NoL293/12 OfficialJournaloftheEuropeanCommunities 31.10.74
AGREEMENT
betweentheEuropeanEconomicCommunityandthePeople'sRepublicofBangladesh
onthesupplyofbutteroilasfoodaid
THECOUNCILOFTHEEUROPEAN COMMUNITIES ,
oftheonepart,
THEGOVERNMENT OFTHEPEOPLE'SREPUBLICOFBANGLADESH ,
oftheotherpart,
HAVEDECIDEDtoconcludethisAgreement,andtothisendhavedesignatedastheirPleni­
potentiaries :
THECOUNCILOFTHEEUROPEAN COMMUNITIES :
THEGOVERNMENT OFTHEPEOPLE'SREPUBLICOFBANGLADESH :
WHOHAVEAGREEDASFOLLOWS :
ArticleI subjectofconsultations underArticleVIIIofthis
Agreement .
ArticleIVTheEuropeanEconomicCommunity,hereinafter
referredtoasthe'Community',shallsupplyasa
gifttothePeople'sRepublicofBangladesh,
hereinafterreferredtoasthe'countryof
destination',6500metrictonsofbutteroilofthe
qualityandwiththepackagingspecifiedinAnnexI,
whichformsanintegralpartofthisAgreement .Thecountryofdestinationundertakestousethe
productreceivedasaidforpurposesofconsumption
andtoapply,forthesaleoftheproductonits
market,thepricesnormallychargedonthatmarket
forproductsofcomparablequality.
ArticleII
Deliveriesshallbemadeinaccordancewiththe
arrangements setoutinAnnexIIwhichformsan
integralpartofthisAgreement .Theproceedsfromthissaleshallbepaidintoa
specialaccountatthecentralbankofthatcountry
andallocatedtothefinancingofoneormore
development schemesinaccordancewiththe
proceduretobeagreedbetweentherecipientcountry
andtheCommunity .
ArticleIII
ArticleV
Thecountryofdestinationundertakestomakeall
thenecessaryarrangements forthetransportand
insuranceofthedeliveredproductfromthepointof
deliverytotheirplaceofdestination .TheContractingPartiesundertaketoimplementthis
Agreementinsuchawayastoavoidanyprejudice
tothenormalstructureofdomesticproductionand
internationaltrade.Tothisend,theyshalltakeany
measuresrequiredtoensurethataidsuppliesarein
additionto,anddonotreplace,commercial
transactionswhichmightreasonablybeexpectedin
theabsenceofsuchsupplies.Itundertakestoexercisethegreatestcaretoensure
thatthetenderingarrangementsforseatransportdo
notprejudicethefreeplayofcompetition .Any
problemsarisinginthisconnectionshallbethe

31.10.74 NoL293/13 OfficialJournaloftheEuropeanCommunities
ArticleVI
Thecountryofdestinationshalltakeallappropriate
measurestoprevent:
—there-exportoftheproductreceivedasaidand
ofproductsderivedfromthem;
—theexport,commerciallyorotherwise,withinsix
monthsfromthedateofthelastdelivery,,either
oftheproductobtainedlocallywhichshouldbe
ofthesamekindasthatreceivedasaidorofany
productsderivedfromthem.2.everythreemonthsuntilthequantitiesreceived
asaidhavebeenfullyused:quantitiessold,how
theyhavebeensold,sellingprices;normalselling
costsonthemarketofthecountryofdestination;
insurancecostsand,whereappropriate,transport
costsfromtheportofdischargetotheplacesof
destination .
3.on15Januaryeveryyearuntilthespecial
accounthasbeenfullyused:
(a)stateofthisaccount (depositsand
withdrawals )on31Decemberofthe
precedingyear;
(b)progressachievedintheprojectorprojects,
withanindicationofthetotalamountof
financingcarriedoutatthatstage.
ArticleVIII
Attherequestofeitherofthem,theContracting
Partiesshallconsulteachotheronanyquestions
concerningtheimplementation ofthisAgreement.
ArticleIX
ThisAgreementisdrawnupinduplicateinthe
Danish,Dutch,English,French,GermanandItalian
languages,eachofthesetextsbeingauthentic.ArticleVII
Thecountryofdestinationundertakestoinformthe
Communityofthecircumstances surroundingthe
implementation ofthisAgreement .Forthispurpose,
itshallprovidetheCommissionoftheEuropean
Communitieswiththefollowingdetails:
1.immediatelyaftertheunloadingofeachcargo:
portanddateofarrivalofvessel;nature,
quantityandanyobservations astothequality
oftheproductsunloaded;dateonwhich
unloadingwascompleted;costsofseatransport
andofinsurancerelatingthereto;
ANNEXI
BUTTEROIL
QUALITYANDPACKAGING REQUIREMENTS
I.Quality
(a)Productcharacteristics :
Concentrated milkfatcontainingnolessthan99-8%ofpurefats.
(b)Standardcomposition :
(Analysismadeattimeofmanufactureandpacking):
—moistureannon-fatingredientsofmilk:notmorethan0-2%>;
—fats:notlessthan99-8%;
—freefattyacids:notmorethan0-5%(expressedasoleicacid);
—peroxidelevel/kg:notmorethanoneunit(inmilliequivalentsofactiveoxygen
perkg);
—taste:pure;
—smell:absenceofsmellextraneoustobutteroil.
II.Conditionsofpackaging
(a)Metalcansof20kg—onecanpercarton
(b)Markingonthepackaging (inEnglish):
'Butteroil—GiftoftheEuropeanEconomicCommunitytothePeople'sRepublicof
Bangladesh.'

