CELEX: 51978PC0712
Language: en
Date: 1978-12-12 00:00:00
Title: Recommendation for a COUNCIL DECISION extending for the year 1977 the Convention between the European Economic Community and the United Nations Relief and Works Agency for Palestine Refugees (UNRWA) (submitted to the Council by the Commission)

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COM (78) 712
Vol. 1978/0269
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                   COM(78)712 final.
                                                   Brussels . 12 December 1978
                         Recommendation for a
                             COUNCIL DECISION
 extending for the year 1977 the Convention between the European
 Economic Community and the United Nations Relief and Works Agency
                    for Palestine Refugees ( UNRWA )
            ( submitted to the Council by the Commission )
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 C0MC78) 712 final .        V        t j.              j
 ---pagebreak--- CONTENTS
    I.    Explanatory note
          A : Introduction
          B : Operation of Convention during 1975 / 76
          C : Extension of Convention for 1977
        1 Tables
          1.  UNRWA : income and expenditure     :     1971-1977
          2.  E.E.C. contributions   1971-1977
          3.  E.E.C. contributions under Convention
          4.  Supplementary feeding program    :    expenditure 1975 / 76
          5.  UNRWA request for 1977
          6.  Requested cash contribution to 1977 supplementary feeding program
   IX .   Financiat Annex
  III ,   Proposed Council Decision            • 1 ■ :   .
              Exchange of letters continuing Convention for 1977 with certain
          amendments .
 ---pagebreak---                           EXPLANATORY       NOTE
INTRODUCTION
Purpose of communication ;
/I ) This' communication proposes to the Council the extension , for the year
     1977, of the assistance given by the Community to the United Nations
     Relief and Woi-ks Agency for Palestine Refugees CUNR-WA ), under the
     multi-^annual: Convention already concluded with the agency .
Relations betweerv UNRWA and E.E.C.
2)   E.E.C. Member States have been major contributors to UNRWA since
     the agency was set up in 1949/ 50 following the partition of Palestine ;
     They have always been as a group either the second largest ( after U.S.A. )
     or the largest contributor to its finances       ( See Table 1 ). It should
     be recalled that UNRWA depends wholly on voluntary contributions , and
     that these in most recent years have fallen short of operational expenses
3)   The Community as such has contributed to UNRWA since 1970 / 71 , principally
     by way of food aid .    This consists at present of     :
        a)     the Basic Rations Program ( monthly free distribution , to all
                    eligible refugees ) : wheat flour , butteroil and sugar ,
                    together with a a sh contribution to distribution costs ;
        b)     the Supp ler,;entary Feeding Program ( special nutrition , limited
                    to vulnerable groups ) : wheat flour , rice , sugar and
                    skimmed milk powder , together with a cash contribution
                    intended to cover the costs of running the program .
     A summary of Community contributions to UNRWA since 1971 is given
     in Table 2 .
4)   A substantial part of the above contributions is the subject of the
     three-year Convention between UNRWA and E.E.C. , the remainder being
     covered by annual exchanges of letters under normal food aid procedures .
     The Convention provides for      :
        a ) the sugar for the Basic Rations Program ( all the Program 's
                    requirements ), with a contribution to distribution costs ;
 ---pagebreak---        b ) the commodities ( listed above ) for the Supplementary Feeding Program,
                   with a contribution to the running costs .
    Details will be found in Table 3 .
5 ) The present Convention runs in principle for three years from July 1975,
    but needs to be extended periodically within those three years ; this
    proposal is for the extension for the calendar year 1977 . A previous
\-  Convention ran from July 1972 to June 1975 . It is generally recognized that
    the present arrangements have become complicated, and a proposal to
    combine all E.E.C. contributions into a single Convention is under
    consideration .
OPERATION OF CONVENTION ,   JULY 1975 - DECEMBER 1976
Basic Rations Program    :  Sugar contribution
6)  For the period July 1975 - December 1976, the E.E.C. shipped 6 000 t
    sugar for . use in the basic rations program . In normal circumstances ,
    9 000 t . would have been shipped and distributed for this eighteen month
    period ; however net requirements were reduced in view of substantial
    shipments made at the beginning of the period under the agreement for
    the previous year .
