ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(75)64
Vol.1975/0024

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COMMISSION OFTHEEUROPEANCOMMUNITIES
COM(75)64final
Brussels,21February1975
PROPOSAL FORA
COUNCILDECISION
concerningthefinancingbytheCommunityofcertainexpenditure onfoodaid
suppliedtoBissauGuineaandtheCapeVerdeIslandsunderthe1974/75programme
PROPOSAL FORA
REGULATION (EEC)OFTHECOUNCIL
layingdownrulesforthesupplyofskimmedmilkpowderasfoodaid
toBissauGuineadntheCapeVerdeIslands
PROPOSAL FORA
REGULATION (EEC)OFTHECOUNCIL
layingdowngeneralrulesforthesupplyofbutteroilasfoodaid
toBissauGuineaandtheCapeVerdeIslands
PROPOSAL FORA
COUNCILDECISION
ontheopeningofnegotiations withBissauGuineaandtheCapeVerdeIslands
forthesupplyofskimmedmilkpowderandbutteroilasfoodaid,andonthe
advancedimplementation oftheagreementnegotiatedwiththecountry
(submittedtotheCouncilbytheCommission)
COivI(75)64final

COMMISSION COMMUNICATION TO
THECOUNCILCONCERNING APOODAID
ACTIONFORGUINEABISSAUANDCAPE
VERDEISLANDS

Communication from the Commission tothe Council
I–Food aid toGuinea Bissau
1.Inthese first months ofitsindependence (obtained inSeptember 1°74 )
Guinea Bissau isfaced with difficult economic problems ,among the
most serious ofthem the inadequacy ofitsfood supplies .The
circumstances preceding itsindependence resulted inthe total dis­
organization ofthefood crop production ofcertain regions ;efforts
toreorganize theproduction andmarketing ofagricultural products
(seotors oocupying more than 90%of$helabour force )have asyetnot
produced adequate results .
Lacking themeans ofpayment enabling ittobuyfood products on
foreign markets ,theGuinea Bissau Government hasapproached the
Cemmunity with arequest for aid toface itsdifficulties b;-pro­
curing itfood aidintheform ofcereals ,milk products andsugar .
TheCommission considers that theCommunity should respond favour­
ably (with theexception ofsugar ,forwhich thenecessary appropria­
tions were notprovided inthe1975 budget )totherequest made by
this country ,which incidentally indicated itsdesire todevelop clone
relations with theEEC ,since itdecided asearly asDecember 1974
tojoin thegrovp ofACP countries andwill beasignatory tothe
future Lome Convention .
2.Statistics concerning thecountry 'ssupplies aredifficult to
collect .Itsadministration isstill weak and itsfact-finding
'? '
machinery isparticularly limited .The information supplied by
theMinistry ofFinance shows ,however ,that for cereals and in
1particular rice ,which constitutes thepopulation 'sstaple diet ,
consumption isestimated toexceed production by30000metric tonr
(production 70000t,consumption 100000t).
Annual imports ofrice amounted toapproximately 25000metric tons
before independence .

2.
Tohelp-offsetthisdeficit,theCommissionconsidersitreasonable
toproposeagrantof3000metrictonsofcereals,,whichwould
correspondtothreemonths*consumption (ona"basisof10leg/
month)forabout100000persons.
Formilkproductsnooverallfigureisasyetavailable.The
GuineaBissauatvthorities have,however,indicatednotonlythat
therewerenormalsupplyneedsnotcoveredbyproduction,butalso
thattheywishedtomakefreedistributions offoodtoschool­
children.
TheCommissionconsidersthattheOommunityshouldgrant250
metrictonsofskimmed-milk powdertothiscountry,anamount
whichwouldcorrespondtoitsannualimportsinnormalyearsand
XTOuld,onthebasisofthecriteriatakenintoconsideration
underthe1974milkprogramme,covertheminimumrequirements of
100000personsforthreemonths.-
Asregardsbutteroil,theauthoritiesstatedthattherewasconsi­
derabledemandforoilsandfatsastheproductionofgroundnuts
waswaning.TheCommissionconsidersthatthisrequestshouldbe
metbygranting360metrictonsofbutteroil;onthebasisofthe
criteriatakenintoaccountwhenthe1975butteroilprogrammewan
drawnupthiswouldcorrespondtothedailyconsumption ofapprox­
imately100000personsforsixmonths.
Thequantitiesproposedshouldbechargedagainst:
i.thereserveof29t500metrictonsprovidedforim&erthe1974/75
oerealsprogramme;
ii.themilkproductsprogrammesplannedfor1975(asanadvance),
Theestimatedcostoftheseoperationsandthebudgetitemagainst
whichitwouldbechargedaregivenintheattachedfinanoialannex.
2Outofatotalpopulationestimatedatapproximately 600000.

