title: Recommendation for a Council Decision concerning the signing and notification of provisional application by the European Economic Community of the International Coffee Agreement 1983 (submitted to the Council by the Commission)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (83) 286
Vol. 1983/0115
 ---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
                                                                        C 0 M 1 8 3 ) 2 8 6 f i nal
                                                                        B r u s s e l s , 30 May 1 9 8 3
                                  R e c o m m e n d a t i o n for a C o u n c i l D e c i s i o n
                 c o n c e r n i n g the s i g n i n g and n o t i f i c a t i o n of p r o v i s i o n a l
                  a p p l i c a t i o n by the E u r o p e a n E c o n o m i c C o m m u n i t y of the
                                     I n t e r n a t i o n a l C o f f e e A g r e e m e n t 1 983
                            ( s u b m i t t e d to the C o u n c i l by the C o m m i s s i o n )
    C 0 M ( 8 3 ) 2 8 6 f i nal
 ---pagebreak--- Explanatory memorandum
N e g o t i a t i o n s c o n c e r n i n g the n e w I n t e r n a t i o n a l C o f f e e A g r e e m e n t 1 983
w e r e c o n c l u d e d on 16 S e p t e m b e r 1982 w i t h i n th e f r a m e w o r k of the
I n t e r n a t i o n a l C o f f e e C o u n c i l , w h i c h g r o u p s t o g e t h e r 47 e x p o r t i n g
c o u n t r i e s a n d 24 i m p o r t i n g c o u n t r i e s .          T h e o v e r a l l s t r u c t u r e of the n e w
A g r e e m e n t is b r o a d l y t h e s a m e as that of t h e p r e v i o u s 1 9 7 6 A g r e e m e n t ,
b a s e d on a s u p p l y r e g u l a t i o n m e c h a n i s m (e xpo rt q u o t a s ) l i nke d to a p r i c e
r a n g e a n d to a s y s t e m of impor t c o n t r o l s , a l t h o u g h m o r e f l e x i b l e e l e m e n t s
h a v e b e e n i n t r o d u c e d , t h e r e b y i m p r o v i n g it a n d b r i n g i n g it up to date.
S u c h e l e m e n t s i n c l u d e the f o l l o w i n g :
- the b a s i c q u o t a s a r e f i x e d b y the A g r e e m e n t C o u n c i l for at least two
     c o f f e e y e a r s c o m m e n c i n g 1 O c t o b e r 1 9 8 4 and, p r i o r to the en d of this
     p e r i o d , if n e e d be, for the r e m a i n d e r of the d u r a t i o n of th e A g r e e m e n t .
     S h o u l d th e C o u n c i l fail to reach a d e c i s i o n , q u o t a s will be s u s p e n d e d
     n o t w i t h s t a n d i n g t h e o t h e r p r o v i s i o n s r e l a t i n g to q u o t a s .
     A n g o l a is t r e a t e d as a s e p a r a t e c a s e in o r d e r to t a k e a c c o u n t of the
     d i f f i c u l t c u r r e n t s i t u a t i o n t h e r e f o l l o w i n g the e v e n t s w h i c h h ave
     o c c u r r e d in that c o u n t r y , a n d in o r d e r to s a f e g u a r d the fu tur e.
 - a p e r c e n t a g e (4.2%) of the o v e r a l l q u o t a f i x e d by the C o u n c i l is
      r e s e r v e d fo r all the m e m b e r c o u n t r i e s to w h i c h no b a s i c q u o t a is
     allocated.                M o r e f a v o u r a b l e m e a s u r e s ar e e n v i s a g e d in re spe ct of
     two land-locked countries, namely Rwanda and Burundi.
 - t h e p r o v i s i o n s r e l a t i n g to the m a i n t e n a n c e , s u s p e n s i o n a n d r e s t o r a t i o n
      of q u o t a s will e n s u r e t h at, to s ome d e g r e e , th e q u o t a s y s t e m will o p e r a t e
      a u t o m a t i c a l l y f r o m y e a r to y e a r in the event of d i f f i c u l t i e s w i t h i n the
      C o u n c i l p r e v e n t i n g a d e c i s i o n f r o m b e i n g tak e n .          A l so, the E x e c u t i v e
      D i r e c t o r is u n d e r c e r t a i n c i r c u m s t a n c e s e m p o w e r e d to fix an o v e r a l l
      a n n u a l q u o t a on th e b a s i s of c o n s u m p t i o n , in o r d e r to p r e s e r v e the
      c o n t i n u i t y of th e s y s t e m a n d a v o i d a p o s s i b l e m a r k e t c o l l a p s e .
  - t h e d e c l a r a t i o n of q u o t a s h o r t f a l l s to e n s u r e t h e i r r e - d i s t r i b u t i o n is
      i n t e n d e d to a v o i d q u o t a s w h i c h m i ght not c o r r e s p o n d to a c t u a l s u p p l i e s
      of c o f f e e a v a i l a b l e for e x p o r t a n d will have the e f fec t of g u a r a n t e e i n g
       r e g u l a r s u p p l i e s to i m p o r t i n g m e m b e r c o u n t r i e s .
 ---pagebreak---                                                                                2/
   - t h e p o s s i b l e a d o p t i o n b y t h e C o u n c i l of a s e l e c t i v e a d j u s t m e n t syste m
       for q u o t a s in line w i t h p r i c e m o v e m e n t s f o r th e m a i n c a t e g o r i e s of
       c o f f e e is n o w p o s s i b l e , f o l l o w i n g a s t u d y of t h e f e a s i b i l i t y of such
       a syst e m .
   - the e x p o r t i n g m e m b e r s u n d e r t a k e to a d o p t a n d i m p l e m e n t a p r o d u c t i o n
       p o l i c y a i m e d at a t t a i n i n g th e o b j e c t i v e s of t h e A g r e e m e n t .
   - the d u r a t i o n of t h e A g r e e m e n t w ill be f o r six y e a r s i.e. u n t i l September
       1989 .
2. T h e n e w A g r e e m e n t was n e g o t i a t e d b y t h e C o m m u n i t y a n d its M e m b e r State s on
   the b a s i s of a p r e v i o u s l y e s t a b l i s h e d j o int p o s i t i o n (1).                  T h e amend ments
   a p p e a r i n g in t h e n e w 1 9 8 3 A g r e e m e n t w e r e a c c e p t e d by the C o m m u n i t y and the
   M e m b e r S t a t e s in th e c o u r s e of t h e n e g o t i a t i o n s .
3. T h e A g r e e m e n t is o p e n for s i g n i n g b e t w e e n 1 J a n u a r y a n d 30 J u n e 1983.
   T h e C o m m i s s i o n p r o p o s e s that the C o m m u n i t y a n d its M e m b e r S t a t e s shoul d
   s ign it as s o o n as p o s s i b l e .
4. In v i e w of th e p e r i o d s of t i m e n e c e s s a r y for t h e                  c o n c l u s i o n of the
   c o n s t i t u t i o n a l p r o c e d u r e s in c e r t a i n M e m b e r S t a t e s , th e C o m m i s s i o n also
   p r o p o s e s that t h e C o m m u n i t y a n d its M e m b e r S t a t e s s h o u l d n o t i f y , by 30
   S e p t e m b e r 1 9 83, t h e i r i n t e n t i o n to a p p l y t h e A g r e e m e n t on a p r o v i s i o n a l
   b a s i s p e n d i n g th e c o m p l e t i o n of t h e p r o c e d u r e s n e c e s s a r y f o r its
   conclusion.
    It s h o u l d b e n o t e d that the C o m m u n i t y is the w o r l d ' s b i g g e s t c o n s u m e r
   of c o f f e e , w i t h a r o u n d 4 0 % of w o r l d i m por t t r a d e , a n d that t h e percentage·
   of v o t e s held by th e M e m b e r S t a t e s of th e EEC ou t of t h e m i n i m u m of
   8 0 % of the v o t e s n e c e s s a r y on th e i m p o r t e r s ' s i d e in o r d e r for the
   A g r e e m e n t to e n t e r i n t o f o r c e is c r u c i a l .
   M o r e o v e r , c o f f e e e , w i t h a t r a d e t o t a l l i n g a r o u n d 12 0 0 0 m i l l i o n Î a year,
   r e p r e s e n t s o n e of t h e most i m p o r t a n t c o m m o d i t i e s for t h e e x p o r t e arni ngs
   of m a n y d e v e l o p i n g c o u n t r i e s .
   (1) S e e C o u n c i l D o c u m e n t N° 4 4 6 7 / 8 2 P r o b a 4 of 17 J a n u a r y 1982.
 ---pagebreak---                                                                                3/
T h e p o l i t i c a l i m p o r t a n c e for the C o m m u n i t y of s i g n i n g the A g r e e m e n t and
of n o t i f y i n g its p r o v i s i o n a l a p p l i c a t i o n p r i o r to th e o p e n i n g of the
B e l g r a d e s e s s i o n of the U n i t e d N a t i o n s C o n f e r e n c e on T r a d e and D e v e l o p m e n t
its t h e r e f o r e s i g n i f i c a n t .
In c o n c l u s i o n , the C o m m i s s i o n r e c o m m e n d s that th e C o u n c i l adopt the
d r a f t d e c i s i o n r e l a t i n g to t h e s i g n i n g a n d n o t i f i c a t i o n of p r o v i s i o n a l
a p p l i c a t i o n by the E u r o p e a n E c o n o m i c C o m m u n i t y of the I n t e r n a t i o n a l
C o f f e e A g r e e m e n t 1983 .
 ---pagebreak---                                                   COUNCIL DECISION
                  c o n c e r n i n g t h e s i g n i n g a n d n o t i f i c a t i o n of p r o v i s i o n a l
                  a p p l i c a t i o n by t h e E u r p p e a n E c o n o m i c C o m m u n i t y of th e
                                    International Coffee Agreement 1983
T H E C O U N C I L OF T H E E U R O P E A N C O M M U N I T I E S ,
H a v i n g r e g a r d to th e T r e a t y e s t a b l i s h i n g the E u r o p e a n E c o n o m i c C o m m u n i t y , a n d
in p a r t i c u l a r A r t i c l e 1 1 3 t h e r e o f .
H a v i n g r e g a r d to t h e r e c o m m e n d a t i o n f r o m t h e C o m m i s s i o n ,
W h e r e a s th e I n t e r n a t i o n a l C o f f e e A g r e e m e n t 1 9 8 3 is o p e n for s i g n i n g u n t i l
3 0 J u n e 1983; w h e r e a s t h e s a i d A g r e e m e n t r e p r e s e n t s an i n s t r u m e n t f o r r e g u l a t i n g
 i n t e r n a t i o n a l t r a d e , h a v i n g as its m a i n o b j e c t to b a l a n c e s u p p l y a n d d e m a n d for
 c o f f e e in o r d e r to s t a b i l i z e t h e p r i c e of that p r o d u c t in the light of m a r k e t
 c o n d i t i o n s ; w h e r e a s a p p l i c a t i o n of th e s a i d A g r e e m e n t by t h e C o m m u n i t y will
 c o n t r i b u t e to th e r e a l i z a t i o n of its c o m m o n c o m m e r c i a l p o l i c y ,
 W h e r e a s t h e C o m m u n i t y s h o u l d t h e r e f o r e s i g n the s a i d A g r e e m e n t a n d n o t i f y the
 S e c r e t a r y - G e n e r a l of t h e U n i t e d N a t i o n s of its i n t e n t i o n to a p p l y it on a p r o v i
 s i o n a l b a s i s , s u b j e c t to its s u b s e q u e n t a p p r o v a l ,
 HAS D E C I D E D AS F O L L O W S
                                                          Apt i cl e 1
 In a c c o r d a n c e w i t h A r t i c l e 59 of th e I n t e r n a t i o n a l C o f f e e A g r e e m e n t           1 9 C 3 , the
 C o m m u n i t y will s i g n t h e s a i d A g r e e m e n t by 3 0 J u n e 1983 .
                                                          Article 2
 In a c c o r d a n c e w i t h A r t i c l e 61 of the I n t e r n a t i o n a l C o f f e e A g r e e m e n t 1 9 8 3 , the
 C o m m u n i t y will d e p o s i t w i t h th e S e c r e t a r y - G e n e r a l of th e U n i t e d N a t i o n s , by
 30 S e p t e m b e r 1 9 83, th e n o t i f i c a t i o n a n n e x e d to t h i s D e c i s i o n , to th e e f f e c t that
 t h e C o m m u n i t y will i m p l e m e n t th e s a i d A g r e e m e n t on a p r o v i s i o n a l b a s i s , in its
  c a p a c i t y as an i m p o r t i n g m e m b e r , w h e n t h e A g r e e m e n t e n t e r s i nto f o r c e in a c c o r d a n c e
  w i t h th e s a i d A r t i c l e .
