ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(73)436
Vol.1973/0072

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COMMISSION OFTHEEUROPEANCOMMUNITIES
COM(73)436final
Brussels,20March.1973
COMMUNICATION FROMTEECOMMISSION TOTHECOUNCIL
concerningtheFulfilmentofcommitmentsenteredinto"bytheCommunity
tinderthesecondFoodAidConvention
(cereals)
1972/1973
PROPOSAL FORA
COUNCILDECISION'
onCommunityfinancingofcertainexpenditureinrespectoffoodaidsupplied
underthe1972/73programme
(submittedbytheCounciltotheCommission)
COM(73)436final

Introduction
Theaimofthiscommunication istoestablishthe1972/73foodaid
programmeforcerealsto"beimplementedpursuanttothecommitment
enteredinto"bytheCommunityunderthe197*1FoodAidConvention,
AsaresultoftheaccessiontotheCommunityofthreenevrMemberStates,
theCommunity'scommitment,whichwasoriginally 1350000metrictons
ofcerealsperyearisnowforthecurrenttwelvemonths1161000metric
tons,i.e.anincreaseof126000metriotons.Thisamountrepresentsan
extracommitmentooveringsixmonthsasthedateofaccessionismid-way
throughthe1972/73year1.
Itshouldbenotedthattheconsequenoes ofenlargement ontheCommunity's
commitmentarestilltohediscussed "bytheLondonCommitteeatits
meetingon21March.Preliminarycontactsonthesubjectsuggestthatthis
problemwillnotgiverisetoanyparticulardifficulties .ThatiswhyT
giventheurgentneedtodrawupthe1972/73foodaidprogramme,the
Commissionisforwardingthisproposalforthwith.
TheCommission'sproposals(seesec.3ofthiscommunication )havebeen
drawnupontheassumptionthatCommunityschemeswillaccountfor45%
ofthetotalcommitment.Thispercentageisacompromisesolutionput
forward "bytheDutchDelegationandcouldbeaccepted "bytheCommissionif
itmeetswiththeunanimousapprovaloftheMemberStates. /
•Theadditionalamountwillhe252000metrictonsfor1973/74*This
willbringtheCommunity'stotalcommitmentto1287000metrictons.

-2-
I.RequestsaddressedtotheCommunityandtheMemberStatesfor
foodaid(cereals)inrespectof197^/73
A.RequestsaddresseddirecttotheCommunity
1.General
Underthe1972/73foodaidprogramme,31requestswereaddresseddirect
totheCommunityforsome2170000metrictonsofunworkedcereals
equivalent;thisdoesnotincluderequestsfromfourcountries(Jordan^
Syria,Afghanistan,thePhilippines)whichspecifiednofigures.Table1
liststherequestsaddresseddirecttotheCommunityandindicatesthe
kindandamountoftheproductsaskedfor.
2.Detailsregardingallocation
I
(a)Mostoftheaidrequestedisintendednot'onlytomakeupthedeficit
inwheatorothercerealsexistingintherequestingcountriestut
alsotocontributetotheirdevelopment throughthesalelocallyof
theproductssuppliedasaidandthesettingupofacounterpart fund
forfinancingdevelopmentprojects.Somecountries(Jordan,Nigeria,
Mauritania,Senegal,Chadand,forapartofthequantitiesinvolved,
MaliandSomalia)haverequested,however,thattheaid"beusedfor
purelynutritionalpurposes(freedistribution).
Furthermore,thesedirectrequestsfornutritionalaidwereof:■
courseaccompanied byrequestsfrominternational organizations such
asUNRWA,ICRCand,forsomeoftheirprojects,MFP,Caritasandthe
WorldCouncilofChurches.
Inanycase,onecannotexcludethepossibilitythatsomeoftheaid
1 'recipientswill,atalaterdate,altertheirrequestsinthisrespect;
theusethattheyeventuallydecideonwill,however,bestatedinthe
agreementtosupplytheaid.