3.TheGuinea Bissau authorities ,whohave setupadistribution
system baedonanetwork ofstores serving thepopulation and
permitting some oontrol ofthelevel ofconsumer prices ,wish to
"beauthorized tosell 75$oftheproducts supplied "bytheCommunity
1through this network ,therest tobedistributed free ofcharge to
sections ofthepopulation which have nopurohasing power orare
particularly vulnerable (forinstance milk toschool-children ).
4.Inview ofGuinea Bissau 'sparticularly difficult financial situa /~
tion theCommission proposes that theCommunity bear the cost of
transporting theproposed aid cif .
II-Food aidtothe Cape Verde Islands
The Cape Verde Islands ,which are atpresent under thejoint admini­
stration oftheAfrican Party fortheIndependence ofGuinea Bissau
andtheCape Verde Islands andthePortuguese authorities ,are ina
situation which isperhaps still more serious than that ofGuinea
Bissau .
Under thearrangement snormally required bytheCommunity (counterpart fund )

4.
Accordingtoinformationcommunicated "byUHDRO,annualconsumption
ofcerealsamountstoapproximately 50000metrictons*;estimates
ofmilkproductrequirements arenotavailableatpresent.
Asfoodrequirements willhaveto"becoveredentirely "byimports
andasitispossiblethattheaidgrantedbyPortugalinthepant
($30millionin1974,mainlyforthepurchaseoffoodproducts)
maybereducedsharply,thetransitional Governmenthasappealed,
throughtheUN,totheinternational communityforaidofapproxi­
mately$20million,mainlytocoverthepopulation'sfoodrequire­
ments.
«'
Accordingtopresentinformation ,theWPPhasmadeprovisionfor.
$2.1millionofaidforthesupplyofcerealsaspartofdevelop­
mentprojeots;Senegalhasmadeanemergencydeliveryof1000
metriotonsofmaize.
ThePresidentoftheRepublicofSenegalhasapproachedtheComm­
issiononthesubjectofthedifficulties facingthepopulationof
theCapeVerdeIslandsandhasurgedtheCommunitytograntit
foodaid.
TheCommissionconsidersthatthisrequestshouldbemetbythe
grant,asaninitialmeasureandpendingadditionalinformation ,
onacifbasisof:
1500metrictonsofcereal
150metrictonsofmilkpowder
100metrictonsofbutteroil.
ThesequantitieswouldenabletheauthoritiesoftheCapeVerde
Islandstodealwiththemostpressingneeds.
Forapopulationof260000.

