THE COUNCIL

HAVING REGARD to Article 5(b) of the Convention on the Organisation for Economic Co-operation and Development of 14th December 1960;

HAVING REGARD to the Recommendation of the Council of 27th July 1965 on the Liberalisation of Long-Term Power Exchange between O.E.C.D. European Member Countries [Doc. No. C(65)88];

HAVING REGARD to the Report by the Energy Committee of 4th September 1967 on Mutual Assistance Contracts concerning Large Thermal Generating Units in O.E.C.D. European Member Countries [Doc. No. EN(67)6];

CONSIDERING that mutual assistance contracts are likely to encourage the construction of large thermal units which permit lower electricity production costs;

On the proposal of the Energy Committee;

RECOMMENDS the Governments of European Member countries:

(a) to encourage the conclusion of mutual assistance contracts for large thermal generating units in different countries;

(b) to undertake not to make any restrictions, except in case of an exceptional emergency, on the provision of supply under such contracts;

(c) to undertake not to levy any tax on imports or exports that might be prejudicial to the exchange of electricity under these contracts.

In adopting this Recommendation, the Council:

1.            AGREED to the derestriction of the Report by the Energy Committee of 4th September 1967, referred to above;

2.            AGREED that sub-paragraph (c) of the Recommendation would not preclude countries from making adjustments in connection with Added Value Taxes;

3.            NOTED the statement by the Delegate for Denmark.