                                                          Article 3
  Th e P r e s i d e n t of the C o u n c i l is h e r e b y a u t h o r i z e d to d e s i g n a t e the p e r s o n
  e m p o w e r e d to s i g n th e A g r e e m e n t a n d to d e p o s i t the n o t i f i c a t i o n of p r o v i s i o n a l
  a p p l i c a t i o n of th e A g r e e m e n t .
  T h e t e x t s of t h e n o t i f i c a t i o n of a p p l i c a t i o n a n d of t h e A g r e e m e n t a r e a n n e x e d
  to t his D e c i s i o n (j).
  D one at B r u s s e l s ,                                                                        For the C o u n c i l
                                                                                Th e P r e s i d e n t
  (1) The text of t h e I n t e r n a t i o n a l C o f f e e A g r e e m e n t 1 9 8 3 will be p u b l i s h e d as an
          a d d e n d u m to t h i s d o c u m e n t .
 ---pagebreak---                                                                                ANNEX
N o t i f i c a t i o n of p r o v i s i o n a l a p p l i c a t i o n of the I n t e r n a t i o n a l C o f f e e A g r e e m e n t 1983
 In a c c o r d a n c e w i t h A r t i c l e 61 of the I n t e r n a t i o n a l C o f f e e A g r e e m e n t , the Coun c i l
 of th e E u r o p e a n C o m m u n i t i e s h e r e b y n o t i f i e s th e S e c r e t a r y - G e n e r a l of the U n i t e d
 N a t i o n s , th e d e p o s i t a r y of t h e A g r e e m e n t , that it i n t e n d s to i m p l e m e n t the
 i n s t i t u t i o n a l p r o c e d u r e r e q u i r e d for the a p p r o v a l of the s a i d A g r e e m e n t a n d that
 the C o m m u n i t y w i l l a p p l y th e A g r e e m e n t on a p r o v i s i o n a l b a s i s , in its c a p a c i t y
 as a c o n s u m e r m e m b e r , w h e n it e n t e r s into f o r c e in a c c o r d a n c e w i t h the s a i d
 Arti c le.
 ---pagebreak---                   INTERNATIONAL           COFFEE        ORGANIZATION
ORGANIZACION      INTERNACIONAL      DEL CAFE
ORGANIZACÄO       INTERNACIONAL      DO CAFÉ
ORGANISATION      INTERNATIONALE     DU CAFE
  J^222§§33222S2S22!!2iÄH!i!!!i232iS
                                        INTERNATIONAL
                                        COFFEE
                                        AGREEMENT
                                        1983
                                        COPY OF A U TH EN TIC ATED T E X T
                                        October 1982
                                        London, England
 ---pagebreak---                                  CONTENTS
Article                                                     Page
        Preamble                                              1
                          CHAPTER I - OBJECTIVES
   1    Objectives                                             2
   2    General undertakings by Members                        3
                         CHAPTER II - DEFINITIONS
    3   Definitions                                            5
                         CHAPTER III - MEMBERSHIP
    4   Membership in the Organization                         9
    5    Separate membership in respect of
         designated territories                               10
    6    Group membership upon joining the Organization       10
    7    Subsequent group membership                          13
               CHAPTER IV - ORGANIZATION AND ADMINISTRATION
    8    Seat and structure of the
         International Coffee Organization                    14
    9    Composition of the International CoffeeCouncil       14
   10    Powers and functions of the Council                  14
   11    Election of the Chairman and Vice-Chairmen
         of the Council                                       15
   12     Sessions of the Council                             16
   13    Votes                                                16
   14    Voting procedure of the Council                      18
                                    - i -
 ---pagebreak--- »
   Article                                                          Page,
       15      Decisions of the Council                               18
      16       Composition of the Board                               19
      17      Election of the Board                                  20
      18      Competence of the Board                                21
      19      Voting procedure of the Board                          22
      20      Quorum for the Council and the Board                   23
     21       The Executive Director and the staff                   23
     22       Cooperation with other organizations                  24
                       CHAPTER V - PRIVILEGES AND IMMUNITIES
     23      Privileges and immunities                              25
                               CHAPTER VI - FINANCE
    24       Finance                                               27
    25       Determination of the Budget and
             assessment of contributions                           27
    26      Payment of contributions                               28
   27       Audit and publication of accounts                      29
                 CHAPTER VII - REGULATION OF EXPORTS AND IMPORTS
   28       General provisions                                    30
   29      Markets subject to quota                               30
  30       Basic quotas                                           30
  31       Exporting Members exempt frombasic quotas             31
  32       Provisions for the adjustment ofbasic quotas          33
  33       Provisions for the continuation, suspension
           and réintroduction of quotas                          33
                                    - ii -
 ---pagebreak--- Article                                                         Page
  34    Setting of the global annual quota                        36
  35    Allocation of annual quotas                               37
  36    Quarterly quotas                                          38
  37    Adjustment of annual and quarterly quotas                 39
  38    Price measures                                            39
  39    Additional measures for the adjustment of quotas         40
  40    Shortfalls and undershipments                            41
  41    Export entitlement of a Member group                      41
  42    Compliance with quotas                                    42
  43    Certificates of Origin and other forms of Certificates    43
  44    Exports not charged to quotas                            45
  45    Regulation of imports                                    46
                CHAPTER VIII - OTHER ECONOMIC PROVISIONS
  46    Measures related to processed coffee                     48
  47    Promotion                                                 48
  48    Removal of obstacles to consumption                    ■ 51
  49    Mixtures and substitutes                                 52
  50    Production policy                                        53
  51    Policy relative to coffee stocks                         53
  52    Consultation and cooperation with the trade              54
  53    Information                                              54
  54    Studies                                                  55
  55    Special Fund                                             56
  56    Waiver                                                   58
                                 - iii -
 ---pagebreak---  Article                                                        Page
            CHAPTER IX - CONSULTATIONS, DISPUTES AND COMPLAINTS
    57    Consultations                                          59
    58    Disputes and complaints                                59
                        CHAPTER X - FINAL PROVISIONS
   59     Signature                                              62
   60     Ratification, acceptance, approval                     62
   61     Entry into force                                       63
   62     Accession                                              64
   63     Reservations                                           65
   64     Extension to designated territories                    65
   65     Voluntary withdrawal                                   66
   66     Exclusion                                              66
   67     Settlement of accounts with withdrawing
          or excluded Members                                    67
   68    Duration and termination                                68
   69    Amendment                                               69
   70    Supplementary and transitionalprovisions                70
  71     Authentic texts of the Agreement                        70
Annexes
    1    People's Republic of Angola                             73
    2    Exporting Members subject to theprovisions
         of Article 31                                           75
    3    Share of individual Members in theglobal quota
         for exporting Members entitled to a basic quota
         in coffee year 1983/84                                  77
                                  - iv -
 ---pagebreak---                      INTERNATIONAL COFFEE AGREEMENT 1983
                                  Preamble
      The Governments party to this Agreement,
      Recognising the exceptional importance of coffee to the economies of
many countries which are largely dependent upon this commodity for their
export earnings and thus for the continuation of their development
programmes in the social and economic fields;
      Considering that close international cooperation on trade in coffee
will foster the economic diversification and development of coffee-
producing countries, will improve political and economic relations
between producers and consumers and will provide for increasing consumption
of coffee;
      Recognising the desirability of avoiding disequilibrium between
production and consumption which can give rise to pronounced fluctuations
in prices harmful both to producers and to consumers;
      Believing that international measures can assist in correcting the
effects of such disequilibrium, as well as help to ensure an adequate
 level of earnings to producers through remunerative prices;
      Noting the advantages derived from the international cooperation
which resulted from the operation of the International Coffee
Agreements 1962, 1968 and 1976;
      Have agreed as follows :
 ---pagebreak---                                     - 2 -
                          CHAPTER I - OBJECTIVES
                                 Article 1
                                Obj ectives
      The objectives of this Agreement are:
 (1 ) to achieve a reasonable balance between world supply and demand on
a basis which will assure adequate supplies of coffee at fair prices to
consumers and markets for coffee at remunerative prices to producers and
which will be conducive to long-term equilibrium between production and
 consumption;
 (2 ) to avoid excessive fluctuations in the levels of world supplies,
stocks and prices which are harmful to both producers and consumers;
 (3)  to contribute to the development of productive resources and to the
promotion and maintenance of employment and income in Member countries,
thereby helping to bring about fair wages, higher living standards and
better working conditions;
(4)   to increase the purchasing power of coffee-exporting countries by
keeping prices in accordance with the provisions of paragraph (1 ) of this
Article and by increasing consumption;
(5)   to promote and increase the consumption of coffee by every possible
means;
(6 )  in general, in recognition of the relationship of the trade in coffee
to the economic stability of markets for industrial products, to further
international cooperation in connection with world coffee problems.
 ---pagebreak---                                     - 3 -
                                  Article 2
                       General undertakings by Members
(1)   Members undertake to conduct their trade policy in such a way that
the objectives set out in Article 1 may be attained.    They further
undertake to achieve these objectives by strict observance of the
obligations and provisions of this Agreement.
(2)   Members recognise the need to adopt policies which will maintain
prices at levels which will ensure adequate remuneration to producers and
seek to ensure that prices of coffee to consumers will not hamper a
desirable increase in consumption.   When such objectives are being
achieved Members shall abstain from multilateral actions which could
affect the price of coffee.
 (3)  Exporting Members undertake not to adopt or maintain any governmental
measures which would permit the sale of coffee to non-members on terms
commercially more favourable than those which they are prepared to offer
at the same time to importing Members, taking into account normal trade
practices.
 (4)  The Council shall review periodically compliance with the provisions
of paragraph (3) of this Article and may require Members to supply
 appropriate information in accordance with the provisions of Article 53.
 (5)  Members recognise that Certificate^ of Origin are a vital source of
 information on the trade in coffee.   During periods when quotas are
suspended, the responsibility for ensuring the proper use of Certificates
 ---pagebreak---                                    - 4 -
nf Origin rests with exporting Members.  However, importing Members,
while under no obligation to demand that Certificates accompany
consignments of coffee when quotas are not in effect, shall cooperate
fully with the Organization in the collection and verification of
Certificates relating to shipments of coffee received from exporting
Member countries in order to ensure that the maximum information is
available to all Members.
 ---pagebreak---                                     - 5 -
                          CHAPTER II - DEFINITIONS
                                  Article 3
                                 Definitions
     For the purposes of this Agreement:
(1)  "Coffee" means the beans and cherries of the coffee tree, whether
parchment, green or roasted, and includes ground, decaffeinated, liquid
and soluble coffee.    These terms shall have the following meaning:
      (a)  "green coffee" means all coffee in the naked bean form before
           roasting;
      (b)  "dried coffee cherry" means the dried fruit of the coffee tree;
           to find the equivalent of dried coffee cherry to green coffee,
           multiply the net weight of the dried coffee cherry by 0.50;
      (c)  "parchment coffee" means the green coffee bean contained in the
           parchment skin;    to find the equivalent of parchment coffee to
            green coffee, multiply the net weight of the parchment coffee
            by 0.80;
       (d)  "roasted coffee" means green coffee roasted to any degree and
            includes ground coffee; to find the equivalent of roasted coffee
            to green coffee, multiply the net weight of roasted coffee by 1.19;
       (e)  "decaffeinated coffee" means green, roasted or soluble coffee
            from which caffeine has been extracted;    to find the equivalent
            of decaffeinated coffee to green coffee, multiply the net weight
            of the decaffeinated coffee in green, roasted or soluble form by
             1.00, 1.19 or 2.6 respectively;
 ---pagebreak---                                     - 6 -
     (f)  "liquid coffee" means the water-soluble solids derived from
          roasted coffee and put into liquid form;   to find the equivalent
          of liquid to green coffee, multiply the net weight of the dried
          coffee solids contained in the liquid coffee by 2 .6 ;  and
      (g) "soluble coffee" means the dried water-soluble solids derived
           from roasted coffee;  to find the equivalent of soluble coffee
           to green coffee, multiply the net weight of the soluble coffee
          by 2 .6 .
 (2) "Bag" means 60 kilogrammes or 132.276 pounds of green coffee;    "tonne"
means a metric tonne of 1,000 kilogrammes or 2,204.6 pounds;    and "pound"
means 453.597 grammes.
(3)  "Coffee year" means the period of one year, from 1 October to
30 September.
(4)  "Organization", "Council" and "Board" mean, respectively, the
International Coffee Organization, the International Coffee Council and
the Executive Board.
(5)  "Member" means a Contracting Party, including an intergovernmental
organization referred to in paragraph (3) of Article 4;   a designated
territory or territories in respect of which separate membership has been
declared under the provisions of Article 5;   or two or more Contracting
Parties or designated territories, or both, which participate in the
Organization as a Member group under the provisions of Article 6 or 7.
