ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(74)1224
Vol.1974/0196

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(74)1224final
Brussels,25July1974
RECOMMENDATION FORA
COUNCILDECISION
ontheconclusionofanagreement "betweentheEuropean
EconomicCommunityandthePeople'sRepublicofBangladeshforthe
supplyofbutteroilasfoodaid
(submitted .totheCouncilbytheCommission)
♦
r:OT-TC74)12?4firn.l

THE COUNCIL OPTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,andin
particular Articles 113»114and22'6thereof }
Having regard tothe [Recommendation from theCommission ; "
Whereas theCouncil inRegulation (EEC)no.530/74of4March 1974 .onthesupply of
butteroil as .food aiddecided tomake 6,500 metric tons ofbutteroil available to
thePeopled Republic ofBangladesh .
HAS DECIDED î
i
Article 1
t
*
AnAgreement between theEuropean Economic Community andthePeople 'sRepublic of
Bangladesh forthesupply ofbutteroil asfood aidishereby concluded onbehalf of
theEuropean Economic Community .Thetext oftheAgreement isannexed tothis
Decision .
Article 2
ThePresident oftheCouncil isauthorized todesignate thepersons empowered to
sign theAgreement andtoconfer onthem thepowers required inorder tobind the
Community .
t
Done atBrussels ,
Por the Council
The Président

AGREEMENT
BETWEENTHEEUROPEAN ECONOMIC COMMUNITY
ANDTHEPEOPLE'SREPUBLIC.OFBANGLADESH
ONTHESUPPLYOPFOODAIDINTHEFORMOF
*BUTTEROIL

THECOUNCILOPTHEEUROPEAN COMMUNITIES .
oftheonepartf
s
THEGOVERNMENT OPTHEPEOPLE'SREPUBLICOPBANGLADESH
oftheotherpart,
. . »
¥
HAVEDECIDEDtoconcluded "thisAgreementandtothisendhave
designatedasthoirplenipotentiaries :
•THECOUNCILOPTHEEUROPEAN COMMUNITIES s
♦
THEGOVERNMENT OPTHE.PEOPIE'SREPUBLICOPBANGLADESH
WHOHAVEAGREEDASFOLLOWS:

–2-
ARTICIEI #
TheEuropeanEconomicCommunityshallsupplybywayofgifttothepeople's
Republic,ofBangladesh(hereafterreferredtoas"therecipientcountry")a
quantityof6,300'metrictonsofbutteroil. •
ThequalityandpackagingconditionsarespecifiedinAnnexIwhichformsan
integralpartofthepresentAgreement.
»
ARTICLEII
Deliveriesshallbeeffectedunderthearrangements providedinAnnexIIwhich
formsanintegralpartofthepresentAgreement. .
ARTICLEIII
Therecipientcountryundertakestomakeallnecessaryarrangementsforthe
transportandinsuranceoftheproductsfrompointofdeliverytoplacesof
destination . .
Itundertakestoexercisethegreatestcaretoensurethatthetenderingarran­
gementsforseatransportdonotprejudicethefreeplayoffaircompetition.
Anyproblemsarisinginthisconnectionshallbethesubjectofconsultations
underArticleVIIIofthepresentAgreement.
ARTICLEIV
Therecipientcountryundertakestousetheproductreceivedasaidforpur­
posesofconsumption andtoapply,forthesaleoftheproductonitsmarket,
thepricesnormallychargedonthatmarketforproductsofcomparablequality.
Theproceedsfromthissaleshallbepaidintoaspecialaccountwiththe
CentralBankandallocatedtothefinancingofoneormoredevelopmentprojects
underarrangements whichhavebeenagreedinadvancebetweentherecipient
countryandtheEuropeanEconomicCommunity.

