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DOCUMENTS "COM"
COM(76)103
Vol.1976/0036

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(76)103 final .
Brussels ,lrjMaroh 197»«
COMMUNICATION FROM THECOMMISSION
TOTHECOUNCIL • ,
RENEWAL OFTinsCONVENTION BETWEEN THE
EUROPEAN ECONOMIC COMMUNITY ANDTHE
UNITED NATIONS RELIEF ANDWORKS
AGENCY FORPALESTINE REFUGEES (UNRWA )
\
AMENDMENT TOTHEFIRST CONTENTION WITH
UNRWA CONCLUDED 18DECEMBER 1972
\
? "
OOK(76 )103final .
/

COMMUNICATION FROM THE COMMISSION
TOTHE COUNCIL
RENEWAL OPTHE CONVENTION BETWEEN THE
EUROPEAN ECONOMIC COMMUNITY AND THE
UNITED NATIONS RELIEF AND WORKS
AGENCY FORPALESTINE REFUGEES (UNRWA )
AMENDMENT TOTHE FIRST CONVENTION WITH
UNRWA CONCLUDED 18DECEMBER 1972

SUMMARY
This communication submits tothe Council the text
ofanewConvention between theEECandUNRWA (United Nations
Relief andWorks Agency forPalestine Refugees ),following
negotiations conducted bytheCommission inaooordanoe with
theCouncil 'smandate (Council decision 25«9«75 )«
Itcomprises :
1.Exposé desmotifB
2.Council decision concluding theConvention .
3.Text ofConvention .
4.Council regulation tosupply UNRWA with sugar .
Inaddition ,theCommission submits totheCounoil
thetext ofanexchange ofletters between theEECandUNRWA ,
modifying theterms ofthefirst Convention asaresult of
thedeoision topayUNRWA aoash contribution inlieu of
certain quantities ofsugar duein1975(Council decision
6.10.75 ).

3.
EXPOSE DES MOTIFS
I :NEW CONVENTION
1-On25September 1975 "theCouncil agreed totherenewal of
theConvention with UNRWA (United Nations Relief andWorks
Agency forPalestine Refugees ),andauthorized theCommission
toopen negotiations accordingly .Agreement with UNRWA hasnow
been reached upon thetext ofthenewConvention attached .
2–ThenewConvention hasbeen drawn upalong thelines ofthe
Commission 'sCommunication totheCouncil of4July 1975 (l)»
and isgenerally analogous tothefirst Convention concluded
18December 1972 ,andexpiring on30June 1975(2);with
however certain differences which areexplained below .
3-Insummary ,theEECundertakes bytheConvention toprovide
UNRWA with :
(a)Contributions ofcertain foodstuffs (flour ,rice ,milk
powder andsugar ),along with cash contributions needed
tocover theoperation ofUNRWA 'sSupplementary feedin /r
program ;
(b)Contributions ofsugar needed forUNRWA 'sBasic rations
program ,along with oash forinland transport and
distribution costs .Itshould benoted that the EEC makes
further contributions totheBasio rations program outside
theConvention ,intheform offlour andbutteroil .All
such contributions ,whether inside oroutside theConven­
tion ,axemade from theCommunity 'sannual food aid
programs ;with theexception ofsugar ,which iscovered
bythespecial Council regulation included with this
Communication (requiring theopinion oftheParliament ).
(l)C0M (75)345final ;R/l899/75(COMER 177)
(2)OJL304,31.12.7 2,p.23

