ARCHIVES HISTORIQUES
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DOCUMENTS "COM"
COM(73)1125
Vol.1973/0202

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THHIH
COM(73)1125 final
Brussels .6July 1973
RECOMMENDATION FORA
COUNCILDECISION
ontheconclusion ofanagreement "between theEuropean
Economic Community andtheEastern Republic ofUruguay
forthesupply ofcommon wheat asfood aid
(submitted totheCouncil "bytheCommission )
COM(73 )1125 final

THECOUNCILOPTHEEUROPEANCOMUIJITIES ,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
andinparticularArticles113,H4and228thereof;
HavingregardtotheRecommendation fromtheCommission ;
WhereastheEuropeanEconomicCommunityhasdepositedaDeclarationforpro­
visionalapplicationofthe1971GoodAidConvention;whereasthatConvention
hasbeenapplicablesince1July19715
WhereastheEasternRepublicofUruguay,byitsletterof7Deoember1972,
hasrequestedfoodaid;
WhereasinviewofthecerealsupplysituationintheEasternRepublicof
Uruguaythatcountryshouldbeaccorded,bywayofgift,10000metrictons
ofcommonwheatundertheCommunityPoodAidProgrammefor1972/19731
DECIDES:
Article1
OnbehalfoftheEuropeanEconomicCommunityanagreement,thetextwhereof
isannexedhereto,shallbeconcludedbetweentheEuropeanEconomicCommunity
andtheEasternRepublicofUruguayforthesupplyofcommonwheatasfoodaid.
Article2
ThePresidentoftheCouncilisherebyauthorisedtodesignatethosewhoare
tosigntheagreementandtoconferonthemtherequisitepowerstobindthe
Community.
DoneatBrussels, 19 FortheCouncil
ThePresident

AGREEMEET
BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AM )
THE EASTERU REPUBLIC OPURUGUAY
OHTHE SUPPLY OPPOOD AID
UTTHE FORM OPCOMMON WHEAT

-1-
THECOUNCILOPTHEEUROPEANCOMMUNITIES ,
ontheonepart.
THEGOVERNMENT OPTHEEASTERNREPUBLICOPURUGUAY,
ontheotherpart,
HAVEDECIDEDtoconludethisAgreementandtothisendhavedesignatedas
theirplenipotentiaries ?
THECOUNCILOPTHEEUROPEANCOMMUNITIES :
THEGOVERNMENT OPTHEEASTERNREPUBLIC OPURUGUAY
WHOHAVEAGREEDASFOLLOWS:
•*•/•♦

ARTICLEI
AsapartofitsFoodAidProgramme(cereals)for1972/1973»theEuropeanEconomic
CommunityshallsupplytheEasternRepublicofUruguay,hereinafterreferredto
asthe"recipientcountry",with10000metrictonsofcommonwheat.
ARTICLEII'■
Deliverieswillbemadeinbulk,fobtoCommunityports.
ARTICLEIII •■
Theobligations andresponsibilities oftheEuropeanEconomicCommunityand
oftherecipientcountryrelatingtodeliveryandthetakingofdeliveryare
definedintheAnnex,whichformsanintegralpartofthisAgreement.
ARTICLEIV
Therecipientcountryundertakestomakeallnecessaryarrangements forthe
transportandinsuranceoftheproductfromportsofshipmenttoplacesof
destination .
Itundertakestoexercisethegreatestpossiblecaretoensurethatthe
tenderingarrangements forthetransportbyseaarenotprejudicialtothe
free,playoffaircompetition.Anyproblemsarisinginthisconnectionshall
bethesubjectofconsultations underArticleIXofthepresentAgreement.
ARTICLEV
Therecipientcountryundertakestousetheproductreceivedasaidforpur­
posesofconsumption andtoapply,forthesaleoftheproductonitsmarket,
thepricesnormallychargedonthatmarketforproductsofcomparablequality.•

Theproceeds from this sale ,less thecost ofseatransport ,insurance andthe
normal cost ofselling theproduct ontherecipient country ^market ,will
bepaid into aspecial account andallocated tothefinancing ofoneormore
development schemes which have already "been proposed bytherecipient country
andapproved bytheEuropean Economic Community .
ARTICLE VI
TheContracting Parties undertake toimplement this Agreement insuch awayasto
avoid anyprejudice tothenormal structure ofdomestic production andinterna­
tional trade .Tothis endthey shall take anymeasures required toensure that
aidsupplies areinaddition to,anddonotreplace ,business transactions which
might reasonably be *Aheabsence ofsuch supplies * •v^.riiea .••r.e
ARTICLE VII
Therecipient country shall take anymeasures required toprevent !
(i)There-export oftheproduct received asaidandofproducts andby-products
resulting from such supplies j
(ii)The export ,commercially orotherwise ,within sixmonths ofthelast delivery ,
either oftheproduct obtained locally andofthesame nature astheproduct
received asaidorofanyproducts orby-products resulting from it.
ARTICLE VIII
Therecipient country undertakes toinform theEuropean Economic Community how
this Agreement isbeing implemented .Tothis enditshall provide theCommission
oftheEuropean Communities with thefollowing information :