(6 ) "Exporting Member" or "exporting country" means a Member or country,
respectively, which is a net exporter of coffee;   that is, a Member or
country whose exports exceed its imports.
 ---pagebreak---                                      - 7 -
(7)    "importing Member" or "importing country" means a Member or country,
respectively, which is a net importer of coffee;    that is, a Member or
country whose imports exceed its exports.
(8)    "Producing Member" or "producing country" means a Member or country,
respectively, which grows coffee in commercially significant quantities.
 (9)   "Distributed simple majority vote" means a majority of the votes cast
by exporting Members present and voting and a majority of the votes cast
by importing Members present and voting, counted separately.
 (10) "Distributed two-thirds majority vote" means a two-thirds majority of
 the votes cast by exporting Members present and voting and a two-thirds
majority of the votes cast by importing Members present and voting,
 counted separately.
  (11) "Entry into force" means, except as otherwise provided, the date on
 which this Agreement enters into force, whether provisionally or
 definitively.
  (12) "Exportable production" means the total production of coffee of an
 exporting country in a given coffee or crop year, less the amount destined
  for domestic consumption in the same year.
   (13) "Availability for export" means the exportable production of an
  exporting country in a given coffee year, plus accumulated stocks from
  previous years.
   (14) "Export entitlement" means the total quantity of coffee which a Member
  is authorised to export under the various provisions of this Agreement, but
  excluding exports which under the provisions of Article 44 are not charged
   to quotas.
 ---pagebreak---                                    - 8 -
(15) "Shortfall" means any amount by which the annual export entitlement
of an exporting Member in a given coffee year exceeds the amount of
coffee as identified within the first six months of the coffee year,
which:
     (a)  the Member has available for export, calculated on the basis
          of stocks and forecast crop; or
     (b)  the Member states that it intends to export to quota markets
          in that coffee year.
(16) "Undershipment" means the difference between the annual export
entitlement of an exporting Member in a given coffee year and the amount
of coffee which that Member has exported to quota markets in that coffee
year, unless this difference is a "shortfall" as defined in paragraph (15)
of this Article.
 ---pagebreak---                                       - 9 -
                            CHAPTER III - MEMBERSHIP
                                   Article 4
                         Membership in the Organization
(1)    Each Contracting Party, together with those territories to which this
Agreement is extended under the provisions of paragraph (1) of Article 64,
shall constitute a single Member of the Organization, except as otherwise
provided for under the provisions of Articles 5, 6 and 7.
 (2)   A Member may change its category of membership on such conditions as
 the Council may agree.
 (3)    Any reference in this Agreement to a Government shall be construed as
 including a reference to the European Economic Community, or any inter
 governmental organization having comparable responsibilities in respect of
 the negotiation, conclusion and application of international agreements,
 in particular commodity agreements.
  (4)    Such intergovernmental organization shall not itself have any votes
  but in the case of a vote on matters within its competence it shall be
  entitled to cast collectively the votes of its Member States.     In such
  cases, the Member States of such intergovernmental organization shall not
  be entitled to exercise their individual voting rights.
   (5)   The provisions of paragraph (1) of Article 16 shall not apply to such
   intergovernmental organization but it may participate in the discussions
   of the Executive Board on matters within its competence.    In the case of a
   vote on matters within its competence, and notwithstanding the provisions of
   paragraph (1) of Article 19, the votes which its Member States are entitled
   to cast in the Executive Board may be cast collectively by any one of those
   Member States. '
 ---pagebreak---                                      - 10 -
                                  Artide 5
                       Separate membership in respect of
                            designated territories^
      Any Contracting Party which is a net importer of coffee may, at any
 time, by appropriate notification in accordance with the provisions of
 paragraph (2) of Article 64, declare that it is participating in the
 Organization separately with respect to any of the territories for whose
 international relations it is responsible, which are net exporters of
 coffee and which it designates.   In such case, the metropolitan territory
 and its non-designated territories will have a single membership, and its
 designated territories, either individually or collectively as the
 notification indicates, will have separate membership.
                                  Article 6
               Group membership upon joining the Organization
 (1)  Two or more Contracting Parties which are net exporters of coffee may,
by appropriate notification to the Council and to the Secretary-General of
 the United Nations at the time of deposit of their respective instruments
of approval, ratification, acceptance or accession, declare that they are
joining the Organization as a Member group.    A territory to which this
Agreement has been extended under the provisions of paragraph (1) of
Article 64 may constitute part of such Member group if the Government of
the State responsible for its international relations has given appropriate
notification thereof under the provisions of paragraph (2) of Article 64.
Such Contracting Parties and designated territories must satisfy the
following conditions:
 ---pagebreak---                                     -  I l
     ia)    they shall declare their willingness to accept responsibility
            for group obligations in an individual as well as a group
            capacity;   ana
      (b)   they shall subsequently provide satisfactory evidence to the
            Council that:
            (i)  the group has the organization necessary to implement a
                 common coffee policy and that they have the means of
                 complying, together with the other parties to the group,
                 with their obligations under this Agreement; and that either
           (ii)  they have been recognised as a group in a previous
                 International Coffee Agreement; or
          (iii)  they have a common   or coordinated commercial and economic
                 policy in relation to coffee and a coordinated monetary
                 and financial policy, as well as the organs necessary to
                 implement such policies, so that the Council is satisfied
                 that the Member group is able to comply with the group
                 obligations involved.
(2)  The Member group shall constitute a single Member of the Organization,
except that each party to the group shall be treated as if it were a
single Member in relation to matters arising under the following provisions
     (a)    Articles 11 and 12 and paragraph (1) of Article 20;
     (b)    Articles 50 and 51; and
     (c)    Article 67.
(3)  The Contracting Parties and designated territories joining as a Member
group shall specify the Government or organization which will represent
them in the Council on matters arising under this Agreement other than
those specified in paragraph (2) of this Article.
 ---pagebreak---                                     - 12 -
(4)  The voting rights of the Member group shall be as follows:
     (a)    the Member group shall have the same number of basic votes as a
            single Member country joining the Organization in an individual
            capacity.  These basic votes   shall be attributed to and cast
            by the Government or organization representing the group; and
      (b)   in the event of a vote on any matters arising under the
            provisions of paragraph (2) of this Article, the parties to the
            Member group may cast separately the votes attributed to them
            under the provisions of paragraphs (3) and (4) of Article 13 as
            if each were an individual Member of the Organization, except
            for the basic votes, which shall remain attributable only to the
            Government or organization representing the group.
(5)  Any Contracting Party or designated territory which is a party to a
Member group may, by notification to the Council, withdraw from that group
and become a separate Member.    Such withdrawal shall take effect   upon
receipt of the notification by the Council.     If a party to a Member group
withdraws from that group or ceases to participate in the Organization,
the remaining parties to the group may apply to the Council to maintain the
group;    the group shall continue to exist unless the Council disapproves
the application.    If the Member group is dissolved, each former party to
the group will become a separate Member.     A Member which has ceased to be
a party to a group may not, as long as this Agreement remains in force,
again become a party to a group.
 ---pagebreak---                                   - 13 -
                                Artide 7
                        Subsequent group membership
     Two or more exporting Members may, at any time after this Agreement
has entered into force, apply to the Council to form a Member group.  The
Council shall approve the application if it finds that the Members have
made a declaration and have provided satisfactory evidence in accordance
with the requirements of paragraph (1) of Article 6.  Upon such approval,
the Member group shall be subject to the provisions of paragraphs (2), (3),
(4) and (5) of that Article.
 ---pagebreak---                                   - 14 -
               CHAPTER IV - ORGANIZATION AND ADMINISTRATION
                                Article 8
                         Seat and structure of the
                     International Coffee Organization
(1)  The International Coffee Organization established under the
1962 Agreement shall continue in being to administer the provisions and
supervise the operation of this Agreement.
(2)  The seat of the Organization shall be in London unless the Council by
a distributed two-thirds majority vote decides otherwise.
(3)  The Organization shall function through the International Coffee
Council, the Executive Board, the Executive Director and the staff.
                                Article 9
              Composition of the International Coffee Council
(1)  The highest authority of the Organization shall be the International
Coffee Council, which shall consist of all the Members of the Organization.
(2)  Each Member shall appoint one representative on the Council and, if
it so desires, one or more alternates.  A Member may also designate one or
more advisers to its representative or alternates.
                                Article 10
                    Powers and functions of thé Council
(1)  All powers specifically conferred by this Agreement shall be vested in
the Council, which shall have the powers and perform the functions
necessary to carry out the provisions of this Agreement.
 ---pagebreak---                                     - 15 -
(2)   The Council shall, by a distributed two-thirds majority vote,
establish such rules and regulations, including its own rules of procedure
and the financial and staff regulations of the Organization, as are
necessary to carry out the provisions of this Agreement and are consistent
therewith.   The Council may, in its rules of procedure, provide the means
whereby it may, without meeting, decide specific questions.
(3)   The Council shall also keep such records as are required to perform
its functions under this Agreement and such other records as it considers
desirable.
                                  Article 11
          Election of the Chairman and Vice-Chairmen of the Council
 (1)  The Council shall elect, for each coffee year, a Chairman and a first,
a second and a third Vice-Chairman.
 (2)  As a general rule, the Chairman and the first Vice-Chairman shall
both be elected either from among the representatives of exporting Members
or from among the representatives of importing Members and the second and
 the third Vice-Chairmen shall be elected from among representatives of
 the other category of Member.   These offices shall alternate each coffee
year between the two categories of Member.
 (3)  Neither the Chairman nor any Vice-Chairman acting as Chairman shall
 have the right to vote.   His alternate will in such case exercise the
 voting rights of the Member.
 ---pagebreak---                                       - 16 -
                                  A r t i d e 12
                            Sessions of the Council
       As a general rule, the Council shall hold regular sessions twice a
 year.   It may hold special sessions should it so decide.  Special
 sessions shall also be held at the request of the Executive Board, of
 any five Members, or of a Member or Members having at least 200 votes.
 Notice of sessions shall be given at least 30 days in advance except in
 cases of emergency.   Sessions shall be held at the seat of the
Organization, unless the Council decides otherwise.
                                  Article 13
                                       Votes
 (1)   The exporting Members shall together hold 1,000 votes and the
importing Members shall together hold 1,000 votes, distributed within
each category of Member - that is, exporting and importing Members,
respectively - as provided for in the following paragraphs of this
Article.
(2)   Each Member shall have five basic votes, provided that the total
number of basic votes within each category of Member does not exceed 150.
Should there be more than 30 exporting Members or more than 30 importing
Members, the number of basic votes for each Member within that category
of membership shall be adjusted to keep the number of basic votes for
each category of Member within the maximum of 150.
 ---pagebreak---                                   - 17 -
(3)  Exporting Members listed in Annex 2 shall, in addition to the basic
votes, have the number of votes attributed to them in column (2) of that
Annex.  If any exporting Member referred to in this paragraph elects to
have a basic quota under the provisions of paragraph (3) of Article 31,
the provisions of this paragraph shall cease to apply to it.
(4)  The remaining votes of exporting Members shall be divided among
those Members having a basic quota in proportion to the average volume of
their respective exports of coffee to importing Members in the preceding
four calendar years.
(5)  The remaining votes of importing Members shall be divided among those
Members in proportion to the average volume of their respective imports
of coffee in the preceding four calendar years.
(6)  The distribution of votes shall be determined by the Council in
accordance with the provisions of this Article at the beginning of each
coffee year and shall remain in effect during that year, except as
provided for in paragraph (7) of this Article.
(7)  The Council shall provide for the redistribution of votes in
accordance with the provisions of this Article whenever there is a change
in the membership of the Organization or if the voting rights of a Member
are suspended or regained under the provisions of Article 26, 42, 45, 47,
55 or 58.
                                       \                              ‘
(8)  No Member shall hold more than 400 votes.
(9)  There shall be no fractional votes.
 ---pagebreak---                                       - 18 -
                                    Article 14
                         Voting procedure of the Council
  (1)   Each Member shall be entitled to cast the number of votes it holds
 and shall not be entitled to divide its votes.     However, a Member may
 cast differently any votes which it holds under the provisions of
 paragraph (2) of this Article.
  (2)   Any exporting Member may authorise any other exporting Member, and
 any· importing Member may authorise any other importing Member, to
 represent its interests and to exercise its right to vote at any meeting
 or meetings of the Council.    The limitation provided for in paragraph (8)
of Article 13 shall not apply in this case.
                                   Article 15
                            Decisions of the Council
 (1)   All decisions of the Council shall be taken, and all recommendations
shall be made, by a distributed simple majority vote unless otherwise
provided for in this Agreement.
