title: Recommendation for a COUNCIL DECISION on the directives to be followed in negotiations with certain third countr on the framework agreements relating to multiannual supply of agricultural products (submitted to the Council by the Commission)

text:
ARCHIVES HISTORIQUES
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COM (82) 73
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                  COM(82)73 final
                                                  Brussels , ^ March  1982
                             Recommendation for a
                               COUNCIL DECISION
 on the directives to be followed in negotiations with certain third countr
 on the framework agreements relating to multiannual supply of agricultural
                                   products
                ( submitted to the Council by the Commission )
 ---pagebreak---                      -y-
1 . In its Communication to the Council of 10 August 1981 on the negotiation
    of framework agreements relating to the multiannual supply of agricultu
    ral products , the Commission announced that , following a debate in the
    Council bodies and in the light of the discussions held there and the
    positions which had emerged, it would submit draft directives for the
    opening . of negotiations with certain applicant third countries .
2 . The aim of the annexed draft Decision which the Commission is forwarding
    to the Council is to obtain authorization for the Commission to start
    negotiations with the assistance of the Article 113 Committee with Alge
    ria , Egypt , Morocco and Tunisia with a view to concluding framework agree
    ments relating to the multiannual supply of agricultural products .
3 . In order to clarify the discussions , the Commission felt it would be
    appropriate to attach to this draft Decision reports on the fact-finding
    missions carried out in the abovementioned countries .
 ---pagebreak---                                                                     ANNEX I
                               COUNCIL DECISION
On the directives to be followed in the negotiations with certain third
countries on the framework agreements relating to       multiannual supply
of agricultural products .
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
Having regard to the Recommendation from the Commission ,
Whereas a number of third countries have expressed interest in being able to
forecast deliveries of agricultural products from Member States of the Community
Whereas agreements relating to the multiannual supply of agricultural products
may facilitate     orderly development of exports of agricultural products by
the European Economic Community ;
Whereas , consequently , the Commission should be authorized to enter into
negotiations with a view to concluding such agreements with the countries con
cerned in accordance with the directives contained in a model framework
agreement ,
HAS DECIDED AS FOLLOWS   :
                                  Article 1
The Commission is hereby authorized to enter into negotiations with a view
to signing framework agreements relating to       multiannual supply of agricul
tural products with the competent authorities of Algeria , Egypt , Morocco and
Tunisia .
                                  Article 2
The Commission will conduct the negotiations in consultation with the Special
Committee provided for in Article 113 of the Treaty and in accordance with the
directives contained in the model framework agreement contained in the Annex .
                                                     For the Council
                                                      The President
 ---pagebreak---                                                             ANNEX
MODEL FOR A FRAMEWORK AGREEMENT WITH                    RELATING TO THE
MULTI ANNUAL SUPPLY OF AGRICULTURAL PRODUCTS
The Council of the European Communities , of the one part , and the Government of
      name of country ..//
Desirous of contributing to the development of commercial relations and
to the strengthening of cooperation between /... name of country         and
the European Economic Community ,
Concerned to contribute to the security of food supplies in /'... name
of country
Have decided to conclude a Framework Agreement relating to the supply of
agricultural products and to this end have designated as their Plenipoten
tiaries : /... names of persons ..._/
Who have agreed as follows :
                                   TITLE I
                            GENERAL PROVISIONS
                                Article I
This Framework Agreement , hereinafter called the   Agreement , is designed
to assure /... name of country ..._/ of supplies of agricultural products
and the European Economic Community of outlets for those same products on a
regular , planned and mutually satisfactory basis .
                                Article 2
The authorities authorized to enter into the requisite commitments as re
gards the operation of the Agreement shall be :
- ^ or the European Economic Community, the Commission of the European
   Communities ;
 ---pagebreak---                                  -Ϋ
- for /... name of country ...//such and such a Body/.
                               Article 3
The products covered by this Agreement shall be / list of products /.
                               Article 4
1 . This Agreement shall constitute an undertaking , in accordance with the
    conditions laid down in the Articles following :
    - on the part of the European Economic Community to supply /..„ name of
      country ..._/ with certain quantities of / list of products J ;
    - on the part of /... name of country ...J to import the same quantities
      of products from the European Economic Community .
2 . For the purposes of this Agreement :
    - "undertaking to supply " shall mean that the Commission of the European
      Communities undertakes to adopt all the provisions necessary in com
      pliance with Community rules to ensure the availability of/ the products./
      in accordance with the conditions laid down in this
      Agreement ;
    - "undertaking to import " shall mean that /... name of country
      undertakes to adopt all necessary measures to insure the importation
      of / the products./ from the European Economic Community in accordance
      with the conditions laid down in this Agreement .
                               Article 5
The transactions pursuant to the undertaking entered into by the European
 Economic Community as specified in Article 4 of this Agreement shall be
 the responsibility of private operators .
 ---pagebreak---                                 Article 6
1 . /... name of country ..._/ shall do everything necessary to ensure that
     the procedures it lays down for importing / the products 1 originating
     in the Community do not result in discrimination between operators in the
     European Economic Community .
2 . It hereby undertakes to exercise the greatest possible care to ensure that
     the tendering arrangements for transport by sea shall not be prejudicial
     to the free play of fair competition
                                Article 7
The Commission of the European Communities and /... name of country
hereby undertake to notify each other of the provisions and measures adopted
for the implementation and execution of the obligations under this Agreement .
                                Article 8
1 . A Joint Committee shall be set up to ensure that this Agreement is properly
      implemented .
2 . The Joint Committee shall be composed , on the one hand , of representatives
     of the Commission of the European Communities and , on the other , of repre
     sentatives of /... name of country ..._/.
3 . The Joint Committee shall meet once every four months at a date and place
     arranged   by mutual agreement .  It shall also meet each time the need
     arises, at the request of either of the Parties to this Agreement .
                                                                          ■!m m m
 1
   This clause is indentical to one contained in long-term agreements with
    a number of countries and in the Food Aid Convention .
 ---pagebreak---                                    TITLE II
                              SPECIAL PROVI SIOMS
Article 9
1 . The quantities of [[products^ which       . . name of country . . .^ undertakes to
    import and the European Economic Community undertakes to supply , under , the
    conditions set out in Article 4 of this Agreement , shall be the following
    for each marketing year :
    - common wheat ( or equivalent in wheat flour ) :
      a minimum οτ            tonnes
      and a maximum of . . .  tonnes
    - durum wheat meal   :
      a minimum of            tonnes
      and a maximum of .. .   tonnes
    - barley :
      a minimum of            tonnes
      and a maximum of .. .   tonnes
    - etc.
2 . The marketing year within the meaning of this Agreement for[_the product ^
    shall begin on           and shall end on            of the following year , and
    for [[the other product~Jshall begin on             and shall end on
Article 10
   The[product Jcovered by this Agreement shall comply with the qualities and
specifications traditionally adopted in transactions between the European
Economic Community and£"... name of country ..."! .
Article 11
Approximately twomonths before the beginning of each marketing year , the
Joint Committee shall meet in order to decide precisely what quantities shall
be supplied and imported during that marketing year under this Agreement and
how the purchases shall be spread over that year .
 ---pagebreak---                                          ~
Article 12
If owing to exceptional ci rcumstances there are large quantities available in
£••• name of country . . /Jsr insufficient quantities in the Community, the Joint
Committee shall meet in order to amend the quantities referred to in Article 9 ( 1 )
accordingly .
Article 13
         name of country . .. jand the European Economic Community herby agree , each
    for its part , to make such arrangements as are necessary to ensure that the
    transactions are carried out at the     prices or quotations prevailing on the
    world market .
2 . The two Parties to this Agreement will consider whether the credit facilities
    accorded by the Member States of the Community or their authorized representatives
    can be applied to the contracts to be concluded under this Agreement.
                         B
                                      TITLE  III
                                  FINAL PROVISIONS
Article 14
This Agreement shall be valid for a period of three marketing years . This period
may be tacitly renewed for a further three years .
Article 15
This Agreement shall come into force on the first day of the marketing year
following that in which theJ^Office               and the Commission of the European
Communities notify each other that the procedures necessary for this purpose
have been completed .
