Ambassador Sooklal indicated that the South African members would study the proposal and comment at a later stage. He pointed out that South Africa agreed with the principle, but pointed out that the draft terms of reference did not have South Africa's agreement and yet the Programme Management Unit (PMU) of the Dialogue Facility was functioning. He informed the meeting that the Director-General of the Joint Cooperation Council had informed the EU that South Africa would suspend interaction with the PMU until such stage as an agreement on the terms of reference has been developed.