I : till 
COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(94) 339 final 
Brussels, 26.07.1994 
Proposal for a 
COUNCIL REGULATION (EC) 
an actions for a free supply of agricultural products destined to the 
population of certain countries in the Caucasus and in Central Asia 
(presented by the Commission) 
EXPLANATORY MEMORANDUM 
Subject: Action for a free supply of agricultural products destined to the populations 
of certain countries in the Caucasus and in Central Asia 
1. Numerous appeals have been addressed to the EU by Heads of States or Governments of 
Georgia, Armenia, Azerbaijan, Kyrgyzstan and Tajikistan addressing the dramatic situation as 
regards food supplies in these countries and requesting the EU for urgent assistance. 
Member States have requested the Commission to come up with a factual analysis of the 
situation, quantifying the needs and indicating possible financial resources. This document is 
annexed to the present communication. 
3. The Commission has preceded with an analysis of the question and has arrived to the following 
conclusions: 
a) the food supply situation in all countries concerned is dramatic. The uncovered balance of 
the most imminent needs amounts to some 414 MECU for the coming six months winter 
period (mid-November to mid-May). This figure takes into account contributions by other 
donors and in particular the US. 
b) in view of the massive engagement of the US in the region concerned, the EU could be 
expected to assume some 50% of the remaining gap of 414 MECU, while the remainder 
should be covered by other donors. 
c) the Commission has engaged in a detailed scrutiny of all available budgetary resources 
and came with the conclusion that the following amounts could be mobilised from existing 
budgetary lines of rubric 4 and other resources: 
- 20 MECU out of the budget line B7/511 (humanitarian food aid) can be mobilised right 
away for food aid to the countries in question. In anticipation of the substantial efforts that 
the Union would be obliged to undertake the Commission decided on 11th July to mobilise the 
amounts which have been earmarked for the region (13 MECU for Caucasus and 7 MECU 
for Tajikistan and Kyrgyzstan). This decision allows the immediate implementation of the 
operation. 
- 5 MECU will be mobilised from budget line B7/515 (humanitarian aid in the FSU). This 
amount shall be taken out of a package of 16 MECU foreseen for the Caucasus in the form of 
energy, shelters and medicines and shall be devoted to food aid only. 
- 10 MECU could be mobilised out of budget line B7/91 (emergency reserve) of 212 
MECU. 
- 4 MECU could be mobilised from the 1994 Tacis budget in order to assure the proper 
implementation of the operation (monitoring, distribution, supervision of counterpart funds 
etc.). 
- In order to meet the objective to provide some 50% of the needs, it is unavoidable to resort 
to FEOGA funds for an amount of 165 MECU. 
Thus the total package for the action would amount to 204 MECU. 
4. There is scope for immediate action given that: 
o supplies would have to be distributed already in October due to the severe fuel and 
transport problems resulting from the harsh climatic conditions prevailing in winter in the 
area. 
• for the use of savings in the 1994 FEOGA budget it would be essential that a decision is 
taken by the Council already in July, as the 1994 FEOGA budget expires on the 15th October 
and there is absolutely no scope in the 1995 FEOGA budget for an action of this type. Carry 
overs need to be considered for credits which will not be engaged. 
• an operation of this kind would necessitate the adoption of regulations of applications 
along with the set up of a sophisticated organisational infrastructure. 
In view of the urgency and taking into account that 39 MECU have been or may be mobilised 
from existing budgetary lines of rubric 4 (20 MECU from B7/511, 5 MECU from B7/515, 10 
MECU from B7/91 and 4 MECU from 1994 Tacis), the Commission proposes to the Council 
to authorise the supply of food products from intervention stocks for an amount of 165 MECU 
by approving the annexed draft regulation during its session on Monday 18th July. 
This regulation follows the lines of similar actions of free supplies of agriculture products. 