Inconclusion,theCommissionproposesthattheCouncil:
i.Décidétogrant:
foodaidmtheformof3000tofcereals,250tof
skimmed-milk powderand350"bhutteroiltoGuinea
Bissau; >
foodaidintheformof2500tofcereals,I5Otof
milkand100tofbutteroiltotheCapeVerdeIslands.
ii.Bearthetransportcoststothecifstagefortheseproducts.
iii.Authorizetheadvanceimplementation oftheseoperations .
iv.Adoptinconsequence :
TheproposalforaCounoilDecisiononthefinancingby
theCommunityofexpenditure concerningfoodaidfor
GuineaBissauandtheCapeVerdeIslandssuppliedunder
the1974/1975programme.
Theproposalfora.CouncilRegulation (EEC)Nolaying
downgeneralrulesforthesupplyofskimmed-milk powder
asfoodaidtoGuineaBissauandtheCapeVerdeIslands.
TheproposalforaCouncilRegulation (EEC-).JTolaying
downgeneralrulesforthesupplyofmilkfatsasfood
aidtoGuineaBissauandtheCapeVerdeIslands.
TheproposalforaCouncilDecisionon-theopeningof
negotiations withGuineaBissauandtheCapeVerde ■
Islandsforthesupplyofskimmed-milk powderand"butter-
oil.asfoodaid,andtheadvanceimplementation ofthe
agreementsnegotiatedwiththosecountries.
Theseproposalsareannexedtothisdocument.

FINANCIAL ANNEX
Costatinteriorcommunitypricesandbudgetaryattribution
Quantîty
metrictonsUnitprice
ua/TTotalvalue
uaBudgetary
attribution
BISSAUGUINEA
Cereals
Rawmaterials
Transport
Skimmedmilkpowder
Rawniaterials
Transport3-000
3000
250
250140■"
40
835,5^
120420.000
120.000
208.875
30.000)budget75
\items9201,6001'and6101
)budget75
)items9211and6201
Butteroil
Rawmaterial
Transport350
35023512)
130822850
45500)budget75
)items9212and6201
Total
\1647225
CAPEVERDE
Cereals
Rawmaterial ^
Transport
Skimmedmilkpowder
Rawmaterial
Transport
Butteroil
Rawmaterial
Transport2500
2500
150
150
100
100I
1403'
40
835,51'
120
23512>
130350000
100000
'
125325
18000
235100
13000)budget75
)items9201,6001
)and6101
)budget75
^items9211and6201
)budget75
)items9212and6201
Total
i841.425
aaasas8SsasaaB38sac
GRANDTOTAL 2488650
1)Interventionprice74/75829,5ua/T+deliveryfob(6ua/T)
2)Derivedinterventionprice,includingcostoftransformation :2435ua/T+deliveryFOB
(6ua/T)
3)Marketprice(136ua/T)calculatedattheaveragetargetpricefromJanuarytoJuly74+
deliveryFOB(4ua/T).

Proposaifora
COUNCILDECISION
»
concerningthefinancing "bytheCommunityof
oertainexpenditure onfoodaidsuppliedto
BissauGuineaandtheCapeVerdeIslands
underthe1974/75programme.
THECOUNCILOPTHEEUROPEANCOMMUNITIES ,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity }
HavingregardtoCouncilRegulation(EEC)no.1703/72^^of3August1972
amendingRegulation(EEC)no.2052/69concerningthefinancing "bythe
Communityofexpenditureresultingfromtheimplementation ofthePoodAid
Conventionof1967andfixingtheRegulationsfortheFinancing "bythe
Communityofexpenditurearisingfromtheimplementation ofthe1971Pood
AidConvention,andinparticularArticle8^^andArticle10^^thereof;
HavingregardtotheproposalfromtheCommission ; .
Whereas,inviewoftheeconomicdifficulties whichexistinBissauGuinea
andtheCapeVerdeIslands,theCommunityshouldbeartheoostsofdelivering
ciffoodaidintheformofcereals,
HASDECIDEDASF0LL0WS:
'SoleArticle
ForthepurposeoftheCommunity'sfood-aidactivitiesinrespectofBissau
GuineaandtheCapeVerdeIslandsunderthe1974/75PoodAidProgramme
Communityfinanoingshallextendtothecostofdeliveringtheproductscif.
DoneatBrussels,
FortheCouncil
ThePrésident
(l)O.J.no.L180,8.8.1972,p.1

