ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (75)161
V ol.1975/0063

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COMMISSION OFTHE EUROPEAN COMMUNITIES
COM(74)161 final
Brussels ,17April 1975
RECOMMENDATION FOR ACOUNCIL DECISIONI
onthe conclusion ofanAgreement "between the
Malagasy Republic onthe supply offood aid inthe form ofcereals .
(submitted totheCouncil "bytheCommission )
COM(75 )161final

THECOUNCIL OPTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,
andinparticular Articles 113 »114and228thereof $
Having regard totheRecommendation from theCommission !
Whereas theEuropean 'Economic Community has -concluded thesecond Convention
releting tofood aid (l)
• ' »-
Whereas the Malagasy Republic hasrequested food aid ;
0
9
Whereas inview ofthecereal supply situation inthe Malagasy Republic
that country should beaccorded ,bywayofgift ,6.000 metric tons of
lontf ffrain husked rice under theCommunity Pood AidProgramme for1071/7?.
DECIDES s
Article 1
Onbehalf oftheEuropean Economic Community anAgreement ,thetext whereof
isannexed hereto ,shall beconcluded between theEuropean Economic Community
andthe Malagasy Republic forthesupplv ofIon/*<*rain husked rice
asfood aid .
Article 2
ThePresident oftheCouncil ishereby authorized todesignate those who
aretosign theAgreement andtoconfer onthem therequisite powers tobind
theCommunity .
«
Done atBrussels , FortheCouncil
The President
(1)O.J. L219of9.P.1974 P..36

âSBEBEiâï
BSTdSSJ TiM EmOFW ECWCHålC CSZmUZS !?
&somt UåiÆåm mswuQ dim supply
0?F0Q3 AE)m9BS FCM QFCE2SMS ,

THE COUGJCIL OFTHE El .OPEA3ST COMMUNITIES ,
onth«one hand ,
TEE CK)VERM»IE2JT OP THE MALAGASY REPUBLIC
onthe other hand ,
s
HATE E1CIDED toconclude this -Agreement and t~-this -end he.ve designated
astheir plenipotentiaries ?
Him COUNCIL OP THE EUROPEAN COMMUNITIES :
Tclx GOVSRffl'IBNT OPTHE MALAGASY REPUBLIC
mo HA VE AGREED AS FOLLOWS : ■ •
•••/•••

ARTICLE I
Asapart ofitsPood AidProgramme (Cereals )for 1971-/72,theEuropean '
Economic Community shall supply ,bywayoffcr.ft ,the Malagasy
Republic ,hereinafter referred toasth«"recipient country ",with
6000metric tons oflong grain husked rice .
ARTICLE II
Deliveries will bemademnew -jute sacks with anetcaoaoitv ofSO 1cp-each .
cob Ocvwiunitv ports .
ARTICLE IÏI
Theobligations andresponsibilities oftheEuropean Economic Community and
oftherecipient country relating todelivery andthetaking ofdelivery
aredefined inthe .Annex )which forms anintegral part ofthis Agreement .
ARTICLE Vf
Therecipient country undertakes tomake allnecessary arrangements forthe
transport andinsurance ofthe product from ports ofshipment toplaces of
destination .
Ituntertakes toexercise thegreatest possible care toensure that the
tendering arrangements forthetransport byseaarenotprejudicial tothe
free play offair competition .Anyproblems arising inthis connection shall
bethesubject ofconsultations under Article IXofthepresent Agreement .
ARTICLE V
Therecipient country undertakes tousetheproduct received asaidforpur­
poses ofconsumption andtoapply ,forthesale oftheproduct onitsmarket ,
theprices normally charged onthat market forproducts ofcomparable quality .

The proceeds from this sale ,less thecost ofseatransport ,insurance andthe
normal ooat ofBalling th«product ontherecipient country *amarket ,will
bepaid into aspecial account with the Malagasy Treasury andallocated tothe
financing ofone ormore development schemes which have already "been proposed by
the recipient country and approved bythe European Economic Community .
 
*
ARTICLE VI
The Contracting Parties undertake toimplement this Agreement insuch away as
toavoid any prejudice tothe normal structure ofdomestic production andinter­
national trade .Tothis endthey shall take any measures required toensure that
aidsupplies areinaddition to,and donotreplace ,business transactions which
might reasonably beexpected inthe absence ofsuch supplies .Inparticular ,
therecipient country undertakes toimport commercially from whatever source
between 1July 1974 and 30June 1975 aminimum quantity of 30000
metric tons ofcereals crits equivalent inflour .
ARTICLE VII
Therecipient country shall take any measures required toprevent !
(i) There-export oftheproduct received asaid andofproducts and
by-products resulting from such supplies ;
(ii)Theexport ,commercially orotherwise ,within sixmonths ofthelast
delivery ,either oftheflour ofsoft ."h«»at obtained locally r>f+*»e
same nature p.s»ordinary rice .
ARÏIOLK VIII
Therecipient country undertfJctfE toinform theEuropean Economic Community how
this Agreement isbeing implemented .Tothis enditshall provide the Commission
ofthe European Communities with the following information :

