ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (74)1439
Vol.1974/0233

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COMMISSION OFTHEEUROPEAN COMAAUNITIES
COM(74)1439 final
..rassels,13September1974
RECOMMAENDATION FORA
COUNCILDECISION
on"theconclusionofanagreementbetweentheEuropeanEconomicCommunity
andtheArabRepublicofEgyptforthesupplyforcerealsasfoodaid
(submittedtotheCouncilbytheCommission )
COM(74)1439final

THECOUHQIL OFTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,
andinparticular Articles 113 ,114 .and228 ,thereof ;
–' .
Having regard totheRecommendation from theCommission ;
Whereas theEuropean Economic Community hasdeposited a'Declaration for
provisional application ofthe1971 Food AidConvention ;whereas that
Convention has .been applicable .since l_July .1971 > ...... ...... ........
Whereas the Arab Republic ofEgypt »byitsletter of >10.8.1973
hasrequested food aid ;
Whereas inview ofthecereal supply situation inEgypt that country
should beaccorded ,bywayofgift ,20000tonnes ofcereals intheform
of13245tonnes offlour ofsoft wheat under theCommunity Pood Aid
Programme for1973/74}
DECIDES : ■
Article 1
" • i
Onbehalf oftheEuropean Economic Community anAgreement ,thetext whereof
isannexed hereto ,shall beconcluded between theEuropean Economic Community
andthe Arab Republic ofEgypt forsupply offlour ofsoft wheat asfood
aid .
§ k
Article .2
ThePresident oftheCouncil ishereby authorized todesignate those who
are tosign theAgreement and toconfer onthem therequisite powers to
bind theCommunity .
Done atBrussels , 19
For the Council
The President

AGREERENT
BETWEENTHEEUROPEAN ECONOMIC COMMUNITY
ANDTIIEARABREPUBLIC OFE3YPT ON
THESUPPLYOFFOODAIDINTHEFORMOF
CEREALS.

TÏÏGCOUKCILOPTHEEUROPEMTC0MÎ.ÎU1ÎITIES ,
/•, t
.... oftheonepart,
*
l
' «
TiJEGO^IMIELTl 1OPTIIEARABREPUBLIC OPEGYPT
ofthéotherpart,
HAVEDECIDED "toconcludedthisAgreementandtothisendhave
designatedastheir,plenipotentiaries :
THECOUNCILOPTHEEUROPEAN COI'BaUJTITIES :
THEG0VER1HS1JT 0:THE'ARABREPUBLICOFEGYPT:•
YfllOHAVEAGREEDASP0L1/JVJS: •'

ARTICLEI
TheEuropeanEconomicCommunityshallsupplybywayofgifttotheArab
RepublicofEgypt(hereafterreferredtoas"therecipientcountry")a
quantityof20000tonnesofcereals •undertheCommunity'sfoodaid
programmeincerealsfoi*1973/74-Thisquantityshallbesuppliedinthe
formof13*245tonnesofflourofsoftwheat.
ARTICLEII
Deliverieswillbemadeinnewcottonbagsofanetweightof67*485kgeach,
FOBunderthearrangements providedinAnnexIwhichformsanintegralpart
ofthepresentAgreement. " I
ARTICLEIII
Therecipientcountryundertakestomakeallnecessaryarrangements forthe
transportandinsuranceoftheproductsfrompointofdeliverytoplaces
•«
•»ofdestination .
Itundertakestoexercisethegreatestcaretoensurethatthetendering
arrangements forseatransportdonotprejudicethefreeplayoffair
competition .Anyproblemsarisinginthisconnectionshallbethesubject
ofconsultations underArticleVIIIofthepresentAgreement.
t
ARTICLE IV'
Therecipientcountryundertakestousetheproductreceivedasaidfor
purposesofconsumption andtoapply,forthesaleoftheproductonits
market,thepricesnormallychargedonthatmarketforproductsof
comparablequality.Theproceedsfromthissaleshallbepaidintoa
specialaccountwith.theCentralBankandallocatedtothefinancingof
oneormoredevelopmentprojectsunderarrangements whichhavebeen
agreedinadvancebetweentherecipientcountryandtheEuropeanEconomic
Community.

ARTICLE V
TheContracting Parties undertake toimplement this Agreement insuch away
astoavoid anyprejudice tothenormal structure ofnational production
andinternational trade .Tothis end they ,shall take anymeasures required
toensure that supplies asaid .are inaddition toand donotreplace business
transactions which might reasonably beexpected intheabsence ofsuch supplies
Inparticular itherecipient country undertakes toimport commercially from
whatever source between 1July 1974 and 30June 1975 aminimum quanity of
2122 300tonnes ofspft wheat oritsequivalent inflour ofsoft wheat .
ARTICLE VI
Therecipient country shall take allsteps required toprevent :
(i)there-export oftheproduct received asaidandalso ofanyproducts
andby-products resulting therefrom ;
(ii)theexport ,commercially orotherwise ,within aperiod ofsixmonths
commencing from thefinal delivery ,either ofanyproduct procured
locally ofthesame nature asthat used forobtaining theflour received
asaid ,orofanyproducts resulting therefrom . ' v'
t t
• ARTICLE VII
Therecipient country undertakes toInform theEuropean Economic Community
ofhow this Agreement isimplemented .Tothis end itshall provide the
Commission oftheEuropean Communities with thefollowing details :
(i)Immediately after theunloading ofeach cargo :*ports anddates of
arrival ofvessel ;nature ,quantity andanyobservations astothe
quality oftheproducts unloaded ;date onwhich unloading was
completed ;costs ofseatransport andofinsurance relating thereto ;
(ii)Every three months until thequantities received asaidhave been
fully used quantities sold ;manner ofsale ;actual selling prices ;
normal selling costs ontherecipient country 'smarket ;costs of
insurance (andoftransport ifapplicable )from theport ofunloading
totheplaces ofdestination ;