NoL293/14 OfficialJournaloftheEuropeanCommunities 31.10.74
ANNEXII
ARRANGEMENTS REFERREDTOINARTICLEIIOFTHEAGREEMENT
Theothercostsreferredtointhefirstsubparagraphshall
berefundedbytheCommunityonlyiftheyhavebeen
paidbythecountryofdestinationwiththeapprovalof
theCommunity .CHAPTER I
Generalprovisions
Article1
Deliveryshallbeeffectedandallriskshallpassfromthe
Communitytothecountryofdestinationatthemoment
atwhichthegoodsareputdownatthepointof
exportationnamedbytheCommissionoftheEuropean
Communitiesattheberthspecifiedbythecountryof
destinationoritsagentreferredtoinArticle2andunder
thetermsspecifiedinthisAnnex.Withoutprejudiceto
Articles7and8theCommunityshallbearallcostsprior
todeliveryandthecountryofdestinationthoseafter
delivery.Article5
WhereitisimpossiblefortheCommunitytosupplyall
orpartofthegoodsonthedateandwithinthetime
limitsprovidedforinArticle6theagentsofthe
Communityandofthecountryofdestinationmay,
withoutprejudicetoArticle4,agreeonanewdateanda
newtimelimitforthedeliveryofallthegoodsorofthe
undeliveredpartthereof.
Article2
Forthepurposeofimplementing theprovisionsofthis
AnnextheCommunityshallappoint—ifnecessaryfor
eachconsignment—anagentwhosenameandaddressit
shallmakeknowntothecountryofdestination
immediatelyfollowinghisappointment .Foreachportof
shipmentthecountryofdestinationshallappointan
agentwhosenameandaddressitshallmakeknownto
theCommunitywithalldispatchandifpossiblebefore
theappointmentoftheagentoftheCommunity .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.Article3
Beforeimplementing theprocedureforappointingthe
agentoftheCommunityreferredtoinArticle2,the
CommissionoftheEuropeanCommunities andthe
countryofdestinationshallestablishbyjointagreement
theperiodduringwhichdeliverymustbegin.
Article7
Wherethecountryofdestinationisunabletobegin
loadingonthedateprovidedforinthefirst
subparagraph ofArticle6,theagentofthecountryof
destinationshallinformtheagentoftheCommunity
withoutdelay.
InthiseventtheagentsoftheCommunityandofthe
countryofdestinationmayagreeonanewdateforthe
commencement ofdeliveryand,ifapplicable,anew
schedule.Thecostsarisingfromthedelayinloading
shallinallcasesexceptforcemajeurebebornebythe
countryofdestination .
Shouldthe,newdateprovidedforinthesecond
subparagraph bemorethan30cleardaysafterthedate
forloadingprovidedforinthefirstsubparagraph of
Article6,theCommunitymaydisposeofthegoods
withoutprejudicetoitscommitmentunderArticleIof
thisAgreement .CHAPTER II
ObligationsoftheCommunity
Article4
WheretheCommunityisnotinapositiontocarryout
deliveryonthedate,and,ifapplicable,accordingtothe
schedulelaiddowninArticle6,allcostsarisingforthe
countryofdestination—inparticulardemurragevoid
freightanddeadfreight—shallbebornebythe
Community .
Thechargesandthearrangementsrelatingtodemurrage
laiddowninthecontractconcludedbetweenthecountry
ofdestinationandthecarriermusthavepreviouslybeen
agreedbythecountryofdestinationandtheagentofthe
Community .

31.10.74 OfficialJournaloftheEuropeanCommunities NoL293/15
underArticleIofthisAgreementandshallbearthecosts
resultingfromrenunciation .
Inanyevent,afteranintervalof15cleardaysandinthe
absenceofanynoticeonthepartofthecountryof
destination,renunciationshallbedeemedtohavetaken
place.Article8
Wherethequantitymadeavailableforloadingona
vesselcannotbeloadedonboardinitsentirety,the
countryofdestinationshallinformtheCommunityas
soonaspossible,andnolaterthan15cleardaysafter
loadinghasbeencompleted,whetheritintendstoaccept
ortorenouncethebalance.
Intheformercasethesecondandthirdsubparagraphs of
Article7shallapplytothebalance,ifdeliveryhasnot
yettakenplace.
InthelattercasetheCommunitymayconsiderthatithas
dischargeditscommitmenttothecountryofdestinationArticle9
Upondeliveryofthegoods,thecountryofdestination
shallhandovertotheagentoftheCommunitya
certificateofacceptancestatingtheportofshipment,
dateofacceptanceandthenatureandquantityofthe
goodsaccepted,togetherwithanycommentsonthe
qualityofthegoods.
InformationonthesigningoftheAgreementbetweentheEuropeanEconomic
CommunityandthePeople'sRepublicofBangladeshonthesupplyoffoodaid
TheAgreementbetweentheEuropeanEconomicCommunityandBangladeshon
thesupplyofbutteroilasfoodaid,whichtheCouncildecidedtoconcludeon
2October1974,wassignedinBrusselson3October1974,onbehalfoftheCouncil
oftheEuropeanCommunities by:
MrEtienneBurindesRoziers,AmbassadorExtraordinary andPlenipotentiary ,Chairman
ofthePermanentRepresentatives Committee,and
MrHans-BroderKrohn,Director-General forDevelopmentandCooperationofthe
CommissionoftheEuropeanCommunities ,
andonbehalfoftheGovernmentofthePeople'sRepublicofBangladeshby:
MrA.M.SanaulHuq,AmbassadorExtraordinary andPlenipotentiary ,Headofthe
MissionofBangladeshtotheEuropeanEconomicCommunity .