ARCHIVESHISTORIQUES
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COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(73)1497
Vol.1973/0261

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COMMISSION OjFTHEEUROPEAN COMMUNITIES
COM(73)1497 final
Brussels .7September 1973
RECOMMENDATION FOR A
COUNCIL DECISION ■- .
ontheconclusion ofanagreement "between theEuropean Economic
Community and .theArab Republic ofEgypt forthesupply offlour
ofsoft wheat asfood aid
(submitted totheCouncil bytheCommission )
COM(73 )1497 final

THECOUNCILOPTHEEUROPEANCOMMUNITIES ,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
andinparticularArticles113,114and228thereof§
HavingregardtotheRecommendation fromtheCommission !
WhereastheEuropeanEconomicCommunityhasdepositedaDeclarationfor
provisionalapplicationofthe1971PoodAidConventionjwhereasthat
Conventionhasbeenapplicablesince1July19711
WhereastheArabRepublicofEgypt,byitslettersof29November1971and
23August1972hasrequestedfoodaidj
WhereasinviewofthecerealsupplysituationintheArabRepublicof
Egypt-thatcountryshouldbeaccorded,bywayofgift,20000metrictons
ofsoftwheatundertheCommunityFoodAidProgrammefor1971/72and
13000metrictonsofsoftwheatforthe1972/73programme.Theamountof
33000metrictonsofsoftwheatwillbeprovidedintheformof21854
metrictonsofflourofsoftwheat.
DECIDES s
Article 1
OnbehalfoftheEuropeanEconomicCommunityanagreement,thetextwhereof
isannexedhereto,shallbeconcludedbetweentheEuropeanEconomicCommunity
andtheArabRepublicofEgyptforthesupplyofflourofsoftwheatasfood
aid.
Article 2
ThePresidentoftheCouncilisherebyauthorisedtodesignatethosewho
aretosigntheagreementandtoconferonthemtherequisitepowerstobind
theCommunity.
DoneatBrussels,
FortheCouncil
ThePresident

AGREMENT
BETWEENTHEEUROPEANECONOMIC COMMUNITY ANDTHE
ARABREPUBLIC OPEGYPT
CONCERNING THESUPPLYASPOODAID
OPPLOUROPSOFTWHEAT

THECOUNCILOFTHEEUROPEANCOMMUNITIES ,
ortheonepart,
THEGOVERNMENT OPTHEARABEREPUBLICOPEGYPT,
oftfceotherpart,
KA3TEDECIDEtoconcludethisAgreementand.tothisendhave
designatedastheirplenipotentiaries :•
•*•
THECOUNCILOPTHEEUROPEAN COMMUNITIES ■:■
THEGOVERNMENT OPTHEARABREPUBLIC OFEGYPT:
WHOHAVEAGREEDASFOLLOWS:

ARTICLEI
TheEuropeanEconomicConrcmnityshallsupplytheArabRepublic
ofEgypt,hereinafter -referredtoasthe"recipientcountry"with
33000metrictonsofsoftwheatofwhich20000tonsformingpart
ofitsfood.AidProgrammefor1971/72and13000tonsofthe1972/73
programmed.Theamountof33000metrictonsofsoftwheatwillbe
providedintheformof21854metrictonsofflourofsoftwheat.
ARTICLEII
DeliverieswillbemadefobtoCommunityportsinnew
jutesacksofanetweightof67,435kgeach(150lbs).
ARTICLEIII
Theobligations andresponsibilities oftheEuropean
EconomicCommunityandoftherecipientcountryrelatingto
deliveryandthetakingofdeliveryaredefinedintheAnnex,
whichformsanintegralpartofthisAgreement.
ΑΡ.ΤΤΓΙΞIV
Therecipientcouioiu-yundertakestomakeallnecessary
arrangements forthetransportandinsuranceoftheproduct
fromportsofshipmenttoplacesofdestination.
Itundertakestoexercisethegreatestpossiblecareto
ensurethatthetenderingarrangements forthetransportby
seaarenotprejudicialtothefreeplayoffair:competition.
Anyproblemsarisinginthisconnectionshallbethesubject
ofconsultations underArticleIXofthepresentAgreement.
ARTICLEV
Therecipientcountryundertakestousetheproductreceived ,
asaidforpurposesofconsumption andtoapply,forthesaleof
theproductenitsmarket,thepricesnormallychargedonthat
marketforproductsofcomparablequality.
./.