4.
4-ThenewConvention would bebackdated tostart 1July 1975t
immediately after theexpiry ofitspredecessor *Certain
deliveries have however already been arranged inaccordance
with theCouncil 'sdecision authorising theCommission todo
so.
5-Initial period ofnewConvention
Thefirst Convention ranforthree years ,initially forone
year from July 1972 andlater twice extended ;similar
arrangements were initially proposed £orthenewConvention .
September 1975 oertain criticisms were made ofthese
arrangements ,sinoe they didnotcorrespond with theEEC
financial year andledtoconsiderable oonfusion .Inthe
oourBe ofsubsequent discussions ,UNBWA readily aocepted
that thenewConvention could bebased upon thecalendar year .
Itistherefore proposed that theinitial period cowered by
theConvention beeighteen months instead oftwelve ;that is,
1July 1975 to31December 1976 ,after which theCouncil could
extend itforafurther twelve months fortheyear 1977 »and
soonforfuture years .,
6-Thecontributions fortheinitial period would therefore be
asfollows :Atthemeeting oftheCouncil 'sbudget Committee of15/16
7/75-6/76 7/76-12/76 Total
Supplément aryProgram
Milk powder
SugarFlour
Rice2450 t
171 t
1600 t
102 t1225 t 3675 t
85t 256 t
800 t 2400 t
51t 153 t
Cash 2681Kua 1531Mua 4212Mua
Basic pro'rram
Sugar 6000 t 0 6000 t
/

5
7-Itwill benoted that UNRWA isnotasking foranyfurther
sugar forthesecond half of1976 ,since large supplies
arrived from theEECinrecent months .This represents a
saving totheCommunity for1976 ofsome 1.1Mua .
Furthermore ,thecash contributions axesomewhat lower that
originally forecast ,forreasons explained below .
8-Durât ion ofConvention
Theinitial proposal wasthat theseoond Convention should
runforexactly three years ,like thefirst ,andshould
expire on30June 1978 when UNRWA' smandate expires .
However ,inview ofthechanges proposed above ,this isnot
avery suitable expiry date ;furthermore there does notseem
tobeanygreat need tosetafixed period forthewhole
convention ,since itisanyway reviewed bytheCouncil
annually .TheCommission therefore proposes that thepossibility
should beleft open fortheConvention tobeextended beyond
June 1978 ,provided ofcourse that UNRWA' smandate isitself
extended inthe meantime .
9-Financial contributions
TheEECundertakes under theConvention topayUNRWA acash
contribution foruseintheSupplementary Feeding Program ,
intended tocover thepurchase ofcertain foodstuffs in
Europe ,thepurohase ofother foodstuffs locally ,andthe
administration anddistribution costs oftheprogram .The
major part ofthis last item isrepresented bystaff costs .
During discussions atvarious levels intheCounoil during
September 1975 »theview wasexpressed that these staff costs
were perhaps excessive ,andtheCommission wasinvited to
discuss with UNRWA methods ofreducing them .

10-Asaresult ofthese discusions with UNRWA ,itisproposed
toreduce thestaff costs bysixpercent ,corresponding to
<staff economies that UNRWA intends toachieve *Theposition
istherefore asfollows :
Period Initial proposal Revised proposal
Kua Kua
|2681
1531
4212
Theinitial proposals correspond totheappropriations in
the1975 and1976 budgets .
11-Also following thewish oftheBudget Committee ,monetary -
amounts inthesecond Convention areexpressed inunits of
acoount ,asinthefirst Convention ,andnotindollars .
TheIMFrate ofconversion hasbeen used ,viz .1ua■
S1.206349 .
12-Sug-ar rojvulation
Included with this communication isadraft Council
regulation ,requiring theopinion oftheParliament ,for
thesupply of6153 "twhite sugar toUNRWA foreach of
thethree campaigns 1975/76,76/77and77/78.Theregulation
isessentially thesame asthat applying tothefirst
Convention ,asadopted bytheCouncil on17April 1973 (l)Period Initial proposal
i'jua
7/75-12/75 1190
1/76-6/76 1587
7/76-12/76 1588
4365
U)OJ.L105,20.4.73 ,p.1/

13-Conclusion
TheCommission therefore proposes totheCouncil s
-todecide toconclude the attached Convention with UNRWA
-topass theattached regulation concerning thesupply of
sugar toUNRWA asfood aid .
X X
X

sAMENDMENT TOTHE FIRST CONVENTION
1.On 6October 1975 "theCouncil agreed topayUNRWA the
value of 2OOO tsugar ,part ofthe 6000 tdueunder the
third year ofthefirst Convention andwhich theCommission
hadbeen unable todeliver owing tothemarket situation .
2.Thepayment hassince been made ,andUNRWA hasbought
anddistributed thesugar .(Theother 4000twasdelivered
inthenormal way).
3*TheCommission proposes that theCounoil decide onthe
attached exchange ofletters with UNRWA inorder to
regularize theposition ,amending theterms ofthefirst
Convention .

