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DOCUMENTS "COM"
COM(79)1
Vol.1979/0001

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(79)1final
Brussels,11January1979
PROPOSAL FORACOUNCIL
REGULATION
onthemanagementoffoodaid
Proposalfora
COUNCILREGULATION(EEC)"
amendingRegulations (EEC)Nos2052/69and
1703/72,Decision72/335/EECandRegulation
<EEC)No2681/74onCommunityfinancingof
expenditures incurredinrespectofthesupply
ofagricultural productsasfoodaid,and
repealingDecision72/335/EEC.
(submittedtotheCouncilbytheCommission
pursuanttothesecondparagraph .ofArticle149of
theEECTreaty)
COM(79)1finalΑ:-■7ν-"*·">\
ΕΙ1 'r.:&"'j
4y

EXPLANATORY MEMORANDUM
1. On14June1978theCommission presentedtotheCouncila
proposalforaregulation ontheproceduresforthemanagementoffood
aid(D.Thisproposalalsoincludeda"proposalforaCouncilregulation
amendingRegulation (EEC)n°1703/72asregardstheCommunityfinancingof
expenditure arisingfromtheimplementation offoodaidconventions "and
a"proposalforaCouncildecisionamendingDecision72/335/EEConthe
Communityfinancing acertainspecialexpenditure arisingfromtheimple­
mentationoftheFoodAidConvention of1971".
TheEuropeanParliament wasrequestedtodeliveritsopinionon
thesethreetexts,thelastofwhichwasalsosubmittedtotheCourtof
Auditorsforitsopinion.
2. InJuly,September,OctoberandNovember1978,theCouncil
devotedalargenumberofmeetingstoexaminingtheCommission proposal.
Thematterwasdiscussedinitially bytheWorkingPartyonDevelopment
Cooperation,andsubsequently bythePermanentRepresentatives Committee.
Althoughthediscussions failedtoproduceafinalcommonpositionendorsed
byallthedelegations,acertainlineofthoughtdidemergefromthem.
Parliamentdelivereditsopinionontheproposalon14November;
thiswasbasedonthereportpreparedbyMrLEZZIandalsoontheopinion
oftheCommittee onBudgetsdrawnupbyMrSCOTT-HOPKINS (2).Lastly,the
CourtofAuditorsdelivereditsopinionon26October(3).
3. TheprimeobjectiveoftheCommission'sproposalwastoestablish
managementprocedureswhijtiweremoreeffectiveandmoreinkeepingwiththe
spiritandletteroftheEECTreaty(Article205ofwhichlaysdownthat
theCommission aloneisresponsible forimplementing theCommunitybudget),
•withoutraisingthesubstantive problemslinkedwiththeconceptoffood
aidpolicy,fordiscussion ofthosematterswouldnecessarily havecaused
considerable del^sintheadoptionofthenewprocedures .
Inordertgachievethataim,theCommission madethefollowing
mainproposals :
a)thegeneralpoliticaldecisions (definitionofbasicproducts,decision
onannualquantities,formulation ofgeneralaidguidelines )shouldbe
assignedtotheCouncilandadoptedbyaqualifiedmajority;
b)themanagement powersatpresentheldbytheCouncilshouldbe
transferred totheCommission,inparticular theannualallocationof
quantities anddecisions onemergencyaid,derivedproductsandtransport
problems;
c)provisionshouldbemadeforclosecooperation betweentheMember .States
andtheCommissionwithinaCommittee onfoodaid;
(1)COM(78)204final
(2)414/78,31.10.78.
(3)R/2820/78,6.11.78.

