ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73)743
Vol.1973/0144

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COMMISSION CPTHEEUROPEAN COMMUNITIES
COM(73)743final
Brussels,16May1973
COMMUNICATION FROMTHECOMMISSION TOTHECOUNCIL
concerningimplementation oftheAgreementconcludedwith
theICRCforthesupplyoffoodaidtoNigeriaandEast
Pakistan
RECOMMENDATION OFACOUNCILDECISION
concluding anAgreementbetweentheEuropeanEconomic
CommunityandtheInternational CommitteeoftheRed
Crossalteringtheamountsspecifiedintheagreement
relatingtothesupplyofcerealsasfoodaidsignedon
20January1971
(submittedtotheCouncilbytheCommission)
COM(73)743final

A.AIDTONIGERIAINTHEFORMOPGRUELANDSOUP
I.CONTiffTTOFTHEAGREEMENT INBRIEF
Afterthecessationofhostilities inNigeriatheCommunitydecidedin
principleon20January1970tomakefoodaidavailabletothosewhohad
sufferedasaresultoftheconflict,throughtheagencyoftheICRC.This
aid,intheformof600metrictonsofgruel,acompletefoodforchildren,
and3000metrictonsofsoup,acompletefoodforadults,wasthesubjectof
anAgreementmadewiththeICRCon25March1970"''.
UnderthisAgreementtheCommunityundertooktosupplycerealproductsforthe
manufactureofgruelandsoup,amountingto399^metrictonsofunworked
cerealsand645metrictonsofskimmedmilkpowder(of.Annex1),these
quantitiestobesetagainsttheagreementsmadewiththeICRCfor16667metric
tonsofunworkedcereals(for1968-69)andtheagreementfor3000metrictons
2ofskimmedmilkpowder.
Responsibility formanufacturing andtransporting thegruelandsoupwasleft
totheICRCbuttheCommunityagreedtorefundmanufacturing costs-including
expenditure onotheringredientsnecessaryfortheirmanufacture-andcosts
incurredbetweentheFOBstageandCIFstage,onproductionofdocumentary
evidenceofsuchexpenditure .ForthispurposetheCouncildecidedto
allocatefundstotalling600000unitsofaccounttobesetagainstArticle145
ofthe1970Budget. .
H.ICTLEMENTATION OF-THEAGREEMENT
I.Manufacture
BetweenApril1970andMarch1971»2551metrictonsofsoupand522metric
tonsofgruel(netweight)weremanufactured .However,ofthesequantities,
only1610metrictonsofsoup(gross,weight)and339metrictonsofgruel
wereforNigeriabecauseadecisionwastakeninthemeantimetoallocatepart
ofthem(100metrictonsofsoupand200metrictonsofgruel)tovictimsof
thecycloneinEastPakistan.
e0•J00»
1OJNoL107,19May1970
2OJNoL84,14April1971

Afterthese2551metrictonsofsoupand522metrictonsofgruelhad"been
manufactured ,theCommissionagreedwiththeICRCtopostponethemanufacture
offurtherquantitiessincethefundsthathadteenmadeavailable(600000
unitsofaccount^wereinsufficienttocovermanufacturing costswhichhad
provedhigherthananticipated^.
2.TransDortation anddistribution
Whilemanufacture wasinprogress(fromApril1970"toMarch1971)noaidcould
bedispatchedtoNigeriabecauseofdifficulties encountered bytheRedCross
withtheLagosauthorities overtheveryprincipleofICRCintervention .
Afterprotractedbargaining,thetwopartiesagreedinMarch1971thattheaid
wouldbedistributed bytheCommissioner forDevelopment andReconstruction of
EastCentralState.AtthesametimetheICRCwasgivenanassurancethatit
wouldbeallowedtosupervisedistribution .Shipmentsthenbeganbut,forthe
reasonsgivenabove,onlypartofthequantitiesmanufactured wereinfact
shipped(339metrictonsofgruel(netweight)and1610metrictonsofsoup
(netweight)).
3«AcompletehalttotheoperationrequestedbytheICRC
InMay1972theICRCrequestedacompletehalttotheoperationinviewofthe
factthattwoyearsaftertheendto.hostilitiesfarfewerpeoplewereseeking
foodaidandthat,despitetheassurancesgiven,theICRChadnotbeenallowed
ptosupervisedistribution .
AlthoughfullyinagreementwiththeICRC'sposition,theCommissionpreferred
towaituntiltheendof1972toseewhetheranyfurtherfactcrswouldcome
tolightwhichmightsuggestanalternativesolution.Thishasnothappened
andtheCommissionisnowconvincedoftheadvisability ofabandoningthe
operation.
FurthermoreitdidnotprovepossibleasrequiredbythePakistanAgreement
(seebelow),tobuildupstocksforNigeriabecausetheauthoritiesin
Lagoshadnotconfirmedthattheywantedtoreceivethesequantitiesin
absolutepreferencetoanyotherproducts.
Asaresulttheonlyreportonthe.implementation oftheAgreementforwarded
totheCommissionbytheICRCtodateisareportdrawnupbythe
CommissionerforEconomioDevelopment andReconstruction ofEastCentral
StateofNigeria.Thisreport,thoughincomplete,showsthatthegruel
andsoupweredistributed bytheNationalCommissionforRehabilitation
totheneedyinthe'EastCentralState",the'RiversState"andthe
"SouthEasternState".TheEastCentralStatewasparticularlyappreciative
oftheoperation.

