RECOMMENDATION FOR A COUNCIL DECISION ON THE CONCLUSION OF THE AGREEMENT IN THE FORM OF AN EXCHANGE OF LETTERS BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE PEOPLE' S DEMOCRATIC REPUBLIC OF ALGERIA FIXING THE ADDITIONAL AMOUNT TO BE DEDUCTED FROM THE LEVY ON IMPORTS INTO THE COMMUNITY OF UNTREATED OLIVE OIL, ORIGINATING IN ALGERIA, FOR THE PERIOD 1 NOVEMBER 1987 TO 31 DECEMBER 1990


title: Recommendation for a COUNCIL DECISION authorizing the Commission to participate in the negotiation of the extension or replacement of the Food Aid Convention 1980 (submitted to the Council by the Commission)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (85) 558
Vol. 1985/0203
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak---                                                                                C0MC85)       558 f i n a l
      COMMISSION                                                                                Brussels,     11 O c t o b e r 1985
          OF THE
EUROPEAN COMMUNITIES                                                                                F O R O F F I C I A L USE O N L Y
    G en erai Se cre ta riat
                                                           R e c o m m e n d a tio n  fo r  a
                                                              COUNCIL D E C IS IO N
             a u th o r iz in g      th e    C o m m is s io n t o   p a r tic ip a te     in   th e   n e g o tia tio n     of th e
                         e x te n s io n   or    re p la c e m e n t  of    th e     Food   A id   C o n v e n tio n  1980
                                      (s u b m itte d    to   th e    C o u n c il b y   th e    C o m m is s io n )
        COMC85)           558 f i n a l
 ---pagebreak---                                  EXPLANATORY MEMORANDUM
                                         Summary
1. The life of the Food Aid Convention (F.A.C.) 1980, as already extended,
   will expire on 30.6.86.
2. At its meeting in closed session on 25.6.85 the Food Aid Committee of the
   International Wheat Agreement gave some preliminary consideration as to the
   future of the Convention on its expiry next year.
3. It was agreed that a special meeting of the Food Aid Committee should be
   held on 21.10.85 to look at possible ways of improving the current
   Convention.
4. At its next regular meeting in December 1985, the Committee will need to
   agree on any changes in the text in order that the Convention, as amended,
   may come into effect on 1.7.86.
5. The attached draft Decision presented by the Commission to the Council is
   intended to authorize the Commission to participate, with the assistance of
   the 113 Committee, in the coming discussions of the Food Aid Committee
   regarding the negotiation of a further extension to or replacement of the
   Food A i d , Convention 1980.
 ---pagebreak--- Introduction
1. The Food Aid Convention 1980 and the Wheat Trade Convention 1971 together
    comprise the International Wheat Agreement 1971. The linkage between the
    two Conventions should be retained.
2. A United Nations Conference to negotiate an International Arrangement to
    replace the International Wheat Agreement began in February 1978 and was
   adjourned sine die on 14.2.1979.
3. During the course of this Conference a wide measure of agreement was
   achieved on the terms of a new Food Aid Convention. This led to the
   elaboration of the text of a new Convention, which was formally established
   by the Conference open to all members of the Food Aid Committee at a
   meeting held on 6.3.1980.
4. The Food Aid Convention 1980, which came into operation on 1.7.80, had a
   duration of one year. Its life was, however, extended by protocol first
   until 30.6.83 and thereafter until 30.6.86.
5. Since its inception the Food Aid Convention 1980 has functioned to the
   satisfaction of its signatories (1). This being so, the Commission
   considers that it should be extended for a further period, and changes in
   the text should be kept to the minimum in order to avoid the risk of
   embarking on a fresh and prolonged negotiation.
International Food Aid - Article III of the Convention
6. Article III (3) sets out the minimum annual contributions of members of the
   Convention "towards the achievement of the objective of Article I", i.e.
   the provision "of at least 10 million tons of food aid annually to
   developing countries in the form of wheat and other grains suitable for
   human consumption".
7. Minimum contributions of members total 7,612,000 tonnes which includes
   1.650.000 tonnes on the part of the Community.
8. Spain is a member of the Convention with a minimum annual contribution of
   20.000    tonnes. Portugal is not a member.
(1) Current signatories are: Argentina, Australia, Austria, Canada, E.E.C and
                              its Member States, Finland, Japan, Norway, Spain,
                              Sweden, Switzerland, U.S.A.
 ---pagebreak--- Food Aid Needs
9.  Since the 1980 Convention came into effect not only has the 10 million
    tonne target, established by the World Food Conference in 1974, been
    superseded (the F.A.O. estimates global cereal food aid requirements now
    to be some 20 million tonnes p.a.), but there has also been an increasing
    trend in the needs of the Community's traditional beneficiaries.
10. Over the past 15 years cereal import requirements of low income food
    deficit countries (L.I.F.D.Cs), particularly those in Africa, have
    increased by approximately 10% per year on avereage. The rate of increase
    accelerated over the years and during the period 1980-85 it was about 20%
    per year.
11. Total cereal import requirements of L.I.F.D.Cs, excluding those which are
    not beneficiaries of cereals food aid (e.g. Afghanistan, China and India),
    amounted to some 20.2 million tonnes in 1981/82 and 29.7 million tonnes in
    1983/4. Requirements for 1984/85 have been estimated by the F.A.O. to be
    35.7 million tonnes.
12. Food aid as a proportion of total cereal imports by L.I.F.D.Cs fell from
    33% in 1981/82 to 28% in 1983/84.
The Community's Food Aid
13. The Community's annual commitment of 1,650,000 is shared between Community
    and Member States on a 56 %/44 % basis: Community - 927,663 tonnes and
    Member States - 722,337 tonnes.
14. During the past years, however, both the Community and Member States have
    exceeded their respective obligations as follows:
                                                                  (tonnes)
    Year              Community            Member States          Total
    1980/81              927,663              762,693             1,690,356
    1981/82           1,000,000               736,328             1,736,328
    1982/83           1,001,369               826,131             1,827,500
    1983/84           1,127,663 (1)           815,863 (1)         1,943,526
    1984/85      (2 ) 1 ,160,000 (1 )      1, 011,106 ( 1)        2 , 171,106
    (1) Not yet delivered in full
    (2) Excluding additional aid supplied under the "Dublin Plan"
 ---pagebreak--- 15. The figures above do not include aid supplied by Spain which has averaged
     about 25,000 tonnes per year between 1982/83 and 1984/85, i.e. some 5,000
     tonnes more than its commitment under the Convention.
16. The totals in paragraph 14, which reveal a steadily rising trend, indicate
     that average food aid provided annually by the Community and Spain over
     the past 3 years has been approximately 2 million tonnes. In view of this
     the Commission is of the opinion that the Community should increase its
     minimum annual F.A.C. contribution to 2 million tonnes, provided other
     donors are also willing to increase theirs.
17. Such a gesture would fit very well into the Community policy on North
     South relations. Although its implementation would at present involve
     little or no additional budgetary costs since the Community as such and
     the majority of Member States are already supplying more aid than their
     present F.A.C. commitment, it would nevertheless constitute a firm
     undertaking to continue to supply aid at this level in the future. (1)
18. The proposed quantity of 2 million tonnes would, of course, include any
     increase, which could reasonably be expected to be made, on account of the
     Community's enlargement by the accession of Spain and Portugal.
19. In the light of the foregoing, the Commission recommends that the Council
     should adopt the attached draft Decision.
(1 ) B e ca u se o f t h e d i f f i c u l t y i n e s t i m a t i n g f u t u r e c e r e a l p r i c e s , no f i n a n c i a l
     s t a t e m e n t ca n be u s e f u l l y d ra w n u p . H o w e ve r t h e q u a n t i t i e s i n v o l v e d w o u ld
     n o t s u b s t a n t i a l l y in c r e a s e , t a k in g in t o a c c o u n t th e am ount o f c e r e a ls a id
     a t p r e s e n t b e in g p r o v i d e d o v e r and a b o v e t h e Food A id C o n v e n t io n c o m m itm e n t.
 ---pagebreak---                                    COUNCIL DECISION
authorising the Commission to participate in the negotiation of the extension
or replacement of the Food Aid Convention 1980.
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to. the Treaty establishing the European Economic Community, and
in particular Article 113 thereof,
Having regard to the Recommendation from the Commission,
Whereas the Community is a party to the Food Aid Convention  198Ô,
Whereas this Convention expires on 30.6.1986,
Whereas it is in the Community's interest that the Convention be extended or
replaced by a new Convention,
HAS DECIDED AS FOLLOWS:
                                  Sole Article
The Commission is hereby authorized to take part in the negotiations for the
extension or replacement of the Food Aid Convention 1980.
The Commission shall take part in the negotiations, in consultation with the
Article 113 Committee, in accordance with the guidelines contained in the
Annex.
Done at __                                        For the Council
                                                  The President
 ---pagebreak---                                                                    ANNEX
1. The link between the Food Aid Convention and the Wheat Tr$de Convention
   should be retained.
2. As far as possible no changes should be made in the text of the present
   Convention.
3. The Community's existing contribution of 1,650,000 tonnes in Article III
   (3) should be increased to a figure not exceeding 2,000,000 tonnes
   depending on the response of other donors.
