ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (82)73
Vol.1982/0028

Disclaimer
Conformément aurèglement (CEE, Euratom) n°354/83 duConseil du1erfévrier 1983
concernant l'ouverture aupublic desarchives historiques delaCommunauté économique
européenne etdelaCommunauté européenne del'énergie atomique (JOL43du15.2.1983,
p.1),telquemodifié par lerèglement (CE, Euratom) n°1700/2003 du22septembre 2003
(JOL243du27.9.2003, p.1),cedossier estouvert aupublic. Lecaséchéant, lesdocuments
classifiés présents dans cedossier ontétédéclassifiés conformément àl'article 5dudit
règlement.
Inaccordance with Council Regulation (EEC, Euratom) No354/83 of1February 1983
concerning theopening tothepublic ofthehistorical archives oftheEuropean Economic
Community andtheEuropean Atomic Energy Community (OJL43,15.2.1983, p.1),as
amended byRegulation (EC, Euratom) No1700/2003 of22September 2003 (OJL243,
27.9.2003, p.1),this fileisopen tothepublic. Where necessary, classified documents inthis
filehave been declassified inconformity with Article 5oftheaforementioned regulation.
InÜbereinstimmung mitderVerordnung (EWG, Euratom) Nr.354/83 desRates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft undderEuropäischen Atomgemeinschaft (ABI. L43vom 15.2.1983,
S.1),geändert durch dieVerordnung (EG, Euratom) Nr.1700/2003 vom 22.September 2003
(ABI. L243vom 27.9.2003, S.1),istdiese Datei derÖffentlichkeit zugänglich. Soweit
erforderlich, wurden dieVerschlusssachen indieser Datei inÜbereinstimmung mitArtikel 5
dergenannten Verordnung freigegeben.

KOMMISSIONEN FORDEEUROPÆISKE FÆLLESSKABER
KOM(82)73 endeligudg.
Bruxelles-denk.marts1982
wT7Anilti .
V;.-'•-r:ij\
r'\/Henstillingtil
RÅDETSAFGØRELSE
omretningslinjer forforhandlingerne medvissetredjelande om
rammeaftaler omflerårigleveringaflandbrugsprodukter
(forelagtRådetafKommissionen )
K0M(82)73endeligudg.

1.IKommissionens meddelelsetilRådetden22.juli19olomforhandling
aframmeaftaler omflerårigleveringaflandbrugsprodukter blevdet
oplyst,atKommissionen ,nårRådetsforskelligeinstanserhavdedrøftet
spørgsmålet ,villefremsætteforslagtildirektiver omindledningaf
forhandlinger medvisseansøgendetredjelande medudgangspunkt idisse
drøftelser ogdeoptrukneretningslinjer .
2.Vedlagteudkasttilafgørelse,somKommissionen forelæggerRådet,
tagersigtepåatbemyndigeKommissionentilmedbistandfraArtikel
113-udvalget atindledeforhandlinger medAlgeriet,Egypten,Marokkoog
Tunesienmedhenblikpåindgåelseaframmeaftaler omfleråriglevering
aflandbrugsprodukter .
3.Pbratlettedrøftelserne harKommissionen fundetdethensigtsmæssigt
atvedlæggedetteudkastreferatetafdeundersøgelsesmissioner ,der
harværetudsendttildeovennævnte lande.

BILAGI
HenstiLlingtiL
RÅBETSAFGØRELSE
omretningslinjer forforhandlingerne medvissetredjelande omrammeaftaler
omflerårigleveringaflandbrugsprodukter
RÅDETFORDEEUROPÆISKE FÆLLESSKABER HAR-
underhenvisningtiltraktaten omoprettelseafDeteuropæiskeøkonomiske
Fællesskab,
underhenvisningtilhenstillingfraKommissionen ,og
udfrafølgende "betragtninger :
Enrækketredjelandehargivetudtrykforderesinteresseiatleverancerne
aflandbrugsprodukter fraFællesskabets medlemsstater kanforudsiges;
aftaleromflerårigleveringaflandbrugsprodukter kanfremmeenharmonisk
udviklingiudførslenaflandbrugsprodukter fraDeteuropæiske økonomiske
Fællesskab ;
Kommissionen børderforbemyndigestilatindledeforhandlinger medhenblik
påindgåelseafsådanneaftalermeddeberørtelandepågrundlagafderet­
ningslinjer,dererangivetienstandardrammeaftale -
TRUFFETFØLGENDE AFGØRELSE :
Artikel1
Kommissionen bemyndigestilatføreforhandlinger medhenblikpåundertegnelse
aframmeaftaler omflerårigleveringaflandbrugsprodukter meddekompetente
myndighederiAlgeriet,Egypten,MarokkoagTunesien.
Artikel2
Kommissionenførerdisseforhandlinger isamrådmedArtikel113-udvalget på
grundlagafderetningslinjer ,dererangivetistandardrammeaftalen ibilaget.
PåRådetsvegne
Formand