-3-
B.AIDTOPAKISTANINTHEFORMOFGRUELA1TDSOUP
I.CONTEMTOFTHEAGHEEESKT IffBRIEF
FollovjingthecycloneinEastPakistanon13November1970theCommunity,on
23NovemberlS7o\approvedanemergencyreliefprogrammefor200metrictons
ofgrueland1000metrictonsofsoup.Thiswasinadditiontoenemergency
aidprogrammefor35000metrictonsofunworkedcerealequivalentv:hich,
"becauseofthelengthoftheproceduresinvolved,couldnotsatisfythe
immediateneedsofthevictims.Theseproductsweretohedeliveredthrough
theagencyoftheICRCandforwarded "byairsincethequantitiesspecified
could"bemadeavailableimmediately bydrawingonstocksoriginallyearmarked
forNigeriabutwhichhadnotyetbeenshipped.
ItwasagreedwiththeICRCthattheCommunitywouldreplacethesestocks
shouldtheNigerianGovernmentconfirmthatitwantedtoreceivethese
quantitiesinabsolutepreferencetoanyotherproducts.A.sumof250000u»a
wassetasideforthispurpose.
TheCommunitylefttheresponsibility fororganizingairtransportation to
thaICRCandundertooktorefundexpenditure ontransportation uptoa
maximumof$850000onproductionofdocumentaryevidence.
II.IHPLHOTTATICN "OFTHEAGREEMENT
1.Manufacture '
Implementation oftheAgreementinvolvednoadditionalmanufacture because,
apartfromthefactthatthenecessaryquantitiesweredrawnfromstocks
whichhadbeenmadeavailableforNigeria,therewasnonecessitytoreplace
thesequantitiesbyundertakingfurthermanufacturesincetheauthoritiesin
Lagoshadnotconfirmedthattheywantedtoreceivethesequantitiesin
absolutepreferencetoanyotherproducts.
•«©Ie••
TheAgreementwiththeICRCwassignedsubsequently (on2March1971)
cf.OJNoL84,,14.4.1971

-4-
2.Transportation anddistribution
Shipmentstotalled200metrictonsofgrueland1008metrictonsofsoup
("bothgrossweight).
(a)Theairlift "beganfourdaysaftertheCommunitydecision.Between
29Novemberand7December,23aircrafttransported :
200metrictonsofgruel
710metrictonsofsoup.■
TherapiditywithwhichtheCommunityactedonthisoccasionmeantthat
themosturgentneedsofthecyclonevictimscouldhemet.The"bulk
ofthefoodhadbeendistributedbefore7January1971•
(b)Allthesoupwasnottransportedbyair.EarlyinDecember1970,a
Vice-President oftheLeagueofRedCrossSocietiesandthePresidentof
theEastPakistanpLodCrossdecided,inviewofthecongestionatDacoa
Airport,toaskdonorstoabandonexpensiveshipmentsbychartered
aircrafttoDaccaandinsteadtoshipfoodbyseatoChittagong,
On23December1970*therefore,theICRCdispatched299metrictonsof
soupbysea;theshipmentarrivedinChittagongatthebeginningof
February1971•
(c)TheICRCforwardedthefollowingreportonthereceptiongiventothe
gruelandthesoup:
"Therewasaseriousshortageofprotein.Normally,themainsourceof
proteinisfishbut,sincethefishingfleethadbeenlargelydestroyed,,
thisBsuroewasnolongeravailable.Theonlyprobleminvolvedin
addingsouptofamilydietswasthatofshowingpeoplehowtouseit.
Womenworetrainedasinstructors andvisitedthevillagesgiving
demonstrations .Thesoup,eatenaloneorinconjunctionwithrice,was
acceptedveryquickly,aswasthegruel.MrWengerandtheother
International RedCrossdelegatesweredelightedwithbothproducts."