 ---pagebreak--- Article 16
This Agreement is drawn up in duplicate in one of the languages of the
Community and in[fofficial language of the non-member countryj, each text
being equally authentic .
                     Mr                  . for the Commission of the
                                           European Communities
                     Mr.                   for
                     Done at                 this
 ---pagebreak---            -y-
   REPORTS ON FACT-FINDING MISSIONS
IN ALGERIA . EGYPT . TUNISIA AND MOROCCO
 ---pagebreak---                                    REPORT
        CONCERNING      EXPLORA    ORY    TALKS   WITH    THE    ALGERIAN
 AND    EGYPTIAN      AUTHOR I T I S   REGARDING      A  FRAMEWORK    AGREEMENT
   FOR    THE    MULT I ANNUAL     SUPPLY    OF   AGRI CULTURAI     PRODUCTS
I. MISSION TO ALGIERS
   1 . Two rounds of talks were held in Algiers from 4 to 6 May , one
       with , and under the auspices of , the Ministry of Trac ?, and the
       other with the . Ministry of Agriculture and the Agrarian Revolu
       tion ( MARA ). The heads < arid deputy heads ) of the state corpora
       tions or public boards .
 ---pagebreak---                                       - /-/-
              acting on behalf of one or other, of these two Ministries ( 1 ) in directing
               supplies were present at each set of talks .      Also , with the agreement of
              the Presidency, a briefing session with the Member States' representati
              ves was organized by the Commission Delegation in Algiers , since the
              Algerian authorities had sent formal and detailed requests direct to
              certain embassies at the end of February, concerning the conclusion of
               long-term agreements .
         2 . On a general level the gre?t importance attached by the Algerian autho
              rities to the rapid conclusion of a framework agreement between the
              Community and Algeria for the multiannual supply of agricultural products
              should be stressed .     The fact that they have placed such strong emphasis
              on this ties in with political and also economic motives which were very
              clearly stated in each round of discussions .
              ■                     : The Algerians consider the Commission as a special
                  discussion partner , since the talks are made easier from their point
                  of view by the absence, when dealing with the European Economic Com
                  munity as such , of other considerations or extrapolated political and
                  psychological conflicts which stop any further progress at a certain
                : stage in government - to- government relations .  Algeria considers it
                  necessary to strengthen the Association Agreement with the EEC by
                  means of a new approach to food security ( markets and supplies ).
              ■ §£2Q2Sl£_!I!2ilve£ ■ Algeria has requirements which become greater every
                  year , particularly as a result of population growth ( 550 000 more
                  mouths to feed every year ), the r'ise in the standard of living , and
                  the very slow growth rate of agricultural production ; the Community
                  is near Algeria , which reduces the costs of transporting supplies
                  accordingly, and only the Community can provide the very varied range
                  of products which this country with a population of almost 20 million
            1     requires ;
                                                                                ■ /• • ■
( 1 ) 0RGANIZATI0N_0F_IMP0RTS_INT0_ ALGERIA : The Government has given the monopoly
      for procurement from abroad to national corporations or boards , some of which
      come under the Ministry of Trade while others come under the Ministry of
      Agriculture ( MARA ). Those coming under Trade arethe 0NAC0 ( Office National
      de Commercialisation ), responsible mainly for milk products for direct consump
      tion , and the SNNGA ( Societe Nationale des Nouvelles Galeries Algeriennes ) ,
      responsible for all supplies for the large stores . Those coming under Agri
      culture are the OAIC ( Office Algerien interprofessionnel des Cereales ) which
      is responsible for wheat and barley, the SN SEMPAC ( Societe Nationale des
      Semouleries , Meuneries , Fabriques de pates alimentaires et Couscous ) respon
      sible for purchasing meal , flour and pasta , the ONAB ( Office National des
      Aliments du Betail ) and ONALAIT ( Office National du Lait et Produits Laitiers )
      responsible for domestic production and the reconstitution of milk .
 ---pagebreak---     Algeria is also anxious to embark upon a programme for the development of
    agricultural production ( poultry-raising and dairy farming , one of these
    to be financed by the EEC under the 1976 Financial Protocol ) and only the
    Community can provide effective help and support in all sectors .
3 . Iplith regard to the general scope and form of a long-term agreement , the
    Commission representatives noted that the " approach suggested in the draft
    Communication to the Council ( C0M(81)75 ) corresponded " almost perfectly "
    to that envisaged by the Algerian authorities .
     (i )   The type of agreement being considered by Algeria would be a frame
            work agreement ( or a framework convention ) providing general criteria
            for the negotiation and conclusion of commercial contracts between
            Community operators and the corporations , boards or organizations
            which hold the purchasing monopoly in Algeria ;
    ( ii )  The framework agreement or framework convention would be concluded
            between a Community authority and an Algerian ministerial authority .
            Two additional remarks should be made on this subject : the Algerians
            are aware of the fact that where the export of a Community agricultu
            ral product entails the granting of a refund , a framework agreement
            for multiannual supplies involves an undertaking on the part of the
            Community as such , as they have learnt from experience that a Commu
            nity operator or even a Member State always waits for 9 Commission
            refund decision before acting .  They have also left open the matter
            of whether one or two framework agreements would have to be concluded ,
            in view of the fact that , even though the Ministry of Trade 's Direc-
            torate-General for Coordination and Supervision has a horizontal role
            and is responsible for all external supplies , certains boards or state
            corporations come under the Ministry of Agriculture .
    ( iii ) The provisions to be included in the framework agreement should , in
            the opinion of our Algerian partners , be flexible and straightforward ,
            so that they can , if necessary, be adapted as circumstances require
            and also so that trade can be conducted freely, but the commitments
            made by the two sides should not be merely nominal or insufficiently
            binding .
 ---pagebreak---                          - J3-
 4 . On the matter of the actual content of the framework agreement , there is
      again a striking similarity of approach between what was proposed to the
      Commission on 19 February and the Algerians' stance now .
      The framework agreement would cover the following : the period of applica
      tion Ca three-year period has been mentioned , but a request has also been
      made for linkage with the present five-year plan ); the range of products
      covered ; the quantities concerned (a very marked preference has been stated
      for a quantity bracket , the actual supply and purchase figures for a given
      year being fixed by common accord before the beginning of that year in the
      light of the respective situations of the contracting parties ); the wording
      of the undertakings given by the two sides , including the description of
      the administrative measures adopted to ensure the agreement is implemented
      through normal trading channels ; the terms of reference - with particular
      regard to prices - for the commercial delivery or purchase contracts between
      Community operators and the Algerian state corporations ; lastly the adminis
      trative machinery ( for the annual negotiation of quantities, operation of
     the arrangements, etc .).
     The Algerian authorities also put forward certain points which it should ,
      in their opinion , be possible to include in the framework agreement .  Assu
      rances should thus be given, with proper backing , that products whose avai
      lability is guaranteed under the framework agreement really are of Community
     origin and that no single operator or Member State can artificially esta
     blish a de facto monopoly ("there is no single automatic channel "), as this
     would prevent Algeria from stabilizing its purchase flows on the basis of
     other external or domestic requirements ( equilibrium in its trade balance
     with a particular country , etc .).  The Algerian authorities also consider
     that if such a framework agreement were concluded , a joint effort to improve
     the quality of the products sold by the EEC should be undertaken - hence the
     need to include qualitative terms of reference corresponding , for example ,
     to the standards of the Algerian Ministry of Health - and that the syste
    matic use of letters of credit by Community operators ( sign of mistrust )
     should be abandoned in paying for supplies under the Agreement .
5 . A very detailed discussion was held on the matter of prices .     Various points
    should be singled out .    Firstly, Algeria considers that , in the light of
    the two sides , and above all in view of the fact that , for example , the
 ---pagebreak---                           - /y-
     EEC plays only an indirect role in price formation through the refund
     mechanism , fixed purchasing or selling prices or even a price bracket
     cannot be established in the framework agreement . It notes , however ,
     that the level of the refund and its degree of continuity during a mar
     keting year are determining factors for the conclusion of contracts by
     operators .   The Algerian authorities have voiced a number of criticisms
   . in this respect concerning the present system of administering refunds ,
     pointing to its somewhat arbitrary nature , which prevents the Algerian
     authorities from being able to rely on the Community at all times ; in
     their opinion , a "preferential difference " should be established between
     the rules governing the refund applicable to supplies under the Agreement
     and the rules relating to supplies not covered by the agreement .     In other
     words, it does not seem to be a matter of fixing a preferential refund
     level but of laying down special rules for the fixing of the refund
     ( advance fixing - duration of the advance fixing arrangement , terms of
     reference of the world price used to calculate the refund ) for only those
     quantities covered by the framework agreement .
