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SUMMARY RECORD OF THE 18th MEETING OF THECOUNCIL OF ACP MINISTERS(Freeport on 20 and 21 March 1979)Ref: ACP/460/79 (Secr) Rev.1 KKK\Tr:VE/NH Brussels, 20 April 1979 Retyped by : bm |
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The 18th ACP Council of Ministers, held in Freeport on 20 and 21 March 1979, devoted a large part of its work to the examination of the Committee of Ambassadors' Report to the Council of Ministers concerning negotiations. After a summary examination, therefore, the Council adopted the Committee of Ambassadors' Report on the implementation of the Lomé Convention, Intra-ACP Cooperation and Internal ACP Matters [Doc.ACP/271/79 (Amb) Rev.1].
In this document, the Secretariat has attempted to indicate the Council's directives and conclusions in the light of the recommendations contained in the above-mentioned Report (concerning the implementation of the Convention).
PART I
PART ONE: ACP/EEC RELATIONS
A. TRADE COOPERATION
The Council was noted with concern that ACP-EEC trade concentrated present on a few primary products which account for most of the ACP's exports to the Community, is subject not only to wide fluctuations on the world market but also to new restrictions imposed by the EEC.
ACP agricultural products come up against levies, non-tariff barriers and other quantitative restrictions, whilst products processed or manufactured in the ACP also encounter prohibitive taxation and safeguard measures.
The Council deplored these protectionist measures which were slowing down the ACP's effective participation in the EEC market.
TEXTILES
The Council asked the EEC to reverse its decision to impose ceilings on the negligible volume of ACP textiles exports(1) to the Community, and drew the latter's attention to the fact that implementation of this decision would be contrary to the principle of free access granted to ACP products under the Lomé Convention.
ACP IMPORTS OF EEC AGRICULTURAL SURPLUSES
In order to find a satisfactory solution to this issue which was submitted by the ACP in March 1977 [Document ACP-EEC/87/77] the Council approved the Committee of Ambassadors' recommendation to set up a Joint Working Party responsible for examining the technical aspects of these problems.
GSP
The Joint Working Party on the GSP set up by the Council of Ministers meeting in Fiji in April 1977 - to evaluate this system's effects on ACP exports to the EEC - required, in order to advance in its work, certain information from the ACP.
The Council urgently requested Member States to supply this information to the Working Party.
The Council, moreover, noted that a Seminar on the Community's GSP is scheduled for July 1979; its purpose will be to enable ACP and EEC operators to mitigate the effects on ACP exports to the EEC of future Community GSPs.
BANANAS
The Council noted with concern that the ACP are still unable to sell their bananas in six of the nine members of the Community and that they have neither managed "to gain a foothold in new Community markets", as provided for in Protocol N° , nor benefited from "measures particularly with respect to investment encompassing all stages from production to consumption", as stipulated in the Protocol.
It should also be noted that a meeting of ACP banana-producing States was held in the Bahamas, peripherally to the Ministerial Conference, for the purposes of setting up an organization grouping these States together.
SUGAR
The Council noted that the following developments have taken place in the area of sugar since the 17th Session of the Council of Ministers:
Firstly, there is the growing threat to continued access of ACP sugar to the EEC which is, in effect, access to the UK market, which absorbs almost 96% of ACP sugar. This threat comes from the expansion of beet sugar, both in the UK itself, and in the Community as a whole, and the consumption of artificial sweeteners - glucose and ipso-glucose in particular.
Secondly, there is the question of shortfalls and force majeure requests from four countries - Kenya, Suriname, Uganda and the People's Republic of the Congo. These countries were unable to meet their quota requirements during the 1977/78 marketing year, and had invoked pleas of force majeure. Despite the apparent reasonableness of the requests and the countries' insistence that they had complied with the formal consultation procedures, the Commission, after deliberations lasting longer than the agreed 20-day limit, finally informed them that in one of the cases was the Community satisfied that the circumstances fell within the agreed criteria for "force majeure". As a result, the ACP sugar-producing States were to forfeit a further 15 482 tonnes of export sugar - 801 tonnes had previously been conceded by Suriname.
