 0,30

OCT

Netherlands Ant~lles Cond~t~ona! loan ~o the Government of the island of Aruba to enable it to finance an increase in the capltal of the Banco Arubano di Desaroyo NV 1,2 mill1on Antillian guilders 0,80

... I ... - 72 -

7. LEAST-DEVELOPED, LANDLOCKED AND ISLAND ACP STATES

By its Decision of 30 July 1984 the Council of Ministers added Belize and Antigua and Barbuda to the list of least­ developed ACP States (with effect from 5 March and 30 July 1982 respectively) and Antigua and Barbuda to the list of island ACP States (with effect from 30 July 1982).

. .. I ... - 73 -

IV. THIRD ACP-EEC CONVENTION

A. Negotiations

1984 was marked by a cont1nuat1on of :he negotiatlons 1 between the parties ( ), which culm~nated on 8 December 198~ in the signing in Lome (Togo) of the third ACP-EEC Convention. During the year three Ministerial Conferences took place, on 9 and 10 February in Brussels, from 3 to 5 May in Suva (Fiji) and from 28 to 30 June in Luxembourg, 1n

addition to two restr1cted min~ster1al meec1ngs from 9 to 13 October and on 22 November in Brussels, each of these meetings requiring numerous preparatory meet1ngs of

either the Community or the ACP States or jo1n~ meet~ngs

within the Central Negotiating Group and the n~ne sector groups.

1. Ministerial Conference in Brussels on 9 and 10 February 198d

Th~s Ministerial Conference, the second s1nce the

negotiatlons began, held deta~led exchanges of v1ews, 1n two Minister1al Groups as well as in plenary sess1on, and arrived at a general v1ew of the problems to be dealt with at a later stage of che negot1at1ons. On certa1n

top1cs there was already a broad consensus, namely on ~he general objectives of co-operat1on, the prior1ty to be g1ven to rural development and the pursu1t of food self­ sufficiency and food secur1ty, the obJectlves of f1nanc1al and technical co-operation and :he strengthening of industrial, energy and m1n1ng co-operat1on.

1 ( ) These negotiations began in Luxembourg on 6 October 1983 (see 1983 annual report, pp. 89- 94).

. .. I ... - 74 -

2. Minlsterial Conference in Suva (Fiji) from 3 to 5 May 1984

The third Ministerial Negotiating Conference entrusted three ministerial groups w1th responslblllty for the var1ous sectoral aspects of the negotiatlons, while a presidential group was to deal Wlth political and institutlonal quest1ons and the general orientation of the discussions.

A broad consensus was reached on a ser1es of quest1ons, namely mal.ntenance of the 11 acquls", the polltical d1.mens1on and interpretat1on of the Convention, the lnformation and consultation mechanism, ACP students and nationals and the consequences of enlargement.

3. Min~sterlal Confere~ce 1n Luxembourg from 28 to 30 June

The fourth Min1ster1al Conference was organ1zed 1~ four m1nlster1al groups and a pres1dent1al group. It proved posslble to fl.nalize the texts of Artlcles to be included 1n the Covnent1on 1n several sectors, namely cultural and social co-operation, agricultural co-operat1.on, drought and desert1ficat1on control and m1ning and energy co-operat1on. The po1nts on which dlfferences sttll rema1ned were 1dent1f1ed 1n the other sectors, and the negotiators tn Brussels were

instructed to continue nego~ia~1ons with a view ~o arriving at conclusions with regard to the problems that were

still outs~andLng.

. .. I . .. - 75 -

4. Restricted ministerial meeting in Brussels from 9 to 13 October 1984

This restricted Minister1al Conference was able to establish

many of the chapters of the new Convention and made cons~derable progress on a number of other points (e.g. investment, sea fisheries, shipping, co-operation between the ACP States and the Overseas Departments and Territories, aid to refugees), although it was still unable to conclude the negotiat1ons for the renewal of the Lome Convention. At the end of the meeting some items were still outstanding, notably in the follow1ng chapters: agricultural products available (joint d&claration), trade (rum, rice, beef and veal, rules of origin), Stabex (use of transfers), fisheries, financial and techn1cal co-operation (amount of financial aid and the question of the "dlalogue"), shipping. The important questions of the reference to human rights and the duration of the new Convention were also unresolved.

It was agreed that ~he negotiators would endeavour to settle the outstanding items at their level (ad referendum) and that the ACP and EEC presidencies and the Comm1ssioner, Mr Pisani, would take stock of the state of the negotiatlons 1n November to decide whether the conditions for formally closing the negotiations and signing the new Convention in Lome on the proposed date had been met.

;, Meeting of the Co-Presidents 1n Brussels on 22 Novembe~ 1984

At this meeting between the Pres1dent of the ACP Counc1l of Ministers, Mr R.L. NAMALIU (Papua New Guinea), the Pres1dent of the Co~cil of the European Communities, Mr P. BARRY (Ireland), and the Vice-President of the Commission with responsibility

... I ... - 76 -

for development, Mr PISANI, the remain~ng outstanding problems were settled, and in particular that of the volume of aid and the reference to human rights. The two parties accordingly agreed that the conditions for formally closing negotlations had been met and that the date of 8 December 1984 could be confirmed for the signing of the new Convention.

6. Sign1ng of the third ACP-EEC Convention in Lome on 8 December 1984

The third ACP-EEC Convention was signed on 8 December 1984

at an off~cial ceremony pres~ded over by General Gnassingbe EYADEMA, President of the Republic of Togo, at the Maison du Rassemblement Togola1s in Lome.

At the signing of the new Convention speeches were delivered by Mr Peter BARRY, President-in-Office of the Council of the European Communittes, Mr Rabbie NAMALIU, President of the ACP

Counc1l of Ministers, Mr Gaston THORN, President of ~he Commiss1on

of the European Communities and General Gnass~ngbe EYADEMA, President of the Republic of Togo.

The third ACP-EEC Convention was s1gned by the pleni9otentlar1es of 65 ACP States (the ACP States that were Contract1~g Par~ies to the second Conventlon and the People 1 s Republic of Mozambique),

the ten Member States of the Commun~ty and the Commun1ty itself .

. . . / ... - 77 -

8. MAIN CHARACTERISTICS OF THE NEW LOME CONVENTION

The new Lome Convention confirms the 11 acquis'' of the

previous Convent~ons. It reaffirms clearly ~he principles on which ACP-EEC co-operation 1s based, namely non-1nterference, mutual respect for the sovere1gnty of the partners, the equality of the partners and the right of each State to ctec1de on its own political orientation. and its own social, cultural and economic policies.

But the new Convention g~es a good deal further than simply maintaining the 11 acquis". The main 1nstruments of co-operation have been reviewed and 1mproved. The search for increased effect1veness was the constant preoccupat1on of the negotiators and this shared aspiration lS reflected in all aspects of the Convent1on, both 1n the obJeCtlves of co-operation, which are clearly set out at the very beginning of the Convention, and 1n the 1nstruments, all the mechanisms of which have been reviewed w1th the object of ensuring quicke~. more appropriate and more effect1ve implementation.

However, the new Convent1on does not merely improve

existing ~nstruments. !t extends co-operat1on to new

sectors wh~h were e1th&r absent from or dealt w1th only marginally in the previous Conventions and 1ntroduces many notable 1nnovations.

The Convention will have a budget of 8 500 MECU, an increase of nearly 60% compared with Lome !I, of wh1ch: - 7 400 MECU w1ll come from the EDF - J 1D 0 MEC'U w i r 1 e-o me ftcrtrl "t n-e- E: I 8 ' s a w n r e s o u r c e s •

A breakdown by 1nstrument lS given in Annex v.

. .. I ... - 78 -

1. Improvement of exist~ng mechanisms

Among the ma~n improvements made by the new Convention to

ex~st~ng mechan~sms, particular mention should be made of those

concern~ng f~nancial and technical co-operation, Stabex, Sysmin,

trade, industrial co-operation, the development of min~ng and

energy potential, regional co-op3ratlon, prov~sions concerning the least-developed, landlocked and island ACP States and the

tnst~tutions.

The most strik~ng improvement 1n this fiald relates to the programming procedure, which, after long and difficult

negot~ations, has been better organized wtth a view to making programming more effective.

The new procedure is based on a genu~ne d~scussion, wh~ch

will take place at the earliest opportun~ty agreed between the

Community and the ACP State, aimed at enabl~ng the Commun~ty to get to know the ACP State's development obJectives and

pr1orities and at allow1ng both part~es to 1dent1fy, on the

bas~s of a proposal from that State, the sector or sectors tn

which Commun~ty support w1ll be given and the best means of

ach~ev1ng the desired obJectives.

The improvement in programming 1s all the more necessary in that Lome III has extended the scope of financtal and

technical co-operation, which is no longer l~mited to investment projects but provides ample room for the

rehabilitation and ma~ntenance of projects and sectoral development programmes a1med al contr1but1ng to opt1mum

producttvity in the production sectors and to the sat~sfaction of people's basic needs, and makes finance avatlable for raw materials, spares, fertilizers, tnsecttctdes etc.

. .. I . .. - 79 -

As regards accelerating procedures, the new Convention lays down for the first time a time-limit within which the Community must take a financing decision (except in exceptional circumstances, within four months of the financing proposal being forwarded to the ACP State concerned).

Other important improvements concern:

- extension of the rnicroproject procedure to medium-sized projects.,

- the qual~ty and implementation of technical co-operat~on, particularly the replacement of the mutual agreement system by a limited call for tenders,

- broadening of the emergency aid system in two d~rections: on

the one hand, the extension of emergency a~d to certa~n

structural projects; o~ the other hand, the creation of a new type of aid aimed specifically at lntegrating or re1ntegrat1ng refugees or returnees. A special appropriat1on

of 290 MECU has been set as~de, of which 210 MECU is for emergency a1d and 80 MECU for aid to refugees and returnees .

. . . I ... - 80 -

(b) STABEX

The alterations made to the system are ~eflected fi~st and

foremost ~n a number of relaxations enabling risk coverage to be extended.

Thus ~~£~~-~~~-E£~9~S~~ have been added (dried bananas, mangoes, shea-nut oil), the ~~E~~9~~£~-~S-!1~£~~!~~~~ ~~£~~~~19~ being s~multaneously reduced from 6,5% to 6% in general and from 2% to 1,5% ln ~he case of the least-developed,

landlocked and island countr~es; speclal rules have, moreover, been laid down for calculating the dependence threshold ln

cases where, as a result of a d~saster, the normal threshold has not been reached.

From the f!~~~!-~~~~E~~~!· apart from the increase in the appropriation from 550 MECU to 925 MECU, the improvements

relate on the one han~ to the augmentat1on of the annual

instalments by the interest earned by investment in the marke~ of all or part of these lnstalments, and on the other hand to a 2% increase ln lndlVldual transfer bases, for errors and omlssions (l% under Lome II).

In thls same sphere of indivldual transfers, ~EE!2!~£

£~1~~ to enable applicant ACP States to beneflt from ass1stance under the system as rapidly as possible· have been lntroduced; these involve the communlcation by the ACP States

of monthly statistlcs - wh~ch enables the admlnlstrators to keep a close watch on the trend of the products in question -

and a timetable for the varlous stages of the exarninat~on of requests, namely the cross-checking of statistics, any consultations required and dec1s1ons on transfers.

. .. / ... - 81 -

Although the principle of the ~~E!~~~~~~~~~-~!_£~~~~££~~ (which, in the form of a Revolving Fund, is considered one of the corner-stones of the system) has been retained 1n Lome III, 1ts impact has nevertheless been softened by stipulating not only that funds lent under the system may be deducted from subsequent

transfers or reimbursed in loca~ ~urrency, but also that the replenishment obligation disappears if the conditions govern1ng replenishment have not been met during the seven-year per1od follow1ng the granting of a transfer.

