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DOCUMENTS "COM"
COM(82)227
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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM (82)227 final
Brussels .13th May1982
COMMISSION COMMUNICATION TOTHE COUNCIL
onaidfrom theEuropean Economic Community toUNRWA
/ ^\'î\k./ ' m
U . ■ -/
V "-v . /-.TV
C0M(82 )227 final

SUMMARY
ThepurposeofthisCommission communication totheCouncilistopropose,
underthethree-year Convention (1981-83)concludedwithUNRWA,areduction
inthefoodaidallocatedtothatAgencyandtheprovisionofacorresponding
amountinfinancialaidtohelpcoverthecostsofitseducation programme *
INTRODUCTION
Inthiscommunication ,theCommission proposesthattheCouncilchangethe
emphasisoftheCommunityaidgiventotheUnitedNationsReliefandWorks
C1)AgencyforPalestine Refugees (UNRWA)underthethree-year Convention
(1981-83)concludedbetweentheEECandtheAgency*
Tothatend,andinaccordance withtherequestfromUNRWA,itisproposed
for1982toreducefoodaidwhich'sintendedmainlyforthebasicrations
programme,andtoprovidefinancialaidforUNRWA'seducation programme
intheMiddleEast* >
Thischangeofemphasiswoulddomoretomeettheneedsofthevastmajority
oftherefugeesandwouldreflecttheprioritystatuswhichtheAgency
attachestoitseducation system*Itwouldalso.helptoreduceUNRWA's
financialdifficulties ,whicharethreatening thecontinuation ofits
activities *
I*UNRWA'SFINANCIAL SITUATION ANDITSPROPOSAL TOCONVERTTHEEEC'SFOOD
AID*
A*yNRWA_s_sjtuat ion
UNRWA'smandatehasbeenextendeduntil
thereforeprovide1*900,000Palestinian
andhealthservicesuntilthatdate*June1984andtheAgencymust
refugeeswitheducation,assistance
(1)0*J*L392of31.12*1981 *

However,theAgency,whosefinancing systemismainlybasedonvoluntary
(1)contributions ,isindanger,asaresultofitschronicbudgetdeficit,
I
ofhavingtoterminatenotmerelyitsancillaryactivities butalsothat
partofitsworkthatisdeemedbytherefugeesandtheAgencyitselfto
havethehighestpriority,namelytheeducationof339,000childrenof
Palestinian refugees,
UNRWA'sschoolswerealready .underthreatin1980andthisyearagain
US220miohastobefoundVerysooniftheclosureof643elementary
andpreparatory schoolsandthedismissalofsome9,800Palestinian teachers
istobeavoided,
Inthesecircumstances ,UNRWAhasbeenurgingtheCommunityfortwoyears
(2)nowtobearaproportion ofthecosts'oftheeducation programme ,either
directly-aswasdonein1974-orbyenablingtheAgencytosellthe
foodaidandusethecounterpart fundsthusobtainedforitseducationpro­
gramme.
Forvariousreasons,ithas-notbeenpossibletogiveafavourable response
totheUNRWA,particularly asregardsthesaleofproducts.
B,UNRWA_sproposai .
Sincethethree-year Convention covers1982,quantities ofproductshave
beenearmarkedintheyear'sfoodaidprogrammes.
(4)Thefoodaidearmarkedfor1982isworthapproximately 26,28mioECU
atworldprices^andwillmakeitpossibletodistributemonthlyrations
offlour,butteroil andsugarto824,000refugeesandfeedapproximately
35,000childrenunderasupplementary programmefinancedentirelybythe
Community (costestimatedat6,44mioECU(worldprices)and7,76mioECU
(internalprices), .
(1)Budgetenvisagedfor1982:expenditure :USS250,3mio
revenue :USS186,6rrno
déficit :USt63,7mio
(2)Requestpresentedin1980,
(3)Exceptional financialaidofUS28,8miowasallocatedtotheeducation
programme .
(4)Thisfoodaidis'included intheConvention signedbetweentheEECand
UNRWAfortheperiod1981-83,
(5)39,80mioECUatinternalprices,
(6)Costestimatedat^>84mioECU(worvdprices)and32,04mioECU(internal
prices),!',/,
»'

