28.1.74 OfficialJournaloftheEuropeanCommunities NoL23/37
AGREEMENT
betweentheEuropeanEconomicCommunityandtheRepublicofSriLankaonthe
supplyofflourof^commonwheatasfoodaid
THECOUNCILOFTHEEUROPEAN COMMUNITIES ,
oftheonepart,
THEGOVERNMENT OFTHEREPUBLICOFSRILANKA,
oftheotherpart,
HAVEDECIDEDtoconcludethisAgreementandtothisendhavedesignatedastheii
Plenipotentiaries :
THECOUNCILOFTHEEUROPEAN COMMUNITIES :
1HEGOVERNMENT OFTHEREPUBLICOFSRILANKA:
WHOHAVEAGREEDASFOLLOWS :
ArticleI oftheproductfromportsofshipmenttoplacesof
destination .AspartofitsFoodAidProgramme (Cereals)for
1972/73,theEuropeanEconomicCommunity ,here­
inafterreferredtoasthe'Community',shallsupply
theRepublicofSriLanka,hereinafterreferredtoas
the'recipientcountry',bywayofagiftwith10000
metrictonsofcommonwheatintheformof6623
metrictonsofflourofcommonwheat.Itundertakestoexercisethegreatestpossiblecare
toensurethatthetenderingarrangements forthe
transportbyseashallnotbeprejudicialtothefree
playoffaircompetition .Anyproblemsarisingin
this.connectionshallbethesubjectofconsultations
underArticle9.
ArticleII
DeliverieswillbemadefobtoCommunityports,in
newcottonsackseachweighing68038kilo­
grammes(150lbs)net.ArticleV
ArticleIIITherecipientcountryundertakestousetheproduct
receivedasaidforpurposesofconsumptionandto
apply,forthesaleoftheproductonitsmarket,the
pricesnormallychargedonthatmarketfor
productsofcomparablequality.Theobligationsandresponsibilities oftheCommu­
nityandoftherecipientcountryrelatinginparti­
culartodeliveryandthetakingofdeliveryrespec­
tivelyaredefinedintheAnnex,whichformsan
integralpartofthisAgreement . Theproceedsfromthissale,lessthecostsofsea
transport,ofinsuranceandthenormalcostof
sellingtheproductontherecipientcountry's
market,shallbepaidintoaspecialaccountatthe
CentralBankofthatcountryandallocatedtothe
financingofoneormoredevelopment schemesArticleIV
Therecipientcountryundertakestomakeallneces­
saryarrangements forthetransportandinsurance

NoL23/38­ OfficialJournaloftheEuropeanCommunities 28.1.74
proposedbytherecipientcountryandapprovedby
theCommunity .
ArticleVI
TheContractingPartiesundertaketoimplement
thisAgreementinsuchawayastoavoidanypreju­
dicetothenormalstructureofdomesticproductiion
andinternationaltrade.Tothisendtheyshalltake
anymeasuresrequiredtoensurethataidsupplies
areinadditionto,anddonotreplace,commercial
transactionswhichmightreasonablybeexpectedin
theabsenceofsuchsupplies.Inparticular,therecip­
ientcountryundertakestoimportcommercially
fromwhateversourcebetween1July1973and30
June1974aminimumquantityof50000metric
tonsofflourofcommonwheatoritsequivalentin
commonwheat.Agreement .TothisenditshallprovidetheCommis­
sionoftheEuropeanCommunities withthe
followinginformation :
l..*notlaterthan30daysaftertheunloadingof
eachcargo:portanddateofarrivalofthe
vessel;nature,quantityandqualityofthe
productsunloaded;dateonwhichunloading
wascompleted;
2.everythreemonthsuntilthequantitiesreceivedas
aidhavebeenfullyused:quantitiessold,how
theyhavebeensold,sellingprices;normal
sellingcostsontherecipientcountry'smarket;
3.on15Januaryeveryyearuntilthespecial
accounthasbeenfullyused:
(a)stateofthisaccount(lodgmentsandwith­
drawals)on31Decemberofthepreceding
year;
(b)progressachievedintheprojectorprojects,
withanindicationofthetotalamountof
financingcarriedoutatthatstage.ArticleVU
Therecipientcountryshalltakeal'l.appropriate
measuretoprevent:
—there-exportoftheproductreceivedasaidand
ofproductsandby-productsresultingfromsuch
supplies;
—theexport,commerciallyorotherwise,withinsix
monthsofthelastdelivery,eitherofcommon
wheatproducedlocallyandofthesamenature
asthatusedtoproducetheflourreceivedasaid
orofanyby-productsresultingfromit.ArticleIX
Attherequestofeitherofthem,theContracting
Partiesshallconsulteachotheronanyquestions
concerningtheimplementation ofthisAgreement .
