ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(78)716
Vol.1978/0269

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I :
I
COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(78)716final
Brussels,13December1978
RECOMMENDATION FORACOUNCIL DECISION
extendinguntil30June1978theConvention "betweentheEuropean
EconomicCommunityandtheUnitedNationsReliefandWorksAgency
forPalestineRefugees(UNRWA)andtakingtransitionalmeasures
withaviewtotheconclusionofanewConvention *
(Presented "bytheCommissiontotheCouncil)
X
:GM(78)716final

EXPLANATORY NOTE
INTRODUCTION
1)£his communication proposes totheCouncil theextension (with amendments )
fprtheyear 1978 oftheassistance given bytheCommunity totheUnited Nations
.R?Lief andWorks Agency forPalestine Refugees (UNRWA ),under themulti-annual
Convention already concluded with theAgency with effect from 1July 1975 .
V
2)Forgeneral information onUNRWA and itsrelations with theCommunity ,
reference should bemade totheproposal forrenewal fortheyear 1977 ,
recently submitted totheCouncil .Inaddition ,information onthe latest
financial position ofUNRWA will befound inTable 1annexed tothis document .
OPERATION OFCONVENTION ,JANUARY TODECEMBER 1977
Basic rations program
3)The 6000 tsugar contributed for1977 were delivered inJanuary ,anddistributed
during theyear onthebasis ofaration of600 gpermonth toanaverage of
815900 recipients .Average number ofrecipients wasslightly reduced from
normal ,largely since certain refugees refused tocollect their rations for
themonths ofNovember andDecember asaprotest against thenon-issue ofthe
flour ration , -
4)Theother EEC contributions for1977 tothebasic rations program (23500 t
wheat flour ,3200 tbutteroil )were effected outside theConvention using the
normal foodaid procedures (exchange ofletters incorporating standard conditions ).
Supplementary feeding program « .-
5)Operation ofthis program ,forthebenefit ofthemost vulnerable groups among the
refugees ,continued more orless normally during 1977 .Theprogram consists of
theprovision ofmilk ,hotmeals andextra rations tosmall children ,pregnant
andnursing women ,tuberculous patients andother selected medical cases .

6)Therewasaslightdropinthenumberofrecipientsundertheprogram,owingpartty
■totheeventsinLebanonandpartlytothecholeraoutbreakinSeptember1977,
notablyinEastJordan.Thecholeranecessitatedcertainmeasures,includingthe*
.'omissionoffreshvegetablesandfruits,whichinturnresultedindecreased
Iattendance,anddecreasedconsumptionofallcommodities.Forthesamereasons
themilkprogramwassuspendedaltogetherforcertainperiods;ithassincebeen
restarted,butinmodifiedform.
7)aresultoftheabove,smallbalancesremainedunusedattheendoftheyear:
4j?5tflour,23triceand15tsugar.WiththeagreementoftheCommission,
thesewereissuedasbasicrationstoavoidlossorspoilage.
8)Cashexpenditure ontheprogramin1977totalledS3015000(budget:S3million)
analyzedasfollows:
(βχ1000)
Budget Actual
Purchaseofpreservedfoodstuffs 482 530
Otherexpenses : 2518 2485
(ofwhichstaffremuneration : 1933 1870)
Therewasthusashortfallincontributions of615000.Itwillhoweverbe
rememberedthatintheprevious18monthscontributions exceededactualexpenditure
byacomfortable margin.
EXTENSION OFCONVENTION FOR1978
Particulars ofrequest
9)UNRWArequeststhattheCommunitycontinuetocontribute,fortheyear1978:
(a)theannualrequirement ofsugar(6000t)foritsbasicrationsprogram,
togetherwithapaymenttowardsinlandtransportanddistribution costs;
(b)commodities (flour,rice,sugar,milkpowder)requiredforthesupplementary
feedingprogram,togetherwithapaymenttowardsthecostofpurchasingcertain
othercommodities (mostlyintheEEC)andofoperatingtheprogram.
10)TherequestcanbeevaluatedatS6212000(4589000EUA),ofwhichS3564000
isincash,thebalancerepresenting theestimatedworldmarketvalueofthe
commoditiestobedonatedbytheCommunity.Comparedwith1977,thisrepresents
adecreaseof2,9%;: ~
howeverthiscomparisonshouldbetreatedwithcautioninviewofcurrentfluctua­
tionsincommodityprices,,

