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			SUMMARY RECORD OF THE 55TH MEETING OF THE  COUNCIL OF ACP MINISTERS  (Brussels, 24TH TO 26TH NOVEMBER 1992) Ref: ACP/25/018/92 AMS/sac Brussels, 8 February 1993

SUMMARY RECORD

OF THE 55TH SESSION OF THE ACP COUNCIL OF MINISTERS

HELD FROM 24TH TO 26TH NOVEMBER 1992

AT ACP HOUSE, BRUSSELS

OPENING CEREMONY

The opening ceremony of the 55th Session of the ACP Council of Ministers was presided over by Hon. TUILAEPA SAILELE MALIELEGAO, Minister of Finance of Western Samoa and President-in-Office of the ACP Council of Ministers.

Making his opening remarks, the President, first of all, expressed his sincere gratitude to Council for the trust and honour bestowed on him and, through him, on his country and region, in electing him to head the ACP Group. He gave assurances that he would do all he could as President to justify the confidence place in him.

Continuing his remarks, the President reminded Council that it would be called upon to consider and adopt the draft budget of the General Secretariat for 1993. In that regard he drew Council's attention to the extremely precarious financial situation of the ACP Secretariat.

The President indicated that without proper funding, the Secretariat simply could not play its full part in helping the Group meet the challenges that lay ahead. He therefore hoped that Council would take the necessary lead in finding solutions.

The President noted with satisfaction that the Committee of Ambassadors had completed the difficult mandate of reviewing the Georgetown Agreement. He urged Council to do all in its power to ensure that the exercise was successfully and satisfactorily completed.

Finally, the President singled out for special mention, the item on the exchange of views on ACP-EEC future relations and he expressed the hope that the timely discussion on that subject would provide the Committee of Ambassadors with the necessary direction and guidance on how the ACP Group should prepare itself to meet the challenge ahead.

Council's proceedings

• Adoption of the agence [ACP/25/010/92 Rev.3]

• Appointment of the Rapporteur ad Friends of the Rapporteur

Council agreed to the appointment of the countries listed below as "Friends of the Rapporteur."

Central Africa : CAMEROON

East Africa : KENYA

West Africa : THE GAMBIA

Caribbean : SURINAME

Pacific : FIJI

• Approval of the draft summary record of the 54th Session held in May 1992, in Kingston, Jamaica [ACP/25/009/92]

He thanked the Friends of the Rapporteur for having helped to finalise the first draft submitted by the Secretariat. He also thanked the latter for preparing a first draft which assisted in finalizing the records. Having made those remarks, the Rapporteur commended the draft summary record for approval by Council.

Council considered and adopted the draft summary record of its 54th Session held in Kingston, Jamaica in May 1992.

• Communication from the President

• Candidature of Ambassador CAMARA of Guinea to the Post of Director of the Bureau of International Telecommunications Union in Geneva. The President said he had received a communication from the Government of Guinea through its Mission in Brussels, informing him that it had submitted the candidature of H. E. Mr Mamadou Bobo CAMARA, Ambassador and Head of Delegation of the Republic of Guinea, to the Post of Director of the Bureau of International Telecommunications Union in Geneva.

At its 53rd Meeting, the Committee was informed that Ambassador CAMARA was the only candidate to the post from an ACP country. On that occasion, the Committee of Ambassadors:

- renewed its support for the candidature both collectively as a Group and individually as States; and

- advised that Council give its support to the candidature.

He had been further advised that the matter was urgent as the Conference of Plenipotentiaries which would make the appointment had been scheduled from 7 to 23 December 1992.

Council's Bureau had considered the request and had agreed to recommend that Council give its support to the candidature with an appropriate recommendation or decision.

Council adopted a resolution expressing its unanimous support, collective as well as individual, of the ACP Group and its members for the candidature of H. E. Mr Mamadou Bobo CAMARA. It also called upon the Governments of the ACP States to give the relevant directives to their respective delegations to the Additional Conference of Plenipotentiaries of ITU, in December 1992.

Council further called upon the Group of ACP Ambassadors to Geneva to strive effectively to ensure the election of Ambassador CAMARA.

