ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(79)332
Vol.1979/0122

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(79)332 final.
Brussels ,18June1979
COMMUNICATION FROMTHECOMMISSION TOTHECOUNCIL
onthelevelofCommunity aidundertheFoodAidConvention
from1979/80onwards
COM(79)332final.»»

FoodAidConvention-Community commitments from1979/80onwards
Introduction
1.TheUNCTADnegotiating conference oncereals,havingfailedtoreachagree­
mentonthecontentsofanewWheatTradeConvention,adjourned on
14February1979witharesolution (textannexedatAnnexI)advocating
thefurtherextension,pendingtheresumptionoftheconference atan
appropriate time,oftheWheatTradeConvention andtheFoodAidConvention
whichtogethercomprisetheInternational WheatAgreement,1971.
2.AsregardstheFoodAidConvention,paragraph 3oftheresolution recommended
thatthisbeextended"inthelightoftheworkaccomplished atthe
conference".
c
3.ThetextsofProtocols ,ofExtensionforafurthertwoyearswereestablished
ataconference heldinLondonforthatpurposeon22March1979.The
conference adoptedatthesametimearesolution (textannexedatAnnex2)
recommending ,interalia,"thatwithaviewtotakingappropriate
decisionsatthenextmeetingoftheFoodAidCommittee,waysbeexplored
tobringintooperationfrom1979/80theincreasedlevelsofaidandother
provisions asenvisagedinthedraftFoodAidConvention nowbeforethe
UNConference".ThenextmeetingoftheFoodAidCommittee hasbeenfixed
for25June1979,withthepossibility cfafurthermeetinginthesame
week,ifrequired. .
4.ACommunitypositionisrequiredtobeestablished forthesemeetings.
« »
Background
5.TheUSAhasalreadyannounceditsintentiontoraiseitsminimumannual
obligationwitheffectfrom1July1979tothe4.47milliontonnesit
pledgedinthenewdraftConvention,regardlessofwhetherthenew
Convention comesintoforceornot.Oftheotherdonors,onlySweden
(40000tonnes)hassofarfollowedsuit.
60TheCommunity,position,ontheotherhand,hassofarbeenbasedontheneed
tomakeparallelprogressinboththetradeendaidaspectsofthenego­
tiations.Inconseouertce,theCommunityhasmaintainedthatitsfood

2
aidcommitment remainsattheoldlevel <1.287miotonnes)unlessanduntil
anewcerealsagreement,including anewFoodAidConvention ,issuccess­
fullynegotiated .
7.Theprospects forsuccessful resumption ofthenegotiating conference
dependonfindingsolutions whichwillbridgethewidedisparities onprice
levelssoughtbyexporters (particularly theUSAandCanada)andtheimporters
(particularly thedeveloping importers),nottomentionthedisparities on
reservestocklevelsandspecialprovisions fordeveloping countries .This
maytakeaconsiderable time.
8.Meanwhiletherearepolitical pressures ontheCommunity,aswellasother
donors,toraisethe.leveloftheirfoodaidcommitments inthenearrather
thaninthedistant future.These
willcertainly beinevidence inLondonattheJunemeetings .
9.Inthesecircumstances theCommunity needstoreappraise itsattitude to
themaintenance ofparallelism betweenthetradeandaidconventions ,
particularly asregardstiming.
10.TheCommunity emerged fromthethirdroundofthenegotiations witha
gooddealofpolitical credit,particularly amongdevelcping countries,for
itsmoderate andpractical stance.TheUSAwasinthecontrarysituation .
Thesepositions wouldbereversed,tonoadvantage totheCommunity,ifit
continues toinsistthatitwillnotincreaseitsfoodaidlevelunless
thereisanewtradeconvention .Thiscouldnotsucceedinbringing the
developing countries toaccepttheUSA-Canadianpriceproposals andwouldbe
seenasaratherineptattemptatblackmail .
. ». h
11.If,ontheotherhand,theCommunity couldputforward areasonable pro­
positiontosolvetheaidprobleminapractical way,whilemaintaining
itsgeneralposition onthecontentsofthetradeconventions ,itspolitical
creditwouldbestillfurther enhanced . _■ i.:
12.Thetwomainoutstanding issuesinthedraftFoodAidConvention were

-3-
(a)thewordingoftheobjectives .Certaindeveloping countries stillinsist
thatthisshouldimplyanobligation onsignatory donorcountries to
meetthewholeofthe10milliontonneaidtarget;and
<b)thelinkbetweentheFoodAidConvention andtheWheatTradeConvention .
Theseremainpolitically sensitive issues,whichitwouldbeunwisetore­
solvebyunilateral decision onthepartofthedonors.Itwouldbe
equallyunwise,however,togivetoomuchscopetodeveloping countries to
continue hard-line tactics onthesepoints.
13.Theseconsiderations pointtotherejection bothof(a)anyproposal for
theFoodAidCommittee toturnitselfintoaconference toestablish the
textofthenewFoodAidConvention unlessthetwoissuesreferred toin
paragraph 12abovehadbeenresolved withdeveloping countries beforehand ;
and(b)anyproposal foranewUNConference todealwiththeFoodAid
Convention inisolation fromotherissues.
Proposed CourseofAction
14.Unlesstheearlyresumption ofthecerealsnegotiating conference is
decidedatthemeetings inLondon,duringtheweekbeginning 25June1979,
theCommunity shouldproposetheadoption ofaresolution bytheFoodAid
Committee whichwoulddeclaretheintention ofthedonorcountries tT
carryouttheirobligations undertheProtocol ofExtension asthoughthe
provisions ofArticleIIIofthedraftFoodAidConvention wereinforc£.
witheffectfrom1July1979.Theseprovisions providenotonlyforthe
higherlevelofaidcommitment ,butalsore-define alltheoperational
mechanisms oftheConvention (thecash-equivalence andtherice-equivalence
formulae,theprocedure fortriangular operations ,theevaluation oftrans­
portcostsbeyondf=o.b«bornebydonors,etc.)inlinewiththeCommunity's
negotiating mandate.
15.Sincenoneofthesepointsisindisputethedeveloping countries could
notobjectthattheirviewswer.ebeingover-ridden ;whilethedonorcoun­
triescouldjustlysaythattheywerefullyimplementing thespiritof