     The Algerian authorities have raised the matter of the financing facilities
     granted to Algeria in one form or another by other trading partners : export
     credit granted by Sweden under the long-term wheat agreement , virtually
     free . installation - 1 % interest over 50 years - of intake silos under the
     long-term durum wheat and barley agreement with Canada , deferred payment
     under the red meat supply agreements concluded with Argentina and Australia
     etc .    They have expressed the wish that the EEC ,  which , as explained ,
     does not yet have an export credit mechanism , should follow up any opera
     tions undertaken by the Member States and or finance the installation in
     Algeria of intake capacity for some of the products supplied ( refrigeration
     facilities, silos , warehouses , port infrastructure , etc .).
6 . As regards products and quantities, the Algerians have supplied a list of
     what they estimate to be their import requirements ( see Annex I ), speci
     fying that this did not mean that all these products and quantities should
     come solely from the Community ana that even the quantities which could
     come from the Community should be covered by the framework agreement on
     multiannual supplies; this last remark ties in with the ideas expressed
     in COM (81 ) 75 ( see paragraph 5 . ( ii ).
 ---pagebreak---    They stressed that , when negotiations were initiated , their authorities
   would make precise proposals concerning the range of products and the
   quantities- to be covered by the framework agreement .
   They also drew attention to the fact that there were , strictly speaking ,
   three categories of products , whi ch could come under a framework agreement :
   - agricultural commodities : wheat , sugar , milk products for reconstitution ;
   - agricultural products for direct consumption : red meat , butter , flour ,
      meal , rice , pasta , eggs for direct consumption ;
   - products intended for the programme for the development of agricultural
      production : eggs for hatching , day-old chicks, dairy cows , compound
      feedingstuffs .
   In the case of the last category, the Ministry of Trade and the Ministry of
   Agriculture stressed this request and the particular urgency of making a
   start on meeting it , even if only on a very small scale ( poultry farming ),
   since this would provide an additional source of products for one of the
   projects financed under the EEC-Algeria Financial Protocol and would be of
  great importance to the implementation of that project .
. Cone lusions : Algeria is obviously anxious to conclude with the Community a
   framework agreement for the multiannual supply of agricultural products ,
  and to do so very shortly .      The Algerian authorities expressed in this res
  pect their heartfelt       wish that the Commission ( and the Council ) should
  pass very quickly from this exploratory stage to actual negotiations, and
  they hoped that 1982 could be the first year of application of a framework
  agreement .    The Community can meet this request without causing an increase
  in Community agricultural production ( the products and quantities requested
  are less than present supplies ), or excessive expenditure on refunds, or
  adverse effects on other countries' trade ( supplementary or sole source of
  supply ).
  It is obvious , however , that the real significance of such a framework
  agreement for the supply of agricultural products goes far beyond the trade
  sphere , for it would not only provide supplies for direct consumption but
  also ensure regular supplies of raw materials for the food processing in
  dustry and of agricultural inputs for a developing farm sector .        The im
  pression obtained was that Algeria thus attributes deep political signifi
  cance to it , that it could have economic repercussions on sectors other
  than agriculture , and that such a mutual commitment would pave the way for
  a new type of relations between Algeria and the EEC and its Member States
  in the context of the new international economic order .
 ---pagebreak---                                                             ANNEX I
      ESTIMATED REQUIREMENTS FOR ANNUAL IMPORTS OF AGRICULTURAL PRODUCTS
                                INTO ALGERIA
MILK PRODUCTS
Milk for infant feeding                 15 Q00 -   20 000 t
Flour for infant feeding'                2 000 -    3 000 t
Evaporated and instant milk            100 000 - 120.000 t
Butter ( not more than
           3 months old )               25 000 -   30 000 t
Cheese for processing                    7 000 -   10 000 t
Cheese for direct consumption :
     Emmental .                          3 000 -    4 000 t
     Gouda - type                        4 000 ~    7 000 t
Butteroil                                          10 000 t
CEREALS
Wheat - flour and meal                  to be specified by the MARA and OIAC
Barley and malt
Rice
OTHER PRODUCTS
Seed potatoes                                      10 000 t
Red meat ( mutton , beef )              20 000 -   30 000 t
Eggs for direct consumption             1 000 000 000 unit s
Powdered eggs                              100 -      500 t
Animal fat                              40 000 t
Eggs for hatching                       100 000 000 - 150 000 000 unit s
Day-old chicks                          1 000 000 - 2 000 000 units
Dairy cows                              2 000 head
Cattle on the hoof                      2 000 - 3 000 head
Sugar                                   500 000 t
Point-of- lay pullets                   100 000 - 200 000 units
Colza oil                               200 000 t
Colza seed                              70 000 - 90 000 t
 ---pagebreak--- II . MISSION TO CAIRO
      8 . The general objective which , in the view of the Egyptian authorities,
           should guide any framework agreement concluded between the EEC and
                  /
           Egypt on the mutiannual supply of agricultural products is somewhat
           different from the situation in the case of     Algeria .  It should be
           based on the national food strategy which President Sadat has made the
           cornerstone of his internal policy and which aims to satisfy the food
           requirements of a population growing at the rate of almost 100 000 per
          month and whose standard of living is improving every year (whence the
           growing need for high protein products such as meat and milk products ).
          This " food strategy policy " aspect was emphasized forcefully at each of
          the meetings which the Commission representatives had with the ministers
          responsible for supply, financial affairs , economic affairs and agricul
          ture during their visit to Cairo from 7 to 9 June .      Egypt bases this
          policy partly on the expansion of domestic agricultural production , which
           requires external financial and technical Support ( bilateral , plurilateral
          or multilateral ), and partly on "the conclusion of supply agreements with
          other countries .    The Commission representatives were accordingly infor
          med of the need for an overall cooperation agreement , thus confirming
          the impressions formed by Mr Cheysson .during his official visit to Egypt
          from 27 October to 2 November 1980 .
     9 . On the more specific question of a possible multiannual supply agreement ,
          whereas in Algeria the Community is able , it seems , to play the leading
          part , in Egypt it finds that other countries are already fulfilling that
          role .    In particular , the United States exports to Egypt in the region
          of t 750 million of agricultural products, thus accounting for over a
          third of its agricultural imports , in addition to which Australia and
          Argentina have concluded long-term agreements with Egypt (on cereals and
          beef and veal respectively ).
 ---pagebreak---      The Egyptian ministers stressed the need , however , to diversify their
     sources of supply and, in this context , described the role which they
     envisage for the Community which exports to Egypt a mere i 375 million
     of agricultural products ( i.e. around half the United States' exports ).
     The ministers considered that the Community possessed an immense advan
     tage in being able to offer a wide range of the    food products which
     Egypt requires .
10 . Another notable difference compared with Algeria , at least at this stage ,
     concerns the terms und^r which transactions are carried out ; credit sales
     seem to have reached unprecedented proportions in Egypt.'
     According to information provided by the Minister for Economic Affairs ,
     Dr Nour El Dine ( confirmed by a USDA report ), approximately 70 % of US
     agricultural exports to Egypt were sold in 1980 through USG financing
     programmes PL 480 and the Commodity Import Program .    Egypt is , for the
     USA , the principal recipient of PL 480 and all cereals sold (a third , of
     PL 480 to Egypt ) are covered by this aid ( i.e. 1.6 million t of wheat
     end flour and 100 000 t of maize ).   The terms of the agreement are those
     normally applicable ( down payment 5 % , the  balance payable in 31 annui
     ties , ten years after the final delivery , interest rate 2 % rising to 3 % ) .
     The Commodity Import Program (2 129 million in    1986 ) covers the greater
     part of other US agricultural exports to Egypt : lard, maize , tobacco ,
     poultrymeat and lentils .