The Head of delegation of Guinea thanked Council on behalf of his Government and on his own behalf for the show of solidarity and support for the candidate of Guinea.

• Sudden demise of Mr Pascal NZE, Minister of Planning and Economy of Gabon

The President recalled that the late Pascal NZE was a veteran of ACP-EEC matters: he had been responsible in his country for ACP matters since 1980. He was also President of Council and Ministerial spokesman in charge of Commodities, Stabex and Sysmin during the negotiations which led to the signing of the current Convention.

Council observed a minute's silence in memory of Minister NZE.

The Head of delegation of Gabon thanked Council for the kind words said about the late Pascal NZE and also for the sympathy extended to the Government and people of Gabon as well as the family of the deceased.

Format of Joint Ministerial Meetings

President recalled that at the Ministerial Session held in Kingston in May 1992, Council expressed the wish that the format of the present ACP-EEC Ministerial Meetings be reviewed and improved upon, to allow greater participation of Ministers from both sides in the deliberations. An attempt at that greater participation had been made with the interventions of Ministers - other than the two Co-Presidents - during the exchange of views under "C" items at the Joint Council Session in Kingston, Jamaica.

The Secretariat had been in touch with its counterpart at the European Council and the matter was being pursued. It was expected that proposals would be made by the Committee of Ambassadors for consideration and implementation in time for the Joint Ministerial Session scheduled for May 1993.

Council took note of the President's communication.

• Consideration of the report of the Committee of Ambassadors to the 55th Session of Council [ACP/26/099/92 Rev.1]
• Consideration of the draft budget of the Secretariat for 1993 [ACP/45/024/92 Rev.2]

- Financial controller's report [ACP/45/033/92 Rev.1];

- Audit reports for 1990 and 1991 [ACP/45/042/91; ACP/45/012/92; ACP/45/037/92 and ACP/45/036/92];

- Secretary General's report on the implementation of the budget [ACP/45/030/92 and ACP/45/029/92];

- Financial situation of the Secretariat [ACP/45/040/92 and ACP/45/039/92;

- Situation of the Reserve Fund [ACP/45/041/92].

• Report on the Implementation of Council's decision

- Decision N° 2/LIV/92: Structure, functioning and conditions of service of the ACP General Secretariat Staff

- Decision N° 3/LV/92: Conditions of service of the Deputy Secretary General

- Decision N° 4/LV/92: Freezing of certain posts provided for under the 1992 Budget.

Having agreed to deal with items 5, 6 and 7 together and after hearing the presentation of the activity report by the Chairman-in-Office of the Committee of Ambassadors, H. E. Mr A. F. TOLEAFOA, Ambassador of Western Samoa, Council went through the report item by item. Below is a summary of the deliberations on those items:

PART I: ACP INTERNAL MATTERS

• Financial situation of the Secretariat

Council observed that the application of sanctions in 1992 against States in arrears of contribution had not yielded as much positive results as the previous year. It expressed concern about the high overdraft incurred by the Secretariat which, for that reason, had not been able to implement earlier decision to, among others, liquidate staff entitlements under the old termination benefit scheme.

To overcome the persistent difficult financial situation Council renewed its mandate to the Chairman of the Committee of Ambassadors to apply sanctions against Member States in arrears of contribution to the Secretariat's budget and it requested him to report on the implementation of that decision at the following Ministerial Session.

Finally, Council appealed again to countries to pay up their contributions and arrears so as to avoid sanctions and also to enable the Secretariat to function smoothly.

• Requested by Liberia for exemption from contribution and appeal from Ministers for Somalia to be exempted from Contribution:

- sanctions in respect of Liberia and Somalia be waived until the following Ministerial Session;

- the arrears of contribution for 1990 and 1991 as well as the accumulated interested owed by Liberia be written off. Liberia should, however, pay its contributions for 1988 and 1989 with the accumulated interest relating to those years;

- both countries be exempted from payment of contributions to the Secretariat's 1993 budget.

• External auditor's report for 1990 and 1991 and the appointment of auditors to audit the 1992 accounts of the Secretariat:

Council approved the auditors' reports on the Secretariat's account for 1990 and 1991 and it directed that the auditors' recommendations set out in the management letter be implemented. Council accorded a valid discharge to the Authorizing Officer for those 2 years.