-3-
TABLE 1
REQUESTS ADDRESSED TOTHE COMMUNITY
Applicant
countries
and
organizationsQuantity andproduct requested
(iiimetric tons )Metric tons ij
unworked ceiej ,
equivalei ,;
EUROPE
Malta
MAGHREB
Alger ia
Tunisia
REST OFAFRICA
Upper Volta
Mali
Mauritania
Niger
Sénégal
Somalia
Chad
Mauritius
MIDDLE EAST
,Jordan
Lebanon .
Arab Republic
ofEgypt
Syria
FAR EAST
Afghanistan
Bangladesh
Indonesia
Pakistan
Philippines
Sri Lanka .
Indochina .i20000barley ,8500wheat
35000maize ,5000sorghum 68530
100000 wheat 100000
25000wheat 25000
10000 maize '10 000
60000 cereals 60000
6000wheat ,sorghum 6000
15000maize 15000
15000 sorghum ormaize 15000
40000 cereals 40000
6000wheat ' 6000
20000wheat flour 30200
rice ,macaroni ,spaghetti andsimilar
products ,wheat flour –
50000wheat 50000
300000wheat ,100000wheat
flour 451 000
wheat –
wheat –
200 000 wheat - 200 000
50000wheat andrice 50000
200 000 wheat 200 000
cereals –
20000 wheat flour 30200
LATIN AMERICA
iiimn T mrwiw m11Bolivia
Chile
Peru
Uruguay
ORGANIZATIONS
Carrsas
ICRC
Council ofChurches
MFP
UNRWA50000wheat 50000
100000wheat,' 40000maize ' 140000
75000wheat 75000
100000wheat 100000
7246Ocereals 724^0
7500cereals 7500
15581cereals 15581
333333wheat 333333
3070wheat flour ,240rice (supplementary
programme ),17000cereals (normal 21876
programme )
1
Requests from ICRC andfrom South Vietnam .

-4-
(t>)Requestsfromcountriesandorganisations donotspecifythedetails
regardingdeliveryofCommunityaid,i.e.whetherfoborcif,
freeatfrontieroratplaceofdestination.Itistherefore
•consideredthattheirintentionistoretainthetermsgrantedto
themduringthelastyear.
-RequestsaddressedtoMemberStates
Accordingtoinformationreceived "bytheCommission,mostofthecountries
thathaveappliedforaidfromtheCommunityhavealsoaddressedrequests
tooneormoreMemberStates.Somecountries,however,haveaddressed
theirrequeststoMemberStatesonly.ThesewereBurundi,Dahomey,
Lesotho,Rwanda,YemenandZaire,Finally,someothercountriesand
organizations haveappliedsolelytotheCommunity(Algeria,Bolivia,
Philippines ,Uruguay,SouthVietnam,ICRC,Caritas,WorldCouncilof
Churches).
Table2listsallrequestsaddressedtotheCommunityandtotheMember
States.
II.EXAMINATION OFTHEMERITSOFREQUESTS
TheCommissionexaminedthemeritsofeachrequestonthebasisofthree
principalcriteria:
(i)importrequirementsofapplicantcountriesthatstillneed
to"bemetfor1973;
(ii)effectsthatfoodaidgrantedpreviouslymayhavehadon
■tradeflows;
(iii)economicandfinancialsituationoftheapplicantcountries.
/

Table2
?PtheCommunityand_to_the
MemberStates
Countriesand
organizations -EECBelgBenGerPrIrlItLuxNethUK
EIJROPE
Malta.
MGEREB
Algeria............. x
Tunisia x..x..............x......x..........
RESTOFAFRICA ,•
Burundi
Dahomey
UpperVolta..........x..x........x.. x
Lesotho *
Madagascar........... x
Κο,ΐί χ χ..χ................ χ
ϊ-ΐατιτϊΐειηΐα χ χ..χ
Niger.........*.......x ..x..... x
tenda..................... x
Senegal.............. x..x x......x
δοπίΜίαα.............. χ χ
ΟΜ χ χ
Zaire ...........o..........
Mauritius............ « x.........
X··X········ Χ#·X······XMIDDLEEAST
«ΙοΓάαη χ ...-χ..χ
ΙθΙαηοη χ χ
ArabRepublicof
mi••••••••<Egypt
37x13. χ χ
Υβΐϊΐβη(υ) .χ.................
FAREAST
Afghanistan X «...X
Bangladesh........... x..x........x...x x.
Indonesia. x..x x...x......x*x.
Indochina. x
Nepal x.
Pakistan x x
Philippines ...»x *.
SriLanka x x..x
LATINAMERICA
Bolivia....a..x
Chile x..x x...x x
ΡβΓΙΙ Χ..Χ
Uruguay x
ORGANIZATIONS
Câritàs x
ΙΟΕΟ Χ
WorldCouncilof
Churches...x
ΤΙΡΡ·········«········ X··X·····*··X··X»········*······ X·*··X·
ΙΜΗΑ χ..χ X..χ
INVICI x..x........
[Cr/tholicorganization inChileïï'RequestsfromICRCandfromSouthVietnam.

