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African, Caribbean and Pacific Group of States 
(ACP Group) 
Groupe des Etats d'Afrique des Caraïbes et du Pacifique
(Groupe ACP)
451 Avenue Georges Henri Avenue Georges Henri, 451
1200 Brussels, Belgium  1200 Bruxelles, Belgique
Tel: 32 2 743 06 00 Fax: +32 2 735 55 73
email: info@acp.int
Website : http://www.acp.int

DRAFT SUMMARY RECORD OF THE 58TH MEETING OF THE 

COUNCIL OF ACP MINISTERS 

HELD ON 16 AND 17 MAY 1994 IN MBABANE - SWAZILAND

Ref:ACP/25/017/94 Rev.1 AMS/sac

Brussels, 25 November 1994

TABLE OF CONTENTS

OPENING CEREMONY 1

COUNCIL'S PROCEEDINGS

1. Adoption of the agenda 2

2. Appointment of the Rapporteur and Friends of the Rapporteur 2

3. Approval of the draft summary record of 57th session 2

4. Communication from the President 3

5. Consideration of activity report of The Committee of Ambassadors 5

PART I : ACP-EU COOPERATION

Trade Cooperation 6

Customs Cooperation 7

Stabex 8

Sysmin, Mining and Energy 9

Least Developed, Landlocked and Island countries 9

PART II : ACP-EU JOINT ASSEMBLY 10

PART III : INTRA-ACP, REGIONAL, CULTURAL AND SOCIAL COOPERATION

Conference of National Chambers of Commerce, Industry

and other Economic Operators 10

Charles Katungi Training Project 10

Coastal Erosion Projects 10

The Foundation for ACP-EU Cultural Cooperation 11

(ii)

PART IV : ACP INTERNAL MATTERS

Review of the scale of contributions to the ACP General Secretariat's budget 11

Introduction of an Internal Taxation System on emoluments of staff

of the ACP General Secretariat 12

Expenditures not refunded by EDF 12

Contracts of temporary staff 12

6. Consideration of reports from the Ministerial Committees

Bananas 13

Commodities 15

Development Finance Cooperation 17

Sugar 19

7. Preparation for the Mid-Term Review 22

8. Exchange of views on the situation in some ACP countries 25

9. Consideration of the draft agenda for the 19th session of the ACP-EU Council of Ministers 25

10. Consideration of matters relating to the ACP Secretariat 26

11. Outcome of the 58th ACP Ministerial session 27

12. Designation of the members of the new Ministerial Bureau 28

13. Date and venue of the next meeting 29

14. Any other business 29

SUMMARY RECORD OF THE 58TH SESSION

OF THE ACP COUNCIL OF MINISTERS

HELD ON 16 AND 17 MAY 1994 IN MBABANE - SWAZILAND

OPENING CEREMONY

The opening ceremony of the 58th session of the ACP Council of Ministers was presided over by Hon George BRIZAN, Minister of Agriculture, Commerce, Industry, Energy and Production of Grenada and President-in-Office of the ACP Council of Ministers.

In his opening statement, the President conveyed to the host Council's, gratitude and appreciation for the warm hospitality that the Government and people of Swaziland had accorded the delegates.

He also expressed delight at the holding of a Council session in Swaziland when the entire region of Southern Africa was undergoing transformation and South Africa had shaken off the yoke of apartheid after a long and bitter struggle.

The President indicated that his expression of joy was tempered by the carnage of unprecedented proportions being conducted in Rwanda.

He urged Council to condemn the violence and to consider ways and means of showing its solidarity with the people of Rwanda.

Finally, the President placed on record his appreciation for the cooperation received from his colleagues in the Council Bureau, and their support and input provided by the Committee of Ambassadors and the General Secretariat.

Council's proceedings

1. Adoption of the agenda [ACP/25/005/94 Rev.2]

The draft agenda was adopted as presented in document ACP/25/005/94 Rev.2.

2. Appointment of the Rapporteur and Friends of the Rapporteur.

In accordance with the rules guiding the choice of a Rapporteur for a Council session held in an ACP country, Southern Africa, was required to nominate a Rapporteur. Consequently Swaziland, the region's nominee, was appointed Rapporteur of the 58th session of Council.

The countries listed below were designated by their respective regions to serve as "Friends of the Rapporteur":

Central Africa : CONGO

East Africa : ETHIOPIA

West Africa : GHANA

Pacific : WESTERN SAMOA

3. Approval of the draft summary record of the 57th meeting of the Council of Ministers [ACP/25/003/94 Rev.1]

Having thanked his Friends for assisting him in finalizing the draft summary record of the 57th session of Council, the Rapporteur to the 57th session of Council, the Hon. Carl W. Bethel head of the delegation of the Bahamas, commended the report for adoption after presenting it.