4. Thediscussion heldintheCouncilandParliament onthe
Commission'splanrevealedthatthesetwoinstitutions werenotcontent
withimprovedmanagementproceduresbutwantedtheframeworkregulationto
includesubstantiveclauseswithcouldmakefoodaidoneofthepillars
oftheCommunity'sdevelopment cooperationpolicy.
Thethreeinstitutions areoftheopinionthatinorderto
bringaboutthismajorimprovement,ofwhichtheCommissionapprovesand
whichithas,furthermore,recommendedformanyyears,thelegalbasisfor
foodaidshouldnolongerbeconstituted onlybyArticle43oftheEEC
Treaty,whichlaysthefoundationsofthecommonagricultural policy,but
shouldrefertoArticle235oftheEECTreatyinviewofthenewcontentit
willgivetofoodaid.
TheCommission,foritspart,considersthatsinceitisno
longerintendedmerelytoimprovethemanangementproceduresforfoodaid,
butalsotoformulatearealfoodaidpolicy-acompositelegalbasisshould
beadoptedmadeupofArticles43and235oftncf-"ECTreaty-Article43to
stressthattheproductsallocatedwillbeprocureu *-;ivonthe
CommunitymarketandArticle235toestablishfoodaidTii.ii>..anew,
independentpolicy. –...
Withthiscompositelegalbasis,itwillgenerallybepossible,
forthegoodssuppliedtobeprocuredinaccordancewiththemarketorgani­
zationrulesinforce(referencetoArticle43)butitwillalsomean^inappropriatecases,such"asnon-availability ofsupplieson+ ""
marketoremergencies,thenecessarygoodscanbeprocurp:L_t-ciier*means,
notablypurchasesfromotherdevelopingcount---;.--
5.Giventhisprospectofaqualitativeimprovementinfoodaid,itisaboveallessentialthattheCommunityshouldbeabletoinvolveitselfinannualandmultiannualdevelopmentprojectsandparti –directlyintheirimplementation .Thepossibilityofgrantingtooei,u,to'..developingcountriesforthepurposeofbuildingupstocksofcereal-isanotherimportantmeasuretobeimplementedunderarealfoo^aiP'
andcouldbringaboutlastingimprovementsinthestandardofnuurio^
therecipients.Boththesemethodsofassistancehavethesameobjective.
foodaidmust,inappropriatecases,providethemeansof^correctingtedeteriorating foodsituationinthedevelopingcountriesinthemedium
term.Thiscanonlybedoneeffectivelyinamultiannualframework.
6mWithregardtothetransferofanumberofmanagementpowers
fromtheCounciltotheCommission,theCommissionconsidersthatitsinitialproposalrepresentsthebestwayofmeetingthebasic_requirements
ofincreasingtheeffectiveness andimprovingtheimplementation oftheaia.
ThisapproachhasmoreoverbeenapprovedbyParliamentandtheCourto
Auditors.
Inthiscontext,itisimportantthattheCouncilshouldcontinue
totakethemajordecisionswhichitisrequiredtotakebyqualified
majority.

