ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(74)768
Vol.1974/0117

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(74)768 final
Brussels ,4June 1974
RECOMMENDATION FOR ACOUNCIL DECISION
ontheconclusion ofanagreement between theEuropean Economic
Community andtheRepublic ofPeru forthesupply of
cereals asfood aid
(submitted totheCouncil bytheCommission )
i
!
C0M(74 )768final

THECOUNCILOFTOEEUROPEA.1TCOMi'IUUITIES,
«
HavingregardtotheTreatyestablishingtheEuropeanEconomicCommunity,
andinparticularArticles113,114and223thereof;
HavingregardtotheRecommendation fromtheCommission;
WhereastheEuropeanEconomicCommunityhasdepositedaDeclarationfor
provisionalapplicationofthe1971Food-AidConvention;whereasthat
Conventionhas"beenapplicablesince1July1971}
WhereastheRepublicofPeru,byitsletterof.13.10.1972,hasrequested
foodaid:
#
Whereasinviev:ofthecerealsupplysituationmPeruthatcountryshould
beaccorded,bywayofgift,15000metrictonsofsoftwheatunderthe
»
CommunityFoodAidProgrammefor1972/73?
DECIDES:
• Article1
OnbehalfoftheEuropeanEconomicCommunityanAgreement,thetextwhereof
isannexedhereto,shallbeconcludedbetweentheEuropeanEconomicCommunity
andtheRepublicofPeruforthesupplyofsoftwheatasfoodaid.
asfoodaid.
#•
Article2
«
ThePresidentoftheCouncilisherebyauthorizedtodesignatethosewho
aretosigntheAgreementandtoconferonthemtherequisitepowerstobind
theCommunity.
V
DoneatBrussels, ••FortheCouncil
ThePrésident

AGREEMENT
BETWEEN THE EUROPEAN ECONOMIC COMMUNITY
AND THE REPUBLIC OFPERU ONTHE SUPPLY
OFFOOD AID INTHE FORM OFCEREALS

HIECOUNCILOPTHEEUROPEAN COMMUNITIES .
01theonepart,
THEGOVERNMENT OPTHEREPUBLIC OFPERU
oftheotherpart,
HAVEDECIDEDtoconcludethisAgreementandtothisendhavedesignated
astheirplenipotentiaries : -
é
THECOUNCILOPTHEEUROPEAN COMMUNITIES :
THEGOVERNMENT OPTHEREPUBLIC OFPERU:
.■ «
WHOHAVEACREEDASF0LL0W3:

ΛΠΤΤσΤ.Εχ
Asapartofi"tsFoodAidProgramme(Cereals)for197/7,"theEuropean
EconomicCommunityshallsupply,bywayofgift,theRepublicofPeru
hereinafterreferredtoasthe"recipientcountry",with15000metric
tonsofsol'twheat.
••ARTICLEXI ■-
Deliverieswillbemadeinbulk,fobtoCommunityports.
ARTICLEXXX
Theobligationsandresponsibilities oftheEuropeanEconomicCommunityand
oftherecipientcountryrelatingtodeliveryandthetakingofdelivery
aredefinedinthe-Annex,vmichformsanintegralpartofthisAgreement.
ARTICLE XV
The'recipientcountryundertakestomakeallnecessaryarrangements forthe
transportandinsuranceoftheproduct -fromportsofshipmenttoplaces01
destination . .
Ituntertakestoexercisethegreatestpossiblecaretoensurethatthe
tenderingarrangementsforthetransportbyseaare'notprejudicialtothe
1freeplayoffaircompetition .Anyproblemsarisinginthisconnectionshall
"bethesubjectofconsultations underArtidleIXofthepresentAgreement.
**•
ARTICLEV
Therecipientcountryundertakestousetheproductreceivedasaidforpar-
posesofconsumption andtoapply,forthesaleoftheproduct011itsmarket,
thepricesnormallychargedonthatmarketforproductsofcomparablecuality.

Theproceeds from "this sale ,less thecost ofseatransport ,insurance andthe
normal cost ofselling theproduct ontherecipient country 'smarket ,will
"bepaid 'into aspecial account andallocated tothefinancing ofoneormore
development schemes which have already "been proposed bythe -recipient country
andapproved "bytheEuropean Economic Community ,
■ARTICLE VI . !
I
TheContracting Parties undertake toimplement this Agreement insuch away as
toavoid anyprejudice tothenormal structure ofdomestic production and inter­
national trade .Tothis endthey shall take anymeasures required toensure thai
aidsupplies areinaddition to,anddonotreplace ,"business transactions which
might reasonably "beexpected ,intheabsence ofsuch supplies .Inparticular ,
s
therecipient country undertakes toimport commercially from whatever source
between 1July 1974 and30June 1975 &minimum quantity of646.200 metric tons
ofsoft wheat oritsequivalent inflour ofsoft wheat .
ARTICLE VIT
Therecipient country shall take anymeasures required toprevent :
(i) There-export oftheproduct received asaidandofproducts and
by-products resulting from such supplies ;
i .
(ii)Theexport ,commercially orotherwise ,within sixmonths ofthelast
delivery ,either oftheproduct obtained locally andofthesane nature
astheproduct received asaidorofanyproducts orby-products resultiif
fromit. !
ARTICLE VIII
Therecipient country undertakes toinform theEuropean Economic Community how j
"this Agreement isbeing implemented .Tothis enditshall provide theCommissiot
oftheEuropean Communities vrith thefollowing informations