(2)   The following procedure    shall apply with respect to any decision by
the Council which under the provisions of this Agreement requires a
distributed two-thirds majority vote :
       (a)  if a distributed two-thirds majority vote is not obtained
            because of the negative vote of three or less exporting or three
            or less importing Members, the proposal shall, if the Council so
            decides by a majority of the Members present and by a distributed
            simple majority vote, be put to a vote again within 48 hours;
 ---pagebreak---                                    - 19 -
      (b)  if a distributed two-thirds majority vote is again not obtained
           because of the negative vote of two or less exporting or two or
           less importing Members, the proposal shall, if the Council so
           decides by a majority of the Members present and by a distributed
           simple majority vote, be put to a vote again within 24 hours;
      (c)  if a distributed two-thirds majority vote is not obtained in the
           third vote because of the negative vote of one exporting Member
           or one importing Member, the proposal shall be considered
           adopted; and
      (d)  if the Council fails to put a proposal to a further vote, it
           shall be considered rejected.
 (3)  Members undertake to accept as binding all decisions of the Council
under the provisions of this Agreement.
                                 Article 16
                          Composition of the Board
 (1) The Executive Board shall consist of eight exporting Members and·
eight importing Members elected for each coffee year in accordance with
the provisions of Article 17.   Members may be re-elected.
(2)  Each Member of the Board shall appoint one representative and, if it
so desires, one or more alternates.   Each Member may also designate one or
more advisers to its representative or alternates.
(3)  The Executive Board shall have a Chairman and Vice-Chairman who shall
be elected by the Council for each coffee year and may be re-elected.
Neither the Chairman nor a Vice-Chairman acting as Chairman shall have the
 ---pagebreak---                                      -  20 -
 right to vote.    If a representative is elected Chairman or if a Vice-
 Chairman is acting as Chairman, his alternate will have the right to vote
 in his place.    As a general rule, the Chairman and the Vice-Chairman for
 each coffee year shall be elected from among the representatives of the
 same category of membership.
  (4)   The Board shall normally meet at the seat of the Organization but may
 meet elsewhere.
                                   Article 17
                              Election of the Board
 (1)   The exporting and the importing Members of the Board shall be elected
 in the Council by the exporting and the importing Members of the
Organization respectively.     The election within each category shall be
held in accordance with the provisions of the following paragraphs of this
Article.
 (2)  Each Member shall cast for a single candidate all the votes to which
it is entitled under the provisions of Article 13.     A Member may cast for
another candidate any votes which it holds under the provisions of
paragraph (2) of Article 14.
(3)   The eight candidates receiving the largest number of votes shall be
elected;    however, no candidate shall be elected on the first ballot unless
it receives at least 75 votes.
(4)   If, under the provisions of paragraph (3) of this Article, less than
eight candidates are elected on the first ballot, further ballots shall be
 ---pagebreak---                                      - 21 -
 held in which only Members which did not vote for any of the candidates
 elected shall have the right to vote.    In each further ballot the minimum
 number of votes required for election shall be successively diminished by
 five until eight candidates are elected.
 (5)   Any Member which did not vote for any of the Members elected shall
 assign its votes to one of them, subject to the provisions of paragraphs (6)
 and (7) of this Article.
 (6)  A Member shall be deemed to have received the number of votes cast
 for it when it was elected and, in addition, the number of votes assigned
 to it, provided that the total number of votes shall not exceed 499 for
 any Member elected.
 (7)  If the votes deemed received by an elected Member exceed 499, Members
which voted for or assigned their votes to such elected Member shall
arrange among themselves for one or more of them to withdraw their votes
from that Member and assign or re-assign them to another elected Member so
that the votes received by each elected Member shall not exceed the limit
of 499.
                                 Article 18
                           Competence of the Board
(1)   The Board shall be responsible to and work under the general
direction of the Council.
(2)   The Council may, by a distributed two-thirds majority vote, delegate
to the Board the exercise of any or all of its powers other than the
following:
 ---pagebreak---                                    -  22 -
      (a)  approval of the Administrative Budget and assessment of
           contributions under the provisions of Article 25;
      (b)  suspension of the voting rights of a Member under the provisions
           of Article 45 or 58;
      (c)  decisions on disputes under the provisions of Article 58;
      (d)  establishment of conditions for accession under the provisions
           of Article 62;
      (e)  a decision to exclude a Member under the provisions of
           Article 66;
      (f)  a decision concerning the renegotiation, extension or termination
           of this Agreement under the provisions of Article 68; and
      (g)  recommendation of amendments to Members under the provisions of
           Article 69.
(3)   The Council may, by a distributed simple majority vote, at any time
revoke any powers which have been delegated to the Board.
                                 Article 19
                        Voting procedure of the Board
(1)  Each Member of the Board shall be entitled to cast the number of
votes received by it under the provisions of paragraphs (6) and (7) of
Article 17.   Voting by proxy shall not be allowed.  A Member of the Board
shall not be entitled to divide its votes.
(2)  Any decision taken by the Board shall require the same majority as
such decision would require if taken by the Council.
 ---pagebreak---                                    - 23 -
                                 Article 20
                    Quotum for the Council and the Board
(1)  The quorum for any meeting of the Council shall be the presence of
a majority of the Members representing a distributed two-thirds majority
of the total votes.   If there is no quorum at the time appointed for the
commencement of any Council meeting, the Chairman of the Council may
decide to postpone the opening time of the meeting for at least three
hours.  If there is no quorum at the new time set, the Chairman may again
defer the opening time of the Council meeting for at least a further three
hours.  This procedure may be repeated until a quorum is present at the
appointed time.   Representation in accordance with the provisions of
paragraph (2) of Article 14 shall be considered as presence.
(2)  The quorum for any meeting of the Board shall be the presence of a
majority of the Members representing a distributed two-thirds majority of
the total votes.
                                 Article 21
                    The Executive Director and the staff
(1)  The Council shall appoint the Executive Director on the recommendation
of the Board.   The terms of appointment of the Executive Director shall
be established by the Council and shall be comparable to those applying to
corresponding officials of similar intergovernmental organizations.
(2)  The Executive Director shall be the chief administrative officer of
the Organization and shall be responsible for the performance of any
duties devolving upon him in the administration of this Agreement.
 ---pagebreak---                                   - 24 -
(3)  The Executive Director shall appoint the staff in accordance with
regulations established by the Council.
(4)  Neither the Executive Director nor any member of the staff shall have
any financial interest in the coffee industry, the coffee trade or the
transportation of coffee.
(5)  In the performance of their duties, the Executive Director and the
staff shall not seek or receive instructions from any Member or from any
other authority external to the Organization.   They shall refrain from any
action which might reflect on their position as international officials
responsible only to the Organization.   Each Member undertakes to respect
the exclusively international character of the responsibilities of the
Executive Director and the staff and not to seek to influence them in
the discharge of their responsibilities.
                               Article 22
                  Cooperation with other organizations
     The Council may make arrangements for consultation and cooperation
with the United Nations and its specialised agencies and with other
appropriate intergovernmental organizations.   Such arrangements may
include financial arrangements which the Council considers appropriate
for achieving the objectives of the Agreement.   The Council may invite
these organizations and any organizations concerned with coffee to send
observers to its meetings.
 ---pagebreak---                                   - 25 -
                   CHAPTER V - PRIVILEGES AND IMMUNITIES
                                Article 23
                         Privileges and immunities
(1)  The Organization shall have legal personality.   It shall in particular
have the capacity to contract, acquire and dispose of movable and
immovable property and to institute legal proceedings.
(2)  The status, privileges and immunities of the Organization, of its
Executive Director, its staff and experts, and of representatives of
Members while in the territory of the United Kingdom of Great Britain and
Northern Ireland for the purpose of exercising their functions, shall
continue to be governed by the Headquarters Agreement concluded between
the Government of the United Kingdom of Great Britain and Northern Ireland
(hereinafter referred to as the host Government) and the Organization on
28 May 1969.
(3)  The Headquarters Agreement referred to in paragraph (2) of this
Article shall be independent of this Agreement.   It shall however terminate
      (a) by agreement between the host Government and the Organization;
      (b) in the event of the headquarters of the Organization being moved
          from the territory of the host Government; or
      (c) in the event of the Organization ceasing to exist.
 (4) The Organization may conclude with one or more other Members
agreements to be approved by the Council relating to such privileges and
immunities as may be necessary for the proper functioning of this Agreement
 ---pagebreak---                                    - 26 -
 (5)  The Governments of Member countries other than the host Goverment
shall grant the Organization the same facilities in respect of currency
or exchange restrictions, maintenance of bank accounts and transfer of
monies, as are accorded to the specialised agencies of the United Nations.
 ---pagebreak---                                     - 27 -
                             CHAPTER VI - FINANCE
                                  Article 24
                                    Finance
 (1)  The expenses of delegations to the Council, representatives on the
Board and representatives on any of the committees of the Council or the
Board shall be met by their respective Governments.
 (2)  The other expenses necessary for the administration of this Agreement
shall be met by annual contributions from the Members assessed in
accordance with the provisions of Article 25.     However, the Council may
 levy fees for specific services.
 (3)  The financial year of the Organization shall be the same as the
coffee year.
                                  Article 25
                        Determination of the Budget and
                          assessment of contributions
 (1)  During the second half of each financial year, the Council shall
approve the Administrative Budget of the Organization for the following
financial year anc shall assess the contributions o: each Member tr ths i
(2)   The contribution of each Member to the Budget for each financial year
shall be in the proportion which the number of its votes at the time the
Budget for that financial year is approved bears to the total votes of all
the Members.   However, if there is any change in the distribution of votes
 ---pagebreak---                                      - 28 -
  among Members in accordance with the provisions of paragraph (6) of
  Article 13 at the beginning of the financial year for which contributions
  are assessed, such contributions shall be correspondingly adjusted for
  that year.  In determining contributions, the votes of each Member shall
  be calculated without regard to the suspension of the voting rights of any
 Member or any redistribution of votes resulting therefrom.
  (3)  The initial contribution of any Member joining the Organization after
 the entry into force of this Agreement shall be assessed by the Council
 on the basis of the number of votes to be held by it and the period
 remaining in the current financial year, but the assessments made upon
 other Members for the current financial year shall not be altered.
                                  Article 26
                           Payment of contributions
 (1)  Contributions to the Administrative Budget for each financial year
shall be payable in freely convertible currency and shall become due on
the first day of that financial year.
 (2)  If any Member fails to pay its full contribution to the Administrative
Budget within six months of the date on which the contribution is due,
both its voting rights in the Council and its right to have its votes cast
in the Board shall be suspended until such contribution has been paid.
However, unless the Council by a distributed two-thirds majority vote so
decides, such Member shall not be deprived of any of its other rights nor
relieved of any of its obligations under this Agreement.
 ---pagebreak---                                  - 29 -
(3)  Any Member whose voting rights have been suspended either under the
provisions of paragraph (2) of this Article or under the provisions of
Article 42, 45, 47, 55 or 58 shall nevertheless remain responsible for
the payment of its contribution.
                               Article 27
                    Audit and publication of accounts
     As soon as possible after the close of each financial year, an
independently audited statement of the Organization's receipts and
expenditures during that financial year shall be presented to the
Council for approval and publication.
 ---pagebreak---                                       - 30 -
               CHAPTER VII - REGULATION OF EXPORTS AND IMPORTS
                                    Article 28
                               General provisions
  (1)  All decisions of the Council under the provisions of this Chapter
 shall be adopted by a distributed two-thirds majority vote.
  (2)  The word "annual" in this Chapter shall mean any period of 12 months
 established by the Council.     However, the Council may adopt procedures
 for applying the provisions of this Chapter for a period longer than
 12 months.
                                   Article 29
                           Markets subject to quota
      For the purpose of this Agreement, the world coffee market shall be
 divided into Member quota and non-member non-quota markets.
                                   Article 30
                                  Basic quotas
 (1)  Each exporting Member shall, subject to the provisions of Articles 31
and 32, be entitled to a basic quota.      The basic quotas shall, subject to
the provisions of paragraph (1) of Article 35, be used for the distribution
of the fixed part of the annual quota in accordance with the provisions
of paragraph (2) of that Article.
(2)   Not later than 30 September 1984, the Council shall set the basic
quotas for a period of not less than two years with effect from
 ---pagebreak---                                       - 31 -
 1 October 1984.   Before the completion of this period the Council shall,
 if necessary, set the basic quotas for the remainder of the life of the
                                  »■N
Agreement.
 (3)   If the Council fails to set basic quotas in accordance with the
provisions of paragraph (2) of this Article and unless it decides otherwise
quotas shall be suspended notwithstanding the provisions of Article 33.
 (4)  Quotas may be reintroduced at any time after their suspension under
 the provisions of paragraph (3) of this Article as soon as the Council
has set the basic quotas in accordance with the provisions of paragraph (2)
of this Article provided that the relevant price conditions referred to
in Article 33 are met.
 (5)  The provisions of this Article shall apply to Angola under the
conditions set out in Annex 1.