Council considered and adopted the summary record of its 57th session, document ACP/25/003/94 Rev.1.

4. Communication from the President.

The President communicated the following items :

i) Enlarged Ministerial Bureau meeting held on 9 February 1994 in Brussels: Reporting on the outcome of the aforementioned meeting, the President said that apart from himself and the Minister from Mozambique, H.E. Mr Daniel Gabriel TEMBE, Minister of Trade, all the other members of the Enlarged Ministerial Bureau were represented by their respective Ambassadors in Brussels.

On the substance of the meeting itself, the President referred members of Council to the minutes contained in document ACP/25/004/94 (see page 22 of this report). He added, however, that the report and recommendations submitted by the Committee of Ambassadors were approved and the Enlarged Ministerial Bureau authorized the Secretary General to communicate the ACP position to the European Council Secretariat.

ii) 18th session of the ACP-EU Joint Assembly : The President indicated that he attended the 18th session of the ACP-EU Joint Assembly held from 14 to 18 February 1994 in Strasbourg, France. On that occasion he addressed the Assembly on behalf of Council, underscoring some of the major issues facing the ACP Group. He also met with some senior European Union officials including Commissioner MARIN.

iii) Sensitization missions to some European Capitals : The President informed the meeting that he headed a delegation comprising the Minister for Economic Planning and Development of Swaziland, Hon. Themba MASUKU, the Chairman of the Committee of Ambassadors, the Secretary General and the Press and Protocol Officer of the Secretariat, to Athens, Bonn and Brussels, in the framework of sensitizing the European decision makers on ACP positions on the major issues of the Mid-Term Review of the Fourth Lomé Convention.

He gave an account of his discussions with the following Ministers :

- H.E. Mr Theodoros PANGALOS, Deputy Minister of Foreign Affairs of Greece and President-in-Office of the Council of Ministers of the European Union

- H.E. Mrs Ursula SEILER-ALBRING, Secretary of State, Ministry of Foreign Affairs of Germany

- H.E. Mr. HAERTEL, Secretary of State for Cooperation of Germany

- H.E. Mr Erik DERYCKE, Secretary of State for Development Cooperation of Belgium.

The President emphasized the usefulness of the contacts and the receptiveness of his European interlocutors, particularly the German Minister.

He noted that the latter had requested the ACP group to prepare for the EU Presidency's information, an outline of the main ACP concerns and proposed solutions. These should include suggestions as to the role ACP, EU and ACP-EU private sectors could play in the framework of Lomé IV over the next 5 years.

Concluding on this item, the President expressed his appreciation of the initiative taken by the Secretary-General and he thanked the staff who had organized the meetings. He also expressed gratitude to the Minister from Swaziland and the Chairman of the Committee of Ambassadors for their contribution during the meetings with the European Ministers.

iv) Outcome of the meeting of the Bureau of Council : The President announced that the Bureau had met earlier to consider the draft agendas for the meetings of the ACP and ACP-EU Council of Ministers. At that meeting the members proposed a structure for the ACP Ministerial negotiating team. The Bureau members were requested to undertake consultations within their respective regions on the structure and to reconvene on Wednesday 18 May 1994 to consider and adopt the final structure based on the outcome of the consultations.

5. Consideration of activity report of the Committee of Ambassadors to the 58th session of the ACP Council [ACP/26/034/94 Rev.1] :

Introducing the report, the Chairman-in-Office of the Committee of Ambassadors, H.E. Mr Rashid Orlando MARVILLE, Ambassador of Barbados, said that since the 57th meeting of Council in November 1993, the Committee of Ambassadors had worked on a variety of areas and had been involved in a wide range of activities pertaining to the implementation of the Convention and the Mid-Term Review.

The Committee had also monitored the tragic and momentous political and social events in various ACP States such as Rwanda, Haiti, Burundi on the one hand, and in Somalia, Liberia and South Africa on the other.

The Chairman then proceeded to identify outstanding issues on which the Committee of Ambassadors required further guidance from Council. Below is a summary of Council's deliberations on those issues.

PART I: ACP-EU COOPERATION

TRADE COOPERATION:

Enlargement of the European Union : Council held the view that the enlargement of the European Union to include Austria, Finland, Norway and Sweden, would increase the market of the EU, and which may have a positive impact on ACP economies. Consequently, the Secretariat was requested to closely follow developments in the enlargement process with a view to assessing the economic advantages ACP countries could derive from it.

Rum: Council was informed that the ACP suppliers had exhausted their quota for the 1993/94 marketing year and had requested an increase in this year and the abolition of the quota system thereafter. It was also pointed out that EU interests were not served by the quota system which restricted access of ACP rum to the EU markets in a manner inconsistent with the spirit of the Lomé Convention.