ARTICIEV
TheContractingPartiesundertaketoimplementthisAgreementinsuchaway
astoavoidanyprejudicetothenormalstructureofnatipnalproduction
andinternational trade*Tothisendtheyshalltakeanymeasuresrequired
• 1toensurethatsuppliesasaidareinadditiontoanddonotreplacebusiness !
transactionswhichmightreasonablybeexpectedintheabsenceofsuchsupplies,j
ARTICLEVI
Therecipientcountryshalltakeallstepsrequiredtoprevent:
(i)there-exportoftheproductreceivedasaidandalsoofanyproducts
resultingtherefrom;
(ii)theexport,commerciallyorotherwise,withinaperiodofsixmonths
commencingfromthefinaldelivery,eitherofanyproductprocured
locallyofthesamenatureasthatreceivedasaid,orofanyproducts
resultingtherefrom.
é
ARTICIEVII
TherecipientcountryundertakestoinformtheEECofhowthisAgreement i
isimplemented.TothisenditshallprovidetheCommissionofthe'iEuropean
Communities withthefollowingdetails: .-
(i)Immediatelyaftertheunloadingofeachcargo:portsanddatesof
arrivalofvessel;nature,quantityandanyobseryations astothe
qualityoftheproductsunloaded;dateonwhichunloadingwascompleted;
costsofseatransportandofinsurancerelatingthereto;
i
(ii)Everythreemonthsuntilthequantitiesreceivedasaidhavebeenfully j
usedjquantitiessold;mannerofsale;actualsellingprices;normalselling
costsontherecipientcountry'smarket;costsofinsurance(andoftrans­
portifapplicable)fromtheportofunloadingtotheplacesofdestina­
tion;
(iii)On15Januaryeveryyearuntilthespecialaccounthasbeenfully
expended:
,a).Summaryoftheaccount(incomingsandoutgoings)to31Decemberof
thepreviousyear; .
b)Stageofprogressoftheprojectorprojects,indicatingthetotal
resourcesexpendedtothatstage; j

-4-
ARTICLEVIII '
TheContractingPartiesshallattherequestofeitherconsulteachother
*
onanyquestionsconcerningtheimplementation ofthisAgreement.
ARTICLE'IX
ThisAgreementisdrawnupinduplicateintheDanish,Dutch,English,French,
GermanandItalianlanguages,eachofthesetextshavingequalforce#
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ANKEXI
BUTTEROIL
I.QUALITY"" '•.
(a)Productcharacteristics :
Concentratedmilkfatscontainingnotlessthan99*8$ofpurefats;
(B)Standard ,composition •:
(Analysismadeattimeofmanufactureandpacking)
-Moistureandnon-fatmilksubstances-notmorethan0.2$
-Pats-notlessthan99«9$ ,
-Freefattyacids-notmorethan0.5$(expressedasoleicacid)
-Peroxidelevel/kg-notmorethan1unit(inmilli-equivalents of
activeoxygenperkg)
-Taste-pure
-Smell-absenceofsrnellextraneoustobutteroil
II.COÏJDITTOjJS OFPACKAGING
a)Metalcansof20kg-1canpercarton.
b)MarkedthepackaginginEnglish:
BUTTEROIL ,
GIFTOFTHEEUROPEAN "ECONOMIC COMMUNITY
TOTHEPEOPLE'SREPUBLIC OFBANGLADESH

ANHEX TT
General provisions
Article 1 • .
r
Delivery shall beeffected ,andrisks shall pass from theEuropean Economic
Community ,hereinafter referred toastheEEC ,totherecipient country at
themoment atwhich thegoods areputdown atthepoint ofexportation
1
named bytheCommission oftheEuropean Communities atthe berth specified
bytherecipient country oritsagent referred toinArticle 2.andunder the
terms specified inthefollowing articles .Without prejudice toArticle 7and
btheEEC shall bear allcosts uptodelivery and therecipient country those
beyond such delivery .
Article 2
TheEEC shall appoint anagent toimplement theprovisions ofthepresent
Annex -orforeach consignment -whose name andaddress itshall make known
totherecipient country immediately following hisappointment .
Therecipient country shall appoint anagent intheport orports ofshipment ,
whoso name andaddress itshall make known totheEECwith alldespatch and
ifpossible before theappointment ofagent oftheEEC .
Article 3
Before implementing theprocedures forappointing theagent oftheEEC
referred toinArticle 2,theCommission oftheEuropean Communities and
therecipient country shall jointly establish theperiod during which deli­
very must begin . '
*
♦
Oblig ations of *thoEuropean Economic Community
Article 4
Should theEECnotbeinaposition tocarry outdelivery onthedateand(if
applicable )ontheschedule asprovided inArticle 6,allcosts
arising fortherecipient country -forexample demurrage voidfreight and
dead freight –shall beborne bythe

