14.1.75 OfficialJournaloftheEuropeanCommunities NoL9/15
AGREEMENT
betweentheEuropeanEconomicCommunityandtheRepublicofIndiaonthe
supplyofbutteroilandbutterasfoodaid
THECOUNCILOFTHEEUROPEAN COMMUNITIES ,
oftheonepart,
THEGOVERNMENT OFTHEREPUBLICOFINDIA,
oftheotherpart,
HAVEDECIDEDtoconcludethisAgreement,andtothisendhavedesignatedastheirPlenipoten­
tiaries:
THECOUNCILOFTHEEUROPEAN COMMUNITIES :
THEGOVERNMENT OFTHEREPUBLIC OFINDIA :
WHOHAVEAGREEDASFOLLOWS :
ArticleI
TheEuropeanEconomicCommunity ,hereinafter
referredtoasthe'Community',shallsupplybywayof
gifttotheRepublicofIndia,hereinafterreferredtoas
the'countryofdestination',aquantityof3000metric
tonsofbutteroileitherentirelyintheformof
butteroil,orpartlyintheformofbutteroilandpartly
intheformofbutterinproportionsagreedbetween
theCommunityandcountryofdestination .The
qualityandthepackagingoftheproductsarespeci­
fiedinAnnexI,whichformsanintegralpartofthis
Agreement .
Article11
Deliveriesshallbemadeinaccordance withthe
arrangements setoutinAnnexIIwhichformsaninte­
gralpartofthisAgreement .
ArticleIII
Thecountryofdestinationundertakestomakeallthe
necessaryarrangements forthetransportandinsur­
anceofthedeliveredproductsfromthepointof
deliverytotheirplacesofdestination .
Itundertakestoexercisethegreatestcaretoensure
thatthetenderingarrangements forseatransportdo
notprejudicethefreeplayofcompetition .Any
problemsarisinginthisconnectionshallbethe
subjectofconsultationsunderArticleVIII.ArticleIV
Thecountryofdestinationundertakestousethe
productsreceivedasaidforpurposesofconsumption
andtoapply,forthesaleoftheproductsonits
market,thepricesnormallychargedonthatmarket
forproductsofcomparablequality.
Theproceedsofthissale,evaluatedonalumpsum
basisbyagreementbetweentheCommunityandthe
countryofdestinationshallbeenteredasrevenuein
thebudgetofthecentralgovernmentofthatcountry
andusedforthefinancingofdevelopmentprojects
whichshallbecommunicated bythecountryofdesti­
nationandwhichshallnotgiverisetoanyobserva­
tiononthepartoftheCommunity .
ArticleV
TheContractingPartiesundertaketoimplementthis
Agreementinsuchawayastoavoidanyprejudiceto
thenormalstructureofdomesticproductionandinter­
nationaltrade.Tothisend,theyshalltakeany
measuresrequiredtoensurethataidsuppliesarein
additionto,anddonotreplace,commercialtransac­
tionswhichmightreasonablybeexpectedinthe
absenceofsuchsupplies.
ArticleVI
Thecountryofdestinationshalltakeallappropriate
measurestoprevent:

NoL9/16 OfficialJournaloftheEuropeanCommunities 14.1.75
—there-exportoftheproductsreceivedasaidand
ofproductsderivedfromthem;
—theexport,commercially orotherwise,withinsix
monthsfromthedateofthelastdelivery,eitherof
productsobtainedlocallyofthesamekindas
thosereceivedasaidorofanyproductsderived
fromthem.
ArticleVII
Thecountryofdestinationundertakestoinformthe
Communityofthecircumstances surroundingthe
implementation ofthisAgreement .Forthispurposeit
shallprovidetheCommission oftheEuropean
Communities withthefollowingdetails:
1.immediatelyafterthedischargeofeachcargo:port
anddateofarrivalofvessel;nature,quantityand
anyobservations astoqualityoftheproducts
discharged ;dateonwhichdischargewas
completed ;costsofseatransportandofinsurance
relatingthereto;
2.everythreemonthsuntilthequantitiesreceivedas
aidhavebeenfullyused:quantitiessold,howtheyhavebeensold,sellingprices;normalsellingcosts
onthemarketofthecountryofdestination ;insur­
ancecostsand,whereappropriate ,transportcosts
fromtheportofdischargetotheplacesofdestina­
tion;
3.on15Januaryeveryyearuntilthecompletionof
thedevelopmentprojects:progressachievedinthe
projectorprojects,withanindicationofthetotal
amountoffinancingcarriedoutatthatstage.