7)  Sugar rations issued to refugees totalled 8 593 t , some 95 % of the
    quantity planned .   The shortfall was largely the result of the civil
    war in Lebanon , although UNRWA reports that it was possible in both
    zones to maintain the basic rations program to a surprising degree ,
    the average number of monthly recipients in Lebanon having fallen only
    to 92 300 from the normal total of some 101 000 .       The. ration was however
    reduced from 600 gr . to 500 gr . owing to disruption of supplies .       In
    the other four areas    ( Syria , Jordan , West Bank , Saza )  distribution
    proceeded normally .
8)  The cost of inland transport and distribution is estimated at
    S 266 500, or S 31 / t on average , the amount varying considerably from
    area to area .   Towards this the E.E.C. contributed at the rate of
    18,50 UA /t , which produced# 2 3,1 2/ t , or about 75 % of estimated costs .
    An increase is sought for 1977.
 ---pagebreak---   Sypplsrcentsry Feeding Frogram
 9)   During the period under review the civil war in Lebanon seriously
 ''   affected the smooth running of the Supplementary Feeding Program .
      In Lebanon itself , the program was interrupted in many areas for
      varying periods and three supplementary feeding centres were looted
      or seriously damaged .     Other fields suffered from loss of contact with
      headquarters and from shortages of commodities usually supplied through
    ' Beirut .-               '
  t
10 )  Largely as a result of the war , there was very considerable underspending
      during the eighteen month period , both of commodities and of cash donated
      by the E.E.C. The position is summarized in Table 4, from which it .will
      be seen total expenditure amounted to only S 3 986 000 instead of a planned
      S 5 081 000, a difference of S 1 095.000 . This figure can be analysed
      as follows   :
                                                             S x 1000
                     Savings on staff                     :     364
                     Savings on corned beef purchases :         578
                     Other savings                         :    153
                                                              1 095
11 )  The savings on staff arise essentially for two reasons           :
      a ) appromixately § 214 000 from saving in wage rates , notably in cost
          of living allowance, where increases were less than expected .
          This was offset to an " extent by certain increases in the costs of
          temporary labour .
      b ) the remainder , § 150 000, from planned arid unplanned reductions
          in the number of staff employed in the supplementary feeding program .
12 )  The savings on corned beef can ulso be attributed to two causes           :
      a ) a marked fall occurred in the price of the corned beef bought in France ;
          UNRWA paid an averac ^ of S 1,18/ kg ., compared with the planned cost
          of S 2,06 based on the prices and exchange rates prevailing in
          November 1974 .   This produced a savinn of § 360 000 ;
      b ) dnly 413 t were bought during the period , instead of the 520 t that
          had been planned out could not have been consumed in view of the
          situation at the ■ ime .    This produced a saving of S ^ 18 U^0 .
13 ) The most importan . . . ^rt.'^er savings were on purchases of other foodstuffs,
       principally as a result of redded r^'jiremerts but s !- s0 of certain faUs
       in unit prices .   These savings were upon    :
                          Toiiwto paste ( bought in E.E.C. )        & 24 000
                          Pulses                                    ^    53 GOO
                          Fresh foods                               ® ■ 50 000        ,
                                                                                   m 9 * •
 ---pagebreak---                                                                                                     Γ        '
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                                                             I                                      1
         f
    14 )      A further favourable difference arose on the conversion into dollars
/ . '         on the EEC cash contribution of 4 212 000 UA . This was calculated
    I         on the basis of UNRWA 's estimated requirement for 1975 /76 of 8 5 081 514
              ( after negotiated reduction ) using the IMF rate of ^ 1,206349 as                       *- '■
              requested by the Budgetary Committee . Actual payment was made at the                      r
       :      rate ruling during 1976 (8 1,25 ), resulting In a difference of some'                 {
         * 8 184 000 .                                                                              ».
                                                                                                          "
         £.                                ...              ,,                                      j        ;
    15 )      The surplus over the eighteen month period should be viewed in the
              context of operating the supplementary feeding program since 1972 ,
              when the EEC first started its support . During the first Convention
              ( 7 /72 to 6 /75 ) expenditure was generally covered by contributions
              except for 1973 / 74 ; over the three years there was a small surplus
              of 8 390 000 on a budget of 8 7,1 million .      As regards 1977 , estimates
              made early in 1978 show expenditure of approximately 8 3,0 million ,
                                                                                     ,     ■   ν ·
              which is the amount now being requested as EEC contribution
              ( CF .  Part C of this communication ).       •'    -                                       *
    16 )      The savings of 8 1 095 000 'were used for the purchase of flour
              for free distribution to refugees under the monthly rations program .