4. The present division of the Community's contribution between Member States
   (44 %) and Community (56 %) should be retained.
5. The Food Aid Convention 1980 should be further extended for such period as
   the Wheat Trade Convention 1971 is extended or for the duration of a new
   Wheat Trade Convention replacing it.


title: Recommendation for a COUNCIL DECISION on the position to be adopted by the Community in the international negotiations on conditions governing officially-supported export credits for aircraft (submitted to the Council by the Commission)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (84) 311
Vol. 1984/0142
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak---                                                                             CO M(84) 311 final
     COMMISSION                                                             Brussels, 8 June 1984
        OF THE
EUROPEAN COMMUNITIES                                                         FOR OFFICIAL USE ONLY
    General Secretariat
                                        R e c o mmendatio n for a
                                           COUNCIL DECISION
            on the position to be a d opted b y the Community in the international
              n e gotiations on conditions g o v e r n i n g offici a l l y - s u p p o r t e d export
                                        credits for aircraft
                            (submitted to the Council by the Commission)
     COM( 8 4 ) 311 f i n a l
 ---pagebreak---                            EXPLANATORY MEMORANDUM
 I. REMINDER OF THE SITUATION
    1. In December 1982/ the Commission submitted comprehensive proposals
       to the Council (C0M(82)829 final) aimed at establishing a Community
       position in the international negotiations on the conditions for
       granting officially supported export credits. These proposals were
       not subjected to an in-depth examination by the relevant Council
       bodies due initially to the lengthy negotiations which'took place
       on revising the OECD export credits Consensus in 1983 and subsequently
       to other pressing business related to the Arrangement and to other
       sectors. In the meantime new developments in the field of aircraft
       financing have occured which have rendered certain aspects of the
       Commission's original proposals in need of revision. With this in mind
       and with the objective of opening negotiations with our trade
       partners as soon as possible, the Commission hereby submits
       to the Council revised proposals for negotiating directives.
II. THE NEED TO OPEN NEGOTIATIONS
    2. There are several reasons why it is important to make progress in the
       field of export credits for aircraft. First and foremost efforts
       must be made to honour the commitment made by Consensus Participants
       in 1982 to open negotiations with a view to concluding a sectoral
       agreement covering all aircraft. It will be recalled in this
       context that this commitment was entered into the light of the
       manifest shortcomings of existing discipline in the sector (OECD
       Standstill) and in recognition of the fact that many new aircraft
       w o u l d be coming onto the world market in the middle to late 1980's
       in order to take advan t a g e of new sales opportunities.
    3. Aside from these general considerations which apply to all aircraft,
       it is important that in the specific       field of wide-bodied jet
       aircraft            Community  competence is enforced in a matter falling
       w ithin the framework of the Community's common commercial policy
       as defined under Article 113 of the Treaty. This is all the more
       essential in view of the pressure being e x erted by the US to arrive
       at new financing conditions for such aircraft, some of which have
       a direct bearing on the interests of other m e m b e r s t a t e s .
 ---pagebreak---                                                 - 2 -
III. STRATEGY UNDERLYING THE COMMISSION'S REVISED PROPOSALS
     4 . Whereas i n t h e C o m m is s i o n 's p r e v i o u s p r o p o s a l s a l l a i r c r a f t
         were i n c l u d e u n d e r a s e t o f c h a p t e r h e a d i n g s c o v e r i n g t h e
         p r i n c i p a l elem ents of th e n e g o t i a t i o n , in i t s               rev ised proposals
         t h e Commission c o n s i d e r s i t e x p e d i e n t t o make a c l e a r d i f f e r e n t i a t i o n
         be tw ee n l a r g e ( w i d e - b o d i e d ) a i r c r a f t and o t h e r a i r c r a f t .
         The d i s t i n c t i o n     is necessary p rim a rily because d i f f e r e n t fin a n c in g
         p r a c t i c e s p r e v a i l i n t h e two s u b s e c t o r s . I f         is also     in r e c o g n itio n
         o f t h e f a c t t h a t w i d e - b o d i e d j e t a i r c r a f t a r e p r o d u c e d o n l y by t h e
         US and t h e Community and t h a t                     i n c o n s e q u e n c e t h e most a p p r o p r i a t e
         method o f p r o c e e d i n g would be t o e n v i s a g e EC-US n e g o t i a t i o n s .
         On t h e o t h e r h a n d , s m a l l e r        aircraft,          f o r which t h e number o f
         p r o d u c e r s i s much l a r g e r , c o u l d be n e g o t i a t e d w i t h i n t h e framewok
         o f t h e OECD. At a l a t e r s t a g e t h e two " c o m p o n e n ts " c o u l d be
         s l o t t e d t o g e t h e r t o form a c o m p r e h e n s iv e s e c t o r a l a c c o r d .
     5 . The d i v i s i o n o f t h e C o m m is s i o n 's p r o p o s a l s i n t o two p a r t s does
         not s i g n i f y of course a ranking of th e a i r c r a f t c a t e g o r i e s                     in o r d e r
         o f i m p o r t a n c e o f r e a c h i n g an a g r e e m e n t . I t must be r e c o g n i s e d , h o w e v e r ,
         that       i n an i n i t i a l    s t a g e p r o g r e s s may be s w i f t e r i n t h e f i e l d
         of w ide-bodied a i r c r a f t             i n view o f t h e a d v a n c e d s t a t e o f d i s c u s s i o n s
         which have b e en t a k i n g p l a c e o v e r a number o f y e a r s b etw een
         th e four producing c o u n t r i e s .                In d e e d a f a i l u r e o f t h e Community
         t o come f o r w a r d         w i t h p r o p o s a l s q u i c k l y in t h i s a r e a c o u l d have
         a number o f u n f a v o u r a b l e c o n s e q u e n c e s f o r a l l Member S t a t e s , s uch
         a s t h e w i t h d r a w a l o f t h e US from t h e OECD S t a n d s t i l l and t h e
         un ilateral           im position of s t r i c t           conditions for financing a i r c r a f t
          s a l e s on t h e US m a r k e t . C o n s e q u e n t l y t h e Commission b e l i e v e s t h a t
          it    i s i n t h e Community's i n t e r e s t t o come f o r w a r d w i t h r e a l i s t i c
         p r o p o s a l s i n t h i s s e c t o r a s soon a s p o s s i b l e .              C oncurrently
         n e g o t i a t i o n s should begin             on s m a l l e r a i r c r a f t .
 ---pagebreak---                                                  - 3 -
IV. THE COMMISSION'S REVISED PROPOSALS
 A. L arge a i r c r a f t
 6 . The C o m m is si o n 's new p r o p o s a l s on w i d e - b o d i e d j e t a i r c r a f t c o n t a i n
     some i m p o r t a n t amendments compared w i t h t h e p r o p o s a l s made i n
     1 9 8 2 . Most i m p o r t a n t l y no d i s t i n c t i o n        i s now made b e tw e e n t h e
     m a r k e t s o f p r o d u c e r and n o n - p r o d u c e r m a r k e t s w i t h t h e        consequence
     t h a t th e scope of th e agreement i s extended to a l l t h i r d m a r k e t s .
     L i k e w i s e , f o r US s a l e s t o t h e Community, no d i s t i n c t i o n s h o u l d be
     made b etw een t h e minimum c o n d i t i o n s a p p l i c a b l e t o d i f f e r e n t member
     states.
 7 . I d e a l l y t h e same minimum t e r m s and c o n d i t i o n s s h o u l d a p p l y t o a l l
     t h i r d m a r k e t s . However i t          i s c l e a r from p r e l i m i n a r y d i s c u s s i o n s
     t h a t t h e US w i l l a d o p t a v e r y to u g h n e g o t i a t i n g s t a n c e w it h
     r e s p e c t t o t h e minimum c o n d i t i o n s t o be a p p l i e d f o r t h e s a l e s o f
     A i r b u s on t h e US m a r k e t . I n d e e d i t has ev en been s u g g e s t e d i n
     some q u a r t e r s t h a t       Loans s u p p o r t e d by e x p o r t c r e d i t g u a r a n t e e s
     and i n s u r a n c e would n o t be a c c e p t a b l e s i n c e t h e s e a r e a l l e g e d
     t o i n c o r p o r a t e de f a c t o s u b s i d y e l e m e n t s .
 8 . In t h e view o f t h e Commission i t                     is v i t a l fo r the fu tu re of
     A i r b u s I n d u s t r i e t h a t a c c e s s t o t h e US m a r k e t on r e a s o n a b l e
     t e r m s i s o b t a i n e d . The c o n d i t i o n s o f such a c c e s s s h o u l d t a k e
     in to account the f i n a n c i a l r e a l i t i e s              f a c i n g A ir b u s I n d u s t r i e
     on w o r ld m a r k e t s and t h e n e c e s s i t y f o r e x p o r t c r e d i t g u a r a n t e e s
     t o f a c i l i t a t e sales       t o o v e r s e a s c u s t o m e r s . At t h e same ti m e t h e
     c o n d i t i o n s s h o u l d n o t p l a c e US c o m p e t i t o r s a t a c o m p e t i t i v e
     d i s a d v a n t a g e on t h e i r own m a r k e t . F i n a l l y , o f c o u r s e , t h e
     c o n d i t i o n s s h o u l d be c o m p a t i b l e w ith i n t e r n a t i o n a l    law (GATT
     S u b s i d i e s Code) t o which t h e US has s u b s c r i b e d .
