DRAFT

"A" ITEM NOTE

from: Permanent Representatives' Committee to: Council No. Cion proposals 11279/04 ESE 6 and 13883/04 ESE 12 COWEB 203 No. prev. doc. 14100/1/04 REV 1 ESE 13 COWEB 210 Subject: Adoption of a Council Regulation establishing an instrument of financial support for encouraging the economic development of the Turkish Cypriot community and amending Council Regulation (EC) No 2667/2000 on the European Agency for Reconstruction

1. The Permanent Representatives' Committee, at its meeting on 18 November 2004, reached ad referendum agreement on the text of the above-mentioned draft Regulation, as set out in doc. 14100/1/04 REV 1 ESE 13 COWEB 210. This text takes account of the Commission's amended proposal entrusting the European Agency for Reconstruction with the implementation of assistance to the Turkish Cypriot Community (doc. 13883/04 ESE 12 COWEB 203).

2. Given the importance of committing the remaining part of the financial assistance for the Turkish Cypriot community very soon and on the understanding that work and discussion should continue on all issues relevant to the follow-up of the Council conclusions on Cyprus of 26 April 2004, including those that formed the basis of the consultations held under the Luxembourg Presidency, as well as on the basis of Protocol Nr.10, the Permanent Representatives' Committee, at its meeting on 24 February 2006 agreed that the above-mentioned draft Regulation as set out in doc. 14100/1/04 REV 1, should be submitted to the Council for adoption at the earliest opportunity. The Council is therefore invited to:

- adopt the above-mentioned Regulation as it appears in do14101/04 ESE 14 COWEB 211
+ COR 1 following legal-linguistic revision;
- insert in its minutes the statements contained in Annex to this note.

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ANNEX

Statement by the Commission for the Council Minutes
Ad Article 3: Taking into account the existing political situation in Cyprus as well as the aim of integrating and reunifying the island, the Commission declares its readiness to consult the Government of the Republic of Cyprus about the major aspects of the implementation of assistance under this Regulation.

The Commission also declares its readiness to consult the Government of the Republic of Cyprus if feasibility studies leave doubt as to whether actions to be financed under this Regulation might affect property rights.

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Statement by the Commission for the Council Minutes
Ad Article 5: The Commission will ensure, in full respect of the internal decision-making procedures of the Agency, that any operational centre needed by the Agency for implementing the assistance will be established in the areas under the effective control of the Government of the Republic of Cyprus. This centre will accomplish its mission throughout the island.

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