25.2.74 OfficialJournaloftheEuropeanCommunities NoL53/15
AGREEMENT
betweentheEuropeanEconomicCommunityandtheRepublicofPeruonthesupply
ofcommonwheatasfoodaid
THECOUNCILOFTHEEUROPEANCOMMUNITIES ,
ontheonepart,
THEGOVERNMENT OFTHEREPUBLICOFPERU,
ontheotherpart,
HAVEDECIDEDtoconcludethisAgreementandtothisendhavedesignatedastheir
Plenipotentiaries :
THECOUNCILOFTHEEUROPEAN COMMUNITIES :
THEGOVERNMENT OFTHEREPUBLIC OFPERU:
WHOHAVEAGREEDASFOLLOWS :
ArticleI Itundertakestoexercisethegreatestpossiblecare
toensurethatthetenderingarrangements forthe
transportbyseashallnotbeprejudicialtothefree
playoffaircompetition .Anyproblemsarisingin
thisconnectionshallbethesubjectofconsultations
underArticleIX.AspartofitsFoodAidProgramme (Cereals)for
1971/72,theEuropeanEconomicCommunity ,here­
inafterreferredtoasthe'Community',shallsupply
theRepublicofPeru,hereinafterreferredtoasthe
'recipientcountry',bywayofgift,with13500
metrictonsofcommonwheat. ArticleV
ArticleII
DeliverieswillbemadeinbulkfobtoCommunity
ports.
ArticleIIITherecipientcountryundertakestousetheproduct
receivedasaidforpurposesofconsumptionandto
apply,forthesaleoftheproductonitsmarket,the
pricesnormallychargedonthatmarketfor
productsofcomparablequality.
Theproceedsfromthissale,lessthecostsofsea
transport,ofinsuranceandthenormalcostof
sellingtheproductontherecipientcountry's
market,shallbepaidintoaspecialaccountatthe
CentralBankofthatcountryandallocatedtothe
financingofoneormoredevelopment schemes
proposedbytherecipientcountryandapprovedby
theCommunity .Theobligationsandresponsibilities oftheCommu­
nityandoftherecipientcountryrelatinginparti­
culartodeliveryandthetakingofdeliveryrespec­
tivelyaredefinedintheAnnex,whichformsaninte­
gralpartofthisAgreement .
ArticleIV
ArtieeVITherecipientcountryundertakestomakeallneces­
saryarrangements forthetransportandinsurance
oftheproductfromportsofshipmenttoplacesof
destination .TheContractingPartiesundertaketoimplement
thisAgreementinsuchawayastoavoidanypreju­

NoL53/16 OfficialJournaloftheEuropeanCommunities 25.2.74
dicetothenormalstructureofdomesticproduction
andinternationaltrade.Tothisendtheyshalltake
anymeasuresrequiredtoensurethataidsupplies
areinadditionto,anddonotreplace,commercial
transactionswhichmightreasonablybeexpectedin
theabsenceofsuchsupplies.Inparticular,therecip­
ientcountryundertakestoimportcommercially
fromwhateversourcebetween1July1972and30
June1973aminimumquantityof600000metric
tonsofcommonwheatoritsequivalentinflourof
commonwheat.1.notlaterthan30daysaftertheunloadingof
eachcargo:portanddateofarrivalof
thevessel;nature,quantityandqualityofthe
productsunloaded;dateonwhichunloading
wascompleted ;
2.everythreemonthsuntilthequantitiesreceived
asaidhavebeenfullyused:quantitiessold,
howtheyhavebeensold,sellingprices;normal
sellingcostsontherecipientcountry'smarket;
3.on15Januaryeveryyearuntilthespecial
accounthasbeenfullyused:
(a)stateofthisaccount(depositsandwith­
drawals)on31Decemberofthepreceding
year;
(b)progressachievedintheprojectorprojects,
withanindicationofthetotalamountof
financingcarriedoutatthatstage.ArticleVII
Therecipientcountryshalltakeallappropriate
measurestoprevent :
—there-exportoftheproductreceivedasaidand
ofproductsandby-productsresultingfromsuch
supplies;
—theexport,commercially orotherwise,within
sixmonthsofthelastdelivery,eitheroflocal
produceofthesamenatureasthatreceivedas
aidorofanyproductsorby-productsresulting
fromit.ArticleIX
Attherequestofeitherofthem,theContracting
Partiesshallconsulteachotheronanyquestions
concerningtheimplementation ofthisAgreement .
ArtieeVIII
ArticleXTherecipientcountryundertakestoinformthe
Communityofthemodeofimplementation ofthis
Agreement .TothisenditshallprovidetheCommis­
sionoftheEuropeanCommunities withthe
followinginformation :ThisAgreementshallbedrawnupinduplicatein
theDanish,Dutch,English,French,German,Italian
andSpanishlanguages,eachofthesetextsbeing
authentic .
ANNEX
ProvisionslaiddowninArticleIIIoftheAgreement
Article1 authorizedagentoftheCommunityreferredtoin
Article9.