 9.  It     f o l l o w s from t h e abov e c o n s i d e r a t i o n s t h a t i t may be n e c e s s a r y
     t o e n v i s a g e s p e c i a l f i n a n c i n g c o n d i t i o n s f o r s a l e s t o t h e US and
     p e r h a p s t o o t h e r m a r k e t s a s w e l l . For t h e p r e s e n t , h o w e v e r,
     it     i s p r o p o s e d t h a t t h e C o u n c i l a u t h o r i s e s t h e Commission t o
     negotiate             minimum t e r m s a p p l i c a b l e t o a l l m a r k e t s , i t b e i n g
     u n d e r s t o o d t h a t i t may be n e c e s s a r y -to s e e k s u p p l e m e n t a r y . . d i r e c t i v e s
      at a la te r stage.
 ---pagebreak---                                                     - 4 -
 1 0 . T u r n i n g t o o t h e r e l e m e n t s o f t h e C om mission ’s p r o p o s a l , i t                       should
       be n o t e d t h a t 10 and 12 y e a r f i n a n c i n g o p t i o n s a r e e n v i s a g e d
       w i t h minimum i n t e r e s t             ra te s for o f f i c i a l l y financed c r e d its                  in
       d ollars         ( t h e c u r r e n c y u s ed f o r most f i n a n c i n g )             l i n k e d t o US
       T r e a s u r y Bonds. The c o n d i t i o n s f o r f i n a n c i n g o f f e r s made i n a
       c o c k t a i l o f Europ ean c u r r e n c i e s             ( F F , DM t s t e r l i n g )       s h o u l d be
       e s t a b l i s h e d so a s t o be f u l l y c o m p e t i t i v e w i t h do l i a r - d e n o m i n a t e d
       c r e d i t s . The same p r i n c i p l e s h o u l d be a d o p t e d a t a l a t e r s t a g e
       when i t may be p o s s i b l e t o e n v i s a g e g r a n t i n g e x p o r t c r e d i t s
       d e n o m i n a t e d i n ECU.
11.     A new e l e m e n t s h o u l d be t h e i n t r o d u c t i o n o f an a u t o m a t i c sy ste m
       f o r a d j u s t i n g minimum i n t e r e s t             r a t e s in d o l l a r s in l in e with
      movements i n a p p r o p r i a t e US T r e a s u r y B o nd s. The t e c h n i c a l p r o v i s i o n s
      o f such a sy ste m s h o u l d be e l a b o r a t e d d u r i n g t h e c o u r s e o f t h e
      n e g o tia tio n s (including                l i m i t i n g p r i o r commitments t o t h r e e m o n t h s )
       so a s t o e n s u r e t h a t E ur ope an o f f e r s a r e n o t u n d e r c u t by movements
       in market i n t e r e s t            r a t e s . Before the f u l l im plem entation of the
      a u t o m a t i c s y s te m and d e p e n d i n g on t h e e v o l u t i o n o f i n t e r e s t r a t e s i t
      may a l s o be w orth e n v i s a g i n g a t r a n s i t i o n a l p e r i o d d u r i n g which
       lower r a t e s may a p p l y .
 12.     F i n a l l y , t h e Commission would p o i n t t o t h e m a i n t e n a n c e o f i t s
      p r o p o s a l t o t h e e f f e c t t h a t t h e maximum amount o f o f f i c i a l f i n a n c i n g
      s u p p o r t a t minimum i n t e r e s t r a t e s s h o u l d be l i m i t e d t o                       le s s than
      85 % o f c o n t r a c t v a l u e . T h i s p r o p o s a l , which r e f l e c t s a c t u a l
      p r a c t i c e s of s e l l i n g w ide-bodied j e t a i r c r a f t -                   has       th e advantage of
      l i m i t i n g p o t e n t i a l s u b s i d y e l e m e n t s . As r e g a r d s t h e r e m a i n d e r o f
      the c r e d i t ,        it  i s proposed t h a t o f f i c i a l             f i n a n c i n g s u p p o r t may
      be p r o v i d e d b u t t h a t t h i s s h o u l d b e a t              r a t e s c lo s e t o market r a t e s .
      In t h e n e g o t i a t i o n s , a r r a n g e m e n t s have t o be worked o u t which a l l o w
      Member S t a t e s          to      fu lly      compete w i t h US o f f e r s .
 ---pagebreak---                                                     - 5 -
 B. OTHER AIRCRAFT
13.     With r e s p e c t t o s m a l l e r a i r c r a f t and h e l i c o p t e r s , t h e Commission
      p roposes t o m a in ta in in broad term s th e t h r u s t of i t s p r o p o s a ls
      o f December 19 8 2 . Thus f o r t h e c a t e g o r i s a t i o n o f                         aircraft           two
      s u b g r o u p s s h o u l d be m a i n t a i n e d in a d d i t i o n t o t h a t o f l a r g e a i r c r a f t .
      In t h i s       context i t         c o u l d be a p p r o p r i a t e t o        l i s t a l l current a ir c r a f t
      f a l l i n g w i t h i n each c a t e g o r y . P a r t i c u l a r a t t e n t i o n s h o u l d be
      p a i d t o t h e c l a s s i f i c a t i o n o f t h e BAc 146 and F 28 and F 100 which
      so m et im e s compete w i t h l a r g e a i r c r a f t and so met ime s w it h s m a l l e r
      c om m e rc ia l t r a n s p o r t a i r c r a f t ;         h o w e v er , w h i c h e v e r c a t e g o r y i s
      e v e n t u a l l y a d o p t e d , i n t h e c a s e o f c o m p e t i t i o n w i t h an a i r c r a f t
      classified             i n a n o t h e r c a t e g o r y s i m i l a r t e r m s s h o u l d be p e r m i t t e d
      (C om petition Reference P o i n t ) .
 1 4 . The most i m p o r t a n t amendment o f t h e C o m m is s i o n 's f o r m e r p r o p o s a l
      c o n c e r n s t h e minimum i n t e r e s t              r a t e s t o be a p p l i e d . On f u r t h e r
      r e f l e c t i o n a u n i q u e r a t e o f i n t e r e s t w i t h o u t d i f f e r e n t i a t i o n by
      p u r c h a s i n g c o u n t r y f o r b o t h c a t e g o r i e s o f a i r c r a f t may be more
      a p p r o p r i a t e i n view o f t h e n a t u r e of t h e e q u ip m e n t b e i n g s o l d .
      In t h i s       c o n t e x t i t w i l l be r e c a l l e d t h a t " m o b i l i t y " was t h e main
      re a so n f o r e s t a b l i s h i n g a unique r a t e of i n t e r e s t                     i n t h e OECD
      Ships a g re em e n t. A f o r t i o r i              t h e same p r i n c i p l e s h o u l d be a d o p t e d
      with r e s p e c t t o a i r c r a f t .
 1 5 . As r e g a r d s t h e Minimum i n t e r e s t                  r a t e s t h a t s h o u l d be a p p l i e d ,
      t h e Commission c o n s i d e r s t h a t t h e s e s h o u l d be i n t h e o r d e r
      o f t h e minimum i n t e r e s t             r a t e s o f t h e C on sen su s f o r r e l a t i v e l y
      rich       countries.          Such a benchmark would a p p e a r t o be j u s t i f i e d
      i n view o f t h e p r e p o n d e r a n c e o f s a l e s t o such m a r k e t s .
 1 6 . As r e g a r d s t h e o t h e r c o n d i t i o n s o f an a g r e e m e n t , t h e s e s h o u l d
      be b a s e d where a p p r o p r i a t e on t h e p r e v a i l i n g d i s p o s i t i o n s o f t h e
      C o n s e n s u s . One        n o t a b l e d i f f e r e n c e , h o w e v e r , s h o u l d be t h e
      e x c lu sio n of t i e d a id c r e d i t s              in th e a i r c r a f t s e c t o r .         Such a
      p r o v i s i o n r e f l e c t s no more t h a n t h e c u r r e n t p r a c t i c e o f most
      OECD c o u n t r i e s n o t t o g r a n t t i e d a i d c r e d i t s                  in t h i s s e c t o r .
