ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(73)1498
Vol.1973/0261

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(73 )1498 final
Brussels ,7September 1973
RECOMMENDATION FOR A
COUNCIL DECISION
ontheconclusion ofanagreement between the European
Economic Community and theRepublic ofthe
Philippines forthesupply ofcommon wheat' and flour ofcommon wheat asfood aid
(submitted totheCouncil bythe Commission )
COM(73 )1498 final

THECOUr.OlLOPTai^EUROPEANCOIIT.7J2IITIE3,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
andinparticularArticles113,114and22othereof;
HavingregardtotheRecommendation fromtheCommission ;
WhereastheEuropeanEconomicCorjnunityhasdeposited a.Declaration for
provisionalapplicationofthe1971FoodAidConvention ;whereasthat
Conventionhas"beenapplicablesince1July1971;
V.TieresstheRepublicofthePhilippines ,byitsletterof24October1972,,
hasrequestedfoodaid;
WhereasinviewofthecerealsupplysituationintheRepublicofthePhilippines
thatcountryshouldbeaccorded,bywayofgift,10000metrictons
ofcommonwheatthehalfofwhichshallbedeliveredinformof3311metrictoes
offlourofcommonwheatundertheCommunityFoodAidProgrammefor1972/73}
DIvG'TT)"-.:•
Article1
OnbehalfoftheEuropeanEconomicComunityailAgreement,thetextwhereof
isannexedhereto,shallbeconcludedbetweentheEuropeanEconomicCommunity
andtheRepublicofthePhilippines forthesupplyofcommonwheatandflour
Vorcommonwheatasfoodaid.
*•
Article2
ThePresidentoftheCouncilisherebyauthorisedtodesignatethosewho
aretosigntheAgreementandtoconferonthemtherequisitepowerstobind
theCommunity.
*
DoneatBrussels, 19 FortheCouncilFortheCouncil
ThePresident

AGREEM3NT
BSTVEEWTHEEUROPEAN ECONOMIC COMMUNITY
AKDTHEREPUBLICOFTHEPHILIPPINES
ONTHESUPPLYOPFOODAIDIIITHEFORIIOF
COMMONWHEATANDFLOUROFCOMMONWHEAT

THECOUNCIL0?THEEUROPEANCOI®U1JTTISS,
.., "ontheonehand,
THEGOVEKlIj.ii'I.r OPTHEREPUBLIFOFTHEPHILIPPINES
on'theotherhand,
HAVEDECIDEDtoconcludethisAgreementandtothisendhavedesignated
astheirplenipotentiaries :
THECOUNCILOPTHEEUROPEANCOtSIUKITIES :
THEGOVERM--2E5T OPTHEREPUBLICOPTHEPHILIPPINES :
WHOHAVEAGREEDASFOLLOWS:

ARTICLEI
AsainrtofitsPoodAidPrograirmie(Cereals)for1972/73,theEuropean
EconomicCommunityshallsupplytheRepublicofthePhilippines ,hereinafter
referredtoasthe"recipientcountry11,with10000metrictonsof
commonwheat,thehalfofwhichshallbedeliveredintheformof3311metric
tonsofflourofcommonwheat.
ARTICLEII
Deliverieswillbomadeinbulk,fobtoCommunityportsinthecaseofthecommo:
wheatandinjutesackswithanetweightof50kgeachinthecaseoftheflour.
ARTICLEIII
Theobligations andresponsibilities oftheE:2ropeanEconomicCommunityand
oftherecipientcountryrelatingtodeliveryandthetakingofdelivery
aredefinedintheAnnex,whichformsanintegralpartofthisAgreement.
ARTICLETV
Therecipientcountryundertakestomakeallnecessaryarrangements forthe
transportandinsuranceoftheproductfromportsofshipmenttoplacesof
destination .
Ituntertakestoexercisethegreatestpossiblecaretoensurethatthe
tenderingarrangements forthetransportbyseaarenotprejudicialtothe
freeplayoffaircompetition .Anyproblemsarisinginthisconnectionsnail
bethesubjectofconsultations underArticleIXofthepresentAgreement.
ARTICLEV
Therecipientcountryundertakestousetheproductreceivedasaidforpur­
posesofconsumption andtoapply,forthesaleoftheproductonitsmarket,
*thepricesnormallychargedon.thatmarketforproductsofcomparablequality.

Theproceedsfrom ■thissale,lessthecostofseatransport ,insuranceandtne
normalcostofsellingtheproductontherecipientcountry'smarket,will
bepaidintoaspecialaccountandallocatedtothefinancingofoneormore
development schemeswhichhavealready "beenproposedbytherecipientco\mtry
andapprovedbytheEuropeanEconomicCommunity.
ARTICLEVI
TheContractingPartiesundertaketoimplementthisAgreementinsuchawayas
toavoidanyprejudicetothenormalstructureofdomesticproduction andinter­
nationaltrade.Tothisendtheyshalltakeanymeasuresreqxiiredtoensurethat
aidsuppliesareinadditionto,anddonotreplace,businesstransactions which,
mightreasonablybeexpectedintheabsenceofsuchsupplies.Inparticular ,
therecipientcountryundertakestoimportcommercially fromwhateversource
between1July1973and30June1974aminimumquantityof
metrictonsofcommonwheatoritsequivalentinflourofcommonwheat.
ARTICLEVII
Therecipientcountryshalltakeanymeasuresrequiredtoprevent:
(i)There-exportoftheproductreceivedasaidandofproductsand
by-productsresultingfromsuchsupplies:
»•
%•
(ii)Theexport,commerciallyorotherwise,withinsixmonthsofthelast
delivery,eitheroftheproductobtainedlocallyandofthesamenature
astheproductreceivedasaidorofanyproductsorby-productsresulting
fromit.
ARTICLEVIII
TherecipientcountryundertakestoinformtheEuropeanEconomicCommunityhov:
thisAgreementisbeingimplemented .TothisenditshallprovidetheCommission
oftheEuropeanCommunitieswiththefollowinginformation :

