ANKARA AGREEMENT

Agreement Establishing an Association Between the European Economic Community and

Turkey (Signed at Ankara, 1 September 1963)

PREAMBLE

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

and

THE COUNCIL OF THE EUROPEAN ECONOMIC COMMUNITY

of the one part, and

THE PRESIDENT OF THE REPUBLIC OF TURKEY,

of the other part,

DETERMINED to establish ever closer bonds between the Turkish people and the peoples
brought together in the European Economic Community;

RESOLVED to ensure a continuous improvement in living conditions in Turkey and in the

European Economic Community through accelerated economic progress and the harmonious
expansion of trade, and to reduce the disparity between the Turkish economy and the
economies of the Member States of the Community;

MINDFUL both of the special problems presented by the development of the Turkish
economy and of the need to grant economic aid to Turkey during a given period;

RECOGNIZING that the support given by the European Economic Community to the efforts
of the Turkish people to improve their standard of living will facilitate the accession of
Turkey to the Community at a later date;

RESOLVED to preserve and strengthen peace and liberty by joint pursuit of the ideals
underlying the Treaty establishing the European Economic Community;

HAVE DECIDED to conclude an Agreement establishing an Association between the

European Economic Community and Turkey in accordance with Article 238 of the Treaty
establishing the European Economic Community, and to this end have designated as their
Plenipotentiaries:
HIS MAJESTY THE KING OF THE BELGIANS:

Mr. Paul-Henri SPAAK,

Deputy Prime Minister and Minister for Foreign Affairs;

THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY:

Dr. Gerhard SCHRODER,

Minister for Foreign Affairs;

THE PRESIDENT OF THE FRENCH REPUBLIC:

Mr. Maurice COUVE DE MURVILLE,

Minister for Foreign Affairs;

THE PRESIDENT OF THE ITALIAN REPUBLIC:

Mr. Emilio COLOMBO,

Ministry for the Treasury;

HER ROYAL HIGHNESS THE GRAND DUCHESS OF LUXEMBOURG:

Mr. Eugene SCHAUS,

Vice-President of the Government and Minister for Foreign Affairs;

HER MAJESTY THE QUEEN OF THE NETHERLANDS:

Mr. Joseph M. A. H. LUNS,

Minister for Foreign Affairs;

THE COUNCIL OF THE EUROPEAN ECONOMIC COMMUNITY:

Mr. Joseph M. A. H. LUNS,

President in Office of the Council of the European Economic Community and Minister for
Foreign Affairs in the Netherlands;

THE PRESIDENT OF THE REPUBLIC OF TURKEY:

Mr. Feridun Cemal ERKIN,

Minister for Foreign Affairs;

WHO, having exchanged their Full Powers, found in good and due form,
HAVE AGREED AS FOLLOWS:

TITLE I

PRINCIPLES

Article 1

By this Agreement an Association is established between the European Economic Community

and Turkey.

Article 2

1. The aim of this Agreement is to promote the continuous and balanced strengthening of
trade and economic relations between the Parties, while taking full account of the need to
ensure an accelerated development of the Turkish economy and to improve the level of
employment and living conditions of the Turkish people.

2. In order to attain the objectives set out in paragraph 1, a customs union shall be
progressively established in accordance with Article 3, 4 and 5

3. Association shall comprise:

(a) a preparatory stage;

(b) a transitional stage;

(c) a final stage.

Article 3

1. During the preparatory stage Turkey shall, with aid from the Community, strengthen its
economy so as to enable it to fulfil the obligations which will devolve upon it during the
transitional and final stages.

The detailed rules for this preparatory stage in particular those for aid from the Community,
are set out in the Provisional Protocol and in the Financial Protocol to this Agreement.

2. The preparatory stage shall last five years, unless it should be extended in accordance with
the conditions laid down in the Provisional Protocol.

The change-over to the transitional stage shall be effected in accordance with Article 1 of the
Provisional Protocol.

Article 4

1. During the transitional stage the Contracting Parties shall, on the basis of mutual and
balanced obligations:

- establish progressively a customs union between Turkey and the Community;

- align the economic policies of Turkey and the Community more closely in order to ensure
the proper functioning of the Association and the progress of the joint measures which this
requires.