 ---pagebreak---                                   RECOMMENDATION                FOR A
                                         COUNCIL DECISION
              on t h e p o s i t i o n      t o be a d o p t e d by t h e Community
              i n t h e i n t e r n a t i o n a l n e g o t i a t i o n s on c o n d i t i o n s
                     governing o f f i c i a l l y - s u p p o r t e d e x p o rt
                            credits for a irc ra ft
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having r e g a r d t o t h e T r e a t y e s t a b l i s h i n g t h e E ur ope an Economic
Community, and i n p a r t i c u l a r A r t i c l e 113 t h e r e o f ,
Having r e g a r d t o t h e Recommendation                          from t h e Commission,
Whereas by i t s D e c i s i o n o f 28 J u l y 1 9 8 2 t h e Counci l a p p r o v e d on b e h a l f o f
t h e Community t h e r e s u l t s o f t h e n e g o t i a t i o n s on t h e modif i c a t i o n s o f t h e
A rr a n g e m e n t on G u i d e l i n e s f o r O ff i c i a l l y - S u p p o r t e d E x p o r t C r e d i t s and a g r e e d i n
Annex I I t o t h a t D e c i s i o n t o open n e g o t i a t i o n s f o r a g r e e m e n t s
on e x p o r t c r e d i t t e r m s f o r a i r c r a f t and n u c l e a r power s t a t i o n s ;
Whereas in view o f t h e s i t u a t i o n o f t h e w o r l d economy i t                             re m a in s
n e c e s s a r y t o keep w a s t e f u l c o m p e t i t i o n on o f f i c i a l l y s u p p o r t e d
e x p o r t c r e d i t s t o a minimum and improve i n t e r n a t i o n a l c o o p e r a t i o n
in o rd e r t o prev en t a d e t e r i o r a t i o n of c r e d i t te rm s ,
Whereas i t i s n e c e s s a r y t o r e v i s e and u p d a t e t h e C o m m is si o n' s
p r o p o s a l s o f December 1982 (C0M(82)829 f i n a l ) ;
 ---pagebreak---                          -  2 -
HAS DECIDED AS FOLLOWS:
                           Sole Article
 In the international negotiations on the conditions governing
 officially-supported export credits for aircraft, the
 Commission shall express the Community's position in accordance
 with the directives annexed hereto.
 It shall proceed in consultation with the Special Committee provided
 for in Article 113 of the Treaty, which shall assist it in its task.
                                                  For the Council
  Done at Brussels,
                                                   The President
 ---pagebreak---                                                                                ANNEX
                         NEGOTIATING DIRECTIVES
. LARGE AIRCRAFT
  1 . SCOPE OF AN AGREEMENT
      E x p o r t s o f Large and m e d i u m - s i z e d c o m m e rc ial t r a n s p o r t t u r b o f a n
      a irc ra ft.
  2 . DURATION
      The maximum rep ay m en t te r m f o r s a l e s and l e a s e s s h a l l be t w e l v e
      years.
  3 . INTEREST RATES
     (i)      N o tw ithstanding th e p ro v is io n s of paragraph 4 below, th e
              minimum i n t e r e s t          r a t e f o r e x p o r t c r e d i t s b e n e f i t i n g from
              o f f i c i a l f i n a n c i n g s u p p o r t s h a l l be d e t e r m i n e d f o r each
              currency as follow s :
              - f o r t h e US d o l l a r , rep ay m ent t e r m s up t o 10 y e a r s s h a l l
                  be b a s e d on US T r e a s u r y Bonds p l u s an a p p r o p r a i t e                 m argin.
                  An a d d i t i o n a l m a rk -u p t o t h i s minimum r a t e s h a l l be a p p l i e d
                  i f t h e re p a ym en t te rm i s e x t e n d e d t o 12 y e a r s .
              - minimum i n t e r e s t r a t e s             i n o t h e r c u r r e n c i e s s h a l l be d e t e r m i n e d
                  so a s t o e n s u r e t h a t          financing o f f e r s are fu lly com petitive
                  w i t h t h o s e d e n o m i n a t e d i n US d o l l a r s .
     (ii)     The minimum i n t e r e s t             r a t e s s h a l l be a d j u s t e d a u t o m a t i c a l l y
              i n a c c o r d a n c e w i t h a p p r o p r i a t e i n d i c a t o r s o f c h an g e s i n
              market i n t e r e s t         rates.       For t h e US d o l l a r , t h e i n d i c a t o r
              s h a l l be US T r e a s u r y Bonds.
     Ci i i ) The i m p l e m e n t a t i o n o f t h e p r o v i s i o n s f o r e s e e n u n d e r ( i )        and
             (ii)     above may be p r e c e d e d by a t r a n s i t i o n a l p e r i o d d u r i n g
              which lower r a t e s may a p p l y .
 ---pagebreak---                                                           -   2 -
   4 . OFFICIAL SUPPORT
       The maximum amount o f o f f i c i a l f i n a n c i n g                   s u p p o r t a t minimum
       r a t e s of i n t e r e s t      ( p a r a g r a p h 3 above) may be l e s s t h a n 85 %
       o f t h e c o n t r a c t v a l u e . S p e c i a l c o n d i t i o n s s h a l l a p p l y when
       t h e p o r t i o n o f t h e c r e d i t n o t c o v e r e d by minimum r a t e s i s s u b j e c t
       to o f f i c i a l financing su p p o rt.
   5.  COMPETITION REFERENCE POINT
       In t h e e v e n t o f o f f i c i a l l y s u p p o r t e d c o m p e t i t i o n , a i r c r a f t o t h e r
       t h a n t h o s e s p e c i f i e d i n p a r a g r a p h (1) abov e s h a l l be a b l e t o
       b e n e f i t from t h e same e x p o r t c r e d i t t e r m s and c o n d i t i o n s .
   6 . OTHER CONDITIONS
        (i)     Cash pa ym en ts b e f o r e d e l i v e r y s h a l l be a t                l e a s t 15 % o f c o n t r a c t
               value.
      (ii)     Commitments            f o r o f f i c i a l l y f i n a n c e d c r e d i t s s h a l l be v a l i d
               f o r t h r e e m o n th s .
     (iii)     The g e n e r a l p r o v i s i o n s o f t h e A rr a n g e m e n t s h a l l a p p l y , n o t a b l y
               t h e n o n - d e r o g a t i o n c l a u s e , m a tc h in g and n o t i f i c a t i o n p r o c e d u r e s ,
               and p e r i o d i c a l r e v i e w s .
      (iv)     Export c r e d i t c o n d i t i o n s f o r s a l e s of s p a r e - p a r t s , in c lu d in g
               e n g i n e s , and s e c o n d - h a n d a i r c r a f t      s h a l l be s t u d i e d .
B. OTHER AIRCRAFT
   1 . SCOPE OF AN AGREEMENT
       E x p o r t s o f s m a l l and m e d i u m - s i z e d a i r c r a f t .
       Thes e a i r c r a f t s h o u l d be c l a s s i f i e d i n t o two c a t e g o r i e s a l o n g t h e
       follow ing          lines :
       (i)     CATEGORY I I          : - Commercial t r a n s p o r t a i r c r a f t n o t s p e c i f i e d i n
                                             s e c tio n A above.
                                        - O t h e r m u l t i - e n g i n e d t u r b i n e powered a i r c r a f t
                                              ( b u s i n e s s and m u l t i - e n g i n e d t u r b o p r o p c o m m e rc ial
                                             tran sp o rt a irc ra ft)
                                        - M u l t i - e n g i n e d t u r b i n e powered             helicopters.
 ---pagebreak---                                                            - 3 -
       ( i i ) CATEGORY I I I              :   A l l o t h e r a i r c r a f t and h e l i c o p t e r s
2.    DURATION
      The maximum rep ay m ent t e r m s f o r s a l e s and l e a s e s s h a l l be :
       ( i ) 7-8 y e a r s f o r a i r c r a f t         classified            in Category I I ;
     ( i i ) 5 y e a r s f o r a i r c r a f t c l a s s i f i e d in Category I I I ;
3 . INTEREST RATES
     (i) In te re s t           rates for a ir c r a f t c la s s ifie d               in C ateg o ries I I      and I I I       s h a l l be
              i n t h e o r d e r o f t h e minimum i n t e r e s t              ra te s for r e la tiv e ly rich
             c o u n t r i e s a s s p e c i f i e d i n p a r a g r a p h 3(A) o f t h e A r r a n g e m e n t .
    ( i i ) In c a s e s where t h e c o m m e rc ial l e n d i n g r a t e s o f i n t e r e s t f o r t h e
             n a t i o n a l c u r r e n c y o f a P a r t i c i p a n t f a l l below t h e l o w e s t minimum
             lev el of (i)             above, the i n t e r e s t          r a t e on e x p o r t c r e d i t s f i n a n c e d
             i n whole o r i n p a r t w i t h o f f i c i a l f i n a n c i n g s u p p o r t s h a l l be
             d e te rm in e d in a cc o rd a n c e w ith th e p r o v i s i o n s of p a ra g ra p h 3(b)
             o f th e Arrangement.
4 . OFFICIAL SUPPORT
    The maximum amount o f o f f i c i a l                     fin an cin g support s h a l l correspond to
    t h a t p e rm itte d under               t h e A rra n g e m e n t (85 %).
5.   COMPETITION REFERENCE POINT
    I n t h e e v e n t o f o f f i c i a l l y s u p p o r t e d c o m p e t i t i o n , a i r c r a f t c o m p e tin g
    w i t h o t h e r s from a h i g h e r c a t e g o r y s h a l l be a b l e t o b e n e f i t from t h e
    same e x p o r t c r e d i t t e r m s and c o n d i t i o n s .
6 . OTHER CONDITIONS
    (i)      The minimum c a s h payment s h a l l be a t                          l e a s t 15 % o f t h e c o n t r a c t v a l u e ,
   (ii)      The g r a n t i n g o f t i e d a i d c r e d i t s s h a l l be p r o h i b i t e d .