COUNCIL DECISION
of 1976
onthe Conclusion ofaConvention between the
European Economic Community andtheUnited Nations Relief and
Works Agency forPalestine Refugees (UNRWA )
concerning aidtorefugees intheNear East .
TiEJ COUNCIL OFTHE EUROPEAN COMMUNITIES
Having regard totheTreaty establishing theEuropean Economic
Community andinparticular Articles 113 ,114and228thereof ;
Having regard totherecommendation from theCommission ;
Whereas theCommunity wishes tocortirme itsprogram ofaidto
thePalestine refugees inthecountries oftheNear East ;
Whoreas theConvention concerning aidforthose .refugees ,
which was concluded with theUnited Nations Relief andWorks
Agency forPalestine Refugees -(UNRWA )on18 ,
December 1972 ,expired on30June 197 '>»
Whereas anewConvention should beconcluded with UNRWA inorder
that theaidoftheCommunity canoontinue andcanbegranted in
acomprehensive andcontinous fashion ,

10.
DECIDE » :
Article 1
TheConvention ,ofwhich thetext isannexed tothis
Decision ,between theiSuropean Economic Community saidthe
United Nations Relief andWorks A&ency forPalestine Refugees
concerning .<aid tothePalestine refugees
inthecountries oftheNear East ,isheroby conoluded onbehalf
oftheCommunity .
Article 2
Theagreement oftheCommunity under Article V
oftheConvention shall begiven bytheCommission .
Article 3
ThePresident oftheCouncil ishereby authorised to
designate thepersons empowered tosign theConvention andto
confer upon them thepowers necessary tobind theCommunity .
Done at 1976
For the Counoil
The President

11.
CONVENTION
between theEuropean Economic Community andtheUnited Nations
Relief andWorks Agency forPalestine Refugees (UNRWA )
concerning aid . torefugees inthecountries of
the Near East .
Article I
With aview tocontinuing the aid toPaTentine
refugees inthecountries oftheNear East undertaken
pursuant totheConvention dated 18December 1972 ,the
European Economio Community hereinafter referred toas
"theCommunity^' shall make available totheUnited Nations
Relief andWorks Agency forPalestine Refugees
ihereinafter referred toas"UNRWA ",contributions in
kind and incash needed tocover theentire operation of
UNRWA' ssupplementary feeding program ,aswell as
contributions towards UNRWA 'sbasic rations program .

Supplementary feeding program
Art .II
TheCommunity shall supply toUNRWA "bywayofgift
amounts ofwheat flour ,milled rice ,skimmed milk powder and
white sugar ,foruseinthesupplementary feeding program . -
Theamounts to "besupplied fortheinitial period covered "by
this Convention arespeoified inpara 1oftheAnnex ,whioh
forms anintegral part ofthis Convention .
Art .III
1.TheCommunity shall paytoUNRWA acash contribution for
useinthesupplementary feeding program .Thesumpayable
inrespect oftheinitial period covered "bythis Convention
isspecified inAnnex para 2.Thecontribution maybepaid
inseveral instalments .
2.Part ofthis contribution shall beused forthepurchase
bypublic tender onthemarket oftheCommunity ofcertain
quantities offoodstuffs asspeoified inAnnex para 3*

13.
Basic Rations Pro^ram
Art .IV
1.TheCommunity shall supply toUNRWA bywayoffcift6000metric
tons ofwhite su&ar inrespect oftheinitial period covered by
this Convention ,foruse inthebasic rati.ons program .
2.'TheCommunity shall payUNRWA acontrioution of18.50 11111s
ofaccount pertoninrespect ofthesu£.ar delivered under
paragraph 1ofthisArticle ,intended tocover thecosts of
inland transport anadistribution .
/