ArticleVIII
Attherequestofeitherofthem,theContracting
Partiesshallconsulteachotheronanyquestions
concerningtheimplementation ofthisAgreement .
ArticleIX
ThisAgreementisdrawnupinduplicateinthe
Danish,Dutch,English,French,GermanandItalian
languages,eachofthesetextsbeingauthentic.

14.1.75 OfficialJournaloftheEuropeanCommunities NoL9/17
ANNEXI
A.BUTTEROIL
QUALITYANDPACKAGING REQUIREMENTS
I.Quality
(a)Productcharacteristics :
Concentratedmilkfatcontainingnolessthan99.8%ofpurefats.
(b)Standardcomposition:
(Analysismadeattimeofmanufactureandpacking):
—moistureandnon-fatingredientsofmilk:notmorethan0.2%;
—fats:notlessthan99.8%;
—freefattyacids:notmorethan0-5%(expressedasoleicacid);
—peroxidelevel/kg:notmorethanoneunit(inmilliequivalents ofactiveoxygenperkg);
—taste:pure;
—smell:absenceofsmellextraneoustobutteroil .
II.Conditionsofpackaging
(a)Metalcansof20kg—onecanpercarton.
(b)Markingonthepackaging (inEnglish):
BUTTEROIL —GIFTOFTHEEUROPEAN ECONOMIC COMMUNITY TOTHEREPU­
BLICOFINDIA.
B.BUTTER
QUALITYANDPACKAGING REQUIREMENTS .
I.Quality
1.Unsaltedbutter
—milkfatcontentnotlessthan82%;
—watercontentnotmorethan16%;
—mustbeobtainedfrompasteurizedsourcream.
2.Saltedbutter
—milkfatcontentnotlessthan80%;
—watercontentnotmorethan16%;
—saltcontentfrom0.5%to2%,
—mustbeobtainedfrompasteurizedcream(sweet).
II.Conditionsofpackaging
(a)In25kgblocks.
(b)Packagingtobeofresistantmaterials,designedtoensureprotectionofthebutterthroughout
transport,warehousinganddistribution .
(c)Markingonthepackaging (inEnglish):
BUTTER—GIFTOFTHEEUROPEAN ECONOMIC COMMUNITY TOTHEREPU­
BLICOFINDIA.

NoL9/18 OfficialJournaloftheEuropeanCommunities 14.1.75
ANNEXII
DELIVERY PROCEDURES
Article5
WhereitisimpossiblefortheCommunitytosupplyallor
partofthegoodsonthedateandwithinthetimelimits
providedforinArticle6,theagentsoftheCommunityand
ofthecountryofdestinationmay,withoutprejudiceto
Article4,agreeonanewdateandanewtimelimitfor
delivery.CHAPTER I
Generalprovisions
Article1
Deliveryshallbeeffectedandallriskshallpassfromthe
Communitytothecountryofdestinationatthemomentat
whichthegoodsareputdownatthe-pointofexportation
namedbytheCommissionoftheEuropeanCommunities at
theberthspecifiedbythecountryofdestinationoritsagent
referredtoinArticle2andunderthetermsspecifiedinthis
Annex.WithoutprejudicetoArticles7and8theCommu­
nityshallbearallcostspriortodeliveryandthecountryof
destinationallcostsafterdelivery.
Article2
Forthepurposeofimplementing theprovisionsofthis
AnnextheCommunityshallappoint—ifnecessaryforeach
consignment—anagentwhosenameandaddressitshall
makeknowntothecountryofdestinationimmediately
followinghisappointment .Foreachportofshipmentthe
countryofdestinationshallappointanagentwhosename
andaddressitshallmakeknowntotheCommunitywithall
dispatchandifpossiblebeforetheappointmentoftheagent
oftheCommunity .
ArticleJ
Beforeimplementing theprocedureforappointingtheagent
oftheCommunityreferredtoinArticle2,theCommission
oftheEuropeanCommunities andthecountryofdestination
shallestablishbyjointagreementtheperiodduringwhich
deliverymustbegin.CHAPTER III
Obligationsofthecountryofdestination
Article6
AftercontactingtheCommunity ,thecountryofdestination
shallprocure,totransportallthequantitiesprovidedforin
ArticleIoftheAgreement,oneormorevesselsofdimen­
sionscorresponding tothenormalcapacityoftheportof
shipment ;thesevesselsmustbereadyforloadingonadate
fallingwithintheperiodreferredtoinArticle3.
