ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73)1894
Vol.1973/0335

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(73)1894 final
Brussels.8November1973
RECOMMENDATION FORA
COUNCILDECISION
ontheconclusionofanagreementbetweenthe
EuropeanEconomicCommunity
andtheRepublicofIndonesiaforthe
supplyofsoftwheatasfoodaid
(submittedtotheCouncil "bytheCommission)
COM(73)1894final

THE COUNCIL OFTHE EUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,
andinparticular Articles 113 »11^and228thereof ;
Having regard totheRecommendation from theCommission ;
Whereas theEuropean Economic Community has deposited aDeclaration for
provisional application ofthe 1971 Food AidConvention ;whereas that
Convention has been applicable since 1July 1971 ;
Whereas theRepublic ofIndonesia byits letters of5November 1971
12December 1972 has requested food aid ;
Whereas inview ofthe cereal supply situation intheRepublic ofIndonesia
that country should beaccorded ,bywayofgift ,2^.000 metric tons ofsoft
wheat ofwhich 17.000 tons forming part ofCommunity Food AidProgramme
for1971/72and7.000 tons ofthe1972/73programme
DECIDES :
Article 1
Onbehalf oftheEuropean Economic Community anagreement ,the text whereof
isannexed hereto ,shall beconcluded between theEuropean Economic Communit
and theRepublic ofIndonesia forthesupply ofsoft' -,wheat asfood aid .
Article 2
jihePresident oftheCouncil ishereby authorised todesignate those who
are tosign theagreement and toconfer onthera therequisite powers tobind
theCommunity .
Done atBrussels , 19»« For theCouncil
The President

AGREEMENT
BETWEENTHEEUROPEAN ECONOMIC COMMUNITY ANDTHE
REPUBLIC OFINDONESIA
ONTHESUPPLYOFFOODAIDINTHEFORM
OFSOFTWHEAT

THE COUNCIL OFTHE EUROPEAN COMMUNITIES
ontheonehand ,
i
THE GOVERNMENT OFTHE REPUBLIC OFINDONESIA
ontheother hand ,
HAVE DECIDED toconclude this Agreement and tothis endhave
designated astheir plenipotentiaries :
THE COUNCIL OF .THE EUROPEAN COMMUNITIES :
THE GOVERNMENT OFTHE REPUBLIC OFINDONESIA :
WHO HAVE AGREED ASFOLLOWS :

TheEuropean Economic Conrunity shall supply theRepublic of
Indonesia ,hereinafter referred toasthe "recipient country ",
with 2^.000 metric tons ofsoft wheat ofwhich 17.000 tons would
bepart ofthe1971/72programae and7-000 tons ofthat for1972/73-
ARTICI3 II
Deliveries will bemade inbulk fobCommunity ports .
A57ICL3 III
The obligations andresponsibilities oftheEuropean Economic
Community andoftherecipient country relating todelivery and the
taking ofdelivery are defined intheAnnex ,which forms anintegral
part ofthis Agreement .
ARTICLE IV
The recipient country undertakes tosake all necessary arrangements
for the transport and insurance ofthe product from ports ofshipment •
toplaces ofdestination .
Itundertakes toexercise the greatest possible care toensure that
thetendering arrangements forthetransport byseaare notprejudicial
tothe .free play offair competition .Anyproblems arising inthis
connection shall bethesubject ofconsultations under Article IXof
the present Agreement .
ARTICLE V
Therecipient country undertakes tousetheproduct received asaid
forpurposes ofconsumption andtoapply ,forthesale oftheproduct
onitsmarket ,theprices normally charged onthat market forproducts
ofcomparable quality .

Theproceeds from this sale ,less thecost ofseatransport ,
insurance andthenormal cost ofselling theproduct onthe
recipient country 'smarket ,v/ill bepaid into aspecial account
intheCentral Bank until the entire quantity oftheaid
received issold .Atthat point theproceeds shall betransferred
tothe development budget oftherecipient country tobeused for
financing development projects .
ARTICLE VI
The contracting parties undertake toimplement this Agreement
insuch away astoavoid anyprejudice tothenormal structure
ofdomestic production and international trade .Tothis endthey
shall take anymeasures required toensure that aidsupplies are
inaddition to,and donot replace ,business transactions which
might reasonably beexpected intheabsence ofsuch supplies .
ARTICLE VII
• ••
The recipient country shall take anymeasures required to
prevent :
i)there-export oftheproduct received asaidandofproducts
andby-products resulting from such supplies ;
ii)theexport ,commercially orotherwise ,within sixmonths
ofthelast delivery ,either oftheproduct obtained locally
andofthesame nature astheproduct received asaid or -of
anyproducts ofby-products resulting from it.
ARTICLE VIII
*
The recipient country undertakes toinform' theEuropean
Economic Community howthis Agreement isbeing implemented .To
this end itshall provide theCommission oftheEuropean Communities
with the following information :
/

