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AGREEMENT

in the form of an Exchange of Letters on fisheries arrangements between the European Economic Community and the Kingdom of Morocco, applicable on a preliminary basis from 1 August to 31 December 1987

Rabat, 1 August 1987

Letter No 1

Sir,

The proposals you have sent us for the conclusion of a 'preliminary agreement' on sea fishing contain new principles which prejudge future fisheries relations with the EEC.

The aim is for Morocco to provide for a transitional period enabling the Spanish fishing fleet to continue its fishing activities in Moroccan waters after 31 July 1987.

Pending the conclusion of a Morocco-EEC fisheries agreement, which must fall within the framework of the principles set out in the letter from His Majesty King Hassan II to Mr Jacques Delors, President of the Commission of the European Communities, concerning the future of fisheries relations between the two Parties, Morocco proposes to the Community that the fishing opportunities granted under the Morocco-Spain fisheries agreement of 1 August 1983 be extended until the end of December 1987.

To that end, the validity of licences currently held by vessels flying the flag of a Member State of the Community and authorized to fish in Moroccan waters until 31 July 1987 shall be extended pending the issue of new licences.

Financial compensation relating to the extension or renewal of the licences referred to above shall be paid in accordance with the Community procedures set out in the Annex to this letter.

Please accept, Sir, the assurance of my highest consideration.

Abdellatif FILALI

Minister of Foreign Affairs and Cooperation

of the Kingdom of Morocco

ANNEX

Procedures for the payment of financial compensation relating to the fisheries arrangements between the Community and Morocco for the period 1 August to 31 December 1987

- Fees applicable to shipowners holding licences shall remain at the same levels as applied on 31 July 1987.

- The Community shall pay financial compensation to the Govermment of Morocco corresponding pro rata temporis to that which the Spanish Government is required to pay under the fisheries agreement between Morocco and Spain of 1 August 1983 in accordance with the third subparagraph of Article 7 of that agreement. Compensation relating to the provision of credits will be equal to the grant equivalent, established in accordance with OECD practice, of a government credit of US $ 150 million and 100 million FAD credits provided for in Article 10 of the said Agreement.

Brussels, 1 August 1987

Letter No 2

Sir,

I have the honour to acknowledge receipt of your letter dated 1 August 1987, which reads as follows:

'The proposals you have sent us for the conclusion of a 'preliminary agreement' on sea fishing contain new principles which prejudge future fisheries relations with the EEC.

The aim is for Moroccco to provide for a transitional period enabling the Spanish fishing fleet to continue its fishing activities in Moroccan waters after 31 July 1987.

Pending the conclusion of a Morocco-EEC fisheries agreement, which must fall within the framework of the principles set out in the letter from His Majesty King Hassan II to Mr Jacques Delors, President of the Commission of the European Communities, concerning the future of fisheries relations between the two Parties, Morocco proposes to the Community that the fishing opportunities granted under the Morocco-Spain fisheries agreement of 1 August 1983 be extended until the end of December 1987.

To that end, the validity of licences currently held by vessels flying the flag of a Member State of the Community and authorized to fish in Moroccan waters until 31 July 1987 shall be extended pending the issue of new licences.

Financial compesation relating to the extension or renewal of the licences referred to above shall be paid in accordance with the Community procedures set out in the Annex to this letter.'

I should like to confirm, Sir, that the Community is in agreement with the fisheries arrangements and the implementing conditions provided therein.

Please accept, Sir, the assurance of my highest consideration.

A. CORDOSO E CUNHA

Member of the Commission

of the European Communities

'ANNEX

Procedures for the payment of financial compensation relating to the fisheries arrangements between the Community and Morocco for the period 1 August to 31 December 1987

- Fees applicable to shipowners holding licences shall remain at the same levels as applied on 31 July 1987.

- The Community shall pay financial compensation to the Government of Morocco corresponding pro rata temporis to that which the Spanish Government is required to pay under the fisheries agreement between Morocco and Spain of 1 August 1983 in accordance with the third subparagraph of Article 7 of that agreement. Compensation relating to the provision of credits will be equal to the grant equivalent, established in accordance with OECD practice, of a government credit of US $ 150 million and 100 million FAD credits provided for in Article 10 of the said Agreement.'