CELEX: 
Language: en
Date: 1976-11-20 00:00:00
Title: Council Decision of 28 September 1976 on the notification of the provisional application by the European Economic Community of the International Cocoa Agreement 1975

20. 11 . 76                         Official Journal of the European Communities                            No L 321/29
                                                           II
                                      (Acts whose publication is not obligatory)
                                                 COUNCIL
                                                COUNCIL DECISION
                                                of 28 September 1976
             on the notification of the provisional application by the European Economic Community
                                     of the International Cocoa Agreement 1975
                                                     (76/870/EEC)
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,                      HAS DECIDED AS FOLLOWS :
                                                                                        Article 1
                                                               In accordance with Article 68 of the International
Having regard to the Treaty establishing the Euro­             Cocoa Agreement 1975, the Community will deposit
pean Economic Community, and in particular Article             with the Secretary-General of the United Nations
113 thereof,                                                   Organization before 30 September 1976 the notifi­
                                                               cation annexed to this Decision stating that it will
                                                               apply the Agreement provisionally, as an importing
Having regard to the recommendation from the                   member, when the Agreement enters into force in
Commission,                                                    accordance with Article 69.
                                                               The text of the Agreement is annexed to this
Whereas the Community is participating in the Inter­           Decision.
national Cocoa Agreement 1972 ;
                                                                                        Article 2
Whereas, in accordance with the Council Decision               The President of the Council is hereby authorized to
of 20 July 1976, the Community signed the Inter­               designate the person empowered to deposit this noti­
national Cocoa Agreement 1975 , on 27 July 1976,               fication (M.
subject to the conclusion thereof;
                                                               Done at Brussels, 28 September 1976.
Whereas the Community should give notification that                                                 For the Council
it will apply the Agreement provisionally pending
                                                                                                    The President
completion of the internal procedures necessary for
the conclusion thereof,                                                                            M. van der STOEL
                                                               (*) The date from which the Agreement will be applied
                                                                   provisionally will be published in the Official Journal
                                                                   of the European Communities.
 ---pagebreak--- No L 321 /30                       Official Journal of the European Communities                    20. 11 . 76
                                                      ANNEX 1
             Notification, of provisional application of the International Cocoa Agreement 1975
             In accordance with Article 68 of the International Cocoa Agreement 1975, the Euro­
             pean Economic Community hereby deposits this notification of the provisional
             application thereof. In giving this notification the Community will   consider itself
             provisionally an importing member of the said Agreement, with all    the rights and
             obligations arising therefrom, when the Agreement enters into force   in accordance
             with Article 69 and until the date on which the Decision concluding  the Agreement
             is deposited by the Council of the European Communities.
 ---pagebreak--- 20. 11 . 76                           Official Journal of the European Communities                           No L 321 /31
                                                        ANNEX II
                                    INTERNATIONAL COCOA AGREEMENT 1975
                        CHAPTER I                                                         CHAPTER II
                                                                                        DEFINITIONS
                       OBJECTIVES
                                                                                           Article 2
                          Article 1
                                                                                           Definitions
                         Objectives
                                                                 For the purposes of this Agreement:
The objectives of this Agreement take into account               (a) Cocoa means cocoa beans and cocoa products ;
the recommendations as contained in the Final Act                (b) Cocoa products means products made exclusively
of the first session of the United Nations Conference                  from cocoa beans, such as cocoa paste, cocoa
on Trade and Development and are :                                     butter, unsweetened cocoa powder, cocoa cake
                                                                       and cocoa nibs as well as such other products
                                                                       containing cocoa as the Council may determine
 ( a) To alleviate serious economic difficulties which                 if necessary ;
      would persist if adjustment between the
      production and consumption of cocoa cannot                 (c)Fine or flavour cocoa means cocoa produced in
      be effected by normal market forces alone as                     the countries listed in Annex C to the extent
      rapidly as circumstances require ;                               specified therein ;
                                                                 (d) Tonne means the metric ton of 1 000 kilogrammes
 (b ) To prevent excessive fluctuations in the price of                 or 2204-6 pounds ; and pound means 453-597
      cocoa which affect adversely the long-term                        grammes ;
      interests of both producers and consumers ;                 (e) Crop year means the period of 12 months from
                                                                       1 October to 30 September inclusive;
 (c) To make arrangements which will help stabilize              (f) Quota year means the period of 12 months from
      and increase the earnings from the exports of                     1 October to 30 September inclusive;
      cocoa of producing member countries thereby
      helping to provide the necessary incentive for a            (g) Basic quota means the quota determined in ac­
      dynamic and rising rate of production and                         cordance with Article 30 ;
      provide such countries with resources for                   (h) Annual export quota means the quota of each
      accelerated economic growth and social develop­                   exporting member as determined under
      ment, while at the same time taking into account                  Article 31 ;