                                   Article 31
                  Exporting Members exempt from basic quotas
 (1)  The Members listed in Annex 2, excluding Burundi and Rwanda, shall
together have an export quota corresponding to 4.2 percent of the global
annual quota set by the Council under the provisions of Article 34.
(2)   The quota referred to in paragraph (1) of this Article shall be
distributed among the Members listed ip Annex 2 in accordance with the
percentages shown in column (1) of that Annex.
(3)   Any exporting Member listed in Annex 2 may at any time request the
Council to establish a basic quota for it.    In the event that a basic
 ---pagebreak---                                      - 32 -
  quota is established for one of these countries the percentage indicated
  in paragraph (1) of this Article shall be decreased proportionally.
  (4)  If an exporting country accedes to the Agreement and is subject to
  the provisions of this Article, the Council shall allocate a quota to the
 Member and the percentage referred to in paragraph (1) of this Article
 shall be increased proportionally.
  (5)  Of the Members listed in Annex 2 only those with annual quotas above
 100,000 bags shall be subject to the provisions of Articles 36 and 37.
 (6)   Burundi and Rwanda shall each have the following annual export
 quotas:
       (a)  for coffee year 1983/84:  450,000 bags;
       (b)  for subsequent coffee years during the lifetime of the
            present Agreement:  470,000 bags.
 (7)  Whenever the Council sets basic quotas in accordance with the
provisions of paragraph (2) of Article 30, the percentage referred to in
paragraph (1) and the amount shown in sub-paragraph (b) of paragraph (6)    .
of this Article shall be reviewed and may be modified.
(8)   Subject to the provisions of Articles 6 and 41, shortfalls declared
by exporting Members listed in Annex 2 shall be distributed pro rata
to their annual quotas among those other Members listed in Annex 2 able
and prepared to export the amount of the shortfalls.
 ---pagebreak---                                    - 33 -
                                 Article 32
                Provisions for the adjustment of basic quotas
 (1)  If an importing country which was neither a Contracting Party to the
International Coffee Agreement 1976 nor to the International Coffee
Agreement 1976 as Extended becomes a Member of the Organization, the
Council shall adjust the basic quotas resulting from the application of
 the provisions of Article 30.
 (2)  The adjustment referred to in paragraph (1) of this Article shall
take into account either the average exports of individual exporting
Members to the importing country concerned during the period 1976 to
 1982 or the proportionate share of individual exporting Members in the
average imports of that country during the same period.
 (3)  The Council shall approve the data to be used as a basis for the
calculations necessary for the adjustment of basic quotas, as well as the
criteria to be followed for the purpose of applying the provisions cf
this Article.
                                 Article 33
                 Provisions for the continuation, suspension
                        and réintroduction of quotas'
(1)   If the Council fails to establish ,the conditions for the operation
of the quota system under the relevant Articles of this Chapter and unless
                                                                           4
 ---pagebreak---                                     - 34 -
it decides otherwise, quotas shall continue in effect at the commencement
of a coffee year if the fifteen-day moving average of the composite
indicator price is at or below the highest price for the upward adjustment
of quotas in the price range established by the Council for the preceding
coffee year under the provisions of Article 38.
 (2) Unless the Council decides otherwise, quotas shall be suspended as
soon as either of the following conditions is fulfilled:
      (a)  the fifteen-day moving average  of the composite indicator price
          remains, during 30 consecutive   market days, 3.5 percent or more
          above the highest price for the upward adjustment of quotas in
           the price range in effect provided that all pro rata upward
          adjustments to the global annual quota established by the
          Council have already been applied; or
      (b) the fifteen-day moving average   of the composite indicator price
          remains, during 45 consecutive   market days, 3.5 percent or more
          above the highest price for the upward adjusment of quotas in
          the price range in effect and provided that any remaining upward
          adjustments are applied on the date on which the fifteen-day
          moving average reaches that price.
(3)  If quotas are suspended under the provisions of paragraph (2) of this
Article for more than 12 months the Council shall meet in order to review
and possibly revise the price range or price ranges established under the
provisions of Article 38.
(4)  Unless the Council decides otherwise, quotas shall be reintroduced in
accordance with the provisions of paragraph (6) of this Article if the
 ---pagebreak---                                   - 35 -
fifteen-day moving average of the composite indicator price is at or below
a price corresponding to the mid-point, increased by 3.5 percent, between
the highest price for the upward adjustment of quotas and the lowest price
for the downward adjustment of quotas in the most recent price range
established by the Council.
(5)  If quotas continue in effect under the provisions of paragraph (1) of
this Article, the Executive Director shall immediately set a global annual
quota on the basis of the disappearance of coffee in quota markets,
estimated in accordance with the criteria established in Article 34.    This
quota shall be allocated to exporting Members in accordance with the
provisions of Articles 31 and 35.    Except as otherwise provided for in
this Agreement, the quotas shall be fixed for a period of four quarters.
(6)  Whenever the relevant price conditions referred to in paragraph (4)
of this Article are met, quotas shall come into effect as soon as possible
and in any event not later than the quarter following the fulfilment of the
relevant price conditions. Except as otherwise provided for in this
Agreement, the quotas shall be fixed for a period of four quarters.    If
the global annual and quarterly quotas have not previously been established
by the Council, the Executive Director shall set a quota as provided for
in paragraph (5) of this Article.    This quota shall be allocated to
exporting Members in accordance with the provisions of Articles 31 and 35.
 (7)  The Council shall be convened:
      (a)  during the first quarter of the coffee year if quotas continue in
           effect in accordance with the provisions of paragraph (1) of this
           Article; and
 ---pagebreak---                                    - 36 -
     (b)  during the first quarter following the réintroduction of quotas
          under the provisions of paragraph (4) of this Article.
The Council shall establish a price range or price ranges and review and,
if necessary, revise quotas for such a period as it deems advisable,
provided that this period does not exceed 12 months from the first day of
the coffee year if quotas continue in effect or from the date on which the
réintroduction of quotas takes place, whichever is relevant.  If during
the first quarter after the provisions of paragraphs (1) and (4) of this
Article have been applied, the Council fails to establish a price range or
price ranges and fails to agree on quotas the quotas set by the Executive
Director shall be suspended.
                                Article 34
                    Setting of the global annual quota
     Subject to the provisions of Article 33, the Council shall, at its
last regular session of the coffee year, set a global annual quota
taking into account  intev alia the following:
     (a)  estimated annual consumption of importing Members;
     (b)  estimated imports of Members from other importing Members and
          from non-member countries;
     (c)  estimated changes in the level of inventories in importing
          Member countries and in free ports;
     (d)  compliance with the provisions of Article 40 concerning
          shortfalls and their redistribution; and
 ---pagebreak---                                    - 37 -
     (e)  for the réintroduction of quotas under the provisions of
          paragraph (4) of Article 33, exports of exporting Members to
          importing Members and to non-members during the twelve-month
          period preceding the réintroduction of quotas.
                                 Article 35
                        Allocation of annual quotas
(1)  In the light of the decision taken under the provisions of Article 34
and after deducting the amount of coffee required to comply with the
provisions of Article 31, the annual quotas of exporting Members entitled
to a basic quota for coffee year 1983/84 shall be allocated to them in
the proportions shown in Annex 3.
(2)  With effect from 1 October 1984, annual quotas shall be allocated in
fixed and variable parts to exporting Members entitled to a basic quota
in the light of the decision taken under the provisions of Article 34 and
after deducting the amount of coffee required to comply with the provisions
of Article 31.  The fixed part shall correspond to 70 percent of the.
global annual quota, as adjusted to comply with the provisions of
Article 31, and shall be distributed among exporting Members in accordance
with the provisions of Article 30.    The variable part shall correspond to
30 percent of the global annual quota, as adjusted to comply with the
provisions of Article 31.   These proportions may be changed by the Council
but the fixed part shall never be less than 70 percent.    Subject to the
provisions of paragraph (3) of this Article, the variable part shall be
distributed among exporting Members in the proportion which the verified
stocks of each exporting Member bears to the total verified stocks of all
 ---pagebreak---                                     - 38 -
 exporting Members having basic quotas, provided that, unless the Council
 establishes a different limit, no Member shall receive a share of the
 variable part of the quota in excess of 40 percent of the total volume of
 such variable part.
  (3)  The stocks to be taken into account for the purposes of this Article
 shall be those verified in accordance with the appropriate rules for the
 verification of stocks.
                                  Article 36
                               Quarterly quotas
 (1)   Immediately following the allocation of annual quotas under the
 provisions of paragraphs (1) and (2) of Article 35, and subject to the
 provisions of Article 31, the Council shall allocate quarterly quotas to
 each exporting Member for the purpose of assuring an orderly flow of
 coffee to world markets throughout the period for which quotas are set.
 (2)  Unless the Council decides otherwise, these quotas shall be normally
25 percent of the annual quota of each Member.    The Council may authorise
 the alteration of the quarterly quotas of two or more Members provided
that this does not alter the global quota for the quarter.    If exports
by any Member in one quarter are less than its quota for that quarter,
the outstanding balance shall be added to its quota for the following
quarter.
(3)   The provisions of this Article shall also apply to the implementation
of paragraphs (5) and (6) of Article 33.
 ---pagebreak---                                   - 39 -
(4)  If, on account of exceptional circumstances, an exporting Member
considers that the limitation provided for in paragraph (2) of this Article
would be likely to cause serious harm to its economy, the Council may, at
the request of that Member, take appropriate action under the provisions
of Article 56.  The Member concerned must furnish evidence of harm and
provide adequate guarantees concerning the maintenance of price stability.
The Council shall not, however, in any event, authorise a Member to export
more than 35 percent of its annual quota in the first quarter, 65 percent
in the first two quarters, and 85 percent in the first three quarters.
                                Article 37
                 Adjustment of annual and quarterly quotas
 (1) If market conditions so require, the Council may vary the annual
and quarterly quotas allocated under the provisions of Articles 33, 35
and 36.  Subject to the provisions of paragraphs (1) and (2) of Article 35
and except as provided for in Article 31 and paragraph (3) of Article 39,
the quotas of each exporting Member shall be varied by the same percentage.
 (2) Notwithstanding the provisions of paragraph (1) of this Article, the
Council may, if it finds the market situation so requires, make adjustments
among the current and remaining quarterly quotas of exporting Members
without, however, altering the annual quotas.
                                Article 38
                              Price measures
(1)  The Council shall establish a system of indicator prices which shall
provide for a daily composite indicator price.
 ---pagebreak---                                       - 40 -
  (2)   On the basis of such a system, the Council may establish price
  ranges and price differentials for the principal groups of coffee and a
  composite price range.
  (3)   In establishing and adjusting any price range for the purposes of
  this Article, the Council shall take into consideration the prevailing
  level and trend of coffee prices including the influence thereon of:
        -  the levels and trends of consumption and production as well as
           stocks in importing and exporting countries;
           changes in the world monetary system;
        -  the trend of world inflation or deflation; and
       -   any other factors which might affect the achievement of the
           objectives set out in this Agreement.
 The Executive Director shall supply the data necessary to permit the
 Council to give due consideration to the foregoing elements.
                                   Article 39
                Additional measures for the adjustment of quotas
 (1)   If quotas are in effect, the Council shall be convened in order to
establish a system for the pro rata adjustment of quotas in response to
movements in the composite indicator price, as provided for in Article 38.
(2)   Such a system shall include provisions regarding price ranges, the
number of market days over which counts shall be held and the number and
size of adjustments.
(3)   The Council may establish a system for adjusting quotas in response
to movements in the prices of the principal groups of coffee.    The Council
 ---pagebreak---                                      - 41 -
  shall undertake a study of the feasibility of such a system.   The Council
  shall decide whether to apply such a system during coffee year 1983/84.
  Similarly, the Council shall decide whether to apply such a system
 whenever it establishes a composite indicator price range under the
 provisions of paragraph (1) of this Article.
                                   Article 40
                          Shortfalls and undershipments
  (1)  When quotas are in force at the beginning of a coffee year each
 exporting Member shall declare any anticipated shortfall from its export
 entitlement in order to permit redistribution in the same coffee year
 among exporting Members able and prepared to export the amount of the
 shortfalls.   An equivalent amount to any shortfall not declared by the
 sixth month of the coffee year and therefore not redistributed during the
 same coffee year shall be added to the quota for the following year and
distributed only to those Members which did not have undeclared shortfalls
 (2)   Special provisions may be established when quotas are introduced in
 the course of a coffee year.
 (3)  Before the end of coffee year 1983/84 the Council shall make rules
for the purposes of this Article, in order to enforce declaration and
redistribution of shortfalls and identification of undershipments.
                                  Article 41
                     Export entitlement of a Member group
      If two or more Members form a Member group in accordance with the
provisions of Article 6 or 7, the basic quotas or the export entitlements,
 ---pagebreak---                                      - 42 -
  as the case may be, of those Members shall be added together and the
  combined total treated as a single basic quota or a single export
  entitlement for the purposes of this Chapter.