2. This stage shall last not more than twelve years, subject to such exceptions as many be
made by mutual agreement. The exceptions must not impede the final establishment of the
customs union within a reasonable period.

Article 5

The final stage shall be based on the customs union and shall entail closer coordination of the
economic policies of the Contracting Parties.

Article 6

To ensure the implementation and the progressive development of the Association, the
Contracting Parties shall meet in a Council of Association which shall act within the powers
conferred upon it by this Agreement.

Article 7

The Contracting Parties shall take all appropriate measures, whether general or particular, to
ensure the fulfilment of the obligations arising from this Agreement.

They shall refrain from any measures liable to jeopardize the attainment of the objectives of
this Agreement.

TITLE II

IMPLEMENTATION OF THE TRANSITIONAL STAGE

Article 8

In order to attain the objectives set our in Article 4, the Council of Association shall, before
the beginning of the transitional stage and in accordance with the procedure laid down in
Article 1 of the Provisional Protocol, determine the conditions, rules and timetables for the
implementation of the provisions relating to the fields covered by the Treaty establishing the
Community which must be considered; this shall apply in particular to such of those fields as
are mentioned under this Title and to any protective clause which may prove appropriate.

Article 9

The Contracting Parties recognize that within the scope of this Agreement and without
prejudice to any special provisions which may be laid down pursuant to article 8, any
discrimination on grounds of nationality shall be prohibited in accordance with the principle
laid down in Article 7 of the Treaty establishing the Community.

Chapter 1

The customs union

Article 10

1. The customs union provided for in Article 2 (2) of this Agreement shall cover all trade in
goods.

2. The customs union shall involve:

- the prohibition between member States of the Community and Turkey, of customs duties on
imports and exports and of all charges having equivalent effect, quantitative restrictions and
all other measures having equivalent effect which are designed to protect national production
in a manner contrary to the objectives of this Agreement;

- the adoption by Turkey of the Common Customs Tariff of the Community in its trade with
third countries, and an approximation to the other Community rules on external trade.

Chapter 2

Agriculture

Article 11

1. The Association shall likewise extend to agriculture and trade in agricultural products, in
accordance with special rules which shall take into account the common agricultural policy of
the Community.

2. "Agricultural produces" means the products listed in Annex II to the Treaty establishing the
Community, as at present supplemented in accordance with Article 38 (3) of that Treaty.

Chapter 3

Other economic provisions

Article 12

The Contracting Parties agree to be guided by Articles 48, 49 and 50 the Treaty establishing
the Community for the purpose of progressively securing freedom of movement for workers
between them.

Article 13

The Contracting Parties agree to be guided by Articles 52 to 56 and Article 58 of the Treaty
establishing the Community for the purpose of abolishing restrictions on freedom of
establishment between them.

Article 14

The Contracting Parties agree to be guided by Articles 55,56 and 58 to 65 of the Treaty
establishing the Community for the purpose of abolishing restrictions on freedom to provide
services between them.
Article 15

The rules and conditions for extension to Turkey of the transport provisions contained in the
Treaty establishing the Community, and measures adopted in implementation of those
provisions shall be laid down with due regard to the geographical situation of Turkey.

Article 16

The Contracting Parties recognize that the principles laid down in the provisions on
competition, taxation and the approximation of laws contained in Title I of Part III of the
Treaty establishing the Community must be made applicable in their relations within the
Association.

Article 17

Each State party to this Agreement shall pursue the economic policy needed to ensure the
equilibrium of its overall balance of payments and to maintain confidence in its currency,
while taking care to ensure a continuous, balanced growth of its economy in conjunction with
stable prices.

Each State party to this Agreement shall pursue a policy with regard to rates of exchange
which ensures that the objectives of the Association can be attained.

Article 19

The Member States of the Community and Turkey undertake to authorize, in the curency of
the country in which the creditor or the beneficiary resides, any payments or transfers
connected with the movement of goods, services or capital, and any transfers of capital or
earnings, to the extent that the movement of goods, services, capital and persons between
them has been liberalized pursuant to this Agreement.

Article 20

The Contracting Parties shall consult each other with a view to facilitating movements of
capital between Member States of the Community and Turkey which will further the
objectives of this Agreement.