7.Asforthemethodofoperation,thevotingsystemandthe
powersofth®ccmmittgaenfoodaid,th®Cammiasiefi'•Initialproposalti®»
in,asindicatedin3.above,withanumberofsimilarproposalsand
constitutes acompromisebetweenthepositionadoptedbytheCouncil,
whichwouldliketoestablishforitselfanautomaticrightofappeal
Whichcouldbeinvokedsystematically intheeventofdisagreement between
■'theCommissionandthecommittee,andthepositionadoptedbyParliament,.
wjiichrecommendsthatonlyanadvisorycommitteebesetup.
8.Lastly,thenewcontentthatwillthusbegiventoCommunity
foodaidmustalsobetranslatedintobudgetaryterms.(1)Expenditure on
foodaidhasuptonowbeenchargedagainsttwoheadings:aportionofthe
expenditure consideredtorepresenttherefundsonexportsoftheproduct
delivered,waschargedagainsttheGuaranteeSectionoftheEAGGF(Title6of
theBudget)whiletheotherportion,consideredtorepresentthe"world
price"ofthegoodssuppliedtodevelopingcountries,wasincludedin
Title9oftheBudgetunderChapter92:"Foodaid".Thisbreakdownofthe,
expenditure,whichispurelyartificialsincetheCommunityfinancesall
Communityfoodaidexpenditure onthebasisoftheinternalpricesfixed
bytheCouncilfor.eachfarmyear,causedadministrative complications at
allstagesoftheimplementation oftheaid.Sincefoodaidconstitutes a
completelyseparatebranchoftheCommunity'scooperationpolicy,itis
importantthatthecorresponding expenditure shouldbepresentedcoherently
intheBudget:foodaidappropriations mustthereforebegroupedtogether
accordingtothenatureoftheoperationsfinanced,andbechargedagainst
Title9:("Cooperation withdevelopingcountriesandothernon-member
countries")oftheGeneralBudgetoftheEuropeanCommunities .(2)
CONCLUSION
Onthebasisoftheforegoing,andinthelightofthediscussions
heldwithintheCouncilandtheopinionsdeliveredbythe.European -Parliament
andtheCourtofAuditors,theCommissionissubmittingtotheCouncilthe
amendedproposalsforCouncilregulations containedintheAnnex.
Themainaimoftheamendments madetotheCommission'sinitial
proposal(passagesunderlinedintheannexedtexts)istoinsertinthe
frameworkregulationthelegalandsubstantive elementsrequiredtotransform
foodaidintoanindependentpolicyaimed.-.at>developmentobjectives.
ItisthereforeproposedthattheCounciladopttheamendedacts
annexedhereto,sothatthenewprocedures canalreadybeusedfordrawing
upthefoodaidprogrammesfor1979.
(1)Aproposaltothiseffectwassubmittedasearlyas15July1977
(COM(77)333final).Thisproposal,whichhadParliament'sapproval,
wasnotadoptedbytheCouncil.
(2)However,asitisnecessarytoknowthevalueofthefoodaidatthe
worldprice(whichrepresentsthenetflowofforeigncurrencytothe
recipientcountriesororganizations )andtocommunicatethisinforma­
tiontotherelevantinternational authorities,thevaluewillbe
indicatedinthebudgetcommentaries .

ANNEXI.
ProposalforaCouncilRegulation
onthemanagementoffoodaid
THECOUNCILOFTHEEUROPEANCOMMUNITIES,
HavingregardtotheTreatyestablishing theEuropeanEconomic
Community,andinparticularArticles43and235thereof
HavingregardtotheproposalfromtheCommission-
HavingregardtotheopinionoftheEuropeanParliament,

Whereasfoodaidisprovidedonhumanitari anproundsandconstitutesone
oftheessentialaspectsoftheCommunity'spolicyofcooperation with
thedevelopingcountries;
Whereasfoodaidshouldbemadeinto,arealinstrumentoftheCommuni-
ty'spolicyofcooperation withthedevelopingcountries,therebyena¬
blingtheCommunitytoparticipatefullyinmultiannual development
projects;
Whereasitisnecessary,tothatend.,thattheCommunityshouldbeable
toprovidesteady-flows ofaidandbeinapositiontoundertaketo
supplytothedevelopingcountriesminimumquantitiesofproductsunder
amultiannual programme;
Whereas,inordertoensurethatfoodaidismanagedmoreefficientlyand
ingreaterconformitywiththeinterests andrequirementsoftherecipient
countries,thedecision-making andimplementing proceduresshouldbe
improved;
Whereas,inordertofacilitatetheapplication ofcertainofthe
measuresenvisaged,provisionshouldbemadeforclosecooperation between
theMemberStatesandtheCommissionwithinacommitteeonfoodaid;
Whereastheseprocedures andthesubsequentdecisionstakeaccountof
thedivisionofresponsabi Iitiesbetweentheinstitutions aslaiddown
intheTreaty,andinparticularArticle205thereof;
Whereasthisregulationdoesnotaffecttheproceduresprovidedforin
thecontextofthecommonmarketorganizations orCouncilRegulation
(EEC)N°2681/74of21October1974onCommunityfinancingofexpendi­
tureincurredinrespectofthesupplyofagricultural productsasfood
aid(1),
HASADOPTEDTHEREGULATION :
TITLEI:FOODAID-OBJECTIVES ANDGENERALGUIDELINES
Article 1
Underitscooperationpolicy,theCommunityshallcarryoutfoodaid
operations.
Article2
1.Thesefoodaidoperationsshallhavethefollowingobjectives in
particular:
-toraisethestandardofnutritionoftherecipients,
-tohelpinemergencies,
-tocontributetowardstheeconomicdevelopment oftherecipient
countries .
(1)0JN°L288,25.10.1974,p.1.

