CELEX: 51973PC0743
Language: en
Date: 1973-05-16 00:00:00
Title: COMMUNICATION FROM THE COMMISSION TO THE COUNCIL concerning implementation of the Agreement concluded with the ICRC for the supply of food aid to Nigeria and East Pakistan#RECOMMENDATION OF A COUNCIL DECISION concluding an Agreement between the European Economic Community and the International Committee of the Red Cross altering the amounts specified in the agreement relating to the supply of cereals as food aid signed on 20 January 1971 (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 743
Vol. 1973/0144
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
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file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
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 ---pagebreak--- COMMISSION CP THE EUROPEAN COMMUNITIES
                                                            COM(73)743 final
                                                            Brussels , 16 May 1973
                COMMUNICATION FROM THE COMMISSION TO THE COUNCIL
          concerning implementation of the Agreement concluded with
          the ICRC for the supply of food aid to Nigeria and East
          Pakistan
                       RECOMMENDATION OF A COUNCIL DECISION
          concluding an Agreement between the    European Economic
          Community and the International Committee of the Red
          Cross altering the amounts specified in the agreement
          relating to the supply of cereals as food aid signed on
          20 January 1971
                   ( submitted to the Council by the Commission)
  COM(73 ) 743 final
 ---pagebreak---                  A. AID TO NIGERIA IN THE FORM OP GRUEL AND SOUP
I. CONTiffTT OF THE AGREEMENT IN BRIEF
After the cessation of hostilities in Nigeria the Community decided in
principle on 20 January 1970 to make food aid available to those who had
suffered as a result of the conflict , through the agency of the ICRC .       This
aid , in the form of 600 metric tons of gruel , a complete food for children ,
and 3 000 metric tons of soup , a complete food for adults , was the subject of
an Agreement made with the ICRC on 25 March 1970"'' .
Under this Agreement the Community undertook to supply cereal products for the
manufacture of gruel and soup , amounting to 3 99^ metric tons of unworked
cereals and 645 metric tons of skimmed milk powder ( of . Annex 1 ), these
quantities to be set against the agreements made with the ICRC for 16 667 metric
tons of unworked cereals ( for 1968-69 ) and the agreement for 3 000 metric tons
                        2
of skimmed milk powder .
Responsibility for manufacturing and transporting the gruel and soup was left
to the ICRC but the Community agreed to refund manufacturing costs - including
expenditure on other ingredients necessary for their manufacture - and costs
incurred between the FOB stage and CIF stage , on production of documentary
evidence of such expenditure .   For this purpose the Council decided to
allocate funds totalling 600 000 units of account to be set against Article 145
of the 1970 Budget .                                       .
H . ICTLEMENTATION OF- THE AGREEMENT
I. Manufacture
Between April 1970 and March 1971 » 2 551 metric tons of soup and 522 metric
tons of gruel ( net weight ) were manufactured . However , of these quantities ,
only 1 610 metric tons of soup ( gross, weight ) and 339 metric tons of gruel
were for Nigeria because a decision was taken in the meantime to allocate part
of them ( 100 metric tons of soup and 200 metric tons of gruel ) to victims of
the cyclone in East Pakistan .
                                                                  e 0 •J0 0 »
1 OJ No L 107 , 19 May 1970
2 OJ No L 84 , 14 April 1971
 ---pagebreak--- After these 2 551 metric tons of soup and 522 metric tons of gruel had "been
manufactured , the Commission agreed with the ICRC to postpone the manufacture
of further quantities since the funds that had teen made available ( 600 000
units of account ^ were insufficient to cover manufacturing costs which had
proved higher than anticipated^.
2 . TransDortation and distribution
While manufacture was in progress ( from April 1970 "to March 1971 ) no aid could
be dispatched to Nigeria because of difficulties encountered by the Red Cross
with the Lagos authorities over the very principle of ICRC intervention .
After protracted bargaining , the two parties agreed in March 1971 that the aid
would be distributed by the Commissioner for Development and Reconstruction of
East Central State .    At the same time the ICRC was given an assurance that it
would be allowed to supervise distribution .    Shipments then began but , for the
reasons given above , only part of the quantities manufactured were in fact
shipped ( 339 metric tons of gruel ( net weight ) and 1 610 metric tons of soup
( net weight )).
3 « A complete halt to the operation requested by the ICRC
In May 1972 the ICRC requested a complete halt to the operation in view of the
fact that two years after the end to . hostilities far fewer people were seeking
food aid and that , despite the assurances given , the ICRC had not been allowed
                            p
to supervise distribution .