With respect to the auditing of the 1992 accounts, Council decided to appoint the firm KPMG Peat Marwick to undertake take exercise.

Review of the categorization of the ACP Member States as regards their contribution to the ACP Secretariat's budget

Council gave mandate to the Committee of Ambassadors and the Secretary General to finalize the negotiations for funding and to commission the study as soon as possible. It further requested that a report on the subject be made to Council at its following session.

Assessment of the staff position of the ACP General Secretariat and situation of the Temporary Staff currently serving in the Secretariat

Council reviewed the staff position in the context of the parlous financial situation of the Secretariat and decided:

- to extend the mandate of the Committee of Ambassadors to go ahead with the assessment of the staff position of the Secretariat;

- to instruct the Committee of Ambassadors to draw up the terms of reference of the assessment, which exercise should be carried out not later than 31 March 1993, and the conclusion thereof should be implemented and a report be submitted to the following Council Session;

- to authorize the Secretary General to extend the contracts of and/or recruit temporary staff, if the need arose for a period not exceeding six months in order to ensure the smooth running of the Secretariat.

• Finance, Administration and Institutional matters and conditions of service of the ACP General Secretariat

• Deputy Secretary General

After discussion, Council decided that the Deputy Secretary General, on official mission, should travel on Business or its equivalent and it directed that the Staff Regulations be amended accordingly.

• Review of Daily Subsistence Allowance when on Mission

• Establishment of an allowance to supplement the Pension Scheme

Council took note and instructed the Committee of Ambassadors to complete its work and apply whatever conclusion it might reach concerning the establishment of the severance allowance to supplement the Pension Scheme. The Committee was further requested to report at the next Council Session on the implementation of the mandate.

• Liquidation of staff entitlements under the Old Termination Benefits Scheme.

a. the liquidity situation of the Secretariat could not sustain the payment of the second tranche;

b. the Commission refused to refund the sums paid to staff under EDF, considering that the payment fell outside the scope of the existing financial agreement.

In view of those difficulties, the Committee of Ambassadors requested Council to reconsider its previous decision on the subject.

Having considered the Committee of Ambassadors report and proposal, Council decided that the termination benefits as established on 31 December 1988 be updated and settled at the time of the definitive departure from the ACP General Secretariat of the staff concerned. The basis of the updating should be examined by the Committee of Ambassadors and its decision referred to Council at its next Session.

• Re-classification of the linguistic staff

• Headquarters Agreement: The institution of a system of internal taxation on staff emoluments

Council took note of the report and mandated the Committee of Ambassadors to examine and adopt the Secretariat's proposed internal taxation on Staff Emoluments.

• The ACP General Secretariat's 1993 Budget [ACP/45/024/92]

- the amount of the ACP General Secretariat's 1993 Budget be fixed at BF 234 535 000;

- the budget should be financed as followed:

- Member States contribution BF 122 410 000

- EDF contribution BF 109 126 000

- Reserve Fund BF 2 845 000

- Hiring of ACP House BF 154 000

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- Total BF 234 535 000

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PART II: ACP-EEC COOPERATION

Council took note of the development reported on the various areas of the ACP-EEC Cooperation, as requested by the Committee of Ambassadors.

Regarding the areas covered by Ministerial Committees, reports treating those areas are found under item 8 below.

Council made observations and recommendations on some specific areas as summarized hereunder.

LEAST DEVELOPED, LANDLOCKED AND ISLAND COUNTRIES [LDLICs]

• The issue of Stabex transfers for LDLICs:

Council held the view that the issue of transfer base should be addressed in the context of the mid-term review of the Financial Protocol of the Lomé IV Convention. In that regard, Council requested that the terms of reference of the Commission's intended study on Stabex should cover the provisions governing the LDLICs under Lomé IV.

In the meantime, Council requested also that special measure be taken to ensure that additional resources were allocated to this category of countries and that they should also be granted full Stabex transfers to which they were entitled.

• ACP-EEC Subcommittee on LDLICs

• LDLICs and the Debt question

Council also appealed to the EC Commission and the EC Member States to adopt a coherent method for structural adjustment. Such an independent ACP-EEC approach to structural adjustment elaborated through dialogue between the two sides, it is hoped, could influence the decisions of the international financial institutions and also help forestall some of the problems encountered by ACP countries in implementing the structural adjustment programme itself.