              Approximately 6 640 t were bought for this purpose , on the market of
              the Community, at an average price of 8 165 / t . This enabled the Agency          ,|
              to avoid a further reduction in monthly rations , beyond that which had
              already been imposed by the general budget deficit for the year .
    17 ) Bearing in mind UNRWA' s chronic financial problems and also the                         1
              unprecedented difficulties overcome during the period 1975 / 76,                     t '
              the Commission considers that no attempt should be made to recover 1                j ;
           , the money underspent on the program, whether by direct reimbursement            -    j '•
              or . by reduction in contributions for 1977 .    It is therefore proposed           I "■■■
. . ; , that the Council take note of the situation,, but take np further action.                 j "*•
                                                                                               " .)
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                                                                                                  i
 ---pagebreak---    P.     EXTENSION OF CONVENTION FOR 197?
         Penod of extension
         18) The . request from UNRWA ( summarized in Table 5 ) concerns, the twelve
                months from January to December 1977. The previous period lasted
                eighteen months ; that was a transitional arrangement intended to
                bring each year of operating the Convention into line with the E.E.C.
                and U.N. accounting year. It has not been possible to prepare a proposal
       |        earlier because of the disruption caused by the civil war .
         Details of request
       r-~~
         19) UNRWA requests that the E.E.C. continue to contribute
                     a) the annual requirement of sugar (6 000 t ) for the basic rations
                        program, together with a payment towards internal transport and
                        distribution costs ;
                     b) commodities ( flour, rice, sugar ) required for the supplementary *
                        feeding program, together with a payment towards the cost of
                        purchasing ^ other commodities ( mostly in Europe ) and the costs
             i          of    running „ the program .
               The request can be evaluated at i 6 395 000 (4 724 000 JEUA ),
               of which § 3 180 000 is in cash, the balance representing the estimated
               market value of the commodities donated, and shipped by the f.E.C.
       Basic rations program ( sugar )
       20) The annual requirement of sugar for the basic rations program is 6 000 t,
               which it is proposed       the - Community should continue to supply on
              CIF terms as before . No donations of sugar are received from elsewhere ( 1 )
       21 ) UNRWA has also requested an increase in the contribution towards inland
              transport and distribution expenses, from § 23,125 / t (S 138 750 ) to
              S 38,667/t (S 232 000). It is proposed that the Council should agree '
              to a contribution of thirty dollars ( approximately 22,16 EUA).
              which is in line with a similar contribution already negotiated by the              ;
              Commission for normal 1977 food aid deliveries of cereals and buttercil
             for the basic rations program.                                                . . ■ j
                •  '       .  .                '     ■       .                    ,   '  •       !
                                                                ■                   ■          'f
( 1 ) It should be noted th&t the Community in fact already decided to supply
      this sugar , for a period of. three years, by Council Regulation 1034/ 76
      of 30 April 1976. 197' is the second year of the three . This provision
      in the Convention is therefore a matter of form.
 ---pagebreak---                                                                                            6.
      Supplementary Feeding Program            -     commodities
      22 )    Contributions requested in kind are            :
         ,   v        -     171   t     rice ;
                      - 2 . 450   t     wheat flour ;
                 •    ~     102   t . sugar .                            •.
             These are at the same annual level as in , previous periods . The amounts
              fall within allocations already decided in favour of UNRWA under the
    i         1977 cereals food aid program ( in the case of rice and wheat flour )/
    )         and under the Council decision of 30 -April 1976 ( ir( the case of sugar ) ( 1 )
      23 )    No request was made for skimmed milk powder for 1977, although the
              supplementary feeding program has an annual need for this commodity .
             Adequate stocks exist for the time being , as a result partly of
              disruption of the school milk program during the Lebanon civil war
              and partly owing to suspension of the program in certain areas as
              an anti-cholera measure .