They shall actively seek all means of promoting the investment in Turkey of capital from
countries of the Community which can contribute to Turkish economic development.

With respect to arrangements for foreign capital residents of all Member States shall be
entitled to all the advantages, in particular as regards currency and taxation, which Turkey
accords to any other Member State or to a third country.

Article 21

The Contracting Parties hereby agree to work out a consultation procedure in order to ensure
coordination of their commercial policies towards third countries and mutual respect for their
interests in this field, inter alia in the event of subsequent accession to or association with the
Community by third countries.
TITLE III

GENERAL AND FINAL PROVISIONS

Article 22

1. In order to attain the objectives o this Agreement the Council of Association shall have the
power to take decisions in the cases provided for therein. Each of the Parties shall take the
measures necessary to implement the decisions taken. The Council of implement the decisions
taken. The Council of Association may also make appropriate recommendations.

2. The Council of Association shall periodically review the functioning of the Association in
the light of the objectives of this Agreement. During the preparatory stage, however, such
reviews shall be limited to an exchange of views.

3. Once the transitional stage has been embarked on the Council of Association shall adopt
appropriate decisions where, in the course of implementation of the of the Association
arrangements, attainment of an objective of this Agreement calls for joint action by the
Contracting Parries but the requisite powers are not granted in this Agreement.

Article 23

The Council of Association shall consist of members of the Governments of the Member
States and members of the Council and of the Commission of the Community on the hand and
of members of the Turkish Government on the other.

The members of the Council of Association may arrange to be represented in accordance with
its rules of procedure.

The Council of Association shall act unanimously.

Article 24

The office of President of the Council of Association shall be held for a term of six months by
a representative of the Community and a representative of Turkey alternately. The term of
office of the first President may be shortened by a decision of the Council of Association.

The Council of Association shall adopt its rules of procedure.

The Council of Association may decide to set up committees to assist in the performance of
its tasks, and in particular a committee to ensure the continuing cooperation necessary for the
proper functioning of this Agreement.

The Council of Association shall lay down the terms of reference of these committees.

Article 25

1. The Contracting Parties may submit to the Council of Association any dispute relating to
the application or interpretation of this Agreement which concerns the Community, a Member
State of the Community, or Turkey.
2. The Council of Association may settle the dispute by decision; it may also decide to submit
the disputc to the Court of Justice of the European Communities or to any existing court or
tribunal.

3. Each Party shall be reguired to take the measures necessary to comply with such decisions.

4. Where the dispute cannot be settled in accordance with paragraphs 2 of this Article, the
Council of Association shall determine, in accordance with Article 8 of this Agreement, the
detailed rules for arbitration or for any other judicial procedure to which the Contracting
Parties may resort during the transitional and final stages of this Agreement.

Article 26

This Agreement shall not apply to products within the province of the European Coal and
Steel Community.

Article 27

The Council of Association shall take all appropriate steps to promote the necessary
cooperation and contacts between the European Parliament, the Economic and Social
Committee and other organs of the Community on the one hand and the Turkish Parliament
and the corresponding organs in Turkey on the other.

During the preparatory state, however, such contacts shall be limited to relations between the
European Parliament and the Turkish Parliament.

Article 28

As soon as the operation of this Agreement has advanced far enough to justify envisaging full
acceptance by Turkey of the obligations arising out of the Treaty establishing the Community,
the Contracting Parties shall examine the possibility of the accession of Turkey to the
Community.

Article 29

1. This Agreement shall apply to the European territories of the Kingdom of Belgium, of the
Federal Republic of Germany, of the French Republic, of the Italian Republic, of the Grand
Duchy of Luxembourg and of the Kingdom of the Netherlands on the one hand and to the
territory of the Turkish Republic on the other.

2. The Agreement shall also apply to the French overseas departments so far as concerns
those of the fields covered by it which are listed in the first subparagraph of Article 227 (2) of
the Treaty establishing the Community.

The conditions for applying to those territories the provisions of this Agreement relating to
other fields shall be decided at a later date by agreement between the Contracting Parties.

Article 30
The Protocols annexed to this Agreement by common accord of the Contracting Parties shall
from an integral part thereof.

Article 31

This Agreement shall be ratified by the Signatory States in accordance with their respective
constitutional requirements, and shall become binding on the Community by a decision of the
Council taken in accordance with the Treaty establishing the Community and notified to the
Parties to this Agreement.