Although fully in agreement with the ICRC 's position , the Commission preferred
to wait until the end of 1972 to see whether any further factcrs would come
to light which might suggest an alternative solution .     This has not happened
and the Commission is now convinced of the advisability of abandoning the
operation .
   Furthermore it did not prove possible as required by the Pakistan Agreement
   ( see below ), to build up stocks for Nigeria because the authorities in
   Lagos had not confirmed that they wanted to receive these quantities in
   absolute preference to any other products .
   As a result the only report on the .implementation of the Agreement forwarded
   to the Commission by the ICRC to date is a report drawn up by the
   Commissioner for Economio Development and Reconstruction of East Central
   State of Nigeria . This report , though incomplete , shows that the gruel
   and soup were distributed by the National Commission for Rehabilitation
   to the needy in the 'East Central State ", the 'Rivers State " and the
   " South Eastern State ". The East Central State was particularly appreciative
   of the operation .
 ---pagebreak---                                        -3-
                B. AID TO PAKISTAN IN THE FORM OF GRUEL A1TD SOUP
 I.   CONTEMT OF THE AGHEEESKT Iff BRIEF
Follovjing the cyclone in East Pakistan on 13 November 1970 the Community , on
 23 November lS7o\ approved an emergency relief programme for 200 metric tons
 of gruel and 1 000 metric tons of soup .   This was in addition to en emergency
 aid programme for 35 000 metric tons of unworked cereal equivalent v:hich ,
"because of the length of the procedures involved , could not satisfy the
immediate needs of the victims . These products were to he delivered through
the agency of the ICRC and forwarded "by air since the quantities specified
 could "be made available immediately by drawing on stocks originally earmarked
 for Nigeria but which had not yet been shipped .
 It was agreed with the ICRC that the Community would replace these stocks
 should the Nigerian Government confirm that it wanted to receive these
 quantities in absolute preference to any other products .    A. sum of 250 000 u»a
was set aside for this purpose .
 The Community left the responsibility for organizing air transportation to
tha ICRC and undertook to refund expenditure on transportation up to a
maximum of $ 850 000 on production of documentary evidence .
 II . IHPLHOTTATICN" OF THE AGREEMENT
 1 . Manufacture           '
 Implementation of the Agreement involved no additional manufacture because ,
 apart from the fact that the necessary quantities were drawn from stocks
 which had been made available for Nigeria , there was no necessity to replace
 these quantities by undertaking further manufacture since the authorities in
 Lagos had not confirmed that they wanted to receive these quantities in
 absolute preference to any other products .
                                                                   • « © Ie • •
    The Agreement with the ICRC was signed subsequently ( on 2 March 1971 )
    cf . OJ No L 84 ,, 14.4.1971
 ---pagebreak---                                           -4-
2 . Transportation and distribution
Shipments totalled 200 metric tons of gruel and 1 008 metric tons of soup
("both gross weight ).
( a ) The airlift "began four days after the Community decision . Between
      29 November and 7 December , 23 aircraft transported :
                            200 metric tons of gruel
                            710 metric tons of soup . ■
      The rapidity with which the Community acted on this occasion meant that
      the most urgent needs of the cyclone victims could he met .    The "bulk
      of the food had been distributed before 7 January 1971 •
(b ) All the soup was not transported by air . Early in December 1970 , a
      Vice-President of the League of Red Cross Societies and the President of
      the East Pakistan pLod Cross decided , in view of the congestion at Dacoa
      Airport , to ask donors to abandon expensive shipments by chartered
      aircraft to Dacca and instead to ship food by sea to Chittagong ,
      On 23 December 1970* therefore, the ICRC dispatched 299 metric tons of
      soup by sea ; the shipment arrived in Chittagong at the beginning of
      February 1971 •
( c ) The ICRC forwarded the following report on the reception given to the
      gruel and the soup :
      "There was a serious shortage of protein .   Normally , the main source of
      protein is fish but , since the fishing fleet had been largely destroyed ,,
      this Bsuroe was no longer available . The only problem involved in
      adding soup to family diets was that of showing people how to use it .
      Women wore trained as instructors and visited the villages giving
      demonstrations .  The soup , eaten alone or in conjunction with rice , was
      accepted very quickly , as was the gruel .  Mr Wenger and the other
      International Red Cross delegates were delighted with both products ."
 ---pagebreak---                                          -5-
               C. STATE3EMT ON THE NIGERIA AND PAKISTAN OPERATIONS
The general balance sheet below , which summarizes the detailed, "balance sheet
appearing in Annex 1 , indicates that extent to which anticipated expenditure ,
on the supply of products and in the form of cash payments , has been effected
to date .
