ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(70)273
Vol.1970/0042

Disclaimer
Conformément aurèglement(CEE,Euratom)n°354/83duConseildu1erfévrier1983
concernantl'ouvertureaupublicdesarchiveshistoriquesdelaCommunauté économique
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p.1),telquemodifiéparlerèglement(CE,Euratom)n°1700/2003du22septembre2003
(JOL243du27.9.2003,p.1),cedossierestouvertaupublic.Lecaséchéant,lesdocuments
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Inaccordance withCouncilRegulation(EEC,Euratom)No354/83of1February1983
concerningtheopeningtothepublicofthehistoricalarchivesoftheEuropeanEconomic
Community andtheEuropeanAtomicEnergyCommunity (OJL43,15.2.1983,p.1),as
amendedbyRegulation(EC,Euratom)No1700/2003of22September2003(OJL243,
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InÜbereinstimmung mitderVerordnung(EWG,Euratom)Nr.354/83desRatesvom1.
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Wirtschaftsgemeinschaft undderEuropäischen Atomgemeinschaft (ABI.L43vom15.2.1983,
S.1),geändertdurchdieVerordnung (EG,Euratom)Nr.1700/2003vom22.September2003
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EUROPEAN ECONOMIC flOMMUNITY
COI:(70)273final
Bruxelles,12/3/1970
AGREEMEMT
BETWEENTHEEUROPEAN ECONOMIC COMMUNITY
MDTHEGOVERNMENT OFCEYLON
OKTHESUPPLYOFFLOUROFWHEATOTHERTHANDURUM
ASFOODAID
C0":I(70)273final

-2-
THECOUNCILOFTHEEUROPEANCOMMUNITIES,onthesnehand,and
THEGOVERNMENT OFCEYLON,onthe.etherhand,
HAVEDECIDEDtoconcludethepresentAgreementandhave
f®rthispurpsse,appointedastheirplenipotentiaries :
THECOUNCILOFTHEEUROPEAN COMMUNITIES :
THEGOVERNMENT OFCEYLON:
WHOHAVEAGREEDasfollows s

-3-
ARTICLEI
Underitsfood,aidprogrammeforcerealsfortheyear1969/1970,
theEuropeanEconomicCommunityshall,inaccordancewiththedecision
takenbytheCouncilon10-11November1969»makethegovernmentof
Ceylonagift«ftheequivalentof14.000tonsofwheatotherthan
durum(hereinafterreferredtoas"wheat"),towhichtheMemberStates
oftheEuropeanEconomicCommunityshallcontributeasfollows:
-theEangdomofBelgium
-theFédéralEepublicofGermany
-theFranchEepublic
-theItalianEepublic
-theKingdomoftheUetherlands
Thetotalof14.000tonsofwheatshallbesuppliedintheform
of9*272tonsofflour*
Deliveriesshallbemadef.o.b.Communityportsinjutesacks
ofgrossweight68-038kg(150lbs)
1
TheCommissionoftheEuropeanCommunitiesshallinformthe
governmentofCeyloningoodtime,byletter,telexortelegram,ofthe
portsofshipment,thequantities,thedatesofavailability atthe
saidports,andthedailyloadingrate.
Theresponsibilities oftheEuropeanEconomicCommunityandthe
governmentofCeyl®nwithregardtoshipmentandtotakingdelivery
f.o.b.respectively aresetoutintheAnnex,whichformsanintegral
partofthepresentAgreement.1.000tons
4»000tons
4.000tons
4.000tons
1.000tons

ARTICLE II
Thegovernment "ofCeylon undertakes tomake allnecessary arrange­
ments fortransporting -the floUJj from theports ofshipment toits
destination . ' ... .
Itundertakes toexercise the .greatest possible care toensure
that thetendering arrangements for thetransport bysea arenot preju­
dicial tothefree play offair c@mpetition .Anyproblems arising in
this connection shall bethesubject ofconsultations tinder Article VIII
ofthepresent Agreement ,
ARTICLE .III .
Thegovernment ofCeylon undertakes t®use for consumption purposes
theflour that issupplied asaid .and toapply tosales ofthis flour
onitsmarket theprices normally ruling onthis market forproducts of
comparable quality .
Theproceeds ofthese sales ,less seafreight charges andnormal
marketing costs ontheCeylonese market ,shall bepaid int® aspecial
account intended tocover expenditure incurred bythegovernment of
Ceylon inconnection with thefinancing ofdevelopment projects .

