23. 12. 89 Official Journal of the European Communities No L 375/11 COUNCIL REGULATION (EEC) No 3906/89 of 18 December 1989 on economic aid to the Republic of Hungary and the Polish People’s Republic THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, and in particular Article 235 thereof, Having regard to' the proposal from the Commission, Having: regard to the opinion of the European Parliament ('), Whereas the Community and-its Member States have decided to make ‘a concerted effort together with certain third countries, in order to implement:measures intended - to support the process of economic and social reform under way in Hungary and Poland; Whereas the Commlvmity‘has concluded Agreements on trade and commercial and economic cooperation with the Republic of Hungary and the Polish People’s Republic ; Whereas the Community must have the necessary means at its disposal to be able to implement such measures ; Wheteas the fiélds in which measures— are to be undertaken should be determined; Whereas it is necessary to estimate the amount of Community financial resources needed to carry out these measures in 1990 ;- Whereas -the implementation of such measures will help to achieve the Community’s aims and whereas the Treaty does not provide, for the measures in question, powers other than those of Article 235, HAS ADOPTED THIS REGULATION : Article .1 The Community shall implement economic aid measures in - favour of the Republic of Hungary and the Polish Peoples Republic in accordance Wlth the criteria laid down in this Regulation. Article 2 The amount of Community .resources as necessary to carry out the measures introduced by this Regulation amount-to ECU 300 million for the period expiring on 31 December 1990. () Opinion delivered on 14 December 1989 (not yet published in the Official Journal). Article 3 1. The aid shall be used primarily to support the process of reform in Poland and Hungary, in particular by financing or participating in the financing of projects aimed:' at economic. restructuring. Such projects or ceooperation measures should be undertaken in particular in the areas of agriculture, industry, investment, energy, training, environmental protection; trade and services; they should be aimed in particular at the private sector in Hungary and Poland. 2. Account shall be taken, inter alia, of the preferences and wishes expressed by the recipient countries concerned in the choice of measures ‘to be- financed pursuant to this Regulation. Article 4 The aid shall be granted by the Community, either independently or in the form of cofinancing with the Member States, the European Investment :Bank, third countries or multilateral bodies or the recipient countries themselves. Article 5 Community aid shall in general be in the form of grants. They may generate funds that can be used for financing cooperation projects or measures. Article 6 1. The aid may cover expenditure on imports and local expenditure needed- to carry out the projects. and programmes. Taxes, duties and charges and the purchase of property shall be- excluded from Community financing. 2. Maintenance and operating costs. may be covered for training and research programmes and for other projects ; however, for the latter such-costs may be covered only in the start-up -stage and shall be degressive. 3. However, in the case of cofinancing, account shall be taken in:each case of the procedures applied by the other providers of capital. Article 7 1. In the case of assistance exceeding ECU 50 000 for which the Community is the sole source of external aid, participation in invitations to tender and contracts shall be open on equal terms to all natural and legal persons of the Member States and of Poland and Hungary.