-5-
C.STATE3EMT ONTHENIGERIAANDPAKISTANOPERATIONS
Thegeneralbalancesheetbelow,whichsummarizesthedetailed ,"balancesheet
appearinginAnnex1,indicatesthatextenttowhichanticipatedexpenditure ,
onthesupplyofproductsandintheformofcashpayments,hasbeeneffected
todate.
Estimatedtonnage TonnageanaTonnageused
endexpenditure fundsact-andexpenditure
for4000metricuallysetincurred(for
tonsofsoupand aside 2551metric
GOOmetrictonsof tonsofsoupand
gruel ■ 522metrictons
ofgruel
Unworkedcerealssupplied
byEEC
Skimmedmilkpowder
suppliedbyEEC
Cashpaymentsmadeby
EECformanufacturing
costs(includingpurchaseofingredients)and-
transportcosts532/metric
tons
860metric
tons
1700000 .
unitsofaccount3996
6453595
metrictons
552.5
metrictons
1700000.1404897
unitsofaccountunitsofaccount
1.Supplyofunworlcedcereals:The399°metrictonssetasidefortheICRC
(undertheAgreementof25March1970)hadbeensetagainsttheAgreementfor
16667metrictonswiththeICRCfor1968-69,thedifference(12671metric
tons)beingmadethesubjectofanewagreementdated20January1971*In
viewofthefactthatnotallofthequantitysetaside(3996metrictons)
wasused,theCommissionconsidersthatthetonnagespecifiedinthe
Agreementof20January1971shouldbeincreasedbythequantitynotused-
thatistosayby401metrictons-thusbringingthetonnagecoveredbythe
newAgreementto13072metrictons.
2.Supplyofskimmedmilkpowder,;Ofthe645-metrictonssetasideforthis
operation,552.5metrictonshavebeenmadeavailableformanufacturing
purposes.Thedifference–92.5metrictonshasbeenusedforotherpurposes
withinthetermsoftheAgreementfor3000metrictons.ThisAgreementhas
nowbeenfullyimplemented .
3«Cashpayments:ThefollowinghavebeenrefundedtotheICRC:
–thetotalcostofmanufacturing 2551metrictonsofsoupand522metric
tonsofgruelandthetotalcostoftransporting aidtoNigeriabysea
(makingatotalof596540unitsofaccount).
0«»/«••

Theoostofpurchasingingredients ,includingsoupconcentrate,necessary
forthemanufacture ofthesoupandgruelhave"beenrefundedtothe
ICRC,asagreed,undertheheadingofmanufacturing costs.Thequantities
ofsoupconcentrateaotuallyusedfellsofarshortoftheoriginal
estimatethatoneofthemanufacturers hasapproximately 50metriotons
ofitstillavailable.TheCommissionsuggeststhat,asrequested "bythe
ICRC,thistonnageshouldheleftatitsdisposalforuseinrelief
operations .TheICRCwouldhefreetochoosethe"beneficiaries andwould
assumeresponsibility fortransportation ,theunderstanding beingthat
thefoodisdistributedfreeofchargetopopulationgroupsindeveloping
countries.
-Thebulkofthecostoftransportation toPakistan.Onlythecostof
airtransportation hasbeenrefundedsofar(808357unitsofaccount)
sincetheAgreementmakesnoprovisionforthereinibursement oftheoost
ofseatransportation whichinthisinstanceamountstoPS78434*90
(19217unitsofaccount).Itseemsappropriate,therefore,thatthe
Communityshouldadoptadecisionapprovingsucharefundfromthefunds
earmarkedforthispurposeinthe1972Budget(Article400)andcarried
forwardto1973.
Ifthisrefundismade,cashpaymentswillshowasavingof275886units
ofaocountontheoriginalestimate.
III.CONCLUSIONS
TheCommissionproposesthattheCouncildecide:
1.ThatmanufactureofgruelandsoupforNigeriabestoppedcompletelyin
thelightofthesituationoutlinedabove; .
2.Thatthecerealtonnage(401metrictons)notusedinthemanufactureof
gruelandsoupbeaddedtothetonnagecoveredbytheAgreementof
20January1971bymeansoftheagreementintheformofenexchangeof
letterswhichappearsinAnnexII; ...
3.Thattransportation costsbetweentheFOBandCIFstagesforpartofthe
foodaidforPakistan,.amountingtoPS78434-90(19217unitsofaccount),
berefunded;
4.Thatthe50metrictonsofsoupconcentratenotusedbeleftatthe
disposaloftheICRCasdetailedabove.