î
PROPOSAI ,FORA• '
t
REGULATION (EEC)NO.OFTHECOUNCIL |
layingdownralesforthesupplyofskimmed-milk powder
asfoodaidtoBissauGuineaandtheCapeVerdeIslands.
THECOUNCILOPTHEEUROPEANCOMMUNITIES ,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
HavingregardtoCouncilRegulation(EEC)No.804/68(l)of27June1968on
thecommonorganization ofthemarketinmilkandmilkproducts,aslastamended
byRegulation(EEC)No.662/74(2),andinparticularArticle7(4)thereof;
HavingregardtotheproposalfromtheCommission;
WhereasBissauGuineaandtheCapeVerdeIslandsindicatedtheirrequirements
asregardshigh-protein milkproducts;whereasthesehigh-protein productsmay
besuppliedintheformofskimmed-milk powderstockedbytheintervention
organisations ;
Whereasthesupplyofskimmed-milk powdermusttakeintoaccounttheamountsof
skimmed-milk powderavailableintheCommunityandtheneedtoavoiddisturbing
themarket|thattheamountsatpresentavailableenable400metrictonsof
skimmedmilkpowdertobesupplied;
Whereas,toenabletheaidtobeusedeffectively ,arrangements shouldbemade
tofinancedeliverytothecifstage;
Whereasthesuppliesmustbedeliveredatthelowestpossibleprice;whereas
inordertoachievethataim,atenderingprocedureshouldbeprovidedfor;
whereas,however,itmaybedesirable,intheinterestsofflexibility and
speed,tohaverecoursetocontractsbymutualagreement;
(1)O.J.No.L148,28.6.1968,p.13
(2)O.J.No.L85,29.3.1974,p.5

-2-
HASADOPTEETHISREGULATION :
Article1
ThereshallbemadeavailableasfoodaidtoBissauGuineaandtheCapeVerde
•Islands350metrictonsofskimmed-milk powder:
(metrictons)
BissauGuinea 250
CapeVerdeIslands 15'0
Article2
1.Theskimmed-milk powderreferredtoinArticle1shallbepurchasedin
accordancewiihArticle7(l)ofRegulation(EEC)NO.804/68.
Article3
ForthepurposesreferredtoinArtiole1,thecostofthelabellingand
deliveryoftheskimmed-milk powdertothecif-stageshallbebornebythe
Community.
Article4
TheexpenditurereferredtoinArticle3,shallinprinciplebedetermined
bytenderingprocedure,or,ifthecircumstances warrantit,bycontractsby
mutualagreement.
Article5'
ThisRegulationshallenterintoforceonthethirddayfollowingitspublication
intheOffioialJournaloftheEuropeanCommunities .
TheRegulationshallbebindinginitsentiretyanddirectlyapplicableinall
MemberStates.
DoneatBrussela,
FortheCouncil
ThePrésident

PROPOSAL FORA
REuJLATION (EEG)OPTHECOUNCIL
layingdowngeneralrulesforthesupplyofbutteroilasfood
aidtoBissauGuineaandtheCapeVerdeIslands.
THECOUNCILOPTHEEUROPEANCOMMUNITIES ,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity;
HavingregardtoCouncilRegulation(EEC)No.804/68(l)of27June1968on
thecommonorganization ofthemark&tinmilkandmilkproducts,aslast
amended "bythe.Regulation (EEC)No.662/74^^a^dj.nparticularArticle6(6)
thereof;
HavingregardtotheproposalfromtheCommission ;
WhereasBissauCuineaandtheCapeVerdeIslandshaveindicatedtheirrequirements
asregardsmilkfats;
Whereasitwillnotbepossibletodisposeofthequantitiesofbutterheldby
interventionagenciesonnormaltermsduringthecurrentmdlkyear;whereas
itispossibletosupplyfoodaidintheformofbutteroil,.madefrombutter
inpublicstocks;
Whereastoenableeffectiveusetobemadeoftheaid,provisionshouldbe
madeforthefinancingoftransportation tothecif-stage;
Whereastheamounttobepaidtoundertakings manufacturing thebutteroiland
certaintransportcostsforthebutterandbutteroilshouldbedeterminedby
competition amonginterestedundertakings established intheCommunity;whereas
theinvitingoftendersisasuitablemeansofachievingthisaim,butforthe
sakeofspeeditmaybedesirabletodealwithexceptionalcasesbycontracts
bymutualagreement.
(1)O.J.No.L148,28.6.1968,p.13.
(2)O.J.No.L85,29.3.1974,P.5.