      the interests of consumers in importing member
      countries, in particular the need to increase               (i) Export quota in effect means the quota of each
      consumption ;                                                     exporting member, at any given time, as
                                                                        determined under Article 31 , or as adjusted under
                                                                        Article 34, or as reduced under paragraphs 4, 5
  (d) To assure adequate supplies at reasonable prices,                 and 6 of Article 35, or as may be affected under
       equitable to producers and consumers ; and                       the provisions of Article 36 ;
                                                                  (j ) Export of cocoa means any coooa which leaves
 (e) To facilitate expansion of consumption and, if                     the customs territory of any country; and import
      necessary and in so far as possible, an adjustment                of cocoa means any cocoa which enters the
       of production, so as to secure an equilibrium in                 customs territory of any country; provided that,
       the long term between supply and demand.                         for the purposes of these definitions customs
 ---pagebreak---  No L 321 /32                         Official Journal of the European Communities                             20. 11 . 76
       territory shall, in the case of a member which             2. If any contracting party, including the territories
       comprises more than one customs territory, be              for whose international relations it is for the time
      deemed to refer to the combined customs terri­              being ultimately responsible and to which this
       tories of that member;                                     Agreement is extended in accordance with
                                                                  paragraph 1 of Article 71, consists of one or more
  (k) Organization means the International Cocoa                 units that would individually constitute an exporting
      Organization referred to in Article 5 ;                     member and of one or more units that would
  (1) Council means the international Cocoa Council              individually constitute an importing member, there
       referred to in Article 6 ;                                 may be either a joint membership for the contracting
                                                                 party together with these territories or, where the
 (m) Member means a contracting party to this Agree­              contracting party has made a notification to that
       ment, including a contracting party as referred to        effect under Article 71 (2), separate membership,
      in Article 3 (2), or a territory or a group of              singly, all together or in groups, for the territories
       territories in respect of which a notification has        that would individually constitute an exporting
      been made in accordance with Article 71 (2), or            member, and separate membership, singly, all
       an intergovernmental organization as provided             together or in groups, for the territories that would
       for in Article 4;                                          individually constitute an importing member.
 (n) Exporting country or exporting member means
      a country or a member respectively whose
       exports of cocoa expressed in terms of beans              3 . A member may change its category of member­
      exceed its imports ;                                       ship on such conditions as the Council may establish.
 (o) Importing country or importing member means
      a country or a member respectively whose imports                                   Article 4
      of cocoa expressed in terms of beans exceed its
      exports ;
 (p) Producing country or producing member means                     Membership by intergovernmental organizations
      a country or member respectively which grows
      cocoa in commercially significant quantities ;             1 . Any reference in this Agreement to a
 (q) Simple distributed majority vote means a majority           ' Government' shall be construed as including
      of the votes cast by exporting members and a               a reference to any intergovernmental organization
      majority of the votes cast by importing members,          having responsibilities in respect of the negotiation,
      counted separately ;                                      conclusion and application of international
                                                                agreements, in particular commodity agreements.
(r) Special vote means two-thirds of the votes cast             Accordingly, any reference in this Agreement to
      by exporting members and two-thirds of the                signature or to deposit of instruments of ratification,
      votes cast by importing members, counted                  acceptance or approval or to notification of
      separately, on condition that the number of votes         provisional application or to accession by a Govern­
      thus expressed represents at least half the present       ment shall , in the case of such intergovernmental
      and voting members ;                                      organizations, be construed as including a reference
                                                                to signature, or to deposit of instruments of ratifica­
(s) Entry into force means, except when qualified,              tion, acceptance or approval, or to notification of
      the date on which this Agreement first enters             provisional application, or to accession, by such
      into force, whether provisionally or definitively.        intergovernmental organizations.
                                                                2. Such intergovernmental organizations shall not
                         CHAPTER III                            themselves have any votes, but in the case of a vote
                                                                on matters within their competence, they shall be
                                                                entitled to cast the votes of their member States and
                         MEMBERSHIP
                                                                shall cast them collectively. In such cases, the
                                                                member States of such intergovernmental organiza­
                           Article 3                            tions shall not be entitled to exercise their individual
                                                                voting rights.
              Membership in the Organization
                                                                3 . The provisions of Article 15 ( 1 ) shall not apply
1 . Each contracting party shall constitute a single            to such intergovernmental organizations ; but they
member of the Organization, except as otherwise                 may participate in the discussions of the Executive
provided in paragraph 2.                                        Committee on matters within their competence. In
 ---pagebreak--- 20. 11 . 76                        Official Journal of the European Communities                          No L 321 /33
the case of a vote on matters within their competence,        functions as are necessary to carry out the express
the votes that their member States are entitled to            provisions of this Agreement.
cast in the Executive Committee shall be cast
collectively by any one of those member States.