In view of the above, Council :

i) called on the Commission to finalize and submit its report to the EU Council taking into account the actual situation and prospects on the EU market while paying due regard to the legitimate aspirations of ACP rum producers;

ii) requested the European Union :

- to give urgent and favourable consideration to the ACP's request for an immediate increase in the global quota fixed for the current marketing year to take account of the actual demand situation on the EU market;

- to recognise the justification and necessity for total abolition of the quota system by 1 January 1996 and therefore to respond positively to the Commission's report on which the modalities for such abolition will be based;

CUSTOMS COOPERATION

Rules of Origin : Council considered the problems encountered by a number of ACP States in the implementation of the rules of origin for fisheries products. It observed that the rules did not take into account the level of development of most ACP States and the 12-mile limit had some negative environmental implications as it put undue pressure on fisheries resources of the ACP States.

Council also examined the dispute between the Seychelles authorities and the European Union arising from that country's exports of canned tuna to the European Union. Aware of the serious implications of the conclusions of the EU's decision on the economy of the Seychelles, Council called :

- on the Commission to suspend its instructions to the Member States regarding the collection of customs duties, while consultations are being held under the auspices of the Customs Cooperation Committee;

- on the Commission to pursue, within the Customs Cooperation Committee, the necessary consultations and verification, on the basis of the additional information submitted by the Seychelles authorities, with a view to arriving at a mutually satisfactory solution;

- on the member States of the EU to allow the Seychelles authorities adequate time to repay any customs duties that may be due;

- on the Commission and the ACP General Secretariat to accelerate the holding of the seminar on Rules of origin and to provide interested ACP States with the relevant technical assistance in undertaking the procedure entailed in the rules of origin.

STABEX :

All Destinations Derogation : Council endorsed the proposal to request the EU to extend the all destinations derogation until the end of the current financial protocol. Failure to extend the derogation could jeopardise the structural adjustment programmes being implemented.

Inadequacy of resources and utilization of Sysmin balances under Lomé III: Council agreed to propose at the joint Ministerial session that the ACP-EU Committee of Ambassadors be delegated powers to deal with the question of the inadequacy of Stabex resources to meet all eligible transfers.

Council further mandated the ACP Committee of Ambassadors to take up the issue of the transfer of resources from Sysmin balances to Stabex.

Framework of mutual obligations : Council expressed concern with respect to the delay in transfering resources caused by the difficulties encountered in meeting the conditions of the framework of mutual obligations.

The Council was concerned about the impact of the conditionalities on the transfer of resources and appealed to those countries which had been having difficulty with the FMO to provide the information to the Secretariat in order to facilitate the preparation of a common strategy to resolve the issue.

The case of SUDAN : Having examined Sudan's entitlement to transfers for years of application 1990, 1991 and 1992, Council called on the Commission to sign the transfer agreement with Sudan to enable it to draw on its Stabex entitlements.

SYSMIN, MINING AND ENERGY DEVELOPMENT

Measures for the ACP mining sector : Council was informed that following a meeting in which representatives of the European mining industry, the Department of geological and Mineral Research of France (BRGM) and

an ACP expert took part, the Subcommittee had proposed the setting up a Think Tank of relevant ACP professionals to propose and recommend measures for the ACP mining sector.

After considering and endorsing the proposal, Council instructed the Committee of Ambassadors to finalise the terms of reference of the Think Tank whose principal objectives should be to devise modalities for improving the image of the ACP mining sector and to advise on the creation of conditions for balanced partnerships with EU enterprises.

LEAST DEVELOPED, LANDLOCKED AND ISLAND COUNTRIES (LDLICs)

Consequent on Council's concern over the difficulties encountered by this category of countries in the implementation of the Convention, a study had been commissioned at Council's request, to evaluate measures for LDLICs.

The recommendations stemming from the report on the evaluation of measures for the LDLICs included :

- the redefinition of the category of LDLICs

- the priority it receives in National Indicative Programmes and Stabex allocations

- the identification of the needs of landlocked and island countries

- the adoption of measures to improve the LDLICs' absorptive capacity, and

- arrangements for monitoring implementation of measures pertaining to LDLICs.

Council adopted the recommendations summarized above as detailed in the activity report.

PART II : ACP-EU JOINT ASSEMBLY

Council took note of this part of the activity report

PART III: INTRA-ACP, REGIONAL, CULTURAL AND SOCIAL COOPERATION

Conference of National Chambers of Commerce, Industry and other Economic Operators: Council requested the ACP Committee of Ambassadors to pursue its review of the proposals to set up a permanent office in the Canary Islands as well as arrangements for financing its future activities and to see how that proposal relates to the Trade Development Project under Annex XX of Lomé IV. The Committee was further requested to submit its recommendations to the next Council session.

