NoL335/2 OfficialJournaloftheEuropeanCommunities 14.12.74
AGREEMENT
betweentheEuropeanEconomicCommunityandtheRepublicofPeruonthesupply
ofbutteroilasfoodaid
THECOUNCILOFTHEEUROPEAN COMMUNITIES ,
oftheonepart,
THEGOVERNMENT OFTHEREPUBLICOFPERU,
oftheotherpart,
HAVEDECIDEDtoconcludethisAgreement ,andtothisendhavedesignatedastheir
Plenipotentiaries :
THECOUNCIL OFTHEEUROPEAN COMMUNITIES :
THEGOVERNMENT OFTHEREPUBLIC OFPERU:
WHOHAVEAGREEDASFOLLOWS :
ArticleI
TheEuropeanEconomicCommunity ,hereinafter
referredtoasthe'Community',shallsupplyasa
gifttotheRepublicofPeru,hereinafterreferredto
asthe'countryofdestination',700metrictonsof
butteroilofthequalityandwiththepackaging
specifiedinAnnexI,whichformsanintegralpart
ofthisAgreement .
Article11
Deliveriesshallbemadeinaccordance withthe
arrangements setoutinAnnexIIwhichformsan
integralpartofthisAgreement .
Article111
Thecountryofdestinationundertakestomakeall
thenecessaryarrangements forthetransportandinsuranceofthedeliveredproductfromthepointsof
deliverytotheirplaceofdestination .
Itundertakestoexercisethegreatestcaretoensure
thatthetenderingarrangementsforseatransportdo
notprejudicethefreeplayofcompetition .Any
problemsarisinginthisconnectionshallbethe
subjectofconsultations underArticleVIIIofthis
Agreement .
ArticleIV
Thecountryofdestinationundertakestousethe
productreceivedasaidforpurposesofconsumption
andtoapply,forthesaleoftheproductonits
market,thepricesnormallychargedonthatmarket
forproductsofcomparablequality.
Theproceedsfromthissaleshallbepaidintoa
specialaccountatthecentralbankofthatcountry

14.12.74 OfficialJournaloftheEuropeanCommunities NoL335/3
andallocatedtothefinancingofoneormore
development schemesdnaccordancewith(the
procedureto'beagreedbetweentherecipientcountry
andtheCommunity .
ArticleV
TheContractingPartiesundertaketoimplement (this
Agreementinsuchawayastoavoidanyprejudice
tothenormalstructureofdomesticproductionand
internationaltrade.Tothisend,theyshalltakeany
measuresrequiredtoensurethataidsuppliesarein
additionto,anddonotreplace,commercial
transactionswhichmightreasonablybeexpectedin
tfheabsenceofsuchsupplies.
ArticleVI
Thecountryofdestinationshalltakeallappropriate
measurestoprevent:
—there-exportoftheproductreceivedasaidand
ofproductsderivedtherefrom;
—theexport,commerciallyorotherwise,withinsix
monthsofthelastdelivery,eitheroflocal
produceofthesamenatureasthatusedto
producetheflourreceivedasaidorofany
productsorby-productsresultingfromit.
ArticleVII
Thecountryofdestinationundertakestoinformthe
Communityofthecircumstances surroundingthe
implementation ofthisAgreement.Forthispurpose,
itshallprovidetheCommissionoftheEuropean
Communitieswiththefollowingdetails:1.immediatelyaftertheunloadingofeachcargo:
portanddateofarrivalofvessel;nature,
quantityandanyobservationsastothequality
oftheproductsunloaded;dateonwhich
unloadingwascompleted;costsofseatransport
andofinsurancerelatingthereto;
2.everythreemonthsuntilthequantitiesreceived
asaidhavebeenfullyused:quantitiessold,how
theyhavebeensold;sellingprices;normalselling
costsonthemarketofthecountryofdestination;
insurancecostsand,whereappropriate,transport
costsfromtheportofdischargetotheplacesof
destination ;
3.on15Januaryeveryyearuntilthespecial
accounthasbeenfullyused:
(a)stateofthisaccount (depositsand
withdrawals )on31Decemberofthepreceding
year;
(b)progressachievedintheprojectorprojects,
withanindicationofthetotalamountof
financingcarriedoutatthatstage.