                                   Article 42
                             Compliance with quotas
  (1)   Exporting Members shall adopt the measures required to ensure full
  compliance with all provisions of this Agreement relating to quotas.   In
  addition to any measures the Member itself may take, the Council may
  require such Member to adopt additional measures for the effective
  implementation of the quota system provided for in this Agreement.
  (2)  Exporting Members shall not exceed the annual and quarterly quotas
 allocated to them.
  (3)  If an exporting Member exceeds its quota for any quarter, the Council
 shall deduct from one or more of its subsequent quotas a quantity equal
 to 110 percent of that excess.
 (4)   If an exporting Member for the second time exceeds its quarterly
 quota, the Council shall make the same deduction as that provided for in
paragraph (3) of this Article.
 (5)   If an exporting Member for a third or subsequent time exceeds its
quarterly quota, the Council shall make the same deduction as provided
for in paragraph (3) of this Article and the voting rights of the Member
shall be suspended until such time as the Council decides whether to
exclude such Member from the Organization under the provisions of
Article 66.
 ---pagebreak---                                    - 43 -
 (6)  The deductions provided for in paragraphs (3), (4) and (5) of this
 Article shall be deemed to be shortfalls for the purposes of paragraph (1)
 of Article 40.
 (7)  The Council shall apply the provisions of paragraphs (1) to (5) of
 this Article as soon as the necessary information is available.
                                 Article 43
           Certificates of Origin and other forms of Certificates
 (1)  Every export of coffee by a Member shall be covered by a valid
 Certificate of Origin.  Certificates of Origin shall be issued, in
accordance with rules established by the Council, by a qualified agency
chosen by the Member and approved by the Organization.
 (2)  If quotas are in effect, every re-export of coffee by a Member shall
be covered by a valid Certificate of Re-export.   Certificates of Re-export
shall be issued, in accordance with rules established by the Council, by
a qualified agency chosen by the Member and approved by the Organization,
and shall certify that the coffee in question was imported in accordance
with the provisions of this Agreement.
 (3)  The rules referred to in this Article shall contain provisions which
will permit their application to groups of importing Members forming a
customs union.
(4)   The Council may make rules governing the printing, validation,
issuing and use of Certificates and may adopt measures to issue coffee
export stamps against payment of a fee to be determined by the Council.
 ---pagebreak---                                    - 44 -
The affixing of such stamps to Certificates of Origin may be one of the
means prescribed for the validation of such Certificates.    The Council
may make similar arrangements for the validation of other forms of
Certificates and for the issuing of other forms of coffee stamps on
conditions to be determined.
 (5)  Each Member shall notify the Organization of the government or
non-government agency which is to perform the functions specified in
paragraphs (1) and (2) of this Article.    The Organization shall
 specifically approve a non-government agency upon submission by the Member
 of satisfactory evidence of the agency's ability and willingness to
 fulfil the Member's responsibilities in accordance with the rules and
 regulations established under the provisions of this Agreement.   The
 Council may at any time, for cause, declare a particular non-government
 agency to be no longer acceptable to it.   The Council shall, either
 directly or through an internationally recognised world-wide organization,
 take all necessary steps so that at any time it will be able to satisfy
 itself that all forms of Certificates are being issued and used correctly
 and to ascertain the quantities of coffee which have been exported by
 each Member.
  (6)  A non-government agency approved as a certifying agency under the
 provisions of paragraph (5) of this Article shall keep records of the
 Certificates issued and the basis for their issue, for a period of not
  less than four years.  In order to obtain approval as a certifying agency
 under the provisions of paragraph (5) of this Article, a non-government
  agency must previously agree to make such records available for examination
 by the Organization.
 ---pagebreak---                                     - 45 -
(7)    If quotas are in effect Members shall, subject to the provisions of
Article 44 and those of paragraphs (1) and (2) of Article 45, prohibit
the import of any shipment of coffee which is not accompanied by a valid
Certificate in the appropriate form issued in accordance with rules
established by the Council.
 (8)   Small quantities of coffee in such forms as the Council may determine,
 or coffee for direct consumption on ships, aircraft and other international
 carriers, shall be exempt from the provisions of paragraphs (1) and (2)
 of this Article.
  (9)   Notwithstanding the provisions of paragraph (5) of Article 2 and of
 paragraphs (2) and (7) of this Article the Council may require Members to
 apply the provisions of these paragraphs when quotas are not in effect.
  (10) The Council shall make rules concerning the effect of the introduction
  of quotas or adjustments thereto on contracts entered into prior to such
  introduction or adjustment.
                                    Article 44
                           Exports not charged to quotas
   (1)   As provided for in Article 29, exports to countries not party to this
   Agreement shall not be charged to quotas.   The Council may make rules
   governing, -inter aliaa the conduct and supervision of this trade, the
   treatment of, and the penalties for, diversions and re-exports from
   non-member to Member countries and the documents required to cover exports
   to both Member and non-member countries.
 ---pagebreak---                                      - 46 -
   (2) Exports of coffee beans as raw material for industrial processing for
  any purposes other than human consumption as a beverage or foodstuff shall
  not be charged to quotas, provided that the Council is satisfied from
  information supplied by the exporting Member that the coffee beans are in
  fact used for such other purposes.
   (3) The Council may, at the request of an exporting Member, decide that
  exports of coffee made by that Member for humanitarian or other non
  commercial purposes shall not be charged to its quota.
                                  Article 45
                             Regulation of imports
  (1)  To prevent non-member countries from increasing their exports at the
  expense of exporting Members, each Member shall, whenever quotas are in
 effect, limit its annual imports of coffee from non-member countries which
 were not Contracting Parties to the International Coffee Agreement 1968
 to an amount equal to the annual average of its imports of coffee from
 non-member countries from either calendar year 1971 to calendar year 1974.
 inclusive, or from calendar year 1972 to calendar year 1974 inclusive.   If
 a non-member country becomes a party to the Agreement the limitation of
 each Member in respect of the annual limitation of coffee from non-member
 countries shall be adjusted accordingly.   The adjusted limitation shall
apply from the following coffee year onwards.
 (2)    When quotas are in effect, Members shall also limit their annual
imports of coffee from each non-member which was a Contracting Party to
the International Coffee Agreement 1976 or the International Coffee
Agreement 1976 as Extended to a quantity not greater than a percentage
 ---pagebreak---                                      - 47 -
  of the average annual imports from that non-member during coffee years
  1976/77 to 1981/82.   In coffee year 1983/84 this percentage shall be
  70 percent and in coffee years 1984/85 to 1988/89 this percentage shall
  correspond to the proportion which the fixed part bears to the global
  annual quota under the provisions of paragraph (2) of Article 35.
  (3)  The Council shall revise the quantitative limitations resulting from
  the application of the provisions of paragraph (1) of this Article prior
  to the end of coffee year 1983/84 taking into account more recent
 reference years than those referred to in that paragraph.
  (4)  The obligations established in the preceding paragraphs of this
 Article shall not derogate from any conflicting bilateral or multilateral
 obligations which importing Members have entered into with non-member
 countries prior to the entry into force of this Agreement, provided that
 any importing Member which has such conflicting obligations shall carry·
 them out in such a way as to minimise any conflict with the obligations
established in the preceding paragraphs.    Such Member shall take steps as
soon as possible to bring its obligations into harmony with the provisions
of paragraphs (1) and (2) of this Article and shall inform the Council of
the details of the conflicting obligations as well as of the steps taken
to minimise or eliminate the conflict.
(5)    If an importing Member fails to comply with the provisions of this
Article the Council may suspend both its voting rights in the Council and
its right to have its votes cast in the Board.
 ---pagebreak---                                      - 48 -
                  CHAPTER VIII - OTHER ECONOMIC PROVISIONS
                                  Article 46
                    Measures related to processed coffee
 (1)  Members recognise the need of developing countries to broaden the
 base of their economies through,   inter alias industrialisation and the
 export of manufactured products, including the processing of coffee and
 the export of processed coffee.
 (2)  In this connection, Members shall avoid the adoption of governmental
 measures which could cause disruption to the coffee sector of other Members.
 (3)  Should a Member consider that the provisions of paragraph (2) of this
 Article are not being complied with, it should consult with the other
 Members concerned, having due regard to the provisions of Article 57.    The
 Members concerned shall make every effort to reach amicable settlement on
 a bilateral basis.  If these consultations do not lead to a mutually
 satisfactory solution, either party may bring the matter before the Council
 for consideration under the provisions of Article 58.
 (4)  Nothing in this Agreement shall prejudice the right of any Member to
 take measures to prevent or remedy disruption to its coffee sector by
 imports of processed coffee.
                                 Article 47
                                   Promotion
(1)   Members undertake to encourage the consumption of coffee by every
possible means.
 ---pagebreak---                                    - 49 -
(2)  To achieve this purpose the Promotion Fund shall continue to operate.
The Fund shall be administered by a Committee composed of all exporting
Members.
(3)  The Committee shall approve its own bye-laws by a two-thirds majority
vote not later than 31 March 1984.   All decisions of the Committee shall
be taken by a two-thirds majority vote.
(4)  The Committee shall determine in its bye-laws the ways and means in
which assistance shall be given to exporting Members for the encouragement
of their domestic consumption.
(5)  The Committee in its bye-laws shall also provide for consultation on
proposed promotion activities with the appropriate parties in the
importing Member countries concerned.
(6)  The Committee may establish a compulsory levy for exporting Members.
Other Members may also participate in the financing of the Fund on terms
to be approved by the Committee.
(7)  The resources of the Fund shall be used solely to finance promotion
campaigns, to sponsor research and studies related to the consumption of
coffee and to cover the administrative expenditures incurred in carrying
out such activities.
(8)  The levy referred to in paragraph (6) of this Article shall be
payable in US dollars and shall be deposited in a special account which
shall be at the disposal of the Committee and shall be designated the
Promotion Fund Account.
 ---pagebreak---                                   - 50 -
(9)  The levies established by the Committee shall be payable on the
terms established for this purpose.  Sanctions for the non-payment of
levies shall be applied as follows:
     (a)  if any Member remains in arrears for a period exceeding three
          months its voting rights in the Committee shall be suspended
          automatically;
     (b)  if payment of the levy remains outstanding for six months the
          Member country concerned shall also lose its votes in the
          Executive Board and the Council ; and
      (c) if payment of the levy remains outstanding for longer than six
          months the Member country concerned shall be given an additional
          period of 45 days to settle its arrears.   If the levy remains
          unpaid at the end of this additional period, the Executive
          Director shall withhold the export stamps corresponding to the
          quantity of coffee on which the unpaid levy is due and shall
          forthwith notify the Member concerned.   The Executive Director
          shall report each such case to the Executive Board which may
          amend or cancel the action taken by the Executive Director.    The ■
          Executive Director shall release such stamps as soon as the
          appropriate payment is made.
(10) The Committee shall approve promotion plans and programmes not less
than six months before the date of their implementation.   Should this not
occur the uncommitted funds shall be returned to Member countries, unless
the Committee decides otherwise.
(11) The Executive Director shall be the Chairman of the Committee and
shall report periodically to the Council on activities relating to promotion.
 ---pagebreak---                                    - 51 -
                                 Article 48
                     Removal of obstacles to consumption
(1)   Members recognise the utmost importance of achieving the greatest
possible increase of coffee consumption as rapidly as possible, in
particular through the progressive removal of any obstacles which may
hinder such increase.
(2)   Members recognise that there are at present in effect measures which
may to a greater or lesser extent hinder the increase in consumption of
coffee, in particular:
      (a)  import arrangements applicable to coffee, including preferential
           and other tariffs, quotas, operations of government monopolies
           and official purchasing agencies, and other administrative
           rules and commercial practices;
       (b) export arrangements as regards direct or indirect subsidies and
           other administrative rules and commercial practices; and
       (c) internal trade conditions and domestic legal and administrative
           provisions which may affect consumption.
 (3)  Having regard to the objectives stated above and to the provisions of
paragraph (4) of this Article, Members shall endeavour to pursue tariff
reductions on coffee or to    take other action to remove obstacles to
 increased consumption.
 (4)  Taking into account their mutual interest, Members undertake to seek
ways and means by which the obstacles to increased trade and consumption
 referred to in paragraph (2) of this Article may be progressively reduced
 and eventually, wherever possible, eliminated, or by which the effects of
 such obstacles may be substantially diminished.
 ---pagebreak---                                     - 52 -
(5)   Taking into account any commitments undertaken under the provisions
of paragraph (4) of this Article, Members shall inform the Council
annually of all measures adopted with a view to implementing the
provisions of this Article.
(6)   The Executive Director shall prepare periodically a survey of the
obstacles to consumption to be reviewed by the Council.