In order to link the financial assistance provided under the system more closely to its objectives, namely support for the sector in question or economic and social diverslfication, ACP States which have applied for transfers are obliged to communicate to the Comrn1ssion, before transfer agreements are signed, ~~~~~~!~~!_!~!~!~~!~~~ on the causes of the loss of earn1ngs and the programmes and act1ons to which the transfers are being allocated. Such 1nformation gives the admin1strators of the syste~ an inltial opportunity to check whether util1zat1on of the resources is 1n accordance w1th the obJeCtlves pursued.

Moreover, dur1ng any subsequent account1ng per1od, the Comm1ssion may suspend the allocatlon of new transfers 1f 1t considers the reports forwarded to 1t by recip1ent ACP States on the util1zation of previous transfers are lnadequate.

As under the previous Conventions, appl1cat1ons for transfers may prove inadmissible or be reduced; the new Convention states that a good-offices procedure may be initiated 1n the event of disagreement in this regard. Furthermore, it expl1c1tly endorses a practice followed in the past, which aims at preventing the amount of compensation under Stabex from be1ng greater than the losses suffered by exports to all destinations.

. .. I ... - 82 -

Stricter rules than those in the previous Convent~ons have Llso been 1ntroduced with regara to the steps to be taken 1n \' :he event of £~~£~££~~-~~!~i-!~!~~9~~!~: advance use of the .'ollowing 1nstalment - limited to 25% - has been made compulsory md precise measures are laid down regard1ng poss1ble reductlons

.n transfers; provision ~s made in thls connection for precise

·eduction factors and a restrict~on on reductions which varies lccordlng to whether least-developed and landlocked countries lre 1nvo1ved or not. Where, after reduct1ons nave been made Ln accordance with these rules, financ1al resources are st1ll Lnadequate, the situation is put before the Council of Ministers, 11hich will examine the steps to be_ taken Wl thln the terms of the Convention.

Finally, as regards the calculat1on of transfers, the new :onventlon expllcitly settles the problem of the convers1on Lnto ECU of export earn1ngs expressed 1n national currency. rhere lS a special mechan~sm for correct1ng the ef~ects of the

~ppllcation of this method 1n ~he event of excess1ve fluctuat1ons 1n rates of exchange.

. .. / ... - 83 -

(c) ------SYSM!N Sxactly as in the case of the STABEX system, the bas1c structure of the chapter on the special f1nanc1ng facllity for m1n1ng products - wh1ch, in the new Convent1on, is 1ncorporated in the Title on co-operation in the sphere of commodities - has been ma1ntained, in particular as a result of the fact that experience

ga~ned with a relatively small number of cases where aid was g1ven under the Second Convention has not revealed the need for substant1al changes in' the methods used in adrnin1ster1ng the facility.

In order to improve the ef~ect1veness of the system, however, provision is made for the Community to take spec1fic steps to ~2~~3-~E-~!~-~~3~£-~~~-~y~~~~ and, where appropriate, to ensure that the latter is co-ordinated w1th the other means of assistance ava1lable under the Convention in the m1n1ng sector. Such ald will also have to take account of economic interests and social impl1cat1ons in the ACP States concerned and 1n the Community.

As regards the objectives of the system, greater emphas1s is now placed on £~~~2£~~!2~_2!-~~~-~~~~~!!~Y of the m1n1ng sector 1n the ACP States concerned, prior1ty be1ng g1ven to financial assistance to rehabilitatlon, ma1ntenance and rational1zation programmes. Spec1al attention will be pa1d to

integrating them properly into the overall development proces~ of the countr1es in question.

. .. / ... - 84 -

The ~easons which might p~OV4de grounds for use of the system now also include technological changes affecting the profitability of production. Insofar as Sysm~n interventions fail to ra~se product1on and export capacity in difficulty to an economic level, 3~~~£~!!!£~~!~~-~~!~~£~~· such as will best ach1eve the objectives of the system, will be sought.

While the new Convention retains the list of p~oducts covered by the system, 1t nevertheless increases the ooss1bil1ties of access to -~------~------tts financial resources, wh1ch as in the case of Lome II are repayable on the same footing as special loans. Since the rules of eliglbtll~Y tnvolvtng a dependence threshold of 15% of prevtous export earn1ngs have in fact been kept for products specifically covered by the system (the reference period, however, being reduced from 4 to 2 years), new provistons allow access to the spectal financing facillty, on a case­ by-case bas4s, for countries wh~ch, in the case of those .products, . do no~ achieve the threshold concerned, but whlch ~s a general rule obta~n ~2~-~E-~~E~-~f_E~~!E_~~E~EE-~!E~!~~~-f£~~-~~~~£-~~~~~&-R£~~~~~ ~~-!-~~~!~· with the excep.t1on of prec1ous m~nerals, 011 and gas. In the ftrst case, assistance to a given country 1s l1m1ted to 35% and tn the second to 15% of an annual 1nstalment, ~rtortties be1ng ftxed 1n the case of the latter countrtes for the allocatton of approprtattons (malntenance of major aevelopment proJects and projects l1kely to replace the capactty affected as a source of export earnings).

The aggregate amount specified for the SYSMIN system has been raised to 415 million ECU from 280 m1ll1on ECU under Lome II .

. . . I ... - 85 -

In Lome III, general trade arrangements, one of the basic aspects of the Convention, are closely modelled on the system adopted under the second Lome Convention, whereby AC? product"s are imported duty-free into the Community, with the proviso that agricultural products:

- are either imported duty-free when Community rules do not provide for the application of any other measure when ~hey are imported;

- or are ensured more favourable treatment by the Community than that granted to third countries benefiting from the mos~-favoured-nation clause.

rn this respect, the new text (Article 130) extends and improves the procedur~s for handl~ng requests from the AC? States for preferential access for their agricultural products. This provision lays down a prec~se period for reply (6 months). Moreover, with regard to requests for more favourable tarl.ff treatment, the Community will take account of the concess~ons granted to developing third countries for the same product and of the possibilities offered by off-season markets.

. .. I . .. - 86 -

The new Convention retains the Lome II provisions in which the Community reserved the right to take or authorlze a Member State to take safeguard measures should application of the Conventlon result in serious disruption of an economic sector or jeopardize the external financial stability of the Community or a Member State. The same is the case i£ difficulties arise which are likely to have similar repercussions 1n the Community or tn one of its regions. Provtsion is made for consultations, but they could not stand in the

~~ay of any immediate decisions which mtght be taken tf spectal circumstances made them necessary.

A joint declaration concerning the procedures for implementation of the systems of consultation prior to safeguard measures, setting out the text of a declaratlon adopted by the ACP-EEC Council of Ministers in May 1983, is appended to the new Convent1on.

As regards trade arrangements for specific products the Lome II "acquis" has been maintained as far as the arrangements for beef and veal and bananas are concerned and improved Wlth regard to rum and rice.

I •• I .. I - 87 -

The text of Protocol No l (origin) considerably simplifies the present system of rules of origin by introduc~ng, for exampi~. a general rule ~ermitting a propor~ion of 5% of non-or1g1nating components. In addition, it abolishes in the case of a number of products a binding rule that 50% of the value of products, parts or components used in the.manufacture of a product must be originating.

This text also improves the sytem of derogation's by granting longer derogation periods and introduces a provision to the effect tha~ derogation will be granted where the value added to the non-originating products used in an ACP State is at least 60% of the value of the finished product, provided that the derogation is not such as to cause serious damage to an economic sector of the Commun1ty or of one or more of its Member States.

Furthermore, the Convention takes better account o! the ACP States 1 requirements with regard to rules of or1g1n 1n the context of fisheries.

In the field of the development of trade and servic~. the new Convention extends the objectives of sales 9romot1on to co-operat1on operations designed to 1ncrease self-reliance ~n the development of trade; it attache~ new 1mportance to the superv1s1on and control of tour1sm by the ACP States and extends the f1eld of operations to services.

I • • • I • • • - 88 -

The Title devoted to this field puts greater stress on operations aimed at the rehab~l~tat~on of exist1ng 1ndustr1a1 capacity, on the appropriate train~ng of personnel and, as before, on small and medium-sized bus1nesses.

The aims of the Centre for the Development of Industry (CDI) have been more clearly def1ned. A Govern~ng Board has been set up within the Centre w1th responsibility for sett1ng guidelines, taking major management decis1ons and adopting the Centre 1 S budget within the framework of the general guidel~nes la~d down by the ACP-EEC Committee on Industr1a1 Co-operation, which w111,

~nter alia, determine the mu1tiannua1 breakdown of the aggregate amount set aside for the CDI for the per1od of validlty of the new Convention. This amount has been increased from 25 to 40 MECU.

'The provisions concerning th~s area have been cons1derably ex~anded. In particular, the definltion of the object1ves of co-operation has been improved.

In energy co-operation, particular emphas~s w111 be placed on energy programming, operations for sav1ng and rnak1ng efficient use of energy and the promot1on of new and renewable sources of energy.

. .. I . .. - 89 -

As ~egards the minlng sector, the Parties ~ecognize the1r

mutual dependence in this area. The alm of ope~ations w1ll be

to ensure a satisfacto~y ~eturn from m1ning ope~ations fo~ the

ove~all development of the States conce~ned.

The new Convention intensifies ~eg~onal co-operat1on, and aims at making this type of operation more effective.

The scope is extended to include operations agreed upon by ACP States and non-neighbouring developing countries. The

determination of criteria for the definltion of a ~eg~onal proJect may lead to greater effectiveness in the use of

~egional funds.

(h) Provisions for the least-develooed, landlocked and 1sland ACP States ------~------~------

The new Convention, wnich includes special t~eatmen~ for

the least-developed ACP States and provision for g~ving consideration to the specific dlfflculties of the landlocked and 1sland ACF States among tne aims of co-operat1on, has

~ade certain improvements to the Lome II sys~em.

. .. / ... - 90 -

In the interests of greater clar1ty of presentat~on, the general provis1ons concerning these countr1es have been

grouped together under a separate ~itle d~v1ded 1nto three

chapters (o~e foreach of the three categor1es) wh1ch, 1n addltion to the list of countr1es 1n quest1on, conta1n precise details by subject matter of the spec1fic prov1s1ons included in the var1ous titles and chapters-of the Convent1on.

As to substance, the new prov1sions e1ther relate to new areas, extend the Lome II arrangements for the least developed countries to the other two categories of less-favoured

countries or embody addit~onal advantages for the least developed countries (e.g. Stabex, 1nterest rates for special loans).

The funct1ons of the ACP-EEC Counc1l of M1n1sters are more clearly defined 1n the new Convent1on. Its role 1n

defin1ng the major gu~delines for act~v1t1es and the general pol1cy of co-operation has been strengthened.

In order to avo1d dupl~cat1on of the worK of the

parl1amentary 1nstitut1ons, the Consultat~ve Assembly and the Jo1nt Committee prov1ded for in Lome II have been combined 1nto a new parliamentary body called the Joint Assembly, composed of equal numbers of, on the one hand, members of the European ?ar11ament on the Commun1ty s1de and, on the other, members of parliament or, falling th1s, of representat1ves designated by the ACP States.

. .. / .. - 91 -

W1th the aim of contributing to the financing o£ expend1ture 1ncurred by ACP participants in meetings arranged by the Jo1nt Assembly, excluding its general sessions, a fund has been set up to wh1ch the ACP States will make their contribut1on and the Community will contribute an amount not exceeding one mlll1on ECU during the life of the Convention (Annex XXXI to the Final Act}.

The new Convent1on also makes provislon ~or ~ore active

participation by the econom~c and soc1al 1nterests 10 .1ts· implementation.

!~~-~2~!~!E!E!2~-~~£~~!!~! have been conslderably strengthened by extending them in particular to cases where differences of interpretation of the texts arise in the implementation of the Convention. In such cases the Contract1ng Parties will make every effort to arrive at a common interpretation through a joint examination within the ACP-EEC institutions.