Charles Katungi Training Project : Having expressed its concern at the fact that only eight (8) ACP countries out of the 70 had so far indicated their interest in participating in the project and given the importance it attaches to promoting education and training activities, Council instructed the ACP Secretariat to organize a meeting of senior education officers from the eight countries on the modalities and costs of the project so that the latter could commence after 31 August and before next Council. Council further urged other interested countries to join the project in due course.

Coastal erosion projects

a) Along the West African coastline

b) In the Caribbean and adjacent regions

In view of the lack of reaction from the Commission to the programmes submitted by the ACP Group for financing under Article 164 1(d) of Lomé IV, Council requested the Secretariat to provide ACP missions with the correspondence with the Commission to enable the ACP Group to evaluate the former's attitude and develop a political approach on the matter.

Council further urged that contacts should be pursued with the EU President with a view to eliciting a positive reaction to the ACP proposals on the above projects.

The Foundation for ACP-EU Cultural Cooperation : Council reiterated its disquiet at the Foundation's inability to carry out its programmes because of lack of resources. It recalled that the Foundation was the only ACP-EU institution which provided a forum for intercultural dialogue.

In view of the special role the Foundation plays in the ACP-EU relations, Council held the view that the Contracting Parties to the Lomé Convention should honour the provisions of the said Convention in respect of the Foundation.

In that regard Council called for the setting up of a joint ACP-EU group for the purpose of considering the restructuring of the Foundation. In the meantime, Council requested that the Commission of the EU provide financial resources to finance the Foundation's operaions over the next six-month period.

However, in the event of a deadlock, the ACP Council could invoke the provisions of Article 289(2) and 326(4) whereby the matter could be referred to the ACP-EU Development Finance Cooperation Committee (which is required to give its views within 60 days or request a hearing by the Community's decision-making body).

PART IV : ACP INTERNAL MATTERS

Review of the scale of contributions to the ACP General Secretariat's budget : Having noted that only two of the 6 ACP regions had made nominations to the group of external experts entrusted with the above task, Council urged the other regions to submit the names of their experts to the Secretariat as soon as possible, to enable the panel complete its work not later than 30 September 1994.

Council also instructed the Committee of Ambassadors to present its recommendations to its next session.

Introduction of an Internal Taxation System on emoluments of staff of the ACP General Secretariat : Council endorsed the introduction of an internal taxation system and it took note of its effects on the salary structure.

Expenditures not refunded by EDF : Following the Commission's refusal to refund the expenditures shown below, Council decided to authorize the Secretary General to have recourse to the Reserve Fund in regularizing the expenditures :

- BF 420.544 in respect of the order for office furniture placed in 1990, for which there is no appropriation

- BF 3.931.545 in respect of the fees already paid to four consultants whose services were required by the Council of Ministers and Committee of Ambassadors; and

- BF 1.845.967 in respect of the irretrievable amount of housing allowance paid/payable by the Secretariat from the date the Deputy Secretary-General took office until 31 December 1994.

Contracts for temporary staff : Council authorized the Secretary General to extend temporary contracts to the relevant staff members until 28 February 1995, in strict compliance with established procedures.

6. Consideration of reports from the Ministerial Committees

a) BANANAS [ACP/67/039/94] :

In the absence of the Chairman of the Ministerial Committee, Hon. W. George MALLET, Deputy Prime Minister, Minister of Foreign Affairs, Trade and Industry of St Lucie, taken ill, the report on Bananas was presented by Hon. Charles MAYNARD, Minister of Trade, Industry and Tourism of Dominica. It contained the following elements :

ACP memorandum on Bananas : The Memorandum requested the EU to fulfil its outstanding commitment to provide measures aimed at improving marketing and ACP competitiveness and providing income support. It urged improvements to the regime established by Regulation 404/93.

Ministers expressed concern over the EU's failure to respond to the memorandum, but noted that the EU had agreed to consult and discuss with the ACP, the matters raised therein at a technical level.

GATT Panel Reports : The Ministerial spokesman recalled the two complaints lodged in the GATT by the five Latin American banana producers namely, Columbia, Costa Rica, Guatemala, Nicaragua and Venezuela, as follows :

- the challenge to the legality of the arrangements that certain member States of the EU had put into place in order to honour their commitments under Protocol No.5 of the Lomé Convention, and

- against the Common Organization of the Market in Bananas (Regulation 404/93), in the light of the relevant provisions of GATT.

The Banana Ministers considered that the Lomé Convention, which is not only a legal document but a political pact between the ACP and the EU, should not be abrogated by the EU and they urged that the Union find a way of honouring it commitments under the Convention.