I
I
Basicrationsprogram (sugar)-
11)TheCommunity isrequested tocontinuetosupplytheannual -requirement ofthe
basicrationsprogramfor6000twhitesugar,based«namonthlyfreedistribution
of600gforeachofthe820000refugeeseligible*Acontribution of830/t
toinlandtransport anddistribution costsisalsosought*Thequantity,and
thecontribution ,areunchanged from1977.
Supplementary feeding program-Commodities .,
12)Contribution requested inkindare:
-2450twheatflour;
.'-171trice;
-102tsugar; -
-700tskimmedmilkpowder.
Theseareatthesamelevelasinprevious years,exceptforskimmedmilkpowder.,
Theamountsrequested haveinfactalready beenallocated toUNRWAbytheCouncil
withinthegeneralfoodaidprograms previously decided.:
13)Asregards skimmedmilkpowder,norequest wasmadelastyear,sinceadequate stocks
wereohhand.Theannualrequirement isapproximately 700t(theamountrequested
for1978),basedonamonthly (issueof1300gforeachrecipient ,(Itmaybenoted
thatthereisnowalsoamonthlydistribution of500gwholemilkpowder,donated
bySwitzerland thisistheonlycqntribution totheprogramotherthanfromthe
-EEC). ..''.
Supplementary feeding program-Cash .•
4)Thecontribution requested incashis83384600,andisintendedtocoverthe
following expenditure (Cf.Table3forfullparticulars ):
a)Purchase ofpreserved foodstuffs -cornedbeef,tomatopaste,pulse^,and
burghol,thefirsttwotobepurchased insidetheEEC.
(Estimated cost:8565000).
b)Expenditure onotherfoods,supplies,premises,contractual services,andstaff
costs-thelastbeingthemajoritem.(Estimated cost:82819000after
takingintoaccountcostsrecovered fromJordangovernment ).
15)Thecontribution for1978compares with1977expenditure of8.3015000,an
increaseof8369000(12,2%).Thisincreaseisduealmostentirelytotherise
instaffcostsfrom81870000to82189000(+17%),theresultofsalary
increments andhighercostoflivingallowances ;otheritemshaverisenby
smalleramounts,orhavefallen.Afulleranalysiswillbefoundintheattached
Table4,prepared byUNRWAattheCommission 'srequest.

Periodofextension
16)Therequestconcerns thetwelvemonthsfromJanuarytoDecember 1978.Previous
periodswere(1)July1975toDecember 1976and(2)January1977toDecember 1977.
TheConvention asoriginally concluded didnotenvisage anyextension beyond
30jJune1978,sinceUNRWA'smandate wasduetoexpireonthatdate.However
the'mandate hasinthemeantime beenextended to30June1981(Cf.UNGeneral
Assemblyresolution 32/90Aof13December 1977); ~
Budgetcharge
17)Theestimated costofthecontribution requested for1978is4589000EUA.This
canbebroken downasfollows :
(EUAx1000)
Commodities Cash Total
Basicrations program
Sugar(6000t)
Supplementary feeding program
Flour,rice,sugar,skimmedmilkpowder
Purchase ofotherfoodstuffs ,
andoperating expenses1164
792133 1297
19562500
26333292
4589
Furtherparticulars aregiveninTable2andintheFinancial Annex. i
18)Thecontribution ischargeable toChapter 92(FoodAid)andChapter 94(Cooperation
withDeveloping Countries )ofthe1978budget.Itdoesnotimplyadditional expenditun
forthebudgetoftheCommunities sincesufficient appropriations undertherelevant
headings havealready beenapproved .
Actionproposed I
19)TheCommission considers thattheCommunity shouldcontinueitssupportforUNRWA,
andshouldaccepttherequestfortheextension oftheConvention fortheyear1978.
Itistherefore proposed thattheCounciladoptthefollowing decision,ofwhich
thetextisattached inAnnex :
-Councildecision (EEC)concluding anagreement,intheformofanexchange
ofletters,toextendfortheyear1978theConvention between UNRWAandthe
EECdated20July1976. '.,