-6-
1.Applicantcountries'importrequirementsstilltobemetfor
1973(seeTable3)
InordertoassesscorrectlytheamountofaidthattheCommunityand
theMemberStatescouldallocatetoeachapplicantcountry,itisnecessary
tocalculatethenetimportrequirementsforwheator,incertaincases,
cereals,i.e.theimportrequirementsthatstillneedtobemetfor1973.
Tothisend,theamountofcommercialimportsforecastandthatoffood
aidreceivedorstilltobereceivedfor1973hasbeendeductedfrom
thedeficitinwheatandcerealsforthatsameyear.Theresultsobtained,
whichmustbelookeduponasordersofmagnituderevealthatmostofthe
applicantcountrieshavelargewheatorcerealsdeficits.However,the
existenceofnetrequirementsisnotveryevidentinMalta,Dahomey,
RwandaorBolivia.Furthermore,netrequirements inBurundiand
Lesothoarenotconsiderable .Somemoderationshould,therefore,be
•J
appliedwhendecidingontheamountsofaidtobegrantedtothesesix
countries.
/.

TABLE 3 '
APPLICANT COUNTRIES *IMPORT REQUIREMENTSOFVIHEAT OR
CEREALS STILL TOBEMETFOR 1973
Applicant
countriesWheat or
oereals
déficitCommercial import sNon-coramercial import sImport
ofwheat (orwheat ofwheat (orwheat requirement ;
flour )forecast flour )scheduled still tobe
from from other me^
EEC countries
EUROPE 2
Malta 53ooo 47000 600
MAGHREB
Algeria 900000o 500 000 36000
Tunisia 356000 85000 47000 3000
REST OFAFRICA
Burundi 8000' ' 5000 1800
Dahomey 16000 10000 12000
Upper Volta * 61000_- 18000 11000 13000
Lesotho 3000 2000
Mali* 25000omm 27000 25000
Madagascar 39000 - 22000 7500
Mauritania 70000 7000 4000
Niger * 105000 10000 10000
Sénégal 253000 148000 16555 13000
Somalia 96000 22000 30000
Chad 160000- 12000 7000
Rwanda 5OOOo 2600 7600
Zaire 121000^ 65000 10000 32000
Mauritius 67000" 50000 3000 4000
MTDDLE EASTΟ
Jordan 126000^ 8000 9000 55000
Lebanon 377000 230 000 20000 60000
Arab Republic of o
Egypt 26780007 1700000 134000
Syria 486000,160000 25000
Yemen 153000 76000 15000
FAR EAST ' Ο36500 52oooAfghanistan 147000
Bangladesh * 3200 000 1200000 379 OOO
Indonesia 700000 52000 330000
Nepal Ο
110005ooo
Pakistan 1052000t 100000Q 339OOO
Philippines 646000 430000^ 161 000
Sri Lanka 350000 50000' 23000 92OOO
LATIN AMERICA Ο100 000Bolivia 218 000 124000
Chile 1010000o 3900002000 61o-
Peru 780000 600 000 20000
Uruguay 187000m»221 000
1200
19OOO3
1000 .
198OOO4
9500,
59QQOi
85000:
80445
44000
141000
14000
10000
54000
67000
844000
301000
62000
58500
621000
310000
602 000
55000
185000
618000
160000
187000
Seefollowing page forfootnotes .