Transport and distribution
Art .V
Deliveries shall bemade port ofunloading .
Detailed arrangements andquality andpackaging requirements shall
hefixed bysuhoequent agreement between thetwoparties .
Art .VI
UNRWA undertakes totake allmeasures necessary totranspor .
theproducts from theports ofunloading totheplaces ofdestination
andalso toinsure them totheextent that itconsiders this neceosary .
Ifanyloss oftheproducts should occur ,excepting losses caused by
riots armed conflicts oracts ofwarorlosses against which insurance
could notreasonably have been effected ,UNRWA snail replace the
products soastorestore theCommunity 'scontribution .
Art .VII
UNRWA undertakes todistribute theproducts totherefugees
covered byitsprograms ,free ofcharge andfortheir ownconsumption .

•.lb.
riCTortinf;andinformation
Art.VIII
UftStWAundertakestosupplyoy1 ?>rdI
Septembereachyearreportsupontheimplementation ofthd
programscoveredbythisConvention.Theyshallincludereports
onthedistribution oftheproducts(mentioningthenumuerof
recipionts ,amountsdistributed ,andtheplacesandmannerof
distribution *,andupontheuseofthecashcontributions in
supportofthesupplementary feedingprogram.
Art..1X
iJNRWA.shallmakeallreasonaL "oeffortstoinform
theheriefioiarynonnlationsandtheautiicritiesofthehost
countriesofthecontributions towardsUNliWA'sprogramsmp.de
bytheCommunity.
/

Ocneral Provisions
Art .X
This Convention shall run initially for theperiod
from 1July 1975 "to31December 1976 .Itmaybeextended for
subsequent periods with orwithout amendment byagreement between
thetwoparties upto30June 1978 ortheexpiry ofUNRWA 's
mandate whichever isthe later .
Art .XI
UNRWA andtheCommunity shall consult each other on
allquestions concerning theapplication ofthis Convention ,
whenever oneparty sorequests .
Art .XII
This Convention isdrawn upintwocopies inDanish
Dutch iinglish French Herman andItalian ,each version being
equally authentic .

ANNEX
SIJPPLEMïSNTAHYFiWDJNOPRWWK
InitialperiodofConvention(lJulyto31December197^)
Gontrihi11ionr*1nxin'i
toheatflour:36?5metricions
(corror.T.ondii'i,"j':.04».f:or.,;rionwheat)
Roundf.rainod .milledrice:2%motricion?.
(corror.r">ndiv:;i;o330i.huakodrioc)
Sk.irnr.edmilfcnowdor •:?400moirictons
v.nitesur,ar:153metrictor.;..
l^J2_Ll221'2 *■Jr-:'hh
Porperioci1.7-75-30.6.76 26i.il000ua.
Forperiod1.7.7"-31.12.76 I531000
Toi.'/: A212000ua.
roo^t-pffsT,obepurchasedonthemarketoftheCornr.*.u.;rj^v
Tomatopas^o 4-2n'et?]otnrn
Cornedoeef 520Tetri.otoïif»

18.
REGULATION (EEC)No OFTHECOUNCIL
of 1976
onthesupply ofsugar toUNRWA asfood aidpursuant tothe
Convention with that agency dated 1976
TH3COUNCIL OPTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community }
Having regard totheProposal from theCommission ;
Having regard totheOpinion oftheEuropean Parliament ;
Whereas theConvention concluded on 1976 between theEuropean
■Ccoi..,«ilc Community andtheUnited Nations Relief andWorks Agency for
Palestine Refugees '(UNRWA )concerning aid to
refugees inthecountries oftheNear East (l)-hereinafter referred
toas"theConvention "-provides forthesupply toUNRWA bythe
Community ofaquantity ofwhite sugar amounting to61^3metric tons
annually ;
Whereas provision should bemade foramendment ,inaccordance with the
Convention ,ofthequantities tobeprovided forthesugar marketing
years 1976/77and1977/78;
Whereas inview oftheneti toensure regular supplies ,thepossioi .vty
should beavailable ,incase ofnecessity ,tocarry outpurchases of
white sugar upon theworld market ;–
Whereas topermit effective useoftheaid ,theCommunity should assume ,
inaddition tothat oftherawmaterial ,thecost oftransport ofthe
product uptoport ofunloading ,oftransport uptodestination point
and ofdistribution ;
U;OJNoL 1976 ,p.

