ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(75)248
Vol.1975/0089

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(75)248final
Brussels,4June1975
RECOMMENDATION FORA
COUNCILDECISION
ontheconclusionoftheAgreementamendingtheAgreementof
18December1974betweenthe
EuropeanEconomicCommunityand.theRepublicofChad
(submittedtotheCouncilbytheCommission)
COMC75)248final

Commission communication tothe Council
Under the1973 /74food ,aidprogramme fortheSahel countries ,
4
theCommunity haddecided togrant 10000metric tons ofcereals
totheRepublic ofChad .
These products were tobedistributed free ofcharge ,andthe
transportation costs tothedistribution centres were payable
bytheCommunity .
Because ofcongestion attheports ofunloading and ofother
shipments inprogress ^,delivery ofthese amounts wasdelayed
attherequest oftheChad authorities ,andwasmade inseveral
instalments between October 1974 andJanuary 1975 *These cereals
were distributed inthedeficit areas with theexception of
25500metric tons which arecurrently held instock at
N'Djamena pending transportation tothese areas .Itshould be
noted inthis connection that these areas were better supplied
this year because ofalarger millet andsorghum crop ,ofwhich
approximately 10000metric tons were bought intheSouth and
transported totheNorth aspart ofanoperation organized with
the assistance ofthe WFP .
There areincreased difficulties ,ontheother hand ,insupplying
theareas with imported cereals ,particularly wheat ,because of
chronic transport difficulties between Nigeria orCameroon and
Chad .Asaresult ,although orders were pl'aced with foreign
suppliers several months ago ,stocks offlour will soon beexhausted
Inparticular 6000metric tons from theEECunder the1972/73
programme .
2Including 3600metric tons ofwheat ,570metric tons ofmaize
and 1250metric tons ofsorghum .

mâm
Forthese reasons theChad authorities have requested authorization
from theCommunity tosell the3600metric tons ofwheat from the
EECatpresent held instock inN'Djamena ,instead ofdistributing
them free ofcharge asprovided forinthesupply agreement ,in
order toguarantee normal supplies offlour ontheChad market .It
should hepointed outthat General Malloum ,President ofthe
Conseil Superieur Militaire ,personally approached theCommission 's
Delegate inChad tostress theimportance which heattached tothis
I
request xnview ofthe circumstances described above .
TheChad authorities proposed thefollowing arrangements forthis
operation :
I
Thewheat will besold attheofficial prices ruling inChad ,
i.e. CFAF 50/Kg.Theproceeds areexpected toamount toCPAP
150million (approximately 530000u.a.),which will beheld in
,aspecial blocked account andused foradevelopment project ,the
details ofwhich will beforwarded tothe Community inthevery
near future .
Inview oftheparticularly difficult situation with which theChad
authorities arefaoed ,andasitisunderstood that food supplies
from other sources areguaranteed forthose sections ofthe
population affected bythecrisis ,theCommission oonsiders that
theCommunity should grant this request .
.I
!
This operation would have theadded advantage that theCommunity 's
responsibility would notextend beyond N'Djamena ,thus avoiding
additional storage andtransport costs inthecountry .
;
Accordingly ,theCommission proposes that theCouncil :
-authorize the sale of 3600metric tons ofwheat from the
10000metric tons ofcereals delivered totheRepublic of
l
Chad under the1973/74food aidprogramme (cereals );
-amend tothiseffect ,byanexchange ofletters ^",thesupply
agreement signed with that country ;
-authorize theadvance implementation ofthis operation .
The draft ofwhich isannexed .

Reccaoendatien fera
OÔUNeïLDBSïSIQN
ontheconclusionoftheAgreementamendingtheAgreementof18December
1974betweentheEuropeanEconomicCommunityandtheRepublicofChad.
THECOUNCILOPTHEEUROPEANCOMMUNITIES ,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
Havingregardtotherecommendation fromtheCommission ;
WhereastheEuropeanEconomicCommunityhasconcludedthesecondPoodAid
Convention (l); '
WhereasanAgreement(2)betweentheEuropeanEconomicCommunityandthe
RepublicofChadonthesupplyof10000metrictonsofcerealsforfree.
distribution toneedysectionsofpopulationwassignedon18December1974?
WhereastheRepublicofChadhasrequestedthat,inviewofthedifficulties
inthesupplysituationofwheatflourinChad,the3600metrictonsofwheat
suppliedaspartofthisgiftmaybesold;
WhereasinordertograntthisrequestcertainArticlesoftheAgreementof
18December1974mustbeamended,
HASDECIDEDASFOLLOWS s
TheAgreementintheformofanexchangeoflettersbetweentheEuropean
EconomicCommunityandtheRepublicofChad,thetextofwhichisannexed
tothisDecision,isherebyconcludedonbehalfoftheCommunity.
ThePresidentoftheCouncilisherebyauthorizedtodesignatethepersons
empoweredtosigntheAgreementandtoconferonthemthepowersrequired
tobindtheCommunity.andinparticularArticles113,114and228thereof;
Article 1
Article2
DoneatBrussels,PortheCouncil
ThePrésident
iOJNo.L219,9.8.1974,p.24
OJNo.L62,7.3.1975,p.28

