NoL275/20 OfficialJournaloftheEuropeanCommunities 10.10.74
AGREEMENT
betweentheEuropeanEconomicCommunityandtheRepublicofSriLankaon
thesupplyofflourofcommonwheatasfoodaid
THECOUNCILOFTHEEUROPEAN COMMUNITIES ,
oftheonepart,
THEGOVERNMENT OFTHEREPUBLICOFSRILANKA,
oftheotherpart,
HAVEDECIDEDtoconcludethisAgreementandtothisendhavedesignatedastheirPlenipotenti­
aries:
THECOUNCILOFTHEEUROPEAN COMMUNITIES :
THEGOVERNMENT OFTHEREPUBLIC OFSRILANKA :
faircompetition .Anyproblemsarisinginthisconnec­
tionshallbethesubjectofconsultationsunderArticle
VIII.WHOHAVEAGREEDASFOLLOWS :
ArticleI
Aspartofitsfoodaidprogramme (cereals)for
1973/74,theEuropeanEconomicCommunity ,here­
inafterreferredtoasthe'Community',shallsupply
th,eRepublicofSriLanka,hereinafterreferredtoas
the'countryofdestination',bywayofgift,with
16000metrictonsofcommonwheat,intheformof
10596metrictonsofflourofcommonwheat.
ArticleII
Deliverieswillbemadefobinnewcottonbagsofa
netweightof50kgeach,inaccordancewiththe
detailedrulessetoutintheAnnexwhichisaninte­
gralpartofthisAgreement .
ArticleIII
Thecountryofdestinationundertakestomakeall
neccssaryarrangements forthetransportandinsur­
anceoftheproductfrompointofdeliverytoplacesof
destination .
Itundertakestoexercisethegreatestpossiblecareto
ensurethatthetenderingarrangements forthetrans­
portbyseashallnotbeprejudicialtothefreeplayofArticleIV.
Thecountryofdestinationundertakestousethe
productreceivedasaidforpurposesofconsumption
andtoapply,forthesaleoftheproductonitsmarket,
thepricesnormallychargedonthatmarketfor
productsofcomparablequality.
Theproceedsfromthissaleshallbepaidintoa
specialaccountattheCentralBankofthatcountry
andallocatedtothefinancingofoneormoredevelop­
mentschemesinaccordancewiththeprocedureto-be
agreedbetweentherecipientcountryandtheCommu­
nity.
ArticleV
TheContractingPartiesundertaketoimplementthis
Agreementinsuchawayastoavoidanyprejudiceto
thenormalstructureofdomesticproductionandinter­
nationaltrade.Tothisendtheyshalltakeany
measuresrequiredtoensurethataidsuppliesarein
additionto,anddonotreplace,commercialtransac­

10.10.74 OfficialJournaloftheEuropeanCommunities NoL275/21
tionswhichmightreasonablybeexpectedinthe
absenceofsuchsupplies.Inparticular,thecountryof
destinationundertakestoimportcommercially from
whateversourcebetween 1July1974and30June
1975aminimumquantityof100000metrictonsof
commonwheatoritsequivalentinflourofcommon
wheat.
ArticleVI
Thecountryofdestinationshalltakeallappropriate
measurestoprevent:
—there-exportoftheproductreceivedasaidandof
productsandby-productsresultingfromsuch
supplies;
—theexport,commercially orotherwise,withinsix
monthsofthelastdelivery,eitheroflocalproduce
ofthesamenatureasthatreceivedasaidorofany
productsandby-productsresultingfromit.