BILAG
STANDARDRAMMEAFTALE OMFLERÅRIGLEVERINGAFLANDBRUGSPRODUKTER
RÅDETFORDEEUROPÆISKE FÆLLESSKABER pådeneneside,
REGERINGENFOR[navnetpådetpågældendeland/pådenandenside,
somønskeratydederesbidragtiludviklingenafhandelsforbindelserne og
etsnævreresamarbejdemellem[...navnetpådetpågældendeland..._/og
DeteuropæiskeøkonomiskeFællesskab ,
somønskeratbidragetilenøgetsikkerhedpåfødevareområdet i
[...navnetpådetpågældendeland..._/,
harbesluttetatindgåenrammeaftale omleveringaflandbrugsprodukter og
harmedhenblikherpåsombefuldmægtigede udpeget:/"•••navnenepåde
pågældendepersoner..._/,og
erblevetenigeomfølgendebestemmelser :
AFSNITI
ALMINDELIGE BESTEMMELSER
Artikel1
Pbrmåletmeddennerammeaftale ,herefterbenævnt"aftalen",eratsikre
[...navnetpådetpågældendeland...Jforsyningermedlandbrugsprodukter
ogDeteuropæiske økonomiskeFællesskabafsætningsmuligheder fordesamme
produkterpåordnede,forudsigelige oggensidigttilfredsstillende vilkår.
Artikel2
Demyndigheder ,dererbemyndigettilatindgådeforaftalensforvaltning
fornødneforpligtelser er:
-forDeteuropæiskeøkonomiskeFællesskab,Kommissionen forDeeuropæiske
Fællesskaber
./•

-for/...navnetpådetpågældendeland...//"betegnelsefordetpågældende
organ7.
Artikel3
Denneaftaleomfatter£...angivelseafprodukter...7.
Artikel4
1.Denneaftaleindebærerpådeifølgendeartiklerfastsattevilkårfor­
pligtelse
-forDeteuropæiskeøkonomiskeFællesskabtilatleverevissemængder
..angivelseafprodukter...Jtil/...navnetpådetpågældende
land...y
-for£...navnetpådetpågældendeland...Jtilatindføredesamme
produktmængder fraDeteuropæiske økonomiskeFællesskab .
2.Idenneaftale
-indebærerudtrykket"forpligtelsetilatlevere",atKommissionen for
Deeuropæiske økonomiskeFællesskaber forpligtersigtilattræffe
allefornødnebestemmelser ,somerforenelige medfællesskabsbestemmel ­
serne,foratsikre,atf...angivelseafprodukter...]kanstillestil
rådighedpådeidenneaftalefastsattevilkår;
-indebærerudtrykket"forpligtelsetilatindføre",at/"...navnetpådet
pågældendeland...Jforpligtersigtilattræffeallefornødnebestem­
melserforatsikreindførselaf/"...angivelseafprodukter...Jfra
DeteuropæiskeøkonomiskeFællesskabpådeidenneaftalefastsatte
vilkår.
Artikel5
Detransaktioner ,derskalgennemføres pådevilkår,somfølgerafdenafDet
europæiskeøkonomiskeFællesskabindgåedeforpligtelse ,jf.denneaftales
artikel4»gennemføresafprivateerhvervsdrivende .

Artikel6
1.Når/•••navnetpådetpågældendeland..iværksætterprocedurernefor
indførselaf[...angivelseafprodukter...JmedoprindelseiFælles­
skabet,træfferdetalleegnedeforanstaltninger foratsikre,atde
erhvervsdrivende iDeteuropæiske økonomiskeFællesskabikkeforskel-
behandles.
2.Detforpligtersigtilatsørgefor,attildelingafsøtransport .ikkeer
tilskadeforenfriogrimeligkonkurrence (l).
Artikel7
KommissionenforDeeuropæiskeFællesskaber og/...navnetpådetpågældende
land...Jforpligtersigtilatunderrettehinandenomdebestemmelserog
foranstaltninger ,somvedtagesmedhenblikpåiværksættelsen oggennemførel­
senafdeihenholdtildenneaftaleindgåedeforpligtelser .
Artikel8
1.Dernedsættesenblandetkomite,somskalovervåge,atdenneaftale
gennemføres korrekt.
2.DenblandedeKomitébestårafrepræsentanter forKommissionen forDe
europæiskeFællesskaber ogrepræsentanter for/T..navnetpådetpå­
gældendeland...J.
3«DenblandedeKomitéholdermødeénganghverfjerdemånedpåendato
ogetstedefterfællesaftale.Detholderdesudenmødehvergang,
dererbehovfordet,ogefteranmodningfraenafdekontraherende
parteridenneaftale.
(l)Denneklausuleridentiskmedden,derfindesidemedvisselande
indgåedelangtidsaftaler ogikonventionen omfødevarehjælp .