     Australia , which on 5 February announced the signing of a long-term agree
     ment ( lasting five years , the 1977 agreement having lasted three years )
     for an annual supply of one million t .of wheat ( possibly 1.5 million t
     in the event of a good Australian harvest ), is granting Egypt credit fa
     cilities (for three years with interest negotiable at commercial rates in
     a trade-off with the price formula ).   In addition to this contract there
     is a food aid scheme involving 20 000 to 25 000 t of cereals .
     France , at the end of April , granted Egypt a loan fevai lable until 1 Au
     gust 1982 ) to import French agricultural products up1 to a value of
     FF 1 500 million ( i.e. approximately i 270 million ).    An earlier loan
     of the same type was worth FF 930 million but allowed Cairo to buy only
     wheat and flour ; the new agreement of April 1981 permits the additional
     purchase of sugar, milk products , meat , live cattle , eggs and oils .
 ---pagebreak---                                _
            Undoubtedly , other countries are similarly involved though not to such
            an obvious extent .    Egypt has always attached major importance to the
            " special conditions of sale " aspect and a long-term agreement with that
            country cannot ignore it ,
      11 . In relation to Algeria , the final difference concerns the arrangements
            for marketing Egyptian imports .    According to information provided by
            Or Fouad Hussein , Minister for Financial Affairs , a third of tre gc;ds
            entering the country are imported by private companies direct ( under
           monetary authorizations granted by the Central Bank ).       This free trade
            is increasing along with the increase in demand for goods ( not covered
           by special conditions of sale stipulated by exporting countries ) and
           their greater diversification ( linked to the improving standard of li
           ving ).   There are in Egypt no rules requiring all imports to be covered
           by long-term agreements , i.e. essentially bilateral agreements between
           governments .    A fairly substantial share of Egypt 's EEC exports would
           not be covered , therefore , by a framework agreement and private imports
           would continue .
      12 . Mr Ahmed Nouh , the Minister for Supply , who had a long meeting with the
           Commission representatives and was accompanied by Mr Darwish , Deputy
           Minister and Chairman of the      General Authority for Supply Commodities
           ( GASC ), the central import agency , answered detailed questions and argu
           ments by confirming that the Government was interested in entering into
           negotiations with a view to concluding between the EEC and Egypt an
           agreement on the multilateral supply of agricultural products .
           (i)     The general pattern of such a framework agreement could, according
                   to the Egyptians , be virtually identical to that envisaged in the
                   communication to the Commission of 19 February 1981 ( C0M(81 ) 75 ) ;
                   Algeria is thinking along the same lines , as indicated above .
           ( ii )  With regard to the range of products which could be covered, the
                   Minister for Supply mentioned :
                   - cereals : wheat , Western White type preferably required ( EEC stan
                     dard wheat is not far    behind ( 1 ), wheat flour, maize ( not cur
                     rently supplied by the EEC , which is a net importer ) ;
( 1 ) The current question of a 2 20 - 30 / t preference premium for this' type of
       wheat compared with EEC wheat - for which there is no justification in purely
       commercial terms - has not been clarified .                            '
 ---pagebreak---                                                                              *
        - mi lk_PC°ducts : butter , butteroil , milk powder , certain types
          of cheese ( gouda , processed cheeses , blue ) ;
        - sugar : in the eyes of the population this product is the key
           to the Government 's success in the manangement of its food po
           licy , though account should be taken of Egypt 's membership of
           the International Agreement and the provisions of that Agreement
          concerning restrictions on purchases from non-members ( including
           the EEC , which nevertheless sold around 100 000 t on average in
           1979 and 1980 ) ;
        ~ vegetable oils : sunflower or cotton seed oil ;
        - eggs ;
        - meat : red meat ( beef and sheepmeat ), bone-in or boneless , live
          animals for slaughter or stock-building , corned beef , poultry-
          meat and day-old chicks ;
        - fish : fillets and preserved fish ( mainly mackerel ).
( iii ) No quantity was mentioned .   The Minister for Supply refused to
        give any details on the grounds that the prices or terms of payment
        offered by the EEC would determine what Egypt would ask for during
        the negotiations .   He expressed interest in receiving official of
        fers from the EEC regarding quantities in due course .
( iv )  The question of prices and price conditions was the subject of a
        long and wide-ranging exchange of views .
        First , the Egyptian authorities clearly had an erroneous view of
        the respective responsibilities of the Commission , the' Member States
        and Community operators in each export operation ; the Community as
        such was seen as having more power or more resources ( credit ) than
        it in fact has at present , and certain operators or Member States
        had omitted to point out to their opposite numbers that the refund ,
        which was necessary for each operation , was a Community instrument .
 ---pagebreak--- Secondly , it is clear that being accustomed to trading on
the basis of special conditions of sale , the Egyptians do
not wish to contemplate a framework agreement containing no
reference to some sort of " preference ", at least for major
products .  The terms of payment ( credit ) were discussed , but
also alternative arrangements involving a link with food aid .
Solutions to these questions are feasible and include the
possibility of a parallel arrangement involving both a frame
work agreement and food aid , the incorporation in the frame
work agreement of national credit             for the purchase
by Egypt of foodstuffs , or arrangements for financing develop
ment projects .   It appears that Egypt has realized that a
higher refund ( the preferential price idea ) is not necessarily
reflected in the prices charged by Community operators .


title: RECOMMENDATION FOR A COUNCIL DECISION on the conclusion of the Agreement amending the Agreement of 18 December 1974 between the European Economic Community and the Republic of Chad (submitted to the Council by the Commission)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (75) 248
Vol. 1975/0089
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                     COM(75 ) 248 final
                                                     Brussels , 4 June 1975
                          RECOMMENDATION FOR A
                            COUNCIL DECISION
    on the conclusion of the Agreement amending the Agreement of
                      18 December 1974 between the
        European Economic Community and. the Republic of Chad
             ( submitted to the Council by the Commission)
COMC75 ) 248 final
 ---pagebreak---           Commission communication to the Council
Under the 1973/ 74 food, aid programme for the Sahel countries ,
                                                                    4
the Community had decided to grant 10 000 metric tons of cereals
to the Republic of Chad .
These products were to be distributed free of charge , and the
transportation costs to the distribution centres were payable
by the Community .
Because of congestion at the ports of unloading and of other
shipments in progress^, delivery of these amounts was delayed
at the request of the Chad authorities , and was made in several
instalments between October 1974 and January 1975 * These cereals
were distributed in the deficit areas with the exception of
                   2
5 500 metric tons    which are currently held in stock at
N'Djamena pending transportation to these areas . It should be
noted in this connection that these areas were better supplied
this year because of a larger millet and sorghum crop , of which
approximately 10 000 metric tons were bought in the South and
transported to the North as part of an operation organized with
the assistance of the WFP.
There are increased difficulties , on the other hand , in supplying
the areas with imported cereals , particularly wheat , because of
chronic transport difficulties between Nigeria or Cameroon and
Chad. As a result , although orders were pl'aced with foreign
suppliers several months ago , stocks of flour will soon be exhausted
  In particular 6 000 metric tons from the EEC under the 1972/73
  programme .
2
  Including 3 600 metric tons of wheat , 570 metric tons of maize
  and 1 250 metric tons of sorghum.
 ---pagebreak---                     m â m
  For these reasons the Chad authorities have requested authorization
  from the Community to sell the 3 600 metric tons of wheat from the
  EEC at present held in stock in N'Djamena, instead of distributing
  them free of charge as provided for in the supply agreement , in
  order to guarantee normal supplies of flour on the Chad market . It
  should he pointed out that General Malloum , President of the
  Conseil Superieur Militaire , personally approached the Commission 's
  Delegate in Chad to stress the importance which he attached to this
                                                            I
  request xn view of the circumstances described above .
  The Chad authorities proposed the following arrangements for this
  operation :
                                                                     I
  The wheat will be sold at the official prices ruling in Chad ,
  i.e. CFAF 50/Kg. The proceeds are expected to amount to CPAP
  150 million (approximately 530 000 u. a. ), which will be held in
, a special blocked account and used for a development project , the
  details of which will be forwarded to the Community in the very
  near future .
  In view of the particularly difficult situation with which the Chad
  authorities are faoed , and as it is understood that food supplies
  from other sources are guaranteed for those sections of the
  population affected by the crisis , the Commission oonsiders that
  the Community should grant this request .