-3.-
(i)Notlaterthanthirtydaysafterthounloadingofeachcargo:
portsanddatesofarrivalofthevessel;nature,quantityand
..qualityoftheproductsunloaded;dateonwhichvmloadingwas
completed; >
(ii)Everythreemonthsuntilthequantitiesreceivedasaidhavebeen
fullyused:quantitiessold,howtheyhave"beensold,sellingprices;
–normalsellingcostsontherecipientcountry'smarket;
(iii)On15Januaryeveryyearuntilthespecialaccounthas"beenfully
used:
(a)Stateofthisaccount(incomingsandoutgoings)on31December
ofthepreceding.'year;
(b)Progressachievedintheprojectorprojects,withanindication
ofthetotalamountoffinancingundertakenatthatstage.
ARTICLEIX
Attherequestofeitherofthem,theContractingPartiesshallconsulteach
otheronanyquestionsconcerningtheimplementation ofthisAgreement.
».
ARTICLEX
ThisAgreementisdrawnupinduplicateintheDanish,Dutch,English,French
GermanandItalianlanguages,eachofthesetextsbeingequallyauthentic.

ANNEX TOARTICLE IIIOPTHEÀGREEMEHT
^ Article 1
Delivery shall beeffected andrisks shall pass from "theEuropean Economic
Community totherecipient country atthemoment atwhich thegoods have .
"been placed intheship 'shold attheport ofshipment .
Therecipient country shall "bear allcosts subsequent todelivery ofthegoods ,i
including costs ofstowage and ,where appropriate ,oftrimming and "bagging . !
i
Anydemurrage costs ordispatch attheport ofshipment shall "beacharge on
orforthe "benefit oftheEuropean Economic Community andshall "bedetermined
"before thevessel sails .Therates anddetailed arrangements relating thereto
'laid down inthecontract "between therecipient country andthecarrier must
have "been agreed upon inadvance bytherecipient country andtheauthorized
agent oftheEuropean Economic Community referred toinArticle $.
Article 2
• •
TheEuropean Economic Community shall notify therecipient country ingood
time oftheport orports ofshipment ,thequantities tobedelivered ateach
port ,theperiod within which loading must begin ,andthedaily loading rate .
%
Article 3•
0
TheEuropean Economic Community must beprepared toload thegoods onthedave
resulting from theinstructions inArticle 8,whereon thevessel should be
ready forloading . •
Article 4
Ondelivery ofthegoods ,atolerance of5less than thequantity tobe
supplied inaccordance with Article 1oftheAgreement ispermitted .

Article5
• • \
Oncethegoodsareon"boardthevessel,theEuropeanEconomicCommunityshall
notifytherecipientcountryofthe'dateofloading,andthequantityand
\ '
qualityofthegoodsasrecordedonloading.
i
Article6
TherecipientcountryshallsupplytheEuropeanEconomicCommunity,withinthe
«
periodreferredtoinArticle2,withavesselofdimensionscorresponding to
thenormalloadingpotentialoftheportofshipment.
Shoulditproveimpossibleforthevesseltobeginloadingwithintheperiod
referredtoinArticle2andshouldtherecipientcountrynothavenotified
theEuropeanEconomicCommunityofthisfactinwritingatthelatest "bythe
dateonwhichthevesselshould "bereadyforloadinginaccordancewithArticle
thegoodsshall"beatthedisposaloftheEuropeanEconomicCommunity.
Whateverthecircumstances ,thegoodsshall"beheldattheexpense,riskand
periloftherecipient 'country.
*-Article7
Shouldtherecipientcountryfailtoprovideavesselofstiitabletonnageor
ifthequantitymadeavailableforloadingonavesselofsuitabletonnage
cannotbeputonboardinitsentiretybecauseofcircumstances beyondthe
»
controloftheEuropeanEconomicCommunity,thebalanceshallbeloadedonto
thenextvesselundertheconditionslaiddowninthisannex.
Inthisevent,untilthedateofloadingofthisbalanceoruntiltherecipient
countrygivesnoticeinwritingthatitgivesupthisbalance,thegoodsshall
beholdattheexpense,riskandperiloftherecipientcoxmtry.
TherecipientcountrymustnotifytheEuropeanEconomicCommunitywithina
periodofamaximumof30daysfromthebeginningofloadingoftheshipment
"towhichthesegoodsshouldhavebelonged,ofthedateonwhichloadingof
thisbalanceisduetobeginorofitsrenunciation ofthisbalaaice.

Ifthisobligationisnotrespected,theEuropeanEconomicCommunitymay
considerthatithasdischargeditscommitmenttotherecipientcountryunder
Article1oftheAgreement. ;
Article8 .
TherecipientcoiuitryshallnamefortheEuropeanEconomicCommunitythe
vesselthatistoshipthegoodsatleast10cleardayspriortotheestimated
dateofarrivalofthevesselinpartor,wherepossible,20cleardaysprior
tothisdate,andshallatthesametimeindicatehowsoonafterthatdate
thevesselwill"bereadyforloading.
Therecipientcountryshallinsertinthecharterpartyaclauserequiring
thecaptaintoinformtheEuropeanEconomicCommunityatleast72hoursin
advanceofthevessel'sestimateddateofarrivalinport.
Article9
ToimplementtheprovisionsofthisAnnex,theEuropeanEconomicCommunity
shallappointanauthorizedagent,whosenameandaddressshall"bemadeknovm
» •
ingoodtimetotherécipientcountry.
Therecipientcountryshallnominateareceivingagentineach-portofship­
ment,whosenameandaddressshall'bema,deknowntotheEuropeanEconomic
CommunitybeforetheAgreementisimplementedo