With a view to speeding up the ~~~E!~~~~E-~!-~!~E~!~~ the new Convention lays down provisions for speedlng up the arbitration procedure by reducing the t1me allowed both for the appointment of arb1trators and for them to take a decis1on .

. . . I ... - 92 -

2. Extension of co-operat1on and innovat1ons

(a) ------The obJectives of co-operation In contrast to the previous Conventlons, Lome III 1ncludes

an introductory sect1on whlch const1tutes a k~nd of framework for the texts as a whole. This sect1on sets out clearly the

object1ves of co-operation, the essent1al princ1~les gove~n1ng

the various instruments and the basic concepts of ~he opera~1on of the ACP-EEC 1nstitut1ons. The new Convent1on thus has a more coherent structure and lS eas1er to read.

The new Convention contains for the flrst t1me a reference to human r1ghts. In the preamble reference is made

to ~he United Nations Charter and to fundamental ~uman r1ghts. The notion of human dignity 1s mentioned 1n the general provisions of the Co'nvention and def1ned 1n.a JOlnt declaration.

These references to human rights 1n the new Convent1on are an expression of the increased pol1t1cal sol1dar1ty between the Commun1ty and the ACP States.

The Title concerning th1s type of co-operat1on has been the subJect of discuss1ons aimed at redef1ning and ref1n1ng it, with the result that the new Convent1on attaches spec1al importance to food security and self-suff1ciency in the ACP States. It thus provides support for food pol1C1es and

strateg1es, stresses the need for cons1ste~cy between food aid and other co-operation operations and the need to integrate

food aid into the de~elopment policies of the ACP St~tes. Finally, prov1sion is Made for the poss1b1!1ty of replac1ng fooa a1d by alternat1ve operat1ons.

. .. I ... - 93 -

With regard to the supply of agricultural products avairable in the CommunLty to the ACP States, the new Convention provides for the possibility of fixing export refunds further 1n advance for all ACP States in respect of a range of products determined 1n the llght of the food requirem@nts expressed by those States. Moreover, specific agreements may be concluded with those ACP States which so request in the context of their food security pollcies.

The new Convent1on provides for the possibilltY of undertak1ng camca1gns with specif1c themes a1med at maintaining or restoring the great natural balances. This paves the way for very long-term operations requirlng a regional approach, lncluding drought and desertlfication control, measures to remedy the consequences of natural d1sasters by setting up prevent1on and 1ntervention mechan1sms, measures to combat major endemic diseases and human epidemics, large-scale operations to promote hyg1ene and bas1c health and research 1nto new and renewable sources of energ1es.

The chapter on agricultural commodit1es, a new chapter, notes the extreme dependence of the majority of ACP States on their exports of such products and recognizes the need to re1nforce and intensify co-operation in th1s sector; it establishes 1r. this connect1on an Agricultural Commod1t1es Committee, the funct1ons of which will be to monitor the applicat1on of the Convention 1n this sector and to exam1ne related problems.

I •• I .... - 94 -

(d) Fisheries

The new title on the development of fisheries involves

a major extens~on of co-operation in this sphere.

The new Convention

- gives prominence to Community assist~ce in ~mproving the

management of the fishery resources of the~r exclusive economic zones by the ACP States;

- stresses the need to promote conservation and the optimum use of living resources;

- recognizes the role of the Community fishing fleets operating lawfully in ACP waters;

- affirms the ACP States' wlllingness to negotiate w1th the Community mutually satisfactory fisheries agreements based on the princ1ple of non-d1scr1mlnation;

- f1xes the guidelines wh1ch are to govern the compensat1on to be granted by the Community 1n exchange for fishing r1ghts conceded to 1ts fleets.

. .. / ... - 95 -

The new Convention groups together for the f1rst t1me

the provis~ons relat~ng to transport and commun~cat~ons, thus

recogn~z~ng the essentlal role of these sectors 1n the

development of the ACP Sta~~s.

Spec1al 1mportance 1s given to sh1pp1ng, wh1ch 1s v1tal to aconom1c development and the promot1on of trade between the ACP States and the Commun1ty.

The object1ve of co-operation 1n th1s sector is to ensure the harmon1ous development of eff1c1ent and rel1able sh1pp1ng serv1ces on econom1cally sat1sfactory tarms by facil1tating the active participat1on of all parties in

accordance w1th the pr1nciple of unrestric~ed access to the trade on a commercial basis.

Moreover. both part1es stress the par~1cular 1~portance of the Code of Conduct for Liner Conferences; the Commun1ty also acknowledges the asp1rations of the ACP States for greater part1c1pat1on in 1nternat1onal bulk cargo sh1pping serv1ces and the two Part1as agree that compet1tive access to the trade must not be 1mpa1red.

Provision has been made for a consultat1on mechan1sm to ensure the effect1ve 1mplementat1on of the prov1s1ons agreed on.

. .. I ... - 96 -

The new Tl.tle on cultural and soc1al co-oper-atl.on reflects an important change 1n ACP-EEC r-elat1ons ln the dl.rection of a more self-reliant development of the ACP States, a process centred on man himself and r-ooted in each people's culture.

Cc-operatJ.on •r~ill back up the ACP States' pol1.c1es and

measures to enhance their- human ~esources, increase the1r

own creat1ve c~pacities and promote the1r cultural 1dentities through 1ntegrated and coord1nated programmes, through operat1ons cover1ng educat1on and trainlng, research, science and technology, Informat1on and communicat1ons, participation of the population, the role of women and health. Furthermore, c r I t e r I a have been de fIned to ensure that mo r e account Is t·a ken of the cultural and social dimension In proJects and programmes In the various sectors of co-operation at the design, appraisal,

execut1on and ev~luation stages.

Particular attention 1s pal.d to efforts to enhance che wor!< of women, improve the1r l1v1ng condi t1ons, expand the1r role and promote their status 1n the product1on and development process.

A jo1nt declaration on AC? ~1grsnt workers and ACP students 1n the Commun~~Y annexed to the F1nal Act of the Convent1on aims at 1mprov1ng the pos1t1on of both groups; it ~111 enable questions r'elat1ng to ~lther of them to be brought to the attention of the ACP-EEC Counc1l of M1n1sters. - 97 -

(g) Investment

Whereas_ the 1979 Convent~on did not conta~n any deta~led

provis1ons on this matter, a new t~tle ~n the Convention includes:

- recognition by both parti~s of the importance of private investment and the commitment to promote 1t;

- a JOint commitmen~ to accord fair and equ1table treatment to 1nvestors and encourage or create clear and stable

conditions conduc~ve to such investment;

- a JOint comm1tment to ma1nta1n a pred1ctable and secure investment climate;

- an expression of readiness to negot1ate agreements between States;

- aff1rmat~on, when negotiating, 1mplement1ng and 1nterpret1ng

such agreements, of the pr1nc1ple of non-d~scrlrn1nat1oh,

th~s principle be1ng defined 1n a JOint declarat1on.

It also prov1des for an undertak~ng by the part1es to:

- study a JOint ACP-EEC insurance and guarantee system;

- study measures wh1ch will fac1l1tate an increased and more stable flow of private cap1tal to the ACP States and wh1ch w1ll further enhance access by 1nterested ACP States to inter­ natlonal f1nanc1al markets as well as the activ1ty and effect1veness of domest1c f1nancial markets;

- seek technical and f1nanc1al means to fac1l1tate exports from ACP States and assist nat1onal and regional f1nanc1ng 1nst1tut1ons.

. .. I ... - 98 -

VI. CONCLUSIONS

The year under rev~ew const~tutes a h1stor~cal m~lestone

in ACP-EEC relat~ons. It has been posslble to make

considerable progress in the implementat~on of the second Lome

Convention and to consolidate the managemen~ of that Convention.

The s~gning of the th1rd Lome Convent1on on 9 Decembe~ 1984 was a very 1mportant event of that year. The new Convent1on

·is above all a work of sol1dar~ty which aims at improving llving standards 1n the ACP States. It 1s based on the

pr~nclples of lnterdependence, mutual interest, respect for each other's sovere1gnty, equal1ty between partners and the r1ght of each State to determine 1ts own pol1t1cal opt1ons.

Lome III confums the pnnc1ple of the "acqu1s" of the prev1ous

Convent1ons. This is 1mportant 1n a part1cularly d~ff1cult 1nternat1onal context which lS characterized by a cons1derable loss of momentum in the North-South dialogue.

But the new Convention, while not be1ng able to advance co-operat1on 1n certa1n areas, does go beyono the conf1rmat1on of the "acqu1s" 1n qu1te a number of other sectors. It does offer a range of new spheres of co-operat1on and opens up certa1n new perspect1ves.

The first phase is over. Future efforts mus~ be concentrated on swift and effect1ve implementat1on of the new

prov1sions to achieve the new Conven~1on's main objective,

namely improvement of the l~v~ng standards of the ACP peoples through effective co-operation.

. .. I ... - 99 -

rt::SOWTIO:-f OF r:iZ AC?-~ CQU;lCIL OF ~!~G:S':3RS of 2 May 1984

on f1nanc1al ~~d ~ecnr~cal co-operat1on

Eav1ng ~e;ard to tee second ~C?-~C Conven~~qn, Sl~ed at Loce on 31 Oc~ober 1979 (!:.erelna!'ter re:'e:-red to as the "ConYea.t:_or.'!-1, ~~d ln par~lcular Artlcle 108 {6) ~~d -~lela 119 thereof,.

~~vi~g re;ard ~o the ~aport and the Draft aesolutlon s~O:ltted oy ~na A:ticle 108 Co7:Jt~ee,

:onsc1ous of the necesslty of puttlng 1nto practlce the se~ of :'esol~:1or.s on fi~~cial ar.d tachn1cal co-operat1o~ adopted by t~e AC?-EZC Co~~Cll o: ~in~sters at Libre~.lle on 14 ~Y 1982 and at 3russels on 20 ~y 1983,

~R£'3Y AJO?:'S l'H2: ?0 .i:.!.Q','t':?f ~ E:SO LUT!ON

... / ... - l 00 -

! . PRINCIPLES

1 • Co!1na..'"lcl.~

Coun~1l, be1ng 1r~o~ed of ~he encou:ag~n~ ~sul~s whl.ch :r..ave been obta1ned r-egard1.ng cof1nar:c!.nc of .:or.:::n.:rn -:·· f~'"ld5 w1.th funds ~xternal to the ~or.~~'"llty, ~ecocmenus ;.~~ pursu1t and enlar-gement of these efforts 1n re~ew1ng 1ts preference for JOlnt :ina~c1ngs, w~ch S1~pl1!y t~e a~~nl.s­ tr~~l.on of a1d, w1.thou~ excluding parallel f1na..~c:ngs wnen these are the only possl.Olllty.

It ~commends accord1ngly the folloWl.ng ~easures :

a) ratlonalisation and harmonisation of the procedures of donors (works contracts, cho1ce of currenc1es, competitl.on procedures, guaran~ees, preference ~r~s :or AC? enterpr~ses) ar.d ensu~ng ~reater fla~b~~ty 1~ the ~~les of these procedures, w1.:h the purpose of allev1.at1ng the admin,strat:ve jurden on rec1.p1~n: countrtes ;

b) at tl'le request of t.he recipient ACP State, a com:nlo:tent 't>y the Com:nun1ty;:o

~rovide to donors who so request, chrougn the Comm1ss1on Delegate 1n ~,e fi~l~. technical and administrat1ve support allow1ng better coordination of, as •.;ell as better mon~ eorJ.ng of the. ~roj.ec.t.s.' ~.le.m.e.o. :a t~on

c) a larger role for the Go~ssion ~'"ld the ZUropean !nvest~:n~ 3ank as ca-calJ·st oy cneans of technJ.ques wr..J.-:~. hke those used by the World a~~ and the reg1onal developcent car~s, permit the assoc1a~l.on L~ cofinanc~~ of pr~vate sector f~~ds in order to a~tract them to the AC? countr~es on a significant scale.