UNRWA hasindicated that theeducation programme haspriority and that as
aresult itwould bepossible todrop part ofthe food aid iftheCommunity
could replace that aid with anequivalent cash contribution .Thepresent
food aidprogramme isnotconsidered tobesuperfluous butonly oflesser
priority given theAgency 'sfinancial difficulties -UNRWA istherefore
requesting that this form ofaidbecontinued onthebasis ofthefollowing
arrangements :
-aprogramme forthedistribution ofrations tocategories inparticular
need (widows ,orphans ,theelderly ,thehandicapped andthe sick ,approx .
60.000 to70.000 persons )atanestimated cost of3mioECU atworld
prices ;
-aprogramme offood support forboarding students following vocational
training courses (4.200 persons )atanestimated cost ofsome 350.000 ECU;
-themaintenance ofthe supplmentary feeding programme ,which would be
stepped uptotake in (children uptothe age ofeight andnot six as
atpresent )atanestimated cost ofsome 6,3 mio ECU.
Since theother programmes areconsidered tobeless essentiaL than the
education programme ,itwould bepossible tofree from thetotal aid envi­
saged bytheCommunity aresidual contribution ofsome 16,5 mio EClf atworld
(1)prices ,which would represent the EEC'sfinancial contribution tothe
education programme .
This programme accounts for57%ofUNRWA 'stotal budget (i.e. USt143,3 mio )
outofageneral budget ofUS2250,3 mio.Italso represents 50Xof
UNRWA 'sdeficit (i.e. USS33,1 mio).Accordingly ,contributions amounting
toUSt20miomust beannounced before theendofApril ifUNRWA isto
avoid the dismissal of9.800 teachers and the closure ofthe schools atthe
endoftheschool year inMay /June ,thereby depriving some 339.000 pupils
ofeducation facilities .
Itshould "be'notea rnat any conversion L~o-r !food aidcould only take
place onthe "basis ofworld prices ,which -alone reflect thobenefit
which theAgency derives from thefood aid.However ,UNRWA wishes
toconvert onthebasis ofinternal prices ,which would double the
amount offinancial aidtobeallocated totheeducation r>*og "imme .

II,POSSIBLE COMMUNITY ACTION
FacedwiththisrequesttoredirecttheCommunityfoodaidtowardsthe
categories inthegreatestneed-whichcorresponds toarecognizedprinciple-
andtohelpmeetaneedconsidered bytherecipientstohavepriority,
namelyeducation,theCommunitycouldrespondfavourable subjecttotwo
!
requirements :
-thattheimpactofthefoodaidbeimproved;
-thattheoverallamountofaidtoUNRWAshouldremainexactlytheSame.
A,Imgrovjn2_the_imgact_of_the_food_aid
1,Thisconcentration offoodaidwouldprobablymakeitpossibletorestrict
thesupplyofproductstothepopulation groupsinthemosturgentneed.
Furthermore,theaidcouldbeincorporated inprojects:theimplementary
feedingprogrammecouldbebroughtunderthehealthservicesumbrellasince
itinvolvesnutritional support,whiletheprogrammeoffoodsupportfor
boardingstudentsinvocationaldrainingcentreswouldbelinkedtothe
education programme.
2.Furthermore,itwouldbepossibletorespondtoUNRWA'srequestforthe
(1)supplyofawiderrangeofproducts,thecostofwhichwouldbecounted
againsttheappropriation initem9240ofthe1982budget:.
Thetotalfoodassistance whichcouldbemaintained underthe1981-1983three
yearConvention wouldamounttosome10mioECU.
(1)439T.ofpreserved meat,360T.oftomatoconcentrate,328T.of
crackedwheat,75T.oflegumesforanamountofabout1.05MECU
(creditavailable 5MECU).

5.
B. KeeB_the^oyeral__amount_of_aid _>to_yiN.R<1WiAA_exact l^the_same
Inview oftheCommunity 'scommitments totheAgency (three-year
convention ),theAgency 'sdifficult financial situation anditsspecial
role intheMiddle East ,there canbelittle question ofreducing the
total amount ofaidwhich theCommunity allocates tothis body .
TheCommunity should therefore give afavourable response totheUNRWA
request that itparticipate inthefinancing oftheeducation programme
tothe tune of16million ECU (1)inboth 1982 and 1983 .
TheCommunity 'sfinancial participation intheeducation programme
could take thefollowing forms :
-thefinancing ofpart ofUNRWA 'swagebill for itsteaching staff in
Jordan (total cost USt29.4 million );
-orthefinancing ofpart oftheexpenditure relating .totheprimary
cycle ofUNRWA 'sgeneral education programme inallgeographical
areas within itspurview total cost USS32.1 million ).
IftheCouncil were able togive itsagreement tosuch anapproach 1,the
Commission would present therelevant budget proposals attheappropriate
time .Atthe .same time ,itwould propose totheCouncil anychanges in
theregulations that might benecessary andthechanges ;tobemade in
thethree-year convention (1981-1983 ). '
INCONCLUSION
TheCommission proposes that theCouncil give afavourable response to
UNRWA 'srequest that theCommunity provide theAgency with less food aid
while broadening therange ofproducts supplied andparticipate tothe
tune of16million ECUinthefinancing oftheeducation programme
implemented byUNRWA inboth 1982 and1983 under theEEC-UNRWA three -
year convention .
(1)Value of "foodaidatpresent :26million ECUatworld |pri <;e,
value ofreduced food aid :10million ECU .