Theagentofthecountryofdestinationshallinformthe
Communityofthisdateandofthedateforcommencement
ofdeliveryassoonasheknowsthem,ifpossible20daysin
advanceandinanycase10daysbeforethedatefor
commencement ofdelivery.
HeshallestablishwiththeagentoftheCommunitythesche­
duleaccordingtowhichdeliveryshalltakeplace.
Article7
Wherethecountryofdestinationisunabletobeginloading
onthedateprovidedforinthefirstparagraphofArticle6,
theagentofthecountryofdestinationshallinformtheagent
oftheCommunitywithoutdelay.
InthiseventtheagentsoftheCommunityandofthe
countryofdestinationmayagreeonanewdateforthe
commencement ofdeliveryand,ifapplicable,anewsche­
dule.Saveincasesofforcemajam■thecostsarisingfromthe
delayinloadingshallbebornebythecountryofdestination .
Shouldthenewdatebemorethan30cleardaysafterthe
dateforloadingprovidedforinthefirstparagraphofArticle
6,theCommunitymaydisposeofthegoodswithoutpreju­
dicetoitscommitmentunderArticleIofthisAgreement .
Article8
Wherethequantityintendedforloadingonavesselcannot
beloadedonboardinitsentirety,thecountryofdestination
shallinformtheCommunity assoonaspossible,andno
laterthan15cleardaysafterloadinghasbeencompleted ,
whetheritintendstoacceptortorenouncethebalance.
IntheformercasethesecondandthirdparagraphsofArticle
7shallapplytothebalance,ifdeliveryhasnotyettaken
place.CHAPTER II
ObligationsoftheCommunity
Article4
WheretheCommunity isnotinapositiontocarryout
deliveryonthedate,and,ifapplicable,accordingtothesche­
dulelaiddowninArticle6,allcostsarisingforthecountry
ofdestination—inparticulardemurragevoidfreightand
deadfreight—shallbebornebytheCommunity .
Thechargesandthearrangements relatingtodemurragelaid
downinthecontractconcludedbetweenthecountryofdesti­
nationandthecarriermusthavepreviouslybeenagreedby
thecountryofdestinationandtheagentoftheCommunity .
Theothercostsreferredtointhefirstsubparagraph shallbe
refundedbytheCommunityonlyiftheyhavebeenpaidby
thecountryofdestinationwiththeapprovaloftheCommu­
nity.

14.1.75 OfficialJournaloftheEuropeanCommunities NoL9/19
InthelattercasetheCommunitymayconsiderthatithas
dischargeditscommitment tothecountryofdestination
underArticleIofthisAgreementandshallbearthecosts
resultingfromrenunciation .
Inanyevent,afteranintervalof15cleardaysandinthe
absenceofanynoticeonthepartofthecountryofdestina­
tion,renunciationshallbedeemedtohavetakenplace.Article9
Upondelivery,ofthegoods,thecountryofdestinationshall
handovertotheagentoftheCommunity acertificateof
acceptancestatingtheportofshipment,dateofacceptance
andthenatureandquantityofthegoodsaccepted,together
withanycommentsonthequalityofthegoods.
InformationonthesigningoftheAgreementbetweentheEuropeanEconomic
CommunityandtheRepublicofIndiaonthesupplyoffoodaid
TheAgreementbetweentheEuropeanEconomicCommunityandIndiaonthesupplyof
butteroilandbutterasfoodaid,whichtheCouncildecidedtoconcludeon21October
1974,wassignedinBrusselson24October1974,onbehalfoftheCounciloftheEuro­
peanCommunities by:
MrEtienneBurindesRoziers,AmbassadorExtraordinaryandPlenipotentiary ,Chairman
ofthePermanentRepresentatives Committee ,and
MrHans-BroderKrohn,Director-General forDevelopment andCooperationatthe
CommissionoftheEuropeanCommunities ,
andonbehalfoftheRepublicofIndiaby:
MrKrishenBehariLall,AmbassadorExtraordinary andPlenipotentiary ,Headofthe
IndianMissiontotheEuropeanEconomicCommunity .