ArticleX
ThisAgreementshallbedrawnupinduplicatein
theDanish,Dutch,English,French,Germanand
Italianlanguages,eachofthesetextsbeingequally
authentic.ArticleVlll
Therecipientcountryundertakestoinformthe
Communityofthemodeofimplementation ofthis
ANNEX
ProvisionslaiddowninArticleIIIoftheAgreement
Anydemurrageordispatchmoneyattheportofship­
mentshallbeachargeonorforthebenefitofthe
Communityandshallibedeterminedbeforethevessel
sails.Theratesanddetailedarrangements relating
theretolaiddowninthecontractbetweenthecountryof
destinationandthecarriermusthavebeenagreedupon
inadvancebytheagentofthecountryofdestination
andtheauthorizedagentoftheCommunityreferredto
inArticle9.Article1
Deliveryshallibeeffectedandallriskshallpassfromthe
Communitytothecountryofdestinationatthemoment
at\yhichthegoodshavebeenplacedintheship'shold
attheportofshipment.
Thecountryofdestinationshallbearallcosts
subsequenttodeliveryofthegoods,includingcostsof
stowageand,whereappropriate,oftrimmingand
bagging.

28.1.74 OfficialJournaloftheEuropeanCommunities NoL23/39
Article2
TheCommunityshallnotifythecountryofdestination
ingoodtimeoftheportorportsofshipment,thequanti­
tiestobedeliveredateachport,theperiodwithinwhich
loadingmust'begin,andthedailyloadingrate.
Article3
TheCommunitymustbepreparedtoloadthegoodson
thedateresultingfromtheinstructionsinArticle8,
whereonthevesselshouldhereadyforloading.
Article4
Ondeliveryofthegoods,atoleranceof5°/olessthan
thequantitytobesuppliedinaccordancewiithArticleI
oftheAgreementispermitted.
Article5
Oncethegoodsareonboardthevessel,theCommunity
shallnotifythecountryofdestinationofthedateof
loading,togetherwiththequantityandqualityofthe
goodsasrecordedonloading.
Article6
ThecountryofdestinationshallsupplytheCommunity ,
withintheperiodreferredtoinArticle2,withavessel
ofdimensionscorresponding tothenormalloading
potentialoftheportofshipment.
Shoulditproveimpossibleforthevesseltobegin
loadingwithintheperiodreferredtoinArticle2and
shouldthecountryofdestinationnothavenotifiedthe
Communityofthisfactinwritingatthelatestbythe
dateonwhichthevesselshouldbereadyforloadingin
accordancewithArticle8,thegoodsshallbeatthe
disposaloftheCommunity .
Whateverthecircumstances ,thegoodsshall'beheldat
theexpense,riskandperilofthecountryofdestination .
Article7
Shouldthecountryofdestinationfailtoprovideavessel
ofsuitabletonnageorifthequantitymadeavailableforloadingonavesselofsuitabletonnagecannotbeputon
boardinitsentiretybecauseofcircumstances beyondthe
controloftheCommunity ,thebalanceshallbeloaded
ontothenextvesselundertheconditionslaiddownin
thisAnnex.
Inthisevent,untilthedateofloadingofthebalanceor
untilthecountryofdestinationgivesnoticeinwriting
thatitgivesupthebalance,thegoodsshallbeheldat
theexpense,riskandperilofthecountryofdestination .
ThecountryofdestinationmustnotifytheCommunity
withinamaximumperiodof30cleardaysfromthe
beginningofloadingoftheshipmenttowhichthegoods
shouldhavebelonged,ofthedateonwhichloadingof
thebalanceisduetobeginorofitsrenunciationofthe
balance.
Ifthisobligationisnotrespected,theCommunitymay
considerthatithasdischargeditscommitmenttothe
countryofdestinationunderArticleIoftheAgreement.
Article8
ThecountryofdestinationshallnamefortheCommu­
nitythevesselthatistoshipthegoodsatleast10clear
daysipriortotheestimateddateofarrivalofthevessel
inportorwherepossible20cleardayspriortothis
date,andshallatthesametimeindicatehowsoonafter
thatdatethevesselwillbereadyforloading.
Thecountryofdestinationshallinsertinthecharter
partyaclauserequiringthecaptaintoinformthe
Communityatleast72hoursinadvanceofthevessel's
estimateddateofarrivalinport.
Article9
ToimplementtheprovisionsofthisAnnex,theCommu­
nityshallappointanauthorizedagent,whosenameand
addressitshallmakeknowningoodtimetothecountry
ofdestination .
Thecountryofdestinationshallnominateareceiving
agentineachportofshipment,whosenameandaddress
itshallmakeknowntotheCommunity 'beforetheAgree­
mentisimplemented .