VALUEOFTHEPROPOSED FOODAIDTOViMRWAFOR1982ÀiNNEXT
Basicrationsprogramme
Valueofgroducts
Cereals
MiLk
Butteroi L
Sugar37.802t(175-258)
196t(1.098-1.629)
3.735t(2.480-4.473)
6.000t(400-650)World
pricesInternai
prices
(inmillionECU)
(1)
Totalvalueofproducts:
Contribution_towards_trans eort:36,4x37.524t:
Totalvalueofthebasicrationsprogramme :6,61
0,21
9,26
2,40
-i
18,48
1,36
19,849,75
0,32
16,71
3,90
30,68
1,36
32,04
Supplementary feedingprogramme
Vii!ye_of_E>roduct s
Cereals:3.750t(175"175"
220χ258.
(377(527'
Milk
Butteroil
Sugar1.165tC1.098-1.629)
185t(2.480-4.473)
97t(400-650)
Financialcontribution :US84.808.000(:USt0,66
1,28
0,46
0,04
2,44
1ECU)+4,00
Totalvalueofthesupplementary feedingprogramme :;6,44
Plannedtotalcost: 26,230,97
1,90
0,83
0,06
3,76
+4,00
7,76
39,80
EstimatedtotalvalueofUNRWA'sreducedrequest:-9,66-12,13
Theoritical possiblesaving: 16,62 27,66
(1)Onthebasisofthehypothesisretainedforthe1982budget.

REDUCEDREQUEST FORFOODAIDFOR1982ANNEXII
Quantities
WPValue
IP
Supplément aryprogramme
Products
MiIk :
Butteroil :
Sugar :.165t"
185t
97t1.447t1,28
0/46
0,04(1)
1,90
0,83
0,06
1,78 2,79
Casesofneed
Products
MiLk
Butteroil :
Sugar :
Otherproducts582t
437t
582t
978t2.579t0,64
1,08
0,23
1,050,95
1,95
0,38
1,05
3,00 4,33
Vocational trainina
Products
Milk
Butteroil
Sugar
Otherproducts48t:
40t:
58t:
170t
3316t0,05
0,09
0,02
0,25
i
0,410,08
0,18
0,04
0,25
0,55
Totslvalueproducts 5,19 7,67
Cashcontribution -supplmentary
programme (1ECU:t1.1)
Cashtransport (S40)(£1.1.s1ECUj4,37
0,104,37
0,1C
TOTAL 9,66 12,14
(1)Onthebasisofthehypothesis retainedforthe1982budcet..

COMPARATIVE COSTSOFTHESCHEDULED ANDREDUCED FOODAIDTOUNRWA.
PROPOSED FOODAID REDUCED FOODAID
QuantitiesValue
QuantitiesValue
WΡ IΡ WΡ IΡ
CEREALS 42.000t7,27 10/72- - -
MILK 1.360t 1/49 2/22 1.795t 1/97¿.93
BUTTEROIL 3.920t 9/7217/54 662t- 1/63 2/96
SUGAR 6.097t 2/44 3/96 737t 0/290/48
CASH-+4/00+4/00-+4/37+4/37
FLATRATECONTRIBUTION -
TRANSPORT
OTHERPRODUCTS1/36 1/36
1.148tÒ/10
*1/300/10
1/30
–TOTAL 26/2839/80 9/6612/14

ANNEX IV
THE UNRWA EDUCATIVE SYSTEM
1.FIGURES (1)FOR 1981
Number Number Refugee Refugee Refugee
of of pupi Is pupi Is pupi Is Total
schools teachers in in government refugee
elementary preparatory and pupi Is
classes classes private
Jordan 204 3.692 95.599 34.575 28.037 158.211
West Bank 99 1.243 27.920 10.011 26.278 64.209
Gaza 137 2.078 55.035 18.839 15.700 89.574
Lebanon 85 1.260 24.815 9.274 7.558 41.647
Syria 110 1.401 32.455 12.701 12.399 57.555
Total 635 9.674 235.824 85.400 89.972 411.196
2.BUDGET COSTS (1982 forecast )(inUStmillion )
I. General education :
-elementary primary
-upper primary
-other activities64,6
40,6
9,7
II.Vocational andtechnical training :14,8
III .Common expenditure :13,6
Total budget fortheeducation programme :143,3
(1)Tothese figures must beadded 3.666 students atvocational and
technical training centres and365holders ofschoolships forhigher studies .