                                Estimated tonnage        Tonnage ana     Tonnage used
                                end expenditure          funds act-      and expenditure
                                for 4 000 metric         ually set       incurred ( for
                                tons of soup and           aside         2 551 metric
                                GOO metric tons of                       tons of soup and
                                     gruel ■                             522 metric tons
                                                                         of gruel
Unworked cereals supplied             5 32 / metric         3 996                   3 595
by EEC                                    tons                               metric tons
Skimmed milk powder                     860 metric            645                     552.5
supplied by EEC                           tons                               metric tons
Cash payments made by            1 700 000     .        1 700 000 .         1 404 897
EEC for manufacturing            units of account     units of account units of account
co st s ( including purchase
of ingredients ) and -
transport costs
1 . Supply of unworlced cereal s :   The 3 99° metric tons set aside for the ICRC
( under the Agreement of 25 March 1970 ) had been set against the Agreement for
16 667 metric tons with the ICRC for 1968-69 , the difference ( 12 671 metric
tons ) being made the subject of a new agreement dated 20 January 1971 * In
view of the fact that not all of the quantity set aside (3 996 metric tons )
was used , the Commission considers that the tonnage specified in the
Agreement of 20 January 1971 should be increased by the quantity not used -
that is to say by 401 metric tons - thus bringing the tonnage covered by the
new Agreement to 13 072 metric tons .
2 . Supply of skimmed milk powder,;     Of the 645 - metric tons set aside for this
operation , 552.5 metric tons have been made available for manufacturing
purposes .    The difference – 92 . 5 metric tons     has been used for other purposes
within the terms of the Agreement for 3 000 metric tons .         This Agreement has
now been fully implemented .
3 « Cash payments :    The following have been refunded to the ICRC :
    – the total cost of manufacturing 2 551 metric tons of soup and 522 metric
       tons of gruel and the total cost of transporting aid to Nigeria by sea
       ( making a total of 596 540 units of account ).
                                                                       0 « »/ « • •
 ---pagebreak---       The oost of purchasing ingredients , including soup concentrate , necessary
      for the manufacture of the soup and gruel have "been refunded to the
      ICRC , as agreed , under the heading of manufacturing costs .  The quantities
      of soup concentrate aotually used fell so far short of the original
      estimate that one of the manufacturers has approximately 50 me trio tons
      of it still available .   The Commission suggests that , as requested "by the
      ICRC , this tonnage should he left at its disposal for use in relief
      operations .  The ICRC would he free to choose the "beneficiaries and would
      assume responsibility for transportation , the understanding being that
      the food is distributed free of charge to population groups in developing
      countries .
    - The bulk of the cost of transportation to Pakistan .    Only the cost of
      air transportation has been refunded so far ( 808 357 units of account )
      since the Agreement makes no provision for the reinibursement of the oost
      of sea transportation which in this instance amounts to PS 78 434*90
      ( 19 217 units of account ). It seems appropriate , therefore , that the
      Community should adopt a decision approving such a refund from the funds
      earmarked for this purpose in the 1972 Budget (Article 400 ) and carried
      forward to 1973 .
      If this refund is made , cash payments will show a saving of 275 886 units
      of aocount on the original estimate .
III . CONCLUSIONS
The Commission proposes that the Council decide :
1 . That manufacture of gruel and soup for Nigeria be stopped completely in
the light of the situation outlined above ;           .
2 . That the cereal tonnage ( 401 metric tons ) not used in the manufacture of
gruel and soup be added to the tonnage covered by the Agreement of
20 January 1971 by means of the agreement in the form of en exchange of
letters which appears in Annex II ;               ...
3 . That transportation costs between the FOB and CIF stages for part of the
food aid for Pakistan , .amounting to PS 78 434-90 ( 19 217 units of account ),
be refunded ;
4 . That the 50 metric tons of soup concentrate not used be left at the
disposal of the ICRC as detailed above .