PART II: INTRA-ACP COOPERATION

Council observed that little attention had been paid to this area of cooperation in spite of the various declarations and programmes of action adopted by the ACP Group. This meant of course that the ACP countries were not exploiting their strength and other potentials for the benefit of developing notably intra-ACP trade and cultural exchange between Member States. Council launched an appeal to ACP countries to devote more attention to Intra-ACP Cooperation.

i. Study on Intra-ACP Trade Flows

Council took note of the progress report on the study on Intra-ACP Trade Flows. It instructed the Committee of Ambassadors to follow-up the recommendation for the establishment of a unit for the exchange of information on Intra-ACP trade as well as for the development of Intra-ACP Trade.

ii. The Charles Katungi Training Project

Council recalled that at its 54th Session, it had invited ACP States to submit a list of ACP Universities and Institutions of Higher Learning interested in participating in the Project. It expressed some concern that only 4 (four) ACP States - Benin, Congo, Guyana and Uganda - gave information as requested.

Council urged the other ACP countries to respond positively to the invitation.

Council also referred to the numerous ACP institutes and training schools and the problems of financing that most of them were confronted with. In that regard, it indicated that there was need for the elaboration of a plan for the reinforcement of ACP institutions of higher learning.

In the meantime, the ACP States could explore other means through which they could increase the exploitation of the potential of the universities and other institutions of higher learning. In that regard, the Ministers proposed, among others, that the ACP approach the EEC for the transfer of some of the awards tenable in Europe to ACP universities and other institutions of learning. Council stressed the advantages of ACP students pursuing their education in their own socio-cultural environment.

• Consideration of report from the Ministerial Committees

• COMMODITIES [ACP/67/080/92]

Having adopted the report, Council considered and approved the request by the Ministerial Committee to set aside five hundred thousand Belgian Francs in the 1993 Budget for undertaking Ministerial lobbying mission in the field of Commodities in selected EC capitals.

• SUGAR [ACP/63/061/92]

Council also adopted the resolution on sugar, calling on the Community:

• to refrain from adopting in the framework of GATT and in the next sugar regime or further reform of the CAP measures which would affect the guarantees given in the Sugar Protocol;
• to ensure the maintenance of a stable level of income to the ACP States for their sugar exports to the Community and devise towards that end appropriate mechanisms were it to adopt restrictive measures in the context of the GATT and CAP;
• to accelerate the process of disbursement of the final tranche of the marketing premium;
• to ensure that appropriate measures are taken to alleviate the heavy burden of transport costs, once the recommendations and funding of the study on transport costs are known;
• to favourably examine the ACP request in the context of increased preferential access to the EC market including Portugal as tabled at the consultations meeting with the EC as provided for under Annex XXVIII.

• BANANAS [ACP/67/081/92]

Council also adopted a resolution:

- calling on the Community to give the necessary mandates to the Commission services to proceed with the required negotiations for obtaining a waiver on bananas under Article XXV (5) of the GATT rules;

- urging the Commission to continue the process of effective consultations with the ACP in respect of establishing a special system of assistance to traditional suppliers of bananas;

- appealing to the EC Council to take fully into account the ACP's comments and observations, when examining and adopting the Commission's proposals so as to maintain the present market share between ACP and EC producers on the one hand and third country suppliers on the other and to ensure a remunerative level of income to ACP and EC producers;

- exhorting the individual EC Member States to support the Commission proposals for the establishment of rules for the management of market by 1 January 1993 necessary for the proper implementation of the obligations of the Community and the Member States in respect of traditional ACP banana supplying States in the context of the Single Market and to resist vigorously the efforts of non-ACP and non-EC banana interests aimed at undermining the position of the ACP and EC on the market.

Council also called on the European Parliament to take into account the ACP's observations and findings on the Commission's proposals when deliberating on them.

Finally, Council requested ACP States, Contracting Parties to the GATT, to give support to the Commission's request for a waiver under GATT.