-3-
2.Foodaidshallbeallocatedprimarilyonthebasisofanobjective
evaluation ofthereal,needsjustifyingtheaid.Tothatend,the
followingthreecriteriashallinparticularbe takenintoaccount:
"basicfoodneeds,
-percapitaincome,■
-thebalance-of-paymentssituation.
3-Thegrantingoffoodaidshall,,ifnecessary ,,beconditional onthe
implementation ofannualormultiannual developmentprojects:where
appropriate,theaidmaycontributedirectlytotheimplementation of
suchprojects.Complementarity maybeensuredthroughtheuseof
counterpart fundswheretheproductssuppliedbytheCommunityasaid
areintendedforsale.
4.Foodaidmaybegrantedtoenabletherecipientstobuildupstocksof
cereaIs.
5.TheCommunity mayfinancethebuildingupofstocksoffoodstuffs in
ordertocontributetowardstheimplementation ofemergencyactionas'
providedforinArticle6.
Article3
1.GoodssuppliedasfoodaidshallbeprocuredontheCommunitymarket.
2.However,i.nanemergencyoriftheproductstobesuppliedasaidare
notavailableontheCommunitymarket,theymaybepurchasedonthe*
marketsofdevelopingcountrieswhichexportthem.Asalastresort,
theproductsmaybepurchased onthemarketsofotherexportingcountries.
^■Theproductsshallbeprocuredinaccordancewiththerulesandprocedu-'
reslaiddownunderthecommonmarketorganizations .
4.Withtheagreementoftherecipients,limitedquantitiesofderived
products,inparticular..cereal-based products,maybesuppliedas
Communityfoodaid.
TITLEII:PROCEDURES FORIMPLEMENTING FOODAIDOPERATIONS
Article4
Inthefieldoffoodaid,,theCouncil,actingbyaqualifiedmajorityon
aproposalfromtheCommission,andafterobtainingtheopinionoftheEuropean
Parliament,shall
-definethebasicproductstobesuppliedasaid;
-determineby31Octobereachyear,withintheframeworkl'3i'ddown
byArticle2,thegeneralguidelineswhichwillgoverntheaidforthe
followingyear;
-decideonthetotalquantitiesofeachproductonanannualandmuI'ti-
annualbasisandfixthepercentageofthetotalthatcanbechannelled
throughinternational organizations ;