i)Hotlater than thirty days aftor thounloading ofeach cargo :
ports anddates ofarrival ofthevessel ;nature ,quantity
and quality oftheproducts unloaded ;date onwhich unloading
was completed ;
ii)Every three months until thequantities received asaidhave
been fully sold :quantifies cold ;how they have been sold ,
selling prices ;normal selling costs ontherecipient country 's
market ;
iii )immediately after theproceeds ofthesale have been transferred
the development budget :
onprogress made and degree ofrealisation ofone ormore
development projects onthe1972/73list ofprojects communi
cated bytherecipient country asbeing undertaken with the
assistance ofthemember stated ,broadly corresponding toth
proceeds from the sale oftheproduct received asaid .
ARTICLE IX
Atthe request ofeither ofthem ,the Contracting Parties shall consu
each other onany questions concerning the implementation ofthis
Agreement .
ARTICLE X
This Agreement isdrawn upinduplicate intheDanish ,Dutch ,
English ,French ,Germand and Italian languages ,each ofthese
texts being equally authentic .

ANNEX TOARTICLE TIT OFTHE AGREEMENT
Article 1
Delivery shall beeffected and risks shall pass from the
European Economic Community totherecipient country atthemoment
atwhich thegoods have been placed inthe ship 'shold atthe port
ofshipment .
The recipient country shall bear all costs subsequent todelivery
ofthe goods ,including costs ofstowage and ,where appropriate ,
oftrimming and bagging .
Any demurrage costs ordispatch attheport ofshipment shall
beacharge onorfor thebenefit oftheEuropean Economic
Community and shall bedetermined before the vessel sails .
The rates and detailed arrangements relating thereto laid down
inthe contract between the recipient country and the carrier must
have been agreed upon inadvance bythe recipient country and the
authorised agent oftheEuropean Economic Community referred toin
Article 9« ' (
Article 2
TheEuropean Economic Community shall notify therecipient country
mgood time ofthe port orports ofshipment ,the quantities to
bedelivered ateach port ,theperiod within which loading must
begin ,and thfedaily loading rate .
Article 3
TheEuropean Economic Community must beprepared toload thegoods
onthedate resulting from theinstructions inArticle 8,whereon the
vessel should beready forloading . '
Article k 1
Ondelivery ofthegoods ,atolerance of5%less than thequantity
tobesupplied inaccordance with Article 1oftheAgreement is
permitted . ~

Article 5
Once the goods are onboard the vessel ,theEuropean Economic
Community shall notify therecipient country ofthedate of
loading ,andthequantity andquality ofthegoods as .recorded i
onloadmg . ;
(
Article 6
The recipient country shall supply theEuropean Economic Community ,
whithin theperiod referred toinArticle 2,with avessel ofdimensit
corresponding tothe normal loading potential ofthe port ofshipment .
Should itprove impossible for the vessel tobegin loading within
theperiod referred toinArticle 2andshould therecipient country
nothave notified the European Economic Community ofthis fact in
v/riting atthe latest bythe date onv/hich thevessel should beready
forloading inaccordance with Article 8,thegoods shall beatthe
disposal oftheEuropean Economic Community .
Whatever the circumstances ,the goods shall behold atthe expense,'
risk and peril oftherecipient country .
Article 7
Should therecipient country fail toprovide avessel ofsuitable
tonnage ori'fthequantity made available forloading onavessel
ofsuitable tonnage cannot beput onboard initsentirety because
ofcircumstances beyond thecontrol oftheEuropean Economic Communit ;
the balance shall beloaded into the next vessel under the conditions
laid down inthis annex .
Inthis event ,until the date ofloading ofthif balance oruntil
therecipient country gives notice inwriting that itgives upthis
balance ,.thegoods shall behold attheexpense ,risk andperil ofthe
recipient country . ■
Therecipient country must notify theEuropean Economic Community
whithin aperiod ofamaximum of30days from thebeginning .of
loading oftheshipment towhich these goods should have belonged ,
ofthedate onwhich loading ofthis balance isduetobegin or ;
ofitsrenunciation ofthis balance . * j
Ifthis obligation isnotrespected ,theEuropean Economic Community j
mayconsider that ithasdischarged itscommitment totherecipient
country under Article 1oftheAgreement . j

Article 8
The recipient country shall nane fortheEuropean Economic Community
thevessel that istoship the goods atleast 10clear days prior to
estinated date ofarrival ofthe vessel inport or,where possible ,
20clear days prior tothis date ,and shall atthe same tine indicat
how soon after that date thevessel will beready forloading .
The recipient country shall insert inthe charter party aclause
requiring the captain toinform theEuropean Economic Community
atleast 72hours inadvance ofthe vessel 'sestimated date of
arrival inport .
.Article 9
Toimplement theprovisions ofthis annex ,theEuropean Economic
Community shall appoint anauthorised agent ,whose name andaddress
shall bemade known ingood time totherecipient country .
The recipient country shall nominate areceiving agent ineach port
ofshipment ,whose name and address shall beaade known tothe Europ
Economic Community before theAgreement isimplemented . .