  (iii)      The g e n e r a l p r o v i s i o n s o f t h e          A rr a n g e m e n t s h a l l a p p l y , n o t a b l y t h e
             n o n - d e r o g a t i o n c l a u s e , m a t c h i n g and n o t i f i c a t i o n p r o c e d u r e s , t h e
             maximum d u r a t i o n of p r i o r commitments and t h e a n n u a l r e v i e w .
  (iv)       Export c r e d i t c o n d itio n s fo r s a l e s o f s p a r e - p a r t s in c lu d in g e n g in e s ,
             and        s e c o n d -h a n d    aircraft       s h a l l be s t u d i e d .


title: RECOMMENDATION FOR A COUNCIL DECISION on the conclusion of an agreement between the European Economic Community and the Malagasy Republic for the supply of flour of common wheat as food aid (submitted to the Council by the Commission)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 1828
Vol. 1973/0317
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak---  COMMISSION OF THE EUROPEAN COMMUNITIES
                                                      COM(73)1828 final
                                                      Brussels . 31 October 1973
                             RECOMMENDATION FOR A
                               COUNCIL INCISION
                on the conclusion of an agreement between the
             European Economic Community and the Malagasy Republic
              for the supply of flour of common wheat as food aid
                ( submitted to the Council by the Commission)
COM(73 ) 1828 final
 ---pagebreak--- THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to "the Treaty establishing the European Economic Community ,
and in particular Articles 113 , 114 and 228 thereof ;
Having regard to the Recommendation from the Commission ;
Whereas the European Economic Community has deposited a Declaration for pro
visional application of the 1971 Food Aid Convention ; whereas that Convention
has "been applicable since 1 July 1971 $                   *
Whereas the Malagasy Republic                 , by its letter of 19 December 1972 ,
has requested food aid ;
Whereas in view of the cereal supply situation in the Malagasy Republic ,
that country should be accorded , by way of gift ,        5 000 metric tons of
cereals in the form of 3 311 metric tons of flour of common wheat under .the
Community Pood Aid Programme for 1972/73 ;
DECIDES :                           •                                    .
                             Article 1
On behalf of the European Economic Community an Agreement , the text whereof
is annexed hereto , shall be' concluded between the European Economic Community
and the Malagasy Republic             for the supply of flour .of common wheat
as food aid .
                              Article 2
The President of the Council is hereby authorized to designate those who are
to sign the Agreement and to confer on them the requisite powers to bind the
Community .
Done at Brussels ,            19 **«*                        For the Council
                                                              The President
 ---pagebreak---                AGREMENT
BETWEEN THE EUROPEAN ECONOMIC COMMUNITY
AMD THE MALAGASY REPUBLIC
ON THE SUPPLY OF POOD AID HT THE FORM OF
FLOUR OF COOMON WHEAT
 ---pagebreak--- THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
                                                    on the one hand ,
THE GOVERNMENT OP THE MALAGASY REPUBLIC ,
                                                    on "the other hand ,
HAVE DECIDED "to conclude this Agreement and to this end have designated
as their plenipotentiaries :
THE COUNCIL OP THE EUROPEAN COMMUNITIES :
THE GOVERNMENT OP THE MALAGASY REPUBLIC :
                                                  I
WHO HAVE AGREED AS FOLLOWS :
 ---pagebreak---                                  Article I                      ■  •
  As a part , of its Food Aid Programme (Cereals ) for 197 /7' » "th© European
  Eoonomio Community shall supply the Malagasy Republic
 hereinafter referred to as the "recipient country", with         3 311   metric
  tons of flour of coomon wheat in the form of a gift.
                                 Article II
 Deliveries will "be made in polyester ba?s lined with Kraft paper with four
       • -     ·  0     0
 pleats cif to ports of unloading of the recipient country.
                                 Article III
                    /            1      i i l J
 The obligations and responsibilities of the European Economic Community
 and of the recipient country relating to delivery and the taking of delivery
 are defined in the Annex which forms an integral part of this Agreement .
                                 Article TV
 The recipient country undertakes to make all necessary arrangements for
 the transport and insurance of the product from ports of unloading to
 places of destination.
                                 Article V
                             «
 The recipient country undertakes to use the product received as aid for
 purposes of consumption and to apply , for the sale of the product on its
 market , the prices normally charged on that market for products of comparable
 quality.                                                             .    ^
 The proceeds from this sale , less the normal cost of selling the product on
the recipient country 's market , will be paid into a special account with the
Treasury of the Malagasy Republic and allocated to the financing of one or
more development projects which have already been proposed by the recipient
country and approved by the European Economic Community.
 ---pagebreak--- THE COUNCIL OF THE EUROPEAN COMMUNITIES .
                                                     on the one hand ,
                                                   *
THE GOVERNMENT OP THE MALAGASY REPUBLIC ,
                                                     on "the other hand ,
HAVE DECIDED to conclude this Agreement and to this end have designated
as their plenipotentiaries :
THE COUNCIL OP THE EUROPEAN COMMUNITIES :
THE GOVERNMENT OP THE MALAGASY REPUBLIC s
                                                 I
WHO HAVE AGREED AS FOLLOWS :
 ---pagebreak---                                 Article T
 As a part , of its Food Aid Programme (Cereals ) for 197 /7' i "the European
 Economio Community shall supply the Malagasy Republic
 hereinafter referred to as the "recipient country", with       3 311    metric
 tons of flour of coomon wheat in the form of a gift .
                                Article II
 Deliveries will "be made in polyester ba$s lined with Kraft paper with four
      • -     »  0     •
pleats cif to ports of unloading of the recipient country .
                                Article III
                                  1     i  1 1
 The obligations and responsibilities of the European Economic Community
 and of the recipient country relating to delivery and the talcing of delivery
 are defined in the Annex which forms an integral part of this Agreement .
                                Article IV
 The recipient country undertakes to make all necessary arrangements for
 the transport and insurance of the product from ports of unloading to
 places of destination.
                                Article V
 The recipient country undertakes to use the product received as aid for
 purposes of consumption and to apply, for the sale of the product on its
 market , the prices normally charged on that market for products of comparabli
 quality.                                                            •    " .
 The proceeds from this sale , less the normal cost of selling the product on
the recipient country 's market , will "be paid into a special account with the
Treasury of the Malagasy Republic and allocated to the financing of one or
more development projects which have already been proposed by the recipient
country and approved by the European Economic Community.
 ---pagebreak---                                  Article VI
The Contracting Parties undertake to implement this Agreement in such a way
as to avoid any prejudice to the normal structure of domestic production and
international trade . To this end they shall take any measures required to
ensure that aid supplies are in addition to , and do not replace "business
transactions which might reasonably "be expected in the absence of such supplies .
In particular , the recipient country undertakes to import commercially from
whatever source between 1 July 1973 and 30 June 1974 a minimum quantity of 2b . 000
metric tons of cereals .                      •             *
                                              i
                                 Article VIT
The recipient country shall take any measures required to prevents
(i )   The re-export of the product received as aid and of produots and
      "by-products resulting from such supplies ;
(ii ) The export , commercially or otherwise , within six months of the last
      delivery of the flour of common wheat obtained locally and of the same nature
       as the product received as aid*
                               , Article VTIÏ
The recipient country undertakes to inform the European Economio Community
how this Agreement is being implemented . To this end it shall provide the
Commission of the European ' Communities with the following informations
(i )  Not later than thirty days after the unloading of each cargo s ports
      and dates of arrival of the vessel j nature , quantity and quality of
      the products unloaded } date on which unloading was completed ;
(ii ) Every three months until the quantities received as aid have been fully
      useds quantities sold, how they have been sold , selling prices ; normal
      selling costs on the recipient country's market :
 ---pagebreak---               ANNEX REFERRED TO III ARTICLE III OP THE AGREEMENT
                                  Article 1 '
 Delivery shall "be effeoted and risks shall pass from the European Economic
 Community to the recipient country at the moment when the goods are actually
 removed from the ship 's hold at the port of unloading . The recipient country
 shall "bear all costs subsequent to delivery of the goods , including unloading
 costs (such as . unstowing , hoisting and reception)and any lighterage costs .
 Any demurrage costs or dispatch money at the port of unloading shall "be a
 charge on or for the benefit of the recipient country . The rates and detailed
 arrangements relating thereto laid down in the contract "between the authorized
 agent of the Community referred to in Article 5 and the carrier must have "been
 agreed upon in advance "by the authorized agent and the receiving agent of the
recipient country referred to in Article 5 »
                                  Article 2
The European Economic Community shall , as soon as possible after the goods
have been loaded , send a notice accompanied by the necessary "customs clearance "
 documents giving the ship 's name , the date of loading , the quantity and quality
 of the goods as recorded at time of loading , and the port of destination and the
probable date of unloading.
                                  Article 3
The European Economic Community shall inform the recipient country of the
vessel * s expected date of arrival at the port* of unloading at least ten clear
days before that date .
The European Economic Community shall insert in the charter party a clause
requiring the captain to inform the recipient country at least 72 hours in
advance of the vessel 's estimated date of arrival in port .