Thirdly, with regard to the reallocation of the 801 tonnes, the ACP decided to transmit to the Community their views regarding the method of reallocation a the earliest possible date and formally conveyed to the Community their desire to have such reallocation take place with effect from 1 July 1977.
Fourth, there is the outstanding issue of Zambia's application for a quota of 15 000 tonnes under the Protocol. The Community had rejected this application on grounds which suggested that the already surplus sugar situation in the Community was the direct effect of ACP sugar imports and that the granting of Zambia's request would further aggravate the situation.
The ACP disagreed with this view and invited the Community to reconsider its position on this issue in the light of Zambia's urgent need to increase its foreign exchange earnings.
Finally, the ACP is still concerned with the absence of proper negotiations for the price of ACP sugar for two consecutive years, and is also monitoring the developments related to the proposed agro-monetary measures to be adopted by the Community.
RUM
The Council noted with grave concern the regular yearly fall, now amounting to about 15%, of ACP rum exports to the EEC despite provision having been made in the Protocol for an annual growth rate of 40% for the UK market and 13% for other Community markets.
The Council is also disturbed by the consequences of the recent judgement given by the Court of Justice of the European Communities whereby the rules and regulajtions of the EEC are equally applicable overseas departments and territories. In view of this decision, the Community is committed to state explicitly in the Convention any provisions which would be considered as derogations from these rules and regulations.
The Council invites ACP rum-exporting States to examine carefully the legal aspects of this measure, and to assess the effects it will have, particularly on the rum Protocol.
B. CUSTOMS COOPERATION
The Council took note of the draft report of the Joint Committee on Customs Cooperation and the draft decision concerning Mauritius' request for a derogation from the rules of origin in respect of canned tuna; this request had been supported by the ACP Committee of Ambassadors [Documents ACP/EEC/2112/79, ACP/EEC/2115/79 and ACP/215/79 (Sec.Cust.].
The Council renewed its appeal to those ACP States which have not already done so, to supply the EEC with specimen Customs stamps, in accordance with the requirements of Protocol N° 1 of the Lomé Convention.
C. STABEX
The Council noted the draft decision relating to the Solomon Islands' and Tuvalu's request to benefit from the derogation provided for in Article 17.4 of the Lomé Convention, enabling the STABEX system to be applied, in certain cases, to all exports, irrespective of destination.
The Council also took note of the conclusion of the good offices procedure recommended by the ACP/EEC Council of Ministers on 13 and 14 March 1978, for solving the problem of transfers requested by Gabon, Kenya and Mali in respect of the 1975 financial year.
The Council also agreed to support Uganda's request relating to transfers under the STABEX, in respect of its cotton exports in 1977.
Concerning the ACP requests for the inclusion of new products - in particular, sesame seeds, sisal products, raw tobacco and cashew kernels - the Council noted that sesame seeds were to be included in the Stabex system from 1 January 1979, and that the other requests would be examined by the Commission. However, the ACP urge that the decision on the inclusion of sesame take retroactive effect from 1 January 1978 rather than 1 January 1979, since the ACP request dated from 1977. The Committee of Ambassadors has been instructed to examine this question.
The Council also hoped that these requests could be considered as quickly as possible and in any case before the expiry of the present Convention.
D. FINANCIAL AND TECHNICAL COOPERATION
One year before the end of the Lomé Convention, the ACP are concerned at the following:
- the low level of the total commitments of the 4th EDF compared with the total funds earmarked for financial and technical cooperation (on 31 January 1979, commitments only amounted to about 50% of the funds set aside);
- the very low level of actual payments compared with the total funds earmarked for financial and technical assistance (on 31 January 1979, these actual payments amounted to about 17.6% of the total funds set aside); and, as a result
- the large gab between total commitments and actual payments on 31 January 1979.
Examination of the Annual Report of the Commission on the Administration of Financial and Technical Cooperation
The Council gave a mandate to the ACP Committee of Ambassadors to examine this report and those of 1976 and 1977 jointly with the EEC Committee of Ambassadors, in April 1979.
Draft decision concerning the tax and customs arrangements applicable in ACP States to contracts financed by the EEC
[Docs. ACP/EEC/2125/79 - ACP/229 (Secr.]