With respect to the Framework Agreement between the EU and the Latin American banana producers, the Ministers expressed concern that the ACP banana suppliers had not been consulted on that matter and they considered the EU to have been in breach of the Lomé provisions on prior information and consultation.

Banana case in the European court of justice : Another problem facing ACP bananas was the complaint against Regulation 404/93 lodged by the German Government in conjunction with the Government of Belgium. The case was at an advanced stage and the court was expected to present its decision by October 1994.

The Banana Ministers noted with concern that the divergent views within the EU member States had contributed to the weakening of the EU position in the GATT regarding the regulation.

Transferability : In the application of this principle, the Ministers decided that transferability would first apply to traditional suppliers and in the event of their inability to take up this offer, the non-traditional suppliers would be considered.

Other elements covered in the report include :

- the need to ensure that the quota fixed for traditional quantities conforms with Protocol 5 which provides for growth as the market expands;

- the decision by the Ministers that in exceptional circumstances an ACP state may, on the basis of an agreement notified in advance to the Commission, fulfil all or part of its quota with bananas originating in another ACP country;

- an agreement by Ministers to set up a Ministerial Committee to come up with the modalities for the allocation of 90,000 tonnes; and

- a decision to react to the draft quality standards regulations being finalized by the Commission.

b) COMMODITIES [ACP/67/037/94] :

The report on Commodities, made by Hon. Guy-Alain GAUZE, Côte d'Ivoire Minister for Commodities and Chairman of the ACP Ministerial Committee on Article 75, included the elements itemised below for which Council approved the recommendations as outlined :

International Coffee Agreement : The Chairman of Article 75 reported that the retention plan for the Association of coffee-producers had attained its objective of improving prices and reducing stocks in the importing countries barely 3 months after coming into effect.

Consequent on that positive result, Council adopted the Ministerial Committee's recommendations that all ACP-coffee producing countries apply the plan with all its clauses with a view to attaining in 1994, the export levels of 1988.

Council further :

- agreed to ask the EU whether Articles 1 and 30 of the 1994 International Coffee Agreement, relating respectively to the objectives and safeguard clause, could be interpreted as meaning the negotiation of a new Agreement as soon as the relevant conditions were met, before the expiry of the 5 year 1994 Agreement;

- asked ACP producer countries to sign and ratify the 1994 Agreement before September 1994 so as to maintain the International Coffee Organization as a forum for consultation between producers and consumers and a framework for managing the statistical data of the World Coffee Market;

- urged the main ACP producers to join the Association and to that end it requested the President of Council to send messages to ACP coffee producers which do not belong to the Association urging them to join.

International Cocoa Agreement : Having welcomed the report by the Chairman of the Ministerial Committee that ACP major cocoa-producing countries had decided to sign and ratify the Agreement as from 24 February 1994, Council :

- urged the authorities of Papua New Guinea and the Dominican Republic to ratify the Agreement as soon as possible, and in any case before 6 June 1994;

- agreed to ask the EU to exert its influence to ensure that at the forthcoming International Cocoa Council session (6-10 June 1994) the production Committee is set up with precise production targets and the criteria for defining "fine flavour" cocoa-exporting country earnings.

The use of vegetable fats other than cocoa butter in the manufacture of chocolate : Burkina Faso and Mali, both producers of shea butter, a substitute for cocoa butter in the manufacture of chocolate, indicated that they expected the EEC Directive 73/241 to be altered to allow for the use of vegetable fats of up to 5% of the total weight of the finished product. For their part, the cocoa producing countries strongly recommended the maintenance of the status quo.

Preliminary studies having shown that the generalized use of vegetable fats other than cocoa butter would lead to a reduction in the European Union demand for cocoa, the ACP Group agreed to maintain the status quo pending a study on the possible earnings of the two countries from the use of other vegetable fats in the manufacture of chocolate. Council further agreed to request the European Union to desist from modifying EEC Directive 73/241.

Mid-Term review of the Fourth Lomé Convention : In the area of commodities, negotiations should be directed at getting the EU to agree on a programme for :

- the effective implementation of the existing provisions (PMDT provisions, increasing competitiveness of ACP commodities in the world market, etc...)

- inclusion of an additional parameter in the calculation of the overall financial envelope and

- the inclusion of a Protocol with regard to the rational management of forest resources for sustainable development.

c) DEVELOPMENT FINANCE COOPERATION [ACP/81/030/94 Rev.1]

The report on the work undertaken by the ACP Development Finance Cooperation Committee presented by its Chairman, Hon. MPHO MALIE, Minister of Finance and Planning of Lesotho, comprised the following elements :

The 1993 activity report and the Committee's 1994 Work programme : the 1993 activity report and the 1994 work programme concerned mainly the Mid-term Review, the review of the implementation of projects and programmes, evaluation studies and a proposal for investment protection.

