ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(73)1006
Vol.1973/0185

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(73)1006 final
Brussels.20June1973
RECOMMENDATION FORACOUNCILDECISION
ontheconclusionofanagreementbetweentheEuropean
EconomicCommunityandtheRepublicofChileforthe
supplyofcommonwheatasfoodaid
(submittedtotheCouncilbytheCommission)
COM(73)1006final

THECOUNCIL OPTHEEUROPEAN "COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,
andinparticular Articles 113 ,114and228thereof ;
Having regard totheRecommendation from theCommissions
Whereas theEuropean Economic Community hasdeposited aDeclaration forpro­
visional application ofthe1971 Food AidConvention jwhereas that Convention
has "been applicable since 1July 1971 J
Whereas theRepublic ofChile ,byitsletter of10November 1972 ,hasrequested
food aid j
Whereas inview ofthecereal supply situation intheRepublic ofChile that
country should beaccorded ,bywayofgift ,20000metric tons ofcommon wheat
under theCommunity Pood AidProgramme for1972/73?
DECIDIS :
Article ,1
Onbehalf oftheEuropean Economic Community anagreement ,thetext whereof
isannexed hereto ,shall beconcluded between theEuropean Economic Community
andtheRepublic ofChile forthesupply ofcommon wheat asfood aid .
Article 2
ThePresident oftheCouncil ishereby authorised todesignate those who are
tosign theagreement andtoconfer onthem therequisite powers tobind the
Community .
Done atBrussels , 19•••• For the Council
The President

AGREMENT
BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AMD
THE REPUBLIC OPCHILE
ONTHE SUPPLY OPPOOD AID
IHTHEFORM OPCOMMON WHEAT

THECOUNCIL OPTHEEUROPEAN COMMUNITIES ,
ontheonepart ,
THEGOVERNMENT OPTHEREPUBLIC OPCHILE ,
ontheother part ,
HAVE DECIDED toconclude this Agreement andtothis endhave designated
astheir plenipotentiaries :
THE COUNCIL OPTHE EUROPEAN COMMUNITIES s • .
THE GOVERNMENT OPTHE REPUBLIC OPCHILE :
WHO HAVE AGREED ASFOLLOWS :

-2-
ARTICLEI
AsapartofitsPoodAidProgramme(Cereals)for1972/73,theEuropeanEconomic
CommunityshallsupplytheRepublicofChile,hereinafterreferredtoasthe
"recipientcountry",with20000metrictonsofcommonwheat.
ARTICLEII
Deliverieswillbemadeinbulk,fobtoCommunityports.
ARTICLEIII
Theobligations andresponsibilities oftheEuropeanEconomicCommunityand
oftherecipientcountryrelatingtodeliveryandthetakingofdeliveryare
definedintheAnnex,whichformsanintegralpartofthisAgreement.
' ι
ARTICLEIV
Therecipientcountryundertakestomakeallnecessaryarrangements forthe
transportandinsuranceoftheproductfromportsofshipmenttoplacesof
destination .
ItundertakestoexercisethegreatestpossibleGaretoensurethatthe
tenderingarrangements forthetransportbyseaarenotprejudicialtothe
freeplayoffaircompetition.Anyproblemsarisinginthisconnectionshall
bethesubjectofconsultations underArticleIXofthepresentAgreement.
ARTICLEV
Therecipientcountryundertakestousetheproductreceivedasaidforpur­
posesofconsumption andtoapply,forthesaleoftheproductonitsmarket,
thepricesnormallychargedonthatmarketforproductsofcomparablequality.
•««/•••

-3-
Theproceeds from this sale ,less thecost ofseatransport ,insurance and
thenormal cost ofselling theproduot ontherecipient country 'smarket ,will
bepaid into aspecial account andallocated tothefinancing ofoneormore
developement schemes which have already "been proposed "bytherecipient country
andapproved bytheEuropean Economic Community ,
ARTICLE VI
TheContracting Parties undertake toimplement this Agreement insuch away asto
avoid anyprejudice tothenormal structure ofdomestic production andinterna –^
tional trade .Tothis endthey shs.ll take anymeasured required toensure that
aidsupplies areinaddition to,anddonotreplace ,business transactions which
might reasonably beexpected intheabsence ofsuch supplies .Inparticular ,the
recipient country undertakes toimport commercially from whatever source between
1July 1973 and30june 1974 aminimum quantity of metric tons ofcommon .
wheat oritsequivalent inflour ofcommon wheat .
ARTICLE VII
Therecipient country shall take anymeasures required toprevents
(i),There-export oftheproduct received asaidandofproducts andby-products
resulting from such supplies j
(ii)Theexport ,commercially orotherwise ,within sixmonths ofthelast delivery ,
either oftheproduct obtained locally andofthesame nature astheproduct "
received asaidorofanyproducts orby-products resulting from it.
-ARTICLE VIII
Therecipient country undertakes toinform theEuropean Economic Community how
this Agreement isbeing implemented .Tothis enditshall provide theCommission
totheEuropean Communities with thefollowing information :
••t/l••