Theproceedsfromthissale,lessthecostofseatransport,
insuranceandthenormalcostofsellingtheproductonthe
recipientcountry'smarket,willbepaidintoaspecialaccount
andallocatedtothefinancingofoneormoredevelopment schemes
■whichhavealreadybeenproposedbytherecipientcountryand
approvedby.theEuropeanEconomicCommunity.
ARTICLEVI
TheContractingPartiesundertaketoimplementthisAgreement
insuchawayastoavoidanyprejudicetothenormalstructureof
domesticproductionandinternational trade.Tothisendthey
shalltakeanymeasuresrequiredtoensurethataidsuppliesare
inadditionto,anddonotreplace,businesstransactions which
mightreasonablybeexpectedintheabsenceofsuchsupplies.In
particular,therecipientcountryundertakestoimportcommercially
fromwhateversourcebetween1July1973and30June19?i-aminimum
quantityof1.700.000metrictonsof'softwheatoritsequivalent
inflourofsoftwheat*
ARTICLEVII ■
Therecipientcountryshalltakeanymeasuresrequiredto
prevent:
1)there-exportoftheproductreceivedasaidandofproducts
andby-productsresultingfromsuchsupplies;
ii)theexport,commerciallyorotherwise,withinsixmontsofthe
lastdelivery,eitheroftheproductobtainedlocallyandof
thesamenatureastheproductreceivedasaidorofanyproducts
resultingfromthe'processingofsuchwheat.
ARTICLEVIII
TherecipientcountryundertakestoinformtheEuropean
EconomicCommunityhowthisAgreementisbeingimplemented .To
thisenditshallprovidetheCommissionoftheEuropeanCommuni­
tieswiththefollowinginformation :
/

i)Hotlaterthanthirtydaysaftertheunloadingofeachcargo
portsanddatesofarrivalofthevessel;nature,quantity
andqualityoftheproductsunloaded;dateonwhichunloading
wascompleted;
ii)Everythreemontsuntilthequantitiesreceivedasaidhave
beenfullyused;quantitiessold,howtheyhave"beensold,
sellingprices;normalsellingcostsontherecipient
country'smarket';
iii)On15Januaryeveryyearuntilthespecialaccounthasfoeen
fullyused:
(a)Stateofthisaccount(incomingsandoutgoings)on
31Decemberoftheprecedingyear;
(b)Progressachievedintheprojectorprojects,withan
indicationofthetotalamountoffinancingundertaken
atthatstage.
ARTICLEIX
Attherequestofeitherofthem,theContractingParties
shallconsulteachotheronanyquestionsconcerningtheimple­
mentationofthisAgreement.
ÂRTICIEX
ThisAgreementisdrawnupinduplicatemtheDanish,
Dutch,English,French,GermanandItalianlanguages,eachof
thesetextsbeingequallyauthentic.