-6-
AFSNITII
SÆRLIGEBESTEMMELSER
Artikel9
1.Demængder£...angivelseafprodukter...J,somf\..navnetpå
pågældendeland•••/forpligtersigtilatindføre,ogsomDet
europæiskeøkonomiskeFællesskabforpligtersigtilatleverei
afhvertlandbrugsproduktionsår pådeidenneaftalesartikel4
sattevilkår,udgørfølgendemængder:
-blødhvede(ellertilsvarende mængdehvedemel):
mindst tons
oghøjst tons
-grynafhårdhvede:
mindst tons
oghøjst tons
-byg:
mindst tons
oghøjst tons
-osv.
2.Detidenneaftaleomhandledelandbrugsproduktionsår begynderfor
angivelseafproduktet...Jden ogslutter
den detfølgendeår,for[...angivelseafdet
andetprodukt...7fraden tilden
Artikel10
Detafdenneaftaleomhandlede/•••angivelseafproduktet...Jskalværei
overensstemmelse meddekvaliteterogspecificationer ,dersædvanligvis an­
vendesitransaktioner mellemDeteuropæiske økonomiskeFællesskabog
/I..navnetpådetpågældendeland...1,
Artikel11
Cirkatomånederførhvertproduktionsårs begyndelseholderDenblandedeKomite
mødeforattræffeafgørelseomdenøjagtigemængder,derskalleveresogind­
føresiløbetafdetpågældendelandbrugsproduktionsår ihenholdtildenne
aftale,ogomhvoroftederskalforetagesopkøbidetpågældendeproduktionsår .
•Adet
labet
fast-

Artikel12
Såfremtdersomfølgeafusædvanlige omstændigheder erstoremængdertil
rådighedi/•••navnetpådetpågældendelandellerutilstrækkelige
mængderiFællesskabet ,holderDenblandedeKomitémødeforattræffe
afgørelse omændringafdemængder,dererfastsatiartikel9»stk.1.
Artikel13
1./•••navnetpådetpågældendeland...JogDeeuropæiskeøkonomiske
Fællesskaber træfferhverforsitvedkommendealleegnedeforanstalt­
ningerforatsikre,attransaktionerne gennemførestilpriser,som
ståriforholdtildepåverdensmarkedet anvendteprisereller
noteringer.
2.Detoparteridenneaftaleundersøgermulighederne for,atFællesskab-
betsmedlemsstater ellerderesbefuldmægtigede kanfastsættekredit-
vilkårenefordekontrakter,somindgåsimedførafdenneaftale.
AFSNITIII
AFSLUTTENDE BESTEMMELSER
Artikel14
Denneaftaleergyldigienperiodepåtreproduktionsår .Dennegyldigheds-
periodekanstiltiendeforlængesmedennyperiodepåtreår.
Artikel15
Denneaftaletræderikraftdenførstedagidetlandbrugsproduktionsår ,
somfølgerefterdet,hvor^OfficeJogKommissionenforDe
europæiskeFællesskaber harunderrettet hinandenomgennemførelsen afde
medhenblikherpåfornødneprocedurer.

Artikel16
Denneaftaleeraffattetitoeksemplarer påetafFællesskabets officielle
sprogogpå/detpågældendetredjelandsofficiellesprog7,ogdetotekster
harsammegyldighed.
Hr. påKommissionen for
DeeuropæiskeFællesskabers vegne
Hr. for
Udfærdigeti .den

-9-
REFERATAFUMERSØOSLSESMISSIONERNE TIL
ALGERIET,EGYPTEN.MAROKKOOGTUNESIEU

_40~
REPORT
CONCERNING EXPLORATORY TALKSWITHTHEALGERIAN
ANDEGYPTIAN AUTHORITIES REGARDING AFRAMEWORK AGREEMENT
FORTHEMULTIANNUALSUPPLY OFAGRICULTURAL PRODUCTS
I.MISSIONTOALGIERS
1.TworoundsoftalkswereheldinAlgiersfrom4to6May,one
with,andundertheauspicesof,theMinistryofTrade,andthe
otherwiththeMinistryofAgriculture andtheAgrarianRevolu­
tion(MARA).Theheads(anddeputyheads)ofthestatecorpora­
tionsorpublicboards.