                                              . I
                                              !
  This operation would have the added advantage that the Community 's
  responsibility would not extend beyond N'Djamena , thus avoiding
  additional storage and transport costs in the country.
                                               ;
  Accordingly , the Commission proposes that the Council :
  - authorize the sale of   3 600 metric tons of wheat from the
    10 000 metric tons of   cereals delivered to the Republic of
                                                               l
    Chad under the 1973/74 food aid programme (cereals );
  - amend to this effect , by an exchange of letters^" , the supply
  agreement signed with that country ;
  - authorize the advance implementation of this operation.
   The draft of which is annexed.
 ---pagebreak---                           Reccaoendatien fer a
                           OÔUNeïL DBSïSIQN
  on the conclusion of the Agreement amending the Agreement of 18 December
  1974 between the European Economic Community and the Republic of Chad .
 THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
 Having regard to the Treaty establishing the European Economic Community ,
 and in particular Articles 113 , 114 and 228 thereof ;
 Having regard to the recommendation from the Commission ;
 Whereas the European Economic Community has concluded the second Pood Aid
 Convention ( l );                              '
Whereas an Agreement ( 2 ) between the European Economic Community and the
 Republic of Chad on the supply of 10 000 metric tons of cereals for free .
distribution to needy sections of population was signed on 18 December 1974 ?
Whereas the Republic of Chad has requested that , in view of the difficulties
in the supply situation of wheat flour in Chad, the 3 600 metric tons of wheat
supplied as part of this gift may be sold ;
Whereas in order to grant this request certain Articles of the Agreement of
 18 December 1974 must be amended ,
HAS DECIDED AS FOLLOWS s
                                      Article 1
The Agreement in the form of an exchange of letters between the European
Economic Community and the Republic of Chad , the text of which is annexed
to this Decision , is hereby concluded on behalf of the Community.
                                      Article 2
The President of the Council is hereby authorized to designate the persons
empowered to sign the Agreement and to confer on them the powers required
to bind the Community.
Done at Brussels ,                                  Por the Council
                                                    The Président
  i  OJ No . L 219 , 9.8.1974 , p. 24
     OJ No . L 62 , 7.3.1975 , p. 28
 ---pagebreak---                               ÂÔRSEMMT
                          /
 in form of an exchange of letters between the European Economic Community
 and the Republic of Chad modifying certain articles in the Agreement reached.
                  A. Letter from the European Economic Community
 Sir,
With reference to the Agreement of 18 December 1974 between the European
Economic Community and the Republic of Chad on the supply of 10 000 metric
tons of cereals for free distribution to needy sections of population and
the request by the Republic of Chad that in view of the difficulties in the
supply situation of wheat flour in Chad on the local market the European
Economic Community authorize the sale of 3 600 metric tons of wheat included
in this gift , I have the honour to propose to you the following amendments to
the abovementioned Agreement :
1 . The followirg shall be substituted for Article V :
    The country of destination undertakes to use the products received as aid for
    purposes of consumption and to distribute thera free to people in need , with
    the exception of 3 600 metric tons of soft wheat which may be sold on the
    market of the recipient country at prices comparable with those normally
    charged for products of similar quality.
    The proceeds from this sale , less the cost of sea' transport , insurance
                                                         I                       \
    and the normal cost of selling the product on the recipient country 's
    market , will be paid into a special account and allocated to the financing
    of one or more development schemes which have already been proposed by the
    recipient country and approved by the European Economic Community.
2 . The following shall be substituted for Article VIII :
    The recipient country undertakes to inform the European Economic Community
    how this Agreement is being implemented . To this end it shall provide the
    Commission of the European Communities with the following information :
    l ) Every three months until the quantities received as aid have been
        fully used :  «
        a) number and description of recipients , the quantities distributed,
            and where and how they were distributed.                           '
        b ) Quantities sold , how they have been sold, selling prices ; normal
            selling costs on the recipient country 's market :
 ---pagebreak---                                  - 2 -
                                                        I
   2 ) On 15 January every year until the special account has been fully
        used :
        a) Stat$ of this account ( inoomings and outgoings ) on 31 December
            of the preceding year ;
        b ) Progress achieved in the project or projects , with an indication
            of the total amount of financing undertaken at that stage .
I shall be obliged if you will inform me whether your Government can agree to the
above .
Please accept . Sir, the assurance of my highest consideration .
                                                For the Council
                      •                                i.
                                         of the European Commuait ies
 ---pagebreak---                                   -   -
                   B. Letter from the Republic of Chad .
 Sir ,
 I have the honour to acknowledge of your letter of            reading as
 follows :
 With reference to the Agreement of 18 December 1974 between the European
 Economi'c Community and the Republic of Chad on the supply of 10 000 metric
tons I of cereals for free distribution to needy sections of population,* and
the request by the Republic of Chad that in view of the difficulties in the
supply situation of wheat flour in Chad on the local market the European
Economic Community authorize the sale of 3 600 metric tons of wheat included
in -this gift , I have the honour to propose to you the following amendments to
the abovementioned Agreement :
                    if
1. The followii^ shall be substituted for Article V :
    The country of destination undertakes to use the products received as aid for
    purposes of consumption and to distribute them free to people in need , with
    the exception of 3 600 metric tons of soft wheat which may be sold on the
    market of the recipient country at prices comparable with those normally
    charged for products of similar quality.
    The proceeds from this sale,' less the cost of sea transport , insurance
    and the normal cost of selling the product on the recipient country 's
    market , will be paid into a special account and allocated to the financing
    of one or more development schemes which have already been proposed by the
    recipient country and approved by the European Economic Community.
2 . The following shall be ^substituted for Artiole VIII :
    The recipient country undertakes to inform the European Economic Community
    how this Agreement is being implemented . To this end it shall provide the
    Commission of the European Communities with the following information :
    l ) Every three months until the quantities received as aid have been
        fully used :
        a) number and description of recipients , the quantities distributed ,
            and where and how they were distributed .
        b ) quantities eold, how they have been sold, selling prices ) normal
                                                         .  .                f -, ■■
            selling costs on the recipient country 's market ;
 ---pagebreak---                                  - 4 -
     2 ) On 15 January every year until the special account has been fully
          uséd :
          a) State of this account ( incomings and outgoings ) on 31 December
              of the preceding year ?                                      ,
          b ) Progress achieved in the project or projects , with an indication
              of the total amount of financing undertaken at that stage .
  I shall be obliged if you will inform me whether your Government can agree to th<
  above .
I have the honour to inform you that the Government of the Republic of
Chad agrees to the amendments proposed in your letter .
Please accept . Sir , the assurance of my highest consideration .
                                         For the Government
                                      of the Republic  of   Chad


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

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 1987
Vol. 1973/0353
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak---  COMMISSION OF THE EUROPEAN COMMUNITIES
                                                       COM(73)1987 final
                                                       Brussels , 26 November 1973
                             RECOMMENDATION FOR A
                               COUNCIL DECISION
     on the conclusion of an agreement between the European Economic
        Community and. the Democratic and Popular Republic of Algeria
                 for the supply of soft wheat as food aid
                (submitted to the Council by the Commission)
COM(73 ) 1987 final
 ---pagebreak--- THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
and in particular Articles 113 , 114 and 228 thereof j _
Having regard to the Recommendation from the Commission ;
Whereas the European Economic Community has deposited a Declaration for
provisional application of the 1971 Pood Aid Convention ; whereas that
Convention has "been applicable since 1 July 1971 J
Whereas the Democratic and -Popular Republic of . Algeria , - by its letters of
17 January 1971 and 19 lebruary 1973 has requested food aidj
Whereas in view of the cereal supply situation in the Democratic and Popular
Republic of Algeria that country should be' accorded , by way of gift , 25 000
                                       «
metric tons of soft wheat under the Community. Aid Programme for 1971/72 3 and
15 000 metric tons of soft wheat under the Programme for 1972/73 }
DECIDE :
                                    Article 1-
On behalf of the European Economic Community an Agreement , the text whereof
is annexed hereto , shall be concluded between the European Economic Community
and the Democratic and Popular Republic of Algeria for the supply of soft
wheat"- as food aid .
