THE COUNCIL,

Having regard to the Convention on the Organisation for Economic Co-operation and Development of 14th December 1960 and, in particular, Articles 2(c), 2(d), 2(e), 3 and 5(a) thereof;

Having regard to the Resolution of the Council of 21st January 1975 Establishing a Committee on International Investment and Multinational Enterprises and, in particular, paragraph 2 thereof [Doc. No. C(74)247(Final)];

TAKING NOTE of the Declaration by the Governments of OECD Member countries of 21st June 1976 on international investment incentives and disincentives;

On the proposal of the Committee on International investment and Multinational Enterprises;

DECIDES:

1.            Consultations will take place in the framework of the Committee on International Investment and Multinational Enterprises at the request of a Member country which considers that its interests may be adversely affected by the impact on its flow of international direct investments of measures taken by another Member country specifically designed to provide incentives or disincentives for international direct investment. Having full regard to the national economic objectives of the measures and without prejudice to policies designed to redress regional imbalances, the purpose of the consultations will be to examine the possibility of reducing such effects to a minimum.

2.            Member countries shall supply, under the consultation procedures, all permissible information relating to any measures being the subject of the consultation.

3.            This Decision shall be reviewed within a period of three years. The Committee on International Investment and Multinational Enterprises shall make proposals for this purpose as appropriate.