The implementation of financial and technical cooperation during 1992 and 1993 : there has been a marked improvement in the decision-making process, resulting in increased commitments and disbursements. That had been made possible primarily because of the implementation of the structural adjustment facility. There were however, the perennial problems of the insufficiency of Stabex resources and the slow pace of implementation of the Sysmin instrument.

Joint evaluation : This exercise had been jointly conducted by the ACP General Secretariat and the Commission.

Structural adjustment : The report underscored the instrument's quick disbursement attributes as compared with other instruments of the Convention.

Regional cooperation and integration : This report :

- outlined the progress made in the implementation of regional indicative programmes under Lomé III and IV and the positive role of mandated institutions in the programming exercise, and

- highlighted the progress made in the various initiatives to provide regional integration.

Least developed, Landlocked and Island States (LDLICs) : The report on this category of countries had been completed and distributed. It highlights two major facts :

- the LDLICs received under Lomé III and Lomé IV combined (national indicative programmes) on average nearly twice as much as the other ACP States;

- priority was given in the national programmes of these countries to food security and integrated rural development, transport and communications and fisheries development;

The third meeting of National and Regional Authorizing Officers : This meeting provided an opportunity for the officers to make their contribution to the Mid-Term Review of Lomé IV Convention and also to exchange experiences on current implementation constraints.

The Draft Resolution of the ACP-EU Council of Ministers on Development Finance Cooperation : The draft resolution would be presented to joint Council for consideration and adoption. The attention of Council was drawn to:

- the concern expressed about the low level of participation of ACP nationals in EDF contracts and the constructive recommendation aimed at reversing that trend;

- the recommendation about the use of unspent balances of past indicative programmes for sectoral and general import programmes;

- the recommendation aimed at bringing the definition of LDLICs in line with the UN system, and

- the review of the allocation procedures for national Indicative Programmes and Stabex transfers.

Council adopted the report and approved the recommendations contained therein. It called on the Committee of Ambassadors to follow-up with vigilance all appropriate recommendations contained in the draft resolution.

d) SUGAR [ACP/63/011/94]

The report by the Spokesman of the ACP Ministerial Consultations on Sugar, Hon. K.C. RUHEE, Minister of Agriculture and Natural Resources of Mauritius, covered the following items :

Discussions with Commissioner STEICHEN of the EU Commission : The Ministerial Spokesman on Sugar informed the meeting that he led an ACP delegation which met Commissioner Steichen of the Commission after the conclusion of the Uruguay Round of MTN. At that meeting, the ACP delegation referred to the possible negative impact of GATT on the economies of the ACP sugar supplying States and it also raised all the critical issues affecting the ACP sugar industry.

Guaranteed price for 1993-94 and agri-monetary measures : The Sugar Ministers gave a mandate to the Sugar Subcommittee to conclude the negotiations on the guaranteed price for the 1993/94 delivery period, by accepting the EU's offer subject to the appropriate caveats which included the ACP claim for accompanying measures.

The Ministers requested the Subcommittee to prepare a position paper on US$/ECU parity and the movements thereof.

Guaranteed price for 1994/95 : The Ministers expressed concern that once more the EU had not yet made a price offer and thus had not adhered to the provisions of article 5(4) of the Protocol in respect of the 1st May deadline.

GATT : Having been informed that the commitments of the EU as regards molasses, which could erode the ACP preference, had to be investigated, the Ministers requested the Subcommittee to take the necessary actions in that regard.

Access to the Portuguese market : Having taken note of the evolution of this matter since 1984, the Ministers :

- requested that the ACP Secretariat gather information on the building of a beet factory in Portugal for the production of 6000 tonnes of white sugar;

- agreed that the ACP should undertake effective lobbying at the highest political level in European Capitals with a view to highlighting the importance of increased access at the guaranteed price or at an economically significant price for the ACP.

The Sugar Regime/Enlargement of the European Union : the Ministers requested the Subcommittee to :

- review the document prepared by the ACP Group in 1992 on the Sugar Regime and to amend it if appropriate;

- examine the opportunities for further increased access afforded by the accession of Finland to the European Union;

- initiate appropriate lobbying actions in respect of Finland.

Transport costs : the study on transport costs having been concluded, the Ministers requested the ACP countries, which had not done so, to transmit their comments thereon to the Secretariat. The Ministers further requested the Subcommittee to examine the costs of inland freight and unloading conditions at port of discharge. It should prepare concrete proposals based on the outcome of that exercise and the elements drawn from documents transmitted by the various ACP States, all of which would be discussed by the joint contact group.

