ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(77)419
Vol.1977/0136

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(77)419 final.
Brussels.8September 1977
Proposalfora
COUNCILDECISION
amendingtheDecisionof3August1972(72/335/EEC)
ontheCommunityfinancingofcertainexpenditure
arisingfromtheimplementation oftheFoodAid
Convention of1971
I
(submittedtotheCouncilbytheCommission )
1COM(77)419final.

EXPLANATORY MEMORANDUM
1.TheCouncilDecisionof3.8.1972(72/335/EEC)ontheCommunityfinancing
ofcertainspecialexpenditurearisingfromtheimplementation ofthe
FoodAidConventionof1971centresroundthedistinction betweenthe
valueoffoodaidcalculatedattheworldpricelevelandtheamount
corresponding totherefund.
ThisdistinctionentailstwoentriesintheEiudget,oneunderTitle9
(Chapteron'Foodaidexpenditure' )forthevalueattheworldprice
levelandtheotherundertheGuaranteeSectionofthe'uropeon
Agricultural GuidanceFundfortherefund.
2.Experiencehasshownthattheapplication ofthisaccounting methodhar.
thefollowingdisadvantages asregardsthemanagementofappropriations :
-theneedforthepayingauthorities ofMemberStater,todrawan
artificaldistinction betweenrefundsandotherexpenditure onan
operation,thuscreatingasourceofconfusionandei-or;
-complexadministrative workfortheCommissionstaff;
-theneedtotransferappropriations duringthefin.ihratyvrKetvoeri
theGuarantee -SectionoftheEAGGFandfoodaid,dependingonthe
ratesoftherefunds,whichoftenvary.
Furthermore,astheEEC'sagricultural productsaregivenatthe
Community'sinternalprices,thetotalcostofthefoodaidpolicy
correspondstothoseprices.

3.InordertoreduJthesedrawbacks,itisproposedthattheentire
costoffoodaiaatCommunitylevelshouldbeenteredin.theBudget
intheChapteron'Foodaidexpenditure',therebyeliminatingthe
needtoentertheamountcorresponding totheexportrefunds.
However,sinceitisnecessarytoknowandinformthecompetent
international bodiesofthevalueofthefoodaidattheworldprice,
thiswillbeindicatedinthe"Remarks"ontheBudget.Similarly,
thevaluecorresponding totherefundscouldbegivenbywayof
information,becauseifthefoodproductswerenotdisposedofasgifts,
additionaloutletswouldhavetobefoundinsideoroutsidetheEEC
andinthislattercaseprovisionwouldhavetobemadeforcorresponding
appropriations totheEAGGF.
4.Thisproposalhasnofinancialrepercussions ontheCommunity'sBudget,
butwillireanachangeinpresentation in"linewiththedraftCouncil
RegulationamendingRegulations (EEC)N°2052/69of17October1969,
N°1703/72of3August1972andN°2681/74of21October1974
presentedon
Itisconsequently appropriatetoamendthesolearticleoftheDecision
inquestion,asproposedinthisdraftCouncilDecisionamendingthe
Decisionof3August1972(72/335/EEC)ontheCommunityfinancing
ofcertainspecialexpenditurearisingfromtheimplementation of
theFoodAidConventionof1971..

COUNCIL DECISION
amending theDecision of3August 1972 (72/335/EEC)<"»theCommunity
financing ofcertain expenditure arising from theimplementation ofthe
Food Aid convention of1971 .
T'-fECOUNCIL OFTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,
and inparticular Articles 43and209'.hereof ,
Having regard totheproposal from theCommission , J
Having regard totheOpinion ofthe European Parliament ,
Whereas theCommunity grants food aidtodeveloping ordisaster-stricken
countries andisresponsible forthefinancing thereof ,
Whereas und^r present rules thepart ofthis expenditure which relates to
export refunds isfinanced bytheGuarantee Section oftheEuropean
Agricultural Guidance and Guarantee Fund and the remainder isfinanced
under Title 9(Chapter on'Food aidexpenditure' );
Whereas experience hasshown that such adistinction involves several
disadvantages inthemanagement ofappropriations oftheCommunity ■•/'
3udget ;whereas theentire cost offoodaidshould consequently be/■/
charged solely toTitle ^(Chapter on'Pood aidexpenditure '):
" ' ' /
h'-s-pflsitistherefore necessary toamend thesoleArticle oftiej
auncil Decision of3August 1972 (72/335/EEC)ontheComnuniiv .financing
fcertain special expenditure arising from theimplemeritat ior/oft/he
1 -
>odAid Convention of1971
\SDECIDED ASFOLLOWS
Article 1 ;
esoleArticle ofDecision 72/335/EECof3August 1972isamended as\
Hows ;

-2-
i/ii
"WheremeasuresaretakenundertheFoodAidConvention of1971and
pursuanttotheDecisionsadoptedbytheinstitutions oftheCommunity,
inexceptional orurgentcasesthefollowingtypesofexpenditure may
qualifyinwholeorinpartforCommunityfinancing :
-thevalue,atthefoborequivalent stage,ofcerealsorricein
theformofgoodsnotlistedinAnnexIItotheTreaty;
-forwardingcoststothefrontierofthecountryofdestination and,
ifnecessary,tothedestinationitself;
-distribution costswherethegoodsaredistributed throughan
international agency.
Suchcasesshallbedetermined bytheCouncilactingunanimously ona
proposalfromtheCommission .
2InsuchcasesArticle10(1)ofRegulation (EEC)N°1703/72shallapply
mutatismutandisandtheexpenditure shallbefinancedfromthefoodaid
appropriations intheBudgetoftheEuropeanCommunities."
Article 2
ThisDecisionshallenterintoforceonthethirddayfollowingits
publication intheOfficialJournaloftheEuropeanCommunities .It
shallapplywitheffectfrom 1January1978.
DoneatBrussels FortheCouncil
ThePresident
0JN°L227,5.10.1972,p.11
2OJN°L180,8.8.1972,p.1.