                                    Article 2
The President of the Council is hereby authorized to designate those who
are . to sign the Agreement and to confer on them the requisite powers to bind
the Community .
                         *
Done at Brussels .                    19                     For the Council
                                                               The President
 ---pagebreak---                 AGREMENT
BETWEEN THE EUROPEAN ECONOMIC COMMUNITY
AND DEMOCRATIC AND POPULAR REPUBLIC OP ALGERIA
ON THE SUPPLY OP POOD AID IN THE FORM OP
SOFT WHEAT .
 ---pagebreak--- THE COUNCIL OF THE EUROPEAN COI-iMUNITISS ,
                        . , .                        -on the one hand ,
THE GOVERlIMETiT OF THE DEMOCRATIC AND POPULAR REPUBLIC OF ALGERIA
                                    -                 on "the other hand ,
HAVE DECIDED "to conclude this Agreement and to this end have designated
as their plenipotentiaries :
THE COUNCIL' OF THE EUROPEAN COKMONITIES :
THE GOVERNMENT OF THE DEMOCRATIC AND POPULAR REPUBLIC OF ALGERIA :
WHO HAVE AGREED AS FOLLOWS :
 ---pagebreak---                                   ARTICLE I
The European Economic Community shall supply , by way of gift , the Democratic
and Popular Republic of Algeria , hereinafter referred to as the "recipient
country ", with 25 000 metric tons of soft wheat as a part of its Food Aid
Programme ( Cereals ) for 1971/72 and 15 000 metric tons of soft wheat as a part
of its Programme for 1972/73*
                                  ARTICLE II
Deliveries will be made in bulk , fob to Community ports .
                                  ARTICLE III
The obligations and responsibilities of the European Economic Community and
of the recipient country relating to delivery and the taking of delivery
are defined in the Annex , which forms an integral part of this Agreement .
                                       t
                                  ARTICLE IV
The recipient country undertakes to make all necessary arrangements for the
transport and insurance of the product from ports of shipment to places of
destination .
It untertakes to exercise the greatest possible care to ensure that the
tendering arrangements for the transport by sea are not prejudicial to the
free play of fair competition . Any problems arising in this connection shall
be the subject of consultations under Article IX of the present Agreement . r
                                   ARTICLE V
The recipient country undertakes to use the product received as aid for pur
poses of consumption and to apply , for the sale of the product on its market ,
the prices normally charged on that market for products of comparable quality
 ---pagebreak--- The proceeds from this sale , less the cost of sea transport , insurance and the ^
normal cost of selling the product on the recipient country 's market , will
be paid to the Algerian Treasury and allocated to the financing of one or more
development schemes which have already "been proposed by the recipient country
and approved "by the European Economic Community ,.
                                    ARTICLE VI
The Contracting Parties undertake to implement this Agreement in such a way as
to avoid any prejudice to the normal structure of domestic production and inter
national trade . To this end they shall take any measures required to ensure that
aid supplies are in addition to , and do not replace , business transactions which
might reasonably be expected in the absence of such supplies . In particular ,
the recipient country undertakes to import commercially from whatever source
                                        • .
between    1 July 1973    and    30 June 1974       a minimum quantity of
metric tons of soft wheat or its equivalent in flour of soft wheat .
                                    ARTICLE VII
The recipient country shall take any measures required to prevent :
(i )    The re-export of the product received as aid and of products and
       by-products resulting from such supplies $
(ii )   The export , commercially or otherwise ,within six months of the last
       delivery , either of the product obtained locally and of the same nature
        as the product received as aid or of any products or by-products resultir
        from it .
                                    ARTICLE VIII
The recipient country undertakes to inform the European Economic Community how,
this Agreement is being implemented . To this end it shall provide the Commissioi
of the European Communities with the following information :
 ---pagebreak---                                    - 3 -
 (i )   Not later than thirty days after the unloading of each cargo :
        ports and dates of arrival of the vessel ; .nature , quantity and
        quality of the products unloaded ; date on which unloading was
        completed ;
(ii )   Every three months until the quantities received as aid have "been
        fully used : quantities sold , how they have been sold , selling prices ;
        normal selling costs on the recipient country*s market ;
(iii )  On 15 January every year until the special account has "been fully
        used :
        (a) State of this account ( incomings and outgoings ) on 31 December
               of the preceding : year ;
        (h ) Progress achieved in the project or projects , with an indication
               of the total amount of financing undertaken at that stage .
                                  ARTICLE IX
At the request of either of them , the Contracting Parties shall consult each
other on any questions concerning the implementation of this Agreement .
                                  ARTICLE X
This Agreement is drawn up in duplicate in the Danish , 'Dutch , English , French ,
German and Italian languages , each of these texts being equally authentic .
 ---pagebreak---                          ANNEX TO ARTICLE III OP THE AGREEMENT
                                      Article 1
 Delivery shall "be effected and risks shall pass from the European Economic
 Community to the recipient country at the moment at which the goods have
been placed in the ship 's hold at the port of shipment .
 The recipient country shall "bear all costs subsequent to delivery of the goods ,
 including costs of stowage and , where appropriate , of trimming and bagging .
Any demurrage costs or dispatch at the port of shipment shall be a charge on
or for the benefit of the European Economic Community and shall be determined
before the vessel sails . The rates and detailed arrangements relating thereto
laid down in the contract between the recipient Coventry and the carrier must
have been agreed upon in advance by the recipient country and the authorized
agent of the European Economic Community referred to in Article 9 *
                                      Article 2
The European Economic Community shall notify the recipient country in good
time of the port or ports of shipment , the quantities to be delivered at each
port , the period within which loading must begin , and the daily loading rate .
                                      Article 3
The European Economic Community must be prepared to load the goods on the date
resulting from the instructions in Article 8 , whereon the 'vessel should be
ready for loading .
                                      Article 4
On delivery of the goods , a loterance of 5 5» less than the quantity to be
supplied in accordance with Article 1 of the Agreement is permitted .            f
 ---pagebreak---                                Article 5
 Once the goods are on board the vessel , the European Economic Community shall
notify the recipient country of the date of loading , and the quantity and
 quality of the goods as recorded on loading.
                               Article 6
 The recipient country shall supply the European Economic Community , within the
 period referred to in Article 2 , with a vessel of dimensions corresponding to
the normal loading potential of the port of shipment .                           ;
Should it prove impossible for the vessel to begin loading within the period
referred to in Article 2 and should the recipient country not have notified
the European Economic Community of this fact in writing at the latest by the
date on which the vessel should be ready for loading in accordance with Article I
the goods shall be at the disposal of the European Economic Community .
Whatever the circumstances , the goods shall be held at the expense , risk and
peril of the recipient country .
                               Article 7
Should the recipient country fail to provide a vessel of suitable tonnage or
if the quantity made available for loading on a vessel of suitable tonnage
cannot be put on board in its entirety because of circumstances beyond the
control of the European Economic Community, the balance shall be loaded onto
the next vessel under the conditions laid down in this a^inex.
In this event , until the date of loading of this balance or until the recipient
country gives notice in writing that it gives up this balance , the goods shall
be hold at the expense , risk and peril of the recipient country .
The recipient country nrast notify the European Economic Community within a
period of a maximum of 30 days from the beginning of loading of the shipment
to which these goods should have belonged , of the date on which loading of
this balance is due to begin or of its renunciation of this balance .
 ---pagebreak---  If this obligation is not respected , the European Economio Community may
consider that it has discharged its commitment to the recipient country under
Article 1 of the Agreement .
                              Article 8
The recipient country shall name for the European Economic Community the
vessel that is to ship the goods at least 10 clear days prior to the estimated
date of arrival of the vessel in part or , where possible , 20 clear days prior
to this date , and shall at the same time indicate how soon after that date
the vessel will he ready for loading .
The recipient country shall insert in the charter party a clause requiring
the captain to inform the European Economic Community at least 72 hours in
advance of the vessel 's estimated date of arrival in port .
                             Article 9
To implement the provisions of this Annex , the European Economic Community
shall appoint an authorized agent , whose name and address shall he made known
in good time to the recipient country .
The recipient country shall nominate a receiving agent in eaoh port of ship
ment , whose name and address shall he made known to the European Economic
Community before the Agreement is implemented .


