ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(71)1122
Vol.1971/0185

Disclaimer
Conformément aurèglement(CEE,Euratom)n°354/83duConseildu1erfévrier1983
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.COMMISSI®(FTHEEUROPEANCra-5MuwITlES
COM(7l)1122final
Bruselles,8october1971
AGREEMENT
BETWEEN "THEEUROPEAN ECONOMIC COMMUNITY
ANDTHEREPUBLIC OFINDONESIA
ONTHESUPPLYOFWHEATOTHERTHANDURUM
ASFOOFAID
COM(7l)1122final

THECOUNCILOPTHEEUROPEAWCOMMUNITIES ,
ontheonehand,and
THEGOVERNMENT OPTHEHEFUELICOPINDONESIA,
ontheotherhand,
HAVEDECIDEDtoconcludethepresentAgreementandhave,
forthispurpose,appointedastheirplenipotentiaries :
THECOUNCILOPTHEEUROPEAN COMMUNITIES :
THEGOVERNMENT OPTHEREPUBLIC OPINDONESIA :
WHOHAVEAGREEDuponthefollowingprovisions

ARTICLEI
Underitsfoodaidprogrammeforcerealsfortheyear1970/1971,
theEuropeanEconomicCommunityshall,inaccordancewiththedecision ,
takenbytheCouncilon6April1971>maketheRepublicofIndonesiaa
giftof 26,800tonsofwheatotherthandurum(herein­
afterreferredtoas"wheat").
Deliveriesshall "bemadein.bulkf.o.b.Comnunityporto*
TheCommissionoftheEuropeanCommunitiesshallinformthe.
RepublicofIndonesiaingoodtime,byletter,telexortelegram,ofthe
portsofshipment,thequantities,thedatesofavailability atthesaid
ports,andthedailyloadingrate.
Theresponsibilities oftheEuropeanEconomicCommunityandthe
RepublicofIndonesiawithregardtoshipmentandtotakingdelivery
f.o.b.respectively aresetoutintheAnnex,whichformsanintegral
partofthepresentAgreement.

ARTICLEII
TheRepublicofIndonesiaundertakestomakeallnecessary -
arrangements fortransporting thewheatfromtheportsofshipment
toitsdestination .
Itundertakestoexercisethegreatestpossiblecaretoensure
thatthetenderingarrangements forthetransportbyseaarenotpre­
judicialtothefreeplayoffaircompetition .Anyproblemsarisingin
thisconnectionshallbethesubjectofconsultations underArticleVIII
ofthepresentAgreement.
ARTICLEIII
TheRepublicofIndonesiaundertakestouseforfoodpurposes
thewheatthatissuppliedasaidandtoapplytosalesofthiswheaton
itsmarketthepricesnormallyrulingonthismarketforproductsof
comparablequality.
Theproceedsofthesesales,lessseafreightchargesandnormal
marketingcostsontheIndonesianmarket,shallbepaidintoaspecial
accountintendedtocoverexpenditureincurredbytheRepublicof
Indonesiainconnectionwiththefinancingofdevelopmentprojects.

ARTICLE IV
TheContracting Parties undertake toimplement thepresent Agreement
insuch awayastoavoid prejudicing thenormal structure ofnational pro­
duction andinternational trade .Tothis end fthey shall take thenecessary
steps toensure that supplies made available asaid shall beadditional to,
andnot inlieu of,thecommercial operations which could reasonably have
been expected intheabsence ofsuch supplies . ... ■1 .. "
♦"■Ull v •
ARTICLE V
TheRepublic ofIndonesia shall take allnecessary steps toprevent
there-exportation both ofthewheat received asaid ,ofproducts ofthe
first processing stage andofby-products obtained therefrom aswell as
theexportation ,commercial orotherwise ,within aperiod ofsixmonths
from thedate ofthelast delivery ,oflocally grown wheat ofthesame
type asthat received asaidofproducts ofthefirst processing stage
andby-products obtained therefrom .

ARTICLEVI
TheRepublicofIndonesiaundertakestokeeptheEuropeanEconomic
Communityinformedontheconditionsofimplementation ofthepresent
Agreement.Tothisend,itshallcommunicatethefollowinginformation
totheCommissionoftheEuropean Communities:
1.Transport sportsanddatesofarrivalofvessels|nature,quantity
andqualityoftheproduceunloaded\dateonwhichUnloadingis
completed !
2.Marketing squantitiessoldfmethodofmarketingssellingpricee;
3-- ■'■'"••• •" ' ?-•••*■
orme. ••"^urc- .'Ie
Situationwithregardtothespecialaccountsetupwiththeproceeds
ofthesale,inlocalcurrencyofthewheatsuppliedasaid;
4.Projectsfinancedfromthespecialaccountjrelativeimportanceof
thesefundsintheoverallfinancingofprojects.

ARTICLEVII
Theinformation referredtoinArticleVIshallbecommunicated .
withinthefollowingtime-limits :
-Withregardtotransport:nomorethan30daysaftertheunloading
ofeachcargo;
-Withregardtootherinformation tareportonthesituationat
31Decembereachyearshallbecommunicated before15Januaryot
thefollowingyear,untilsuchtimeasthespecialaccounthasbeen
completelyliquidated .
ARTICLEVIII
Attherequestofanyoneamongstthem,theContractingParties
shallconsultonallmattersconcerningtheapplication ofthepresent
Agreement.
ARTICLEIX
ThepresentAgreementisdrawnupinduplicateintheGerman,
French,Italian,DutchandEnglishlanguages,eachofthetextsbeing
equallyauthentic.