Special measures : The Ministers agreed that the matter should be kept active and raised with the EU at an appropriate time.

Zambia : The Ministers expressed the hope that the evaluation being carried out by the Commission would result in a positive response with respect to Zambia's request for accession to the Sugar protocol.

State of deliveries : The Ministers noted with satisfaction that the supplying States would be in a position to honour their 1993/94 delivery obligations.

Fourth Special Ministerial Meeting on Sugar : the Ministers agreed that it was necessary to pursue and indeed intensify, the lobbying effort direted at the EU partners. They requested Ambassadors to maintain close contact with the EU beet growers and refiners because of the convergence of their interests in certain issues.

Ministers agreed that it would be opportune to hold a fourth special sugar ministerial meeting, possibly in Brussels in September/October 1994.

7. Preparation for the Mid-Term Review :

a) President's report on the Enlarged Ministerial Bureau meeting held on 9th February 1994 [ACP/25/004/94]

The President reported that in accordance with the decision of Council, the Enlarged Ministerial Bureau met on 9 February 1994 at ACP House, Brussels and considered on behalf of Council, the ACP memorandum to the European Union on the Mid-Term Review. Having made some observations on the text, the Enlarged Ministerial Bureau adopted the memorandum and gave the following guidelines with respect to the document :

i) the memorandum should be amended as directed by the Enlarged Ministerial Bureau, cleared by the Committee of Ambassadors on behalf of Council and submitted to the EU under the signature of the Chairman of the Committee of Ambassadors

ii) the memorandum, together with the other documents under preparation, should be sent to ACP Capitals by 28th February 1994, with a deadline for the submission by ACP States of proposals for amendments and improvement.

iii) The Enlarged Ministerial Bureau renewed the overall mandate to the Committee of Ambassadors and the General Secretariat, namely to prepare and monitor all aspects of the Mid-Term Review and to formulate, if necessary, any counter-proposals to those submitted by the European Union.

Council endorsed the guidelines handed down by its Enlarged Bureau to the Committee of Ambassadors as outlined above.

Committee of Ambassadors' report on the review [ACP/27/010/94]

Organisation of the negotiating sessions :

- programme [ACP/43/011/94 Rev.2]

- structures [ACP/27/005/94]

Council considered and approved the Ministerial Bureau's recommendations concerning the designation of ACP Spokesmen for the joint negotiating sessions, as reflected below :

i) Coordination and review of progress : President and Ministerial Bureau

ii) Negotiation of the Financial Envelope, Human Rights, Good Governance : Presidential Troika

iii) Trade and related matters :

Spokesman : Hon. Abbey KAFUMBE-MUKASA, Deputy Minister of Finance and Economic Planning of Uganda

Assisted by : H.E. Mr Alain GAUZE, Minister for Raw Materials of Cote d'Ivoire

Hon Charles MAYNARD, Minister of Trade, Industry and Tourism of Dominica

Additional spokesman : Hon. Clement MOUAMBA, Minister of Economic Planning of Congo

iv) Development Finance Cooperation and Financial Protocol : Spokesman : Hon. MPHO MALIE, Minister of Finance and Planning of Lesotho

Assisted by : Hon. Tuilaepa SAILELE MALIELEGAOI, Deputy Prime Minister, Minister of Finance of Western Samoa;

H.E. Mr BOUNANDELE-KOUMBA, Secretary of State responsible for Economic Planning and Finance of the Central African Republic.

Additional spokesman : Hon. Dr Abdulmejid HUSSEIN, Minister for External Economic Cooperation of Ethiopia

Council instructed the Committee of Ambassadors to work out with the Commission a timetable of negotiations to enable Ministers to make long term planning.

8. Exchange of views on the situation in :

- Burundi

- Haiti

- Liberia

- Rwanda

- Somalia

- South and Southern Africa

- Zaire

Council heard a report on the situation in the countries listed above and in some countries in the region of Southern Africa, including South Africa which had just had a peaceful change from apartheid to a democratically-elected transitional government.

Council adopted resolutions on a number of the countries above (see item 11 below).

Council agreed to propose the adoption of a joint ACP-EU resolution on South Africa at the Joint Council session. It further requested the President to write to President Nelson MANDELA OF South Africa congratulating him on his election to the office of President and renewing the ACP Group's support of the efforts of the new South Africa.

9. Consideration of the draft agenda for the 19th session of the ACP-EU Council of Ministers [ACP/CEE 2146/94]

Council considered and noted the draft agenda for the 19th session of the ACP/EU Council of Ministers.