,rapportionthecerealsaidprovidedforundertheFoodAidConventionasbetween
Communityandnationaloperationsandfixthetotalamou7it""ofCormnuTiTt'y
cerealsaidnotcoveredbytheConvention .
Article5
TheCommission ,,followingconsultations withthecommitteeprovidedforin
Articleshalltakedecisionsinaccordancewiththeprocedurelaiddown
inArticle_8on:
-theannualandmultiannualdistribution ofthequantitiesavailableamong
countriesandorganizations ,andthevolumeofthereserve;
-thederivedproductstobesuppliedasfoodaid;
-theapplication ofArticle2(3)(4)and(5);
-transportation oftheproducts.
Article6
TheCommission,inaccordancewiththeCounciIdecisionsreferredtoinArticle
4andofthedecisionstakenunderArticle_5,shalldecideon:
a)emergencyactionforcountriesfacingseriousdifficulties
asaresultofnaturaldisastersorcomparableabnormalcircumstances ;
b)theconditionsgoverningthesupplyofaidand,in
particular,onthegeneralconditionsapplicabletorecipients.
Forthepurposesofa)"emergency"shallmeananunforeseeable situation
inwhichfamineoradangeroffamineposesaseriousthreattothelives
andhealthofthepopulation .Thevolumeofaidwhichitshallbedecided
tosupplyineachparticular caseshallbelimitedtothequantitiesthat
thepeopleaffectedrequireinordertocopewiththesituationfora
periodnotexceedingthreemonths.
Article7
1.Thereisherebyestablished aCommitteeonFoodAid,chairedbyarepresentative
oftheCommissionandcomposedofrepresentatives oftheMemberSta.tes.
Thesecretariat oftheCommitteeshallbeprovidedbytheCommission.
2.WhererecourseishadtotheproceduredefinedinArticle8,thevotes
oftheMemberStatesshallbeweightedassetoutinArticle148(2)ofthe
Treaty.TheChairmanshallnotvote.
3.TheCommitteeshalldrawupitsrulesofprocedure.

Artide8
2.WhererecourseishadtotheproceduredefinedinthisArticle,the ;
CommitteeshallbedulyinformedbyitsChairman,eitheronthelatter's
owninitiativeorattherequestofarepresentative ofaMemberState.
2.TheCommissionrepresentat iveshallsubmitdraftsofdecisionstobe
taken.TheCommitteeshalldeliveritsopiniononthesedraftswithin
atimelimitwhichmaybefixedbytheChairmanaccordingtotheurgency
ofthemattersunderexamination .Itshallactbyamajorityof41votes.
3.TheCommissionshalltakedecisionswhichareimmediatelyapplicable.
If,however,suchdecisionsarenotinaccordancewiththeopiniondelivered
bytheCommittee,theyshallbecommunicated totheCouncilbytheCommission
forthwith.Inthatevent,theCommissionshallpostpone,fornotmorethan
twomonthsfollowingthedateofsaidcommunication ,theapplication ofthe
decisionstakenbyit.TheCouncil,actingbyaqualifiedmajority,may
takeadifferentdecisionwithin ""twomonths.
Article9
FollowingarequestbytheChairmanorarepresentative ofaMernoerState,
thecoordination ofCommunityandnationalfoodaidschemesshallbe
examinedbytheCommittee.Tothisend,theMemberStatesshallprovide
theCommission withinformation aboutnationalschemes.
Article10
TheCommitteemayexamineanyothermatterconcerningfoodaidraisedby
itsChairman,eitheronthelatter'sowninitiativeorattherequestof
arepresentative ofaMemberState. .
Article11
TheEuropeanParliamentshallbeinformedofthemanagementoffoodaid
bythecommunication ofthedecisionsreferredtoinArticlestoj6
immediately upontheiradoptionandbytheannualpresentation ofprogress
reportsontheimplementation ofthevariousoperationsfortherelevant
financialyears.
ThedecisionsreferredtoinArticles_5and_6andthereportsmentioned
aboveshallbecommunicated totheCouncilatthesametime.
Article12
ThisRegulationshallenterintoforceonthethirddayfollowingits
publication intheOfficialJournaloftheEuropeanCommunities *

ThisRegulationshallbebindinginitsentiretyanddirectlyapplicable
inallMemberStates. '
Doneat
FortheCounciI
ThePresident