                                                              2. The Council shall adopt by special vote such
                                                              rules and regulations as are necessary to carry out
                                                              the provisions of this Agreement and are consistent
                      CHAPTER IV                              therewith, including its rules of procedure and those
                                                              of its committees, the financial and staff regulations
      ORGANIZATION AND ADMINISTRATION                         of the Organization and rules for the administration
                                                              and operation of the buffer stock. The Council may,
                                                              in its rules of procedure, provide for a procedure
                                                              whereby it may, without meeting, decide specific
                        Article 5
                                                              questions.
Establishment, headquarters and structure of the
            International Cocoa Organization                  3 . The Council shall keep such records as are
                                                              required to perform its functions under this Agree­
                                                              ment, and such other records as it considers ,
1 . The International Cocoa Organization established          appropriate.
by the International Cocoa Agreement 1972 shall
continue in being to administer the provisions and
supervise the operation of this Agreement.
                                                              4. The Council shall publish an annual report. This
                                                              report shall cover the annual review for which
2. The Organization shall function through :                  provision is made in Article 59. The Council shall
                                                              also publish such other information as it considers
( a) the International Cocoa Council and the Executive        appropriate.
     Committee ;
(b) the Executive Director and the staff.
                                                                                     Article 8
3 . The headquarters of the Organization shall be in
                                                                     Chairman and vice-chairmen of the Council
London unless the Council by special vote decides
otherwise .
                                                              1 . The Council shall elect a chairman and a first
                                                              and a second vice-chairman for each quota year,
                         Article 6                            who shall not be paid by the Organization.
    Composition of the International Cocoa Council
                                                              2. Both the chairman and the first vice-chairman
                                                              shall be elected from among the representatives of the
 1 . The highest authority of the Organization shall          exporting members or from among the representa­
be the International Cocoa Council, which shall               tives of the importing members and the second vice­
consist of all the members of the Organization.               chairman from among the representatives of the other
                                                              category. These offices shall alternate each quota year
2 . Each member shall be represented on the                   between the two categories of members.
 Council by a representative and, if it so desires, by
one or more alternates . Each member may also
 appoint one or more advisers to its representative or        3 . In the temporary absence of both the chairman
alternates .                                                  and the two vice-chairmen or the permanent absence
                                                               of one or more of them, the Council may elect new
                                                              officers from among the representatives of the
                         Article 7                             exporting members or from among the representa­
                                                               tives of the importing members, as appropriate, on
                                                               a temporary or permanent basis as may be required.
          Powers and functions of the Council
1 . The Council shall exercise all such powers and            4. Neither the chairman nor any other officer
 perform or arrange for the performance of all such            presiding at meetings of the Council shall vote. His
 ---pagebreak--- No L 321 /34                       Official Journal of the European Communities                              20. 11 . 76
alternate may exercise the voting rights of the               vote for each member; the remaining votes shall be
member which he represents.                                   distributed in proportion to their imports as set
                                                              out in Annex D.
                       Article 9
                                                              4. No member shall have more than 300 votes. Any
               Sessions of the Council
                                                              votes above this figure arising from the calculations
                                                              in paragraphs 2 and 3 shall be redistributed among
                                                              the other members on the basis of paragraphs 2 and
1 . As a general rule, the Council shall hold one             3 respectively.
regular session in each half of the quota year.
                                                              5. When the membership in the Organization
2. The Council, in addition to meeting in the other           changes or when the voting rights of a member are
circumstances specifically provided for in this Agree­        suspended or restored under any provision of this
ment, shall also meet in special session whenever it          Agreement, the Council shall provide for the redistri­
so decides or at the request of:                              bution of votes in accordance with this Article.
(a) any five members; or
                                                              6. There shall be no fractional votes .
(b) a member or members having at least 200 votes ;
    or
(c) the Executive Committee.                                                         Article 11
                                                                         Voting procedure of the Council
3 . Notice of sessions shall be given at least 30 days
in advance, except in case of emergency or where
the provisions of this Agreement require otherwise.           1 . Each member shall be entitled to cast the number
                                                              of votes it holds and no member shall be entitled to
4. Sessions shall be held at the headquarters of the          divide its votes. A member may, however, cast
Organization unless by special vote the Council               differently from such votes any votes which it is
decides otherwise. If on the invitation of any member         authorized to cast under paragraph 2.
the Qouncil meets elsewhere than at the headquarters
of the Organization, that member shall pay the
additional costs involved .                                   2. By written notification to the Chairman of the
                                                              Council, any exporting member may authorize any
                                                              other exporting member, and any importing member
                                                              may authorize any other importing member, to
                       Article 10                             represent its interests and to cast its votes at any
                                                              meeting of the Council. In this case the limitation
                         Votes                                provided for in Article 10 (4) shall not apply.
