15. 8. 91 Official Journal of the European Communities No L 227/33 (Acts whose publication is not obligatory) COUNCIL COUNCIL DECISION of 22 July 1991 on financial aid for Israel and the Palestinian population of the Occupied Territories (91/408/EEC) 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 Parli- ament (3, "Whereas the Community wishes to mount an operation to give financial aid to Israel and the Palestinian popula- tion of the territories on the West Bank of the River Jordan and the Gaza Strip occupied by Israel (hereinafter referred to as the ‘Occupied Territories’) in order to help reduce the adverse consequences of the Gulf conflict; Whereas the economic and financial capacity of Israel and of the Occupied Territories is such that financial aid to Israel should take the form of a medium-term subsi- dized loan while than intended for the Palestinian popu- lation of the Occupied Territories should take the form of grants ; Whereas the Community must have the means necessary to implement this financial aid; Whereas provision should be made for the Community financial resources needed for the interest-rate subsidy and grant components to carry out this operation; whereas the approximations actually available will be esta- blished during the budgetary procedure in accordance with the financial perspectives annexed to the Interinsti- tutional Agreement on budgetary discipline and improve- () O] No C 111, 27. 4. 1991, p. 3. () OJ No C 183, 15. 7. 1991. ment of the budgetary procedure in accordance with the financial perspectives annexed to the Interinstitutional Agreement on budgetary discipline and improvement of the budgetary procedure of 29 June 1988 (%); Whereas the breakdown of funds as between Israel and the Palestinian population of the Occupied Territories is based on an evaluation of their respective requirements in the light of the scale of the social and economic effects of the conflict, the sections of the population affected and a comparison of living standards ; Whereas the loan to Israel will have to be financed by Community borrowing on the capital markets ; whereas this loan must be administered by the Commission ; Whereas implementation of this operation is designed to contribute to the achievement of Community objectives ; Whereas the Treaty does not provide, for the adoption of this Decision, for powers other than those of Article 235, HAS DECIDED AS FOLLOWS: Article 1 The Community shall provide financial aid for Israel and . the Palestinien population of the Occupied Territories, composed as follows : — ECU 160 million in the form of a loan, accompanied by an interest rate subsidy of ECU 27,5 million — ECU 60 million in the form of grants. () OJ No L 185, 15. 7. 1988, p. 33.