NoL343/2 OfficialJournaloftheEuropeanCommunities 21.12.74
AGREEMENT
betweentheEuropeanEconomicCommunityandtheRepublicofthePhilippinesonthe
supplyofflourofcommonwheatasfoodaid
THECOUNCILOFTHEEUROPEANCOMMUNITIES ,
oftheonepart,
THEGOVERNMENT OFTHEREPUBLICOFTHEPHILIPPINES :
oftheotherpart,
HAVEDECIDEDtoconcludethisAgreement,andtothisendhavedesignatedastheir
Plenipotentiaries :
THECOUNCILOFTHEEUROPEAN COMMUNITIES :
THEGOVERNMENT OFTHEREPUBLICOFTHEPHILIPPINES :
ArticleIVWHOHAVEAGREEDASFOLLOWS :
ArticleI
Aspartofitsfood-aidprogramme (cereals)for
1973/74,theEuropeanEconomicCommunity,
hereinafterreferredtoasthe'Community',shall
supplytheRepublicofthePhilippineshereinafter
referredtoasthe'countryofdestination',
bywayofgift,with5000metrictonsofcommon
wheat,intheformof3311metrictonsofflourof
commonwheat.Thecountryofdestinationundertakestousethe
productreceivedasaidforpurposesofconsumption
andtoapply,forthesaleoftheproductonits
market,thepricesnormallychargedonthatmarket
forproductsofcomparablequality.
Theproceedsfromthissaleshallbepaidintoa
specialaccountatthecentralbankofthatcountry
andallocatedtothefinancingofoneormore
development schemesinaccordancewiththe
proceduretobeagreedbetweentherecipientcountry
andtheCommunity .Article11
Deliverieswillbemadefobinnewcottonsackseach
havinganetweightof50kginaccordancewiththe
detailedrulessetoutintheAnnexwhichisan
integralpartofthisAgreement.
Article111
Thecountryofdestinationundertakestomakeall
necessaryarrangements forthetransportand
insuranceoftheproductfrompointofdeliveryto
placesofdestination.
Itundertakestoexercisethegreatestpossiblecareto
ensurethatthetenderingarrangements forthe
transportbyseashallnotbeprejudicialtothefree
playoffaircompetition .Anyproblemsarisingin
thisconnectionshallbethesubjectofconsultations
underArticleVIII.ArticleV
TheContractingPartiesundertaketoimplementthis
Agreementinsuchawayastoavoidanyprejudice
tothenormalstructureofdomesticproductionand
internationaltrade.Tothisendtheyshalltakeany
measuresrequiredtoensurethataidsuppliesarein
additionto,anddonotreplace,commercial
transactionswhichmightreasonablybeexpectedin
theabsenceofsuchsupplies.Inparticular,the
countryofdestinationundertakestoimport
commerciallyfromwhateversourcebetween1July
1974and30June1975aminimumquantityof

21.12.74 OfficialJournaloftheEuropeanCommunities NoL343/3
615500metrictonsofcommonwheat,orits
equivalentinflourofcommonwheat.2.everythreemonthsuntilthequantitiesreceived
asaidhavebeenfullyused:quantitiessold,how
theyhavebeensold,sellingprices;normalselling
costsonthemarketofthecountryofdestination;
insurancecostsand,whereappropriate ,transport
costsfromtheportofdischargetotheplacesof
destination ;
3.on15Januaryeveryyearuntilthespecial
accounthasbeenfullyused:
(a)stateofthisaccount(depositsandwith­
drawals)on31Decemberofthepreceding
year;
(b)progressachievedintheprojectorprojects,
withanindicationofthetotalamountof
financingcarriedoutatthatstage.ArticleVI
Thecountryofdestinationshalltakeallappropriate
measurestoprevent:
—there-exportoftheproductreceivedasaidand
ofproductsresultingfromsuchsupplies;
—theexport,commerciallyorotherwise,withinsix
monthsofthelastdelivery,eitheroflocalproduce
ofthesamenatureasthatreceivedasaidorof
anyproductsresultingfromit.
ArticleVIII
Attherequestofeitherofthem,theContracting
Partiesshallconsulteachotheronanyquestions
concerningtheimplementation ofthisAgreement .ArticleVII
Thecountryofdestinationundertakestoinformthe
Communityofthemodeofimplementation ofthis
Agreement .Tothisenditshallprovidethe
CommissionoftheEuropeanCommunitieswiththe
followinginformation :
1.immediatelyafterthedischargeofeachcargo:
portanddateofarrivalofvessel;nature,
quantityandanyobservations astothequality
oftheproductdischarged;dateonwhich
dischargewascompleted;costsofseatransport
andofinsurancerelatingthereto;ArticleIX
ThisAgreementshallbedrawnupinduplicatein
theDanish,Dutch,English,French,Germanund
Italianlanguages,eachofthesetextsbeingauthentic.