• Consideration of the Committee of Ambassadors' proposals for the review of the Georgetown Agreement [ACP/27/024/92 Rev.2]

Council thanked the Ambassadors for having reached a consensus on an item over which much time had been devoted in the past. It then proceeded to consider the proposals submitted by the Committee.

Having failed to reach a consensus on some aspects of the proposals, Council set up a Ministerial ad hoc Group to iron out the outstanding divergences on articles 7, 10 and 20 and submit proposals before the end of the Session. The ad hoc Ministerial Group comprised the following countries:

- Central Africa : CAMEROON

- East Africa : MAURITIUS

- Southern Africa : ZIMBABWE

- West Africa : BURKINA FASO

- Caribbean : JAMAICA

- Pacific : FIJI (Chairman)

As the Chairman of the Ministerial ad hoc Group was indisposed, the Honourable Minister from Jamaica presented the proposals which are set out in document ACP/27/024/92 Rev.5, with the annex spelling out the system of rotation.

After an exchange of views Council adopted the proposals and it mandated the Committee of Ambassadors to finalize the text. Council also requested the Committee to examine the proposals for the convening from time to time, of an ACP Summit and submit its findings for consideration.

• Consideration of resolution adopted by the Joint Assembly meeting and referred to Council [ACP/23/036/92]

• Exchange of views on the situation in:

- Somalia

- Liberia

- Haiti

- Other countries.

Introducing this item, the President recalled that with respect to the situation in Southern Africa, Council had an established tradition of asking a spokesman for the region to introduce the subject.

With regard to Somalia, he indicated that following an agreement between the ACP-EEC Committee of Ambassadors, a proposal had been forwarded to Council on the implementation of Somalia's indicative programme.

As for Haiti and Liberia, the exchange of views on the situation in those countries, as well as in Somalia during the consideration of the budget proposal for the Secretariat for 1993, had led to the adoption of a decision regarding their contributions. The President pointed out that the problems faced by those countries were not limited to financial matters.

Following the President's introductory remarks, the Ministerial Spokesperson of the region of Southern Africa, Hon. Dr. G.K.T. CHIEPE, Minister of Foreign Affairs of Botswana, gave an update on the latest developments in that region.

In its exchange of views on the situation in South and Southern Africa, Council re-affirmed its total commitment to a new democratic, constitutional and non-racial ordered founded on the principle of "one person, one vote" in South African, the immediate establishment of an interim government, the release of political prisoners and the full implementation of the provisions of the national peace accord reached on 14th September 1991.

Council welcomed the efforts of the Governments of Angola and Mozambique aimed at achieving democracy, national reconciliation and peace in their respective countries.

With regard to the issue of Walvis Bay (Namibia), Council stressed once again that the enclave and the off-shore islands were an integral part of Namibia, and to that effect it welcomed the establishment of the agreed joint administration authority over them.

Council mentioned, with great concern, the depressing effects of the severe drought afflicting the region. While appreciating the contribution by the European Community towards the alleviation of its devastating effects, Council appealed for further assistance to boost the efforts of the countries of the region in their fight against the effects of drought.

Regarding the situation in Somalia and Liberia, Council deplored the violence

resulting in loss of life and property. It commended and gave its support to efforts made by the respective regions of the two countries in order to bring about peace, national reconciliation and stability, and those neighbouring sister ACP States that continued to host refugees from the two countries.

With respect to Somalia, Council considered and approved the proposal by the ACP-EEC Committee of Ambassadors on the application of flexible criteria for aid allocation to that country. Specially, Council endorsed the provisional utilization of the resources available for Somalia under the National Indicative Programme within the framework of the 2nd and 3rd Lomé Conventions for financing emergency actions.

Further, Council appealed to the EC and the international community to increase their aid to the two countries in order to put an end to the war situation and enable reconstruction work to start. It also called on the international community, notably the EC to give support to the efforts made by countries of the two regions concerned bearing in mind that they were making those efforts at the cost of national sacrifice, given the difficult economic difficulties confronting those States individually and collectively.

Finally, Council heard a brief on the latest developments in Haiti. Council was told that efforts were undertaken for the complete isolation of that country: its assets were frozen, bilateral aid suspended and the UN had just adopted a resolution condemning the coup d'état which ousted the legally elected President, Father Jean-Bertrand Aristide, and considering as unacceptable the prevailing situation.