ArticleVIII
Attherequestofeitherofthem,theContracting
Partiesshallconsulteachotheronanyquestions
concerningtheimplementation ofthisAgreement.
ArticleIX
ThisAgreementisdrawnupinduplicateinthe
Danish,Dutch,English,French,German,Italianand
Spanishlanguages,eachofthesetextsbeing
authentic.
ANNEXI
BUTTEROIL
QUALITYANDPACKAGING REQUIREMENTS
I.Quality
(a)Productcharacteristics :
Concentratedmilkfatcontainingnolessthan99-8%ofpurefats.

NoL335/4 OfficialJournaloftheEuropeanCommunities 14.12.74
(b)Standardcomposition :
(Analysismadeattimeofmanufactureandpacking):
—moistureandnon-fatingredientsofmilk:notmorethan0-2%;
—fats:notlessthan99*8%;
—freefattyacids:notmorethan0'5%(expressedasoleicacid);
—peroxidelevel/kg:notmorethanoneunit(inmilliequivalentsofactiveoxygenperkg);
—taste:pure;
—smell:absenceofsmellextraneoustobutteroil
II.Conditionsofpackaging
(a)Metalcansof20kg—onecanpercarton.
(b)Markingonthepackaging (inSpanish):
'Butteroil-DonativodelaCommunidad EconomicaEuropeaalaRepublicadelPeru'.
ANNEXII
ARRANGEMENTS REFERRED TOINARTICLEIIOFTHEAGREEMENT
CHAPTER I
GeneralprovisionsArticle3
Beforeimplementing theprocedureforappointingthe
agentoftheCommunityreferredtoinArticle2,the
CommissionoftheEuropeanCommunities andthe
countryofdestinationshallestablishbyjointagreement
theperiodduringwhichdeliverymustbegin.
CHAPTER II
ObligationsoftheCommunityArticle1
Deliveryshallbeeffectedandallriskshallpassfromthe
Communitytothecountryofdestinationatthemoment
atwhichthegoodsareputdownatthepointof
exportationnamedbytheCommissionoftheEuropean
Communities attheberthspecifiedbythecountryof
destinationofitsagentreferredtoinArticle2andunder
thetermsspecifiedinthisAnnex.Withoutprejudiceto
Articles7and8theCommunityshallbearallcostsprior
todeliveryandthecountryofdestinationthoseafter
delivery.
Article2
Forthepurposeofimplementing theprovisionsofthis
AnnextheCommunityshallappoint—ifnecessaryfor
eachconsignment—anagentwhosenameandaddressit
shallmakeknowntothecountryofdestination
immediatelyfollowinghisappointment .Foreachportof
shipmentthecountryofdestinationshallappointan
agentwhosenameandaddressitshallmakeknownto
theCommunitywithalldispatchandifpossiblebefore
theappointmentoftheagentoftheCommunity .Article4
WheretheCommunityisnotinapositiontocarryout
deliveryonthedate,and,ifapplicable,accordingtothe
schedulelaiddowninArticle6,allcostsarisingforthe
countryofdestination—inparticulardemurragevoid
freightanddeadfreight—shallbebornebythe
Community .
Thechargesandthearrangementsrelatingtodemurrage
laiddowninthecontractconcludedbetweenthecountry
ofdestinationandthecarriermusthavepreviouslybeen
agreedbythecountryofdestinationandtheagentofthe
Community .
Theothercostsreferredtointhefirstsubparagraph shall
berefundedbytheCommunityonlyiftheyhavebeen

14.12.74 OfficialJournaloftheEuropeanCommunities NoL335/5
paidbythecountryofdestinationwiththeapprovalof
theCommunity .