actingonbehalfofoneorotherofthesetwoMinistries (1)indirecting
supplieswerepresentateachsetoftalks.Also,withtheagreementof
thePresidency,abriefingsessionwiththeMemberStates*representati­
veswasorganizedbytheCommissionDelegationinAlgiers,sincethe
Algerianauthorities hadsentformalanddetailedrequestsdirectto
certainembassies -attheendofFebruary,concerningtheconclusionof
long-termagreements.
2.Onagenerallevel'thegreatimportanceattachedbytheAlgerianautho­
ritiestotherapidconclusionofaframeworkagreementbetweenthe
CommunityandAlgeriaforthemultiannual supplyofagricultural products
shouldbestressed.Thefactthattheyhaveplacedsuchstrongemphasis
onthistiesinwithpoliticalandalsoeconomicmotiveswhichwerevery
clearlystatedineachroundofdiscussions .
• TheAlgeriansconsidertheCommissionasaspecial
discussionpartner,sincethetalksaremadeeasierfromtheirpoint
ofviewbytheabsence,whendealingwiththeEuropeanEconomicCom­
munityassuch,ofotherconsiderations orextrapolated politicaland
psychological conflictswhichstopanyfurtherprogressatacertain
stageingovernment-to-governmentrelations.Algeriaconsidersit
necessarytostrengthentheAssociation AgreementwiththeEECby
meansofanewapproachtofoodsecurity (marketsandsupplies).
-§£2D°[Di£_!I!2iiyes:Algeriahasrequirements whichbecomegreaterevery
year,particularly asaresultofpopulationgrowth(550000more
mouthstofeedeveryyear),theriseinthestandardofliving,and
theveryslowgrowthrateofagricultural production;theCommunity
isnearAlgeria,whichreducesthecostsoftransporting supplies
accordingly,andonlytheCommunitycanprovidetheveryvariedrange
<pfproductswhichthiscountrywithapopulationofalmost20million
requires; .
(1)25§^I£ATION_OF_IMPORTS_INTO_ALGERIA :TheGovernmenthasgiventhemonopoly
forprocurement fromabroadtonationalcorporations orboards,someofwhich
comeundertheMinistryofTradewhileotherscomeundertheMinistryof
Agriculture (MARA).ThosecomingunderTradearethe0NAC0(OfficeNational
deCommercialisation ),responsible mainlyformilkproductsfordirectconsump
tion,andtheSNNGA(SocieteNationaledesNouvellesGaleriesAlgeriennes),
responsibleforallsuppliesforthelargestores.ThosecomingunderAgri­
culturearetheOAIC(OfficeAlgerieninterprofessionnel desCereales)which
isresponsibleforwheatandbarley,theSNSEMPAC(SocieteNationaledes
Semouleries,Meuneries,Fabriquesdepatesalimentaires etCouscoys)respon­
sibleforpurchasingmeal,flourandpasta,theONAB(OfficeNationaldes
AlimentsduBetail)andONALAIT(OfficeNationalduLaitetProduitsLaitiers)
responsiblefordomesticproductionandthereconstitution ofmilk.

Algeriaisalsoanxioustoembarkuponaprogrammeforthedevelopmentof
agricultural production (poultry-raising anddairyfarming,oneofthese
tobefinancedbytheEECunderthe1976FinancialProtocol)andonlythe
Communitycanprovideeffectivehelpandsupportin.allsectors.
Withregardtothegeneralscopeandformofalong-termagreement,the
Commissionrepresentatives notedthattheapproachsuggestedinthedraft
Communication totheCouncil(C0MC8D75)corresponded "almostperfectly"
tothatenvisagedbytheAlgerianauthorities .
(i)Thetypeofagreementbeingconsidered byAlgeriawouldbeaframe­
workagreement (oraframeworkconvention)providinggeneralcriteria
forthenegotiation andconclusionofcommercialcontractsbetween
Communityoperatorsandthecorporations,boardsororganizations
whichholdthepurchasingmonopolyinAlgeria;
(ii)Theframeworkagreementorframeworkconventionwouldbeconcluded
betweenaCommunityauthorityandanAlgerianministerialauthority.
Twoadditionalremarksshouldbemadeonthissubject:theAlgerians
areawareofthefactthatwheretheexportofaCommunityagricultu­
ralproductentailsthegrantingofarefund,aframeworkagreement
formultiannualsuppliesinvolvesanundertaking onthepartofthe
Communityassuch,astheyhavelearntfromexperiencethataCommu­
nityoperatororevenaMemberStatealwayswaitsforaCommission
refunddecisionbeforeacting.Theyhavealsoleftopenthematter
ofwhetheroneortwoframeworkagreementswouldhavetobeconcluded,
inview.ofthefactthat,eventhoughtheMinistryofTrade'sDirec-
torate-General forCoordination andSupervision hasahorizontalrole
andisresponsibleforallexternalsupplies,certainsboardsorstate
corporations comeUndertheMinistryofAgriculture .
(iii)Theprovisionstobeincludedintheframeworkagreementshould,in
theopinionofourAlgerianpartners,beflexibleandstraightforward ,
sothattheycan,ifnecessary,beadaptedascircumstances require
andalsosothattradecanbeconductedfreely,butthecommitments
madebythetwosidesshouldnotbemerelynominalorinsufficiently
binding.