      Supplementary Feeding Program -              cash
                                           '                   I
      24 )    The contribution requested in cash is now 9 3 000 000, a decrease
              of S 337 000 from the amount requested earlier in 1977, following
              reviews carried out during the year .
      25 )    As in previous years , the cash contribution is intended to cover
              the following       ( cf . Table 6 )    :
                 a ) Purchase of preserved foodstuffs - corned beef , tomato paste ,
                      pulses , and burghol , the first two to be purchased inside the
                    . E.E.C.    ( Estimated cost        : § 482 000) ;
                 b ) Purchase of other foods , supplies , premises , contractual services /
           v          and staff costs ( the last being the major item ). The estimated
                      cost is 9 2 550 000, offset by a contribution of 9 32 000
                      recovered from the Jordan Government .-
      26 )    The contribution requested for 1 977 compares with 1976 expenditure
              of 9 2 838 000, an increase of 9 162 000 , ( 5,7 % ). .. The Increase is due (
              essentially to two factors           :
                 a ) a rise in staff costs of t 251 000, or 14,7 Z , UNRWA having been \
                      obliged to grant large cost-of- living increases as a result of
                      inflation in all areas of operations ; '
                 b ) increased costs of local purchases , especially fresh foods
                      ( 21 % increase ), again as a result of the inflation that was
                      particularly marked in Jordan , Syria and Lebanon .
1 ) aArrangements
         matter of form .
                         have already been made for shipment ; this provision 1s again
 ---pagebreak---                                                                                   X ,
                                                                                          7.
      These two items are however heavily offset by a fall in the costs of
       commodities purchased abroad, in particular corned beef purchased in
      Europe .
27) It should be emphazised that the above estimates of 1977 supplementary
      feeding program costs are still provisional , as a result of disruptions
       caused by the aftermath of the Lebanese troubles and by two moves of
      UNRWA 1 s head office ; the figures are the best available at the time
      of preparing this document .       It     Is       possible
      that the Commission may introduce modifications during discussions in
      the Council .
Budaet    charae
28)   The estimated cost of the requested contribution is 4 724 000 EUA .
      This can be broken down as follows    :
                                                               ( EUA x 1000 )
                                              Cotrimodities         Cash      Total
      - Basic rations program :                  *'
         6 000 t sugar                             tl 703           , 133     1 836
      - Supplementary feeding program :
         sugar , flour , rice                         672                     2 888
     ' Purchase of other commodities,                              2 216
         and running costs
      7 Total                                     2 375            2 349      4 724
      Further details are given in Table 5 .
29 )  The contribution is chargeable to Chapters 92 ( Food Aid ) and 94
      ( Cooperation with developing countries ) of the 1977 budget .
      No new expenditure for the Community arises since sufficient appropria­
      tions already exist under the appropriate budget headings * A financial
      annex is attached .
30 )  Since the cash contribution has not yet been paid or committed, owing
      to the difficulty in establishing requirements for 1977 < See above >,•
      a carryover <r* th ? appropriation under Article 9':S hs :» frsen made •C19~6~7'8 ).
                                                                                 A / 9 re
 ---pagebreak--- Action proposed
31 )  The Commission considers that the Community should continue its
 ' i. support for UNRWA , and should accept the /request for the continuation
      of the Convention for the year 1977.    The Commission therefore '
      proposes that the Council take the following decision of which
      the text is attached in Annex /:•"                                    /
          - Council decision ( EEC ) concluding an agreement / in the form
            of an exchange of letters , to extend for the year 1977
            the Convention between UNRWA and the E.E.C. dated 20 July 1976 .
 ---pagebreak---        Table -)                                                                                          V     ( US Dollars * 1000)
                                             UNRWA' : INCOME AND EXPENDITURE 1971 - 1977
                                                                                                             r
                                           1971              1972 •       1973           1974        ' 1975          1976             1977
                                                                                                                                 ( prov .)
                                                                                                          .