-4-
Notlaterthanthirtydaysaftertheunloadingofeachcargo*ports
anddatesofarrivalofthevessel;nature,quantityandqualityof
theproductsunloaded ?dateonwhichunloadingwascompleted:
r . '
(ii)Everythreemonthsuntilthequantitiesreceivedasaidhave"been
fullyused:quantitiessold,howtheyhaveteensold,sellingpricesj
normalsellingcostsontherecipientcountry'smarketj
(iii),On15Januaryeveryyearuntilthespecialaccounthasteenfully
used:
(a)Stateofthisaccount(incomingsandoutgoings)on31December
oftheprocedingyearj
(b)Progressachievedintheprojectorprojects,withanindication
ofthetotalamountoffinancingundertakenatthatstage.
ARTICLEIX
t- *•
Attherequestofeitherofthem,theContractingPartiesshallconsulteach
otheronanyquestionsconcerningtheimplementation ofthisAgreement.
ARTICLEX
ThisAgreementisdrawnupinduplicateintheDanish,Dutch,English,French,
German,ItalianandSpanishlanguages,eachofthesetextsbeingequally
authentic.(i
(ii)

ANNEXTOARTICLEIIIOPTHEAGREEMENT
Article1
DeliveryshallbeeffectedandrisksshallpassfromtheEuropeanEconomic
<
Communitytotherecipientcountryatthemomentatwhichthegoodshave
beenplacedintheship*sholdattheportofshipment.
Therecipientcountryshallbearallcostssubsequenttodeliveryofthegoods,
includingcostsofstowageand,whereappropriate ,oftrimmingandbagging.
Anydemurragecostsordispatchattheportofshipmentshallbeachargeon
orforthebenefitoftheEuropeanEconoraioCommunityandshallbedetermined
beforethevesselsails.Theratesanddetailedarrengemerltsrelatingthereto
laiddownintheoontractbetweentherecipientcountryandthecarriermust
havebeenagreeduponinadvancebytherecipientcountryandtheauthorised
agentoftheEuropeanEconomicCommunityreferredtoinArticle9*
Article2
TheEuropeanEconomicCommunityshallnotifytherecipientcountryingood
tineoftheportorportsofshipment,thequantitiestobedeliveredateach
port,theperiodwithinwhichloadingmustbegin,andthedailyloadingrate.
Article3
TheEuropeanEconomicCommunitymustbepreparedtoloadthegoodsinthedate
resultingfromtheinstructionsinArticle8,whereonthevesselshouldbeready
forloading.
Article4
Ondeliveryofthegoods,aloteranceof5%lessthanthequantitytobesupplied
inaccordancewithArticle1oftheAgreementispermitted.

Article5
Oncethegoodsareonboardthevessel,theEuropeanEconomicCommunityshall
notifytherecipientcountryofthedateofloading,andthequantityand
qualityofthegoodsasrecordedonloading.
Article6
TherecipientcountryshallsupplytheEuropeanEconomicCommunity,withinthe
periodreferredtoinArticle2,withavesselofdimensionscorresponding to
thenormalloadingpotentialoftheportofshipment.
Shoulditproveimpossibleforthevesseltobeginloadingwithintheperiod
referredtoinArticle2andshouldtherecipientcountrynothavenotified
theEuropeanEconomicCommunityofthisfactinwritingatthelatestbythe
dateonwhichthevesselshouldbereadyforloadinginaccordancewithArticle8,
thegoodsshallbeatthedisposaloftheEuropeanEconomicComnmnity.
Whateverthecircumstances ,thegoodsshallbeheldattheexpense,riskand
periloftherecipientcountry.
Article7
Shouldtherecipientcountryfailtoprovideavesselofsuitabletonnageor
ifthequantitymadeavailableforloadingonavesselofsuitabletonnage
cannotbeputboardinitsentiretybecauseofcircumstances beyondthe
controloftheEuropeanEconomicCommunity,thebalanceshallbeloadedonto
thenextvesselundertheconditionslaiddowninthisannex.
Inthisevent,untilthedateofloadingofthisbalanceoruntiltherecipient
countrygivesnoticeinwritingthatitgivesupthisbalance,thegoodsshallbe
heldattheexpense,riskandperiloftherecipientcountry.
TherecipientcountrymustnotifytheEuropeanEconomicCommunitywithinaperiod
ofamaximumof30daysfromthebeginningofloadingoftheshipmenttowhich
thesegoodsshouldhavebelonged,ofthedateonwhichloadingofthisbalance
isduetobeginorofitsrenunciation ofthisbalance.

-3-
Ifthisobligationisnotrespected,theEuropeanEconomicCommunitymayconsider
thatithasdischargeditscommitmenttotherecipientcountryunderArticle1
oftheAgreement,
Article8
TherecipientcountryshallnamefortheEuropeanEconomioCommunitythevessel
thatistoshipthegoodsatleast10cleardayspriortotheestimateddate
ofarrivalofthevesselinportor,wherepossible,20cleardayspriorto
thisdate,andshallatthesametimeindicatehowsoonafterthatdatethe
vesselwillbereadyforloading.
Therecipientcountryshallinsertinthecharterpartyaclauserequiring
thecaptaintoinformtheEuropeanEconomicCommunityatleast72hoursin
advanceofthevessel'sestimateddateofarrivalinport.
Article9
Toimplementtheprovisionsofthisannex,theEuropeanEconomicCommunity
shallappointanauthorisedagent,whosenameandaddressshallbemadeknown
ingoodtimetotherecipientcountry.
Therecipientcountryshallnominateareceivingagentineachport
whosenameandaddressshallbemadeknowntotheEuropeanEconomic
beforetheAgreementisimplemented.ofshipment,
Community