 (7)  The Council may, in order to further the purposes of this Article,
make recommendations to Members which shall report as soon as possible to
 the Council on the measures adopted with a view to implementing such
recommendations.
                                  Article 49
                           Mixtures and substitutes
 (1)   Members shall not maintain any regulations requiring the mixing,
 processing or using of other products with coffee for commercial resale as
 coffee.   Members shall endeavour to prohibit the sale and advertisement of
 products under the name of coffee if such products contain less than the
 equivalent of 90 percent green coffee as the basic raw material.
  (2)  The Council may request any Member to take the steps necessary to
 ensure observance of the provisions of this Article.
  (3)  The Executive Director shall submit to the Council a periodic report
 on compliance with the provisions of this Article.
 ---pagebreak---                                      - 53 -
                                  Article 50
                               Production policy
(1)   To facilitate the achievement of the objectives set out in
paragraph (1) of Article 1, exporting Members undertake to adopt
and to implement a production policy.
(2)   The Council shall, by a distributed two-thirds majority vote,
establish procedures for coordinating the production policies referred to
in paragraph (1) of this Article.     These procedures may include appropriate
measures for, or encouragement of, diversification, together with the
means whereby Members may obtain both technical and financial assistance.
 (3)  The Council may establish a contribution payable by exporting Members
which shall be used to permit the Organization to carry out appropriate
technical studies for the purpose of assisting exporting Members to adopt
the measures necessary to pursue an adequate production policy.     Such
contribution shall not exceed 2 US cents per bag exported to importing
Member countries and shall be payable in convertible currency.
                                   Article 51
                       Policy relative to coffee stocks
 (1)   To complement the provisions of Chapter VII and of Article 50, the
Council shall, by a distributed two-thirds majority vote, establish a
policy relating to coffee stocks in producing Member countries.
 (2)   The Council shall adopt measures to ascertain annually the volume of
 coffee stocks in the hands of individual exporting Members in accordance
 ---pagebreak---                                    - 54 -
with the provisions of Article 35.   The Members concerned shall facilitate
this annual survey.
(3)  Producing Members shall ensure that adequate facilities exist in
their respective countries for the proper storage of coffee stocks.
(4)  The Council shall undertake a study of the feasibility of supporting
the objectives of this Agreement by an international stock arrangement.
                                Article 52
                Consultation and cooperation with the trade
(1)  The Organization shall maintain close liaison with appropriate
non-governmental organizations concerned with international commerce in
coffee, and with experts in coffee matters.
(2)  Members shall conduct their activities within the framework of this
Agreement in a manner consonant with established trade channels and shall
refrain from discriminatory sales practices.   In carrying out these
activities they shall endeavour to take due account of the legitimate
interests of the coffee trade.
                                Article 53
                                Information
(1)  The Organization shall act as a centre for the collection, exchange
and publication of:
     (a)  statistical information on world production, prices, exports and
          imports, distribution and consumption of coffee; and
 ---pagebreak---                                    - 55 -
     (b)  in so far as is considered appropriate, technical information
          on the cultivation, processing and utilisation of coffee.
(2)  The Council may require Members to furnish such information as it
considers necessary for its operations, including regular statistical
reports on coffee production, production trends, exports and imports,
distribution, consumption, stocks, prices and taxation, but no information
shall be published which might serve to identify the operations of
persons or companies producing, processing or marketing coffee.   Members
shall furnish information requested in as detailed and accurate a manner
as is practicable.
(3)  If a Member fails to supply or finds difficulty in supplying within
a reasonable time statistical and other information required by the
Council for the proper functioning of the Organization, the Council may
require the Member concerned to explain the reasons for non-compliance.
If it is found that technical assistance is needed in the matter, the
Council may take any necessary measures.
(4)  In addition to the measures provided for in paragraph (3) of this
Article, the Executive Director may, after giving due notice and unless
the Council decides otherwise, withhold the release of coffee stamps or
other equivalent export authorisations as provided for in Article 43.
                                 Article 54
                                   Studies
(1)   The Council may promote studies concerning the economics of coffee
production and distribution, the impact of governmental measures in
 ---pagebreak---                                    - 56 -
producing and consuming countries on the production and consumption of
coffee, the opportunities for expansion of coffee consumption for
traditional and possible new uses and the effects of the operation of
this Agreement on producers and consumers of coffee, including their terms
of trade.
(2)   The Organization may study the practicability of establishing minimum
standards for exports of coffee from producing Members.
                                 Article 55
                                Special Fund
 (1) A special fund shall be established to permit the Organization to
adopt and finance any additional measures required to implement provisions
of this Agreement relevant to its operation, in particular the verification
of stocks provided for in paragraph (2) of Article 51.
 (2) Payments to the Fund shall consist of contributions payable by
exporting Members pro rata to their exports to importing Members.
 (3)  The Executive Director shall, at the same time as he submits the
Administrative Budget referred to in Article 25, submit a plan of
activities to be financed by the Fund, together with the corresponding
Budget which shall be approved by exporting Members by a two-thirds
majority vote.
(4)  The contribution payable by each exporting Member shall be assessed
on the basis of the Budget of the Special Fund, shall be payable in
US dollars and shall become due on the same date as contributions to the
Administrative Budget.
 ---pagebreak---                                    - 57 -
(5)  The Fund shall be managed and administered by a Committee composed
of the exporting Members of the Executive Board in cooperation with the
Executive Director and shall be subject to an independent annual audit as
required for the accounts of the Organization under the provisions of
Article 27.
(6)  The contributions assessed in accordance with the provisions of
paragraph (4) of this Article shall be payable on the terms established
by the Committee for this purpose.    Sanctions for the non-payment of the
contributions shall be applied as follows:
     (a)  if any Member remains in arrears for a period exceeding three
          months its voting rights in the Committee shall be suspended
          automatically;
     (b)  if payment of the contribution remains outstanding for six months
          the Member concerned shall also lose its votes in the Executive
          Board and the Council ; and
     (c)  if payment of the contribution remains outstanding for longer
          than six months the Member concerned shall be given an
          additional period of 45 days to settle its arrears.    If the
          contribution remains unpaid at the end of this additional
          period, the Executive Director shall withhold the export stamps
          corresponding to the quantity of coffee on which the unpaid
          contribution is due and shall forthwith notify the Member
          concerned.  The Executive Director shall report each such case
          to the Executive Board which may amend or cancel the action
          taken by the Executive Director.    The Executive Director shall
          release such stamps as soon as the appropriate payment is made.
 ---pagebreak---                                      - 58 -
                                   Article 56
                                     Waiver
  (1)   The Council may, by a distributed two-thirds majority vote, relieve
  a Member of an obligation on account of exceptional or emergency
  circumstances, force majeure, constitutional obligations or international
 obligations under the United Nations Charter for territories administered
 under the trusteeship system.
  (2) . The Council, in granting a waiver to a Member, shall state explicitly
 the terms and conditions on which and the period for which the Member is
 relieved of such obligation.
 (3)   Unless the Council decides otherwise, if a waiver brings about an
 increase in the annual export entitlement of the Member concerned the
 annual quotas of all other exporting Members entitled to a basic quota
 shall be adjusted pro rata so that the global annual quota remains
unaltered.
 (A)  The Council shall not consider a request for a waiver of quota
obligations solely on the basis of the existence in the Member country
making the request, in one or more years, of an exportable production in
excess of its permitted exports or which is the consequence of the Member
having failed to comply with the provisions of Articles 50 and 51.
(5)    The Council may make rules concerning the procedures for the granting
of waivers and the criteria for so doing.
 ---pagebreak---                                      - 59 -
                         CHAPTER IX - CONSULTATIONS,
                           DISPUTES AND COMPLAINTS
                                  Article 57
                                 Consultations
      Each Member shall accord sympathetic consideration to, and shall
afford adequate opportunity for, consultation regarding such representations
as may be made by another Member with respect to any matter relating to
this Agreement.   In the course of such consultation, on request by either
party and with the consent of the other, the Executive Director shall
establish an independent panel which shall use its good offices with a
view to conciliating the parties.     The costs of the panel shall not be
chargeable to the Organization.    If a party does not agree to the
establishment of a panel by the Executive Director, or if the consultation
does not lead to a solution, the matter may be referred to the Council in
accordance with the provisions of Article 58.     If the consultation does
lead to a solution, it shall be reported to the Executive Director who
shall distribute the report to all Members.
                                  Article 58
                           Disputes and complaints
(1)  Any dispute concerning the interpretation or application of this
Agreement which is not settled by negotiation shall, at the request of
any Member party to the dispute, be referred to the Council for decision.
(2)  In any case where a dispute has been referred to the Council under
the provisions of paragraph (1) of this Article, a majority of Members,
 ---pagebreak---                                       - 60 -
 or Members holding not less than one-third of the total votes, may
 require the Council, after discussion, to seek the opinion of the
 advisory panel referred to in paragraph (3) of this Article on the issues
 in dispute before giving its decision.
  (3)  (a)   Unless the Council unanimously agrees otherwise, the panel
             shall consist of:
              (i)  two persons, one having wide experience in matters of the
                  kind in dispute and the other having legal standing and
                  experience, nominated by the exporting Members;
            (ii)  two such persons nominated by the importing Members; and
           (iii)  a chairman selected unanimously by the four persons
                  nominated under (i) and (ii) or, if they fail to agree, by
                  the Chairman of the Council.
       (b)   Persons from countries whose Governments are Contracting Parties
             to this Agreement shall be eligible to serve on the advisory
             panel.
       (c)   Persons appointed to the advisory panel shall act in their
             personal capacities and without instructions from any Government.
       (d)   The expenses of the advisory panel shall be paid by the
             Organization.
 (4)  The opinion of the advisory panel and the reasons therefor shall be
submitted to the Council which, after considering all the relevant
information, shall decide the dispute.
(5)   The Council shall rule on any dispute brought before it within six
months of submission of such dispute for its consideration.
 ---pagebreak---                                   - 61 -
(6)  Any complaint that any Member has failed to fulfil its obligations
under this Agreement shall, at the request of the Member making the
complaint, be referred to the Council which shall make a decision on the
matter.
(7)  No Member shall be found to have been in breach of its obligations
under this Agreement except by a distributed simple majority vote.   Any
finding that a Member is in breach of its obligations under this Agreement
shall specify the nature of the breach.
(8)  If the Council finds that a Member is in breach of its obligations
under this Agreement, it may, without prejudice to other enforcement
measures provided for in other Articles of this Agreement, by a distributed
two-thirds majority vote, suspend such Member’s voting rights in the
Council and its right to have its votes cast in the Board until it fulfils
its obligations, or the Council may decide to exclude such Member from
the Organization under the provisions of Article 66.
 (9) A Member may seek the prior opinion of the Executive Board in a matter
of dispute or complaint before the matter is discussed by the Council.
 ---pagebreak---                          CHAPTER X - FINAL PROVISIONS
                                   Article 59
                                    Signature
       This Agreement shall be open for signature at the United Nations
 headquarters from 1 January 1983 until and including 30 June 1983 by
 Contracting Parties to the International Coffee Agreement 1976 or the
 International Coffee Agreement 1976 as Extended and Governments invited
 to .the sessions of the International Coffee Council convened for the
 purpose of negotiating this Agreement.
                                  Article 60
                      Ratification, acceptance, approval
 (1)  This Agreement shall be subject to ratification, acceptance or
approval by the signatory Governments in accordance with their respective
constitutional procedures.
 (2)  Except as provided for in Article 61, instruments of ratification,
acceptance or approval shall be deposited with the Secretary-General of
the United Nations not later than 30 September 1983.    However, the
Council may grant extensions of time to signatory Governments which are
unable to deposit their instruments by that date.
 ---pagebreak---                                    - 63 -
                                 Article 61
                              Entry into force
(1)   This Agreement shall enter into force definitively on 1 October 1983
if by that date Governments representing at least 20 exporting Members
holding at least 80 percent of the votes of the exporting Members and at
least   10 importing Members holding at least 80 percent of the votes of
the importing Members, calculated as at 30 September 1983, have deposited
their instruments of ratification, acceptance or approval.   Alternatively,
it shall enter into force definitively at any time after 1 October 1983
if it is provisionally in force in accordance with the provisions of
paragraph (2) of this Article and these percentage requirements are
satisfied by the deposit of instruments of ratification, acceptance or
approval.
 (2)  This Agreement may enter into force provisionally on 1 October 1983.
