Attachment

United Kingdom

AGREEMENT

between the European Economic Community (EEC) and Belgium, Denmark, the Federal Republic of Germany, France, Ireland, Italy, Luxembourg, the Netherlands, the United Kingdom, Member States of that Community (Member States), on the one hand, and the International Development Association (Association), on the other hand

WHEREAS:

(a)

The EEC has decided to contribute to the Special Action Programme decided at the Conference on International Economic Cooperation in order to help meet the immediate needs of individual low-income countries facing general problems of transfer of resources hampering their development;
(b)

In order to implement the abovementioned decision the EEC has requested the Association to administer for them a special account (Special Action Account) in the aggregate amount of the equivalent of 385 million dollars, to be kept separate and apart from all other accounts and assets of the Association and to be used for credits (Special Action Credits) in amounts which will be additional, in respect of both programme and project lending, to the amount of the Association's planned programme for the period of commitment of the Special Action Account for each country eligible to receive them and otherwise on the basis set forth below;
(c)

It is the objective of the EEC and the Member States, and the Association shall use its best efforts to assure, that the entire amount to be contributed by the Member States be committed within six months from the effective date of the Agreement and disbursed on credits as far as possible within two years from the effective date;
(d)

The EEC and the Association have consulted regarding the proposed implementation and administration of this Agreement and the commitment of funds to assure a broad and balanced geographical distribution thereunder. To that end the Association has furnished the EEC with a table showing the manner in which it would propose to apply the criteria set forth in this Agreement;