The instruments of ratification and the notifications of conclusion shall be exchanged at

Brussels.

Article 32

This Agreement shall enter into force on the first day of the second month following the date
of exchange of the instruments of ratification and the notification referred to in Article 31.

Article 33

This Agreement is drawn up in two copies in the Dutch, French, German, Italian and Turkish
languages, each of these texts being equally authentic.

PROTOCOL No 1

Provisional Protocol

THE CONTRACTING PARTIES,

RECOGNIZING the importance to the Turkish economy, particularly in the preparatory

stage, of exports of tobacco, dried grapes, dried figs and hazelnuts;

DESIRING to adopt the Provisional Protocol provided for in Article 3 of the Agreement of
Association,

HAVE AGREED AS FOLLOWS:

Article 1

1. Four years after the entry into of this agreement, the Council of Association shall consider
whether, taking into account the economic situation of Turkey, it is able to lay down, in the
form of an additional Protocol, the provisions relating to the conditions, detailed rules and
timetables for implementing the transitional stage referred to in Article 4 of the Agreement.

The additional Protocol shall be signed by the Contracting Parties and shall enter into force
after completion of the respective constitutional procedures.

2. If the additional Protocol has not been adopted by the end of the fifth year, the procedure
laid down in paragraph 1 shall be set in motion again after a period which shall be fixed by
the Council of Association and which shall not exceed three years
3. The provisions of this Protocol shall continue to apply until the additional Protocol enters
into force or until the end the tenth year, whichever is the earlier.

If, however, the additional Protocol has been adopted but has not entered into force by the end
to the tenth year, this Provisional Protocol shall be extenuated for more than one year.

Should the additional Protocol not have been adopted by the end of the minth year, the
Council of Association shall decide on the arrangements to be applied in respect of the
preparatory stage from the end of the tenth year.

Article 2

From the date of the entry into force of this Protocol, the Member States of the Community
shall open the following annual tariff quotas for imports originating in and coming from
Turkey:

(a) 24.01 - Unmanufactured tobacco: tobacco refuse

Belgo-Luxembourg Economic

union 1 250 metric tons

Federal Republic to Germany 6 600 metric tons

France 2 550 metric tons

Italy 1 500 metric tons

Netherlands 600 metric tons

Each Member State shall apply to products imported under these tariff quotas the customs
duty which it applies to imports of like products within the framework of the Agreement of
Association signed by the Community of 9 July 1961.

(b) ex 08.04 - Dried grapes (in containers of a net content not exceeding 15 kg)

Belgo-Luxembourg Economic

Union 3 250 metric tons

Federal Republic of Germany 9 750 metric tons

France 2 800 metric tons

Italy 7 700 metric tons

Netherlands 6 500 metric tons

Each Member State shall apply to products imported under these tariff quotas the customs
duty which it applies to imports of like products within the framework of the Agreement of
Association signed by the Community on 9 July 1961.

(c) ex 08.03 - Dried figs (in containers of a net content not exceeding 15 kg)

Belgo-Luxembourg Economic

Union 840 metric tons

Federal Republic of Germany 5 000 metric tons

France 7 000 metric tons

Netherlands 160 metric tons

In the case of dried figs imported under these tariff quotas each Member State shall, pending
the final alignment of the national rates of duty of Member States are finally aligned on the
Common Customs Tariff, the Community shall adopt, for dried figs, the tariff measures
necessary to ensure that Turkey retains commercial advantages equivalent to hose which it
has under the preceding paragraph, taking into account the provisions of Article 3.

(d) ex 08.05 - Nuts, fresh, or dried, shelled or not: Hazelnuts

Belgo-Luxembourg Economic

Union 540 metric tons

Federal Republic of Germany 14 500 metric tons

France 1 250 metric tons

Netherlands 710 metric tons

Each Member State of the Community shall apply an ad valorem customs duty of 2-5% to
products imported under this tariff quota.

Furthermore, on the entry into force of this Agreement, the Member States of the Community
shall abolish all intra-Community customs duties on this product and shall apply the Common
Customs Tariff in its entirety.

