30. 1.91 Official Journal of the European Communities No C 22/9 
II 
(Preparatory Acts) 
COMMISSION 
Proposal for a Council Regulation (EEC) introducing a Community guarantee for exports of 
foodstuffs from the European Community to the Union of Soviet Socialist Republics 
COM(90) 670 final 
(Submitted by the Commission on 19 December 1990) 
(91/C 22/09) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Articles 113 and 
235 thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European 
Parliament, 
"Whereas the Union of Soviet Socialist Republics has 
asked the Community to supply it with agricultural and 
food products; whereas, in order to facilitate the export 
of these products to the USSR, the Community should 
provide a loan guarantee facility; 
Whereas provision should be made for the said 
Community guarantee to be provided at the request of 
the USSR for food exports in conjunction with contracts 
between the USSR and Community exporters; 
Whereas provision should also be made that the 
guarantee be extended solely for the purchase of agri­
cultural and food products originating in the 
Community, 
HAS ADOPTED THIS REGULATION: 
Article 1 
A medium-term credit guarantee scheme — hereinafter 
called 'the guarantee' — is hereby instituted to enable 
the Union of Soviet Socialist Republics to import agri­
cultural and agri-food products from the European 
Community on the terms and conditions set out in this 
Regulation. 
Article 2 
The Community guarantee shall cover, in the event of 
default, the repayment of the principal and interest on 
loans in ecus granted to the USSR by a pool of 
commercial banks established in the Community for the purchase and importation of agricultural and food 
products, in accordance with an agreement to be 
concluded between the Commission of the European 
Communities and the Government of the USSR. This 
agreement shall inter alia contain a list of the products to 
be purchased, the terms of purchase and importation, 
and provisions governing the said loans. 
Article 3 
The total credit for which the repayments are covered by 
the guarantee may not exceed ECU 500 million with a 
minimum maturity of four years. 
Reimbursement of the loan capital shall be in equal 
instalments from the end of the third year at the earliest. 
Article 4 
The Commission and the pool of commercial banks shall 
draw up the conditions on which the Community 
guarantee is to be extended. The guarantee shall be 
extended only where the trade contracts financed with 
the credit backed by the guarantee are intended solely to 
cover the purchase of agricultural and food products 
originating in the Community and where there is free 
competition to supply these products. 
Article 5 
The Commission shall lay down, as required, the 
detailed rules for the implementation of this Regulation 
in accordance with the following procedure. 
Where recourse is to be made to the procedure set out in 
this Article, the Commission shall be assisted by a 
committee of an advisory nature composed of represen­
tatives of the Member States and chaired by the 
representative of the Commission. 
No C 22/10 Official Journal of the European Communities 30. 1. 91 
The representative of the Commission shall submit to the 
committee a draft of the measures to be taken. The 
committee shall deliver its opinion on the draft, within a 
time limit which the chairman may lay down according 
to the urgency of the matter, if necessary by taking a 
vote. 
The opinion shall be recorded in the minutes; in 
addition, each Member State shall have the right to ask 
to have its position recorded in the minutes. 
The Commission shall take the utmost account of the 
opinion delivered by the committee. It shall inform the 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Articles 43 and 
235 thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European 
Parliament, 
Whereas agricultural products should be made available 
to the USSR, Romania and Bulgaria to improve the food 
supply to the population; whereas the Community has 
agricultural products in storage as a result of inter­
vention measures and, in view of the situation on the 
market, priority should be given to supplying these 
products; whereas, however, provision should be made 
for mobilizing products on the Community market in 
response to specific requests; whereas regularization of 
the agricultural markets may also be achieved by 
supplying such products in processed form; 
Whereas the action proposed is essentially humanitarian 
in its aim and should therefore also be based upon 
Article 235 of the Treaty; 
Whereas it is for the Commission to set detailed rules for 
this scheme, committee of the manner in which its opinion has been 
taken into account. 
Article 6 
This Regulation shall enter into force on the day 
following its publication in the Official Journal of the 
European Communities. 
This Regulation shall be binding in its entirety and 
directly applicable in all Member States. 
HAS ADOPTED THIS REGULATION: 
Article 1 
The Community shall take urgent action to supply the 
USSR, Romania and Bulgaria with agricultural products. 
Expenditure on this scheme shall be limited to ECU(B) 
350 million of the budget, namely ECU 250 million for 
the USSR, ECU 100 million for Romania and for 
Bulgaria. 
Article 2 
For the purposes of this scheme: 
1. the Community shall transfer agricultural products 
available as a result of intervention free of charge to 
the USSR, Romania and Bulgaria; in response to 
specific requests, products may be mobilized on the 
Community market; 
2. supply costs shall be met by the Community and 
suppliers shall be chosen by tendering procedure. 
Transport costs shall be borne by the Community 
unless the recipient country takes the products over in 
the Community. These costs may include processing 
of products mobilized as provided for in paragraph 1; 
3. as an exception, and for reasons arising only from the 
urgency of the scheme, the Commission may choose 
the supplier by direct agreement; Proposal for a Council Regulation (EEC) on urgent action to supply agricultural products to 
the Union of Soviet Socialist Republics, Romania and Bulgaria 
COM(90) 670 final 
(Submitted by the Commission on 19 December 1990) 
(91/C 22/10)