(iii)On15Januaryeveryyearuntilthespecialaccounthasbeenfully
expended : -
a)Summaryoftheaccount(incomingsandoutgoingo)to31December
ofthepreviousyear;
b)Stageofprogressoftheprojectorprojects,indicatingthe
totalresourcesexpendedtothatstage.
«
■ARTICLEVIII
TheContractingPartiesshallattherequestofeitherconsulteachother *
onanyquestionsconcerningtheimplementation ofthisAgreement.
ARTICLE IX
ThisAgreementisdrawnupinduplicateintheDanish,Dutch,English,
French,GermanandItalianlanguages,eachofthesetextshavingequalforce.

ANNEX I
General provisions
- -•}v. •• .'•
Article 1
/ * - ■
Delivery Bhall beeffected andrisks shall pass form theEuropean Economic
• ν 'Community ,,hereinafter referred 'toastheEEC ,totherecipient country at
themoment atwhich thegoods areputdown atthepoint ofexportation
named bytheCommission oftheEuropean Communities attheberth specified
bytherecipient country oritsagent referred toinArticle 3andunder the
terras specified inthefollowing articles .Without prejudice toArticles 8and
9theEECshall bear allcosts uptodelivery andtherecipient country those
beyond delivery .
Article 2
Ondelivery atolerance of55°less than thequantity oftheproduct tobe
supplied inaccordance with article I.oftheAgreement 'shall beadmissible .
Article 3
• »
TheEEC shall appoint anagent toimplement theprovisions ofthepresent
Annex -orforeach consignment -whose name andaddress itshall make
known totherecipient country immediately following hisappointment .
Thereoipient country shall appoint anagent intheport orports ofship­
ment ,whose name andaddress itshall make known totheEECwith all 1
despatch andifpossible before theappointment ofagent oftheEEC *
Article 4
Before implementing theprocedures forappointing theagent oftheEEC
referred toinArticle 3ttheCommission oftheEuropean Communities and
therecipient country shall jointly establish theperiod during which '
delivery must begin .
Obligations oftheEuropean Economic Community
Article 5
Should theEECnotbeinaposition tocarry outdelivery onthedate and
(ifapplicable )ontheschedule asprovided inArticle 7tallcosts
arising fortherecipient country -forexample demurrage void freight
anddead freight -shall beborne bytheEEC .

Thecharges and thearrangements relating todemurrage laid down inthe
contract between therecipient country and thecarrier roust have been
agreed inadvance bytherecipient country and theagent oftheEEC .
Theother costs referred tointhefirst paragraph shall only berefunded
•bytheEEC ifthey have been paid bytherecipient country with theapproval
ofthe EEC .
– - 'Article 6 .•• • -- ... – ...
Should itprove impossible for theEEC tosupply allorpart ofthegoods
onthe date andwithin thetime-limits provided for inArticle 7andwithout
prejudice totheprovisions ofArticle 5»anew date and anewtime-limit
shall beagreed between theagents oftheEECandoftherecipient country
forthedelivery ofallthegoods oroftheundelivered part thereof .
i
m . » a*
Obligations ofthe recipient country
.Article 7 •>
• •
After contacting theEEC ,therecipient country shall procure oneormore
■vessels totransport all thequantities -provided for inArticle 1ofthe
Agreement ,ofdimensions corresponding tothenormal capacity oftheport of
shipment ;these vessels must beready forloading onadate falling within
theperiod referred toinArticle 4«
Theagent oftherecipient country shall inform theEECofthis date
immedately onlearning it,andalsothat for commencement ofdelivery ,
ifpossible twenty days inadvance andinanycase tendays before thedate
forcommencement ofdelivery .
Heshall establish with theagent oftheEECtheschedule towhich delivery
shall take place .
Article 8
Should therecipient country beunable 'tobegin loading onthedate provided
forinArticle 7»paragraph 1,theagent oftherecipient country shall
inform theagent oftheEECwithout delay .

Inthis event anewdate forthecommencement ofdelivery and (ifapplicable )
anew schedule could "beagreed between theagents oftheEECandofthe
recipient country .Thecosts arising from this delay shall inallcases
except force majeure beborne bytherecipient country .
Should thenew date provided for inparagraph 2bemore than 30clear days .
after the .date forloading provided for inArticle 7,paragraph 1,theEEC
maydispose ofthegoods without prejudice toitscommitment under Article 1
ofthis Agreement .
4
Article 9
Ifthequantity made available forloading onavessel cannot beput on
board initsentirety ,therecipient country shall inform theEEC assoon
aspossible andnolater than fifteen clear days after loading hasbeen
completed whether itintends toaccept ortorenounce thebalance .
Intheformer case theprovisions ofArticle 8,paragraphs 2and 3»shall
apply tothebalance ,ifdelivery hasnotyettaken place .
Inthelatter case theEECmayconsider that ithasdischarged itscommitment
totherecipient country under Article -1ofthis Agreement .and shall bear
thecosts resulting from such renunciation .
Inanyevent after theexpiry ofaninterval offifteen clear days andin
theabsence ofany ,notice onthepart oftherecipient country ,therenun - ,
ciation shall bedeemed tohave taken place . '
Article 10
Upon delivery ofthegoods ,therecipient country shall hand tothe
agent oftheEECacertificate ofacceptance stating theport ofshipment ,
date ofacceptance ,thenature andquantity ofthegoods accepted and
including anycomments onthequality ofthegoods .andsend acopy thereof \
totheCommission oftheEuropean Communities .