paragraph 3oftheresolution of14February 1979.Fromthepointofview
oftheCommunity,thisformulation wouldhavetheadvantage ofbringing
intoeffecttheoperational improvements onwhichMemberStatesplace
importance atthesametimeasthehigherlevelofaid.Inaddition,the
doorwouldbeleftcompletely openforan.overallsolution throughthe
resumption ofthegeneralnegotiating conference ,wheneverthatshouldprove
practicable ,withoutimposing unduepressure toresumetheconference pre­
maturely simplytoresolvethefoodaidIssue..
/ '!'«*'■ •;' •j
Financial implications _ V,
•h
16.TheleveloftheCommunity'stotalfoodaidobligation wouldriseby28.2X
witheffectfrom1Ji/ly1979.Thecostincreasetobebornebythe
Community budgetwoulddependondecisions astohowthisobligation
shouldbedistributed' betweentheCommunityissuchandtheMemberStates,
aswellasonprevaiiMngmarketpriceconditions .Itisnotproposed
>toseekfurtherbudgetary appropriations for1979., |i
Conclusions
17.TheCouncilisrequested toapprovethat,iftheresumption
oftheUNnegotiating conference forcerealsisnotdecided
uponatthemeetings inLondonintheweekbeginning
25thJune1979,theCommission ,onbehalfoftheCommunity,
shallproposetheadoption ofaresolution bytheFoodAid ,<
Committee whichwoulddeclaretheintention ofsignatory
donorcountries tocarryout,witheffectfrom1stJuly1979,
theirobligations undertheProtocol ofExtension oftheFood
AidConvention asthoughtheprovisions ofArt.Illofthe
draftFoodAidConvention whichwasbeforetheUNnegotiating
conference wereinforce.Therefore theattention oftheCouncil
isdrawntothefactthat^asaconsequence oftheapplication
ofsuchResolution ,theCommunity'saidcommitment willberaised
to1.^650,000 tonnesandthedefinitions ofoperational mechanisms
contained inthedraftArticleIIIwillbeappliedwitheffect
from1stJuly1979. .....

ANNEX I
RESOLUTION ADOPTED BYTHE
UNITED NATIONS NEGOTIATING CONFERENCE
The United Nations Conference toNegotiate anInternational
Arrangement toReplace the International Wheat Agreement ,
1971 ,asExtended ,
1.Decides toadjourn ;
2.Recommends that the International Wheat Council
extend theWheat Trade Convention ,1971 ;
3.Recommends that theFood Aid Committee extend
theFood AidConvention ,1971 ,inthelight
ofthework accomplished attheConference ;
U.Requests theUNCTAD secretariat ,inconsultation
with theExecutive Secretary oftheInternational
Wheat Council ,toprepare adocument reflecting
the present status ofthework ofthe Conference ,
with aview toaresumption ofthenegotiations ;
5.Requests theInternational Wheat Council ,once
itissatisfied that thenecessary conditions
exist foraresumption ofthenegotiations ,to
request theSecretary-General ofUNCTAD tofix .
adate for thereconvening oftheConference .
11th meeting
l^th February 1979

ANNEX II
1.Resolution adopted "bythe Conference for
the establishment ofthe texts ofthe
1979 Protocols for the fifth extension of
the International Wheat Agreement ,1971
(London ,21st -22nd March 1979 )
Inestablishing thetexts ofthe1979 Protocols fortheextension
oftheWheat Trade Convention andtheFood AidConvention ,1971 ,
foraperiod oftwoyears (to30th June 198l ),theConference
draws totheattention ofallGovernments thenecessity ,inthe
interests of
-contributing tothefullest extent possible tothe
stability oftheinternational wheat market ;
-contributing toworld food security ,especially
safeguarding theinterests ofdeveloping members ;
-moderating extreme price fluctuations ofwheat ;
-increasing thelevel offood aid
toresolve asquickly aspossible theoutstanding questions of
substance still impeding theconclusion ofaninternational
arrangement inorder toprepare theground fortheresumption
oftheUnited Nations Negotiating Conference .
Inrelation tofood aidinparticular ,theConference recommends
that ,with aview totaking appropriate decisions atthenext
meeting oftheFood Aid Committee ,ways beexplored tobring into
operation from 1979 /80theincreased levels ofaidandother
provisions asenvisaged inthedraft Food AidConvention now
before theUNConference tonegotiate aninternational
arrangement toreplace theInternational Wheat Agreement ,1971 ,
asextended .
2.Resolution adopted bythe International
Wheat Council atits Eighty-sixth Session
(London ,20th -22nd March 1979 )
The Council authorizes theChairman and the Executive Secretary
oftheCouncil ,inassociation with theChairman oftheUnited
Nations Negotiating Conference ,toinitiate immediately the
process ofconsultations andcontacts with aview toimplementing
theresolution adopted bytheConference fortheestablishment of
the texts ofthe 1979 Protocols forthe fifth extension ofthe
International Wheat Agreement ,1971 •TheCouncil requests the
Executive Secretary toreport onthese consultations atthenext
session .