Article2
TheCommunityshallnotifytherecipientcountryin
goodtimeoftheportorportsofshipment,thequanti­
tiestobedeliveredateachport,theperiodwithinwhich
loadingmustbegin,andthedailyloadingrate.Deliveryshallbeeffectedandallriskshallpassfromthe
Communitytotherecipientcountryatthemomentat
whichthegoodshavebeenplacedintheship'sholdat
theportofshipment .
Therecipientcountryshallbearallcostssubsequentto
deliveryofthegoods,includingcostsofstowageand,
whereappropriate,oftrimmingandbagging.
Anydemurrageordispatchmoneyattheportofship­
mentshallbeachargeonorforthebenefitofthe
Communityandshallbedeterminedbeforethevessel
sails.Theratesanddetailedarrangements relating
theretolaiddowninthecontractbetweenthecountryof
destinationandthecarriermusthaveagreeduponin
advancebytheagentoftherecipientcountryandtheArticle3
TheCommunitymustbepreparedtoloadthegoodson
thedateresultingfromtheinstructionsinArticle8,
whereonthevesselshouldbereadyforloading.

25.2.74 OfficialJournaloftheEuropeanCommunities NoL5317
Article4
Ondeliveryofthegoods,atoleranceof5°/olessthan
thequantitytobesuppliedinaccordancewithArticleI
oftheAgreementispermitted.
Article5Inthisevent,untilthedateofloadingofthebalanceor
untiltherecipientcountrygivesnoticeinwritingthatit
givesupthebalance,thegoodsshallbeheldatthe
expense,riskandperiloftherecipientcountry.
TherecipientcountrymustnotifytheCommunitywithin
amaximumperiodof30cleardaysfromthebeginning
ofloadingoftheshipmenttowhichthegoodsshould
havebelonged,ofthedateonwhichloadingofthe
balanceisduetobeginorofitsrenunciationofthe
balance.
Ifthisobligationisnotrespected,theCommunitymay
considerthatithasdischargeditscommitment tothe
recipientcountryunderArticleIoftheAgreement .Oncethegoodsareonboardthevessel,theCommunity
shallnotifytherecipientcountryofthedateofloading,
togetherwiththequantityandqualityofthegoodsas
recordedonloading.
Article6
Article8TherecipientcountryshallsupplytheCommunity ,within
theperiodreferredtoinArticle2,withavesselof
dimensionscorresponding tothenormalloadingpoten­
tialoftheportofshipment.
Shoulditproveimpossibleforthevesseltobegin
loadingwithintheperiodreferredtoinArticle2and
shouldtherecipientcountrynothavenotifiedthe
Communityofthisfactinwritingatthelatestbythe
dateonwhichthevesselshouldhereadyforloading
inaccordancewithArticle8,thegoodsshallbeatthe
theexpense,riskandperiloftherecipientcountry.
"Whateverthecircumstances ,thegoodsshallbeheldat
theexpense,riskandperiloftherecipientcountry.TherecipientcountryshallnamefortheCommunitythe
vesselthatistoshipthegoodsatleast10cleardays
priortotheestimateddateofarrivalofthevesselin
portorwherepossible20cleardayspriortothisdate;
itshallatthesametimeindicatehowsoonafterthat
datethevesselwillbereadyforloading.
Therecipientcountryshallinsertinthecharterpartya
clauserequiringthecaptaintoinformtheCommunityat
least72hoursinadvanceofthevessel'sestimateddate
ofarrivalinport.
Article9
Article7ToimplementtheprovisionsofthisAnnex,theCommu­
nityshallappointanauthorizedagent,whosenameand
addressitshallmakeknowningoodtimetothereci­
pientcountry.
Therecipientcountryshallnominateareceivingagentin
eachportofshipment,whosenameandaddressitshall
makeknowntotheCommunitybeforetheAgreementis
implemented .Shouldtherecipientcountryfailtoprovideavesselof
suitabletonnageorifthequantitymadeavailablefor
loadingonavesselofsuitabletonnagecannotbeputon
boardinitsentiretybecauseofcircumstances beyondthe
controloftheCommunity ,thebalanceshallbeloaded
ontothenextvesselundertheconditionslaiddownin
thisAnnex.
InformationonthesigningoftheAgreementbetweentheEuropeanEconomic
CommunityandtheRepublicofPeruonthesupplyoffoodaid
TheAgreementbetweentheEuropeanEconomicCommunityandPeruonthesupply
ofcommonwheatasfoodaid,whichtheCouncildecidedtoconcludeon17December
1973,wassignedinBrusselson18December1973,by
MrNielsErsboll,AmbassadorExtraordinary andPlenipotentiary ,Chairmanofthe
PermanentRepresentatives Committee,and
MrHans-BroderKrohn,Director-General forDevelopment andCooperationatthe
CommissionoftheEuropeanCommunities ,onbehalfoftheCounciloftheEuropean
Communities ,andby
MrJulioC.DoigS.,AmbassadorExtraordinary andPlenipotentiary ,Headofthe
PeruvianMissiontotheEuropeanCommunities onbehalfoftheGovernmentPeru.