AHÏÏEXTOARTICIEIIIOFTHEAGKEEMEM 1
Article1
Deliveryshallbeeffected;andrisksshallpassfromthe
EuropeanEconomicCommunitytotherecipientcountryatthe
momentatwhichthegoodshavebeenplacedintheship's
holdattheportofshipment.
Therecipientcountry'shallbearallcostssubsequenttodelivery
ofthegoods,includingcostsofstowageand,whereappropriate ,
oftrimingandbagging.-
Anydemurragecostsordispatchattheportofshipmentshall
be„achargeonorforthebenefitoftheEuropeanEconomic
Communityandshallbedeterminedbeforethe,vesselsails.The
ratesanddetailedarrangementsrelatingthertolaiddownin
thecontractbetweentherecipientcountryandthecarriermust
havebeenagreeduponinadvancebytherecipientcountryand
theauthorisedagentoftheEuropeanEconomicCommunityreferred
toinArticle9.
Article2
TheEuropeanEconomicCommunityshallnotifytherecipient
countryingoodtimeoftheportorportsofshipment,the
quantitiestobedeliveredateachport,theperiodwithin
whichloadingmustbegin,andthedailyloadingrate.
Article3
TheEuropeanEconomicCommunitymustbepreparedtoloadthe
goodsonthedateresultingfromthe,instructionsinArticle8,
whereonthevesselshouldbereadyforloading.

Article4
Ondeliveryofthegoods,atoleranceof5%lessthanthe
quantitytobe.supplied .,inaccordancewithArticle1ofthe
Agreementispermitted.
Article5
Oncethegoods,areonboardthevessel,theEuropeanEconomic
Communityshallnotifytherecipientcountryofthedateof
loading,andthequantityandqualityofthegoodsarerecorded
onloading.
Article6
TherecipientcountryshallsupplytheEuropeanEconomic
Community,withintheperiodreferredtoinArticle2,witha
vesselofdimensionscorresponding tothenormalloadingpoten­
tialoftheportofshipment.
Shoulditproveimpossibleforthevesseltobeginloading
withintheperiodreferredtoinArticle2andshouldthe
recipientcountrynothavenotifiedtheEuropeanEconomic
Communityofthisfactimj^ritingatthelatestbythedate
onwhichthevesselshouldbereadyforloadinginaccordance
witharticle8,thegoodsshallbeatthedisposalofthe
EuropeanEconomicCommunity.
Whateverthecircumstances ,thegoodsshallbeholdatthe
expense,riskandperiloftherecipientcountry.
Article7
Shouldtherecipientcountryfailtoprovideavesselof
suitabletonnageorifthequantitymadeavailableforloading
onavesselofsuitabletonnagecannotbeputonboardinits
entiretybecauseofcircumstances beyondthecontrolofthe
EuropeanEocnomicCommunity,thebalanceshallbeloadedinto
thenextvesselundertheconditionslaiddowninthisannex.
/.

Inthis,event,untilthedateofloadingofthis'balanceor
untiltherecipientcountrygivesnoticeinwritingthatit
givesupthisbalance,thegoodsshallheholdattheexpense,
riskandperiloftherecipientcountry.
TherecipientcountrymustnotifytheEuropeanEconomicCommunity
withinaperiodofamaximumof30daysfromthe"beginningof
loadingoftheshipmenttowhichthesegoodsshouldhave"belonged,
ofthedateonwhichloadingofthisbalanceisduetobeginor
ofitsrenunciation ofthisbalance.
Ifthisobligationisnotrespected,theEuropeanEconomic
Communitymayconsiderthatithasdischargeditscommitment
totherecipientcountryunderArticle1oftheAgreement.
Article8
TherecipientcountryshallnametheEuropeanEconomicCommunity
thevesselthatistoshipthegoodsatleast10cleardays
priortottheestimateddateofarrivalofthevesselinport
or,wherepossible,20cleardayspriortothisdate,andshallat
thesametimeindicatehowsoonafterthatdatethevesselwill
bereadyforloading.
Therecipientcountryshallinsertinthecharterpartyaclause
requiringthecaptaintoinformtheEuropeanEconomicCommunity
atleasthoursinadvanceofthevessel'sestimateddateof
arrivalinport.
Article9
Toimplementtheprovisionsofthisannex,theEuropeanEconomic
Communityshallappointanauthorisedagent,whosenameandaddress
shallbemadeknowningoodtimetotherecipientcountry.
Therecipientcountryshallnominateareceivingagentineach
portofshipment,whosenameandaddressshallbemadeknown
totheEuropeanEconomicCommunitybeforethe.Agreementis
implemented .