Following consultations among regions, Ministers from the countries listed below were designated to be ACP lead speakers for the subjects listed under the "C" items.

a) Situation in South and Southern Africa : Botswana and Swaziland

b) Diversification of ACP economies : Benin, Dominica and Guyana

c) Debt : Ethiopia and Jamaica

10. Consideration of matters relating to the ACP Secretariat

a) Committee of Ambassadors' recommendations on the staffing position of the General Secretariat following the conclusions of the Consultant's report [ACP/41/003/94]

The Consultants from the Organization and Methods Bureau of Senegal having completed the assessment of the staffing position, Council extended the Committee's mandate to enable the Ambassadors to make recommendations in time for consideration by Ministers at the budget session in November 1994.

b) Financial situation of the ACP Secretariat [ACP/45/013/94]

Council observed that since the implementation of its decision with regard to the further tightening of sanctions, the Secretariat's cash flow situation had improved. To ensure that that effort was sustained, Council appealed to those States still in arrears of contribution to make their payments and it mandated the Chairman of the Committee of Ambassadors to continue the strict application of the sanctions.

With regard to Haiti, Liberia and Somalia, Council mandated the Committee of Ambassadors to definitively assess these three States and to submit at the next ACP budgetary session a clear and definitive set of recommendations in respect of past and future contributions in each case.

c) Arrangements pertaining to notification of vacancy of the post of Secretary General :

Having heard an explanation from the Legal Counsel on the legal situation regarding the above subject, Council requested its President to send out to all ACP States, in August, a written notification of the vacancy of the post of Secretary General of the ACP Secretariat.

CORRIGENDUM - SUMMARY RECORD OF THE 58TH SESSION

OF THE COUNCIL OF MINISTERS [ACP/25/017/94 Rev.1]

Without prejudice to the strict observance of established rules and procedures, Council adopted the principle that for the purposes of the Lomé IV second cycle, the post of Secretary General be filled by an African, that of the Deputy Secretary General by a Caribbean national and the post of Director of the CDI by a national of the Pacific region.

With regard to the post of Director of CDI, while recognizing the prerogative of the ACP-EU Committee of Ambassadors in the appointment of the Director, Council stressed the need to adhere strictly to the agreement on the rotation of the post. Specifically, for the second tranche of the Fourth Lomé Convention, the post of Director of CDI should be filled by an ACP national.

11. Outcome of the 58th ACP Ministerial session:

- adoption of the draft decisions and resolutions:

a) Decisions:

Council adopted the following decisions:

Decision No.1/LVIII/94 : Notification of the vacancy of the post of Secretary General

Decision No.2/LVIII/94 : Assessment of the Staff position of the ACP General Secretariat

Decision No.3/LVIII/94 : Review of the scale of contributions to the ACP Secretariat's budget applicable to the ACP Member States

Decision No.4/LVIII/94 : Regrading of the linguistic staff

Decision No.5/LVIII/94 : Expenditures not refunded by EDF

b) Resolutions:

Council adopted the following resolutions:

On the situation in Rwanda

On the situation in Burundi

On the situation in Haiti

On the situation in South Africa

Stabex transfers for Sudan for 1990, 1991 and 1992 years of application

Bananas

Sugar

Rum

On the Rules of Origin

The Foundation for ACP-EEC Cultural Cooperation

Referred to the Committee of Ambassadors for finalization :

Resolution on Commodities.

12. Designation of the members of the new Ministerial Bureau [ACP/549/79 Rev.24]

The following countries were appointed to represent their regions on the new Ministerial Bureau assuming office at the end of the 58th session of Council :

Central Africa : Cameroon (President)

East Africa : Djibouti (Member)

Southern Africa : Swaziland (member)

West Africa : Mauritania (member)

Caribbean : Barbados (member)

Pacific : Western Samoa (member)

13. Date and venue of the next meeting of :

a) The ACP Council of Ministers

The next session of the ACP Council of Ministers will take place in the second half of November in Brussels, Belgium at a date to be communicated later.

b) The ACP-EU Council of Ministers

The next meeting of the ACP-EU Council of Ministers will take place in May 1995 in a European country. The country and exact date would be made known at a later date.

14. Any other business

a) Status of the request by the MARSHALL ISLANDS to accede to the Lomé Convention : Council urged that the processing of the application of the Marshall Islands to accede to the Lomé Convention be expedited and in the meantime that country was accorded observer status in the ACP Council meetings.

b) Positions of the new members of the Council Bureau : Following a misunderstanding on the attribution of the post of President of Council, the Head of delegation of Congo made a statement on behalf of the region of Central Africa. The text of that statement is attached as an annex.

Concluding the deliberations, the President thanked all delegations for their cooperation and assistance during the mandate of the outgoing Bureau whose members were very supportive of the President. He expressed best wishes to the new President and his Bureau and the Troika.

Finally, the President wished all delegates a safe return to their respective destinations.