title: RECOMMENDATION FOR A COUNCIL DECISION on the conclusion of an Agreement between the European Economic Community and The Republic of Afghanistan for the supply of butteroil as food aid (submitted to the Council by the Commission)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (74) 1072
Vol. 1974/0176
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                     COM ( 74) 1072 final .
                                                     Brussels , 11 July 1974
                 RECOMMENDATION FOR A COUNCIL DECISION
            on the conclusion of an Agreement between the
     European Economic Community and The Republic of Afghanistan
                 for the supply of butteroil as food aid
             ( submitted to the Council "by the Commission)
C0M(74) 1072 final
 ---pagebreak--- THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
   . r
Having regard, to the Treaty establishing the European Economic Community , and m
particular Articles 113 , 114 and 223 thereof ;                                •
                                         *                     1
Having regard to the proposal from the Commission ;            i
Whereas the Council in Regulation (EEC ) no . 530/74 of
as food aid decided to make 600    metric tons of butteroil available to    the
Republic of Afghanistan
HAS DECIDED :
  J                '                        .
                                                                    i■
                                     Article    1
An Agreement between the European Economic Community and the Republic of Afghanistan
for the supply of    butteroil      as food aid. is hereby concluded on behalf of
the European Economic Community . The text of the Agreement is annexed to this
Decision .                '                   ...
                                     Article    2
rhe President of the Council is authorized to designate the persons empowered to
sign the Agreement and to confer on them . the powers required in order to bind the
Community .                                                                      •
Done at Brus sel s ,
                                                        ' For the Council .
                                                           The Président
 ---pagebreak---                                     I
         AGREAIENT
BETVEEN THE EUROPE Al1! ECONOMIC COÎIÏÏUNTTY
    AND THE REPUBLIC OP     AFGHANISTAN
ON THE SUPPLY OP FOOD AID Hi THE FORI ! OP
         BUTTEROIL
 ---pagebreak--- THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
                                           ôf tho one part ,
        i                            1
THE GOVERNMENT OP THE REPUBLIC OP AFGHANISTAN
                                           of the othcr part ,
HAVE DECIDED to concluded this Agreement and to this end have
designated as their plenipotentiaries :
THE COUNCIL OP THE EUROPEAN COKHUNITIES :
THE GOVERNMENT OP THE REPUBLIC OP AFGHANISTAN
WHO HAVE AGREED AS FOLLOWS S
 ---pagebreak---                                                -2-
                                                                                »• *
                                             ARTICLE I                 *
                                             1     "   ' '                   %
   ..        The European Economic Community shall supply "by way of gift to the Republic
             of Afghanistan ( hereafter referred to as " the recipient country" J a           >
              quantity of 600 tonnes of butteroil . ' The quality and packaging conditions
             are specified, iri Annex I which forms an integral part of the present     '
~ ~ "        Agreement .
      . .                             »              '               •   •     »
                                             ARTICLE II
             Deliveries shall "be effected under the arrangements provided in Anne* II v;hich
             forms an integral part of the present Agreement .
           i             ■     ■                                           .
                                             ARTICLE III
             The recipient country undertakes to make all necessary arrangements for the
             transport and insurance of the products from point of delivery to places of
             destination .
             It undertakes to exercise the greatest care to ensure that the tendering arran
             gements for sea transport do not prejudice the free play of fair competition .
             Any problems arising in this connection shall be the subject of consultations
            under Article VIII of the present Agreement .
                 . "                    •    ARTICLE IV
            The recipient country undertakes to use the product received as aid for pur-1
            poses of consumption and to apply , for the sale of the product on its market ,
            the prices normally charged on that market for products of comparable quality.
            The proceeds from this sale shall be paid into a special account with the
          .Central Baiik and allocated to the financing of one or more development projects
           under arrangements which have been agreed in advance between the recipient
             country and the European Economic Community.
 ---pagebreak---                                          -3-
                                                                       *. *>
                                      ARTICIS V
  The Contracting Parties undertake to implement this Agreement in such, a way
  cis "fco avoid, any prejudice "to the 'normal structure of national production
  and international trade# To this end they shall take any measures required
                                                                  "V-
  to ensure that supplies as aid are in addition to and do not replace "business
  transactions which might reasonably "be expected in the absence of such supplies .
                                      ARTICLE VI
  The recipient country ^hall take all steps required to prevent :
  ( i ) the re-export of the product received as aid and also of any products
         resulting therefrom ;
  ( ii ) the export , commercially or otherwise , within a period of six months
          commencing from the final delivery , either of any product procured
          locally of the same nature as that received as aid , or of any products
          resulting therefrom .
                                      ARTICLE VII
  The recipient country undertakes to inform the EEC of how this Agreement
  is implemented . To this end it shall provide , the Commission of the '.European
  Communities with the following details :
  ( i ) Immediately after the unloading of each cargo : ports and dates of
         arrival of vessel ; nature , quantity and any observations as to the
         quality of the products unloaded ; date on which unloading was completed ;
         costs of sea transport and of insurance relating thereto ;
• ( ii ) Every three months until the quantities received as aid have been fully
          used : quantities sold,' manner of sale { actual selling prices jnormal selling
         costs on the recipient country 's market ; costs of insurance ( and of trans
         port if applicable ) from the port of unloading to the places of destinar
       tion ;
  (iii ) On 15 January every year until the special account has been fully
          expended :            O'
          a) Summary of the account ( incomings and outgoings ) to 31 December of
              the previous year ;
          b) Stage of progress of the project or projects , indicating the total
              resources expended to that stage *
 ---pagebreak---                                   ARTICLE VIII
The Contracting Parties shall at the request of either consult each other
on any questions concerning the implementation of this' Agreement .
                                                                      *
                                . ARTICLE IX
This Agreement is dravm up in duplicate in the Danish , Dutch , English , French ,
German find Italian languages , each of these texts having equal force .
 ---pagebreak---                                                                   AMIBX I    '
                            EUTTEROIL                                  ,** *
                             .                                       9
         .                                                         '           \
                                                            '  •               i .
                                 . ' \   "   -             »
             ' •                                       '
                                                           i
                                                   •          v '
QUALITY              '         ; •
(A) Product characteristics :
    Concentrated milk fats containing not less than 99*0$ of pure fats ;
(b) Standard composition :                        .
     (Analysis made at time of manufacture and packing)
       Moisture and non-fat milk substance s-not more than 0.2/S
    - Pats - not less than 99«9f°          •
    - Free fatty acids - not more than 0.5$ (expressed as oleic acid) ,
                                                   »
    - Peroxide level/kg - not more than 1 unit (in milli-equivalonts of
       active oxygen per kg)
    - Taste - pure
    - Smell - absence of smell extraneous to butteroil
                 •                              .        •
 CONDITIONS OP PACKAGING
 a) Metal cans of 20 kg – 1 can per carton.
 h) Marked the . packaging in English :
    HJTTEROIL
                                                     >     I
    GIFT OF THE EUROPEAN ECONOMIC COiMJNITY
    TO THE REPUBLIC OF AFGHANISTAN
 ---pagebreak---                                                                 MNïïX II
                             General     provisions
                                     i .                  't
                                   Article I
                                                           i
   Delivery shall be effected and risks shall pass from the European Economic
   Community, hereinafter referred to ad. the EEC , to the recipient' country at
   the moment at which the goods are put down at the point of exportation
   named "by the Commission of the European Communities at the   berth     specified
   by the recipient country or its agent referred to in Article 2 . and under the
   terms specified in thd following articles . Without prejudice to Article 7 and
   8 the EEC shall bear all costs up to delivery and the recipient country those
   beyond such delivery .                                                s
                                  Article 2
                             O'   ––––
  The EEC shall appoint an agent to implement the provisions of the present
  Annex- or for each consignment- whose name and address it shall make known
  to the recipient country immediately following his appointment .
. The recipient country shall appoint an agent in the port or ports of shipment ,
  whose name and address it shall make known to the EEC with all despatch and
  if possible before the appointment of agent of the EEC .
                                  Article 3
  Before implementing the procedures for appointing the agent of the EEC
  referred to in Article 2 , the Commission of the European Communities and
  the recipient country shall jointly establish the period during Which deli
 very must begin .
