CELEX: 51973PC1894
Language: en
Date: 1973-11-08 00:00:00
Title: RECOMMENDATION FOR A COUNCIL DECISION on the conclusion of an agreement between the European Economic Community and the Republic of Indonesia for the supply of soft wheat as food aid (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 1894
Vol. 1973/0335
 ---pagebreak--- Disclaimer
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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
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In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                          COM(73)1894 final
                                                         Brussels . 8 November 1973
                               RECOMMENDATION FOR A
                                 COUNCIL DECISION
                  on the conclusion of an agreement between the
                             European Economic Community
                       and the Republic of Indonesia for the
                         supply of soft wheat as food aid
                    ( submitted to the Council "by the Commission )
COM(73 ) 1894 final
 ---pagebreak--- THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
and in particular Articles 113 » 11^ and 228 thereof ;
Having regard to the Recommendation from the Commission ;
Whereas the European Economic Community has deposited a Declaration for
provisional application of the 1971 Food Aid Convention ; whereas that
Convention has been applicable since 1 July 1971 ;
Whereas the Republic of Indonesia by its letters of 5 November 1971
12 December 1972 has requested food aid ;
Whereas in view of the cereal supply situation in the Republic of Indonesia
that country should be accorded , by way of gift , 2^.000 metric tons of soft
wheat of which 17.000 tons forming part of Community Food Aid Programme
for 1971/72 and 7.000 tons of the 1972/73 programme
DECIDES :
                                 Article 1
On behalf of the European Economic Community an agreement , the text whereof
is annexed hereto , shall be concluded between the European Economic Communit
and the Republic of Indonesia for the supply of soft'-, wheat as food aid .
                                 Article 2
jihe President of the Council is hereby authorised to designate those who
are to sign the agreement and to confer on thera the requisite powers to bind
the Community .
Done at Brussels ,                19 »«            For the Council
                                                   The President
 ---pagebreak---                   AGREEMENT
BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE
            REPUBLIC OF INDONESIA
    ON THE SUPPLY OF FOOD AID IN THE FORM
                OF SOFT WHEAT
 ---pagebreak--- THE COUNCIL OF THE EUROPEAN COMMUNITIES
                                        on the one hand ,
                      i
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
                                        on the other hand ,
HAVE DECIDED to conclude this Agreement and to this end have
designated as their plenipotentiaries :
THE COUNCIL OF . THE EUROPEAN COMMUNITIES :
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA :
WHO HAVE AGREED AS FOLLOWS :
 ---pagebreak--- The European Economic Conrunity shall supply the Republic of
Indonesia , hereinafter referred to as the "recipient country",
with 2^.000 metric tons of soft wheat of which 17.000 tons would
be part of the 1971/72 programae and 7-000 tons of that for 1972/73-
                       ARTICI3 II
Deliveries will be made in bulk fob Community ports .
                       A57ICL3 III
The obligations and responsibilities of the European Economic
Community and of the recipient country relating to delivery and the
taking of delivery are defined in the Annex , which forms an integral
part of this Agreement .
                       ARTICLE IV
The recipient country undertakes to sake all necessary arrangements
for the transport and insurance of the product from ports of shipment •
to places of destination .
It undertakes to exercise the greatest possible care to ensure that
the tendering arrangements for the transport by sea are not prejudicial
to the . free play of fair competition . Any problems arising in this
connection shall be the subject of consultations under Article IX of
the present Agreement .
                       ARTICLE V
The recipient country undertakes to use the product received as aid
for purposes of consumption and to apply , for the sale of the product
on its market , the prices normally charged on that market for products
of comparable quality .
 ---pagebreak--- The proceeds from this sale , less the cost of sea transport ,
insurance and the normal cost of selling the product on the
recipient country 's market , v/ill be paid into a special account
in the Central Bank until the entire quantity of the aid
received is sold . At that point the proceeds shall be transferred
to the development budget of the recipient country to be used for
financing development projects .
                            ARTICLE VI
The contracting parties undertake to implement this Agreement
in such a way as to avoid any prejudice to the normal structure
of domestic production and international trade . To this end they
shall take any measures required to ensure that aid supplies are
in addition to , and do not replace , business transactions which
might reasonably be expected in the absence of such supplies .
                            ARTICLE VII
                                                           •    • •
The recipient country shall take any measures required to
prevent :
i)   the re-export of the product received as aid and of products
     and by-products resulting from such supplies ;
ii ) the export , commercially or otherwise , within six months
     of the last delivery , either of the product obtained locally
     and of the same nature as the product received as aid or - of
     any products of by-products resulting from it .