-3-
(i)Notlaterthanthirtydaysaftertheunloadingofeachcargo:
portsanddatesofarrivalofthevessel;nature,quantityand
qualityoftheproductsunloaded;dateonwhichunloadingwas
completed;
(ii)Everythreemonthsuntilthequantitiesreceivedasaidhave"been
fullyused:quantitiessold,howtheyhavebeensold,sellingprices;
normalsellingccstsontherecipientcountry'smarket;
(iii)On15Januaryeveryyearuntilthespecialaccounthas"beenfully
used:
(a)Sta.teofthisaccount(incomingsand-outgoings)on31December
ofthepreceding ,year;
(b)Processachievedintheprojectorprojects,withanindication
ofthetotalamountoffinancingundertakenatthatstage.
AÎÎTICL3IX
Attherequestofeitherofthem,theContractingPartiesshallconsulteach
otheronanyquestionsconcerningtheimplementation ofthisAgreement.
\*
ARTICLE X
ThisAgreementisdrawnupinduplicateintheDanish,Dutch,Ehglish,French,
GermanandItalianlanguages,eachofthesetextsbeingequallyauthentic.

AKMi'iXTOAHTICL3IIIOPTIl-DAGRES-EET
Article1
DeliveryshallbeeffectedandrisksshallpassfromtheEuropeanEconomic
Communitytothorecipientcountryatthemomentatwhichthegoodshave
beenplacedintheship'sholdatthoportofshipment.
Therecipientcountryshallbearallcostssubsequenttodeliveryofthegood
includingcostsofstowageand,whereappropriate ,oftrimmingandbagging.
Anydemurragecostsordispatchattheportofshipment ,shallbeachargeon
orforthebenefitoftheEuropeanEconomicCommunityandshallbedetermined
beforethevesselsails.Theratesanddetailedarrangements relatingthereto
laiddowninthecontractbetweentherecipientcountrysjidthecarriermust
havebeenagreeduponinadvancebythorecipientcountryandtheauthorised
agentoftheEuropeanEconomicCommunityreferredtoinArticle9«
Article2
TheEuropeanEconomicCommunityshallnotiiytherecipientcountryingood
timeoftheportorportsofshipment,thequantitiestobedeliveredateach
port,theperiodwithinwhichloadingmustbegin,andthedailyloadingrate.
*•
Article3 »'
TheEuropeanEconomicCommunitymustbepreparedtoloadthegoodsontheda.*c
resultingfromtheinstructions inArticle8,whereonthevesselshouldbe
readyforloading. ->
Article A
Ondeliveryofthegoods,aloteranceof5^lessthanthequantitytobe
suppliedinaccordancewithArticle1oftheAgreementispermitted.

Article S
Once "thegoods areonboard thevessel ,theEuropean Economic Community shall
notify therecipient country ofthedate ofloading ,andthequantity and
quality ofthegoods asrecorded onloading .
Article o
Tnerecipient country shall supply theEuropean Economic Community ,within the
period referred toinArticle 2,with avessel ofdimensions corresponding to
thenormal loading potential ofthe port ofshipment .
Should itprove impossible forthevessel tobegin loading v/ithin theperiod
referred toinArticle 2andshould therecipient country nothave notified
theEuropean Economic Community ofthis fact inwriting atthelatest bythe
date onwhich thevessel should beready forloading inaccordance with Article
thegoods shall beatthedisposal oftheEuropean Economic Community .
Whatever thecircumstances ,thegoods shall beheld atthe expense ,risk and
peril oftherecipient country .
Article 7
Should therecipient country fail toprovide avessel ofsuitable tonnage or
ifthequantity made available forloading onavessel ofsuitable tonnage
cannot beputonboard initsentirety because ofcircumstances beyond the
control oftheEuropean Economic Community ,thebalance shall beloaded onto
the next vessel under the conditions laid down inthis annex .
Inthis event ,until thedate ofloading ofthis balance oruntil therecipient
country gives notice inwriting that itgives upthis balance ,thegoods shall
behold attheexpense ,risk and peril oftherecipient country .
Therecipient country must notify theEuropean Economic Community within a*
period ofamaximum of30days' from the -beginning ofloading oftheshipment
towhich these goods should have belonged ,ofthedate onwhich loading of
this balance isduetobegin "orofitsrenunciation ofthis balance .

Ifthisobligationisnotrespected ,theEuropeanEconomicCommunitymay
considerthatithasdischargeditscommitmenttotherecipientcountryunder
Article1oftheAgreement.
Article3
TherecipientcountryshallnamefortheEuropeanEconomicCommunitythe
vesselthatistoshipthegoodsatleast10cleardayspriortotheestimated
dateofarrivalofthevesselinpartor,wherepossible,20cleardaysprior
tothisdate,andshallatthesametimeindicatehowsoonafterthatdate
thevesselwill"bereadyforloading.
Therecipientcountryshallinsertinthecharterpartyaclauserequiring
thecaptaintoinformtheEuropeanEconomicCommunityatleast72hoursin
advanceofthevessel'sestimateddateofarrivalinport.
Article9
ToimplementtheprovisionsofthisAnnex,theEuropeanEconomicCommunity
shallappointanauthorizedagent,whosenameandaddressshall "bemadeknown
ingoodtimetotherecipientcountry.
Therecipientcountryshallnominateareceivingagentineachportofship-
V
ment,whosenameandaddressshallhemadeknowntotheEuropeanEconomic
CommunitybeforetheAgreementisimplemented.