_HASADOPTEDTHISREGULATION:
Article1
45OmetrictonsofbutteroilshallbemadeavailabletoBissauGuineaandthe
CapeVerdeIslands,madefrombutterheldbytheinterventionorganisations
asfollows:
BissauGuinea 350metrictons
CapeVerdeIslands 100metrictons
Article2
The.Communitywillfinancethecostoftransforming thebutterintobutteroil,
itspackaging,labellingandtransportation costsfromthefactorytothecif
stage.
Article3
Tendersshallbeinvitedfortheexpenditureincurredunderarticle2,or,if
thecircumstances warrantit,bycontractsbymutualagreement.
Article4
Thesumstobepaidtotheundertaking chosenshallbedueonlyif:
(a)theundertakingsatisfiestheconditionslaiddownintheinvitationto
tenderortheprivatecontract;
and ,
(b)thequalityandpackingofthedeliveredproductarefoundoninspection
tocomplywiththerelevantCommunityprovisions.
Provisionmaybemadeforpartialadvancepaymentofsuchsums.
Article5
ThisRegulationshallenterintoforceonthethirddayfollowingitspublication'
intheOfficialJournaloftheEuropeanCommunities.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicable
inallMemberStates.
DoneatBrussels,
FortheCouncil
ThePrésident

Prop®salforaCouncildecisionontheopeningof
negociations withBissauGuineaandtheCape
VerdeIslandsforthesupplyofskimmed-milk
powderandbutteroilasfoodaid,andonthe
advancedimplementation oftheagreement
negociatedwiththecountry.
THECOUNCILOPTHEEUROPEANCOMMUNITIES ,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,and
inparticularArticles113|114and.228thereof;
HavingregardtotheproposalfromtheCommission ;
Whereassuppliesofskimmed-milk powderandbutteroilarenecessaryforBissau
GuineaandtheCapeVerdeIslandsbecauseofthefoodcrisisinthesecountries;
thatitisadvisabletoreplypositivelytothisorisiswithatotalof4-00
metrictonsofskimmed-milk powderand450metrictonsofbutteroilandto
authorizetheCommissiontoopennegotiations withthesecountries.
Whereas,intheinterestsofspeed,theCommissionshouldbeauthorizedtobegin
thesupplyofskimmed-milk powderandbutteroiluponconclusionofthenegotiations ;
HADDECIDEDASF0LL0WSï
Article1
TheCommissionisauthorizedtonegotiateinthenameoftheEuropeanEconomic
CommunitywithBissauGunieaandtheCapeVerdeIslandsagreementsforthesupply
ofskimmed-milk powderandbutteroilasfoodaid.
Thenegotiations shallbeconductedinaccordancewiththefollowingRegulations :
(a)skimmed-milk powder:
CouncilRegulation(EEC)No.of_establishingthegeneralregulations
forsupplyingskimmed-milk powder,asfoodaid,toBissauGuineaand
theCapeVerdeIslands(l)
(b)butteroil s
CouncilRegulation(EEC)NO.ofestablishingthegeneralregulations
.foxsupplyingmilkfatproductstoBissauGuineaandtheCapeVerdeIslands(2)

Article 2
TheCommission isauthorized tobegin thesupply ofskimmed-milk powder and
butteroil upon conclusion ofthenegotiations .
Done atBrussels ,
For the Council
The Président
(1)O.J.
(2)O.J.