COUNCIL
OfDECISION
extending until30June1978theConvention between
theEuropean Economic Community andtheUnitedNations
ReliefandWorksAgencyforPalestine Refugees (UNRWA)
andtakingtransitional measures withaviewtotheconclusion
ofanewConvention
THECOUNCIL OFTHEEUROPEAN COMMUNITIES
HavingregardtotheTreatyestablishing theEuropean Economic Community
andinparticular Article~TT3 ;_
Havingregardtotherecommendation fromtheCommission ;
Whereas on20July1976theCommunity concluded aConvention withUNRWA
concerning aidto refugees inthecountries oftheNearEast
duringtheperiodJuly1975toDecember 1976(1);
Whereas underArticle 10theConvention maybaextendedforsubsequent
periodswithorwithout amendment byagreement betweenthetwoparties-
until 30June1978;
'- / •
WhereastheConvention should/subjecttocertainamendments/lotonlybe
extendeduntilthisdatebutalsobeappliedduringtherestoftheyear1978
inorderthattheaidoftheCommunity canbegrantedinacomprehensive and
continuous fashion beforetheconclusion ofanewConvention ,
(1)O.J.L203.29-7-1976,p.40

\
HAS DECIDE !)ASFOLLOWS :
Article 1
Theexchange ofLetters concerning theextension until 30June 1978 ofthe
Convention concluded on20July 1976 between theEuropean Economic Community
. . ... ... ... _ . . _ .
andtheUnited Nations Relief andWorks Agency forPalestine Refugees (UNRWA )
concerning aidtorefugees incountries oftheNear East ishireby approved
onJjehalf ofthe Community . •
The text ofthe said exchange ofletters isannexed tothis Decision
Article 2
Pending the conclusion ofanew Convention ,Community aid toUNRWA
shall besupplied forthe rest ofthe year 1978 according tothe amended
provisions ofthe Convention concluded on20July 1976 .
Article 3
ThePresident ofthe Council isauthorized todesignate thepersons
empowered tosign theexchange ofletters andtoconfer onthem thenecessary
powers tobind the Community .
Done at
Forthe Counci l,
The President

1978
TABLE1
UNRVIAINCOMEANDEXPENDITURE 1977AND1978,
(USdollarsx1000)
1977
INCOME
Contributions
EuropeanEconomicCommunity
-MemberStates:B
Da
D
F
Irl
V
N
UK1135
1975
3324
1324
109
253
9
2008
8231
18368
-Communityassuch-basicrationsprogram
(flour,sugar,butteroil
+-cash}
-supplementary feeding
program
(flour/rice,dsm+cash)
*"emergencyprograminLebanon11968
4411
16379
TotalEEC-9
USA
ArabStates
Othercontributions ,etc.
TOTALIN_C_0ME
T0_T_ALE.XPENjniU.RJ
TOTALDEFI_C_I_T34747
48700
5966
33565
122978
126772
3,7941978
(est)
1023
1841
4945
1312
.103
229
12
2461
7246
19172
10490
4997
283
15770
34942
51000
4313
36314
126569
137700
Source:UNRWAreports.

TABLE 2
COMMODITIES ANDCASHREQUIRED FOR1973
COMMODITIES (1)
1)§asic_rations_grogram
6OOOtsugar
2)gupglementar^feeding grogram~
2'450twheatflour
171trice
102tsugar
700tskimmedmilkpowderUSSx1000 EUAx1000(2)
1576
1072
26481164
792
1956
CASH
1)Basic_rations_grogram
*
^nlandtransport anddistribution (3)
2)Sugglementar ^feecHng_grogram
a.Purchases abroad :334tcornedbeef
27ttomatopaste
178tpulses
11Qtburghol
b.Otherexpenses (mainlystaff)180
565
2319133
417
2083
3564 2633
TOTAL 6212 4589
(1)Evaluation atworldmarketpricesdelivered portofunloading ,,197"bud<j?testimates
(2)Taking 1EUA=1,35363 USS(11-1978)
(3)Assuming S30/tonne.

