Requests for the financing of investment projects which will serve to increase the productivity of the Turkish economy and further the objectives of the Agreement -of Association,.and which are part of the Turkish development plan, may be submitted by. the Turkish State and by Turkish undertakings to :the European Investment. Bank, which shall inform them of the action taken thereon.
2.
Projects for which requests are approved shall be financed by loans. These loans may be contracted up to-a total-of 175 million units of.account, which may be committed in the five years following the entry into force of this Agreement.
3.
Requests for financing submitted by Turkish undertakings shall not be approved without the agreement of the Turkish Government.
4.
1. Loans shall be granted on the basis of the economic features of the projects. which they are to finance.
2. Loans, especially. those. for investment -projects the return on which is indirect or long term, may be made-on special terms such as reduced rates of interest, extended repayment periods, interest-free periods and, where appropriate, any other special repayment terms which may facilitate the servicing of such loans by Turkey.
3. Any loan granted to an undertaking or to an authority other than the Turkish State shall be subject to a guarantee from the Turkish State.
5.
1. The Bank may make the granting of these loans subject to public invitation to tender or other tendering procedures. Participation in such public invitations to tender or other tendering procedures shall be open on equal terms to all natural and legal persons who are nationals of Turkey or of Member States of the Community.
2. Loans may be used to cover expenditure on imports or domestic expenditure, where such expenditure is necessary. for carrying out approved investment projects.
3. The Bank shall ensure that the funds are used in the most judicious manner and in accordance with the objectives of this Agreement.
6.
Turkey undertakes to allow recipients of these loans to obtain the currency. necessary for the repayment of the loans and of interest thereon.
7.
Assistance-provided under this Protocol for carrying out certain projects may take the form of participation in financing operations in which, in particular, third countries, international finance organizations. or credit and development authorities and institutions of Turkey or of Member States of the Community-may be concerned.
8.
Aid to Turkish economic and social development under the conditions set out in this Agreement and in this Protocol shall be supplementary to the endeavours of the Turkish State.
9.
This Protocol shall be annexed to this Agreement.
In witness whereof, the undersigned Plenipotentiaries have signed this Agreement.
Done at Ankara this twelfth day of September in the year one-thousand nine hundred and sixty-three.
For His Majesty the King of the Belgians,
For:the President of the Federal Republic of Germany,
For the President of the French Republic;
For the President of: the Italian Republic,
For Her Royal Highness.the Grand Duchess of Luxembourg,
For Her Majesty the Queen of the Netherlands.
Final Act
The Plenipotentiaries of
His Majesty the King of the Belgians,
The President of the Federal Republic of Germany,
The President of the French Republic,
The President of the Italian Republic,
Her Royal Highness the Grand Duchess of Luxembourg,
Her Majesty the Queen of the Netherlands,.and
The Council of the European Economic Community,
of the one part, and
The President of the Republic.of Turkey,
of the other part,
meeting at Ankara, on the twelfth day of September in the year one thousand nine hundred -and sixty-three,
for the signature of the Agreement establishing an Association between the European Economic Community and Turkey,
have adopted the following texts:
Agreement establishing an Association between the European Economic Community and Turkey and the Protocol listed below:
Protocol No 1: Provisional Protocol
Protocol No 2: Financial Protocol
The Plenipotentiaries have furthermore adopted the Declarations which are listed below and annexed to this Act (Annex I):
1. Declaration of Intent on dried grapes, in connection with Article 2 of the Provisional Protocol,
2. Interpretative Declaration on the value of the unit of account referred to in Article 2 of the Financial Protocol,
3. Interpretative Declaration on the definition of "Contracting Parties" used in the Agreement of Association, and taken note of the Declarations of the Government of the Federal Republic of Germany which are listed below and annexed to this Act (Annex II}:
1. Declaration on the definition of the expression "German national",
2. Declaration on the application of the Agreement to Berlin.
The Plenipotentiaries have agreed that the Declarations annexed to this Act shall be subjected, in the same manner.as. for the Agreement establishing an Association between the European Economic Community and Turkey, to any procedures that may be necessary to ensure their validity.
In witness whereof, the undersigned Plenipotentiaries have signed this Final Act.
Done at Ankara, on the twelfth day of September in the year one thousand nine hundred and sixty-three.
For His Majesty the King of the Belgians,
For the President of the Federal Republic of Germany,
For the President of the French Republic,
For the President of the Italian Republic,
For Her Royal Highness the Grand Duchess of Luxembourg,
For Her Majesty the Queen of the Netherlands.
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The parity of the currency of a Mémber State of the Community: in-relation to the unit of account defined in-paragraph-1 shall be the relation between the weight of fine gold contained in the unit of account and the weight of fine gold corresponding to the par value of that currency communicated to the International Monetary Fund. If no par-value has been communicated, or if exchange rates differing from the par value by a margin exceeding that authorized by the International Monetary Fund are applied to current payments, the weight-of fine gold corresponding to the parity of the currency shall be calculated on the basis of the exchange rate for a currency directly or indirectly expressed in and convertible into gold which is applied in the Member State to-current payments, on the day of the calculation, and on-the basis of the par value communicated to the International Monetary Fund for that~con- vertible currency.
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. The unit of account defined in paragraph 1 shall remain unchanged throughout the period in which the Financial Protocol is in force. If, however, before the end of that period a uniform proportionate change in the par values of all currencies in relation to gold should be decided by the International Monetary Fund under Article 4, Section 7, of its Articles of Agreement, the weight of fine gold contained in the unit of account shall alter in inverse ratio to that change.
If one or more Member States do not apply the decision taken by the International Monetary Fund as referred to in the preceding subparagraph, the weight of fine gold contained in the unit of account shall alter in inverse ratio to the change decided by the International Monetary Fund. The Council of the European Com- munities shall, however, examine the situation thus created and shall take the necessary measures, acting by a qualified majority, after receiving a proposal from the Commission and the opinion of the Monetary Committee.
31, 12.77
Official Journal of the European Communities
No L 361/43
Interpretative Declaration on the definition of the expression âContracting Partiesâ used in the Agreement of Association
The Contracting Parties agree that for the purposes of the Agreement of Association âContracting Partiesâ means the Community-and the Member States or alternatively the Member States alone or the Community alone on the one hand, and the Turkish Republic on the other. The meaning to be given to this expression in each particular case is to be deduced from the context of the Agreement and from the corresponding provisions of.the Treaty establishing. the Community. In certain circumstances: âCon- tracting Partiesâ may; during the transitional period of the Treaty establishing the Community, mean the Member States, and after the expiry of that period mean the Community.
Declarations by the Government of the Federal Republic of Germany
1. Declaration on the definition of the expression âGerman nationalâ
All Germans as defined in the Basic Law forthe Federal: Republic of Germany shall be considered nationals of the Federal Republic of Germany.
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. Declaration on the application of the Agreement-to Berlin
The Agreement of Association shal! apply equally to Land Berlin unless the Govern- ment of-the Federal Republic of Germany makes a-declaration to the contrary.to the other Contracting Parties within the three months following the entry into force of the Agreement.