ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(73)264
Vol.1973/0040

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COMMISSION OFTHEEUROPEANCOMMUNITIES
COM(73)264final
Brussels.16february1973
RECOMMENDATTON FORACOUNCILDECISION
concludinganAgreement "betweentheEuropeanEconomicCommunity
andtheRepublicofPeruonthesupplyofcommonwheat
asfoodaid
(submittedtotheCouncilbytheCommission)
COM(73)264final

-2- ■-ν ■
THE COUNCIL OPTHE EUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic
Community ,andinparticular Articles 113 »11^and228thereof ;
Having regard totheRecommendation from theCommission ;
Whereas theEuropean Economic Community hasdeposited adeclaration
ofprovisional application ofthe1971 Food AidConvention ;whereas
this Convention hasbeen inforce since 1July 1971 >
Whereas theRepublic ofPeru hasapplied for food aidbyletter
dated 9March 1972 ;
Whereas ,±xview ofthesupply situation forcereals intheRepublic of
Peru ,13300metric tons ofcommon wheat should bemade available ,
bywayofgift ,tothat country under theCommunity 'sfood aid
programme for1971/72;
DECIDES :
Article 1
AnAgreement isconcluded ,onbehalf of
i
between theEuropean Economic Community
thesupply ofcommon wheat asfood aid .
annexed tothis Decision .
Article 2
ThePresident oftheCouncil isauthorized toappoint delegates tosign
theAgreement and toconfer onthem therequisite full powers onbehalf
oftheCommunity .
Done atBrussels , 19–.theEuropean Economic Community ^
and theRepublio ofPeru for
The text oftheAgreement is
For the Council
The President

-3-
AGREEMENT
BETWEENTHEEUROPEAN ECONOMIC COMMUNITY
ANDTHEREPUBLIC OFPERU
ONTHESUPPLYOFCOMMONWHEAT
ASFOODAID

-+-
THECOUNCILOFTHEEUROPEAN COMMUNITIES
oftheonepart
THEGOVERNMENT OFTHEREPUBLIC OFPERU
oftheotherpart
HAVEdecidedtoconcludethisAgreementandhavedesignatedtothis
endastheirplenipotentiaries :
THECOUNCILOFTHEEUROPEAN COMMUNITIES :
THEGOVERNMENT OFTHEREPUBLIC OFPERU:
WHOHAVEAGREEDASFOLLOWS:

..r.v,..s -ArticleI
•i «I■ A.
Aspartofi,ts1971/72cereal.foodaidprogramme,theEuropean
EconomicCommunityshall,by-.wayofgift,supplytotheRepublicof
Peru,hereinaftercalledtherecipientcountry",13500metrictons
ofcommonwheat.
ArticleII'
Thewheatshallbedeliveredin-bulkfobCommunityports.
'■. ArticleIII
Theobligations andresponsibilities oftheEuropeanEconomic
Communityandtherecipientcountryrelatinginparticulartodelivery
andtakingofdeliveryaredefinedintheAnnexwhichformsanintegral
partofthisAgreement. .....
ArticleIV
Therecipient ,countryundertak.estoaakeall.necessaryarrangements
forthetransportandinsuranceoftheproduct,suppliedfromports ,of
shipmenttoplacesofdestination .
Itundertakestoexercisethegreatestpossiblecaretoensurethat
tenderingarrangements fortransportoftheproductbyseadonot
prejudicethefreeplayoffaircompetition.Anyproblemsarising
inthisconnection -shallbethesubjectofconsultations unde'fr-'<
ArticleIXofthisAgreement.
Articlev .•■..
.- I"■1'<!■■■■ I,
TherecipientCountryundertakestousetheproductrecfeivedasfood-
aidforpurposesofconsumptionandtoapply,forthesaleofthe
productonitsmarket,theprices"normallychargedonthatmarketfor
products'ofcomparablequality.•* •-<

-6-
Theproceedsfromthissale,lessthecostoftransportbysea,
relevantinsurancecostsandthenormalmarketingcostsonthe
recipientcountry'smarket,shallbepaidintoaspecialaccountat
theCentralBankandallocatedtothefinancingofoneormore
developmentprojectstobeproposedbeforehand bytherecipient
countryandapprovedbytheEuropean ,EconomicCommunity.
ArticleVI
ThecontractingpartiesundertaketoimplementthisAgreementinsuch
awayastoavoidanyprejudicetothenormalstructureofdomestic
production andinternational trade.Tothisendtheyshalltakeany
measuresrequiredtoensurethatsuppliesreceivedasaidarein
additionto,anddonotreplace,commercialtransactions whichmight
reasonably beexpectedintheabsenceofsuchsupplies.Inparticular ,
therecipientcountryundertakestoimport,onacommercialbasisfrom
allsources^aminimumquantityof'600000metrictonsofcommonwheat,-
oritsequivalentinflourofcommonwheat,between1July1972and
30June1973.
ArticleVII
Therecipientcountryshalltakeallnecessarymeasurestoprevent:
-re-exportation oftheproductreceivedasaidandofproducts
andby-products derivedfromsuchsupplies;
-commercialornon-commercial exportation ,withinsixmonthsofthe
la&tdelivery,oflocally-grown commonwheatsimilartotheproduct
receivedasaidandofproductsandby-products derivedtherefrom.,
ArticleVIII
TherecipientcountryundertakestoinformtheEuropean -Economic .
CommunityofthemannerinwhichthisAgreementisimplemented.To
thisenditshallprovidetheCommissionoftheEuropeanCommunities
withthefollowinginformation : \
•••/•*•