 ---pagebreak---                                 Article 4
 On delivery of the goods , a tolerance shall "be allowed of 5  less than the
 quantity to "be supplied under Article 1 of the Agreement .
                                Article 5
 To implement the provisions of this annex, the European Economio Community
 shall appoint an authorized agent , whose name and address shall "be made known
 to the recipient country in good time .
 The recipient country shall appoint a receiving agent in each port of unloading,
whose name and address shall "be made known to the European Economic Community
"before the Agreement is implemented.                   .


RECOMMENDATION FOR A COUNCIL DECISION CONCERNING THE DETERMINATION OF TRADE ARRANGEMENTS BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND CYPRUS


ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (79) 179
Vol. 1979/0076
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                               C0M(79 ) 179 final
                                               Brussels , 10th April 1979
                           Recommendation for a
                              COUNCIL DECISION
     authorizing the Commission to take part in the negotiations for
     a convention on the conservation of migratory species of wild
                                   animals
                   I -
                   v: . - v . ....
                                           V
                                           v                 ;
C0M(79 ) 179 final
 ---pagebreak---                            Recommendation of the Commission
1 . In the second Action Programme of the European Communities on the Environ
     ment ( I ), tne Council and the representatives of the governments of the
     Member Stat.es emphasized , amongst other things , that wild fauna forms
     part or mankind 's common heritage . They stressed the importance of ensur
     ing adequate protection for wild fauna and in particular for migratory
     species .
2 . The conservation of endangered migratory species of wild animals necessitates
     amongst other things the protection or restoration of     the habitats of these
     species , the prevention of disturbances and obstacles    that impede the
     migration and the prevention or limitation of factors     that are likely to
     influence ur.f-woursbly the conservation status of the    species .
     The appropriate conservation measures should cover the whole of the range
     of an endangered species . For this reason the range states of an endangered
     migratory wild animal species should conclude appropriate agreements .
3 . The Convention on the conservation of migratory species of wild animals
     meets these objectives . This Convention was drafted in the context of
     the United Nations Environment Programme ( UNEP ). Its nature is that of
     a framework agreement according to the provisions of which the Parties
     shall conclude agreements between each other , It starts from the principle
     that States , in the territories of which populations of endangered migratory
     species occur , should take concerted measures for conservation and management
     'which are appropriate for the species involved and which depend on whether
     the specj.es require stringent conservation, measures in consequence of their
     unfavourable conservation status or whether the species can be subject
     of agreement .
4 . For the protection of animal species the Convention envisages measures
     to control the taking of the species , protection and management plans ,
     networks of suitable habitats and prevention , reduction or control of
     releases of substances harmful to the migratory species . Such measures
     are also provided for in the Directive on bird conservation - approved
     by the Council on December 19 , 1978 - which concerns all migratory bird
     species occurring in the Community . Besides that many endangered migratory
     species of sea-animals are the subject of the common fisheries policy »
     This might cause conflicts between Community actions on the one hand
     and goals in the context of the Convention on the other hand .
5 . In view of the above , this Convention falls partly within the Community 's
     jurisdiction and the Member States would be unable to bind themselves
     in that area with third countries in the absence of the Community .
                                  Tf Tf Tf
Therefore the Commission recommends 'the Council to adopt the enclosed draft
decision . >
( 1 ) OJ C 139 , 13.6.1977 p. 3
 ---pagebreak---                               Recommendation for a
                                 COUNCIL DECISION    .
  authorizing the Commission to take part in the negotiations for a convention
  on the conservation of migratory species of wild animals
The Council of the European Communities
            i      ,■
Having regard to the Treaty establishing the European Economic Community ,
Having regard to the recommendation from the Commission ,
Whereas negotiations , in which all Member States will participate , will take
place in Bonn from 11 to 23 June 1979 for * a convention on the         > ■
conservation of migratory species of w'ild animals ;
Whereas the Council approved on 19 December 1978 a proposal for a Council
directive on bird conservation ;                               1
Whereas , for the abovementioned reasons and in view of . its powers in this '
sector , the Community should take part in the negotiations for the conclusion
of the said convention ,                                             '
HAD DECIDED AS FOLLOWS :
                                  Sole article
                                             '  >                            ' :
The Commission is hereby authorised to participate in the negotiations for
a convention on the conservation of migratory species of wild animals .
The Commission shall conduct such . negotiations in consultation with
representatives of the Member States and in accordance with the annexed
gu i de I i ne .            1                                 1
 ---pagebreak---                             Negotiating guideline
The preliminary draft        convention , which is currently being drawn up ,
should be worded in such a way that the Community can sign and conclude the
convention .


RECOMMENDATION FOR A COUNCIL DECISION CONCERNING THE AMENDMENT OF RESERVATIONS WHICH HAVE BEEN ENTERED IN RESPECT OF CERTAIN ANNEXES TO THE INTERNATIONAL CONVENTION ON THE SIMPLIFICATION AND HARMONIZATION OF CUSTOMS PROCEDURES


title: Recommendation for a COUNCIL DECISION concerning the negotiation of a new International Coffee Agreement (presented by the Commission)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (88) 584
Vol. 1988/0198
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 concernant
l'ouverture au public des archives historiques de la Communauté économique européenne et de
la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, p. 1) modifié en dernier
lieu par le règlement (UE) 2015/496 du Conseil du 17 mars 2015 (JO L79 du 25. 3.2015, p. 1), ce
dossier est ouvert au public. Le cas échéant, les documents classifiés présents dans ce dossier
ont été déclassifiés conformément à l'article 5 dudit règlement ou sont considérés déclassifiés
conformément aux articles 26(3) et 59(2) de la décision (UE, Euratom) 2015/444 de la
Commission du 13 mars 2015 concernant les règles de sécurité aux fins de la protection des
informations classifiées de l'Union européenne.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 concerning
the opening to the public of the historical archives of the European Economic Community and the
European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as last amended by Council
Regulation (EU) 2015/496 of 17 March 2015 (OJ L 79, 27.3.2015, p. 1), this file is open to the
public. Where necessary, classified documents in this file have been declassified in conformity
with Article 5 of the aforementioned regulation or are considered declassified in conformity with
Articles (26.3) and 59(2) of the Commission Decision (EU, Euratom) 2015/444 of 13 March 2015
on the security rules for protecting EU classified information.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1. Februar
1983 über die Freigabe der historischen Archive der Europäischen Wirtschaftsgemeinschaft und
der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983, S. 1), zuletzt geändert durch die
Verordnung (EU) Nr. 2015/496 vom 17. März 2015 (ABI. L 79 vom 25.3.2015, S. 1), ist dieser Akt
der Öffentlichkeit zugänglich. Soweit erforderlich, wurden die Verschlusssachen in diesem Akt in
Übereinstimmung mit Artikel 5 der genannten Verordnung freigegeben; beziehungsweise werden
sie auf Grundlage von Artikel 26(3) und 59(2) der Entscheidung der Kommission (EU, Euratom)
2015/444 vom      13.   März 2015     über die   Sicherheitsvorschriften für den Schutz von  EU-
Verschlusssachen als herabgestuft angesehen.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                    COM(88 ) 584 final
                                                    Brussels , 18 October 1988
                           Recommendation for a
                             COUNCIL DECISION
  concerning the negotiation of a new International Coffee Agreement
                     ( presented by the Commission )
                              |сГЗ    r'
                                         ^         \3 ; * •
                                                .. ->
                                     sort- *■--
 ---pagebreak---                                                                          o
                                                                   O '/
                          EXPLANATORY MEMORANDUM
I.   Intrcxïuctian.
1 . At forthcoming meetings of the International Coffee Council (ICC) the
Community and its Member States will have to express their opinion on the
desirability of opening negotiations on the future of the 1983
International Coffee Agreement in the light of the conclusions of the
Technical Preparatory Group on the Agreement set up within the
International Coffee Organization (ICO) to prepare the ground for possible
negotiations .
The current Agreement , which, came into force on 1 October 1983 , expires on
30 September 1989 .
2 . The dominant position of the Community and the Member States within the
group of consumers , which has become more pronounced in recent years ,
confers considerable political responsibilities . The Community of Twelve
accounted for 35% of total imports by all member countries of the Agreement
in 1985/63 end its share has now risen to 47.5% .
3 . In view of the importance of the coffee industry and coffee trade in
Europe , and the significance of the commodity for the economies c£ a great
many African , Latin American , Asian and Pacific producers with woich. the
Community has recently been strengthening its ties , the Ccoiourity and its
Member States have always acceded to international coffee a-.jree&snts ; The
basic aim of these agreements is to establish a balance .between production
and consumption and stabilize prices at a level that is fair for consumers
and remunerative for producers .
4 . It should be noted that the renegotiation of a new international
agreement would take place at the same time as the negotiations on the
renewal of the ACP-EEC Convention and that the AGP countries are well
represented in the coffee producers' group . AGP countries account for 27
of the 50 producer members of the Organization and 28% of world output .
5 . The purpose of this communication is to present , on the basis of a draft
Council Decision , negotiating directives that could be supplemented at a
later date in the light of developments .