                        Obligations of the European Economic Community
                                  Article 4
 Should the EEC not be in a position to carry out delivery on the date and ( if
 applicable) on the schedule as provided in Article 6 , all costs
 arising for the recipient country- for example demurrage void freight and
dead freight- shall be borne by the EHi
 ---pagebreak--- The charges and the arrangements reletting to demurrage laid down in the
contract between the recipient country and the carrier must havG "been agreed
in advance by the recipient country and the agent of the EEC .
                                                       t
                                                           V
The other costs referred to in the first paragraph shall only be refunded
by the EEC if they have been paid by the recipient country with the approval
of the EEC .
                              Article 5
Should it prove impossible for the EEC to supply all or part of the goods
on the date and within the time-limits provided for in Article 6 and without
prejudice to the provisions of Article     a new date and a new time-limit
shall be agreed between the agents of the EEC and of. the recipient country
for the delivery of all the goods or of the undelivered part thereof.
                      Obligations of the recipient country
                              Article 6
After contacting the EEC , the recipient country shall procure one or more vessels
to transport all the quantities provided for in Article 1 of the Agreement , of
dimensions corresponding to the normal capacity of the port of shipment ; these
vessels must be ready for loading on a date falling within the period referred
to 'in Article 3 .
The agent of the recipient country shall inform .the EEC of this date
immediately on learning it , and also that for commencement of delivery ,
if possible twenty days in advanoe and in any case ten days before the date
for commencement of delivery.
         /
He shall establish with the agent of the EEC the schedule on which delivery shall
take place .
 ---pagebreak---                               Article 7
 Should the recipient country be unable to begin loading on the date provided
 for in Article 6 , paragraph 1 , the agent of the recipient country shall in
 form the agent of the EEC without delay.
 In this event a new date for the' commencement of delivery and (if applicable) a
 schedule could be, agreed between the agents of the EEC and of the recipient
 country . The costs arising from this delay shall in all cases except force
ma.jeure be borne by the recipient country .
 Should the new date provided for in paragraph 2 be more than 30 clear days
 sifter the date for loading provided for in Article 6 , paragraph 1 , the EEC
may- dispose of the goods without prejudice to its commitment under Article 1
of this Agreement .
                             Article 8
If the quantity made available for loading on a vessel cannot be put on
board in its entirely , the recipient country shall inform the EEC as soon
as possible and no later than fifteen clear days after loading has been
completed whether it intends to accept or to renounce the balance .
In the former case the provisions of Article 7i paragraphs 2 and 3 » shall
apply to the balance , if delivery has not yet taken place .
In the latter case the EEC may consider that it has discharged its commitment
to the recipient country under Article 1 of this Agreement and shall bear
the costs resulting from such renunciation .
In any event after the expiry of an interval of fifteen clear days and in
the absence of any notice on the part of the recipient country , the renun
ciation shall be deemed to have taken place .
                              Article 9
Upon delivery of the goods , the recipient country shall hand to the agent of
the EEC a certificate of acceptance stating the port of shipment , date of
acceptance , the nature and quantity of the goods accepted and including
any comments on the quality of the goods .


title: RECOMMENDATION FOR A COUNCIL DECISION amending Council Decision of 18 May 1981 authorizing the Commission to open negotiations with the ACP States referred to in Protocol 7 annexed to the second ACP-EEC Convention of Lomé and with India on the guaranteed prices for cane sugar to apply in the 1981/82 delivery period (presented by the Commission to the Council)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (81) 684
Vol. 1981/0201
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                 COM(81 > 684 final
                                                 Brussels , 18th November 1981
                       RECOMMENDATION FOR A COUNCIL DECISION
          amending Council Decision of 18 May 1981 authorizing the Commis
          sion to open negotiations with the ACP States referred to in Pro
          tocol 7 annexed to the second ACP-EEC Convention of Lomé and with
          India on the guaranteed prices for cane sugar to apply in the
          1981 / 82 delivery period
                      (presented by the Commission to the Council )
                                        jco g        ^ „'\V  v\ -:*> ■
                                          VV"'
                                               .    s<v"        vN "-7
                                                                    /
                                                                       .
COM ( 81 ) 684 final
 ---pagebreak---                   '       ' '              Explanatory note                     - ;  ,
The negotiations on th « guaranteed .prices for the ACP states for th » 1931 / S3
marketing ye ar , which should have entered into force on 1 July 1981 , have not
                                            i *                     -         «
so far been concluded because of the ACP States' rejection of the , Community' s             \
offer .        . 1 -   , '    '          _                                                 .
 At its meeting on 19 October, . 1981 , the Agriculture Council noted that the ..
 Commission intended to " continue the negotiations on the basis of the
present mandate and at the . same time to prepare alterhative proposals                  '
 which it would submit to the Council if the need arose ." -                        ;
 The " General Affairs " Council , at its meeting on' 26 October 1981 , agreed to
 examine new proposals of the Commission , if the actual negotiations do riot succeed®
 Since the ACP states have now once more refused the Community 's offer, the .
 present proposal is made in order to modify the decision the Council of 18 May 1981
 in such a way that the Commission , can negotiate the guaranteed prices by reference
 to the percentage increase in the Community 's white sugar intervention price for
'1981 / 82 while still remaining within the framework of the provisions of the
 Protocol on ACP sugar : and the Agreement with India . i ••
 Accordingly , the attached recommendation for a Council Decision seeks authority
 for , the Commission, to negotiate , on "a- new basis , on behalf of the Community , the      '
 guaranteed prices to be applied in the 1981 / 82 delivery period which began on
 1 July 1981 .                  . ' ■ . / " 'X     \          ' . -C-' ,   - y■        \
  Financial Implications            .                       .    ►   - 1 \
  This recommendation for a Decision does not involve implications other .than those
  derived from the application of the Protocol on ACP sugar and the agreement with'
  India already taken into consideration within'the framework of the management of
  the common organization of the sugar market .
  1 ) Doc . no 6536 / 1 / 81 Rev. 1 of 15 May 1981
 ---pagebreak---                                               RECOMMENDATION FOR A COUNCIL DECISION
     4
                 amending Council Decision of 18 May 1981 authorizing the Commission
                 to open negotiations with the ACP States referred to in Protocol ?
                 annexed to the second ACP-EEC Convention of Lome and with India
                 on the guaranteed prices for cane sugar to apply in the 'i 981 /
                                                     delivery period       v ■                    ~
                   ΙΜΙΙ ΙΙΙΙΙΙί – Ι·π1Γ·"'~·–         ~     ■ ■■                       ^^ΜΚ·–ΒΒ«Ι··Λ'.Ι·'     1 I " ■ - «- 1-
TH£ COUNCIL OF. THE EUROPEAN COMMUNITIES ,. '                                                       .
Having regard to the Treaty establishing the European* Econorale Community, .
and in particular Article 113 thereof ,                                                         •
Having regard to^the recommendation from the Commission,
                      '                                                            *
whereas 1t is advisable to modify Council Decision of 18 Kay 1981 concerning
negotiations with the ACP States referred to 1n Protocol 7 annexed to the
second ACP-EEC Convention of Lotr.6 and with India on the guaranteed prices
 'or cane sugar to apply in the 1981 / 82 delivery period ,
HAS DECIDED AS FOLLOWS :
                                 ••                                                                                K       :
                                                                                i       .           •           •
   V                      %                                                                                -                    - :   ;
                      '             -              '      Sole Article       .                              •
                                               .        . –              "       ■                      '*                          \
 P«ragraph 2 of Council Decision of 18 May 1981 is hereby replaced by the •
 fol lowing ; '                                                    :           .                                                      .•
 2 . The Co~ins1ss1 on shall conduct these negotiations in consultation with the
       representatives of the Member States and 1ri conformity with the following
       guidelines :                                              .     '
       - in respect of the 1981 / 82 delivery period the guaranteed prices referred
         to in paragraph 1 shall be' negot i ated in such a way thst the Increases
         do not exceed the percentage increase 1n the Community 's Intervention
         price for white sugar in 1981 / 82 by comparison with 1980 / 81 ,
       - the prices thus negotiated shall apply with effect from 1st July 1981 .
                                                       1,
                                                      /                            Done at Brussels ,
                                       •              v                              v For the Councl l
                                                                     '                  The President                 «