ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(74)1709
Vol.1974/0272

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(74)1709 final
Brussels,21October1974
RECOMMENDATION FORA
COUNCILDECISION "
ontheconclusionofanagreement "betweentheEuropeanEconomic
CommunityandtheRepublicofthePhilippines onthesupplyof
cerealsasfoodaid
(submittedtotheCouncil "bytheCommission)
COM(74)1709final

THECOUNCIL OPTHEEUROPEAN COMMUNITIES ,
Having regard ,totheTreaty' establishing theEuropean Economic Community ,
andinparticular Articles 113 ,114and .228,thereof ;
Having regard totheRecommendation from theCommission ;
Whereas theEuropean Economic Community hasconcluded thesecond Convention
relating tofoodaid^^*, ^ "
Whereas theRepublic ofthePhilippines ,byitsletter of00August 1973
hasrequested food aid ;
Whereas inview ofthecereal supply situation inthe .Philippines ,that country
should beaccorded ,bywayofgift ,5000 ..tonnes ofoereals *intheform of
3311tonnes offlour ofsoft wheat under theCommunity Food AidProgramme for
1973/74J
DECIDES :
Article 1
Onbehalf oftheEuropean Economic Community anAgreement ,thetext whereof
isannexed hereto ,shall beconcluded between theEuropean Economic Community
and theRepublic ofthePhilippines onthesupply offlour ofsoft wheat as
food aid .
.Article 2
ThePresident oftheCouncil ishereby authorized todesignate those who
aretosign theAgreement ^ndtoconfer onthem therequisite powers to
bind theCommunity .?1
i ^
Done atBrussels , 19 '
I .
i |; FortheCouncil
• ■' ¥ ' *' ■
S
. The President
(13JiOu L219du9.8.74 ,p.19

AGREEMENT
BETWEENTHEEUROPEAN ECONOMIC COMMUNITY
ANDTHEREPUBLICOPTHEPHILIPPINE^.ON
THESUPPLYOPFOODAIDINTHEFORMOF
CEREALS.

THECOUNCILOFTHEEUROPEANCOI-MUNITIES ,
, oftheonepartj•
%
THEGOVERNMENT OFTHEREPUBLIC OFTHEPHILIPPINES
oftheotherpart,
HAVEDECIDEDtoconcludethisAgreementand.tothisendhave
designate ,astheirplenipotentiaries :
THECOUNCILOFTHEEUROPEAN COMMUNITIES
o
THEGOVERNEMENT OFTHEREPUBLICOFTHEPHILIPPINES :
WHOHAVEAGREEDASFOLLOWS:

ARTICLE I
TheEuropean Economic Community shall supply bywayofgift totheRepublic
thePhilippines ■ (hereafter referred ,toas"therecipient country ")ai
quantity of500O .tonnes .ofcereals intheformof3-.311tonne sofflour of
softwheat under theCommunity 'sfood aidprogramme incereals for1973/74*
ARTICLE II
Deliveries will bemade innew :catton saoks with anetweight of50kg.each ,
fob inaccordance with the details laid down intheAnnex which forms an
integral part ofthepresent Agreement .
ARTICLE III
Therecipient country undertakes tomake allnecessary arrangements forthe
transport andinsurance oftheproducts from point ofdelivery toplaces
ofdestination .
Itundertakes toexercise thegreatest care toensure that thetendering
arrangements for seatransport donotprejudice thefree play offair
competition .Anyproblems arising inthis connection shall bethesubject
of'consultations under Article VIII ofthepresent Agreement .
ARTICLE IV
.Therecipient country undertakes touse theproduct received asaidfor
purposes ofconsumption and toapply ,for thesale oftheproduct onits
market ,theprices normally charged onthat market forproducts of
comparable quality .Theproceeds from this sale shall bepaid into ar
special account with theCentral Bank andallocated tothe^financing of
oneormore development projects under arrangements which have been
agreed inadvance between therecipient country -andtheEuropean Economic
Community .

ARTICLE V
TheContracting Parties undertake toimplement this Agreement insuch away
astoavoid anyprejudice tothenormal structure ofnational production
andinternational trade .Tothis endthey shall take anymeasures required
toensure that supplies asaid are inaddition toanddonotreplace business
transactions which might reasonably beexpected intheabsence ofsuch supplies .
Inparticular ftherecipient country undertakes toimport commercially from
whatever source between 1July 1974 and 30June 1975 aminimum quanity of
615500 tonnes of " ..'soft wheat oritsequivalent inflour ofsoft wheat .
ARTICLE VI
Therecipient country shall take allsteps required toprevent :
(i)there-export oftheproduct received asaidandalso ofanyproducts
andby-products resulting therefrom ;
(ii)theexport ,commercially orotherwise ,within aperiod ofsixmonths
commencing from thefinal delivery ,either ofanyproduct procured
locally ofthe same nature asthat used toproduce theflour received
asaid ,orofanyproducts andby-products resulting therefrom .
ARTICLE VII
Therecipient country undertakes toinform theEuropean Economic Community
ofhowthis Agreement isimplemented .Tothis enditshall provide the
Commission oftheEuropean Communities with thefollowing details :•
(i)Immediately after theunloading ofeach cargo :ports anddates of
arrival ofvessel ;nature ,quantity andanyobservations astothe
quality oftheproducts unloaded ;date onwhich unloading was
completed ;costs ofseatransport andofinsurance relating thereto ;
(ii)Every' three months until the .quantities received as^idhave been
fully used :quantities sold ;manner of -sales actual selling prices ;
(
normal selling costs ontherecipient country 'smarket ;costs of
insurance (andoftransport ifapplicable )from theport ofunloading
totheplaces ofdestination ; . ..