ANNEXII.
Proposalfora
COUNCILREGULATION (EEC)
amendingRegulations (EEC)Nos2052/69and
1703/72,Decision72/335/EECandRegulation
(EEC)No2681/74onCommunityfinancingof
expenditures incurredinrespectofthesupply
ofagricultural productsasfoodaid,and
repealingDecision72/335/EEC.
THECOUNCILOFTHEEUROPEAN COMMUNITIES
HavingregardtotheTreatyestablishing theEuropean
EconomicCommunity,andinparticularArticles43,209and235thereof,
HavingregardtotheproposalfromtheCommission,
HavingregardtotheopinionoftheEuropeanParliament,
HavingregardtotheopinionoftheCourtofAuditors,
WhereasfoodaidshouldbemadeintoarealinstrumentoftheCommunity's
policyofcooperation withthedevelopingcountries;
Whereasfood-aidappropriations shouldbepresentedintheBudgetinaway
thatisconsistentwiththenatureoftheoperationsfinancedandmeetsthe
needforgreaterbudgetarytransparency andbettermananqement oftheaid;
WhereasthefullcostofCommunityfood-aidoperationsshouldconsequently
bechargedtoTitle9("Cooperation withdevelopingcountriesandother
non-membercountries")oftheGeneralBudgetoftheEuropeanCommunities ;
Whereascertainfinancialprovisions needtobeadaptedtothenewRegu­
lationonthemanagement offoodaid,inparticular thefollowing :
-CouncilRegulation (EEC)N°2052/69of17Ocotober1969onthe
Communityfinancingofexpenditure arisingfromtheimplemen¬
tationoftheFoodAidConvention (1);
(1)0JN°L263,21.10.1969,p.6.

-CouncilRegulation (EEC)N°1703/72of3August1972amending
Regulation (EEC)N°2052/69ontheCommunityfinancingofexpenditure
arisingfromtheimplementation oftheFoodAidConventionof1967and
layingdownrulesfortheCommunityfinancingofexpenditurearisingfrom
theimplementation oftheFoodAidConventionof1967andlayingdown
rulesfortheCommunityfinancingofexpenditurearisingfromtheimple­
mentationoftheFoodAidConvention 1971(2);
-CouncilRegulation (EEC)N°2681/74of21October1974on'
Communityfinancingofexpenditure incurredinrespectofthesupplyof
agricultural productsasfoodaid<3);
Whereasit"1snecessary,forthesakeofclarity,toincorporate inthis
RegulationtheprovisionsofCouncilDecision72/335/EECof3August1972(4)
andtorepealthatDecision,
HASADOPTEDTHISREGULATION :
Article 1
Regulation (EEC)N°2052/69isamendedasfollows:
1. Article 1(1)isreplacedbythefollowing :
"Inrespectofnationaltransactions carriedoutinimplementation ofthe
FoodAidConvention,thatpartoftheexpenditure corresponding tothe
refundonexportstothirdcountries,lesscostsincurredbeyondtheport
ofembarkation stage,shallbeeligibleforfinancingbytheGuarantee
SectionoftheEuropeanAgricultural GuidanceandGuarantee Fund".
2. InArticle4(1),thefirstsubparagraph uptotheendof
point(a)isamendedtoreadasfollows:
"1.ExpenditurerelatingtoCommunitytransactions arisingfromthe
implementation oftheFoodAidConventionshallbefinancedbytheCommu­
nity;thesaidexpenditure shallbechargedinitsentiretytoTitle9
("Cooperation withdevelopingcountriesandothernon-membercountries '')
oftheGeneralBudgetoftheEuropeanCommunities,and,inpursuance
oftheDecisionstakenbytheCommunityinstitutions ,shallinclude:
a)thevalueofthegoodsattheportofembarkation."
Article2
Regulation (EEC)N°1703/72isamendedasfollows:
(2)0JN°L180,8.8.1972,p.1.
(3)0JN°L288,25.10.1974,p.1.
(4)0JN°L227,5.10.1972,p.11.