ÂÔRSEMMT
/
inform ofanexchange ofletters between theEuropean Economic Community
andtheRepublic ofChad modifying certain articles intheAgreement reached .
A.Letter from theEuropean Economic Community
Sir ,
With reference totheAgreement of18December 1974 between theEuropean
Economic Community andtheRepublic ofChad onthesupply of10000metric
tons ofcereals forfree distribution toneedy sections ofpopulation and
therequest bytheRepublic ofChad that inview ofthedifficulties inthe
supply situation ofwheat flour inChad onthe local market theEuropean
Economic Community authorize thesale of3600metric tons ofwheat included
inthis gift ,Ihave thehonour topropose toyouthefollowing amendments to
theabovementioned Agreement :
1.Thefollowirg shall besubstituted forArticle V:
Thecountry ofdestination undertakes tousetheproducts received asaidfor
purposes ofconsumption andtodistribute thera free topeople inneed ,with
theexception of3600metric tons ofsoft wheat which maybesold onthe
market oftherecipient country atprices comparable with those normally
charged forproducts ofsimilar quality .
Theproceeds from this sale ,less thecost ofsea'transport ,insurance
I \
andthenormal cost ofselling theproduct ontherecipient country 's
market ,will bepaid into aspecial account andallocated tothefinancing
ofoneormore development schemes which have already been proposed bythe
recipient country andapproved bytheEuropean Economic Community .
2.Thefollowing shall besubstituted forArticle VIII :
Therecipient country undertakes toinform theEuropean Economic Community
howthis Agreement isbeing implemented .Tothis end itshall provide the
Commission oftheEuropean Communities with thefollowing information :
l)Every three months until thequantities received asaidhave been
fully used :
«
a)number anddescription ofrecipients ,thequantities distributed ,
andwhere andhowthey were distributed . '
b)Quantities sold ,howthey have been sold ,selling prices ;normal
selling costs ontherecipient country 'smarket :

-2-
I
2)On15January every year until thespecial account hasbeen fully
used :
a)Stat$ ofthis account (inoomings andoutgoings )on31December
ofthepreceding year ;
b)Progress achieved intheproject orprojects ,with anindication
ofthetotal amount offinancing undertaken atthat stage .
Ishall beobliged ifyouwill inform mewhether your Government canagree tothe
above .
Please accept .Sir ,theassurance ofmyhighest consideration .
For the Council
• i.
oftheEuropean Commuait ies

--
B.LetterfromtheRepublicofChad.
Sir,
Ihavethehonourtoacknowledgeofyourletterofreadingas
follows:
WithreferencetotheAgreementof18December1974betweentheEuropean
Economi'cCommunityandtheRepublicofChadonthesupplyof10000metric
tonsofcerealsforfreedistribution toneedysectionsofpopulation ,and
I *
therequestbytheRepublicofChadthatinviewofthedifficulties inthe
supplysituationofwheatflourinChadonthelocalmarkettheEuropean
EconomicCommunityauthorizethesaleof3600metrictonsofwheatincluded
in-thisgift,Ihavethehonourtoproposetoyouthefollowingamendmentsto
theabovementioned Agreement :
if
1.Thefollowii^shallbesubstitutedforArticleV:
Thecountryofdestinationundertakestousetheproductsreceivedasaidfor
purposesofconsumption andtodistributethemfreetopeopleinneed,with
theexceptionof3600metrictonsofsoftwheatwhichmaybesoldonthe
marketoftherecipientcountryatpricescomparablewiththosenormally
chargedforproductsofsimilarquality.
Theproceedsfromthissale,'lessthecostofseatransport,insurance
andthenormalcostofsellingtheproductontherecipientcountry's
market,willbepaidintoaspecialaccountandallocatedtothefinancing
ofoneormoredevelopment schemeswhichhavealreadybeenproposedbythe
recipientcountryandapprovedbytheEuropeanEconomicCommunity.
2.Thefollowingshallbe^substitutedforArtioleVIII:
TherecipientcountryundertakestoinformtheEuropeanEconomicCommunity
howthisAgreementisbeingimplemented.Tothisenditshallprovidethe
CommissionoftheEuropeanCommunitieswiththefollowinginformation :
l)Everythreemonthsuntilthequantitiesreceivedasaidhavebeen
fullyused:
a)numberanddescriptionofrecipients,thequantitiesdistributed,
andwhereandhowtheyweredistributed.
b)quantitieseold,howtheyhavebeensold,sellingprices)normal
.. f-,■■sellingcostsontherecipientcountry'smarket;

-4-
2)On15Januaryeveryyearuntilthespecialaccounthasbeenfully
uséd:
a)Stateofthisaccount(incomingsandoutgoings)on31December
oftheprecedingyear? ,
b)Progressachievedintheprojectorprojects,withanindication
ofthetotalamountoffinancingundertakenatthatstage.
IshallbeobligedifyouwillinformmewhetheryourGovernmentcanagreetoth<
above.
IhavethehonourtoinformyouthattheGovernmentoftheRepublicof
Chadagreestotheamendmentsproposedinyourletter.
Pleaseaccept.Sir,theassuranceofmyhighestconsideration .
FortheGovernment
oftheRepublicofChad