ArticleVII
Thecountryofdestinationundertakestoinformthe
Communityofthemodeofimplementation ofthis
Agreement .TothisenditshallprovidetheCommis­
sionoftheEuropeanCommunitieswiththefollowing
information :
1.immediatelyafterthedischargeofeachcargo:port
anddateofarrivalofvessel;nature,quantityand
anyobservationsastothequalityoftheproductdischarged ;dateonwhichdischargewas
completed ;costsofseatransportandofinsurance
relatingthereto;
2.everythreemonthsuntilthequantitiesreceivedas
aidhavebeenfullyused:quantitiessold,howthey
havebeensold,sellingprices;normalsellingcosts
onthemarketofthecountryofdestination ;insur­
ancecostsand,whereappropriate ,transportcosts
fromtheportofdischargetotheplacesofdestina­
tion;
3.on15Januaryeveryyearuntilthespecialaccount
hadbeenfullyused:
(a)stateofthisaccount(depositsandwithdrawals )
on31Decemberoftheprecedingyear;
(b)progressachievedintheprojectorprojects,
withanindicationofthetotalamountof
financingcarriedoutatthatstage.
ArticleVIII
Attherequestofeitherofthem,theContracting
Partiesshallconsulteachotheronanyquestions
concerningtheimplementation ofthisAgreement .
ArticleIX
ThisAgreementshallbedrawnupinduplicateinthe
Danish,Dutch,English,French,GermanandItalian
languages,eachofthesetextsbeingauthentic .

NoL275/22 OfficialJournaloftheEuropeanCommunities 10.10.74
DELIVERY PROCEDURES
CHAPTER I
GeneralprovisionsTheothercostsreferredtointhefirstsubparagraphshallbe
refundedbytheCommunityonlyiftheyhavebeenpaidby
thecountryofdestinationwiththeapprovaloftheCommu­
nity.
Article6
WhereitisimpossiblefortheCommunitytosupplyallor
partofthegoodsonthedateandwithinthetimelimits
providedforinArticle7,theagentsoftheCommunityand
ofthecountryofdestinationmay,withoutprejudiceto
Article5,agreeonanewdateandanewtimelimitforthe
deliveryofallthegoodsoroftheundeliveredpartthereof.Article1
Deliveryshallbeeffectedandallriskshallpassfromthe
Communitytothecountryofdestinationatthemomentat
whichthegoodsareputdownatthepointofexportation
namedbytheCommissionoftheEuropeanCommunities at
theberthspecifiedbythecountryofdestinationoritsagent
referredtoinArticle3andunderthetermsspecifiedinthis
Annex.WithoutprejudicetoArticles8and9theCommu­
nityshallbearallcostspriortodeliveryandthecountryof
destinationthoseafterdelivery.
Article2
Ondeliveryofthegoods,atoleranceof5%lessthanthe
quantitytobesuppliedinaccordancewithArticleIofthe
Agreementispermitted .
Article3
Forthepurposeofimplementing theprovisionsofthis
AnnextheCommunityshallappoint—ifnecessaryforeach
consignment—anagentwhosenameandaddressitshall
makeknowntothecountryofdestinationimmediately
followinghisappointment .Foreachportofshipmentthe
countryofdestinationshallappointanagentwhosename
andaddressitshallmakeknowntotheCommunitywithall
dispatchandifpossiblebeforetheappointmentoftheagent
oftheCommunity .
Article4
Beforeimplementing theprocedureforappointingtheagent
oftheCommunityreferredtoinArticle3,theCommission
oftheEuropeanCommunities andthecountryofdestination
shallestablishbyjointagreementtheperiodduringwhich
deliverymustbegin.CHAPTER III
Obligationsofthecountryofdestination
Article7
AftercontactingtheCommunity ,thecountryofdestination
shallprocure,totransportallthequantitiesprovidedforin
ArticleIoftheAgreement ,oneormorevesselsofdimen­
sionscorresponding tothenormalcapacityoftheportof
shipment;thesevesselsmustbereadyforloadingonadate
fallingwithintheperiodreferredtoinArticle4.
Theagentofthecountryofdestinationshallinformthe
Communityofthisdateandofthedateforcommencement
ofdeliveryassoonasheknowsthem,ifpossible20clear
daysinadvanceandinanycase10cleardaysbeforethedate
forcommencement ofdelivery.