.Onthematteroftheactualcontentoftheframeworkagreement,thereis
againastrikingsimilarityofapproachbetweenwhatwasproposedtothe
Commissionon19FebruaryandtheAlgerians'stancenow.
Theframeworkagreementwouldcoverthefollowing :theperiodofapplica­
tion(athree-yearperiodhasbeenmentioned,butarequesthasalsobeen
madeforlinkagewiththepresentfive-yearplan);therangeofproducts
covered;thequantitiesconcerned(averymarkedpreferencehasbeenstated
foraquantitybracket,theactualsupplyandpurchasefiguresforagiven
yearbeingfixedbycommonaccordbeforethebeginningofthatyearinthe
lightoftherespectivesituationsofthecontractingparties);thewording
oftheundertakings givenbythetwosides,includingthedescription of
theadministrative measuresadoptedtoensuretheagreementisimplemented
throughnormaltradingchannels;thetermsofreference-withparticular
regardtoprices-forthecommercialdeliveryorpurchasecontractsbetween
CommunityoperatorsandtheAlgerianstatecorporations ;lastlytheadminis­
trativemachinery (fortheannualnegotiation ofquantities,operationof
thearrangements,etc.).
TheAlgerianauthoritiesalsoputforwardcertainpointswhichitshould,
intheiropinion,bepossibletoincludeintheframeworkagreement.Assu­
rancesshouldthusbegiven,withproperbacking,thatproductswhoseavai­
labilityisguaranteedundertheframeworkagreementreallyareofCommunity
originandthatnosingleoperatororMemberStatecanartificially esta­
blishadefactomonopoly("thereisnosingleautomaticchannel"),asthis
wouldpreventAlgeriafromstabilizingitspurchaseflowsonthebasisof
otherexternalordomesticrequirements (equilibrium initstradebalance
withaparticularcountry,etc.).TheAlgerianauthoritiesalsoconsider
thatifsuchaframeworkagreementwereconcluded,ajointefforttoimprove
thequalityoftheproductssoldbytheEECshouldbeundertaken-hencethe
needtoincludequalitative termsofreferencecorresponding,forexample,
tothestandardsoftheAlgerianMinistryofHealth-andthatthesyste­
maticuseoflettersofcreditbyCommunityoperators (signofmistrust)
shouldbeabandonedinpayingforsuppliesundertheAgreement.
Averydetaileddiscussionwasheldonthematterofprices.Variouspoints
shouldbesingledout.Firstly,Algeriaconsidersthat,inthelightof
thetwosides,andaboveallinviewofthefactthat,"forexample,the

-
EECplaysonlyanindirectroleinpriceformationthroughtherefund
mechanism,fixedpurchasingorsellingpricesorevenapricebracket
cannotbeestablishedintheframeworkagreement.Itnotes,however,
thattheleveloftherefundanditsdegreeofcontinuityduringamai–
ketingyeararedeterminingfactorsfortheconclusionofcontractsby
operators.TheAlgerianauthorities havevoicedanumberofcriticisms
inthisrespectconcerningthepresentsystemofadministering refunds,
pointingtoitssomewhatarbitrarynature,whichpreventstheAlgerian
authorities frombeingabletorelyontheCommunityatalltimes;in
theiropinion,a"preferential difference"shouldbeestablished between
therulesgoverningtherefundapplicabletosuppliesundertheAgreement
andtherulesrelatingtosuppliesnotcoveredbytheagreement.Inother
words,itdoesnotseemtobeamatteroffixingapreferential refund
levelbutoflayingdownspecialrulesforthefixingoftherefund
(advancefixing-durationoftheadvancefixingarrangement,termsof
referenceoftheworldpriceusedtocalculatetherefund)foronlythose
quantitiescoveredbytheframeworkagreement.
TheAlgerianauthorities haveraisedthematterofthefinancingfacilities
grantedtoAlgeriainoneformoranotherbyothertradingpartners:export
creditgrantedbySwedenunderthelong-termwheatagreement,virtually
freeinstallation-1'/.interestover50years-ofintakesilosunderthe
long-termdurumwheatandbarleyagreementwithCanada,deferredpayment
undertheredmeatsupplyagreementsconcludedwithArgentinaandAustralia,
etc.TheyhaveexpressedthewishthattheEEC,which,asexplained,
doesnotyethaveanexportcreditmechanism,shouldfollowupanyopera­
tionsundertakenbytheMemberStatesandorfinancetheinstallation in
Algeriaofintakecapacityforsomeoftheproductssupplied(refrigeration
facilities,silos,warehouses,portinfrastructure ,etc.).
6.Asregardsproductsandquantities,theAlgerianshavesuppliedalistof
whattheyestimatetobetheirimportrequirements (seeAnnexI),speci­
fyingthatthisdidnotmeanthatalltheseproductsandquantitiesshould
comesolelyfromtheCommunityandthateventhequantitieswhichcould
comefromtheCommunityshouldbecoveredbytheframeworkagreementon
multiannualsupplies;thislastremarktiesinwiththeideasexpressed
inCOM(81)75(seeparagraph 5.(ii).