î
TABLE3
ESTIMATEOPTIMCASHCONTRIBUTION HBQUIIQ®FOR
UNRWA'SSUPPLMEITTATtY FEEDINGPROGRAM
1978
1Hot
Meal
$Milk
Programme
$Other
RationsAdmin.
$$Total
?
V'
A. 1purchaseof:
a)Corned,"beef–hotmeal
quality 135,000%135,000
b)Corned "beef–protein
supplementquality 254,200 254.200
c)Tomatopaste 25,200 25,200
d)Puises 115,700mm 115,700
e)Burghol 35,500 _35.500
Total«A»■311,400 2Mt200-565.600
B.1.Otherpurchasedfood
supplies:
a)Localpurchases(inx
particularfreshfruits
andvegetables) 450,000\
.450,000
b)Vitamins 4,900 7,100-'12,000
2.OtherSupplies: 51,00016,000 1,5001,500 !70,000
3.Premises:
a)Rentals 8,4004,100 12,500
b)Maintenance 33,80011,200 45,000
c)Utilitiesandcleaning 5,0002,500 7,500
4.Contractual Services:k.
*•Principally bakingofbread50,000 50,000
5.StaffCosts:
a)Remuneration 1,512,000423,000 254.0002,189,000
b)Travelcostsand
clothing K2Ç03,200 4.600 '15.000
Total,B*2,122,300460,000 8,600260,1002.851.000
C.Costsrecoveredfrom
JordanGovernment (32,000)ma» mm(32,000)
NETTOTAL?*401J00_46O1OOO 3,384,600
19July1978
2Q/am

TABLE4
EstimatesoftheCashContributionrequiredfor
UNHWl'sSupplementary FeedingProgram
Reasonsforthemajorvariations "between
revisedestimatesand19W"estimates.
±221 1978
1.Cornedbeefhotmealquality 163,734 135,000
TJhedifferenceisacoountedforbyaslight
increaseinquantity(340,416to340,447tins)
cpupledwithadecreaseinunitprice(from
$0.48to$0.3966pertin).Themajordis­
crepancy "betweentheseestimatesandthose
submittedinNovember1977isexplainedby
theresponsetoourinvitationtotenderby
onecompanywhichofferedanacceptable
^qualityofcornedbeefatamuchlowerprice.
2.Cornedbeef-proteinsupplementquality 219,422 254j200
Thedifferenceisexplainedbyasmall
decreaseinquantity(672,000tonsto
640,800tins)ataslightlyincreasedprice
(from$0.3265to$0.3966pertin)
3.Puises 93?681 115,700
Therewasaunitpricarisefrom
$526to$650perton
30,670 35»500
Therehasbeenaslightreductioninthe
quantityrequired(from120to110tons)
butasubstantial increaseinprice
(from$255®6to$322.544perton)
5.OtherSupplies 62,598 70,000
Othersuppliesincludeprincipallykitchen
utensils,cleaningmaterials,water,
equipmentandhandlingei'cpenses(otherthan
flour).The1978estimateisnowlower
thaninourNovember1977estimateandre­
presentsonlya10%increase.
..2/.

-2-
6*Maintenance\«
Theincreasereflectsanoverallestimated
15$increaseinthecostsofmaterialsand
labour*1977
39,3451978
45,000
t7+utilities
1,Asfor6.6,534 7,500
8.Contractualservices
Asfor6.43,731 50,000
9.Staffcosts-remuneration
,normalsalaryincrementsandoostof
livingallowancesareestimatedtorise
"byalmost18$1,870,176 2,189,000
10,Travelcostsandclothing
Therehas"beenanoverallestimated15
increaseinoosts*13,752 15,000
Λ
9August1978
\

f1978)
FINANCIAL ANNEX
1.RELEVANT BUDGETHEADINGS
1978BUDGET
*
.Item9201
.Item9211
.Item9221"Foodaid1ncereals-1978Program" ;
"Foodaidin.miIkproducts-1978skimmedmilkpowderProgranVj
"Foodaidinsugar-1978Program"
Article940:"ExpenditureresultingfromConventionbetween
EECandUNRWA"
DESCRIPTION ANDPURPOSE OFOPERATION
Extensionfor1978ofConventionbetweenEECandUNRWAgrantingcontributions
incommodities andincashforuseinfeedingprogramsforPalestinerefugees.
LEGALBASIS
a)CereaIs:Councildecisionof30January1978onthe1978EECfoodaid
programincereals.
b)SkimmedmilkpowderCouncilregulation (EEC)823/78of25Afsril1975
onthesupplyofskimmedmilkpowderasfocdaid
tocertaindevelopingcountriesandspecialized
agenciesuncerthe1978program.
c)Sugar Councilregulation (EEC)1034/76of30April1976onthesupply
ofwhitesugartoUNRWAasfoodaid(fortheyears1975/76,
1976/77and1977/78)
d)Convention :Councildecisionof20July1976onconclusionoftheConvention
betweentheEECandUNRWAconcerningaidtorefugeesin
countriesoftheNearEast.
./.,