 ---pagebreak---                                                       -7-
                                                i                              -     :
                  COMCTTflEMTS . PRODUCTS SUPPLIED MP CASH MADE AVAILABLE FOR THE
                  MANUFACTURE AMD TRANSPORTATION OF 4 000 METRIC TONS OF SOUP AITD
                                        800 METRIC TONS OF GRUEL
                                              Commitments        Products supplied,        Products lioi
                                         ( in metric tons )      ( in metric tons )        yet supplied
                                                                                       ( in metric tors*)
                   Produots           Quantity      Quantity  Quantity     Quantity    Quantities of
                                                    produced               produced      unworked
                                                    in un-                 in un-      cereals and
                                                    worked                 worked           milk
                                                    cereal                 cereal
                                                   equivalent             equivalent
I. Soup Manufacture
     1 . For the manufacture
          of 3 000 metric tons
          of soup for Nigsria,
     ( a) cereals               ^
             wheat meal                ■ 690*       1 090*     6II.5            966          124
             tarley meal                 660*       1 188*     585.0        1 053            135
              corn meal                  69O*       1 242*     611.5        1 100            142
           total cereals                            3 520*                  3 119            401 ;
     (b ) skimmed milk powder            555*                  462.5                          92.5
     2 . For the manufacture
          of 1 000 mstrio tons
          of soup for Pakistan
     ( a) cereals
             wheat meal                  230           363                                   363
             "barley meal                220           396                                   396
              com meal                   230           414                                   414
     (b ) skimmed milk powder            185                                                 185
                                                    1 173
II . Gruel Manufacture
     1 . For the manufacture
          of 600 metric tons of
          gruel for Nigeria
     ( a) cereals
              wheat flour                144*          217 *   144               217
              barley flour               144*          2S<~>*  144               259
           total cereals                               476*                     476
     (b ) skimmed milk powder              90*                   90
     2 . For the manufacture
          of 200 metric tons of
          tTruel for Pakistan
     ( a ) cereals
              wheat flour                  48            72                                   72
              "barley flour                48            86                                   86
                                                       158
     (b ) skimmed milk powder              30                                                 30
 ---pagebreak---                         ι
                                         -8-
            Cash            Commitments      Payments made        Payments not
                          " ( in units of " "( in units of '          yet made
         '         "h .
                               account )         account )        ( in units of
                                                                     account )
I.    Nigeria
lîanufacrfcure and
transportation                 600 000           596 540                 3 460
II .  Pakistan
Manufacture and
tran sport at i on          1 100 000            827 574               272 426
( a ) manufacture              250 000                                 250 000
("b ) transportation           850 000           827 574     ,          22 426
      Tonnages actually set aside
      This includes 19 217 units of account , as yet unpaid ^ representing the
      refund of the cost of transporting 298.7 metric tons of soup by sea *
 ---pagebreak---                                   Ronorw.;ndr.tion of a
                                 • Council Decision
            concluding an Agreement "between the European Economic Community
            and the International Committee of the Red Cross altering the
            amounts specified in the agreement relating to the supply of
            cereals as food aid signed on 20 January 1971
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community , and
in particular Articles 113 , 114 and 228 thereof;
Having regard to the Recommendation from the Commission ;
Whereas the European Economic Community undertook to supply the International
Committee of the Red Cross with 3 996 metric tons of cereals for the
manufacture of gruel and soup under the Agreement dated 25 March 1970 ;
Whereas , now that this operation has "been finalised , it appears that only
3 595 metric tons were in fact supplied ;
Whereas the tonnage specified in the Agreement of 20 January 1971 between
the European Economio Community and the International Committee of the
Red Cross should therefore be increased by 401 metric tons , the amount of
the unused balance ;
HAS ADOPTED THIS DECISION : .
                                   Article 1
An agreement , in the form of an exohange of letters , is hereby concluded on
behalf of the European Economic Community with the International Committee
of the Red Cross altering the tonnage specified in the Agreement relating
to supply of cereals as food aid signed on 20 January 1971 *
                                   Article 2
The President of the Council is hereby authorized to appoint a delegate to
sign the Agreement and to confer on him the rsquisite full powers on behalf
of the Community .
Done at
                                              For the Council
                                              The President
 ---pagebreak---                               Exchange cf Lai -t er<5
A.   Letter from the European Economic Community
With reference to the Agreement between the European Economic Community
and the International Committee of the Red Cross relating to the supply
of cereals as food aid , signed on 20 January 1971 » I teg to suggest
that the figure of 12 671 metric tons specified in Article 1 of that
Agreement "be replaced "by the figure of 13 072 metrio tons , the additional
tonnage representing quantities provided for hut not used in the
manufacture of gruel and soup in implementation of the Agreement of
25 March 1970 .
I would be grateful if you could say whether the foregoing meets with
your approval .
B.   Letter from the International Committee of the Red Cross
I hereby acknowledge receipt of your letter of                     worded as
follows :
"With reference to                                    meets with your
approval "
I sjn pleased to inform you that the International Committee of the Red
Cross is in agreement with your proposal .