. .. I ... ( .a..NNEX I ) - 101 - 2. M~c~o-projects

Counc~l, nav~ taken nota of the lmprovements made by the :o~ssion, ~ appl~catJ.on of Article 114(1) of the Conv~ntJ.on, to the lOplementation of ~era-projects, multi­ annual train~r.g progra::es and sets of tec~~cal co-operat1on '.J.."lt.i ~:·a.de !Jr~mo~lon actlons, by ;noJnng fln:ll1Cl. .'1.5 deciJ:.ous fo~ global ~~ounes, ~hlch pe~ltS, then, the dacentral~sa~lon of decislons on tne lnd~VJ.dual actions, recoQmends tha pursu1~ l~ the sace spi~it of app~cation of paragraph 2 o: Ar"acle t 14.

It ~~co~ands accori~~gly to introduce accelara~ed procedur9s for. fl~~Clng sets of proJects and pro;r~~s of actlons, of which the ~~ture and structure· lS sufflcier.tly defJ.ned at the n.ooent that the global financJ.ng decJ.Sl.On- - lS taken, to allow the declsion on individual actions of a l~wJ.:ad s1ze (for exacple, wells, nurse~es, mata~ty ciinJ.cs, d1spensar2as, schools, etc.• ) and their location to be taken on the most decentralised levels.

fn any case, Art1cle 122 (5) of the Convent1on 1s also appllcab!e to the 1mplementat1on of thls rl:ind of prOJects up to the llmlt of 3,S MECU.

3. ~e;;~onal Co-o'Oera.tlon

Counc;l, 1n nrrle~ to imo~ove ~eg1onal co-ope~atlon,

because ~t reflects ~he sol~da~~Y of ~he A~P Sta:es as well as the-economic co-operation and development w1t~n ~~d between the re~ons of those States, recommends that :he g=eatest efforts oe made to ensure :

... I .. . ( Al'J'NEX I) - 102 -

a} a p~ecise definicion of the content of ~egional p~ojects in

o~de~ to expedite their submission and their implementation;

b) a greater precis1on in t~e er1tar1a w~ch define ~he regional character of a proJeCt ;

c) pe~odic evalua~ion of the impact of the proJ~cts prev'lously fL"la.nced by tb.e reg1.ona.l fu.Ild

d) ~fleed.lnC1 u, :lnc4 ;:;tMplrfyJ.ng J.Molanentatton of re~1onal co­ operatlon, on the basis of detA.lled exaMJ.nat1on of dlffl­

cultles anc delays 1n prenarAtJ.on and execu~1on

e) acceleration of =eg1onal co-operation by an 1ncrease of complementary support by the Commun1ty for reg1onal oroan1sat1ons.

4. ?rog~e A~d and Ma1nten~"lce

Cc~~c1l, ~e1ng lnformed of the orianta~'lons adop~ed by the Counc1~ of ~~e SUropean Co~~1es on 3rd December 1982 better to define the obJectives, types, ger.eral characte~ ~~d implementation for maintenance aid, cons1ders ~hat t~ese or1cntat1ons are partl<'!ll.y 1n ltnc unth the orovlslons of the L 1brevJ!le a.nd Brussels Resolu!:ions lA. that regard .. It notes tha't they constitue a step in the r1gh~ direction and manda1:es 'the Art~cle ,08 Co~ttee to kaep the s1tuation under rev1ew s1nce ma1ntenance a1d 1s only a part of programme a 1 d.

. .. I ... (ANNEX I) - 103 - !I. P~OC!:.DURES

Co~~cil, havir.g taken accoun~ of tbe results oota~~ed oy :he :o~~ss1or., 1~ 1 9o2 ~~d 198J, i~ la~~cr~~g calls :or :enc9~S :or execut10~ of proJe~ts before the ~ak~~g of fl:-.. a..~clng decl.Sl.or..s, notes. tr..a.t tkus pract1ce has ';he douole a~van~age o:, on the or..e na..~d acceleratl~g the executlon, ~~d on t~e other hand obtaining a bette~ knowledgs of costs a:.d so a reduct1on Ln the ~~sk of ove~~s. I: recoc=ends therefore to m~e grea~er use o: ~~s procedurs.

Coun:~l, t~ing account of the measures lntroduced by ~he Comc~SSl?n ln order to Sl.~p~fy adcinl.stratlve procedures concerning p~ent, in con:o~ty Wl.th the ~brev1lle 2esolut~on (increase ln the adv~ces at Sl~atu:e for supply contracts, d1rect pa}~ent to cont~actors ~~dar spec1al loans, a Sl.ngle ~ultl.copy ?ay:ent order :oro, ~~d reductl.on ln :he n.u:ber of co~trol vl.sas on. f1nanc1al operat1ons) apprecl.ates these Sl~p~:~­ catlons t~t pe~~t an acceleratl.on of proced~:es a..~d a decentral~sa~:vn of contr~ls to the delegat~ons ln ~~e fleld.

I~ rgco~~ends :hat tne general clauses and :on~tlons of contracts ~nclude the approprl.ate legal ~~d ~lnanc1al pro~s~ons to 9~sur~ ~ be~ter protection for users o~ suppll.es :1ruL~ced ~Y tne ~F against rl.sks of laten~ o~ patent defec~s du~ng or outs1de the gu~rantee per~od.

It notes !inally that the search for pract~cal ways of simpllfy~ng ~~d spee~~ up adm,nistratl.ve procedures should be con~i~ued, and proceedings:in th1s co~ect~on should never be regarded as fl.~shed.

...... I (ANNEX I.) - 104 -

1 • 1'\a••:r- ..• cu'...... '

Co~~c1l, hav~~g no~ed the effo.~s a;pl~eC. ~Y ~~ Coc:~ssion co!lce.:-:u.:-..g sam~ •.:? cou."ltries to set up and apply strateg~es hav~ the p~cse of ~ood sel!-su!:~c'lency !or these coun~~as, !or=ula~~s the !ollow1~g reco==~~da!~or.s ln orde~ to g'lva va:ue to

th~se exper'lences:

a) a com~1t~en~ to 1nc~ease substant1ally f1nanc1al

supoort and nore eff1c1ent use of 1t, ~1th1n tne

ava1!~ble 1nstru~ents ,

b) a nore coherent comb1nat1on of the ava1lable L"ls~=ucents, espec!allv as reqards food a1d and counterpart funds dec1v1nq rrom lt ;

c) a better co-ordinat:lon on the spot, by the recipient country,

of various exta~al aids in order to maximise ~~eLr mobil1sation;

~) steooed-uo investment 1n order to t~~P ~~u.,n~~~e o' 1~oroved 1ncent1ve for food product1on and to real1ze export potent1als ;

~) 1ncreased a1d and more eff1c1ent use of 1t, ~1th1n the ava!lable 1nstruments, to perMlt governments to lMprove the return on ex1st1ng fac!lltles and potent1als through increased ma1ntenance, agr1cultura1 1nputs and other

recurrent expend1tures, while at the s~e time stepping up inves~ent levels to lay the basis for sustained and higher growth.

... I ... (ANNEX I) - 105 -

f) a better management of food ud, and 1ts 1ntegrat1on w1tn well-formulated nat1onal food strateg1es, so as to allow 1t to play an 1mportant role 1n development programmes, wlthout neglect1ng 1ts 1nterest 1n emergency S1tuat1ons ;

g) a support from the Commun1ty 1n the form of techn1cal ass1stance for the preparat1on of food strateg1es

h) the importance of i=~~ve~ent in rural housing and pro~s~on of wate~ L~d electrlclty supplies, i~ orde~ to improve the quality of ll!e i::l. the country &..'""E!as ;

l) an encourage~ent for the cooperat1ve organisa~lon of the t'armers ;

J) conslderat1on of a system of crop lns~r~~ce aga1nst damage froc na~ural dlsastars.

Counc~l notes that ~he Communlty, hav1ng recelved·~he request by the ACP States rela~:~£ ~o avallable agrlcultural products, tas stated that lt w:ll !Xa~lr.e ltS dl!ferent Lmpllca~lor.s.

2. ~ergy

Counc1l, i~ line Wlth t~e pro~sions of l~S 3r~ssels Res•)lUtlon concenu.."'l.g Com:U!l.l.":y flnanclr.g of uventones of the energy needs and resou:ces of the AC? States, takes note Wlth intsrest of the ~e~s of reference w~ch ths Co~SSlOn uses in the studies which 1t conducts to make such inventories.

It no~es the fact that some funds have been alloca~ed t~ :1nance these inventorles not only under the ~. but also on the budget or the Cocmission. It ~dates the Art1Cle 108 Coom1ttee to continue to review the situation concernLng tr~s i~portL~t SUbJeCt.

. .. I ... (ANNEX I) - 106 -

Counc1l, ~onsc1o~s of the pr~nc~ple t~t tee developr-e~t of h~~~~ resources const1~ues the pre-requ~s1te of all econo~lc ~1d soc1al deve~cp~en~, r~~oc:ends :

a) :d~cat1on and tra~~1~5 : ~o con:ent~a:a :n~ Co==~~:y': e::orts to a~d t~e A:? S~ates to :ra~n :he~r =~powe~ 1~ all areas (~~gh ~~d m~ddle tec~~cal lavels, l~dustry, agrtcultur9, oarket1ng, d~str~~ut1on, =a1n:enance, explorat1~r. of natural resources, ~l~lng eva~~a:~on and ex:ract~on, tr~~spor: ~~i co==~~lca~lo~s. food prod~ct1on, e:c.) and, 1n ~eneral, =ake sure tna: the proJ:cts ~~d prog~~~es :1~~~ced ~Y :ne ~~ :ake due cons~de=at1on of tne soc1o- c'..llt·..:.ral env~:-on::l.ent of tn.e recl;aent cou.:;:r~es.

b) .'looen's :-ole ln·davelo~::len.t : to ansurs woUlen equal access -::o educat1on acd, espec1a:~y l!l ~ral areas, g~ve :~:::1 access 1 ·o"' '"h::>., -- W"des""w ...··acl .... 1 ..... --'-"S (a-rl"''•,-u-a.l6 ~....- ...... \,1 .. - .::..;.__~...,~ -·• ..,.... oc.'

l:lc.,..... s:~',

oa:-Ke~lng, cred1t :acll~tles, non-convan~lonal energy, wa~ar supply, sa..~~ tat1on fac~ll ":las, heal -:h ·:are, ed~,;ca.tlon and ~~a1~n6 ~rogra=:es, etc.).

c) ~ultural aspects o: developQent : to int:6~~~e :~e c~l~~ral factors 1~ dev~lopr-e~t ~~d co-opera.t~on pl~~s, w::h a v1:w :0 assur1ng ~~ authentlC davelopment, -::ak~~6 acco~~-:; of ~he soclo-cultu.-a1 9nv1ro~en~ of the AC? countr1gs.

. .. / ... (ANNEX I) - 107 -

4. Health and Soclal Serv~ces

Counc1l, consc1ous ~tat the provis1on at afforda~le pr1ces o: essen~1al ala~ent3 sue~ as drlnxlng water, heal~h ~~d ed~ca:1on const1tutes a v1tal co=po~ent c: the strategy a~a1~st pova~~y. recom:::lends :

(a.) a."'l 1nc::-ease 1n :o::.-:-.:..."li ty aJ.:i · 'Ul th1n all the a vall aole 1nstrw,ent:; se~k!ng t: sat1sfy ~he oas1c needs of populat.Lons, esp~c!ally 1n rural

areas, us1ng ~~c~~clog!PS t.:ot n1ll perrnlt tho ~xt3ns1on of the ~1str1- out1on of nealtn servlces and related facllltles at th~ lowest un.Lt cost

( :) )

costs, t~~~r.g acco~~t of ser1ous appra1sal of the needs ~~d w1tnout neglec~1ng lon~ te~ pl~~lng l1~~1ng the ~ealth

5. rranspor~ and Commun1cat1ons

econCQlC ~~d soc1al lnfrast::-ucture, cons1der~ng :~s one of the p::-e-condli::tor.s of davelopr..en-: of the AC? Si:atss, cons1.ie::-s ~na: tne strategy 1n ~hls sector scould ::-ela:e as ~uc~ to ::-oad transport as to po::-ts and ~=J.tl~e transpo::-~, ~o a1~,

~11, r~ve~ ~~d lacustr~ne \:~~sport, and to taleco~~~1cat1ons, postal serv~ces, ::-ac1o ~~d televis1on.