In conformity with the joint declaration of the three institutions of 20/02/1992, the 
Commission has invited the two branches of the Budgetary Authorities to hold a trilateral 
meeting. 
As regards implementation, the products will be sold on the local markets for a price which 
will take into account local conditions. The proceeds will be put into a counterpart fund which 
will be used for social purposes. 
COUNCIL REGULATION (EEC) N° .... 
an actions for a free supply of agricultural products destined to the 
population of certain countries in the Caucasus and in Central Asia 
THE COUNCIL OF THE EUROPEAN COMMUNITY, 
having regard to the treaty establishing the European Economic Community, 
having regard to Council Regulation (EEC) no. 1766/92 of 30 June 1992 on the common 
organisation of the market in cereals *) and in particular Articles 5 and 6 thereof, 
having regard to Council regulation (EEC) No. 136/66 of 22 September 1966 on the 
establishment of an organisation of the markets in the sector of fats and oils 2> and in particular 
Article 12 thereof, 
having regard to Council Regulation (EEC) no. 804/68 of 27 June 1968 on the common 
organisation of the markets in milk and milk products 3> and in particular Articles 6 (6) and 7 (4) 
thereof, 
having regard to Council Regulation (EEC) no. 805/68 of 27 June 1968 on the common 
organisation of the market in beef and veal 4>, and in particular Articles 6(5) and 7 (2) thereof, 
having regard to the Drooosal from the Commission, 
Whereas, the Community has agricultural products in stock following intervention measures and 
that, in view of the situation on the markets, these products should be sold; 
Whereas conditions for supplying agricultural products to certain countries in the Caucasus and 
Central Asia should be improved; 
Whereas, in supplying the population concerned with products from stocks, account should be taken j 
of the diversity of local situations; whereas the move towards supplies according to market rules i 
should not be compromised; 
Whereas it is important to ensure that the agricultural products supplied as part of these actions 
reach their proper destination; 
Whereas it is for the Commission to lay down the arrangements for application of these actions; 
') JO no L 181 du 1.07.1992, p. 21. Regulation as last amended by Regulation (CEE) 2193/1993 (JO 
no. L196 of 5/08/1993, p. 22). 
2> JO no 172 of 30/9/1966, page 3025. Regulation as last amended by Regulation (CEE) 3179/1993 (JO 
no. L285 of 10/11/1993 p. 9). 
3> JO no L 148 du 28.6.1968, p. 13. Regulation as last amended by Regulation (CE) no 230/1994 (JO no 
L30of3/2//1994,p. 1) 
4> JO no L148 du 28/06/1968, p. 24. Regulation as last amended by Regulation (CE) no 1096/94 (JO 
no L121 of 12/05/1994, p. 9). 
:,.j'.^«J he • ; ^„ by d*c EâGGF Gix^â^, 
HAS ADOPTED THIS REGULATION: 
Article 1 
It is proceeded, under the conditions laid down by this regulation, to actions of free supply of 
agricultural products destined to the populations of certain countries in the Caucasus and in 
Central Asia to be determined, available as a result of intervention measures. 
Article 2 
1. The products may be supplied unprocessed or in processed form. 
2. The actions may also relate to food stuffs available or which may be obtained on the market 
by payment with products coming from intervention stocks and belonging to the same 
group of products. 
3. The supply costs, including transport and, where applicable, of processing shall be 
determined by invitation to tender or, for reasons connected with urgency or with 
difficulties of transportation, by direct agreement procedure. 
4. If the supply comprises targeted distribution to the beneficiaries, corresponding expenses 
shall be borne according to the usual procedures of emergency aid. 
5. Products consigned pursuant to this Regulation shall not qualify for export refunds 
applicable for the agricultural products. 
6. The transport costs shall be borne by the Community, in as far as the recipients do not take 
over themselves the products in the Community. 
7. The products could be sold, by agreement between the local Commission and the local 
authorities at a price not allowing to disturb the market and a counterpart funds in order to 
help the neediest ones will be constituted. 