Forallcereals
1Lastavailable UMRor,failingthat,annualaverageofcommercial
v.'heatorwheatflourimportsoverthelastfiveyears,except
forBangladesh ,wherefigurerelatestocurrentpurchases.
2Averagecommercialandnon-commercial importsofwheatandwheatflourin1970/71and1971/72. •'''"\requestfor5Q00metrictonshasbeenaddressedtoCanada
^'CurrentrequeststoCanada(15000metrictons)andl/FP(24000metric
tons)andpurchaseof25000metrictonsofricefromChina.
^Expecteddeliveryofsome30000metrictons(Spain,Canada,IJFT,USA).
6^CurrentrequeststoWPP(10000metrictonsofsorghum)andtoUSA
(27000metrictonsofsorghum,2000metrictonsofmaize).
^DeliveriesexpectedfromWPP,Brazil,UK,Canada,Switzerland,United
StatesandCatholioAid.
8wheatflouronly.
0
^IMRproposedbytheUnitedStates.
^Assumingdeliveryofthemaximumamountof150000metriotnnsprovided
forinthe-agreementbetweentheUnited"StatesandthePhilippines.

2•Effectsoffoodaidgrantedpreviouslybyalldonor_countrieson
tradeflews
Inordertoascertainwhetherandtowhatextentfoodaidreceivedinthe
past"bythevariousapplicantcountrieshasreplacedthosecountries *commercial
imports,thefollowingwereexaminedinrespectofeachcountry:
(a)thetrendofnon-commercial importsofwheatandwheatflouras
apercentageoftotalimportsofthoseproductsoverthelast
'fouryears(seeTable4)!
(b)thetrendofthevolumeofcommercialimportsoverthesameperiod
(seeAnnex).
Thefiguresrevealthatduringthefouryearstheonlycountrieswhoseshare
offoodaidhasincreasedregularlyareBurundi,Mauritius,Lebanonand
Pakistan.
Thisrelativetrendhas,however,beenaccompaniedbyanalmostconstant
absolutelevelofcommercialimports-seethefiguresonpage10-and
thisisinlinewiththecommitmentsenteredintobythosecountriesunder
theUsualMarketingRequirement (UMR).

-10-
TABLE4
NON-COMMERCIAL IMPORTSOPWHEATAM)WHEATFLOURAS
••PERCEM'AGE OFTOTAL
1968/69•IMPORTSTHEREOF-
1969/701970/711971/72
EUROPE
Malta 0.8 0.9 0.9 5.0
MAÏÏGREB
Tunisia 77.9 90.4 82.4 57.3
Algeria 16.0 .32.I 53.1 2,3.
RESTOFAFRICA
Burundi • 8.2 15.2 24.3-
Dahomey 2.8 0.6
UpperVolta 3.2 43.4 44.0 14.0
Lesotho 100.0 100.0'100.0 100.0
Madagascar•w .0.5 1.4
Mali 83.6; 44.3
Mauritania 0.6 70.8 35.0 45.5
Higer 100.0 76.4 100.0 14.4
Rwanda 68.1 21.7 ,..60.0 23.7
Sénégal 1.5 1.6-0.2 3.7
Somalia 24.6 :11.7 3.8
Chad 99.9 0.7 68.0
Zaire 49.0 11.1 '■'r'24.3 22.8
Mauritius mm■3.9 ■13.6 •16*7
MIDDLSEAST1Λ'
Jordan 95.7 78.4 ,.78.374.8
Lebanon 1.0 5.7.30.5 31.8
ArabRepublicof1
Egypt 5.9 8.6 26.6 6.6
Syria ,...12.3 70.4 58.3 .37.2
Yemen(IT) 0.8 19.8 33.2 14.9
FAREAST
Afghanistan 99.3 99.8 99.876.7
Bangladesh «M 98.6
Indonesia 79.1 93.3 95.5 '82.6
Nepal 37.7- ■98.8 .:87.5 :.100.0 ,
Pakistan 8O.5 83.1 88,1 .90.9..
Philippines '2.1: 1.3 4.7"3.4'
SriLanka 52.5. 47,1 ,39.6...,67.8 :
LATINAMERICA
Bolivia 37.0 61.2 .2.6';'29.5'
Chile 36.1'<<4.2'-■'u"'3.3"!1.5
Peru 2.8 23.4 •37-7 1.1
Uruguay 100.0 100.0 100.0 100.0