It reco~ends that the i=?lementa~lon of these l~frast~~cture~ take account o! :

(ANNEX I) ... / ... - 108 -

(a) the importar.. ca of :rdc·..4:rent costs

(b) the need for ~a~nte~~~ce

( c ; ~ ::-aining

(d) a be tta ::- coo :-d. ina tion o! the cor!lpet 1.ng !:lea.."lS of tra."ls port, puol~c and pr~vate

(e) the al~~nat1.on of non-tac~cal ba:r1.e::-s

(f) reg1.cnal co-opera~1.on and t~e chol.ce of corridors for l~~dlocked countr1.es ;

(g) access to communicatl.ons technologl.es.

5. 2'1.'1'!. ror..::~en t a."lC. Deve lo t:::::en:

Councl.l, consclous o~ :he l~por~a."lce of tne 1~c~us~on of enVl.ronoent aspec~s lll all developmen~ ac~l.Vl.~l.es, ::-ecomme~ds

(a) tr~t the Comounl.ty, a~ che request of the AC?, ~akes ~:o acco~~t T,hese aspec~s lll ~he prepars~l.on a."ld lmple~entawl.On of development proJects ;

(b) tha1ras a-pr1.or1.ty the Comm~ty, a~ :he reques~ of the AC?, affords 9l.g.nifl.Ca."l~ fi~anc1.al and tac~l.cal supper~ 1n the st::"Uggle aga1.ns1: the drou.e;."l"'; wnicb. has strJ.ck wh.e countr1.es suffering from desertl.fl.catl.on, and ~n partl.cular supper~

for reg1onal desert1f~cat1on control schemes ;

... I ... (ANNEX I) - 109 -

(c) that an integrated envlronmant/development strategy. compr1ses such elements as: protection of the env1ronment aga1nst pollutants of the a1r, sea, so1l ana foods;

consarvat:~~ of ~atural resources to combat de:oresta~1on, desert:::cat:cn, sal1n~sat1on of arid l~~ds ; env~ror~antal l:€lS~at10~ :o l~prove T:~ qual~ty of llfe ; educat1on 1~ all schools .as a ~aans·o: 1nSt1ll1n~ 1n yo~g people tna l~por~~~ce a: ha~on1s1ng development efforts w1tn

env1ro~ental :ac~ors.

Co~~c:l ~otas tnat ~ong ~ha problecs w~ch 1t zandated ~he Artlc!: 1VC Co~~tae to exa:~ne, so~e have not been a~le to oe dealt w~tn ; tha Co==lttee ~ust t~erefore con~l=ue

:ts worK concern1ng ~hesa subJects

(a) z.:::~g:!:,_~~~.s : ::-easons f~r the ga;> be";ween target ar..d actual co~lt~er.~, 1nclud1n; stat1St1cal ~alys1s of proJects presented, re]ec~ad or mod1:1:d, 1n order to ensure l~proved 1::1pler.:enta t1on of A!"tlc l: 110 of the Cor.. ven t1on ;

(~) 21~1~£~~9!~~ : analys~s of the bre~~down o: sta:1s~1cal d.a-:a, Wl. tn a v-:ew to er:.sun:1g a.'1. l::U.proved p~sen:a-:1on of tnese d.ata 1.n t.t.e a..-...n.ua.l Coci.l.SS10n :-epor-c l:l accorda.r..ce

'Nl t!'l Ar~1.cle 11 '3 of -cne Convent1on ;

(c) ~~~~1_££~£!!!£~ : ln-depth reVlew of tha cos: and qual~ty of tec~cal ass1s~ar.ce, taking 1.nto cons1derat~on a~ong other assassue:lts tne Coc=l.SSl.On's study on evalua-:1~n of such ass1st~~ce, ~n order to :~prove the l~pleoen~atlJn ot the rol~va.~t sect1ons of the Convent~on

(ANNEX I) ... I ... - 110 -

(d) ~~~§~:3~~~!~2~3~-!~~!~~~~3-~3-~~!~3-~~~~~E~~~ r-eview or· implementatlon of speclt l~" provlslons of

the Convent~or., and of real 1mpact of measures already taken ; proposals relat1ng to further lmplementatlon of.tnose speclflc provlslons ;

el ~~~S~~~~-S~~~~-~~-~~~~S~~-~~~~~S~~~~~~-~~S~~~~~~~~-~~ ~~=-!~e!:~~~~~!:~~-2!_!:~!~~~~1_!~~-!~~~~:=!!_s~:~e~£~~~=~ llsttng and analys1s ; methods and means to ellmlnate cr mltlgate dlfflcultles.

V. ?UBLICA!'!ON OF T"SX":S

Counc~l ~eco~ends tea~ the Resolu~~ons en :~nan~~al a:.d ~ec~~~~al co-opera~~on, adopted a~ Librev~lle on r~ May 1982 ~~d a: 3rJsse~s o~ 20 u~y 1983, as well as ~c= presen~ ~=so lt.::n on a.~d the 3.e port su ~ t't ed by ~h= A~·tl c :e 1C 3 Cor=l. <;tee, should be speedl.ly publ~s.b.ed ln the "A.CP-EZC Cou~~er".

Jone at Suva, 2 May 1984

For the ACP-EEC Counc1l of M1n~ster-s The Pres1dent

(s.) H.L. SHEARER

... I ... (ANNEX I) - 111 - ANNEX II

RESOLUTIONS ADOPTED BY THE ACP-E!C CONSULTATIVE ASSEMBLY (Luxembourg, 19 to 21 September 1984)

1. Resolution tak1ng into account the Eighth Annual Report of the AC?-E!C Council of Ministers on the state of implementatlon of the Lome Convention and the or)spects !or tne subsequent new Convent1on.

2. Resolut1on on the environment and development.

3. Resolution on combating drought and desertlfication.

4. Resolu~1on on ACP-EEC co-operat1on for the development of fisheries in the ACP States.

5. Resolut1on on the results of the fact-f1nd1ng mission to those States affected by the consequences of acts of aggressloA by South Africa and the situation in Southern Afr1ca.

6. Resolution on the situation 1n Chad.

7. Resolution on the consultat1on of ACP-EEC soc1al partners.

8. Resolution on the indebte~~ess of the ACP countr1es.

9. Resolution on the liberat1on of Nelson ~VDELA.

. .. I ... - 112 - ANNEX III

RESOLUTION OF THE ACP-EEC CONSULTATIVE ASSEMBLY

taking into account the eighth annual report of tha A~?-~~C Councll of Ministers on the state of lmplementation of the Lome

Convention and th~ prospects for the subsequent new Convention

'The ACP-EEC Consultative Assembly

- meet1ng 1n Luxembourg from 19 to 21 September 1984,

- hav1ng regard to the annual report of the ACP-EEC Co~1cil of Ministers for 1983, - having regard to the report submitted by Mr R.· TRIVELLI on behalf of the Joint Commlttee, - welcoming the accession of St. Christopher and Nev1s to the 9'onvention,

1. Po1nts to the state of internatlonal tension result1ng 1n lack of progress 1n the field of North-South relat1ons, part1cularly the cont1nued deadlock 1n the global nego:la:1cns arranged under the auspices of the United Natlons;

2. ~r~ws a:tention to the ser1ous dete~1orat1on 1n the econom~c and soc1al situation in many ACP States and s:~esses the need to prov1de the association's new Convent1on Wlth effectlve 1nstruments and adequate flAancial means;

3. Draws attent1on to the incred~ble wastage of mater1al and human resources caused by the arms race on which 650 000 million dollars have been s-pent 1n a single year an amount equal to the debts o! the developing coun:r1es -

wh~lst the financial resources available to combat hunger a~d underdevelopment are inadequate and calls for the promotion of disarmament measures with the resources made availobl~

as a result being allocated to the develop~ent o! the developing countries;

... i .... - - 113 -

4. st~esses once again the link between the Lome Conyention and the international economic situation, points out that the achievement

of all the objectivescontained in the ~onvention could make an effective contribution to transform1ng North-Souen relations and establishing a new world order,notes the total deadlock of the North-South dialogue at internatlona1 level, the failure of the UNIDO Conference in Vienna and the recentreports by the IMF and

the world Bank which refer to ~~: worsening of the publlc debt of the Third World countries and confirm that the gap between the economies of these countries and the lndustrialized countr1es lS stead1ly widening; notes that even in the current period of econom1c growth in the industrialized countr1es the flow of a1d to the developing countries has been decreas1ng recently

rather tha~ increasing; calls on the EEC countr1es, the~efore,

to correct this ~endency with an appropriate f1nanc1al contr~but1on in the context of the Lome Conventlon~

(a) as regards the objectlves, areas and methods of~ACP-EEC co-ooe.ra '::lOn 5. Cor.s1ders that the negotiatlons on tne new Convention should be brought to an end in 1984 and that it should be rapldly rat1f1ed so as to ensure the perfect cont1nuity of the AC?-EEC Assoc1ation;

6. Regrets, once aga1n, that the annual reoort of the AC?-EEC Councll of M1n1sters does not contain any detalled

lnformat~on and puts forward very few pract1cal solut~ons to the current problem;

7. Repeats 1ts request that the next annual report should conta1n a critical assessment of progress, failures and

d~ff1culties, should fix priorities for future co-operation

and should at long last acquire a political d~mension;

8. Reaffirms strongly that man must be the agent and beneficiary

of development; it is therefore impera~1ve that development should be directed towards the satlsfac'tion•. ot: the basic needs of indivlduals and populat1or~. parti:ufarly those of the poorest sectors, and the enjoyment of their fundamen'tal rlghts, pr1mar1ly

the right to life, in order to create conditions conducive to the~r full and effective participation in political, econom1c, social

~~d cultural life;

... I . .. ( Al"JNEX III) - 114 -

9. Expresses once aga~n its view that the object1ve 1s the 1ndependent and self­ rellant development of the ACP countries, based on agr1cultu:al development and self-sufficiency in food, on the expansion of the internal market and the

harmon1ous development of ~he var1ous product1cn sectors and on reg~onal co-operat1on;

10. Stresses the cruc1~l role of women in development, notably in the f1elds of

agrtculture and nut~ition, and in populat;on grow~,. health programmes and educat1on, and urges that they be given a role 1n all actions and dec1s1ons;

11.. Demands that the new Convention be given a real soc1al d1mension so as to:

- proVlde for the partic1pat1on of the social partners, n 9 tably of voluntary workers' orgar.1zat1ons, 1n the var1ous forms of co-op~ration;

- increase the protect1on of migrant workers•

promote development proJects aimed at improv1ng work1ng cond1t1ons and secur1ng progress in soc1al and trade union r1ghts 1n llne,with the

Ccnvent1ons of the In~ernat1onal Labour Organ1zat1on;

- allow a common posit1on to b~ adopted w1t~ regard to mult1nat1onal compan1es,

1n part1cular those establ1shed in f~ee zones and wh1ch do not respec~ the

interna~ional norms on working conditions;

