The Executive Committee noted the report of its Subgroup on the Production Sector and decided to adopt the following recommendations of the Subgroup:
(a) Requests for project preparation funds could be forwarded to the Subgroup for submission to the Executive Committee once preliminary production data and the draft sectoral plan for the country had been submitted;
(b) With regard to the project proposal for which China had received preparation funds, if China was disposed to submit an innovative project proposal prior to the final receipt of the audited data, it could informally submit such a project proposal to the Subgroup Facilitator for circulation to members of the Subgroup for comment and an opinion on whether the project as formulated in a way could possibly be reviewed by the Sub-Committee on Project Review at its next meeting in Cairo in November 1998;
(c) If the Subgroup Facilitator determined, after examining the comments, that the Sub‑Committee on Project Review might review the project, the Facilitator would make the specific comments on the proposal available to the Sub-Committee on Project Review. If the Sub-Committee decided to review and to recommend approval of the project, final approval would probably be subject to confirmation of the figures therein by the technical audit and the presentation of a final sectoral strategy;
(d) Other CFC-producing Article 5 countries wishing to request funds for project preparation must meet the requirements laid down in earlier decisions of the Executive Committee in this regard, submit the data and a draft sectoral strategy according to the approved format so that the procedure outlined for China could be followed in their case as well.