-11-
Metricton.-?
■■■U*M IAVjuj
1971/72
6605
63135
255326
96329
Oncetheamountofthenetdeficitstillto"becoveredfor1973hasbeen
calculated,ithasto"beexamined,inthelightoftheeconomicand
financialsituationintheapplicantcountries:
(a)whetherandtowhatextentthisdeficitshould "becovered "by
foodaid(fromCommunityandnationalsources);
("b)whetherafavourableresponsecanbegiventorequeststhatthe
Communitybearthetransportcosts.
Tothisend,themaincustomarycriteriawereusedforevaluatingtheeconomic
situationinacountry(grossnationalproductpercapitaandannualgrowth
rate)andalsoitssituationasregardsexternalfinance(thenumberof
1monthsthatexchangereservescouldfinanceimportsandthelevelof
externalindebtedness).ThisinformationisshowninTable5*
Asregardsthegrantingoffoodaidtocovernetdeficitsinapplicant
countries,theCommission'sviewisthat,especiallyinviewofeconomic
criteria,theprincipleoffoodaidtothesecountriescannotbequestioned.
However,whencalculatingthelevelofaidtobeallocatedtoeachofthe
countriesconceded,accountwillhavetobetakennotonlyofthenet
requirements ofeachofthembutalsooftheconsiderable disparities
thatexistbetweenthemintheeconomicandfinancialfields.
1Lastdateforwhichfiguresavailablet30October1971•COMMERCIAL IMPORTSOPWHEAT -ANDWHEATFLOUR
.ÇfflgjgT. ■1969/70 197.0/71,
Burundi 5891 6878 6253
Mauritius 57588 62221 41990
Lebanon 275981 304519 264047
Pakistan 100052 247397 124090
3.Economicandfinancialsituationinapplicantcountries

-12-
TABLE5
HIF0RI1ATI0N ONTHEECONOI-lIOANDFINANCIALSITUATION
HIAPPLICANT COUNTRIES
Applicant Grossnational AnnualgrowthNumberof1970
countries productperratepercapitamonthsthatRateof
capita --1960-70 reserves external
couldfinanceindebtedness
imports(at(ext.public
latestdatedebtsservic–
forwhich' .ing/receipts
figures fromexports
available)ofgoodsand
services)
Uruguay 820 -0.4 -.9-9 22.5
Malta 810 5.8 "16.7 1.7118.41 Chile 720 1.6 -2.5
Lebanon 590 0.5 13.2 NS
Peru 450 1.4 '4.6 14.5
Algeria 300 1.7 4.7. NS
Syria 290 3.4 3.0 11.2
Tunisia 250 0.5:6.4 >-18.2
Jordan 250 2.9 13.2,,....•3.5
Mauritius f240 0.7 11.2 3.5
Sénégal 230 ,-0.0:-0.9•"■'•■i-3.6
ArabRepublic
ofEgypt 210 1.7 2.3 25.1
Philippines 210 2.9 4.4'•"7.3
Bolivia 180 2.5 3.5 10.3
Mauritania 140 '4.5'••:1.4^'3.7
Madagascar 130 1.2..•2.9...;4.8.
SriLanka 1110 1.5'2.1 9.9
Pakistan 100 2.4- •3.5 25.4
Bangladesh 100 2.4 NS NS
Dahomey 90 0.1 3.9 4.8
Niger 90 .-2.0 6.8 5,4
Lesotho 190 0.0 '''NS 2.8
Zaire•,•90-, ■- ",2.7 !•3.2-. •3.9
Indonesia 80 1.0 NS 6.8
Chad ;80-•' 0.4'''1.4":6.6
Nepal 80 0.5 27.9 NS
Afghanistan 80 0.5 8.2 28.4
Yemen(N) 80 2.0 NS NS
Mali 70 4.4 2.0 2.9
Somalia 70 -1.1 4-5 1.9
Burundi 60 0.8 7.3 1.9
UpperVolta 60 0.6 10.2 12.0
Rwanda 60 1.5 1.6 1.2
1969figures.
Sources:WorldBankandInternational MonetaryFund