12. Also recommends that ACP-EEC co-operation should be an effectl ve lnstr1.Jment 1n 'c~ea~lng favouraole cona~t~ons for the el1m1nat1on of obstacles to ~~e enJoyment of f~damen~al r1ghts oy 1nd1v1duals and ?eoples, and 1n th1s connect1on 1nv1tes the negot1ators of the future Convent1on ~o deflne JO~ntly, hav1ng regard to ~he lnternatlonal obl1gat1ons they have contracted, and on the bas1s of the 1nternat1onally acknowledged concept of 1ndlvlslb111ty and lnterdependence of fundamental r1ghts of individuals and peoples, provlslons g1v1ng a concrete express1on to the r1ght to development;

13. Stresses that past experience shows that AC?-EEC co-operation must go beyond

the framework of ~elations between ACP and EEC countries and deal w1th international economic co-operation;

(ANNEX III)- ... I ... - 115 -

14. St~esses in part1cular, with regard to the internat1onal level, the need to promote JOlnt AC?-EEC action des1gned pr1mar1ly to help relaunch the global negot1at1ons, hasten the 1mplementat1on of the Common Fund for commod1t1es, br1ng to a conclus1on the current negot1at1ons on 1ndiv1dual products and deal

·w1th the debt problem fac1ng the developtr.g count~1es and suggests 1n ~~1s connection that the governments ~• -he EEC and AC? States take an in~tiat1ve of thts k1nd when the negotiat1ons on the new convent1on are concluded;

~=· Emphastzes also that the Commun1ty and 1ts Member States must not have

recourse to policies wh1ch ~ay be 1ncompat1ole w1th the ObJeCt!ves of the Lome Convent1on and that where these polic1es are l1kely to have unfavourable tmcl1cations for the development of the ACP countr1es they should form the subject of talks to be held at the approprtate t1me w1th those countr1eS;

d~scuss1ons of ~~1s k!nd should be the normal method of solv1ng all problems

of JOlnt interest in relations' between the EEC, the Member States and ~he AC?;

16. Cons1ders that ACP-EEC co-operat1on must be tmplemented on the bas1s of systematlC recourse to a d!alogue between tne partners on an equal faot1ng on

all aspects of co-operation in the 1nst1tut~onal framework; 1n order to

ensure max~murn eff1c1ency for the 1ns~ruments of the Convent1on, the pdrtles

concerned should endeavour to seek jointly agr~ed ways and means of attalnlng more completely the OOJeCtlves of the co-cperat1on projects to be undertaken

w1th1n the framework of the development ~trateg1es defined tn sover~1gn

tndependence by each ACP State or by a grou~ of ACP States;

... I ... (ANNEX III) - 116 -

17. Urges that the ACP States be able to voice their concerns and Ulterests 1n

cor~ect~on w1th the EEC's current negotiat;ons with Spa~n and Portugal so

as to ma~ntain their preferential s~tuation far as possible and enable

~~em to der1ve the max~mum advantage from the possib~llt~es offered by the new enlargement of the Community;

18. Has regard to the 1mportance of the renewal of the Lome Convent1on and

recalls that the European Par!~ament has a duty and a right to give 1ts

op~n1on on the condit~ons govern1~g renewal; calls on the Counc~l of Min1sters of the EEC to refer thls matter to the European Parl1ament and/to request

Parl1ament's 0plnion before ratlfying ~~e new Conventlon;

19. Notes that co-operation is most successful when and where the local populatlons are 1nvolved directly; stresses in this respect the importance of the work of non-governmental orgahizations;

20. Awa1ts w1th the keenest interest trre proposals to be put fvrward by the ACP-EEC ~ork~ng Party on Women on the integration of women 1n development and progress;

{b} As reg~~s financial and technical co-operat1on

21. Emphas1zes that !uropean Community a1d r~presents only a small propor~1on of

the to~al aid rece1ved by the ACP countries and cons1ders, therefore. ~,at to

1ncrease 1ts effect~veness there must be greater co-ord~na~1on between

Communlty aid and other donors, in the first 1nstance the EEC Memb~r States,

and calls in particular on ~,e governments of the Memoer States of tne EEC ach'lely to support the initiative of the World aank to set up an emergency fund in favour of the poorest countries 1n Africa;

22. Requests that th~ next ACP-EEC Convent~on should halt the decl1ne in the real value of·ald transferred since Lome I and II and that financ1al resources

should be substantially increased, takin~ account of factors such as monetary depreciat1on, populat1on gro-th, the deterioratlon of the environment. the increase in the number of ACP States and the need to pursue effect1ve policies;

(MNEX III) ... I ·I - 117 -

23. Stresses ~~e need, whatever the dlffieulties facing the Community and the

Member States, to step up Commun1ty spend~ng on development a~d

slgnlflcantly so as to ensure that ~he Lome Convent1on ~ema1ns an effect1ve u:s t:-urnent;

24 .. Reaffl~ms the need, f1rst recogn1zed on 26 September 1980, to ach1eve the objectlve of allocat1ng 0,70% of the GOP of the developed countr1es to puol1c de'lelopmen't al.d as soon aa posSJ.ble; urges those developed -t:ountr1es which have not yet ach1eved thi& ObJectJ.ve to make every effort to do so before 1985

or jur1ng ~he second half of the decade at ~~e latest; repeats the call 1t made ln 1981 for at least O,lS% of the GOP to be allocated to publl.c a1d to

~,e least-developed cour.t~1es;

25. Calls for extremely careful study of the proposals from the EEC Commiss1on

to use :he Cvmmun1ty's borrow1ng capac1ty to make f1nanc1al ~esources

ava1lable to the ACP States under more favourable cond1t1ons and feels ~hat

~e Cvnsultat1ve Assembly's proposal for setting up an ACP-EEC development banK snould oe g1ven careful conslderatlon w1th a v1ew to defin1ng and mak1ng use of new lnstruments to improve the present s1tuat1on;

