ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(78)235
Vol.1978/0077

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COMMISSION OFTHEEUROPEANCOMMUNITIES
COM(78)235final.
Brussels,2June1978
Proposalfora
•.COUNCILDECISION(EEC) ,
on"theCommunityfinancingofcertaincostsinrespectof
cerealsfoodaidunder"the1978programme
,Proposalfora
COUNCILREGULATION (EEC)
onthesupplyof"butteroiltotheDemocraticRepublic
ofSomaliaasfoodaidpursuanttoRegulation(EEC)
Ko831/78
(submittedtotheCouncil "bytheCommission)
C0M(78)235final

Cm
.EXPLANATORY STATEMENT
1.TheGovernmentofSomaliapresented arequesttotheCommissionin
October1977forfoodaidintheformofcereals,skimmedmilkpowder
andbutteroil.Thisrequestwasreceivedtoolateforinclusionin
thegeneralprogramsfor1978however,whenthesewereadopted,a
notewasmadethattheCouncilwouldbefavourably disposedatalater
stagetowardsanallocationtoSomaliafromtheReserves.
FoodsituationinSomalia .
2.Therequesthasnowbeenexaminedtogetherwithsupportinginformation
receivedfromFAOandtheCommission DelegationinMogadishu.
Anapproximate summaryofthefoodsupply,demandandstockscanbe
madeandthisisgiveninAnnexe1.
Inspiteofreasonablestocklevelsfollowinggoodsorghumcrops,
thegeneraloutlookfor1978islessfavourable than1977owingto
flooddamageincertainarea^andtoanincreaseinconsumption needs
,duetotheconflictintheOgaden..
Foodimportrequirementswillthus'behigherthaninthepreviousyear.
Cereals
3.Productionin1977ofcoarsegrains(principally sorghum,andmaize)
showedanincreasetoanestimated260000t,asaresultofagood
sorghumcrop,offsetbyabelowaveragecropofmaize.Howeverimport
requirementsforcalendaryear1978arestillassessedbyFAOat142000t,
ofwhichonly20600tarecoveredbyplannedfoodaid.Commercial
importsduring1977were30000t,inadditionto9000toffoodaid,
•mostlyintheformofmaize.
4.Importrequirementsforricefor1978areestimatedat36000t,of
which11900tarecoveredbyplannedfoodaid.Forwheat(andflour
equivalent),estimatedrequirements are57000t,coveredbyplanned\
foodaidasto35000t.Localproductionofriceandwheatisverysmall.
. .■

3.
5.Insummarytherefore:totalcerealimportrequrementsareestimated
at235000tfor1978.Againstthis,,foodaidshipmentsof67500tare
expected,leavinganuncovereddeficitof167500tfortheyear.
MiLkpowder
6.StocksinMogadishuatend-January1978wereestimatedat1631t,
beingessentiallythebalancefromEECfoodaiddeliveriesin1977
underthe1976program.Arrivalofafurther675tthroughWorldFood
Program,and2500tfromU.S.A.isexpectedduringthefirstquarter
of1978.Thisgivesatotalavailabilityofover4800t,whichis
highcomparedwithestimatedabsorptivecapacitythroughexisting
channels.Noplanshavethereforeyetbeenmadefordeliveryof
the2750toutstanding fromtheEEC1977program.
Edibleoilsandfats
7.AIthough'precisefiguresforproductionandrequirementsofedibleoils
andfats'hasnot'beenobtainable*-itisestimatedthatimportrequirements
'fbr'1978willbe.between.10000tand15.000t;thisisassumingannual
productionof7,000t,.principallysesameand.ghee.Expectedaidduring
1978amountsto'4.800t,including .1.600tbutteroilfromtheEEC1977
foodaidprogram.Uncoveredimportrequirementswillbethereforebetween
5.000tand10000t. -
Purposeoffoodaidrequested
8.FoodaidfromtheCommunitywouldbedistributedfreetoformernomads..
fromthenorthofthecountry,reinstalledwithGovernmentassistance
infarmingorfishingsettlements.DetailsaregiveninAnnex2,
fromwhichitwillbeseenthattheannualrequirements forthe96400
personsare17350tcereals,1040tmilkpowderand695tbutteroil(1).
ν
/
9.Distribution wouldbeundercontroleitheroftheSettlementDevelopment
Agency,oroftheCoastalDevelopment Agency,theGovernmentorganizations
responsibleforimplementing theresettlement programs.,
• \
(1)Itshouldbestressedthatthisistheusagecurrentlyintendedforthefoodaid
Requirements maychange,andinparticularothergroupsofbeneficiaries may
emerge.Partoftheaidcouldbesoldonthelocalmarketwiththeproceeds
beinginvestedindevelopmentprojects.Preciseusage,anddetailsofthe
commoditiestobesupplied,willasalwaysbespecifiedintheconditions
negotiatedwiththerecipientcountry.