      INCOME
                                 ι
      European Economic Communit )t
| - member states :        B     J         . 507               382          262            674             771       996              1110
!                          5,3   I           715               914          890          1109            1186       1567              1800
                                           3476              3430         4968           2963            3304       3312              3260
                                           1445              1262         1269           1343            1295       1568              1320
                                                                 65          80       !    100              81        89               100
                           Irl .    ;          60
                           I                 188               198          160                            148       200               200
                           L                    4       !        16           5              6        •    144        54                10
                                             176               180          135   •        565 .         1562       1837              1940
                           N   ,
                                           4512              4886         4960           4760            6809       6929              8500
                           UK
                                                        r
                                          11083         I-  11333       12729           11673           15300      16552           . 18240
 I Community                       j         240             2410         6891          24041           13771      14321      |      16570
 I Total EEC - 9                      i   11323             13743        19620          35714           29071      30873             34810
  ! USA                                   22981             24376        23200      !   28285           42055      38700             48700
                                           1677               2322         2069           3090          16234      14847              5830
  ; Ar#D states                                                \
  | Other income                           7942              «947        17643      |   18231    • ;    26218      30299             34640
     TOTAL  INCOME                        47675         J 49388          55269          85320          113578     114719       I     123980
                                                                     33SS5SSSSSSSS tsss&ssssssasss :
   I TOTAL EXPENDITURE                    48432
                                          SSSSa.MvSaS
                                                            52126        62532          88149          111809     114775             127460
                                        .   ( 757 ),        ( 2736 )     ( 7263 )       ( 2829 )        1769                          «500 )-.
     SURPLUS / ( DEFICIT )
     Source ; Principally UNRWA report,s and estimates .
 ---pagebreak---                                              UWA :   EEC CONTRIBUTIONS 1971 - 1977
    \
                                          1971         1972       1973       1974              1975        1976        1977        TOTAL
                                                                                                                     ( Drov .)
COMMODITIES Cmtn )
Cereals :                                4500          21945      20000        20000              25000     25000      35000      151445
In form of :
      Flour    -                     '   2980          11765      11184         13117        .  . 14241  .  17842 ..   25984    .  97113
      Rice                                              3240       2412           150      I         171        85        171        6229
                                                                i
Skimmed milk powder                                                1100          1600 .            2000       700                    5400   I
Butteroi I .                                                       2000    I     2000              3000      3000       3200       13200
Sugar                                                              6150          6062    j         6094      615.3      6102       30561
                                                                                                                               h-        -1
                                                   I
Estîmated conxodity value <8 000 )
« β ––––––––––––––––––––––––––––––––
                                          240    J      1441       4614        12479
                                                                                         !
                                                                                                 10334      10554     12596        52258 J
Cash contributions (S 000 )                                                               r
Basic rations                                             50        107           110     i         167       221        972        1627
Supplementary feeding               J                    919       2170          2571              3270      3546      3000       15476   I
                                                                                 8881   !
Education                           |                                                                                               8881  I
                                       I
Total cash                                               969 .     2277        11562               3437      3767      3972       25984
                                       j
Total conmodi t ies dnd cash              240           2410       6891        24041           13771       14321     16568        78242
                     ( $ o o o)
 ---pagebreak--- NOTE : Evaluations arejbased on UNRWA 's yearly estimates of commodity values . These are slightly lower than £€C~ figures ,
       mainly as a result of UNRWA 's practice of valuing butteroil in terms of vegetable oil replaced . There are also
       certain differences resulting from the year by year allocation of contributions . The commodity quantities are
       taken from the EEC annual food aid programmes .
 ---pagebreak---    Table 3
                                                   EEC ,   CONTRIBUTIONS   UNDER CONVENTION
i Convention year                        1972/ 73             1973 / 74           1974 / 75          1975 / 76        1977 ( proposed )
j Period of appLication                 July-June            July-June           July-June           July-Dec .