-7-
r
-notlater than thirty days after theunloading ofeach cargo :
ports anddates ofarrival ofthevessel ;nature ,quantity and
quality oftheproducts unloaded ;date onwhich unloading was
completed ;
-every three months until thequantities received asaidhave been
exhausted :quantities sold ,method ofmarketing ,prices ;normal
marketing costs ontherecipient country 'smarket ;
-on15January ofeach year until thespecial account hasbeen fully
used :
-position oftheaccount (deposits andwithdrawals )at
31December ofthepreceding year ;
-state ofadvancement ofprojects with anindication oftotal
financing atthat stage .
Article IX
Attherequest ofeither ofthem ,thecontracting parties shall consult
each other onany questions concerning theimplementation ofthis
Agreement .
Article X
This Agreement isdrawn upinduplicate intheDanish ,German ,English ,
French ,Italian ,Dutch andSpanish languages ,each ofthese texts
being equally authentic .

ANNEX REFERRED TOINARTICLE III OFTHE AGREEMENT
Article 1
Delivery shall beeffected andrisks shall pass from theEuropean
Economic Community totherecipient country atthemoment atwhich
the goods have been placed inthe ship 'shold attheport ofshipment .
Therecipient country shall bear ailcosts subsequent todelivery of
thegoods ,including costs ofstowage and ,where appropriate ,trimming
\andbagging costs .
Anydemurrage costs oranydispatch money attheport ofshipment
shall beacharge onorfor the "benefit oftheEuropean Economic
Community and shall bedetermined before th&vessel sails .The
rates anddetailed arrangements applying thereto laid down inthe
contract between therecipient country and thecarrier must have
i.1 « •.
been agreed upon inadvance bytherecipient country and theauthorized
agent oftheEuropean .Economic Community referred toinArticle 9-
Article 2 ,
TheEuropean Economic Community shall notify therecipient country in
good time oftheport orporta ,ofshipment ,thequantities tobe
delivered atea:ch port ,theperiod within which loading must begin
and thedaily "loading rate .

Artici 3
TheEuropean Economic Community must beready toload thegoods on
thedate ,resulting from theinformation referred toinArticle 8,
onwhich thevessel should beready forloading .
Article 4
Ondelivery atolerance of5%less than thequantity tobesupplied under
Article 1oftheAgreement ispermitted .
Article 5
Once thegoods are onboard thevessel ,theEuropean Economic Community
shall notify therecipient country ofthe date ofloading ,and the
quantity and quality ofthe goods asrecorded onloading .
Article 6
Therecipient country shall ,within theperiod referred toinArticle 2,
procure fortheEuropean Economic Community avessel ofdimensions
corresponding tothenormal loading potential oftheport ofshipment .
Should itprove impossible forthevessel tobegin loading within the
period referred toandshould therecipient country nothave notified
theEuropean Economic Community ofthis fact inwriting atthelatest
bythedate onwhich theship should "beready forloading inaccordance
with Article 8,thegoods maybedisposed ofbytheEuropean Economic
Community .
Whatever the circumstances ,the goods shall beheld attheexpense ,risk
andperil oftherecipient country .

-10 -
Article 7
Should therecipient country fail toprovide avessel ofsuitable
tonnage ,orifthequantity made available forloading onavessel
ofsuitable tonnage cannot beputonboard initsentirety because of
circumstances beyond thecontrol oftheEuropean Economic Community ,
the balance shall beloaded ontothenext vessel under the conditions
laid down inthis Annex .
Inthis event ,until thedate ofloading ofthis balance oruntil the
date onwhich therecipient country gives notice inwriting that it
renounces this balance ,thegoods shall beheld attheexpense ,risk
andperil oftherecipient country .
Therecipient country must inform theEuropean Economic Community ,within
amaximum period of30clear days from the dayonwhich loading ofthe
shipment with which these goods should have been loaded began ,ofthe
date onwhich loading ofthis balance isdue tobegin orofits
renunciation ofthis balance .
Ifthis obligation isnotrespected ,theEuropean Economic Community
may consider that ithas discharged its commitment totherecipient
country under Article 1oftheAgreement .
Article 8
Therecipient country shall name fortheEuropean Economic Community
thevessel that istoship thegoods ,atleast 10clear days prior
totheestimated date ofarrival ofthevessel inport or,wherever
possible ,20clear days prior tothat date ,andshall atthesame time
indicate how soon after that date thevessel will beready forloading .
Therecipient country shall insert inthecharter-party aclause
requiring the captain toinform theEuropean Economic Community at
least 72hours inadvance ofthevessel 'sestimated date ofarrival
intheport ofshipment .

11-
Article 9
Toimplement theprovisions ofthis Annex ,theEuropean Economic
Community shall appoint anauthorized agent ,whose name andaddress
shall bemade known ingood time tothe recipient country .
Therecipient country shall nominate areceiving agent ineach port
ofshipment ,whose name and address shall bemade known tothe
European Economic Community before theAgreement isimplemented .