26. Declores tne unsat1sfactory rate of comm1tment and payment of appropr1at1ons

and regrets that the Comm1ttee provlded for in A~1cle 108 of the Convent1on. responsl.ble for study1ng suJ.table ways of enhanclng the

~~~ct:on1ng of f1nanc1al and techn1cal co-operat1on has not yet put fo~ard

a."''y ~roposals. po1nts out 1."'\ th:;.s context that the Consul ta·u ve Assemoly

l!ke ~~e Parl!amentary Conference before lt, has always deplored these

delays and yet no effect~ve measur~s have been taken;

21. Notes the Lmportance o! ex post_ fact:o evaluation of proJects and programmes for 1ncreas1ng the effeetiveness of co-operat1on; and strongly recommends

that the AC?-EEC investlgate the des1rab1ll.~J of sett1ng up reg1onal

centres to concentrate local expert1se for ex pas~ facto evaluation. and asks

~~at funds should be made available for tha~ purpose 1n the new Convent1on,

••• j_ • •• (ANr£X III) - 11 R -

28. !mpnas~zes the 1mportance for the AC? countr1es of trade and exports as a sou:ce of revenue, notes in th1s connect1on that 5% of thelT exports to the ~E:

1s eql.a .. alent to mor'! than the total annual a~d t:::ey rece1ve from the European

Commun1ty and as~s that the next Conventlon establlsh a clearer deflnltlon of

roles w1th regard to financ1al ad~antages and trade operatlons; deplores the

steacy deter1ora~:..on 1n the balance of pa¥ments of the AC? countr1es 1n thelr

deal111gs WJ. t.'1 the Corrmuru ty and the fact that the share of ACP exports m Corrmuru.ty purchases 1s constantly decreaslng;

29. Not~s once aga1n that trade co-operat1on has so far fa1lea to b~:..ng about elther an apprec1able 1ncrease 1n trade or a d1vers1ficat1on 1n 1ts structure;

30. ~egrets that the ACP-E!C Counc1l of M1n1sters has ~ot c~rr:..ed out a detalled

st~dy of the presen~ s1tuat1on and 1ts causes; cons1ders a study of th1s k1nd together w:.. th the adoption of a ser1.es of prac•acal :neasures to be of tl.;le

~-eatest 1mportance and urgency, espec1ally w1th regard to rum, beef ar~ veal, oar~ES,

st~s~oerr1es, cut flo~ers, pl~nts, vegetables and groundnuts;

31. E!eafflr

adoot1on of measures related to trade pol1~y but also for recourse to a whole

r~ge of fac~ors relat1ng to the oromot1on of 1nvestment anc to co-operat1on, par-tlcularly 1n the Lnc!ustrlal and ag:r1cultura1 sectors.

32. Urges '.:!'le ~!C to make an ef~ect1ve contr1but1on to exc:end:.,g tr:.!de oet~o~een the AC? and EEC countr1es by adopt1ng the follow1ng measures;

(a) free access for all agr1cultural and indus~r1al ?roducc:s;

(b) cnanies 1n rul~s of or1g1n to enable a larger number of products processed 1n the ACP States '.:o ga1n access to EEC markets;

(c) changes 1n rules of or1g1n relatl.ng to f1sher1es products bear1ng 1n m1na the mutual 1nterests of the partl.es to the Convention and the 1nter­

nat1onslly recogn1zed 200-~lle exclus1ve f1sh1ng zone and tak1ng account

of the soverelgnty over the resources Wl thln th1s llm1 t der1 ved from the coastal states;

(d) adopt1on of prov1s1ons des1gned to m1nt~ze rec~urse to the safeguard clause as far as posslble;

... / ... (ANNEX :rr) - 119 -

33. Recogn1zes that, wh1le further l~beral1zat1on of trade lS of ireat 1mportance to the AC?, 1t has been prevented by problems, somet1mes of m1nor 1mportance,

affect~ng only a small number of Commun1ty Memoer States; bel1eves that the EEC must f1nd means of remov1ng these obstacles to freer trade and accord1ngly requests the Community' to 1nvest1iate the poss1b1l1ty of provldlng, through

1ts bucget, spec1fic funds to ass~st d1vers1ficat1on or restructur1~g for EEC

reg1ons or 1ndustries damaged by trade concess1ons, thus encourag~ng agreement

on greater f~eedom of accsss for AC? products;

(d) As ~!gards ag~1cultural and food co-ooeration

34. St~esses that the extremely ser1ous agr1cultural and food s1tuat1on fac1ng the

maJOrlty of the AC? countr1es increases stlll further the pr1orlty to ~e accorded to agr1cultural development and food self-suff1c1ency, and 1nsists on

~he need to 1mplement wlthou~ delay the ~esolut1ons on the fight aga1nst hunger and on hunier in the world adopted by the consultat1ve Assembly 1n Rome and Ser hn;

35. ~ecalls that fish1ng 1n AC? countr1es offers enor~ous potent1al for the

struggle aga~nst hunger and ins1sts that the development of f1sh1r.g should be

one of ~he pr1or1t1es;

36. St~esses, !n ~elat~on to the ex1st1ng state of drought, the close l~nk between

the ag~1cultural and food sector and env1ronmental conserva~1on;

37. Cons1ders that any pol1cy a1med at ach1ev1ng self-suffic1ency 1n food mustoe based on the rat1onal and systemabc use of' water power in- agr1curture, lncludlng the promotlon or equlpment for the pumolng. transportatlon and stock1ng of' water and of cheap 1rr1gat1on equ1pment so as to allow water to be sold at a reasonable cost price;

38. Bel1eves ~~at secur1ty of food supplies for the populat1on of all ACP countr1es 1s a r~~damental a1m, and that food self-sufficiency should be sought on a r~g1onal bas1s so that areas wlth hlgh product1ve capac1ty can produce for other ar~as; to thls end g1ves h1gh pr1ority to measures to·encourage ~eg1ona1 co-operat1on and trade;

... / ... (ANNEX III) - 120 -

39. Is ~ak1ng the g! atest interest in the Community's act1v:.~1es 1n the f1eld of foo~ strategies; calls on the Community to prov1d~

greate~ support for the strateg1es formulated by the AC? States wh1ch are aimed at self-sufficlency and the secur1ty of food

suppl1es; also calls for an eva1uat1on of co-opera~lon on strateg:es in favour of the ACP States concerned;

40. welcomes the fact that the European Co~munity has f1nally agreed

to env1sage mult!annual planning of its food a1d ~1d to f1nance

alterna~1ve operat1ons in place of this a1d; po1nts out aga:n that decentra11zed strateg1c stocks must be establlshed at r.at1onal and reg1onal level;

41. Calls on the Community to comply w1th the long-stand1ng request of the AC? countrtes that agr1cul tural -products for long-term u'3e be made ava1lable to them under preferentlal condl t1ons g:. ver. that an

arrangemen1: of th1s typ.e could be an 1mcortant fa~.tor ln the :mplementation of food strategies;

42. Calls for pursu1t of efforts to reduce EEC over-product1on of agr1cultwral products wh1ch when dumoed on the world marKet jamages ACP exports;

43. welcomes the implementation wi~hln the Commun1ty budge~ of the

scec:al orogr~~e to cornba: hunge~ 1n the world and s:resses trat

~n1s must be a sustained effort based on appropr1ate f1nar.c1al

resources from the budget and demands that th1s progr~~me shoul~ be g1ven greater prlority in future budgets;

44. Calls on the EEC to make a substant1al increase 1n the funds

allocated to measures connected ~ith the pol1cy on world hunger g1ven that the funds currently allocated to these measures are extremely meagre;

45. Welcomes the fact that the Technlcal Centre for Agriculture and Rural Co-operation has at last been establlshed and that lt w1ll very shortly become operational;

46. Calls on the Commission of the European Commun1t1es to promo:e ~he immediate launch of a large new Commun1ty-1nit1ated fund to take urgent act~on mainly for the countries of the Sahel;

:ANNEX III) ... / ... - 121 -

(~) as regads raw materials, sna::x and SYSMIN

47. £mphas1zes the predo~•na~t share of raw mater1als in ACP expor~s and hence ;helr

importance as a source of revenue; potnts out at the same t1me tha~ the

importance of export and monocultures shoula be systemat1cally ~ecuced in favour of product1on for ind1genous baste needs;

~s. St~esses the importance of tne early 1mplementat1on of the Common Fund for

co~mod1t1es, calls on those ~ember States ~h1ch have not already done so ~o rat1fy the creat1on of a Common Fund for commod1ties w1thout delay; the

concluslon of internat1onal agre~ments on 1ndiv1dua~_products should ensure effect1ve control at internat1ona1 level of the pr1nc1pal commodity markets and pr:.ces:

49. Calls on the Community and its Member States to do everything wi~hln the1r power to adopt a common strategy, 1n conJunctlon w1th the cocoa-produc1ngI countrles, 1ncluding a price intervent1on, protect1on and support system

based on buffer stocks and quotas or othe~ measures; 1nv1tes the Commun~ty

ar.d 1ts Membe~ States and the ACP States to adopt all necessary measures to

ersure tn~~ the second sta~~ 1n the negot1at1ons concerning the· Internat~onal Cocoa Agreement is resumed next October;

Su. ~mohas1zes ln tnls ~espect the importance of tne c~r~er.t nego~latlons f~r ~~e

r~~ewal of the !nternational Cocoa Agreement hopes that tnese negot1at1cns 1o11ll prove to be a posit1ve test of closer co-operat1on between the European Commun1ty and the AC? countries: 'lo 51. Is concerned at the European Community's observation that the ACP countr1es

are los~ni around to the1r compet~tors in the third world; stresses that the

only way to reverse thls tr~nd lS to step up the appl1cat1on of all the

instruments provided tor in ~~e context of aericultural and lndustrial co-operation;

52. Expresses its support for STABEX wh1ch, in the absence of market control and price-fixing mechanisms at international level, cont1nues to play a ma;or role

for ACP States; calls on the Community as a.~atter of urgency to support the AC? States in establish1ng production and market1ng structures in order to reduce the1r dependence on the STAB£X system;

... / ... (ANm.:X III) - 122 - 53. Renews its demand for the inclus1on of new products and der~v~d products in the STABEX system and calls on the Comrnun1ty, as a matter of urgency, to increase the volume of resources to be allocated for the strengthenlng of the system;

SA •. Re1 t:era-r:es 1 ts v1ew that one of the pr1or1 ty obJec t1ves of AC?-EEC co-operat1on snould be to increase the share of locally

processed ~roducts;

55. Feels tnat the low rate of util!Zation of the appropr1at1ons provided for under SYSM!N proves that its object1ves are not wholly adapted to the mining problems 1n the ACP States and considers that the fund1ng cr1ter1a should be relaxed to enable more ACP States to part1c1pate;

(f) as regards industrial co-operat!on

56. Fefers to the resolution on ACP-EEC industrial ~o-operat1on a~d the impact of the Lome Convent1on, adopted last yea~ by the

Consultatlve Assembly; and calls for its pract1c~l lmplementatlon;

57. Po1nts out that, in the con~ext of a s~rategy of Lndependent and self-rel1ant development of the ACP countr1es, 1ndustr1al

co-operation must be based as a pr1or1ty on the o~t1~um use of local r-esources;

58. Stresses tr.at the industriallzat:lon of the AC? countr1es must be

des:~ned both to·meet l~~ernal requirements - lr. :~13 connect:or.

lt must run parallel to and strengthen agr1cultu~al develooment­

and to increase exports - ln th~s connect1on lt 13 dependent on

guaranteed freedom of access for ACP ~roducts to tne Community market;

59. Stresses the need for the ACP States to define, w1~n EEC ass1stance, industrial development plans wh1cn explolt to the ru:l the potential for regional co-operation;

60. Hopes that the next Convent1on will encourage investment and urges in particular formal provisions for and the introduction of a pract1cal system of guarantees £or such investment, lnvolvlng a

joint commitme~t by the !uropean Communlty, its Member States and the ACP States;

(ANNEX III) ... I . .. - 123 -

61. Hopes that the E!C will provide greater support for jo1n~ investment proJects between undertaklngs in the EEC and the ACP ~ountrles by contr1but1ng to the formation of venture cap1tal;

62. L.;rges that adequate attent1on be gJven to aspects of erw1ronmental preservat1on 1n the context of industrtal co-operat1on;

(g) as regards energy

53. Emohas1zes once again the ser1ous dependence of the ACP countr1es on 1mporte1 energy; sa. Refers to the resolution on ACP-E!C co-operat1on 1n the fteld of energy, adopted by the Consultative Assembly 1n 1982, and calls fo~ 1ts pract1cal implementation;

65. Cons1ders that the agricultural and 1ndustr1al development o! the AC? States should go hand -in hand with a reduct1on in the1r dependence on imported energy through systematlc explo1tat1on of the1r own energy

~otentlal, particularly new and renewable sources of ener~J and nydro-electrlcity;

66. ?o1nts out that 1n the case of hydro-electrtc projects the 1mp::cations for the env1ronment 1n thls ~ield (lncluding the construction of dams) must be studied in detall and 1n good tlme;

57. Stresses once aga1n the need for the European Communtty to help establlsh energy inventor1es for each ACP government;

68. E~phasizes that each project must comprise a~ energy component so as to 1dentify solutions wh1ch are the most economi: 1n terms of

energy or can make use o~ local energy sources;

69. S~esses the gravity of the crisis in the non-co~~ercial energy sector and also the excessive use of firewood wh1ch has ser1ous consequences for the environment and for agr1cultural development;

... / ... ( A.N'NEX I I I ) - 124 -

70. Requests that in the next Conventlon, commerc1a1 and non-commerc1a1 ener5Y sectors become a pr1or1ty area of ACP-EEC co-operatlon;

(h) as regards the env1ronment

71. ?o1nts out that the c~rrent 1nc1dence of drought and desert encroachment

reveals the fragll~ty of the env1ronment 1n many ~CP countr1es and clearly

shows the l1nks be~ween env1ronmental conservat1on and the rat1ona1 encourage­

ment of agr1culture and food sectors, th1s frag1l1ty of ~he env1ronment and the llnks between the environment, agr1culture and food be1ng equally present ln the great trop1cal or equator1al forests and in mar1time coastal, fluv1al or lake

~ones;

72. Ex~resses concern over the new potent1al danger ar1s1ng from the export of

poisonous and dangerous waste and products-from the Commun1ty to AC~ countr1~s whether they are to be dumped, processad or stored;

73. ~elcomes the fact that a ser1es of measures to protect the ~v1ronment have been

dec1ded Ln the context of the Lmplementation of ~,e spec~a1 programme to combat

nung~r 1n tne world;

74. St~~sses, howe•ter, that a more glooal and long-term approach snould be adopted

to the er.v1ronment, wh1ch should 1n future const~tute a pr1or1ty sector of

AC?-~EC co-operat1on: calls for the lm~lementatlon of env1ronmen~al s~~ateg1es

at natlonal and reg:or.al level and of ~roJects relat1ng to the natural

env1ronment and env1ronmental preservat1on to extend beyond the t~me-f~ame ot

the ~ew agreement;

75. Awa1ts w1th the greatest 1nterest the deta1led proposals to be pu~ forward tn

tn1s f1eld by the AC?-EEC Work~ng ?arty on the Env1ronment;

(L) as regar~s cultural and soc1al co-operat1on

76. Stresses the need to ~ake better use o~ human resources 1n ACP countr1es by tak1ng measures in the f1eld of education and tra1n1ng, research, sc1ence,

technology, informat~on and commun1cat1on, tak1ng 1nto account the 1nd1v1dual character1stics of AC? countr1es;

underl1nes the importance of ~a~nta1n1ng and stimulat1ng 1nd1genous culture,

technology and lifestyles, as wel~ as social development 1n terms of greater

soc1al equal1ty and co-operat~on;

... / ... (.~NEX III) - 125 -

77. Stresses 1n part1eular ~,e close d1rect l1nk between the d1ssem1nat1on of

educat1on and 1mproved lndustrlal and agr1cultural ~roduct1on as ~ell as the

capac1ty for tachnolog1cal 1r~ovat1on, adaptat1on and transformatton,

78. Urges, therefore, that each sector of ACP-EEC co-operat1on and each proJect should 1ncorporate measures relat1ng to tra1n1ng;

79. Cons1ders that the E~opean Commun1ty should:

(a) help the AC? countr1es to develop the1r educat1on systems, (o) help them to establ1sh the1r own research capab1l1t1es, (ci promote transfers of technology,

(d) 1s of the op1n1on that the EEC. 1ts ~ember States and the A~P ~hould JOlntly

cons1der ~ays and means of d1scourag1ng graduates from em1grat1ng;

80. Stresses that access for ACP.students to un1vers1t1es and tra1n1ngcentres 1n the European Commun1ty represents an 1mportant contr1but1on to the develJpment of the human potent1al 1n the AC? countr1es, and that 1t should be extenaed and made eas1er by enaollng AC? students to enJOY the same study condltlons as

Eur~pean studen~s. and that the E!C should prov1de scholarsh1ps for AC? studen~s;

31. Hav1ng regard to the Mex1co Oeel~at1on on Populat1on and Development, cons1ders

t~at developmen~ p~og~ammes should reflect the 1nextr1cable l:~k between

pooula~1on, resources, env1ronment and development, and attaches conslderaole

1mpor~ance to 1mprov1ng the status and educatlon of ~omen and enhanc1ng t~e1r role :n the development process;

82. Hopes that the new Convent1on recognizes that soc1o-cultural cuest1ons must

be fully ~aken 1nto account 1n all projects and emphas1zes that practlcal success 1n this area must be achieved 1n future;

83. Ins1sts, in v1ew of 1ts previous resolut1ons on the el1m1nat1on of dlsCrlml­ natory measures w1th regard to ACP students and m1grants, that wlthln the framework of future ACP-EEC relations, special attent1on should be g1ven to AC? c1t1zens legally resldent in the territory of Member States:

... / ... (ANNEX III) - 126 -

s~. Emphasizes that ACP-EtC socio-cul~ural co-operation should in future play a partlcularly important role 1n thlS field by taking account of cultural identities and the social and cultural 'env'l.ronment; as. In ~his connection calls on the Commun1ty and the Member Sta~es ~ s1gn a detlaratlon of 1ntent indicating their willingness to take a sympathetic view of demands for the restitut1on of cultural objects of special significance to ACP countries and 1ndispensable to the reconstitution of their nat1onal heritage; a6. Stresses once more the need to include provis1ons on cultural and soc1al co-operation 1n a special chapter in the future Conventl.on;

87. Considers it important to encourage the role of the voluntary soc1al serv1ces 1n the development sector, as stressed by the

recent European Counc1l ~n fontainebleau; calls on the

Comml.sslon, as already requested 1n ~he aforement1oned

Resolution of 26 September 1980, to subm1t - th1s t1me w1~h1n Slxty days of the adoption of thls Resolut1on - relevant

p~oposals for the adopt1on of a European statute for those engaged in the field of techn1cal co-operat1on;

(J) as regards reg1onal co-opera~ion as. Polnts out once aga~n that to achleve the objectlVe of lndependent ar.d self-rellant development of the AC? States,

:t lS essent1al to streng~hen reg1onal co-~rat~on, which

sno~ld become one of t~e cornerstones of such development;

89. ~equests, therefore, a s1gn1ficant increase in the f1nanc1al resources allocated to regional co-operation 1n the next

Convent1on, pa~tlcularly in the case of southern Afr1ca;

90. !nsis~s that the strengthen1ng of regional co-operat1on should be seen as an opportunity to increase co-operation not only between the ACP countries but also between the var1ous partners involved in a part1cular region or project, and between ACP countries and non-ACP developing countr1es whether or not they be ne1ghbours;

... I ... (ANNEX III) - 127 -

91. Stresses that regional co-operation should give pr1o~~ty to: (a) the use of dynamic complementar1ty between ACP States, (b) maximum use of human resources and optimum use of natural resources in ACP countries, (c) food security, (d) the development of t~ade between AC? States by the elimination of tariff, monetary or other barrJ.ers;

92. Hopes th~r the new ~orne Convention w1ll refer, as a pr1ority, to ald to refugees, which is a problem whose scope has increased

in the cont1nent of Afr1ca ~~d whose consequences may well des:abillze entire regions;

93. Requests that such a~d to refugees be provlded•for withln the

context of regional co-operat1~~. th~ 'unds for wh1ch should ' be increased and gran~ed first_ apd foremost to those ACP countr1es whlch take in refugees and hel? to settle them permanently;

(k) as regards sugar

94. Po1nts out that the Sugar Protocol, conc-luded for an indeflnl te_

per1od, blnds all partners, whose numbers are increas1ng bot~

1n the AC? co•.mtr1es ~'1d the EEC 1-lember States, and lmpose::­

commlt~ents on them wh:ch must not be called into questlon;

95. Reaffirms that despite the repeated concerns expressed in its previous resolut1ons and t~e crit1cal Sltuation hlgnllghted in the resolution of tne Jo 1nt Comml ttee in-teor-ua.L'Y 1984 1.n respect of the adverse effects of the Commun{ty'•s restr1ctive prlcing policy on the ACP sugar supply1ng states, no steps have yet been taken to allev1ate thelr s1tuat1on whlch has further been aggravated as a result of the maintenance of the status guo in the level of the guaranteed ~r1ce offer-ed to them for the current delivery per1od.

96. Suppo~ts the request made by Portugal in the context of its accession to the EEC, to brlng wit'hin the amblt of the Sugar Protocol the full quantity of 300 000 tonnes of raw cane sugar presently imported bY. that cguntry to meet its domestic requirements, as w~~l as the request made by the AC? to supply this additional quantlty;

... I ... (ANNEX III) - 128 -

97. In conseoue~~ exhorts the Community to demonstrate 1~~ political goodwill by acceding to this request which would preserve the

interests o~ the ACP traditional suppliers on the mark~t of Portugal and at the same time contribute to the allevlatlon of the economlc difficulties of the AC? States dependent upon sugar;

(l) as r~sards the instltutions 98. Requests that the AC?-EEC Council of Mlnisters should to a greater extent become a polltical body to give impetus to the Convention and to consider all matters which affect the North-So~th

dialo~Je, both as regards internat1onal economic co-operatlon and the various policies of the ACP States, the !uropean Community and its Member States;

99. Recommends that under the next Conv.ent1on the terms of reference of the Committee be extended and its nature amended in accoruance with Article 108 of the current Cor.vention so that

it can become a body for join~ management based on parlty;

100. Repeats the call 1t made on 26 September 1980 for the next Convention to include provislons designed to clarify the parameters o£ the right to table written and oral questions to the Council to prevent Rules 17 and 18 of the Rules of Procedure from becoming a dead letter;

101. Considers that th~ Consultative Assembly's ~elatlons w1tn ~he Counc~l of Min~sters and the Committee of Ambassadors should be strengthened. in partlcular through consultat1ons with

representatives or the Consultative Assembly prior to certain Counc~l mee.tings and on certain specific subJects;

102. Calls for the implementation in the next Convent1on of t~e resolution on the parliamentary 1nsti tutlonal sys tern to be set •..1p in the next ACP-EEC Convention, adopted by the Consultat1ve Assembly 1n Berlin, in particul~ as regards the Joint Assembly, its three working parties and the dialogue with the ecor.omic and social representatives; emphasizes that the Joint Assembly must have its own budget as a guaractee cf its independence;

... / ... ~ANNEX III) - 129 -

With regard to the negotlations for a new Convent1on of ASSOClat1on

103. Notes with very great s~tisfaction the fact that the

African, Carlbbean, Euro~ean ~~d Pac1f1c States ~hich are signator1es of the Lome II Convent1on and those wh1ch have

subsequently acce~ed to it have una~imously confirmed thelr intent1on to join in ~ new Association enabling them to af!1rm and consolidate in the international communlty the.ideals and interests of development in peace, justice and liber~y for their countries and peoples;

- notes that therefore - an~ with the probably imminent access1on of Angola, Spain, Mozambique and Portugal - the Association will comprise on its own some 700 million-people and half the Member States of the UN;

- notes therefore the verv serious responslbllity and tne immense tasks whlch manifestly should fall to it;

lOA. Instructs its co-Presidents to for~ard tn1s resoLutlon ana' the report drawn up cy Mr R. TRIVELLI to the AC?-EEC Council of Minlsters, the AC?-EEC Committee of Ambassadors and the

Council and Co~~iss1on of the European Co~~unltles.

. .. I ,. .. (ANNEX III) - 130 - Al'INEX IV

ANNUAL ~£ETING OF THE ACP-EEC RE?RESENTATIVES OF ECONOMIC AND SOCIAL INTERESTS (Brussels, 14 and 15 September 1984)

FINAL DECLARATION

rhe repr~sentatives of eeonom1c and soc1al iMerests ot the

coun~r;es ar.d of tne e~rooean Commun1ty, meeting ,n 6r~.ossels in -;r:~

nead~~arters 0~ tne :c=r.omic ~na Scc:ial

C:Jrnr.'ll.mit1eS on 15 Sepamoer 1984 at tne ini~iuwe ~1 the AC?-EEC Jo~nt

-Net~ ti'lat the insti~utions of the ;.:ome Convention, as .. ell as ':he pucl1c:

bod1!S res~:onslble tcr th~ i'11r:;~Lemem:atlon o1 the Conven-::ion and these

r:egc "t ~at i ng the nex: Co:w~nt, on regard ccnsu l a': 1 on -.~ i t h ..acP- E:EC so~ 1!! ~

oart.,e'""S, and tl'leir acti-le c;:,ntri::~utlOt'l to developme"'t coccera-:1on, as

ac:e~teo and n1ghly posi~ivt tacts;

- :=ay tri:ut~ to the AC?-:~c Joint Cammit-:eg, •h1e:h l'las ~atiently and

,.esoLuttLt contr1bUt!~ to the crea~ion of th,s state o1 min~;

- Wet:::mes tne tact :~at ~:"le dr!ft t~nn: of the Convent1on of Lome ~::

soec,f1c!lly pr~vice for res~lar 'onsul~at1on .,~n recr~sen~at1ves ~~

~:ono~1c and ~c:1al interests ~ct~ by the Jo1nt Counc1L ard by t~e Jol-~

4ssemcly, ana re~ogn~ses ~~e ut1L1ty of the1r be1ng assoc~atec w1~n :~e

wor~ o+ cocperat,oM;

Note ~~at each year :ne n~.o~aer of ~ar~1c1pants ,, the consu~tat1on meet1ngs

~as 1n::-easect, resul: ,,g in 198~ 1n a large represencanon o~ var1ed socio-vocat1onaL ir:terests working on tnt bas1s of carefully drawn uc

preoar3tory docume~ts;

eet1eve t:'lat the basis o~ oar:i::l;:~ation by socio-vocat1onal interesr:s in

coo:::sradcn is tnus fully l"~al1Sed, but that ft is 1mcortant to :;or~':'l:..~e ard w1den this form ct ccnsul:at;on so that such consul::at1on results 1n concret& involvem•nt oy sociaL g,vtner! and regreser.tat1ve groucings cf

~eo~~e in ~CP-!EC cooperatto~;

... ~ ... - 131 -

- Ins1 s~ there~ort tnat inst t t:..:ic:ns of Cc~ven:i~n ...... "'' .. provis~ol"'ls re";arding c:nsultation •.dth AC? .. :Ec ec:onom~c and so:ial fc:"as fully il'ltQ efhc:t, ar:d ensure ;n ~:articul..- that the ,..~cessary fwr:cs '::le'

rnade avai ~able;

!nsist atso t!'lat the authorities o~ the ACP States and of tne Ccmmur:~ty

g~ve due regard to develooment ac:ivi:ies 1nit1atec by recreser:at1ve

;:-oucings cf those cor:cerned, in a:;ordanc:e witn the eo)ec:wes d ~n~

co~v!nticn and tne current r~Les;

• Setieve, in this regard, ~~at ~hese ;roucings sh~uld oe aole to :ort·c;:a!e

~~ a pr!C!1caL way in drawin~ u: c~ooeration programmes, par:1:ular~y ~~

t~e ~ase of cr~c;ram:nes in suocor~ ::-t Sf~toral ~ol1c:i:s in :he AC? Sta:!s ;