Article 3

From the date the final alignment of the national duties applied by Member States of the
Community to products mentioned in Article 2 with those of the Common Customs Tariff, the
Community shall each year open tariff quotas in favour of Turkey equal to the total of the
national quotas open at the date of that final alignment. This procedure shall be implemented
without prejudice to any decisions which may have been taken by the Council of Association
pursuant to Article 4 in respect of the following calender year.
As regards hazelnuts, however, this procedure shall not be implemented until the national
duties of Member States of the Community for all the three other products have been brought
into line with those of the Common Customs Tariff.

Article 4

From the second year following the entry into force of this Agreement, the Council of
Association may decide to increase the tariff quotas referred to in Article 2 and 3. unless the
Council of Association should decide otherwise, these increases shall remain in force. Any
increase shall take effect only from the beginning of the next calendar year.

Article 5

If this Agreement does not enter into force at the beginning of a calendar year, member States
of the Community shall, for the period from the date of entry into force of this Agreement
until the beginning of the next calendar year, open tariff quotas of one twelfth of the tonnages
mentioned in Article 2 for each month between the date of entry into force of this Agreement
and the beginning of the next calendar year.

From the date entry into force of this Agreement, however, the Council of Association may
decide to increase the tariff quotas opened pursuant to the preceding paragraph so as to take
into account the seasonal nature of exports of the products in question.

Article 6

At the end of the third year after the entry into force of this Agreement, the Council of
Association may take appropriate measures to promote the disposal on the Community market
of products other than those mentioned in Article 2.

Article 7

Once a common agricultural policy has been introduced for tobacco hazelnuts or dried figs,
the Community shall take any measures necessary to ensure that Turkey retains export
openings equivalent to those which it has under this Protocol, taking into account the
arrangements laid down for that common agricultural policy.

Article 8

If the Community should open tariff quotas for products mentioned in Article 2 of this
Protocol, Turkey shall not, as regards the rates of customs duty chargeable within the
framework of those tariff quotas, be treated less favourably than a country which is not this
Agreement.

Article 9

Turkey shall endeavour to extend to all Member States of the Community the most favourable
treatment which it grants to one or more of them.

Article 10
From the beginning of the preparatory stage each Contracting Party may bring before the
Council of Association any difficulties regarding the right of establishment, the provision of
services, transport or competition. Where necessary, the Council of Parties any appropriate
recommendations for the solution of such difficulties.

Article 11

This Protocol shall be annexed to the Agreement.

PROTOCOL No 2

Financial Protocol

THE CONTRACTING PARTIES,

DESIRING to promote the accelerated development of the Turkish economy in furtherance of

the objectives of the Agreement of Association,

HAVE AGREED AS FOLLOWS:

Article 1

Request 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.

Article 2

Projects for which requests approved shall be financed by loans. Theses 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.

Article 3

Requests for financing submitted by Turkish undertakings shall not be approved without the
agreement of the Turkish Government.

Article 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 quarantee from the Turkish State.

Article 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 egual 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.

Article 6

Turkey undertakes to allow recipients of these loans to obtain the currency necessary for the
repayment of the loans and of interest thereon.

Article 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.

Article 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 the Turkish State.

Article 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 on 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 e2 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 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.

Declaration of Intention concerning dried grapes with reference to Article 2 of the Provisional
Protocol

The Community declares that it does not envisage the establishment of a common
organization of the market in dried grapes.

**********

Interpretative declaration on the value of the unit of account in the context of Article 2 of the
Financial Protocol

The Contracting Parties declare that:

1. The value of the unit of account used to express the amount mentioned in Article 2 of the
Financial Protocol shall be 0-88867088 grammes of fine gold.
2. The parity of the currency of a Member 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 weigh 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 shall be calculated on
the basis of the exchange rate for a currency 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 convertible currency.

3. 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 Communities 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.

Interpretative Declaration on the definition of the expression "Contracting Parties" used in the
Agreement of Association

The Contracting parties agree that for the purposes of the Agreement of Association
"Contracting Parties" 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 "Contracting Parties" 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 "German national"

All Germans as defined in the Basic Law for the Federal Republic of Germany shall be
considered nationals of the Federal Republic of Germany,

2. Declaration on the application of the Agreement to Berlin

The Agreement of Association shall apply equally to Land Berlin unless the Government 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.
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