Thechargesandthearrangementsrelatingtodemurragelaiddowninthe ;
contract "betweentherecipientcountryandthecarriermusthavokeenagreed
IinadvancebytherecipientcountryandtheagentoftheEEC.. I
4• !
.r î
Theothercostsreferredtointhefirstparagraphshallonlyberefunded j
bytheEECiftheyhavebeenpaidbytherecipientcountry ,withtheapproval i
oftheEEC. ' I
;
I
Article5 'I
ShoulditproveimpossiblefortheEECtosupplyallorpartofthegoods
onthedateandwithinthetime-limitsprovidedforinArticle6andwithout
prejudicetotheprovisionsofArticle4»anewdateandanewtime-limit
shallbeagreedbetweentheageritsoftheEECandoftherecipientcountry
forthedeliveryofallthegoodsoroftheundeliveredpartthereof.
Obligations oftherécipientcountr.y \
Article6 • j
AftercontactingtheEEC,therecipientcountryshallprocureoneormorevesselsj
totransportallthequantitiesprovidedforinArticle1oftheAgreement,of|
dimensionscorrespondingtothenormalcapacityoftheportofshipment;these|
vesselsmustbereadyforloadingonadatefallingwithintheperiodreferred j
toinArticle3. f
I
Theagentoftherecipientcountryshallinform .theEECofthisdate
immediatelyonlearningit,andalsothatforcommencementofdelivery,
ifpossibletwentydaysinadvanceandinanycasetendaysbeforethedate
forcommencement ofdelivery. .
■ i:
HeshallestablishwiththeagentoftheEECthescheduleonwhichdeliveryshallf
takeplace. -
•/. !
• i..... . f
-. t­
• {

Article7
Shouldtherecipientcountrybeunabletobeginloadingonthedateprovided j
forinArticle6,paragraph1,theagentoftherecipientcountryshallin­
formtheagentoftheEECwithoutdelay.
Inthiseventanewdateforthecommencementofdeliveryand(ifapplicable)are:
schedulecouldagreedbetweentheagentsoftheEECandoftherecipient j
country.Thecostsarisingfromthisdelayshallinallcasesexceptforce j
majeurebebornebytherecipientcountry. ••• • i
f ■<Shouldthenewdateprovidedforinparagraph2bemorethan30cleardays |
afterthedateforloadingprovidedforinArticle6,paragraph1,theEEC i
may--dispose ofthegoodswithoutprejudicetoitscommitmentunderArticle1
ofthisAgreement. %
!
Arti(51e8 " ' ■*j
fIfthequantitymadeavailableforloadingonavesselcannotbeputon
boardinitsentirety,therecipientcountryshallinformtheESCassoon
aspossibleandnolaterthanfifteencleardaysafterloadinghasbeen j
completedwhetheritintendstoacceptortorenouncethebalance. j
r
IntheformercasetheprovisionsofArticle7»paragraphs2and3»shall i
applytothebalance,ifdeliveryhasnotyettakenplace.
InthelattercasetheEECmayconsiderthatithasdischargeditscommitment i
i 1totherecipientcountryunderArticle1ofthisAgreementandshallbear !
thecostsresultingfromsuchrenunciation . f
I
» r
Inanyeventaftertheexpiryofanintervalof.fifteencleardaysandin]
theabsenceofanynoticeonthepartoftherecipientcountry,therenun­
ciationshallbedeemedtohavetakenplace.
Article9 ' .'■■■)
Upondeliveryofthegoods,therecipientcountryshallhandtotheagentof.j
theEECacertificateofacceptancestatingtheportofshipment,dateof[
acceptance,thenatureand.quantityofthegoodsacceptedandincluding \
anycommentsonthequalityofthegoods. \ ;
(
I