HeshallestablishwiththeagentoftheCommunitythesche­
duletowhichdeliveryshalltakeplace.
Article8
Wherethecountryofdestinationisunabletobeginloading
onthedateprovidedforinthefirstsubparagraph ofArticle
7,theagentofthecountryofdestinationshallinformthe
agentoftheCommunitywithoutdelay.
InthiseventtheagentsoftheCommunityandofthe
countryofdestinationmayagreeonanewdateforthe
commencement ofdeliveryand,ifapplicable,anewsche­
dule.Thecostsarisingfromthedelayinloadingshallinall
casesexceptforcemajeurebebornebythecountryofdesti­
nation.
Shouldthenewdateprovidedforinthesecondsubpara­
graphbemorethan30cleardaysafterthedateforloading
providedforinthefirstsubparagraph ofArticle7,the
Communitymaydisposeofthegoodswithout-prejudiceto
itscommitmentunderArticleIofthisAgreement .
Article9
Wherethequantitymadeavailableforloadingonavessel
cannotbeloadedonboardinitsentirety,thecountryof
destinationshallinformtheCommunityassoonaspossible,CHAPTER II
ObligationsoftheCommunity
Article5
WheretheCommunity isnotinapositiontocarryout
deliveryonthedate,and,ifapplicable,accordingtothesche­
dulelaiddowninArticle7,allcostsarisingforthecountry
ofdestination—forexample,demurrage ,voidfreightand
deadfreight—shallbebornebytheCommunity .
Thechargesandthearrangements relatingtodemurragelaid
downinthecontractconcludedbetweenthecountryofdesti­
nationandthecarriermusthavepreviouslybeenagreedby
thecountryofdestinationandtheagentoftheCommunity .

10.10.74 OfficialJournaloftheEuropeanCommunities NoL275/23
andnolaterthan15cleardaysafterloadinghasbeen
completed,whetheritintendstoacceptortorenouncethe
balance.
Intheformercasethesecondandthirdsubparagraphs of
Article8shallapplytothebalance,ifdeliveryhasnotyet
takenplace.
InthelattercasetheCommunitymayconsiderthatithas
dischargeditscommitment tothecountryofdestination
underArticleIofthisAgreementandshallbearthecosts
resultingfromrenunciation .Inanyevent,afteranintervalof15cleardaysandinthe
absenceofanynoticeonthepartofthecountryofdestina­
tion,renunciationshallbedeemedtohavetakenplace.
Article10
Upondeliveryofthegoods,thecountryofdestinationshall
handovertotheauthorizedagentoftheCommunity acertifi­
cateofacceptancewhichshallsetouttheportofshipment,
dateofacceptanceandthenatureandquantityofthegoods
accepted,togetherwithanycommentsonthequalityofthe
goods.AcopyofthecertificateshallbesenttotheCommis­
sionoftheEuropeanCommunities .
InformationonthesigningoftheAgreementbetweentheEuropeanEconomic
CommunityandtheRepublicofSriLankaonthesupplyoffoodaid
TheAgreementbetweentheEuropeanEconomicCommunityandtheRepublicofSri
Lankaonthesupplyofflourofcommonwheatasfoodaid,whichtheCouncildecidedto
concludeon23September1974,wassignedinBrusselson25September1974,onbehalf
oftheCounciloftheEuropeanCommunities by:
EmileCazimajou,MinisterPlenipotentiary ,ChairmanofthePermanentRepresentatives
Committee (Deputies),and
MrDurieux,DirectorforDevelopment andCooperation ,CommissionoftheEuropean
Communities ,
andonbehalfoftheRepublicofSriLankaby:
MrJ.R.Samaranayake ,charged'affairesadintern)ofthatcountry'sMissiontotheEuro­
peanEconomicCommunity .