                                                                                                                    | Jan.-Dac.           I
    Durât ion                            12 months            12 months           12 months          18 months            12 months
                                                                             '                 I
| Contributions in kind (1)                                                                                        I
9       Wheat flour                       3070 t              1868 t              2353 t              3675 t            2450 t
        fHce                               240 t                122 t              150 t               256 t              171 t
                                                                                                 I
i       Skimised milk powder              1100 t              1600 t               300 t              2400 t
I
a
        Sugar ( supplementary feeding )     150 t                 62 t              94 t               153 t              102 t
|       Sugar (basic rations)             6000 t   (3 )
                                                       "1
                                                              6000 t              6000 t      J       6000 t
                                                                                                                    I   6000 t           J
        Value ( estimated ) ( 2 > ,      2.534 Hua           3,273     Mua       3,362    Mua        4,530    Hua      2,375 Mua
                                    I
I       Contributions in cash                        .   I                                         =              I       ~             Π
        Basic rations sugar                                       71       !         71                111                133
S       Supplementary feeding           1,610                1,610         !     2,161               4,212             2,216
i       Feeding centres                    42                                        • *    -
                                                                                                        -
        Total contributions             4,257 Hua             4 . 954 Mua         5,605 Mua           2,853 Mua         4724   Mua
  ( 1 ) Commodities foric part of total EEC contributions listed in Table 2
  ( 2) Internai prices, less restitutions , plus sea transport
  ( 3) Including 4C00 t already decided before signature of Convention
 ---pagebreak---                                                                                  TATîUR 4
            SUPPLEIfFJNTARY FEEING PROGRAM : July 1975 - DgeCTber 1976
         PLANNKD AND ACTUAL : CO!-^ODITT?S DISTRIBUTE AND ^XPRNDITim1?
A * COMMODITIES DISTRIBUTED               (metric tons )
                                  j       Planned         An tuai                    Va ri an no
                                  !
                                  I
    Wheat flour                           3 675           3 113                                56 ?
    Ri ce                           I        256             23 2
    Surar                                    153 ■           137                                 16
    Skimmed milk powder                   2 400           1 153                           1 247
B. EXPENDITURE '                          (US dollars 2 1000)
                                                                      Γ_
                                                                      ι
                                          Planned         Actual                   Varinnr ^
    (a ) Purchases atroad             '■
          • Corned "beef ( tJEC )        1 067              489                              578 ( 1 )
          • Tomato paste (EEO )               56             32                                 24
          • Other purchases                 248             157                                 81
                                         1 371              688   I!•
                                                                                             683
                                                                   (
   ("b ) Local wrnhacc -?                  709             751    j                            4a
                                                                  ♦
                                                                  1
   ( c ) Staff 2° "t r,               j  2 911           2 547    !                          164            i
                                                                        MrtfwrLT–«r1 iiiinffwuiuwwwji auwMnwJ
         Total exper.sea               1 5 08l
                                       I                 3 98g    j                      1 ^95 f
 ---pagebreak--- (1 ) of which p 360 000 due to reduced price , $ 218 000 due "to reduced
      quantities#
( 2 ) in addition to favourable varvdance on exchange of $ I84 000, the
   , EEC cash grant of 4,212 Mua having produoed S 5 265 000.
                 /
 ---pagebreak---                            UNRWA       REQUEST        FOR   1977
COMMODITIES    (1)                                           US g   x 1000
  I*  Basic rations program
      6 000 t    sugar                                           2 305
  2.  Supplementary feeding program
         171 t   rice
      2 450 t    wheat flour                                       910
         102 t   sugar
                                                                 3 215
CASH
  1.  Basic rations program
      Inland transport and distribution costs ( 3 )                180
  2.  Supplementary feeding program
      a ) Purchases abroad        351 t    corned beef    )
                                    28 t  tomato paste )           482
                                  188 t   puises          )
                                  141 t   burghol         )
      b ) Other expenses                                         2 550
      c ) Costs recovered from Jordan                              ( 32 )
                                                                 3 180
 TOTAL                                                           6 395
 (1 ) Evaluation at estimated world prices delivered port of unload
 <2)  Assuming 1 EUA     =  § 1 , 35363   ( 11-1978 )
 (3)  Assuming     S 30 per tonne .
 ---pagebreak---     ■ t    .                                                                                                             ■
• »'                                            '                               ■■
  !                                             '                                                        ■         _ .