- ~~~ues: t~at, ;en•rally, :~e Conver!ion snoutd deiine, wnenever recess3rv,

~he rol! o~ saeio•voca:ional 1orees in the .edt o'f ::evelopm'!nt a:-::: :-i

mear.s •n!reoy the1~ eoc:trat~on coul: be :rganisea;

~o tht AC?-~EC Ccnsultitivt Asse~:ly, C~~m~ssicn Qf the 'europe!~ C~~~unit~!S.

. .. I ... ~ANNEX IV) 'flU HI) LOME. CONVEN'I'lON ( 1985-1990) MECU r;;;:;;;;:;:--~OLUME - ll'iOO I l l. - S'iJO

------.-- EUF .. "1400 Eili .. 1100 EIB A1·t. 1 H .= p ·'".

•• .. 4(>45 l. - 605 L .. 2()1)

St.abo• Ofaraln Spacial risl< -~ - 415 Subsidies - 4(1(.0 loans capital .. 600 .. (,()()

L • 551 L • 201 L • 2990 L .. 524 L .. lU'I "-"' ---- emergency intfrest other subsidies aid/ f;;UIJ§i

L .. ,202 ... - 175 l. ~ 2f.2l

------

2 regional co-opet•ation ( ) =- lOOU (1 ... 6)1,5) liH.iulllng d~sert1f1cat1on ---- ...... _. . . l ( 2 ) ~mergency aid 210; refugees BO ( ) of wt11ch cor = 40 (L = 25) regional trade promotion = 60 (L 40} I. "' fono 2

C: z2: .....['!

~ ACP-EEC COUNCIL OF MINISTERS BRUSSELS

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