ANNEX
CONDITIONS APPLICABLE TOTHEHANDINGOVER
OFTHEWHEATATTHEPORTSOFSHIPMENT
ToensurethesmoothoperationoftheAgreementandxnpartxcular
ofArticleIthereof,theContractingPartieshaveagreedasfollowss
ARTICLEI
ExceptasotherwiseprovidedinArticle3,sixthparagraph,delivery -
willhedeemedtohavebeeneffectedoncethegoodshave-...effect
tivelypassedtheship'srailattheportofshipmentfallcostsofstowage
andsecuringshall "be"borne"bytheRepublicofIndonesia.
ARTICLE2
iiocceptasotherwiseprovidedinArticle3,sixthparagraph,risks
shallpassfrcxntheEuropeanEconomicCommunitytotheRepublicof
Indonesiaatthemomentatwhichthegoodshaveeffectivelypassedthe
ship'srailattheportofshipment.
t

ARTICLE3
TheRepublicofIndonesiashallprocureandnotifytotheEuropean
EconomicCommunity,ingoodtime,thevesselswhicharetoshipthe
goods,sothattheloadingdatesindicatedinaccordancewithArticleI
oftheAgreement may"berespected.
VesselsmustbedesignatedbytheRepublicofIndonesiaatleast
7cleardayspriortotheestimateddateofarrivalinport.The
RepublicofIndonesiashallberesponsibleforanyconsequences arising
eitherfromfailuretodesignate/-vesselorfromdelayindoingso.
TheRepublicofIndonesiashallinsertineachcharter-party aclause
requiringthecaptaintoinformtheEuropeanEconomicCommunityatleast
72hoursinadvanceofthevessel'sestimateddateofarrivalinport.
ThegoodsshallbeheldatthedisposaloftheRepublicofIndonesia
intheportindicatedfromthedateonwhichtheshipisdeclaredreadyfo:
loading.IntheeventoftheEuropeanEconomicCommunitynotplacingthe
goodsatthedisposalofthevesselingoodtime,anyconsequences resultin
therefrominparticulardemurrageand/ordeadfreight,shallbeat
ontheEuropeanEconomicCommunity.

Shouldtherebeadelayinthearrivalofavesseldesignated by
theRepublicofIndonesiaattheportofshipment,orshoulditprove
impossibleforittoload,andshouldthisdelaypreventloadingwithin
thetime-limitsindicatedinaccordancewithArticleIoftheAgreement,
thegoodsshallbeheldattheexpense,riskandperiloftheRepublic
ofIndonesia.
ShouldtheRepublicofIndonesiafailtoprovideavesselofsuitable
tonnagewithinthetime-limitindicatedinaccordancewithArticleIof
theAgreement,itshallberegardedasbeingindefaultunlessitnotifies
theEuropeanEconomicCommunitybytelegram,notlaterthanthelastday
oftheperiodfixedfordelivery,thatitisseekinganextensionofthis
period.Wheresuchextensionissought,theEuropeanEconomicCommunity
shallholdthegoodsonbehalfoftheRepublicofIndonesia,expensesresul­
tingfromthisbeingbornebythelatter. '
TheRepublicofIndonesiashallberesponsibleforanyconsequences
resultingfromthefactthatthedimensionsofavessel "suppliedbyit
donotcorrespondtotheloadingcapacityoftheportofshipment*

ARTICLE4
Thetoleranceonshipmentofthequantitiesnotifiedinaccordance
withArticleIoftheAgreementshall"be5althoughthetotalquantity
of26.800tonsshallinnocasehe.exceeded.
If,however,thequantitymadeavailableforloadingonagiven
vesselcannot "beputonboardinitsentiretybecauseofcircomstances
beyondthecontroloftheEuropeanEconomicCommunity,thebalancewhich
couldnotbeputonboardwithinthespecifiedtime-limitsshallbe
storedattheexpenseoftheRepublicofIndonesiaandshippedonthe
nextvessel. .
IftheRepublicofIndonesiainformstheEuropeanEconomicCommunity
withinaperiodof15cleardaysthatitisnot-takingdeliveryofthis
balance,thehandlingandstoringexpensesincurredshallbeborneby
theRepublioofIndonesiauntilsuchtimeasitgivesnoticethatit
givesupthisbalance.
Inthisevent,theEuropeanEconomicCommunitymayconsiderthat
ithasdischargeditscommitmentstotheRepublicofIndonesia.

ARTICLE5
Oncethegoodsareon"boardavessel,theEuropean .Economic
CommunityshallnotifytheRepublicofIndonesiawithoutdelayofthe
dateofloading,thequantityandqualityloaded,notedonloading
andmentionedinthevessel'shilloflading.
ARTICLE6
Allexpensesincurredsubsequentto
thesehaveeffectively passedtheship's
theRepublicofIndonesia.
ARTICLE7
TheContractingPartiesreservetherighttonominateoneormore
agentstoexecutetheAgreement.
Todealwithanyeventualities ,theRepublicofIndonesiashall
nominatearepresentative ineachportofshipment.deliveryofthegoodsonce
rail,shallbeborneby