4.
Commissionproposals
10.Inviewoftheforegoing,andofthecurrenteconomicpositionof
Somalia(seeAnnex3),theCommissionproposestheallocationof
thefollowingquantities,fordeliverytoportofunloading :
-12000tcereals
500tbutteroil.
11.Noallocationofmilkpowderisproposedatthistimeinviewof
existingamplesupplies(Seepara6above).
^2.Theproposedallocationswouldbetakenfromtheexistingreserves
underthe1978foodaidprogramsincerealsandbutteroil.After
thisaction,thesereserveswouldstandat24200tand1990t
respectively (1) -
13.Thecostofthisactiontothe1978budgetcanbeestimated4315000EUA.
usinginternalproductpricesandestimatedtransportrates.Ofthis
2231000EUA.ischargeabletotheFoodaidbudgetand2084000EUA.
totheFE06Aonthebasisofcurrentlevelofrestitutions (seeAnnex5).
NoadditionalexpensefortheCommunityarisessincethesecostsare--
chargeabletoexistingcreditsalreadyapprovedinthe1978budget.
Conclusion
14.TheCommissionthereforeproposestotheCouncil:
-todecidetoallocate12000tcerealsand500tbutteroiltoSomalia
fromreservesofthe1978foodaidprograms;
todecidetofinancefpcwardingcostsincurredbetweenportofloadinqandportofunloading;
_~toadopttheannexedlegaltextsinconsequence.
Cereals:Initially48200t;reducedto36200tafterallocationsde<Hrf»rforproposedforDjibouti,BaliandSyria."location,decided
Butteroil:Initially1440t,inadditionto1000trefiningfrom1977program.

B.PROPOSED COUNCIL 'DECISION ANDREGULATION
COUNCIL DECISION
ontheCommunityfinancingofcertaincostsinrespectofcerealsfoodaid
underthe1978program.
THECOUNCILOFTHEEUROPEANCOMMUNITIES,
»
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
HavingregardtoCouncilRegulation (EEC)N°1703/72of3August1972
amendingRegulation (EEC)N°2052/69ontheCommunityfinancingofexpenditure
arisingfromtheimplementation oftheFoodAidConventionof1967andlayingdown
rulesfortheCommunityfinancingofexpenditure arisingfromtheimplementation
oftheFoodAidConventionof1971(1),andinparticularArticle8thereof,
HavingregardtotheproposalfromtheCommission,
WhereastheDemocratic RepublicofSomaliawouldhavedifficuIty,,inviewof.its
economicandfinancialsituation,incoveringtheforwarding costsfromthe
portofloadingofcerealsfoodaidallocatedunderthe1978program;
whereasthesecostsshouldtherefore bebornebytheCommunity,
HASDECIDEDASFOLLOWS :
■■'/,...- .' •
SoleArticle
Communityfinancingshallcovertheforwardingcostsbetweentheportof
loadingandtheportofunloadinginrespectofcerealsfoodaidallocated
totheDemocraticRepublicofSomaliaunderthe1978program.
DoneatBrussels,
<1)O.J.N°L180,8-8-1972,p.1FortheCouncil
ThePresident.

COUNCIL REGULATION (EEC)
onthesupplyofbutteroiltotheDemocraticRepublicofSomalia
asfoodaidpursuanttoRegulation (EEC)N°
THECOUNCILOFTHEEUROPEANCOMMUNITIES,
HavingregardtotheTreatyestablishingtheEuropeanEconomicCommunity,
HavingregardtoCouncilRegulation(EEC)N°830/780f25'April1978
layingdowngeneralrulesforthesupplyofmilkfatstocertaindeveloping
countriesand specialized bodies "„underthe1978foodaidprogram,(1)
andinparticularArticles3and8thereof,
HavingregardtotheproposalfromtheCommission,
WhereasCouncilRegulation(EEC)831/780f25April1978onthesupply
ofmilkfatstocertaindevelopingcountriesand specialized bodies
.underthe1978foodaidprogram.(2)providesforareserveof1440tonnes
ofbutteroil;
WhereastheDemocraticRepublicofSomaliahasrequestedfoodaidintheform
ofbutteroil;whereasitsneedswarrantfoodaidfromtheCommunity;
whereasitwouldhavedifficulty,given1t5economic-andfinancial^ituation ,
incoveringtheforwardingcostsfromtheportofloading;
whereasthesecostsshouldthereforebebornebytheCommunity,
.
(1)O.J.N°L115,27.4.1978,p.6.
(2)O.J.N®L115,27.4.1978,p.8.

7.
HASADOPTEDTHISREGULATION :
Article 1
ί ·
Ofthe1440tonnesofbutteroitprovidedforasareserveby
Regulation (EEC)N°831/78/500tonnesshallbeallocatedto
theDemocratic RepublicofSomalia.
Article 2
1111 ■ 1■!■ /'
Communityfinancingshallcovertheforwardingcostsincurredbetweentheport
ofloadingandtheportofunloading.
Article 3
ThisRegulationshallenterintoforceonthethirddayfollowingits
publication intheOfficialJournaloftheEuropeanCommunities .
/
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicable
inallMemberStates. '
Doneat
FortheCouncil.
ThePresident .