The Council emphasized the opportunity which existed for solving this problem finally during the current session of the ACP/EEC Council of Ministers.
Situation regarding the general conditions for contracts financed by the EDF (work, service and supply contracts)
[Docs. ACP/EEC/50/78 - ACP/EEC/76/78]
The Council took note of the decision, reached by the ACP/EEC Committee of Ambassadors on 7 March 1979, to approve the procedures for examining the draft general conditions for works, service and supply contracts which the EEC had sent to the ACP.
Addition of certain ACP States to the list in Article 48 of the Lomé Convention (Djibouti, Solomon Islands, Sao Tomé and Principe, Cape Verde, Tuvalu and Dominica) EEC's proposal [Doc. ACP/EEC/2126/79]
The Council ratified the Agreement in principle reached by the EEC and the ACP Committee of Ambassadors, during their Plenary session on 7 March 1979, to include the seven above-mentioned ACP countries in the list in Article 48 of the Lomé Convention.
E. REGIONAL COOPERATION
First Instalment
The Council also noted:
- Distribution of the 1st Instalment of the Regional Fund, for which a total allocation of 207.8 million EUA were earmarked:
- Africa 147.8 million EUA, or 71%
- Pacific 10 million EUA, or 5%
- Caribbean 30 million EUA, or 14%
- General projects 20 million EUA, or 10%
The Council noted with grave concern that out of the total volume of financing which was programmed, the EEC had only committed 80.22 million EUA, or 39%.
2nd Instalment
The Council also noted that, out of the second instalment, totalling 80 million EUA, about 40% has been earmarked for projects which are still in the study stage, and for much of the remainder, most projects have not yet undergone preinvestment studies.
In view of the provisions of Article 2 of Protocol N° 2, which authorize the EEC to withdraw any amount not committed or used and make it available for financing other schemes upon expiry of the Convention now in force, the Council underlined its strong concern over regional development projects, work on which might have to be interrupted following a possible Community decision. The Council therefore launched an appeal for the implementation of Protocol N° 2 on Regional Cooperation to be accelerated.
In addition, the Council gave its full support to the project aimed at promoting sales of ACP cotton and cotton goods on EEC markets. The Community, however, does not wish to approve the financing for this project. The Council felt that this would be a very important project for ACP cotton-producing States and gave its assurances that expenditure of the sum requested would be strictly controlled by the ACP Group.
As regards the introduction of requests made by the General Secretariat of the Group on behalf of the whole ACP Group, the Council pointed out that the Secretariat acts on behalf of and on instructions by the whole Group. Thus, any steps taken by the Secretariat with the EEC, in the framework of regional projects or operations, were in accordance with the spirit of Article 40 of the Lomé Convention.
F. LEAST DEVELOPED, LANDLOCKED AND ISLAND ACP COUNTRIES
The Council was concerned at the lack of progress made since the Ministerial Council held on 21 December 1978. It requested the Community to reply to the ACP Memorandum concerning concrete measures to be taken immediately in order to assist the Least Developed, Landlocked and Island ACP Countries [Doc. ACP/168/78 (Secr.PMD.AMB) Rev.1].
G. INDUSTRIAL COOPERATION
The Council:
The Council took note of the proceedings of the Consultative Assembly's Joint Committee meeting which was held in Bordeaux from 29 January to 4 February 1979.
The following resolutions were passed:
Dominica
The Council noted that Dominica had deposited its instrument of accession with the Secretariat of the EEC Council on 26 February 1979.
Saint Lucia
The Council approved Saint Lucia's request for accession to the Lomé Convention, with the understanding that this country will also accede to the Georgetown Agreement.
J. REQUEST TO PARTICIPATE AS AN OBSERVER IN THE NEGOTIATIONS FOR THE SUCCESSOR ARRANGEMENTS TO THE LOME CONVENTION
The Council granted observer-status to Mozambique for the negotiations.
PART II
INTRA-ACP COOPERATION
a. Short-term measures for Intra-ACP Cooperation
The Council noted the progress made in the discussions in the Subcommittee on Intra-ACP Cooperation on short-term measures concerning:
- the Intra-ACP Seminar on Education research and training;
- the Scholarship-Exchange programme;
- the programme for the exchange of literature among the ACP countries.