For this purpose, a notification by a signatory Government or by any other
Contracting Party to the International Coffee Agreement 1976 as Extended
containing an undertaking to apply this Agreement provisionally and to seek
ratification, acceptance or approval in accordance with its constitutional
procedures as rapidly as possible, which is received by the Secretary-
General of the United Nations not later than 30 September 1983, shall be
regarded as equal in effect to an instrument of ratification, acceptance
or approval.   A Government which undertakes to apply this Agreement
provisionally pending the deposit of an instrument of ratification,
 acceptance or approval shall be regarded as a provisional party thereto
until it deposits its instrument of ratification, acceptance or approval,
 ---pagebreak---                                   - 64 -
or until and including 31 December 1983 whichever is the earlier.  The
Council may grant an extension of the time within which any Government
which is applying this Agreement provisionally may deposit its instrument
of ratification, acceptance or approval.
(3)  If this Agreement has not entered into force definitively or
provisionally on 1 October 1983 under the provisions of paragraph (1) or
(2)  of this Article, those Governments which have deposited instruments
of ratification, acceptance, approval or accession or made notifications
containing an undertaking to apply this Agreement provisionally and to
seek ratification, acceptance or approval may, by mutual consent, decide
that it shall enter into force among themselves.  Similarly, if this
Agreement has entered into force provisionally but has not entered into
force definitively on 31 December 1983, those Governments which have
deposited instruments of ratification, acceptance, approval or accession
or made the notifications referred to in paragraph (2) of this Article,
may, by mutual consent, decide that it shall continue in force
provisionally or enter into force definitively among themselves.
                               Article 62
                                Accession
 (1) The Government of any State member of the United Nations or of any
of its specialised agencies may accede to this Agreement upon conditions
which shall be established by the Council.
(2)  Instruments of accession shall be deposited with the Secretary-
General of the United Nations.  The accession shall take effect upon
deposit of the instrument.
 ---pagebreak---                                     - 65 -
                                  Article 63
                                 Reservations
     Reservations may not be made with respect to any of the provisions
of this Agreement.
                                  Article 64
                     Extension to designated territories
(1)   Any Government may, at the time of signature or deposit of an
instrument of ratification, acceptance, approval or accession, or at any
time thereafter, by notification to the Secretary-General of the United
Nations, declare that this Agreement shall extend to any of the territories
for whose international relations it is responsible;    this Agreement shall
extend to the territories named therein from the date of such notification.
 (2)  Any Contracting Party which desires to exercise its rights under the
provisions of Article 5 in respect of any of the territories for whose
international relations it is responsible or which desires to authorise
any such territory to become part of a Member group formed under the
provisions of Article    6 or 7, may do so by making a notification to that
effect to the Secretary-General of the United Nations, either at the time
of the deposit of its instrument of ratification, acceptance, approval or
accession, or at any later time.
 (3)  Any Contracting Party which has made a declaration under the provisions
of paragraph (1) of this Article may at any time thereafter, by notification
 to the Secretary-General of the United Nations, declare that this Agreement
 ---pagebreak---                                      - 66 -
  shall cease to extend to the territory named in the notification.   This
 Agreement shall cease to extend to such territory from the date of such
 notification.
  (4)   When a territory to which this Agreement has been extended under
 the provisions of paragraph (1) of this Article subsequently attains its
 independence, the Government of the new State may, within 90 days after
 the attainment of independence, declare by notification to the Secretary-
 General of the United Nations that it has assumed the rights and
 obligations of a Contracting Party to this Agreement.    It shall, as from
 the date of such notification, become a Contracting Party to this
 Agreement.   The Council may grant an extension of the time within which
 such notification may be made.
                                  Article 65
                             Voluntary withdrawal
      Any Contracting Party may withdraw from this Agreement at any time by
giving a written notice of withdrawal to the Secretary-General of the
United Nations.    Withdrawal shall become effective 90 days after the
notice is received.
                                  Article 66
                                   Exclusion
      If the Council decides that any Member is in breach of its obligations
under this Agreement and decides further that such breach significantly
impairs the operation of this Agreement, it may, by a distributed
 ---pagebreak---                                     - 67 -
 two-thirds majority vote, exclude such Member from the Organization.   The
 Council shall immediately notify the Secretary-General of the United
 Nations of any such decision.   Ninety days after the date of the Council's
 decision, such Member shall cease to be a Member of the Organization and,
 if such Member is a Contracting Party, a party to this Agreement.
                                  Article 67
                          Settlement of accounts with
                        withdrawing or excluded Members
 (1)  The Council shall determine any settlement of accounts with a
withdrawing or excluded Member.    The Organization shall retain any amounts
already paid by a withdrawing or excluded Member and such Member shall
remain bound to pay any amounts due from it to the Organization at the
time tr.6 vi tedraval or the exclusion becomes affective; provided, however,
that in the case of a Contracting Party which is unable to accept an
amendment and consequently ceases to participate in this Agreement under
the provisions of paragraph (2) of Article 69, the Council may determine
any settlement of accounts which it finds equitable.
(2)   A Member which has ceased to participate in this Agreement shall not
be entitled to any share of the proceeds of liquidation or the other
assets of the Organization;    nor shall it be liable for payment of any part
of the deficit, if any, of the Organization upon termination of this
Agreement.
 ---pagebreak---                                   - 68 -
                                Article 68
                         Duration and termination
 (1) This Agreement shall remain in force for a period of six years until
30 September 1989 unless extended under the provisions of paragraph (2)
of this Article or terminated under the provisions of paragraph (3) of
this Article.
(2)  The Council may, at any time after 30 September 1987 by a vote of
58 percent of the Members having not less than a distributed majority of
70 percent of the total votes, decide either that this Agreement be
renegotiated or that it be extended, with or without modification, for
such period as the Council shall determine.  Any Contracting Party which
by the date on which such renegotiated or extended Agreement enters into
force has not made a notification of acceptance of such renegotiated or
extended Agreement to the Secretary-General of the United Nations, or any
territory which is either a Member or a party to a Member group on behalf
of which such notification has not been made by that date, shall as of
that date cease to participate in such Agreement.
(3)  The Council may at any time, by a vote of a majority of the Members
having not less than a distributed two-thirds majority of the total votes,
decide to terminate this Agreement.  Termination shall take effect on such
date as the Council shall decide.
(4)  Notwithstanding the termination of this Agreement, the Council shall
remain in being for as long as necessary to carry out the liquidation of
 ---pagebreak---                                  - 69 -
the Organization, settlement of its accounts and disposal of its assets
and shall have during that period such powers and functions as may be
necessary for those purposes.
                               Article 69
                                Amendment
(1)  The Council may, by a distributed two-thirds majority vote, recommend
an amendment of this Agreement to the Contracting Parties.   The amendment
shall become effective 100 days after the Secretary-General of the United
Nations has received notifications of acceptance from Contracting Parties
representing at least 75 percent of the exporting countries holding at
least 85 percent of the votes of the exporting Members, and from Contracting
Parties representing   at least 75 percent of the importing countries
holding at least 80 percent of the votes   of the importing Members. The
Council shall fix a time within which Contracting Parties shall notify the
Secretary-General of the United Nations of their acceptance of the amendment.
If, on expiry of such time limit, the percentage requirements for the
entry into effect of the amendment have not been met, the amendment shall
be considered withdrawn.
(2)  Any Contracting   Party which has not notified acceptance of an
amendment within the   period fixed by the Council, or any territorywhich
is either a Member or a party to a Member group on behalf of which such
notification has not been made by that date, shall cease to participate in
this Agreement from the date on which such amendment becomes effective.
 ---pagebreak---                                       - 70 -
 (3)   The provisions of this Article shall not affect any power invested
 in the Council under this Agreement to revise any Annexes thereto.
                                   Article 70
                   Supplementary and transitional provisions
 (1)   This Agreement shall be considered as a continuation of the
 International Coffee Agreement 1976 as Extended.
 (2)   In order to facilitate the uninterrupted continuation of the
 International Coffee Agreement 1976 as Extended:
       (a)  all acts by or on behalf of the Organization or any of its
            organs under the International Coffee Agreement 1976 as Extended,
            in effect on 30 September 1983, the terms of which do not
            provide for expiry on that date, shall remain in effect unless
            changed under the provisions of this Agreement; and
       (b)  all decisions required to be taken by the Council during coffee
            year 1982/83 for application in coffee year 1983/84 shall be
            taken by the Council in coffee year 1982/83 and applied on a
            provisional basis as if this Agreement had already entered
            into force.
                                   Article 71
                        Authentic texts of the Agreement
      The texts of this Agreement in the English, French, Portuguese and
Spanish languages shall all be equally authentic.     The originals shall be
deposited with the Secretary-General of the United Nations.
 ---pagebreak---                                   - 71 -
     IN WITNESS WHEREOF the undersigned, having been duly authorised to
this effect by their respective Governments, have signed this Agreement
on the dates appearing opposite their signatures.
 ---pagebreak---                                    - 73 -
                                                                    ANNEX I
                        PEOPLE’S REPUBLIC OF ANGOLA
1.   Not later than 31 July of each year Angola shall notify the
Executive Director of the amount of coffee it expects to have available
for export during the following coffee year.   The quota of Angola for that
coffee year shall be the amount thus indicated provided that this amount
does not exceed the export entitlement for Angola calculated on the basis
of the application of the provisions of Articles 3Q and 35 of the
International Coffee Agreement 1976 and provided that the amount indicated
by the Member is confirmed by the Executive Director.
2.   The annual quota of Angola established under the provisions of
paragraph 1 of this Annex shall be exempt from downward or upward
adjustments of quota and shall be deducted from the global annual quota
established by the Council under the provisions of Article 34 prior to the
allocation of annual quotas to exporting Members entitled to a basic quota
under the provisions of paragraphs (1) and (2) of Article 35.
3.   If the amount of coffee declared by Angola to be available for export
in a coffee year exceeds the quota to which it would have been entitled
under the provisions of Articles 3Q and 35 of the International Coffee
Agreement 1976 the procedures provided for in this Annex shall be suspended.
A basic quota shall be established for Angola and it shall be subject to
all the provisions of the. Agreement applicable to exporting Members
entitled to a basic quota.
 ---pagebreak---                                     - 75 -                           ANNEX 2
          EXPORTING MEMBERS SUBJECT TO THE PROVISIONS OF ARTICLE 31
                                                           Number of votes
                                           Percentage       in addition to
Exporting Member                            share 1/       basic votes 2/
                                -              m                  w --
TOTAL    (a)with OAMCAF                       100.00              44
         (b)without OAMCAF                     70.62              35
Bolivia                                         4.65                2
Burund i _3/                                                       7
Ghana                                           2.14                0
Guinea                                          4.25                2
Haiti                                          16.99                7
Jamaica                                         0.74                0
Liberia                                         5.52                2
Malawi                                          0.99                0
Nigeria                                         3.11                0
Panama                                          2.79                0
Paraguay                                        4.61                2
Rwanda 3/                                                          7
Sierra Leone                                    9.94                4
Sri Lanka                                       2.29                0
Thailand                                        4.44                2
Trinidad and Tobago                             1.45                0
Venezuela                                       3.40                0
Zimbabwe                                        3.31                0
OAMCAF                                         29.38                9
   Benin                                        2.24                0
   Central African Republic                    11.32               4
   Congo                                        1.70                0
   Gabon                                        1.70                0
   Togo                                        12.42                5
1/    Refers to Members to which the provisions of paragraph (2) of
      Article 31 apply
27    Refers to the provisions of paragraph (3) of Article 13
3/    See paragraph (6) of Article 31
 ---pagebreak---                                - 77 -                      ANNEX 3
          SHARE OF INDIVIDUAL MEMBERS IN THE GLOBAL QUOTA
          FOR EXPORTING MEMBERS ENTITLED TO A BASIC QUOTA
                       IN COFFEE YEAR 1983/84
Exporting Member                                        Percentage
TOTAL                                                     100.00
Colombian Milds                                            20.12
Colombia                                                    16.28
Kenya                                                        2.48
Tanzania                                                     1.36
Other Milds                                                 23.36
Costa Rica                                                   2.16
Dominican Republic                                           0.95
Ecuador                                                      2.17
El Salvador                                                  4.48
Guatemala                                                    3.47
Honduras                                                     1.49
India                                                        1.24
Mexico                                                       3.65
Nicaragua                                                    1.28
Papua New Guinea                                             1.16
Peru                                                         1.31
Brazilian and Other Arabicas                                33.45
Brazil                                                      30.83
Ethiopia                                                     2.62
Robustas                                                    23.07
Indonesia                                                    4.55
OAMCAF                                                      11.96
Uganda                                                       4.44
Zaire                                                        2.12
Note :   The Philippines as an exporting Member entitled to
         a basic quota shall have an annual quota in coffee
         year 1983/84 of 470 000 bags which shall be subject
         to any adjustments applied to the quotas of exporting
         Members entitled to a basic quota under the provisions
         of the Agreement
 ---pagebreak---      I hereby certify that the foregoing text is a true and complete
copy of the International Coffee Agreement 1983, open for signature
at United Nations Headquarters from 1 January 1983 until and
including 30 June 1983, the original of which is deposited with
the Secretary-General of the United Nations.