General provisions
Article 1 ■. . „ ■______
Delivery shall "beeffected andrisks shall pass form theEuropean Economic
Community ,hereinafter referred toastheEEC ,totherecipient country at
themoment atwhich thegoods areputdown atthepoint ofexportation
named bytheCommission oftheEuropean Communities attheberth specified
bytherecipient country oritsagent referred toinArticle 3andunder the
terms specified inthefollowing articles .Without prejudice toArticles 7and .
8theEECshall bear allcosts uptodelivery andtherecipient country those
beyond delivery .
Article 2
Ondelivery atolerance of5%less than thequantity oftheproduct tobe
supplied inaccordance with article IoftheAgreement shall beadmissible .
Article 3
TheEEC shall appoint anagent toimplement theprovisions ofthepresent
Annex -orforeach consignment -whose name andaddress itshall make
known totherecipient country immediately following hisappointment .
Therecipient country shall appoint anagent intheport orports ofship­
ment ,whose name andaddress itshall make known tothe .EECwith all
despatch andifpossible before theappointmen tofagent oftheEEC .
»
Article 4 .
Before implementing theprocedures forappointing theagent oftheEEC
referred toinArticle 3»theCommission oftheEuropean Communities and
thorecipient country shall jointly establish theperiod during whiph
delivery must begin . " • '
*
ι
\ .Obligations oftheEuropean Economic Community '
*
Article 5
Should theEECnotbeinaposition tocarry outdelivery onthedate and
(ifapplicable )ontheschedule asprovided inArticle 7»allcosts
arising fortherecipient country -forexample demurrage void freight
anddead freight -shall beborne bytheEEC .

(iii)On15Januaryeveryyearuntilthespecialaccounthas"beenfully
expended .:
a)Summaryoftheaccount(incomingsandoutgoings)to31December
ofthepreviousyear;
b)Stageofprogressoftheprojectorprojects,indicatingthe
totalresourcesexpendedtothatstage.
ARTICLEVIII
TheContractingPartiesshallattherequestofeitherconsulteachother
onanyquestionsconcerningtheimplementation ofthisAgreement.
ARTICLE IX
ThisAgreementisdrawnupinduplicateintheDanish,Dutch,English,
French,GermanandItalianlanguages,eachofthesetextshavingequalforce.

Thecharges andthearrangements relating todemurrage laid down intha
contract between therecipient country and thecarrier must have been
agreed inadvance bytherecipient country andtheagent oftheEEC .
Theother costs referred tointhefirst paragraph shall only berefunded
bytheEECifthey have been paid bytherecipient country with theapproval
ofthe EEC • . •
Article 6
Should itprove impossible for theEEC tosupply allorpart ofthegoods
onthedate andwithin thetime-limits provided for inArticle ^andwithout
prejudice totheprovisions ofArticle 5»anewdate andanewtime-limit
shall beagreed between theagents oftheEECandoftherecipient country
for thedelivery ofallthegoods orof .theundelivered part thereof .
Obligations ofthe recipient country
Article 7
After contacting theEEC ,therecipient country shall procure oneormore
vessels totransport all thequantities provided for inArticle 1ofthe
Agreement ,ofdimensions corresponding tothenormal capacity oftheport of
shipment }these vessels must beready forloading onadate falling within
theperiod referred toinArticle 4•
I
Theagent oftherecipient country shall inform theEECofthis date
immedately onlearning it,andalso that forcommencement ofdelivery ,
ifpossible twenty days inadvance andinanycase tendays before thedate
"forcommencement ofdelivery . "
Heshall establish with theagent oftheEECtheschedule towhich delivery
shall take place .
i m
Article 8 1
~ è
Should therecipient country beunable .tobegin loading onthe *date provided
forinArticle 7iparagraph 1,theagent oftherecipient country shall
inform theagent oftheEECwithout delay .

Inthis eventanewdate forthecommencement ofdelivery and (ifapplicable )
anew schedule could "beagreed between theagents oftheEECandofthe
recipient country .Thecosts arising from this delay shall inallcases
• 1• •
except force majeure be "borne "bytherecipient country .
" »
Should thenewdate provided for .inparagraph 2bemore than $0clear days
after thedate forloading provided for inArticle 7iparagraph 1,.theEEC
maydispose ofthegoods without prejudice toitscommitment under Article 1
ofthis Agreement .
Article 9
Ifthequantity made available forloading onavessel cannot "beput on
board initsentirety ,therecipient country shall inform theEECas60on
aspossible andnolater than fifteen clear days after loading hasbeen
completed whether itintends toaccept ortorenounce thebalance .
In*theformer case theprovisions ofArticle ti,paragraphs 2and 3»shall
apply tothebalance ,ifdelivery hasnotyettaken place .
Inthelatter case theEECmayconsider that ithasdischarged itscommitment
totherecipient country under Article 1ofthis Agreement and shall bear
thecosts resulting from such renunciation .
Inanyevent after theexpiry ofaninterval .offifteen clear days andin
theabsence ofanynotice onthepart oftherecipient country ,therenun­
ciation shall bedeemed tohave taken place .
<
Article 10
Upon delivery ofthegoods ,therecipient country shall hand tothe
•agent oftheEECacertificate ofacceptance stating theport ofshipment ,
» •
date ofacceptance ,thenature andquantity of*thegoods accepted and "-,
including anycomments onthequality *ofthegoods .