-5-
ARTICLEIV
TheContractingPartiesundertaketoimplementthepresent
Agreementinsuchawayastoav«idprejudicing then®rmalstructure
ofproductionandinternational trade.Tothisend,theyshalltake
thenecessarystepstoensurethatsuppliesmadeavailableasaid
shallbeadditionalto,andnotinlieuof,thecommercialoperations
whichcouldreasonablyhaveWenexpectedintheabsenceofsuch
supplies.
ARTICLEV
ThegovernmentofCeylonshalltakeallnecessarystepstoprevent
there-exportation oftheflourreceivedasaid,aswellastheexpor­
tation,commercialorotherwise,withinaperiodofsixmonthsfrom
thedateofthslastdelivery^oflocallygrownwheatofthesametype
asthatusedinmakingthefl©urreceivedasaid,andofproductsof
thefirstprocessingstageobtainedfromthiswheat.

ARTICLEVI'
k'
ThegovernmentofCeylonundertakestokeeptheEuropeanEconomic
Communityinformedontheconditionsofimplementation ofthepresent
Agreement.Tothisend,itshallcommunicatethefollowinginformation
totheCommissionoftheBaropeanCommunities :
1.Transport :portsanddatesofarrivalofvessels;nature,quantity
andqualityoftheproduceunloaded $thedateonwhichunloading
iscompleted ;
2.Marketing :quantitiessold$methodofmarketing|sellingprice;
3«Situationwithregardtothespecialaccountsetupwiththe
proceeds©fthesale,inlocalcurrency,ofthefloursuppliedas
aidi
4*Projectsfinancedfromthespecialaccount;relativeimportance
ofthesefundsintheoverallfinancingofprojects.

ARTICLEVII
Theinformation referred ,toinarticle "VIshall "becommunicated
withinthefollowingtime-limits :
-Withregardtotransport :notmorethan30daysaftertheunloading
ofeachcargo;
•'"..s.»',,. v
-Withregardtootherinformation :areportonthesituationat31
Decembereachyearshallbecommunioated before15January®fthe
followingyear,untilsuchtimeasthespecialaccounthasbeen
completelyliquidated.
ARTICLEVIII
Attherequestofanyoneamongstthem,theCentractmgParties
shallconsultonallmattersconcerningtheapplication ofthepresent
Agreement.
ARTICLEIX
ThepresentAgreementisdrawnupinduplicatezntheGerman,
French,Italian^DutchandSiglishlanguages,eachofthesetexts
beingequallyauthentic.

-8-
ÂNÎJÏÏX
CONDITIONS APPLICABLE T.OTHEEMDINGOVER
OPTHEFLOURATTH3PORTSOFSHIPMMT
ToensurethesmoothoperationoftheAgreementand
ofArticleIthereof,theContractingPartieshaveagreed
ARTICLEI
ExceptasotherwiseprovidedinArtie"33»sixthparagraph,
deliverywillbedeemedtoheeffectedatthemomentatwhichthe
goodshaveeffectively passedtheship'srailattheportofshipment;
allcostsofstowageandsecuringshallbebornebythegovernmentof
Ceylon. v
ARTICLE2
ExceptasotherwiseprovidedinArticle3,sixthparagraph,risks
shallpassfromtheEuropeanEconomicCommunitytothegavernmentof
Ceylonatthemomentatwhichthegoodshaveeffectively passedthe
ship'srailattheportofshipment.inparticular
asfelloxs:
I