–yj-
Theystressedthat,whennegotiations wereinitiated,theirauthorities
wouldmakepreciseproposalsconcerningtherangeofproductsandthe
quantitiestobecoveredbytheframeworkagreement.
Theyalsodrewattentiontothefactthattherewere,strictlyspeaking,
threecategoriesofproductswhichcouldcomeunderaframeworkagreement :
-agricultural commodities :wheat,sugar,milkproductsforreconstitution ;
-agricultural productsfordirectconsumption :redmeat,butter,flour,
meal,rice,pasta,eggsfordirectconsumption ;
-productsintendedfortheprogrammeforthedevelopment ofagricultural
production :eggsforhatching,day-oldchicks,dairycows,compound
feedingstuffs .
Inthecaseofthelastcategory,theMinistryofTradeandtheMinistryof
Agriculturestressedthisrequestandtheparticularurgencyofmakinga
startonmeetingit,evenifonlyonaverysmallscale(poultryfarming),
sincethiswouldprovideanadditionalsourceofproductsforoneofthe
projectsfinancedundertheEEC-Algeria FinancialProtocolandwouldbeof
greatimportancetotheimplementation ofthatproject.
7.Conelusions:AlgeriaisobviouslyanxioustoconcludewiththeCommunitya
frameworkagreementforthemultiannual supplyofagricultural products,
andtodosoveryshortly.TheAlgerianauthoritiesexpressedinthisres­
pecttheirheartfelt wishthattheCommission (andtheCouncil)should
passveryquicklyfromthisexploratory stagetoactualnegotiations,and
theyhopedthat1982couldbethefirstyearofapplication ofaframework
agreement.TheCommunitycanmeetthisrequestwithoutcausinganincrease
inCommunityagricultural production (theproductsandquantitiesrequested
arelessthanpresentsupplies),orexcessiveexpenditure onrefunds,or
adverseeffectsonothercountries'trade(supplementary orsolesourceof
supply).
Itisobvious,however,thattherealsignificance ofsuchaframework
agreementforthesupplyofagricultural productsgoesfarbeyondthetrade
sphere,foritwouldnotonlyprovidesuppliesfordirectconsumption but
alsoensureregularsuppliesofrawmaterialsforthefoodprocessingin­
dustryandofagricultural inputsforadevelopingfarmsector.Theim­
pressionobtainedwasthatAlgeriathusattributesdeeppoliticalsignifi­
cancetoit,thatitcouldhaveeconomicrepercussions onsectorsother
thanagriculture,andthatsuchamutualcommitmentwouldpavethewayfor
anewtypeofrelationsbetweenAlgeriaandtheEECanditsMemberStates
inthecontextofthenewinternational economicorder.

ANNEX I
ESTIMATED REQUIREMENTS FOR ANNUAL IMPORTS OFAGRICULTURAL PRODUCTS
INTO ALGERIA
MILK PRODUCTS
Milk forinfant feeding . 15QOO -20000 t
Flour forinfant feeding 2000 - 3000 t
Evaporated and instant milk 100000 -120000 t
Butter (not more than
3months old ) 25000 -30000 t
Cheese forprocessing 7000 -10000 t
Cheese fordirect consumption :
Emmental . 3000 - 4000 t
Gouda -type 4000 - 7000 t
Butteroil 10000 t
CEREALS
Wheat -flour and meal
Barley and malt
Ricetobespecified bytheMARA and 01AC
OTHER PRODUCTS
Seed potatoes
Redmeat (mutton ,beef )
Eggs fordirect consumption
Powdered eggs
Animal fat
Eggs forhatching
Day-old chicks
Dairy cows
Cattle onthe hoof
Sugar
Point -of-^lay pullets
Colza oil
Colza seed10000 t
20000 -30000 t
1000 000 000 units
100 - 500 t
40000 t
100 000 000 -150 000 000 units
1000 000 -2000 000 units
2000 head
2000 -3000 head
500 000 t
100 000 -200 000 units
200 000 t
70000 -90000 t