A.APPROPRIATIONS
Item92013Cereals .
-2450tflour(équivalent3259tcereals)
EUA/t EUA
Internalprice : 218
Restitution î 106534000
260000
,-112 274000
Transport -50123000
162 397000
171trice(equivalent441tcereals)
EUA/t EUA
Internalprice : 488
Restitution : 15883000
27000
330 56000
Transport 509000
380 65000
TotalCereals 4_6_2_00_0__EUA
Item9211^_J>kimmedŒMUk_Rowder
700tskimmedmilkpowder(Vitaminenriched)•-
EUA/t EUA
Internalprice '• 1'49
Restitution : 756
ι '
393804000
529000
275000
Transport 5035000
TotalSkimmedmilkpowder 443 310000EUA
Item9221;Sugar
-6102twhitesugar: EUA/tEUA
Internalprice : *13
Restitution ? .269s2
1520000
641000
144 879000
Transport ^0305000
194 1184000
-Cashcontribution
Inlandtransportanddistribution (forbasicrationsprogramonly)
6000tat8-30/t "133000EUA
TotalSuqar 000EUA

d)ArjMçle_940-Convention
Contribution S3,384million (Seetext)
Conversion toEUAatassumedrateS1,35363 2500000EUA
(11-1978)
e)X2i2i_2yd2li_£lll£9® 4589000EUA
(Note:Commodity evaluations at1978budgetprices).
4.2Incidence ofcosts
a)Theoperation doesnotimplyadditional expenses beyondthose
appropriations alreadyinthe1978budget.
b)Thecommodities haveeitheralready beendelivered orwillhave
beenbytheendof1978(onthebasisofCouncildecisions fixing
foodaidprograms),chargedtothe1978budgetappropriations for
foodaid.Thecashcontributions havenotbeenpaid.
CONTROL OFEXPENDITURE
Financial regulation of21December 1977applicable togeneral budgetof
theCommunities .

EXCHANGE OFLETTERS
LetterfromEECtoUNRWA
WithreferencetotheConventionconcludedon20July1976
betweentheEuropeanEconomicCommunityandtheLnitedNationsReliefand
WorksAgencyforPalestineRefugeesconcerningaidtorefugeesinthe
countriesoftheNearEast,theCommunityproposesthatinaccordance
withArticle10theConventionbeextendeduht.1l30June1978,
subjecttothefollowingamendments :
<i)Fortheyear1978thecontributionmentionedinArticle4,Paragraph2shallbethirtyUSDollarspermetricton
r.
(ii)ThefollowingtextisjoinedtotheAnnexoftheConvention

SUPPLEMENTARY FEEDING PROGRAM
ThirdperiodofConvention (1.1-30.6.1978 )
Wheatflour 2450metrictons
Milledrice 171metrictons
Whitesugar 102metrictons
Skimmedmilkpowder 700metrictons
2.Contributions_in_cash
3384600USDollars
3-Foodstuffs tobgpurchased intheiiCommunity
Cornedbeef approximately 350metrictons
Tomatopaste approximately 28metrictons.
Pendingtheconclusion ofanewConvention ,Community aidshallbe
suppliedtoUNRWAfortherestoftheyearaccording tothemodified
provisions oftheConvention concluded on20July1976.
TheCommunity wouldbeobligediftheAgencywouldindicate whether
itisinagreement withthisproposal.TfContributions ^!^kind
Wheatflour
Milledrice
Whitesugar
Skimmedmilkpowder

(b)ReplyfromUNRWAtoEEC
TheAgencyacknowledges receiptoftheCommunity'sletter *
dated andreadingasfollows:
<TextofEEClettertoUNRWA)
TheAgencyconfirmsitsagreementtotheabove.