-13-
AsregardsCommunityfinancingoftransportcostsinrespectofUpperVolta,
Mali,Mauritania,Somalia,Niger,Senegal,Chad,Mauritius'and
Afghanistan,theCommission,onthe"basisofthedatainTable5»considers
thattheCommunitymustanswerthisquestionintheaffirmative andmust
payparticularattentiontothecaseoftheassociatedAfricansavanna
countries,whichatpresentarefacingseriousdifficulties onaccount
ofathree–yeardroughtinthearea.
III.COMMISSION PROPOSAL
InaccordancewiththemethodlaiddownintheCouncilforestablishing
programmesunderthe2ndConvention,theCommissionhas:
(i)workedoutthetotalamountsthatcouldheallottedtoeachapplicant
countryfrombothCommunityandnationalsourcesonthebasisofthe
aforementioned criteria;
(ii)dividedthetotalforeachcountryintoaidfromCommunitysources
andtotalaidfromnationalsources,accounthavingbeentakenof
.requestsaddresseddirecttoMenberStatesandthelatter*sinitial
declaredintentionsandalsoofthespecialrelationsthatexist
betweencertainapplicantcountriesandoneorotherMemberState
ortheCommunity.
The.amountsenvisagedbytheCommissionareshowninTable6,asarethe
termsofdeliverythattheCommissionbelievesshouldbeproposed,given
thepointsexpoundedpreviously.
ItistobenotedthattheCommissionhasmadeprovisionforareserveof
30000metrictonstobeusedforCommunityemergencyoperationswhichmay
provenecessaryorforbelatedrequeststhattheCouncildecidesmustbe
granted.Afurtherreserve–of70700metrictons-isforcarryingout
nationalaidprojects.

-14-
TABLE6
comassioir PROPOSALS
POODAIDPROGH/JFLE
1972/73
Applicant
CountriesAidfrom
CommunityAidfrom
CommunityAidfrom
national
and sources sources
national
sources
EUROPE .
Malia 5000 2500 5000
MAHGREB
Algeria 1600015000
Tunisia 500001000040000
RESTOPAFRICA
Burundi 1800 1800
Dahomey 2000 2000
UpperVolta 12000 5000 7000
Lesotho 1000 1000
Mali 3500025000 10000
.Madagascar 5000 2500 2500
Mauritania ;15000 :5000 10000
Niger 150007500 7500
Sénégal :200005000 .1.5000
Somalia 200005000 15000
Chad 9000 6000 3000
Rwanda 2500 2500
Zaire 5000 mm 5000
Mauritius 80005000 3000
ÎITDDLEEAST
Jordan 150005000 10000
Lebanon 15000 5000 10000
ArabRep.ofEgypt 12000010000110000
Syria 2500015000 10000
Yemen 10000 10000Aidfrom
Communitysources
termsofdelivery
fob
fob
fob
Free-at-frontier+
fixedcontrib.15u.a./
metricton
Freest-frontier +
fixedcohtrib.20u.a./
metricton
cif
cif+fixedcontrib.
30u.a./metricton
Pree-at-frontier+
15u.a./metricton
cif+fixedcontrib.
15u.a./metricton
cif
Pree-at-frontier+
fixedcontrib.20u.a./
metricton
cif
fob
fob
fob
fob
/•

-15-
TABLE£icontd )
COMMISSION PROPOSALS
FOOD AID PROGRAMME
1972/73
Applicant
countriesAid from
Community
and
national
sourcesAid from
Community
sourcesAid from
national
sourcesAid from
Community sources
terms ofdelivery
FAR EAEJ?
Afghanistan 12000 5000, 7000 cif
Bangladesh 25000017500075000 e'if
Indonesia 80000 1000070000 fob
Indochina 30000 30000 cif
Pakistan 20000 10000 10000 fob
Philippines 10000 10000 fob
Sri Lanka 35000 15000 20000 fob
Nepal 5000 5000
LATIN AMERICA
Bolivia 10000 10000 fob
Chile 4600024000 22000 fob
Peru 16000 15000 1000 fob
Uruguay 10000 10000 fob
ORGANIZATIONS
WFP 90000 2000070000 fob +fixed contr ib»
ICRC 7500 7500 cif +fixed contrib .
UFWRA , 30500 22000 8500 cif
Caritas
World Council of
Churches . mm
INVICA 2000 2000
Reserve 100700 30000 70700
1161000522000 639000