-7-
i - :
COMCTTflEMTS .PRODUCTS SUPPLIED MP CASH MADE AVAILABLE FOR THE
MANUFACTURE AMD TRANSPORTATION OF4000METRIC TONS OFSOUP AITD
800METRIC TONS OFGRUEL
Commitments
(inmetric tons )Products supplied ,
(inmetric tons )Products lioi
yet supplied
(inmetric tors *)
Produots Quantity Quantity
produced
inun-
worked
cereal
equivalentQuantity Quantity
produced
inun-
worked
cereal
equivalentQuantities of
unworked
cereals and
milk
I.Soup Manufacture
1.For the manufacture
of3000 metric tons
ofsoup forNigsria ,
(a)cereals ^
wheat meal ■690*
tarley meal 660*
corn meal 69O*
total cereals
(b)skimmed milk powder 555*
2.For the manufacture
of1000 mstrio tons
ofsoup for Pakistan
(a)cereals
wheat meal 230
"barley meal 220
com meal 230
(b)skimmed milk powder 185
II.Gruel Manufacture
1.For the manufacture
of600metric tons of
gruel forNigeria
(a)cereals
wheat flour 144*
barley flour 144*
total cereals
(b)skimmed milk powder 90*
2.For the manufacture
of200 metric tons of
tTruel for Pakistan
(a)cereals
wheat flour 48
"barley flour 48
(b)skimmed milk powder 301090*
1188*
1242*
3520*
363
396
414
1173
217*
2S<~>*
476*
72
86
1586II.5
585.0
611.5
462.5
144
144
90966
1053
1100
3119
217
259
476124
135
142
401 ;
92.5
363
396
414
185
72
86
30

ι-8-
Cash
' "h .Commitments
"(inunits of
account )Payments made
""(inunits of '
account )Payments not
yetmade
(inunits of
account )
I. Nigeria
lîanufacrfcure and
transportation 600 000 596540 3460
II.Pakistan
Manufacture and
transport ation 1100 000 827574 272426
(a)manufacture 250000 250000
("b)transportation 850000 827574 , 22426
Tonnages actually setaside
This includes 19217units ofaccount ,asyetunpaid ^representing the
refund ofthecost oftransporting 298.7 metric tons ofsoup bysea *

Ronorw.;ndr.tion ofa
•Council Decision
concluding anAgreement "between theEuropean Economic Community
andtheInternational Committee oftheRedCross altering the
amounts specified intheagreement relating tothe supply of
cereals asfood aidsigned on20January 1971
THECOUNCIL OPTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,and
inparticular Articles 113 ,114and228thereof ;
Having regard totheRecommendation from theCommission ;
Whereas theEuropean Economic Community undertook tosupply theInternational
Committee oftheRedCross with 3996metric tons ofcereals forthe
manufacture ofgruel and soup under theAgreement dated 25March 1970 ;
Whereas ,nowthat this operation has "been finalised ,itappears that only
3595metric tons were infact supplied ;
Whereas thetonnage specified intheAgreement of20January 1971 between
theEuropean Economio Community andtheInternational Committee ofthe
RedCross should therefore beincreased by401metric tons ,theamount of
theunused balance ;
HAS ADOPTED THIS DECISION : .
Article 1
Anagreement ,intheform ofanexohange ofletters ,ishereby concluded on
behalf oftheEuropean Economic Community with theInternational Committee
oftheRedCross altering thetonnage specified intheAgreement relating
tosupply ofcereals asfood aidsigned on20January 1971 *
Article 2
ThePresident oftheCouncil ishereby authorized toappoint adelegate to
sign theAgreement andtoconfer onhimthersquisite full powers onbehalf
oftheCommunity .
Done at
For the Council
The President

ExchangecfLai-ter<5
A.LetterfromtheEuropeanEconomicCommunity
WithreferencetotheAgreementbetweentheEuropeanEconomicCommunity
andtheInternational CommitteeoftheRedCrossrelatingtothesupply
ofcerealsasfoodaid,signedon20January1971»Itegtosuggest
thatthefigureof12671metrictonsspecifiedinArticle1ofthat
Agreement "bereplaced "bythefigureof13072metriotons,theadditional
tonnagerepresenting quantitiesprovidedforhutnotusedinthe
manufactureofgruelandsoupinimplementation oftheAgreementof
25March1970.
Iwouldbegratefulifyoucouldsaywhethertheforegoingmeetswith
yourapproval.
B.LetterfromtheInternational CommitteeoftheRedCross
Iherebyacknowledgereceiptofyourletterof wordedas
follows:
"Withreferenceto meetswithyour
approval"
IsjnpleasedtoinformyouthattheInternational CommitteeoftheRed
Crossisinagreementwithyourproposal.