Article5
WhereitisimpossiblefortheCommunitytosupplyall
orpartofthegoodsonthedateandwithinthetime
limitsprovidedforinArticle6theagentsofthe
Communityandofthecountryofdestinationmay,
withoutprejudicetoArticle4,agreeonanewdateanda
newtimelimitforthedeliveryofallthegoodsorofthe
undeliveredpartthereof.InthiseventtheagentsoftheCommunityandofthe
countryofdestinationmayagreeonanewdateforthe
commencement ofdeliveryand,ifapplicable,anew
schedule.Thecostsarisingfromthedelayinloading
shallinallcasesexceptforcemajeurebebornebythe
countryofdestination .
Shouldthenewdateprovidedforinthesecond
subparagraph bemorethan30cleardaysafterthedate
forloadingprovidedforinthefirstsubparagraph of
Article6,theCommunitymaydisposeofthegoods
withoutprejudicetoitscommitmentunderArticleIof
thisAgreement .
Article8
Wherethequantitymadeavailableforloadingona
vesselcannotbeloadedonboardinitsentirety,the
countryofdestinationshallinformtheCommunityas
soonaspossible,andnolaterthan15cleardaysafter
loadinghasbeencompleted,whetheritintendstoaccept
ortorenouncethebalance.
Intheformercasethesecondandthirdsubparagraphs of
Article7shallapplytothebalance,ifdeliveryhasnot
yettakenplace.
InthelattercasetheCommunitymayconsiderthatithas
dischargeditscommitmenttothecountryofdestination
underArticleIofthisAgreementandshallbearthecosts
resultingfromrenunciation .
Inanyevent,afteranintervalof15cleardaysandinthe
absenceofanynoticeonthepartofthecountryof
destination,renunciationshallbedeemedtohavetaken
place.
Article9
Upondeliveryofthegoods,thecountryofdestination
shallhandovertotheagentoftheCommunitya
certificateofacceptancestatingtheportofshipment,
dateofacceptanceandthenatureandquantityofthe
goodsaccepted,togetherwithanycommentsonthe
qualityofthegoods.CHAPTER III
Obligationsofthecountryofdestination
Article6
AftercontactingtheCommunity,thecountryof
destinationshallprocuretotransportallthequantities
providedforinArticleIoftheAgreementoneormore
vesselsofdimensionscorresponding tothenormal
capacityoftheportofshipment;thesevesselsmustbe
readyforloadingonadatefallingwithintheperiod
referredtoinArticle3.
Theagentofthecountryofdestinationshallinformthe
Community ofthisdateandofthedatefor
commencement ofdeliveryassoonasheknowsthem,if
possible20daysinadvanceandinanycase10days
beforethedateforcommencement ofdelivery.
HeshallestablishwiththeagentoftheCommunitythe
scheduleaccordingtowhichdeliveryshalltakeplace.
Article7
Wherethecountryofdestinationisunabletobegin
loadingonthedateprovidedforinthefirst
subparagraph ofArticle6,theagentofthecountryof
destinationshallinformtheagentoftheCommunity
withoutdelay.
InformationonthesigningoftheAgreementbetweentheEuropeanEconomicCommunity
andtheRepublicofPeruonthesupplyoffoodaid
TheAgreementbetweentheEuropeanEconomicCommunityandPeruonthesupply
ofbutteroilasfoodaid,whichtheCouncildecidedtoconcludeon2October1974,
wassignedinBrusselson3October1974,onbehalfoftheCounciloftheEuropean
Communities by:
MrEtienneBurindesRoziers,AmbassadorExtraordinary andPlenipotentiary ,Chairman
ofthePermanentRepresentatives Committee,and
MrHans-BroderKrohn,Director-General forDevelopment andCooperation ofthe
CommissionoftheEuropeanCommunities ,
andonbehalfoftheGovernmentofPeruby:
MrJulioC.DoigS.,AmbassadorExtraordinary andPlenipotentiary ,HeadoftheMis­
sionofPerutotheEuropeanEconomicCommunity .