Council was told that the situation of violence and insecurity was causing Haitians to flee their country, but unfortunately they were forcibly repatriated to their country.

A delegation of the ACP-EEC Joint Assembly Bureau would shortly be visiting that country and the hope was expressed that the findings of that delegation would shed more light on the situation prevailing in Haiti and thereby help efforts to isolate the regime in place and force it to restore constitutional legitimacy.

Having taken note of the report, Council reiterated its support for the international, regional efforts, as well as the efforts of the people of Haiti to restore democracy.

• Consideration of the Committee of Ambassadors' report on future ACP-EEC relations [ACP/27/025/92 Rev.1]

Human Rights and Democracy

Council also advised that assistance should be sought in the framework of the ACP-EEC Cooperation for supporting the new emerging democracies in ACP countries.

Council welcomed the proposal that the ACP-EEC Council of Ministers should agree to a joint consultations mechanism for the verification of allegations of breaches of human rights.

• Investment

- the strengthening of national investment, production and trade capabilities in order to enlarge domestic markets in an integrated regional and subregional network;

- devoting greater attention to the role of the ACP private sector and informal sectors and national operators;

- the maintenance of Lomé preferences for ACP commodities and the triggering off of certain provisions of the Convention to finance PMDT (Processing, marketing, distribution and transport).

• Debt and Structural Adjustment

- short-term and long-term socio-economic objectives;

- environment and adjustment; and

- development of new technologies in connection with upgrading rural traditional technologies.

Finally, Council thanked the Committee of Ambassadors for initiating at an early stage, reflections on future ACP-EEC relations and requested it to pursue the reflection and, where necessary, seek external assistance for the preparation of studies.

• Designation of the Members of the Ministerial Bureau [ACP/549/79 Rev.21]

- Central Africa : BURUNDI

- East Africa : TANZANIA (President)

- Southern Africa : BOTSWANA

- West Africa : GUINEA

- Caribbean : ANTIGUA AND BARBUDA

- Pacific : PAPUA NEW GUINEA

• Date and venue of the next meeting of the ACP Council of Ministers

• Outcome of the 55th ACP Council of Ministers

• Decisions

Decision N° 1/LV/92: The ACP General Secretariat's 1993 Budget

Decision N° 2/LV/92: Arrears of contributions and Financial situation

Decision N° 3/LV/92: External Auditors' reports for 1990 and 1991

Decision N° 4/LV/92: Review of the categorization of ACP Member States as regards their contributions to the ACP Secretariat's budget.

Decision N° 5/LV/92: Review of the daily subsistence allowance when on mission

Decision N°6/LV/92: Appointment of external auditors

Decision N° 7/LV/92: Headquarters Agreement

Decision N° 8/LV/92: Conditions of service of the Deputy Secretary General

Decision N° 9/LV/92: General assessment of the Staff position of the ACP General Secretariat

Decision N° 10/LV/92: Allowance to supplement the pension scheme

Decision N° 11/LV/92: Re-classification of the Linguistic Staff

Decision N° 12/LV/92: Termination benefits *

Referred to the Committee of Ambassadors for finalization:

Decision N° /LV/92: Review of the Georgetown Agreement.

• Resolutions:

Resolution N°/LV/92: Support for the candidature of Ambassador Mamadou Bobo CAMARA of the Republic of Guinea for the post of Director of the Telecommunications Development Bureau (TDB) of ITU.

Resolution N° LV/92: Sugar

Resolution N° LV/92: Bananas

Resolution N° LV/92: Towards the implementation of Cultural and Social Cooperation

Resolution N° LV/92: Education and Training

Resolution N° LV/92: Least Developed, Landlocked and Island Countries

Resolution N° LV/92: The situation in South and Southern Africa.

• Any other business

Closing the Session, the President thanked the Members of his Bureau for the support he got from them during their term of office. He also thanked the delegations for their contribution to the deliberations of Council, the Ambassadors for having prepared Council's work and the Secretariat for servicing the Council during its Session.

Finally, he wished Delegates a Merry Christmas and a Happy New Year. He also wished them a safe return to their respective destinations (The text of the closing remarks is attached).