ANNEX
DELIVERY PROCEDURES
Article3
Forthepurposeofimplementing theprovisionsofthis
AnnextheCommunityshallappoint—ifnecessaryfor
eachconsignment—anagentwhosenameandaddressit
shallmakeknowntothecountryofdestination
immediatelyfollowinghisappointment .Foreachportof
shipmentthecountryofdestinationshallappointan
agentwhosenameandaddressitshallmakeknownto
theCommunitywithalldispatchandifpossiblebefore
theappointmentoftheagentoftheCommunity .CHAPTER I
Generalprovisions
Article1
Deliveryshallbeeffectedandallriskshallpassfromthe
Communitytothecountryofdestinationatthemoment
atwhichthegoodsareputdownatthepointof
exportationnamedbytheCommissionoftheEuropean
Communities attheberthspecifiedbythecountryof
destinationoritsagentreferredtoinArticle3andunder
thetermsspecifiedinthisAnnex.Withoutprejudiceto
Articles8and9theCommunityshallbearallcostsprior
todeliveryandthecountryofdestinationthoseafter
delivery.
Article4
Article2
Ondeliveryofthegoods,atoleranceof5%lessthan
thequantitytobesuppliedinaccordancewithArticleI
oftheAgreementispermitted.Beforeimplementing theprocedureforappointingthe
agentoftheCommunityreferredtoinArticle3,the
CommissionoftheEuropeanCommunities andthe
countryofdestinationshallestablishbyjointagreement
theperiodduringwhichdeliverymustbegin.

21.12.74 NoL343/4 OfficialJournaloftheEuropeanCommunities
Article8
Wherethecountryofdestinationisunabletobegin
loadingonthedateprovidedforinthefirstparagraphof
Article7,theagentofthecountryofdestinationshall
informtheagentoftheCommunitywithoutdelay.
InthiseventtheagentsoftheCommunityandofthe
countryofdestinationmayagreeonanewdateforthe
commencement ofdeliveryand,ifapplicable,anew
schedule.Thecostsarisingfromthedelayinloading
shallinallcasesexceptforcemajeurebebornebythe
countryofdestination.
Shouldthenewdateprovidedforinthesecond
paragraphbemorethan30cleardaysafterthedatefor
loadingprovidedforinthefirstparagraphofArticle7,
theCommunitymaydisposeofthegoodswithout
prejudicetoitscommitmentunderArticleIofthis
Agreement .CHAPTER II
ObligationsoftheCommunity
Article5
WheretheCommunityisnotinapositiontocarryout
deliveryonthedate,and,ifapplicable,accordingtothe
schedulelaiddowninArticle7,allcostsarisingforthe
countryofdestination—forexample,demurrage,void
freightanddeadfreight—shallbebornebythe
Community .
Thechargesandthearrangementsrelatingtodemurrage
laiddowninthecontractconcludedbetweenthecountry
ofdestinationandthecarriermusthavepreviouslybeen
agreedbythecountryofdestinationandtheagentof
theCommunity .
Theothercostsreferredtointhefirstparagraphshall
berefundedbytheCommunityonlyiftheyhavebeen
paidbythecountryofdestinationwiththeapprovalof
theCommunity .
Article6
Whereitisimpossibleforthe.Communitytosupplyall
orpartofthegoodsonthedateandwithinthetime
limitsprovidedforinArticle7,theagentsofthe
Communityandofthecountryofdestinationmay,
withoutprejudicetoArticle5,agreeonanewdateanda
newtimelimitforthedeliveryofallthegoodsorofthe
undeliveredpartthereof.Article9
Wherethequantitymadeavailableforloadingona
vesselcannotbeloadedonboardinitsentirety,the
countryofdestinationshallinformtheCommunityas
soonaspossible,andnolaterthan15cleardaysafter
loadinghasbeencompleted,whetheritintendstoaccept
ortorenouncethebalance.
Intheformercasethesecondandthirdparagraphsof
Article8shallapplytothebalance,ifdeliveryhasnot
yettakenplace.
InthelattercasetheCommunitymayconsiderthatit
hasdischargeditscommitmenttothecountryof
destinationunderArticleIofthisAgreementandshall
bearthecostsresultingfromrenunciation .
Inanyevent,afteranintervalof15cleardaysandinthe
absenceofanynoticeonthepartofthecountryof
destination,renunciationshallbedeemedtohavetaken
place.CHAPTER III
Obligationsofthecountryofdestination
Article7
AftercontactingtheCommunity,thecountryof
destinationshallprocure,totransportallthequantities
providedforinArticleIoftheAgreement,oneormore
vesselsofdimensionscorresponding tothenormal­
capacityoftheportofshipment;thesevesselsmustbe
readyforloadingonadatefallingwithintheperiod
referredtoinArticle4.
Theagentofthecountryofdestinationshallinformthe
Communityofthisdateandofthedatefor
commencement ofdeliveryassoonasheknowsthem,
ifpossible20cleardaysinadvanceandinanycase
10cleardaysbeforethedateforcommencement of
delivery.
HeshallestablishwiththeagentoftheCommunitythe
scheduleaccordingtowhichdeliveryshalltakeplace.Article10
Upondeliveryofthegoods,thecountryofdestination
shallhandovertotheauthorizedagentofthe
Communityacertificateofacceptancewhichshallset
outtheportofshipment,dateofacceptanceandthe
natureandquantityofthegoodsaccepted,togetherwith
anycommentsonthequalityofthegoods.Acopyofthe
certificateshallbesenttotheCommission ofthe
EuropeanCommunities .