II . Backgoord. to international cooperatioa an ooffea
1 . Hie International Coffee Agreement is the oldest of the commodity
agreements aimed at price stabilization . 'The Latin American producers came
up with proposals for a market organization based on export quotas as early
as 1929 . After a number of short-term agreements among producers , a
working party on coffee set up by the UN drew up the first International
Coffee Agreement , signed in 1962 . The first five-year Agreement was
followed by three others , signed in 1968 , 1976 and 1983 . The basis of
these Agreements has been a system of quotas .
                                                                              I
 ---pagebreak--- 2 . The 1983 Agreement has 74 signatories , of which 50 are producer
countries and 24 consumers . Together , they account for 99% of world output
and 90% of world consumption . The main non-member consumer countries are
the East European countries . World trade in coffee is worth same
12 billion dollars a year .
3 . The Community and its Member States have played an active part in the
negotiation and management of all the International Coffee Agreements .
III . Préparations for possible negotiatlons on a new Agressent
1 . The Community 's preparations for the negotiation of a new International
Agreement started at the meeting of the Council 's Working Par try on
Commodities on 21 January where the Commission presented a memorandum
containing some initial ideas on the current International Agreement .
2 . When the ICC met from 25 to 29 April this year the Community spoke in
favour of continued international cooperation on coffee . It was decided to
set up a Technical Preparatory Group on the Agreement with, the task of
compiling a list of the difficulties arising from the provisions of the
1983 International Coffee Agreement and examining proposals presented Ly
members with a view to resolving these difficulties . The Group was open to
all members of the ICO and to observers designated by international
organizations aid. invited non-member countries .
Hie Group has met twice , from 31 May to 3 June and from 25 to 29 July .
3 . The Camnunity and the Member States have taken full part in the work of
the Group and have presented two papers :
(i)      WP4/ 88 of 1 June 1988 outlining the Comunity 's preliminary
         position . The paper sets out the main problems concerning the
         objectives and workings of the 1983 International Coffee Agreement ;
(il )    WPI2/ 88 of 25 July 1988 - a supplementary memorandum .  For each of
         the problems identified in the earlier paper it puts forward a few
         ideas for discussion .
 ---pagebreak--- 4 . Most consumer countries have supported the preliminary guidelines
suggested by the Community concerning production policy , price
differentials between members and non-members , selectivity aid availability
of coffee on the market , stocks , the verification system , declsion-makl rg
and indicator prices .     The producer countries have showed readiness to
discuss some of these ideas , notably the issues of selectivity , the overall
quota and indicator prices .
A restricted technical working party has been set up to study a selective
quota adjustment system and the type of indicator prices needed to makp the
system work .
IV . Participation of the Cammunity and lts           States
1 . It is important for the Community to play an active part in the various
stages leading to the drawing up of an International Coffee Agreement .
The Community has always worked hand in hand with the Member States in the
preparatory work and negotiations leading to the four previous Agreements ,
and in the administration of the Agreements themselves , and it has always
proved possible to adopt a common position .
2 . Since 27 March 1981 the procedures for participation by the Community
and the Member States have been governed by an arrangement concerning the
participation of the Community and its Member States in international
proceedings on commodities . 1 The arrangement provides for joint
participation in the form of a joint delegation that puts forward a common
position .
3 . This communi cat i on will provide       . .
the basis for the adoption of a common position on the main economic
provisions of any future Coffee Agreement so that the Community and its
Member States can play an active part in the formulation of the decision
that the ICC will have to take on the opening of negotiations regarding the
future of the International Agreement . The Commission may make further
proposals as and when necessary .
4 . The Coommision recommends that the Council adopt the
Decision attached hereto and the negotiating directives annexed .
1 Council document 5887/81 of 27 March 1981 .
 ---pagebreak---                      RECOMMENDATION FOR A COUNCIL DECISION
                             uF .
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Coxnrnunity ,
and in particular Articles 113 and 116 thereof ,
Having regard to the Recommendation from the Commission ,
Whereas Article 68(2) of the International Coffee Agreement 1S83 provides
that at any time after 30 September 1987 , the International Coffee Council
nay , by a vote of 58% of the members , decide that the Agreement be
renegotiated or extended , with or without modification , , for such period as
it shall determine ;
Whereas to this end the International Coffee Council decided at its meeting
of 25–29 April 1988 on the steps to be taken in the coffee year 1967-88
with a view to renegotiating the Agreement , namely the setting-up of a
Technical Preparatory Group ;
Whereas the conclusions reached, by the Technical Preparatory Group at its
meetings in London from 31 May to 3 June and from 25 'to 2S July have been
considered ;
Whereas the Community should participate by means of a caramon delegation
proceeding on the basis of a common position established beforehand in
accordance with the usual procedures and. expressing this oammon poeitian
with a single voice ; whereas the spokesman shall normally be a Commission
representative ,
HAS DECIDED AS FOLLOWS :
 ---pagebreak---                                    - 2 -
                                Sole Article
The Community and its Member States shall take part in the meetings
concerning the application of Article 68(2) of the International Coffee
Agreement 1983 on the basis of a common position .
The spokesman for this oammon position shall normally be the Commission
representative .
The Commission representative shall express the common position in
accordance with the directives set out in the Annex and any amendments or
additions that may be made where necessary on the basis of Commission
proposals .
Dane at Brussels ,                                      For the Council
                                                         The President
 ---pagebreak---                                                               Annex
               DRAFT DIRECTIVES FOR THE NEGOTIATION OF A HJTPKE
                         INTERNATIONAL COFFEE AGREEMENT
                                                  aavisw
1 . These directives concern the economic provisions of any future draft
International Coffee Agreement . They take account of the need to strike a
balance between the duties and obligations of producers and consumers and
embody the position expressed by the Community and its Member States on the
possible options for international cooperation on coffee , summarized below :
(i )      international cooperation on coffee has to continue under an
          international agreement ;
(ii )     the 1983 Agreement should not be renewed ;
(.1.11 )  a renegotiation of the 1983 Agreement would be preferable in view
          of the number of amendments to be made , the criticisms expressed,
          about the functioning of the Agreement and the experience acquired .
These directives will be supplemented in the light of proceedings on the
basis of Commission proposals .
2 . Any future agreement will have to be based , like the 1933 Agreement , on
a system of export quotas aid a price scale , underpinned by compulsory
controls .
Diahstantial changes may , however , be made to overcome "the major stumbling
blocks to the implementation of the 1983 Agreement , namely inadequate
supnlies of 'the right quality ard the selling price differential 1 etwee,
mercer ard non-member importers .
3 . The objective of market stabilization under the Agreement .should act os
en incentive to producing countries to regulate their production ard
exports to meet demand .
4 . Briefly , three possible forms of Agreement emerged from the pre-Tarav/cy
'balks of the Technical Preparatory Grou p convened by the International
Coffee organization from 31 May to 3 June and from 25 to 29 obiy .
1 Inteniational Coffee Organization , WP Agreement No 4/ 88 of 1 June 1983 :
" Prelimi nary position of the EEC " .
 ---pagebreak---                                      - 2 -
(i)      a system of withholding stocks based on regulation of stocks by
         producing countries , backed up by export controls (a system
         suggested by one of the major consumer countries );
(ii)     a system of universal quotas accompanied by a simplified system of
         export and import controls (suggested by the Community (see IOO-WP
         Agreement No 12/88 of 25 July);
(iii)    maintenance of the system of quotas based on two import markets ,
         that of member countries and that of non-members , backed up by
         tough controls (system favoured by most producing countries).
5 . The overriding objective of the new Agreement must be to create a
balanced market , which , although price fluctuations cannot be avoided ,
would ensure steady and adequate supplies to the Importing countries on
terms that do not discourage an increase in production of high-quality
coffee .
6 . In the negotiations , the Community and its member States will be arguing
in favour of the following principles :
6.1 .    Establishment of a universal export quota covering imports of
         coffee worldwide by both member and non-member countries . The
         corresponding quota system would be linked to a system of
         simplified import and export controls .
6.2 .    Introduction of the principle of selectivity in the quota system in
         order to ensure that European trade and industry can obtain the
         quantity and quality of supplies required by the market .
6.3      Adoption of a price support mechanism to keep price margins at
         previous years' levels (120-140 US cents/lb), whatever method of
         calculation is chosen .
6.4 .    Revision of the composite price indicator so that it can be
         adjusted in the light of developments on the market of each type of
         coffee (price and market share).
                                                                              8


title: AGREEMENT BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE ARAB REPUBLIC OF YEMEN ON THE SUPPLY OF WHEAT OTHER THAN DURUM AS FOOD AID

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (71) 1209
Vol. 1971/0196
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak---                       COMMISSION OF THE EUROPEM COKMOiïITIES
                                        COM(71)1209 final
                                        Brussels , 26 October 1971
                                  agreement
                  BETWEEN THE EUROPEAN ECONOMIC COMMUNITY
                       AND THE ARAB REPUBLIC OP YEMEN
                  ON THE SUPPLY OP WHEAT OTHER THAN DURUM
                                 AS FOOD AID
C0M(71 ) 1209 final
 ---pagebreak--- THE COUNCIL OF THE EUROPEAN COMMUNITIES .