AETICLE3
Thegsvernment ©fCeylonshallprocureandnotifytotheEuropean
EconomicCommunity,ingoodtime,thevesselswhicharetoshipthe
'···' · ί
goods,sothattheloading'datesindicatedinaccordancewithArticleI
oftheAgreementmay"berespected.
Thevesselisto"benamed "bythegovernmentofCeylonitleast7
cleardayspriortotheestimateddateofarrivalinportaThegovernment
ofCeylonshall "beresponsibleforanyconsequences arisingeitherfrom
failuretonamethevesselorfromdelayindoingso*
ThegovernmentofCeylonshallinsertinthecharterparty aclause
requiringthecaptaintoinform.theEuropeanEconomicCommunityatleast
72hoursinadvanceofthevessel'sestimateddateofarrivalinport.
ThegoodsshallbeheldatthedisposalofthegovernmentofCeylon
intheportindicatedfromthedateonwhichtheshipisdeclaredready
forloading.IntheeventoftheEuropeanEconomicCommunitynotplacing
thegoodsatthedisposal»fthevesselingoodtime,anyconsequences
resultingfromthis,inparticulardemurrageand/®rdeadfreight,shall
beachargeontheEuropeanEconomicCommunity.

-10-
Shouldtherbeadelayinthearrivalofthevesselnamedby
theGovernmentofCeylonattheportofshipment,orshoulditprove
impossibleforittoload,andshouldthisdelaypreventloadingwithin
thetime-limitsindicatedinaccordancewithArticleIoftheAgreement,
thegoodsshallbeheldattheexpense,riskandperilofthegovernment
ofCeylon. ..."
ShouldthegovernmentofCeylonfailtoprovideavesselofsuitable
tonnagewithinthetime-limitindicatedinaccordancewithArticleI
oftheAgreement,itshallberegardedasbeingindefaultunlessit
notifiestheBurspeanEconomicCommunitybytelegram,notlaterthan
thelastdayoftheperiodfixedfordelivery,thatitisseekingan
extension©fthisperiod."Wheresuchanextensionissought,the
BiropeanEconomicCommunityshallholdthegoodsonbehalfofthe
governmentofCeylon,expensesresultingfromthisbeingbornebythe
latter.
ThegovernmentefCeylonshallberesponsibleforanyconsequences
resultingfromthefactthatthedimensionsofavesselsuppliedby
itdonotcorrespondtotheleadingpessibilities oftheportofshipment.

ARTICLE 4
Thetolerance ©nshipment ofthequantities notified ,inaccordance
with Article IoftheAgreement shall be5i°ialthough thetotal
quantity of9*272 tons shall innocase beexceeded .
If,however ,thequantity made available forloading onagiven
vessel cannot beputonboard initsentirety because ofcircumstances
beyond thecontrol oftheEuropean Economic Community ,thebalance
which could not beputonboard within thespecified time-limits shall
bestored attheexpense ofthegovernment ofCeylon andshipped onthe
next vessel .
Ifthegovernment ofCeylon informs theEuropean Economic Community
within aperiod of15clear days that itwill nottake delivery ofthis
balance ,thehandling andstoring expenses incurred shall beborne by
thegovernment ofCeylon until such time asitgives notice that it
gives upthis balance .
Inthis event ,theEuropean Economic Community mayconsider that
ithasdischarged its commitments tothegovernment ofCeylon .

-12-
ARTICLE5
Oncethegoodsareon"boardthevessel,theEuropeanBc©nomio
CommunityshallnotifythegovernmentofCeylonwithoutdelayofthe
dateofloading,thequantityandqualityloaded,notedonloading
andmentionedinthevessel'shilloflading.
ARTICLE6
Allexpensesincurredsubsequenttodeliveryofthegoodsonce
thesehaveeffectively passedtheship'srail,shall "beborneby
thegovernmentofCeylon#
ARTICLE7
TheContractingPartiesreservetherighttonominateoneor
moreagentstoexecutetheAgreement *
Todealwithanyeventualities ,thegovernmentofCeylonshall
nominatearepresentative ineachportofshipment.