Concerning the two latter projects, the Council invited the Member States of the ACP Group to reply as soon as possible to the letters which the Secretariat had sent out asking for information, in order that these two programmes could be set up.
b. Intra-ACP Trade Cooperation
The Council noted the preparations made to date concerning the proposal to hold a Conference on Trade Cooperation this year, particularly the discussions as to where it should be held and how much it would cost.
c. Intra-ACP Cooperation on Transport and Communications
I. Code of Conduct for Liner Conferences
The Council urgently requested all Member States which had not done so to take the necessary steps to ratify, before the 5 April 1979 deadline, the Convention relating to the Code of Conduct for Liner Conferences.
The Council will use the Freeport ACP/EEC Ministerial Council to exert political pressure on the EEC to reach a speedy decision supporting the ratification of the said Convention.
ii. Transport
The Council requested the Member States to provide the necessary information on the projected immediate opening of regular and appropriate air services within and between the ACP States.
d. ACP Trade and Investment Bank
The Council noted that the United Nations' Working Group instructed to study this project held its fourth and last working session at ACP House in Brussels from 26 February to 2 March 1979, and that the final report would be ready in two months.
e. Miscellaneous
The Council took note of the other Intra-ACP Cooperation projects, concerning the Intra-ACP Development Fund (for financing promotional activities) and the ACP Payments Union (for facilitating Intra-ACP trade).
PART III
INTERNAL ACP MATTERS
A. Implementation of decisions relating to Staff Structure of the ACP Secretariat
THE ACP COUNCIL OF MINISTERS,
in recognizing the need for periodic adjustments to be made from time to time in the staff structure of the ACP General Secretariat, and recalling its earlier mandate given in December, 1978 to the Committee of Ambassadors in this regard,
MANDATES the Committee of Ambassadors:
To examine such proposals as may be submitted by the Secretariat for certain necessary adjustments to the Staff Structure and to submit its recommendations to the next Council of Ministers' Meeting.
DONE at Freeport, 21st March, 1979.
For Council of Ministers,
H. E. Michael ANCHOUEY
President of the ACP Council of Ministers
B. Review of the Salaries and Conditions of Service of the Secretary-General and Deputy Secretary-General of the ACP Secretariat
THE ACP COUNCIL OF MINISTERS,
RECALLING its mandate to the Committee of Ambassadors regarding the question of providing domestic help for the residences of the Secretary-General and the Deputy Secretary-General,
REQUESTS the Committee of Ambassadors:
To take this question into account when reviewing the terms and condition of service of the posts of Secretary-General and the Deputy Secretary-General of the ACP General Secretariat on the expiry of the present contracts of the Secretary-General and the Deputy Secretary-General.
DONE at Freeport, 21st March, 1979.
For Council of Ministers,
H. E. Michael ANCHOUEY
President of the ACP Council of Ministers
C. HOUSING ALLOWANCES FOR CATEGORY C STAFF
The Council approved the recommendation not to allow Staff in Category C to qualify for a housing allowance.
D. PENSION FUNDS AND TERMINATION BENEFITS FOR THE STAFF OF THE ACP GENERAL SECRETARIAT
THE ACP COUNCIL OF MINISTERS,
RECALLING its mandate in December, 1978 to the Committee of Ambassadors to study the question of pension funds and termination benefits to the Staff of the ACP General Secretariat,
NOTING that the establishment of a permanent pension fund is not presently feasible,
MANDATES the Committee of Ambassadors:
To submit to the next Ministerial Council an appropriate gratuity scheme in lieu of a pension fund for staff of the ACP General Secretariat.
DONE at Freeport, 21st March, 1979.