-16-
AsregardsthemarinerofhonouringtheCommunity'scommitments ,itwill
"berememberedthatthePoodAidConventionprovidesforthepossibility
ofmakingapaymentinlieuofallorpartoftheamountswhichMember
Stateshaveundertakentodeliver.Thepaymenttobemadeiscalculated
bymultiplyingthequantityofUS1.73perbushel(i.e.approximately
64permetricton)(seeArticleII(4)of"theConvention).
TheCommissionconsidersthat,asregardsaidfrombothCommunityand
nationalsources,nochangeshouldbemadeinthepracticethathasbeen
followeduntilnow,namelydeliveryofproducts,becauseoftheabundance
ofcerealsintheenlargedCommunity. 1
Furthermore ,itshouldbenotedthat,giventhepresentlevelofexchange
ratesontheworldmarket,thepaymentformulawouldresultinasubstantial
reductionoftheaidreceivedbytherecipientcountries.
Finally,thekindofproductstobedeliveredunderCommunityfoodaid
projectswillbespecifiedinthesupplyagreements.Itisunderstood,
however,thatthefoodaidwillconsistmainlyofwheat(ingrainorworked)
andofothercerealssuchasmaize,sorghum,etc.Further,theCommission
considerssmallquantitiesofricecouldalsobesupplied:50-50000metric
tons(ithasalreadybeenproposedthat30000metrictonsofthisgo
toIndochina).

Proposalfora
COUNCILDECISION
onComznunityfinancingofcertainexpenditurein
respectoffoodaidsuppliedunderthe1972/73
progrannie

THECOUNCIL OPTHEEUROPEAN COMMUNITIES , ■ 1
Having regard totheTreaty establishing theEuropean Economic Community ;
Having regard toCouncil Regulation (EEC)Ho1703/72of3August 1972
amending Regulation (EEC)No2052/69asregards Community financing of
expenditure resulting from theimplementation ofthe1967 Food Aid
Convention andlaying down rules onCommunity financing ofexpenditure --
1resulting from theimplementation ofthe 1971 Food AidConvention ,and
inparticular Articles 8(l)and10(l )thereof ; ,
Having regard totheproposal from theCommission ;
Whereas itisfound necessary fortheCommunity tobear the cost of
dispatching cereals allotted asaidunder the1972/73Programme tothe
Republic oftheUpper Volta ,theRepublic ofMali ,theRepublic of
Mauritania ,theRepublic oftheNiger ,theRepublic ofSenegal ,the
Republic ofChad ,theSomali Republic ,theMalagasy Republic ,the
Republic ofMauritius ,theWorld Food Programme ,theInternational
Committee oftheRedCross ,andtheUnited Nations Relief andWorld
Agency forPalestine Refugees ;
HAS DECIDED !
Sole Article
Forthepurpose oftheCommunity 'sfood aidactivities under the1972/73
Programme ,Community financing shall extend toexpenditure beyond thefob
stage forthefollowing countries andonthefollowing terms ?
-forUpper Volta ,Mali ,Mauritania ,Niger ,Senegal andChadi deliveries shall
bemade free-at-frontierandafixed contribution of15u.a .permetric
tonofproducts delivered inthecase ofUpper Volta ,Niger andSenegal ,
of20u.a .inthecase ofMali andChad andof30u.a .inthecase of
Mauritania shall bepaid tothose countries towards thecost ofdispatch
totheplace ofdestination ;
OJNoL180 ,8August 1972 ,p.1.

-2-
-forMadagascar,' Somalia,MauritiusandUMRWAtdeliveriesshall "bemadecif5
-for-theWorldFoodProgramme:deliveriesshallbemadefobandafixed
contribution shall"bepaidtothatorganization towardsthecostofdispatch
totheplaceofdestination andtowardsdistribution costs;
-fortheInternational CommitteeoftheRedCross:deliveriesshall "be
madefree-at-frontierandafixedcontribution shallbepaid"tothat
organization towardsthecostofdispatchtotheplaceofdestination
andtowardsdistribution costs.
DoneatBrussels,19–-•
PortheCouncil
ThePresident