                                                •                                                                          Table     6
 *                                                                        ■
                                       REQUESTED                      CASH     CONTRIBUTION         TO  1977
                                             SUPPLEMENTARY                           FEEDING   PROGRAM
 I.                                    ––––––
                                                          Hot                 Κΐΐΐε           OVaer
               Z IIK                                     Hoal               ΡΓΟ£Γα·Χ3ί       Baticna        Adain#           Total
                                                              S                    *             S            *                  S
      JU Purees ? oft                           l
          a ) Comed bcof – fcoi
               oeal euality                             164,100                    m
                                                                                                                             164,100
          t>) Comod fceof - protoin                                                         173,000                          173,000
               •uppltfaont rvialitr
          c ) Toaato past *                     .         25,200                   am                                          25,200
          d) Puloes                                       89,000                                                               89,0'JO
          •) Bar^hol                                       30,700                                                              30,700
                    Tot*l "A"                           309,000                              173,000                         482,000
      B, 1 . Otfrpr nurciLQQod foou
               eur>pltor. t
          a) L0c.1l purchao®3 ( in
               particular franh
                fruits and YorotaMao)                   408,000                     m            m                            <03,000
          b) Vitamino                                      12,000                                8.000                         20, OCO
                                                                                                                       I
           2* Othor pudt)11o8             I                46,000              17,000            1,000         1.000
                                                                                                                       I        65,000
           3 # Preratrcnl
           a) R entai®                                        8,000               5.COO                                         13,000
           b) n.iintcnonôd                                 17.000                 5,coo                                1
                                                                                                                                22,000 ,
           o) Utllitlos and
                clo3nlng                                      8,000                3,000                                        11,000
           4 « ContrActual corvi oaa >
                Principally bakiag o*
                bro.:d              "■                      53,000                  m            m                              58,000
           5» Stnff coatot
           Ci) Eusunoratioû                       1,330,000                   380,000                      . 223,000        1,933,000
           b) Travol coata and                                                                                 6.000             20.000
                clothinr                                    10 , COO               4,000
                     Total -3"                    l,357,OCO                   414.COO             9,000      230,000        2,550,00
        C. Costa roeovarod froa
            Jordan Govcmsont                              ( 32.CC0 )                                                           ( 32,000 ;
                                                                              414,000           182,000      23C.CCO        3,000,000 •
                     HT? TOTAL
                                            | 2,174,000
                                              .... . J.  1 J.   - - _ I .
 ---pagebreak---                         FINANCIAL         ANNEX
RELEVANT BUDGET HEADIN6S
1977   BUDGET
       * Item 9201    :    " Food aid in cereals - 1977 Program'
       • Item 9221    :    " Food aid ( sugar ) - 1977 Program"
       . Article 940     :    " Expenditure resulting from Convention between
                                EEC and UNRWA "
DESCRIPTION AND PURPOSE OF OPERATION
Continuation for 1977 of Convention between EEC and UNRWA granting
contributions in commodities and in cash for use in UNRWA 's feeding
programs for Palestine refugees .
LEGAL BASIS
a ) Cereals   :   Council decision of 8 February 1977 on the 1977 EEC food aid
                  program in cereals .
 b) Sugar     : Council regulation ( EEC ) 1034/ 76 of 30 April 1976 on the
                  supply of white sugar to UNRWA as food aid .
 c ) Convention : Council decision of 20 July 1976 on conclusion of the
                  Convention between the EEC and UNRWA concerning aid to
                  refugees in countries of the Near East .
 ---pagebreak--- APPROPRIATIONS
4.1 Calculation of costs
    a ) Item 9201     -   Cereals
             2 450 t f lour     ( équivalent 3 252 t cereals )
                                               EUA / t                 El'A
                                                 267               654 000
                Internal price
                Restitution                      106               259 000
                                                 161                395 000
                                                   50               123 000
                Transport
                                                 211                518 000
                 171 t rice    ( equivalent 44 1 t cereals )
                                                EUA / t                 EUA
                                                  775 :              133 000
                 Internal price          :
                                                   94                  16 000
                 Restitution
                                                  681                117 000
                                                    50                   8 000
                 Transport
                                                  731                125 000
                                                                      643 000
           - Total
       b ) *tem_9221__-__Sugar
           -   6 102 t white sugar
                                                  EUA / t                 EUA
                                                   424             2 588 000'
                  Internal price
                                                    190            1 160 000
                  Restitution
                                                    234            1 728 000
                                                     50                305 000
                   Transport
                                                    284            1 732 f:'C0
            -   Cash contribution
                Inland transport and distribution for basic rations program
                6 000 t     at      .S -zr\
                                       30 V/+t                 - :      133 000 EUA
                                                                    1 865 000 EUA
                Total
 ---pagebreak---          c ) Article 940  -  Convention
             Contribution § 3 million   ( see text )
             Conversion to EUA at assumed rate     8 1,35363 ( 11-1978 )
                                                                2 216 000 EUA
         d ) Total appropriation                                4 724 000 EUA .