-4-
(i)Motlaterthanthirtydaysaftertheunloadingofeachcargo*ports'
anddatesofarrivalofthevessel|nature,quantityandqualityof
theproductsunloaded|dateonwhichunloadingwascompletedj
(ii)Everythreemonthsuntilthequantitiesreceivedasaidhave"been
fullyused:quantitiessold,howtheyhave"beensold,sellingprices?
normalsellingcostsontherecipientcountry'smarketj
(iii)On15Januaryeveryyearuntilthespecialaccounthasbeenfullyused:
(a)Stateofthisaccount(incomingsandoutgoings)on31December
oftheprocedingyearj
(b)Progressachievedintheprojectorprojects,withanindication
ofthetotalamountoffinancingundertakenatthatstage.
ARTICLEIX
Attherequestofeitherofthem,theContractingPartiesshallconsulteach
otheronanyquestionsconcerningtheimplementation ofthisAgreement.
ARTICLEX
ThisAgreementisdrawnupinduplicateintheDanish,Dutch,English,French,
German,ItalianandSpanishlanguages,eachofthesetextsbeingequallyauthentic.

ANNEXTOARTICLEIIIOPTHEAGREEMENT
Article1
DeliveryshallbeeffectedandrisksshallpassfromtheEuropeanEconomic
Communitytotherecipientcountryatthemomentatwhichthegoodshave
"beenplacedintheship'sholdattheportofshipment.
Therecipientcountryshallbearallcostssubsequenttodeliveryofthegoods,
includingcostsofstowageand,whereappropriate,oftrimmingandbagging.
Anydemurragecostsordispatchattheportofshipmentshallbeachargeon
orforthebenefitoftheEuropeanEconomicCommunityandshallbedetermined
beforethovesselsails.Theratesanddetailedarrangements relatingthereto
laiddowninthecontractbetweentherecipientcountryandthecarriermust
havebeenagreeduponinadvancebytherecipientcountryandtheauthorised
agentoftheEuropeanEconomicCommunityreferredtoinArticle9«
Article2
TheEuropeanEconomicCommunityshallnotifytherecipientcountryingood
timeoftheportorportsofshipment,thequantitiestobedeliverdateach-
port,theperiodwithinwhiohloadingmustbegin,andthedailyloadingrate.
TheEuropeanEconomicCommunitymustbepreparedtoloadthegoodsonthedate
resultingfromtheinstructionsinArticle8,.whereont,hevesselshouldbe
readyforloading.
Article'4
Ondeliveryofthegoods,aloteranceof57°lessthanthequantitytobesupplied
inaccordancewithArticle1oftheAgreementispermitted.

Article5
Oncethegoodsareonboardthevessel,theEuropeanEconomicCommunitysha.ll
notifytherecipientcountryofthedateofloading,andthequantityand
qualityofthegoodsasrecordedonloading.
Article6
TherecipientcountryshallsupplytheEuropeanEconomicCommunity,withinthe
periodreferredtoinArticle2,v:ith.avesselofdimensionscorresponding to
thenormalloadingpotentialoftheportofshipment.
Shoulditproveimpossibleforthevesseltobeginloadingwithintheperiod
referredtoinArticle2andshouldtherecipientcountrynothavenotified
theEuropeanEconomicCommunityofthisfactinwritingatthelatestbythe
dateonwhichthevesselshouldbereadyforloadinginaccordancewithArticle8,
thegoodsshallbeatthedisposaloftheEuropeanEconomicCommunity.
Whateverthecircumstances ,thegoodsshallbeholdattheexpense,riskand
periloftherecipientcountry.
Article7
Shouldtherecipientcountryfailtoprovideavesselofsuitabletonnageor
ifthequantitymadeavailableforloadingonavesselofsuitabletonnage
cannotbeputonboardinitsentiretybecauseofcircumstances beyondthe
controloftheEuropeanEconomicCommunity,thebalanceshallbeloadedonto
thenextvesselundertheconditionslaiddowninthisannex.
Inthisevent,untilthedateofloadingofthisbalanceoruntiltherecipient
countrygivesnoticeinwritingthatitgivesupthisbalance,thegoodsshallbe
heldattheexpense,riskandperiloftherecipientcountry.
TherecipientcountrymustnotifytheEuropeanEconomicCommunitywithinaperiod
ofamaximumof30daysfromthebeginningofloadingoftheshipmenttowhich
thesegoodsshouldhavebelonged,ofthedateonwhichloadingofthisbalance
is.duetobeginorofitsrenunciation ofthisbalance.

-3-
Ifthisobligationisnotrespected,theEuropeanEconomicCommunitymayconsider
thatithasdeschargeditscommitment -totherecipientcountryunderArticle1
oftheAgreement.
Article8
TherecipientcountryshallnamefortheEuropeanEconomicCommunitythevessel
thatistoshipthegoodsatleast10cleardayspriortotheestimateddate
ofarrivalofthevesselinpartor,wherepossible20cleardayspriorto
thisdate,andshallatthesametimeindicatehowsoonafterthatdatethe
vesselwillbereadyforloading.
Therecipientcountryshallinsertinthecharterpartyaclauserequiring
thecaptaintoinformtheEuropeanEconomicCommunityatleast72hoursin
advanceofthevesselTsestimateddataofarrivalinport.
Article9
Toimplementtheprovisionsofthisannex,theEuroperjiEconomicCommunity
shallappointanauthorisedagent,whosenameandaddressshallbemadeknown
ingoodtimetotherecipientcountry.
Therecipientcountryshallnominateareceivingagentineachportofshipment,
whosenameandaddressshallbemadeknowntotheEuropeanEconomicCommunity
beforetheAgreementisimplemented .