                            ARTICLE VIII
             *
The recipient country undertakes to inform' the European
Economic Community how this Agreement is being implemented . To
this end it shall provide the Commission of the European Communities
with the following information :
                                                        /
 ---pagebreak--- i)    Hot later than thirty days aftor tho unloading of each cargo :
      ports and dates of arrival of the vessel ; nature , quantity
      and quality of the products unloaded ; date on which unloading
      was completed ;
ii )  Every three months until the quantities received as aid have
      been fully sold : quantifies cold ; how they have been sold ,
      selling prices ; normal selling costs on the recipient country 's
      market ;
iii ) immediately after the proceeds of the sale have been transferred
      the development budget :
          on progress made and degree of realisation of one or more
          development projects on the 1972/73 list of projects communi
          cated by the recipient country as being undertaken with the
          assistance of the member stated , broadly corresponding to th
          proceeds from the sale of the product received as aid .
                              ARTICLE IX
At the request of either of them , the Contracting Parties shall consu
each other on any questions concerning the implementation of this
Agreement .
                              ARTICLE X
This Agreement is drawn up in duplicate in the Danish , Dutch ,
English , French , Germand and Italian languages , each of these
texts being equally authentic .
 ---pagebreak---           ANNEX TO ARTICLE TIT OF THE AGREEMENT
                            Article 1
Delivery shall be effected and risks shall pass from the
European Economic Community to the recipient country at the moment
at which the goods have been placed in the ship 's hold at the port
of shipment .
The recipient country shall bear all costs subsequent to delivery
of the goods , including costs of stowage and , where appropriate ,
of trimming and bagging .
Any demurrage costs or dispatch at the port of shipment shall
be a charge on or for the benefit of the European Economic
Community and shall be determined before the vessel sails .
The rates and detailed arrangements relating thereto laid down
in the contract between the recipient country and the carrier must
have been agreed upon in advance by the recipient country and the
authorised agent of the European Economic Community referred to in
Article 9 «        '    (
                            Article 2
The European Economic Community shall notify the recipient country
m good time of the port or ports of shipment , the quantities to
be delivered at each port , the period within which loading must
begin , and thfe daily loading rate .
                            Article 3
The European Economic Community must be prepared to load the goods
on the date resulting from the instructions in Article 8 , whereon the
vessel should be ready for loading .                                   '
                            Article k                                1
On delivery of the goods , a tolerance of 5 % less than the quantity
to be supplied in accordance with Article 1 of the Agreement is
permitted .               ~
 ---pagebreak---                       Article 5
Once the goods are on board the vessel , the European Economic
Community shall notify the recipient country of the date of
loading , and the quantity and quality of the goods as . recorded        i
on loadmg .                                                               ;
                                                                          (
                      Article 6
The recipient country shall supply the European Economic Community ,
whithin the period referred to in Article 2 , with a vessel of dimensit
corresponding to the normal loading potential of the port of shipment .
Should it prove impossible for the vessel to begin loading within
the period referred to in Article 2 and should the recipient country
not have notified the European Economic Community of this fact in
v/riting at the latest by the date on v/hich the vessel should be ready
for loading in accordance with Article 8 , the goods shall be at the
disposal of the European Economic Community .
Whatever the circumstances , the goods shall be hold at the expense,'
risk and peril of the recipient country .
                      Article 7
Should the recipient country fail to provide a vessel of suitable
tonnage or i'f the quantity made available for loading on a vessel
of suitable tonnage cannot be put on board in its entirety because
of circumstances beyond the control of the European Economic Communit ;
the balance shall be loaded into the next vessel under the conditions
laid down in this annex .
In this event , until the date of loading of thif balance or until
the recipient country gives notice in writing that it gives up this
balance ,. the goods shall be hold at the expense , risk and peril of the
recipient country . ■
The recipient country must notify the European Economic Community
whithin a period of a maximum of 30 days from the beginning . of
loading of the shipment to which these goods should have belonged ,
of the date on which loading of this balance is due to begin or          ;
of its renunciation of this balance .                          *         j
If this obligation is not respected , the European Economic Community j
may consider that it has discharged its commitment to the recipient
country under Article 1 of the Agreement .                               j
 ---pagebreak---                     Article 8
The recipient country shall nane for the European Economic Community
the vessel that is to ship the goods at least 10 clear days prior to
estinated date of arrival of the vessel in port or , where possible ,
20 clear days prior to this date , and shall at the same tine indicat
how soon after that date the vessel will be ready for loading .
The recipient country shall insert in the charter party a clause
requiring the captain to inform the European Economic Community
at least 72 hours in advance of the vessel 's estimated date of
arrival in port .
                  . Article 9
To implement the provisions of this annex , the European Economic
Community shall appoint an authorised agent , whose name and address
shall be made known in good time to the recipient country .
The recipient country shall nominate a receiving agent in each port
of shipment , whose name and address shall be aade known to the Europ
Economic Community before the Agreement is implemented .         .