ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(74)2099
Vol.1974/0347

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OMMISSION OFTHESUROEBAN COMMUNITIES
't
COM(74)2099 final
Brussels .9December 1974
I -
Proposal fora
REGULATION (ESC)OFTHECOUNCIL
on/thesale ofskimmed milk powder from public
stocks forsupply todeveloping countries
(submitted totheCouncil "bytheCommission )
COM(74 )2099 final

Financial Effects
Estimated expenditure entailed "bythemeasure should ,assuming that 100.000
metric tons ofskimmed milk powder aredisposed of,amount tosome 45mil­
lion units ofaccount .Removal from storage will ,however ,save storage and
financing costs forseveral months ,sothat netadditional expenditure will
amount tosome 40million UA*
Since ,according tothe1974 declarations ofpayments "bytheMember States
under thearrangement sfortheGuarantee Section ofthe EAGGF ,some ofthe
relevant 1974 budget appropriations remain unexpended ,themeasure proposed
should befinanced from those appropriations *TheCommission will therefore
propose that 40million UAofthe 1974 appropriations becarried over to
thefollowing year .

Proposalfora
KEGCLASICT(ESC)OPTHECOTCIL
onthesalsofskimmedmi11cpowderfrompublicstocksforsupplytodeve­
lopingcountries •
THECOUNCIL OPTEEEUROPEAN COMMUNITIES -
HavingregardtotheTreatyestablishingtheEuropeanEconomicCommunity;
HavingregardtoCouncilRegulation(EEC)No804/68of27Juno1968on
thecommonorganization ofthemarketinmillcandmilkproducts,aslast'
amendedbyRegulation(SEC)Wo662/74andinparticularArticle7(4)
thereof| - '
HavingregardtotheproposalfromtheCommission }
WhereasthesecondsubparagraphofArticle7(2)ofRegulation(EEC)
No804/68providesthatspecialmeasuresmaybetakenforskimmedmilkpow­
derboughtinbyintervention agencieswhichcannotbemarketedonnormal
ternsduringamilkyear;
WhereasonefeatureoftheCommunitymarketinskimmedmilkpowderisthe
.1largestocksheldbyintervention agencies,onlypartofwhichcanbesold
onthetermsprovidedforinArticle5(2)ofCouncilRegulation(EEC):
NoIOI4/68of20July1968layingdowngeneralrulesforthepublic
storageofskimmedmilkpowder,aslastamendedbyRegulation(EEC)
No1211/69whereasonlylimitedsalesforexportationarepossibleon
thoseterms;whereasprolongedstorageshouldbeavoidedbecauseofthehigh
costsentailed}whereasspecialmeasuresshouldthereforebetakentofa­
cilitatethedisposaloftheskimmedmilkpox-rder}
1)OJ-NoL1£8,28June1968,p.13
,2)OJNoL85,29March.1974,p.51
3)OJNoL173,22JulyI968,p.4
[4)OJNoL155,28June1969.p.13
./.

Whereas there isagrowing need forhigh-protein milk products indeveloping
countries ;whereas food aidisprovided notonly under Community programmes ,
butalso "byintomational organizations andbynon-profit -making institution :
andassociations established intheCommunity which purchase skimmed milk
powder forsupply tosuch countries onthemarket ;vrhereas market prices
have risen steeply ,sothat thequantities which were tobesupplied asaid
might have tobereduced ;whereas thestocks held by 'theintervention
agencies aresuch that skimmed milk powder canbesold totheorganizations ,
institutions andassociations inquestion atreduced prices ;whereas ,
should natural disasters occur ,itmight prove desirable ,forthesake of
speed ,tosell directly tothird countries which areprepared tobuyonthe
terms laid down ;
Whereas such sale must bemade subject toconditions toensure that the
skimmed milk powder isnotdiverted from itsdestination ;
HAS ADOPTED THIS REGULATION !
Article 1
1,Thedecision maybetaken tosell atreduced prices upto100000metrxo
tons ofskimmed milk powder bought inasprovided inArticle 7(l)°f
Regulation (EEC)No804/68to :
(a)international organizations responsible forcarrying outfood
aidprogrammes ;
(b)non-profit -making institutions andassociations whose headquarters
aresituated within theCommunity ,forsupply todeveloping countries
2,Ifnatural disasters occur ,thedecision maybetaken tosell directly
tothethird country inquestion ,
3,Theselling price exintervention agency storage depot shall beequal
to50f0oftheprice atwhich agencies arebuying inskimmed milk powder
atthetime when thecontract ofsale isconcluded .

Thedetailed rules tobeadopted fortheapplication ofthis Regulation
shall ,inparticular ,include :
-therequirements tobesatisfied bytheorganizations ,institutions and
associations referred toinArticle 1(l);
-measures toensure that theskimmed milk powder isnotdiverted from its
destination Twhich msyinclude thecondition that asecurity beprovided ;
-provisions toensure that ,where theskimmed milk powder isnotdistributed
free ofcharge ,theprice reduction granted byintervention agencies is
reflected intheprice atwhich theproduct issold inthird countries
ofdestination .
Ar+ic ]e3
This Regulation shall enter into force onthethird dayfollowing its
publication intheOfficial Journal oftheEuropean Commurities .
This Regulation shall bebinding initsentirety anddirectly
applicable inallMember States .
Bone atBrussels , For the Council
The President