    4 .c Incidence of costs
         a ) The operation does not imply additional expenses beyond those
             appropriations already in the 1977 budget .
         b ) The commodities have already been delivered     ( on the basis of
             Council decisions fixing food aid programs ) and have been charged
             to the 1977 budget appropri ations for food aid in sugar and in
             cereals . The cash contributions have not been paid ;
               a carryover of the 1977 budget appropriation was agreed on 19 June 1978
5. CONTROL OF EXPENDITURE
   Financial regulation of 21 December 1977 applicable to general budget of
   the Communities .
 ---pagebreak---                                  COUNCIL     DECISION
           * extending for the year 1977 the Convention between
              the European Economic Community and the United Nations
            . Relief and Works Agency for Palestine Refugees
                                     ( UNRWA ) .
THE  COUNCIL   OF   THE   EUROPEAN     COMMUNITIES
Having regard to the Treaty establishing the European Economic Community
and in particular Article      113 ;
Having regard to the recommendation from the Commission ;               '    -
Whereas on 20 July 1976 the Community concluded a Convention with UNRWA
concerning aid to               refugees in the countries of the Near East
during the period July 1975 to December 1976 ( 1 ) ;
Whereas under Article 10 the Convention may be extended "for subsequent
periods with or without amendment by agreement between the two parties
until 30 June 1978 ;
Whereas the Convention should , subject - to certain amendments "be extended for -the
year 1977 in order that the aid of the Community can "be granted In a comprehensive
and continuous fashion ,
(1)  0J ..L.2.03 , 29.7.1976 , p. 40
 ---pagebreak--- HAS  DECIDED     AS  FOLLOWS  :
 !
                                    Article    1
         The exchange of letters concerning the extension until 30 June 1977
of the Convention concluded on 20 July 1976 between the European Economic
Community and the United Nations Relief and Works Agency for Palestine Re­
fugees ( lETT.vA) concerning aid to refugees in countries of the Hear East is
hereby approved on "behalf of the Communities .
The text of the said exchange of letters is annexed to this Decision .
                                    Article    2
         The President of the Council is authorized to designate the persons
empowered to sign the exchange of letters and to confer on them the necessary
powers to bind the Community .
                                                   Done at              ........
                                                         For the Council ,
                                                          The President
 ---pagebreak---                               EXCHANGE OF LETTERS
( a ) Letter from EEC to UNRWA
                 With reference to the Convention concluded on 20 July 1976
between the European Economic Community and the United Nations Relief and
Works Agency , for Palestine Refugees concerning aid to refugees in the'
countries of the Near East , the Community proposes that in accordance with
Article 10 the Convention be extended for the year 1977 , subject to the-
following amendments :
                  ( i ) For the year 1977 the contribution mentioned in Article 4
                        Paragraph 2 shall be thirty US Dollars per metric ton .
                ( ii ) The following text is joined to the Annex of the Convention
 ---pagebreak---  SUPPLEMENTARY   FEEDING  PROGRAM
  Second period of Convention    ( Calendar year 1977 )
' 1.  Contributions in kind
      Wheat flour                     2 450         tc
                                             metric tons
      Milled rice                       171
                                        1 71 metric tons
                                                    to
      White sugar                       102
                                        102  metric
                                             metric tons
                                                    tc
  2.  Contributions in cash
      3 000 000   U S    dollars
  3.   Foodstuffs to be purchased in the Community
      Corned beef                     approximately     350 metric tons
      Tomato paste                    approximately      28 metric tons
      The Community would be obliged if the Agency would signify whether
 it is in agreement with this proposal .
 ---pagebreak--- (b)   Reply from UNRWA to EEC
            The Agency acknowledges receipt of the Community 's letter
dated             and reading as follows    :
            ( Text of EEC letter to UNRWA )                ^
            The Agency wishes to confirm its agreement to the above .