3

(HD) The ad

of > holder of the right is acceptable. It is

understood that the 'companies' referred to in Art. 3(3)(b)(ii) of

Directive 87/54/EEC can be considered to be legal entities, even if

in some Member States forms of Incorporation may exist which do not

confer full legal personality.

(iv) This definition is acceptable.

(v)

This definition and the consequent change to "contracting party"

takes account of the Community proposal (Article A).

(VI) This definition should, If possible, be avoided. However, due to

the fact that at least two important Treaty provisions make

reference to the territory of a contracting party (Articles 3(1)

and 5) this might prove difficult. As a compromise the following

modification could be proposed :

and, where a Contracting

14

Party is an Intergovernmental Organisation, the territory in which

its Constituting Treaty applies, on the terms and conditions laid

down in that Treaty."

Such a modification of the proposed text is necessary to take

account of the fact that the territory of some Member States is not entirely Identical with the jurisdiction of the Community1.

In fact the EEC Treaty applies to the geographical extent of the

territory defined In Art. 227 of that Treaty, the acts taken In

application of that Treaty and under the conditions specified in

these texts.

Because of the relative complexity of this matter, it would be

preferable to avoid getting into any discussion which might result

in having to explain what is meant by the "territory of the EEC",

as this would have the potential to stimulate more arguments from

those states who are not in favour of the Treaty.

1. (e.g. Greenland is part of the territory of Denmark, but in accordance

with the Treaty of 13.3.1984 based on Art. 236 EEC Greenland has the

status of an associated territory.

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