1. ThefirstsentenceofArticle6(1)isreplacedbythe
foLlowing:
"FornationalmeasurestakenundertheFoodAidConvention of1971for
whichproductsprocuredintheCommunitywereused,theGuaranteeSection
oftheFundshallfinancethatpartoftheexpenditure whichcorresponds
totherefundonexportstothirdcountries,lesscostsincurredbeyond
theportofembarkation stage."
2. Article8(1?uptotheendofpoint(b)isamendedtoread
asfollows :
"ForCommunitymeasuresundertheFo::?AidConventionof1971taken ;
pursuanttotheDecisionsadoptedbytheinstitutions oftheCommunity :
a)TheCommunityshallprovidefinancetothevalue,attheportof
embarkationorequivalentstage,ofthecerealsortherice,whether
inthenaturalstateorprocessed,or,wherethegoodsareprocured
ontheworldmarket,tothevalueobtainedbyaddingtothepurchase
priceanynecessaryexpenditure relatingthereto.
b)Thefollowingfurtherexpenditure maybewhollyorpartlyfinanced
bytheCommunity :
-forwardingcoststothefrontierofthecountryofdestination and,
ifnecessary,tothedestinationitself;
-distribution costs,'wherethegoodsaredistributedthrougha
specialized agency".
3. Article10(1)isreplacedbythefollowing :
"1.TheCommissionshalleffecttheexpenditurereferredtoinArticle
8(1)(b)incaseswhereanagreementconcludedbytheCommunityprovides,
inrespectofthatexpenditure,forrepaymentonthebasisofsupporting
documentsorforthepaymentofalump-sumcontribution eithertothe
intermediary agency,or,whereexceptional circumstances sojustify,tothe
beneficiary country.TheCommission maymakeadvancesforsuchexpenditure "
Article3
FormeasuresundertheFoodAidConventionof1971takenpursuantto
theDecisionsadoptedbytheinstitutions oftheCommunity,inaddition
totheexpenditurereferredtoinArticle6ofCouncilRegulation (EEC)
N°1703/72of3August1972amendingRegulation (EEC)N°2052/69onthe
Communityfinancingofexpenditurearisingfromtheimplementation ofthe
'FoodAidConventionof1967andlayingdownrulesfortheCommunityfinan­
cingofexpenditurearisingfromtheimplementation oftheFoodAid
Conventionof1971(1),provisionmaybemade,inexceptional orurgent
cases,forCommunityfinancing,ofallorpart,ofthefollowingexpen­
diture:
(1)OJN°L40,8.8.1977,p.1.

-4-
7thevalue,atthefoborequivalentstage,ofcerealsorricein'the
formofgoodsnotincludedinAnnexIItotheTreaty;
-forwardingcoststothefrontierofthecountryofdestination and,if
necessary,tothedestinationitself,
-distribution costs,wherethegoodsaredistributed throughaspecialized
•agency.
Insuchcases,Article10C1)ofRegulation (EEC)N°1703/72shallapply
mutatismutandisandtheexpenditure shallbefinancedfromthefood-
aidappropriations ofthebudgetoftheEuropeanCommunities .
Article4
CouncilDecision72/335/EECofiAugust1972isherebyrepealed.
Article5
Regulation (EEC)N°2681/74isamendedasfollows:
1. ThefollowingparagraphisaddedtoArticle 1:
"Theexpenditurereferredtointheprecedingparagraphshallbechargedinits
entiretytoTiTl~e~9("Cooperationwithdevelopingcountriesandothernon^1
membercountries")oftheGeneralBuogetoftheEuropeanCommunities and
shallbecoveredbyasinglechapter(Chapteron"Foodaid").
2. Article2isherebyrepealed.
Article6
ThisRegulationshallenterintoforceonthesamedayas
CouncilRegulation (EEC)N° of onthemanagement
offoodaid(1).
TheprovisionsofArticles1(2)and5(1)'shallapplywith ■
effectfromthefinancial ,year1980.
ThisRegulationshallbebindinginitsentiretyand
directlyapplicableinallMemberStates.
Doneat
FortheCounciI
ThePresident
(1)0JN0

FINANCIAL ANNEX
Thispropsalonmanagement proceduresforfoodaiddoes
notinvolveanyneworadditional expenditure anditsimplementation will
havenoeffectonthesizeoftheappropriations earmarkedforfoodaid..
!