(i) Hotlater than thirty days after theunloading ofeach cargo :
ports ariddates ofarrival ofthevessel $nature ,quantity and
quality ofthe products unloaded ;date onwhich unloading was
completed !
r
(ii) Every three' months until thequantities received asaidhave been
fully used ?quantities sold ,howthey have been sold ,selling prices ;
normal selling costs ontherecipient country 'smarket ;
(iii) On15January every year until thespecial account hasbeen fully
usedS '
»
(a)State ofthis account (incomings andoutgoings )on31December
ofthe preceding year ;
(b)Progress achieved intheproject orprojects ,with anindication
ofthetotal amount offinancing undertaken atthat stage .
ARTICLE IX
Attherequest ofeither ofthem ,the Contracting Parties shall consult each .
other or1a.iy questions concerning the implementation ofthis Agreement .
.ARTICLE X
This Agreement isdrawn upinduplioate inthe Danish ,Dutch ,English ,French ,
German andItalian languages ,each ofthese texts being equally authentic .
$

-1-
ANNEX TOARTICLE III OF THE AGREEMENT
Article 1
Delivery shall beeffected andrisks shall pass from the European Economic
Community totherecipient country at-the moment at -which the goods have
been placed inthe ship'shold atthe port ofshipment .
Therecipient country shall "bear allcosts subsequent todelivery ofthe goods
including costs ofstowage and,where appropriate ,oftrimming andbagging .
Any demurrage costs ordispatch atthe port ofshipment shall beacharge on
orforthebenefit ofthe European Economic Community andshall bedetermined
before thevessel sails .Therates anddetailed arrangements relating thereto
9
laid down inthecontract 'between therecipient country andthecarrier must
have been agreed upon inadvance bytherecipient country andtheauthorised
agent ofthe European Economic Community referred toinArticle 9«
Article 2
The European Economic Community shall notify therecipient country ingood
time ofthe port orports ofshipment ,thequantities tobedelivered ateach
port ,the period within which loading must begin ,andthedaily loading rate .
Article 3■■MWMMMM A
The .European Economic Community must beprepared toload the goods onthedata
resulting from theinstructions inArticle 8,whereon thevessel should be
ready for loading .
Article 4
«
Ondelivery ofthe goods ,aloterance of5%less than thequantity tobe
supplied inaccordance with Article 1ofthe Agreement ispermitted .
•••/••t

Cnce the goods are on "board thevessel ,the European Eoononic Community shall
notify therecipient country of .thedate ofloading ,andthequantity and
quality ofthe goods asrecorded on-loading .
i.r-r:r -e 6
Therecipient country shall supply the European Economic Community ,within the
period referred toinArticle 2,with avessel ofdimensions corresponding to
the normal loading potential ofthe port ofshipment .
Should itprove impossible forthevessel tobegin loading within the period
referred toinArticle 2and should therecipient country not have notified
»
the European Economic Community ofthis fact inwriting atthelatest "bythe
date onwhich thevessel should beready forloading inaccordance with Article
the goods shall beatthedisposal ofthe European Economib Community .
Whatever thecircumstances ,*the »goods shall beheld atthe expense ,risk and
peril oftherecipient country .
Article 7
Should therecipient country fail toprovide avessel ofsuitable tonnage or
ifthequantity made available forloading onavessel ofsuitable tonnage
cannot beputonboard initsentirety beoause ofcircumstances beyond the
control oftheEuropean Economic Community ,thebalanoe shall beloaded onto
the next vessel under the conditions laid down inthis annex .
Inthis event ,until thedate ofloading ofthis balance oruntil therecipient
country gives notice inwriting thatitgives upthis balance ,thegoods shall
behold atthe expense ,risk andperil oftherecipient country .
t
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 isdvietobegin orofitsrenunciation ofthis balance .

-3-
Ifthis obligation iinotrespected ,the European Bsonocic Comsronixy may
consider thatithasdischarged itscommitment totherecipient country under
Article 1ofthe Agreement .
Article 8
Therecipient country shall name fortheEuropean Economic Community the
vessel that istoship thegoods atleast 10clear days prior totheestimated
date ofarrival ofthevessel inpart or,where possible ,20clear days prior
tothis date ,andshall atthe same time indicate howsoon after that date
thevessel will heready for loading .
Thersoipient country' shall -insert inthecharter party aclause requiring
«
thecaptain toinform the European Economic Community atleast 12hours in
advance ofthevessel 'sestimated date ofarrival inporti
Article 9
Toimplement theprovisions ofthis Annex ,theEuropean Economic Community
shall appoint anauthorized agent ,whose name andaddress shall "bemade known
ingood time totherecipient country .
t
4
Therecipient country shall nominate areceiving agent ineach port ofship­
ment ,whose naxce andaddress shall' "bemade known tothe European Economic
Community before the Agreement isimplemented *