ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(73)262
Vol.1973/0040

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COMMISSION OFTHEEUROPEANCOMMUNITIES <U
COM(73)262 final
Brussels .16february 1973
RECOMMENDATION FOR A
COUNCIL DECISION "
ontheconclusion ofanagreement "between theEuropean
Economic Community and .theRepublic ofSriLanka forthe
supply offlour ofcommon wheat asfood aid .
(submitted ,totheCouncil try:theCommission )
COM(73 )262final

AGREEMENT
BETWEENTHEEUROPEAN ECCNOMIC COMMUNITY ANDTHEREPUBLICOFSRILANKA
CONCERNING TUBSUPPLYASFOODAID
OPFLOUROFVilESAT

/
THECOUNCIL OFTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,
andinparticular Articles 113 ,114and228thereof j
Having regard totheRecommendation from theCommission j
Whereas theEuropean Economic Community hasdeposited aDeclaration for
provisional application ofthe1971 Food AidConvention jwhereas that
Convention hasbeen applicable since 1July 1971 J
Whereas theRepublic ofSriLanka ,byitsletter of6October 1971 »has
requested food aid }
Whereas inview ofthecereal supply situation intheRepublic ofSriLanka
thatcountry should beaccorded ,bywayofgift,^5*^®9 metric tons ofcommon
wheat intheform of7285 netric tons offlour ofcommon wheat under the
Community Pood AidProgramme for1971/72}
DECIDES i
Article 1
Onbehalf oftheEuropean Economic Community anagreement ,thetext whereof
isannexed hereto ,shall beconcluded between theEuropean Economic Community
andtheRepublic ofSriLanka forthesupply offlour ofcommon wheat as
food aid .
Article 2
ThePresident oftheCouncil ishereby authorised todesignate those who are
tosign theagreement andtoconfer onthem therequisite powers tobind the
Community .
Done atBrussels , 19 • For theCouncil
The President

THE COUNCIL OPTHE EUROPEAN COMMUNITIES .
of "bheonepart .
THEGOVERNMENT OPTHEREPUBLIC OPSRILANKA ,
oftheother part ,
HAVE DECIDED toconclude this Agreement andtothis endhave
designated astheir plenipotentiaries :
THE COUNCIL OPTHE EUROPEAN COMMUNITIES :
THE GOVERNMENT OPTHE REPUBLIC OPSRI LANKA :
WHO HAVE AGREED ASFOLLOWS i

ARTICLE I
l
Asapart ofitsFood AidProgramme (Cereals )for1971/72,
theEuropean Economic Community shall supply theRepublic ofSri
Lanka ,hereinafter referred tqasthe "recipient country ",with
11.000 metric tons ofcommon wheat intheform of7*285 metric tons
offlour ofcommon wheat .
ARTICLE II
Deliveries will bemade fobtoCommunity ports incotton
sacks ofanetweight of22.680 Kgeach (150lbs).
"•• ./„ ARTICLE III ,
Theobligations andresponsibilities oftheEuropean
Economic Community andoftherecipient country relating todelivery
andthetaking ofdelivery aredefined intheAnnex ,which forms an
integral part ofthis Agreement . ^ '"
ARTICLE IV
Therecipient country undertakes tomake allnecessary i
arrangements forthetransport andinsurance oftheproduct from
ports ofshipment toplaces ofdestination .
Itundertakes toexercise thegreatest possible care to
ensure that thetendering arrangements forthetransport bysea
arenotprejudicial tothefree play offair competition .Any
problems arising inthis connection shall bethesubject of
consultations under Article IXofthepresent Agreement .
ARTICLE V
Therecipient country undertakes tousetheproduct received
asaidforpurposes ofconsumption andtoapply ,forthesale of
theproduct onitsmarket ,theprices normally charged onthat
market forproducts ofcomparable quality . " '-

-4-
Theproceeds from this sale ,less thecost ofseatransport ,
insurance andthenormal cost ofselling theproduct onthe
recipient country 'smarket ,will bepaid into aspecial account and
allocated tothefinancing ofoneormore development schemes which
have already been proposed bytherecipient country andapproved
bytheEuropean Economic Community ,
ARTICLE VI
TheContracting Parties undertake toimplement this iigreement
insuch awayastoavoid anyprejudice tothenormal structure of
domestic production andinternational trade .Tothis endthey shall
take anymeasures required toensure that aidsupplies are in
addition to,anddonotreplace ,business transactions which might
reasonably beexpected intheabsence ofsuch supplies .Inparti­
cular ,therecipient country undertakes toimport commercially
from whatever source between 1July 1972 and 30June 1973 aminimum
quantity of50*000 metric tons of wheat oritsequivalent in
flour ofwheat .
ARTICLE VII
Therecipient country shall take anymeasures required to
prevent :
(l)There–export oftheproduct received asaidandofproducts
andby-products resulting from such supplies ;
(ii)Theexport ,commercially orotherwise ,within sixmonths ofthe
last delivery ,either oftheproduct obtained locally andof
thesame nature astheproduct received asaidorofanyproducts
orby-products resulting from it.
ARTICLE VIII
Therecipient country undertakes toinform theEuropean
Economic Community howthis Agreement isbeing implemented .Tothis
enditshall provide theCommission oftheEuropean Communities with
thefollowing information :