19.
Whereas delivery should beachieved atthelowest price ;
whereas toachieve this end atendering procedure should beprovided
for ;whereas however inexceptional cases itmaybenecessary for
reasons ofspeed toemploy other procedures ,
HAS ADOPTED THIS REGULATION :
Article 1
1. Thefollowing quantities ofwhite sugar ,produced and in
free circulation inthe Comir ,unity ,aretobeplaced atthedisposal
ofUNRWA asfood aid inaccordance with the Convention :
-6153metric tons forthe1975/76sugar marketing year ;
-6153metric tons forthe1976/77sugar marketing year ;
-6153metric tons forthe1977/78su^ar marketing year .
However ,ifthequantities laid down for thesugar marketing years
1976/77and1977/78arevaried inaccordance with Article Xofthe
Convention byanamount of500tons orless ,thequantities given
under the second and third indents above should beread ashaving
been varied accordingly .
2. Should thewhite sugar notbeavailable ontheCommunity
market under normal conditions ,itmaybemobilized bypurchase on
the world market .
3. Thecontract forthemobilization ofthegoods to
theport ofunloading shall beawarded under thetendering procedure .
Inexceptional circumstances other procedures maybeused .

4* conditions applying totheinvitation fortender
andother terms aridconditions forapplying this Articles shall be
adopted inaccordance with theprocedure laid down inArticle 36
ofCouncil Regulation (EEC)No3330/74 (l)of19December 1974 *
onthecommon organization ofthemarket insugar ,aslast amended
byRegulation (EEC)No3058/75(2).
Forthepurposes ofArticle 1,thefollowing are
eligible forCommunity financing :
–the value ofthesugar delivered port ofunloading ,
–thecost oftransport tothedestination andthedistribution ,
subject totheconditions laid down inArticle IVofthe
Convention .
Inrespect oftheexpenditure referred tointhe
second indent ofArticle 2,theCommission shall paytoUNRWA the
lump sumcontribution provided forinArticle IVoftheConvention .
This Regulation shall enter into force onthethird day
following itspublication intheOfficial Journal oftheEuropean
Communities .
This Regulation shall bebinding initsentirety anddirectly
applicable inallMember States .Article 2
Article 3
Article 4
Done at 1976For the Council
The President
s0JNoL359 ,31.12.1974 ,p.1
0JNoL306 ,26.11.1975 »P.3

21.1
COUNCIL DECISION
of
ontheconclusion oftheAgreement amending theconvention between the
European Economic Community andtheUnited Nations Relief andWorks
Agency forPalestine Refugees (UNRWA )concluded on18December 1972
THECOUNCIL OFTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic
Community ,andinparticular Articles 113 1114 an<i228thereof ;
Having regard totherecommendation from theCommission ;
Whereas on18December 1972 theEuropean Economic Community concluded
&convention (l)with UNRWA concerning aidtorefugees inthecountries
ofthe Near East foraperiod ofthree years ;
Whereas theCommunity hasbeen unable owing tothemarket situation
toprovide ,toUNRWA thewhole ofthe6000 metric tons ofsugar due
under Article IIpara IoftheConvention ;whereas UNRWA hasbeen obliged
tobuy2000 metric tons ofsugar from itsownresoui-ces ;whereas the
Community should reimburse UNRWA according totheCommunity price plus
transport inorder tofulfil itsobligations under theConvention ;_
Whereas theconvention should beamended tothis effect :
HAS DECIDED ASFOLLOWS :
Article 1
TheAgreement ,intheform ofanexchange ofletters ,between tne
European Economic Community andtheUnited Nations Relief andWorks
Agency forPalestine Refugees (UNRWA ),amending thecontributions
provided forintheconvention concluded with that agency on18
December 1972 ,thetext ofwhich isannexed tothis Decision ,is
hereby ooncluded onbehalf oftheCommunity *
(l)OJNoL304,31.12.1972 .p.23.