                               on the one hand , and
THE GOVERNMENT OF TEE ARAB REPUBLIC OF YEMEN ,
                               on the other hand ,
HAVE DECIDED to conclude the present Agreement and have ,
for this purpose , appointed as their plenipotentiaries :
THE COUNCIL OF THE EUROPEAN COMMUNITIES :
THE GOVERNMENT OF THE ARAB REPUBLIC OF YEMEN S
WHO HAVE AGREED as follows :
 ---pagebreak---                          ARTICLE I
  Under its food aid programme for cereals for the year 1970/71 j the
 European Economic Community shall , in accordance with the decision
  taken by the Council on 6 April 1971 t make the Arab Republic of Yemen
  a gift of 7«000 tons of wheat other than durum ( hereinafter referred
  to as "wheat ") •
  Deliveries shall be in bulk , f.o.b . Community ports .
  The Commission of the European Communities shall inform the Arab
  Republic of Yemen in good time , by letter , telex or telegram , of
  the ports of shipment , the quantities , the dates of availability
  at the said ports and the daily loading rate .
  The responsibilities of the European Economic Community and the
  Arab Republic of Yemen with regard to shipment and to taking
; delivery f.o.b . respectively are set out in the Annex , which
  forms an integral part of the present Agreement .
 ---pagebreak---                           - if -
                        ARTICLE II
The Arab Republic of Yemen undertakes to make all necessary
arrangements ; for transporting the wheat from the ports of
shipment to its destinations
It undertakes to exercise the greatest possible care to ensure
that the tendering arrangements for the transport by sea are not
prejudicial to the free play of fair competition . Any problem
arising in this connection shall be the subject of consultations
under Article VIII of the present Agreement .
                        ARTICLE III
The Arab Republic of Yemen undertakes to use for consumption
purposes the wheat that is supplied as aid and to apply to sales
of this wheat on its market the prices normally ruling on this
market for products of comparable quality .
The proceeds of these sales t less sea freight charges and normal
marketing costs on the Yemen market , shall be paid into a special
account intended to cover expenditure incurred by the Arab
Republic of Yemen in connection with the financing of development
projects .
 ---pagebreak---                                     ARTICLE  TV
The Contracting Parties undertake to implement the present Agreement in such a way
as to avoid prejudicing the noriaal structure of national production and inter
national trade . To this end , they shall take the necessary steps to ensure
that supplies made available as aid shall be additional to , and not in lieu
of , the commercial operation which could reasonably have been expected in
the absence of such supplies . In particular the Arab Republic of Yemen
undertakes to import commercially from all sources , between 1 July 1971 and
30 June 1972 , a minimum of 45 « 000     tons of wheat or the equivalent in
wheat flour .
                                    ARTICLE  V,
The Arab Republic of Yemen shall take all necessary steps to prevent the
re-exportation both of the wheat received as aid , and of products of the'
first processing stage and by-products obtained from wheat , as well as the
exportation , commercial or otherwise , within a period of six months from
the date of the last delivery , of locally grown wheat of the same type as
that received as aid , of products of the first processing stage and of
by-products obtained from this wheat .
 ---pagebreak---                           AETICLE VI
The Arab Republic of Yemen undertakes to keep the European
Economic Community informed on the conditions of implementation of
the present Agreement . To this end , it shall communicate the follo
wing information to the Commission of the European Communities :
1 . Transport : ports and dates of arrival of vessels ; nature , quantity
    and quality of the produce unloaded : the date on which unloading
    is completed :
2 . Marketing : quantities sold ; method of marketing , selling prices ;
3 . Commercial imports s quantities of wheat and wheat flour imported
    commercially from all sources between 1 July 1971 end 30 June 1972 ?
4 . Situation with regard to the special account set up with the
    proceeds of the sale , in local currency of the wheat supplied
    as aid :
5 » Projects financed from the special account 5 relative importance
    of these funds in the overall financing of projects .
 ---pagebreak---                          ARTICLE VII
The information referred to in Article VI shall be communicated
within the following time-limits :
- With regard to itera 1       : not more than 30 days after the
  unloading of each cargo :
- With regard to itera 3     :         before 30 sept amber 1972 ;
- With regard to iteu 2 S 4 and 5      : a report on the situation at
  31 December each year shall be communicated before 13 January of
  the following year , until such time as the special account has
  been completely liquidated .
                         AHTIC3.E VIII
At the request of any one amongst them , the Contracting Parties shall
consult on all matters concerning the application of the present
Agreement .
                          ARTICLE IX
The present Agreement is drawn up in duplicate in the German , French ^
Italian , Dutch and English languages , each of these texts being
equally authentic .
 ---pagebreak---                                                   ANNEX
            CONDITIONS APPLICABLE TO THE HANDING OVER
              OF THE WHEAT AT THE PORTS OF SHIPMENT
To ensure the smooth operation of the Agreement and in particular
of Article I thereof , the Contracting Parties have agreed as
follows :
                       ARTICLE 1
Except as otherwise provided in Article     sixth paragraph , delivery
will be deemed to be effected at the moment at which the goods have
effectively passed the ship 's rail at the port of shipment ? all
costs of stowage and securing shall be borne by the Arab Republic
of Yemen .
                       ARTICLE 2
Except as otherwise provided in Article 3 » sixth paragraph , risks
shall pass from the European Economic Community to the Arab Republic
of Yemen at the moment at which the goods have effectively passed
the ship 's rail at the port of shipment .
 ---pagebreak---                             9
The Arab Republic of Yemen shall procure and notify to the
European Economic Community , in good time ,, the vessels which are
to ship the goods , so that the loading dates indicated in accordance
with Article I of the Agreement may be respected .
The vessel is to be named by the Arab Republic of Yemen at least
7 clear days prior to the estimated date of arrival in port .
The Arab Republic of Yemen shall be responsible for any consequences
arising either , from failure to name the vessel or from delay in
doing so .
The Arab Republic of Yemen shall insert in the charter-party a clause
requiring the captain to inform the European Economic Community at
least 72 hours in advance of the vessel 's estimated date of arrival
in port .
The goods shall be held at the disposal of the Arab Republic of Yemen
iri the port indicated from the date on which the ship is declared
ready for loading . In the event of the European Economic Community
not placing the goods at the disposal of the vessel in good time ,,
any consequences resulting from this , in particular demurrage and/or
dead freight , shall be a charge on the European Economic Community .
 ---pagebreak--- Should there be a delay in the arrival of the vessel named by the
Arab Republic of Yemen at the port of shipment , or should it prove
impossible for it to load , and should this delay prevent loading
within the time-limits indicated in accordance with Article I
of the Agreement , the goods shall be held at the expense , risk anc
peril of the Arab Republic of Yemen .
Should the Arab Republic of Yemen fail to provide a vessel of
suitable tonnage within the time-limit indicated in accordance wi<
Article I of the Agreement , it shall be regarded as being in defai
unless it notifies the European Economic Community by telegram , nc
later than the last day of the period fixed for delivery , that it
is seeking an extension of this period . Where such an extension it
sought , the European Economic Community shall hold the goods on
behalf of the Arab Republic of Yemen , expenses resulting from this
being borne by; the latter .
The Arab Republic of Yemen shall be responsible for any consequenc
resulting from the fact that the dimensions of a vessel supplied
by it do not correspond to the loading possibilities of the port
of shipment .
 ---pagebreak---                           *■ 11 »»
                        ARTICLE k
The tolerance on shipment of the quantities notified in accordance
with Article I of the Agreement shall be 5      although the total
quantity of 7^000 tons shall in no case be exceeded .
If , however , the quantity made available for loading on a given
vessel cannot be put on board in its entirety because of circums
tances beyond the control of the European Economic Community , the
balance which could not be put on board within the specified time-
limits shall be. .stored at the expense of the Arab Republic of Yemen
and shipped on the next vessel . .
If the Arab Republic of Yemen informs the European Economic Community
within a period of 15 clear days that it will not take delivery of
this balance , the handling and storing expenses incurred shall be
borne by the Arab Republic of Yemen until such time as it gives
notice that it gives up this balance .
In this event , the European Economic Community .may consider that it
has discharged its commitments to the Arab Republic of Yemen .
 ---pagebreak---                          - 12 -
                      ARTICLE S
Once the goods are on board the vessel , the European Economic
Community shall notify the Arab Republic of Yemen without delay
of the date of loading , the quantity and quality loaded , noted on
loading and mentioned in the vessel 's bill of lading .
                      ARTICLE 6
All expenses incurred subsequent to delivery of the goods once these
have effectively passed the ships 's rail , shall be borne by the
Arab Republic of Yemen .
                      ARTICLE 7
The Contracting Parties reserve the right to nominate one or more
agents to execute the Agreement .
To deal with anu eventualities , the Arab Republic of Yemen shall
nominate a representative in each port of shipment .


RECOMMENDATION FOR A COUNCIL DECISION ON THE CONCLUSION OF THE AGREEMENT IN THE FORM OF AN EXCHANGE OF LETTERS TEMPORARILY AMENDING CERTAIN PROVISIONS OF ANNEX 3 TO THE AGREED RECORD OF CONCLUSIONS REACHED IN BILATERAL NEGOTIATIONS BETWEEN THE EUROPEAN COMMUNITIES AND AUSTRALIA IN THE GATT MULTILATERAL TRADE NEGOTIATIONS