For Council of Ministers,
H. E. Michael ANCHOUEY
President of the ACP Council of Ministers
G. CATEGORIZATION OF FOUR NEW MEMBER STATES FOR THE PURPOSE OF CONTRIBUTION TO THE BUDGET OF THE ACP SECRETARIAT
THE ACP COUNCIL OF MINISTERS,
NOTING the recommendations of the ACP Committee of Ambassadors regarding the categorization of four new Member States for purposes of contribution to the Budget of the ACP General Secretariat,
DECIDES:
1. That Dominica, Solomon Islands and Tuvalu be placed in Category A and Djibouti in Category B,
2. That in view of Tuvalu's population size and economic indicators, Tuvalu may pay only 50% of the normal contributions due from Category A countries, should it so request,
3. That appropriate adjustments be made to the quantum of contributions due from each Member State for the 1979 Budget of the ACP Secretariat.
DONE at Freeport, 21st March, 1979.
For Council of Ministers,
H. E. Michael ANCHOUEY
President of the ACP Council of Ministers
H. RECATEGORIZATION OF THE SEYCHELLES FOR THE PURPOSE OF CONTRIBUTION TO THE BUDGET OF THE ACP SECRETARIAT
THE ACP COUNCIL OF MINISTERS,
NOTING the request from Seychelles for recategorization from Category B to Category A for purposes of contribution to the Budget of the ACP Secretariat and further noting the Committee of Ambassadors' recommendations in this regard,
DECIDES:
1. That Seychelles be transferred from Category B to Category A.
2. That such recategorization be effective from January 1, 1979.
3. That appropriate adjustments be made to the quantum of contributions due from each Member State for the 1979 budget of the ACP Secretariat.
DONE at Freeport, 21st March, 1979.
For Council of Ministers,
H. E. Michael ANCHOUEY
President of the ACP Council of Ministers
I. ANNUAL REPAYMENT OF THE ACP HOUSE BUILDING LOAN
THE ACP COUNCIL OF MINISTERS,
NOTING with concern:
That 12 countries are yet to pay BF 1 708 000 towards the first annual repayment of the ACP House Loan which was due on June 30, 1978 and subsequently deferred to December, 31st 1978,
URGENTLY CALLS UPON these Member States to pay their share of the Loan repayment as soon as possible.
DONE at Freeport, 21st March, 1979.
For Council of Ministers,
H. E. Michael ANCHOUEY
President of the ACP Council of Ministers
J. REGISTRATION OF THE GEORGETOWN AGREEMENT WITH THE SECRETARIAT OF THE UNO
The Council approved the steps taken by the Government of Jamaica to register the Georgetown Agreement with the Secretariat of the UNO, given that no ACP State had previously done so.
Registration is required under Article 102 of UN Charter.
K. THE ACP GROUP's REQUEST FOR OBSERVER AT THE UNO GENERAL ASSEMBLY
In agreement with the Committee of Ambassadors, the Council feels that, considering the precarious financial situation of the ACP Group, it is not absolutely necessary to try to obtain observer status in bodies whose activities have no relation to those of the ACP Group itself.
MISCELLANEOUS
The Council noted the visits made by the following dignitaries:
I. H. E. Mr Henri MAIDOU, Prime Minister of the Central African Empire, who visited the Committee of Ambassadors on 22 January 1979;
ii. The Secretary of State for Foreign Affairs of Botswana, who visited the Secretary-General of the ACP Group at the beginning of February 1979;
iii. H. E. Mr Luiz CABRAL, President of the Council of State of the Republic of Guinea-Bissau, who visited the Committee of Ambassadors on 14 March 1979.
The Council also noted the visit made on 26 February 1979 by the President of the ACP Council of Ministers, H. E. Mr Michel ANCHOUEY, Gabonese Minister for Planning, accompanied by the Chairman of the ACP Committee of Ambassadors, the Ambassador to Brussels of the Gabonese Republic and the Secretary-General of the ACP Group. This visit was to the President of the EEC Council of Ministers, Mr François PONCET, Minister for Foreign Affairs of the French Republic.
Finally, the Council noted the exchange of views which took place on 8 March 1979 in Paris between the Chairman of the ACP Committee of Ambassadors,
H. E. Ambassador D.B. RAINFORD of Jamaica, accompanied by ACP Representatives, and Mr Pierre BERNARD-RAYMOND, French State Secretary for Foreign Affairs.
1. In 1977, ACP textiles exports represented a mere 0.45% of their total exports to the EEC, while the latter shipped more than three times as many textiles to the ACP.