ANNEX 1
SOMALIA :ESTIMATION OFTHEFOODSITUATION :2/78
πιΐηχ1000
ProductProduction
19771977ImportsStocks
1/78Import
Requirements
1978Planned
Aids
1978Uncovered
Retirements
1978CommercialNon-
commercial
!
Wheat^1,0 24,0 55,0 27,0 57,0 35,0 22,0
Rice 1'0
ê20,0 11,0 25,0 36,0 11,9 24,1
Coarsegrains 260,0 30,0 9,0 61,0 142,0 20,6 121,4
Total-Cereals 262,0 74,0 75,0 113,0 235,0 67,5 167,5'
MiIkpowder 0 0 3,0 1,6 ■ 5,9
EdibleoiIs 7,0 11,0 "0 3,8 10/0-15,0 4,8
,5,0-10,0
(1)Includingflour,etc...,expressedintonsofwheatequivalent
(2)Sorgho/Dura,andmaize
Sources:(1)FA0(2)DelegationCommissiorvMogadishu.

ANNEX2
PROPOSED USEOF1978FOODAIDTOSOMALIA
Population (1)Annualrequirements (t)(2)
Cereals
: :–Milkpowder Butteroil
SettlementDevelopment Agency: /
KurtumWarey21000 3780 227 151
Dujumma39400 7.090 424 283
Sablaleh '- 22200 4000, 240 161
CoastalDevelopment Agency:
I « Brava5800 1040 63 42
Adale - 4900 880 53.35
Eyl2900 520 31 21-
ElAimed.200 40 2 2
TotaI 96400 17350 1040 695
(1)Adultsandchildren <
(2)Basedondailyration500gr.cereals,30gr.milkpowder,20gr.butteroil.
Λ
«o

ANNEX10.
3
SOMALIA
Basiccountrydata
GNPpercaput(1975est.):§110
Population (mid-1976est.):3,26million
,Balanceofpayments(1976):$69,2milliondeficit
Importsofgoodsandservices(1976):S221,8million
International reserves (8/1977):S82.2million
Classification :MSAcountry
FAOfoodprioritycountry.
(Sources :IBRDandIMF)
ANNEX4
Previous EECfoodaid
Cereals SMPButteroil
1970 8000t
1971
1972 15000
1973 7000
1974 5000 1060 650 ,
1975 25000-, 2000 850
1976 25000 3000 1100
1977 25000 2750 1600
Total 110000t– l
8810t 4200t.

11-
ANNEX 5
FINANCIAL STATEMENT ,,
. •. J
', • ••'.• i
■ ■ ■■ ■
1.Relevantbudgetheadings
-1978budget-article920,post9201
'ι · !
-1978budget,article921/post9212 v. . '
-1978budget,article600,post'6001 ]
-1978budget,article620,post6201 f!
' v . I
2.Budgetheadingdescriptions '
-Post9201:"Foodaidincereals-1978program"
-Post9212:"Foodaidindairyproducts-1978butter/butteroiIprogram"
-Post6001:"Restitutions forCommunityfoodaidincerealsforcurrentyear1'
-Post6201:"Restitutions forCommunityfoodaidindairyproductsfor
- currentyear".
3.Legalbasis
-Cereals :Councildecisionof30January1978
-Butteroil :Councilregulation •831/78 25/4/78
4.Description,purposeandjustification
AllocationoffoodaidtoSomaliaunder1978programs.
: i
I ■ )
* . !

Credits
5.1Computation
-Cereals :
Commodity
Seatransport
Restitutions12000tx163(1)EUA/t
12000tx50EUA/t
12000tx79EUA/t
-Butteroil :
Commodity
Seatransport
Restitutions500tx3367(1)EUA/t
500tx150EUA/t
\
t
500tx2272EUA/t
-Totalnetcost
(1)Internalpriceincludingtransporttoport
5.2Imputation
IllLeJX:Cooperationwithdevelopingcountries
-Post9201-Cerealsfoodaid
•~Post9212-ButteroiIfoodaid
IlUe.VI :FEOGA
-Post6001
-Post6201-Cerealsfoodaid
Dairyproductsfoodaid1956000EUA
600000
2556000
948000 '
1_608_000 EUA
1684000EUA
75000
1759000
1136000
623_000EUA
2231000EUA
1608000
623000
2231000EUA
948000
1136000
2084000EUA
5.3Additional expenses
Thisactiondoesnot,involveexpensesfortheCommunityadditional
tothosealreadyapprovedunder1978foodaidprograms.
Control
FinancialreguUtion^^^^
OftheCommunities . y