Article 2
ThePresident oftheCouncil ishereby authorized todesignate the
persons empowered tosign theexchange ofletters andtoconfer on
them thenecessary powers tobind theCommunity .
Done at
Por the Council
The President

AGREE MENT
mtheform ofanexchange ofletters between theEuropean
Economic Community andtheUnited Nations Relief andWorks
Agency forPalestine Refugees (UNRWA )amending theConvention
concluded on]8December 1972 with that agency .
LETTER FROM THE EUROPEAN ECONOMIC COMMUNITY
With reference totheconvention signed on18December 1972
between theEuropean Economic Community andtheUnited Nation
Relief andWorks Agency forPalestine Refugees (UNRWA )on
aid to ,refugees inthecountries oftheNear East as
last amended byanagreement intheform ofanexchange of
letters dated 3October 1°>74 andhaving regard tothedifficulties
experienced owing tothemarket situation bytheEuropean Economic
Community infulfilling itsobligation Tinder article IIparagraph 1
first indent oftheConvention fortheoperational year 1974/75to
supply toUNRWA bywayofgift 6000tons ofwhite sugar ,Ihave
thehonour topropose toyouthecancellation oftheoutstanding -
amount of 2000tons and itSireplacement byaoash contribution
of748000units ofaccount ,calculated onthebasis of374units
ofaocount portondelivered port ofunloading .
Ishould begrateful ifyouyould confirm theagreement ofUNRWA
with theforegoing .
For the Council
oftheEuropean Communities

24.
t
LETTERFROMUNHWA
Iacknowledgereceiptofyourletterof
wordedasfollows :
\
"Withreferencetotheconventionsignedon18December1972between
"theEuropeanEconomicCommunityandtheUnitedNationReliefand
WorksAgencyforPalestineRefugees(tJNRWA)onaidto
refugeesinthecountriesoftheNearEastaslastamendedbyan
agreementintheformofanexchangeoflettersdated3October
1974andhavingregardtothedifficulties experienced owingto
themarketsituationbytheEuropeanEconomicCommunityin
fulfillingitsobligationunderarticleIIparagraphIfirstindent
oftheConventionfortheoperationalyear1974/75"tosupplyto
UNRWAbywayofgift6000tonsofwhitesugar,Ihavethehonour
toproposetoyouthecancellation oftheoutstanding amountof
2000tonsanditsreplacement byacashcontribution of
748000unitsofaccount,calculatedonthebasisof374units
ofaccountpertondeliveredportofunloading."
/
IconfirmtheagreementofUNftWAwiththeforegoing.
ForUNRWA

-35-
FmNCIAL AKNEX
A.EVALUATION OFEXPEI-TDITURE
1.Contributionsinkind(l)
Basicpro^ram
Sugar
Supplementary profçrajn
Cereals
Milk
Sugar6000t
5434t(2)
2400t
153t(millionu.a.)
0.799
1.773
0i03I2.273
2.609
2.Contributions mcash
Supplementary program:7/75-6/76
7/76-12/762.681
laSl4.212
9.094
B.BUDGETCHARGE
Product Tonna ,taExercise PostChargeAppropriation
Cereals(3)3623
18111975
19769201
92010.540
0.25976.300
97.970
Milk(3)1700
7001975
19769211
92111.319
0.45432.900
36.350
*
Sugar 6102
511975
19769221
92212.292
0.0182.300
2.330
Cash 1975
19769300
93001.190
3.022
9.0941.190(4)
3.175
Notes: ■ %.
■ 1 1 - • -L–^ ^ –.1(1Evaluationsatbudgetprices(internalpriceslessexportrefunds;,pluscarria -jetoFOBstageandseatransport.(Also,for6000tsugar,contribution
of18.5ua/tforinlandtransportanddistribution).
(2)Unprocessedcerealsequivalentof3675"twheatflourand256twhiterice.
(3)Cerealsandmilkcontributionsarealreadyincludedinthegeneralfoodaid
programs.
(4)TransferredfromCh.98indent15-Councildecisionof6/l0/75*