Article 3 
The expense of these actions shall be limited to ECU 165 million entered in the general budget of 
the European Community. 
Article 4 
1. The Commission shall be responsible for the execution of these actions as well as for 
controlling the delivery operations. 
2. The detailed rules for the application of this Regulation shall be adopted in accordance with 
the procedure laid down in Article 23 of Regulation (EEC) no. 1766/92 or, as in case may be, 
in the corresponding Articles in the other Regulation on the common organisation of the 
markets. 
Article 5 
The accounting value of the given agricultural products originating from intervention stocks shall 
be fixed according to the procedures laid down in Article 13 of Regulation (EEC) no. 729/70. 
Article 6 
This regulation shall enter into force on the day following that of its publication in the Official 
Journal of the European Communities. 
This regulation shall be binding in its entirety and directly applicable in any Member States. 
Done in Brussels 
For the Council, 
The president 
r 
FICHE FINANCIERE 
J 
DATE 2 
LIQŒ BUDGETAIRE : Bl-189 CREDITS : 165 Mio ECU 
2. INTITULE DE LA MESURE : 
Projet de règlement (CE) du Conseil relatif à des actions de fourniture gratuite 
de produits agricoles destinés aux populations du Caucasse et d'Asie Centrale 
3. BASE JURIDIQUE : Règlements (CEE) du Conseil 1766/92, 136/66, 804/68 et 805/68 
4. OBJECTIFS DE LA MESURE : 
Apporter une fourniture gratuite de produits agricoles composée de céréales, d'huile 
d'olive, de produits laitiers et de viande bovine à des populations ciblées menacées 
de famine-
INCIDENCES FINANCIERES 
5.0 DEPENSES A LA CHARGE 
- DU BUDGET DES CE 
(RESÏITUTlOKy/JLNTKRVKNTIONS ) 
- DES BUDGETS NATIONAUX 
- D'AUTRES SECTEURS 
5-1 RECETTES 
- RESSOURCES PROPRES DES CE 
(PRELEVEMENTS/DROITS DE DOUANE) 
- SUR LE PIAN NATIONAT. PERIODE DE 
L2 MOIS 
(Mio ECU) 
néant EXERCICE EN 
COURS (94) 
(MÎO ECU) 
165 
néant EXERCICE 
SUIVANT (95) 
(MÎO ECU) 
néant 
néant 
5.0.1 PREVISIONS DES DEPENSES 
5.1.1 PREVISIONS DES RECETTES 1996 
néant 1997 
néant 1998 
néant 1999 
néant 
5.2 BODE DE CALCUL : 
Les produits désignés (cf. point 4) seront fournis en l'état ou après transformation : 
à concurrence du montant fixé par le conseil dans le cadre du présent règlement à 
t partir des stocks d'intervention FEOGA. Ils seront, lors de leur sortie de stocks, 
valorisés conformément à la procédure prévue à l'article 13 du règlement (CEE) n° 
729/70. Les frais de fourniture , y compris de transport , seront également pris en 
charge. 
I 6.0 FINANCEMENT POSSIBLE PAR CREDITS INSCRITS AU CHAPITRE CONCERNE DU BUDGET 
' EN COURS D'EXECUTION 
i OUT /NON 
6,1 FINANCEMENT POSSIBLE PAR VIREMENT ENTRE CHAPITRES DU BUDGET EN COURS 
D'EXECUTION 
6.2 NECESSITE D'UN BUDGET SUPPLEMENTAIRS 
6.3 CREDITS A INSCRIRE DANS LES BUDGETS FUTURS 
OBSERVATIONS 
é foUI/NOH 
OUI/NON1 
OUI/NC 
ISSN 0254-1475 
COM (94) 339 final 
DOCUMENTS 
EN 11 
Catalogue number : CB-CO-94-350-EN-C 
ISBN 92-77-71913-3 
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