II.MISSIONTOCAIRO
8.Thegeneralobjectivewhich,intheviewoftheEgyptianauthorities,
shouldguideanyframeworkagreementconcludedbetweentheEECand
Egyptonthemutiannualsupplyofagricultural productsissomewhat
differentfromthesituationinthecaseofAlgeria.Itshouldbe
basedonthenationalfoodstrategywhichPresidentSadathasmadethe
cornerstone ofhisinternalpolicyandwhichaimstosatisfythefood
requirements ofapopulationgrowingattherateofalmost100000per
monthandwhosestandardoflivingisimprovingeveryyear(whencethe
growingneedforhighproteinproductssuchasmeatandmilkproducts).
This"foodstrategypolicy"aspectwasemphasizedforcefullyateachof
themeetingswhichtheCommissionrepresentatives hadwiththeministers
responsibleforsupply,financialaffairs,economicaffairsandagricul­
tureduringtheirvisittoCairofrom7to9June.Egyptbasesthis
policypartlyontheexpansionofdomesticagricultural production,which
requiresexternalfinancialandtechnicalsupport(bilateral,plurilateral
ormultilateral),andpartlyontheconclusionofsupplyagreementswith
othercountries.TheCommissionrepresentatives wereaccordinglytnfor-
medofthefieedforanoverallcooperation agreement,thusconfirming
theimpressions formedbyMrCheyssonduringhisofficialvisittoEgypt
from27Octoberto2November1980.
9.Onthemorespecificquestionofapossiblemultiannual supplyagreement,
whereasinAlgeriatheCommunityisable,itseems,toplaytheleading
part,inEgyptitfindsthatothercountriesarealreadyfulfillingthat
role.Inparticular,theUnitedStatesexportstoEgyptintheregion
oft750millionofagricultural products,thusaccountingforovera
thirdofitsagricultural imports,inadditiontowhichAustraliaand
Argentinahaveconcludedlong-termagreementswithEgypt(oncerealsand
beefandvealrespectively).
./...

TheEgyptianministersstressedtheneed,however,todiversifytheir
sourcesofsupplyand,inthiscontext,describedtherolewhichthey
envisagefortheCommunitywhichexportstoEgyptamere2375million
ofagricultural products (i.e.around'halftheUnitedStates*exports).
TheministersconsideredthattheCommunitypossessed animmenseadvan­
tageinbeingabletoofferawiderangeofthefoodproductswhich i
Egyptrequires.
10.Anothernotabledifference comparedwithAlgeria,atleastatthisstage,
concernsthetermsunderwhichtransactions arecarriedout;creditsales
seemtohavereachedunprecedented proportions inEgypt.
Accordingtoinformation providedbytheMinisterforEconomicAffairs,
DrNourElDine(confirmed byaUSDAreport),approximately 70'/.ofUS
agricultural exportstoEgyptweresoldin1980throughUSGfinancing
programmes PL480andtheCommodityImportProgram.Egyptis,forthe
USA,theprincipalrecipientofPL480andallcerealssold(athirdof
PL480toEgypt)arecoveredbythisaid(i.e.1.6milliontofwheat
andflourand100000tofmaize).Thetermsoftheagreementarethose
normallyapplicable (downpayment5thebalancepayablein31annui­
ties,tenyearsafterthefinaldelivery,interestrate2%risingto3%).
TheCommodityImportProgram(2129millionin1986)coversthegreater
partofotherUSagricultural exportstoEgypt:lard,maize,tobacco,
poultrymeat andlentils.
Australia,whichon5Februaryannouncedthesigningofalong-termagree­
ment(lastingfiveyears,the1977agreementhavinglastedthreeyears)
foranannualsupplyofonemilliontofwheat(possibly1.5milliont
intheeventofagoodAustralian harvest),isgrantingEgyptcreditfa­
cilities(forthreeyearswithinterestnegotiableatcommercialratesin
atrade-offwiththepriceformula).Inadditiontothiscontractthere
isafoodaidschemeinvolving 20000to25000tofcereals.
France,attheendofApril,grantedEgyptaloanAvailableuntil1Au­
gust1982)toimportFrenchagricultural productsuptoavalueof
FF1500million(i.e.approximately 2270million).Anearlierloan
ofthesametypewasworthFF930millionbutallowedCairotobuyonly
wheatandflour;thenewagreementofApril1981permitstheadditional
purchaseofsugar,milkproducts,meat,livecattle,eggsandoils.