-5-
Notlater than thirty days after theunloading ofeach cargo :
ports anddates ofarrival ofthevessel ;nature ,quantity
andquality oftheproducts unloaded ;date onwhich unloading
wascompleted ;
Every three months until thequantities received asaidhave
been fully used squantities sold ,howthey have been sold ,
selling prices ;normal selling costs ontherecipient country 's
market ;
On15January every year until thespecial account hasbeen
fully used 2
(a)State ofthis account (incomings andoutgoings )on
31December ofthe preceding year ;
(b)Progress achieved intheproject orprojects ,with an
indication ofthetotal amount offinancing undertaken
atthat stage .
ARTICLE IX
Attherequest ofeither ofthem ,theContracting Parties
shall consult each other onanyquestions concerning theimplemen­
tation ofthis Agreement .
ARTICLE X
This Agreement isdrawn upinduplicate intheBanish ,Dutch ,English ,
French ,German andItalian languages ,each ofthese texts being
equally authentio .(ii
(iii)

ANNEX TOARTICLE III OPTHE AGREEMENT
Article 1
Delivery shall beeffected endrisks shall pass from theEuropean Economic
Community totherecipient country atthemoment atwhich thegoods have
been placed intheship 'shold attheport ofshipment .
Therecipient country shall bear allcosts subsequent todelivery ofthe
goods ,including costs ofstowage and ,where appropriate ,oftrimming and
bagging . , .
Anydemurrage costs ordispatch attheport ofshipment shall beacharge
onorfor thebenefit oftheEuropean Economic Community andshall bedetermined
before thevessel sails .Therates anddetailed arrangements relating thereto
laid down inthecontract between therecipient country andthecarrier must
have been agreed upon inadvance bytherecipient country andtheauthorised
agent oftheEuropean Economic Community referred toinArticle 9«
Article 2
TheEuropean Economic Community shall notify therecipient country ingood
time oftheport orports ofshipment ,the'quantities tobedelivered at
each port ,theperiod within which loading must begin ,and thedaily loading
rate . i ■
Article 3
TheEuropean Economic .Community must beprepared toload thegoods onthe
date resulting from theinstructions inArticle 8,whereon thevessel should
beready forloading .
Article 4
- .ι
Ondelivery ofthegoods ,aloterance of5bless than thequantity tobe
supplied inaccordance with Article 1oftheAgreement ispermitted .

Article 5
Once thegoods areon .board thevessel ,theEuropean Economic Community
shall notify therecipient country ofthedate ofloading ,andthequantity
andquality ofthegoods asrecorded onloading .
Article 6
Therecipient country shall supply theEuropean Economic Community ,within
theperiod referred toinArticle 2,with avessel ofdimensions correspond­
ingtothenormal loading potential oftheport ofshipment .
Should itprove impossible forthevessel tobegin loading Within theperiod
referred toinArticle 2andshould therecipient country nothave notified
theEuropean Economic Community ofthis fact inwriting atthelatest bythe
date onwhich thevessel should beready forloading inaccordance ,with Article 8
Article 8,thegoods shall beatthedisposal oftheEuropean Economic Community .
Whatever thecircumstances ,thegoods shall beheld attheespense ,risk and
peril oftherecipient country .
Article 7
Should therecipient country fail toprovide avessel ofsuitable tonnage or
ifthequantity made available forloading onavessel ofsuitable tonnage
cannot beput onboard initsentirety because ofcircumstances beyond the
control oftheEuropean Economic Community ,thebalance shall beloaded onto
the next vessel under the conditions laid down inthis annex .
Inthis ,event ,until thedate ofloading ofthis balance oruntil the
recipient country gives notice inwriting that itgives upthis balance ,
thegoods shall beheld attheexpense ,risk andperil oftherecipient
country .
Therecipient country must notify theEuropean Economic Community within a
period ofamaximum of30days from thebeginning ofloading oftheshipment
towhich these goods should have belonged ,ofthedate onwhich loading of
this balance isduetobegin orofitsrenunciation ofthis balance .

Ifthis obligation isnotrespected ,theEuropean Economic Community may
consider that ithasdischarged itscommitment totherecipient country
under Article 1oftheAgreement .
Article 8
Therecipient country shall name for theEuropean Economic Community the
vessel that istoship thegoods atleast 10clear days prior totheestimated
date ofarrival ofthevessel inport or,where possible ,20clear days prior
tothis date ,andshall atthesame time indicate howsoon after that date
thevessel will beready forloading .
Therecipient country shall insert inthecharter party aclause requiring
thecaptain toinform theEuropean Economic Community atleast 72hours in ,
advance ofthevessel 'sestimated date ofarrival innport .
Article 9
Toimplement theprovisions ofthis annex ,theEuropean Economic Community
shall appoint anauthorised agent ,whose name andaddress shall bemade known
ingood time totherecipient country .
Therecipient country shall nominate areceiving agent ineach port ofshipment ,
whose name andaddress shall bemade known totheEuropean Economic Community
before theAgreement isimplemented .