Undoubtedly,othercountriesaresimilarlyinvolvedthoughnottosuch
anobviousextent.Egypthasalwaysattachedmajorimportancetothe
"specialconditionsofsale"aspectandalong-termagreementwiththat
countrycannotignoreit.
11.InrelationtoAlgeria,thefinaldifferenceconcernsthearrangements -
formarketingEgyptianimports.Accordingtoinformation providedby
DrFouadHussein,MinisterforFinancialAffairs,athirdoft^egczzs
enteringthecountryareimportedbyprivatecompaniesdirect(under
monetaryauthorizations grantedbytheCentralBank).Thisfreetrade
isincreasingalongwiththeincreaseindemandforgoods(notcovered
byspecialconditionsofsalestipulated byexportingcountries)and
theirgreaterdiversification (linkedtotheimprovingstandardofli­
ving).ThereareinEgyptnorulesrequiringallimportstobecovered
bylong-termagreements,i.e.essentiallybilateralagreements between
governments .Afairlysubstantial shareofEgypt'sEECexportswould
notbecovered,therefore,byaframeworkagreementandprivateimports
wouldcontinue.
12.MrAhmedNouh,theMinisterforSupply,whohadalongmeetingwiththe
Commissionrepresentatives andwasaccompanied byMrDarwish,Deputy
MinisterandChairmanoftheGeneralAuthorityforSupplyCommodities
(GASC),thecentralimportagency,answereddetailedquestionsandargu­
mentsbyconfirmingthattheGovernment wasinterestedinenteringinto
negotiations withaviewtoconcludingbetweentheEECandEgyptan
agreementonthemultilateral supplyofagricultural products.
(i)Thegeneralpatternofsuchaframeworkagreementcould,according
totheEgyptians,bevirtuallyidenticaltothatenvisagedinthe
communication totheCommissionof19February1981(C0M(81)75);
Algeriaisthinkingalongthesamelines,asindicatedabove.
(ii)Withregardtotherangeofproductswhichcouldbecovered,the
MinisterforSupplymentioned :
-cereals:wheat,WesternWhitetypepreferablyrequired (EECstan­
dardwheatisnotfarbehind(1),wheatflour,maize(notcur­
rentlysuppliedbytheEEC,whichisanetimporter);
(1)Thecurrentquestionofa220
wheatcomparedwithEECwheat-
commercial terms-hasnotbeen-30/tpreference premiumforthistype
forwhichthereisnojustification in
clarified .of
purely

-Zo-
~npi^products :butter,butteroil,milkpowder,certaintypes
6fcheese(gouda,processedcheeses,blue);
-sugar:intheeyesofthepopulationthisproductisthekey
totheGovernment'ssuccessinthemanangementofitsfoodpo­
licy,thoughaccountshouldbetakenofEgypt'smembershipof
theInternational AgreementandtheprovisionsofthatAgreement
I
concerningrestrictions onpurchasesfromnon-members (including
theEEC,whichnevertheless soldaround100000tonaveragein
1979and1980);
-vegetableoils:sunflowerorcottonseedoiI;
-eggs;
-meat:redmeat(beefandsheepmeat),bone-inorboneless,live
animalsforslaughterorstock-building ,cornedbeef,poultry-
meatandday-oldchicks;
-fish:filletsandpreservedfish(mainlymackerel).
(iii)Noquantitywasmentioned.TheMinisterforSupplyrefusedto
giveanydetailsonthegroundsthatthepricesortermsofpayment
offeredbytheEECwoulddeterminewhatEgyptwouldaskforduring
thenegotiations .Heexpressedinterestinreceivingofficialof­
fersfromtheEECregardingquantitiesinduecourse.
(iv)Thequestionofpricesandpriceconditions wasthesubjectofa
longandwide-ranging exchangeofviews.
First,theEgyptianauthoritiesclearlyhadanerroneousviewof
therespectiveresponsibilities oftheCommission,theMemberStates
andCommunityoperatorsineachexportoperation;theCommunityas
suchwasseenashavingmorepowerormoreresources (credit)than
itinfacthasatpresent,andcertainoperatorsorMemberStates
hadomittedtopointouttotheiroppositenumbersthattherefund,
whichwasnecessaryforeachoperation,wasaCommunityinstrument.
./...

Secondly,itisclearthatbeingaccustomedtotradingon
thebasisofspecialconditionsofsale,theEgyptiansdo
notwishtocontemplate aframeworkagreementcontaining no
referencetosomesortof"preference",atleastformajor
products.Thetermsofpayment(credit)werediscussed,but
alsoalternative arrangements involvingalinkwithfoodaid.
Solutionstothesequestionsarefeasibleandincludethe
possibility ofaparallelarrangement involvingbothaframe­
workagreementandfoodaid,theincorporation intheframe­
workagreementofnationalcreditpackagesforthepurchase
byEgyptoffoodstuffs,orarrangements forfinancingdevelop­
mentprojects.ItappearsthatEgypthasrealizedthata
higherrefund(thepreferential priceidea)isnotnecessarily
reflectedinthepriceschargedbyCommunityoperators.