1 . The exporting members shall together hold 1 000           3 . Exporting members producing exclusively fine or
votes and the importing members shall together hold           flavour cocoa shall not take part in voting on
1 000 votes, distributed within each category of              matters relating to the establishment and adjustment
members - that is, exporting and importing members,           of quotas and the administration and operation of
respectively — in accordance with the following               the buffer stock.
paragraphs of this Article.
2. The votes of exporting members shall be                                           Article 12
distributed as follows : 100 shall be divided equally
among all exporting members to the nearest whole
vote for each member; the remaining votes shall be                            Decisions of the Council
distributed in proportion to their basic quotas .
                                                              1 . All decisions of the Council shall be taken, and
3 . The votes of importing members shall be                   all recommendations shall be made, by a simple
distributed as follows : 100 shall be divided equally         distributed majority vote unless this Agreement
among all importing members to the nearest whole              provides for a special vote.
 ---pagebreak--- 20. 11 . 76                             Official Journal of the European Communities                         No L 321/35
2. In arriving at the number of votes necessary for                contact with international organizations of cocoa
any of the decisions or recommendations of the                     producers, traders and manufacturers.
Council, votes of members abstaining shall not be
reckoned.
3 . The following procedure shall apply with respect                                        Article 14
to any action by the Council which under this Agree­
ment requires a special vote :                                                       Admission of observers
 (a) if the required majority is not obtained because
       of the negative vote of three or less exporting or          1 . The Council may invite any non-member that is
       three or less importing members, the proposal               a member of the United Nations, its specialized
       shall, if the Council so decides by a simple                agencies or the International Atomic Energy Agency
       distributed majority vote, be put to a vote again           to attend any of its meetings as an observer.
       within 48 hours ;
 (b) if the required majority is again not obtained                2. The Council may also invite any of the organiza­
       because of the negative vote of two or less                 tions referred to in Article 13 to attend any of its
       exporting or two or less importing members, the             meetings as an observer.
       proposal shall, if the Council so decides by a
       simple distributed majority vote, be put to a vote
       again within 24 hours ;
                                                                                            Article 15
 (c) if the required majority is not obtained in the
       third vote because of the negative vote cast by one
       exporting or one importing member, the proposal                     Composition of the Executive Committee
        shall be considered adopted ;
 ( d) if the Council fails to put a proposal to a further           1 . The Executive Committee shall consist of eight
       vote, it shall be considered rejected.                      exporting members and eight importing members,
                                                                   provided that if either the number of exporting
                                                                   members or the number of importing members in the
 4. Members undertake to accept as binding all                      organization is 10 or less the Council may, while
 decisions of the Council under the provisions of this              maintaining parity between the two categories of
 Agreement.                                                         members, decide by special vote the total number on
                                                                    the Executive Committee. Members of the Executive
                                                                    Committee shall be elected for each quota year in
                           Article 13                               accordance with Article 16 and may be re-elected.
            Cooperation with other organizations                    2. Each elected memiber shall be represented on the
                                                                    Executive Committee by a representative and, if it
                                                                    so desires, by one or more alternates. Each such
 1 . The Council shall make whatever arrangements                   member may also appoint one or more advisers to
 are appropriate for consultation or cooperation with                its representative or alternates.
  the United Nations and its organs, in particular the
  United Nations Conference on Trade and Develop­
  ment, and with the Food and Agriculture Organiza­                  3 . The chairman and vice-chairman o<f the Executive
  tion and such other specialized agencies of the United             Committee, elected for each quota year by the
  Nations and intergovernmental organizations as may                 Council, shall both be chosen from among the
  be appropriate.                                                    delegations of the exporting members or from among
                                                                     the delegations of the importing members. These
  2. The Council, bearing in mind the particular role                offices shall alternate each quota year between the
  of the United Nations Conference on Trade and                      two categories of members. In the temporary or
  Development in international commodity trade, shall,               permanent absence of the chairman and the vice­
   as appropriate, keep that organization informed of                chairman, the Executive Committee may elect new
   its activities and programmes of work.                            officers from among the representatives of the
                                                                     exporting members or from aimong the representa­
                                                                     tives of the importing members, as appropriate, on
  3 . The Council may also make whatever arrange­                    a temporary or permanent basis as may be required.
   ments are appropriate for maintaining effective                   Neither the chairman nor any other officer presiding
 ---pagebreak---   No L 321 /36                       Official Journal of the European Communities                                 20. 11 . 76
  at meetings of the Executive Committee may vote.                 (b) approval of the administrative budget and
  His alternate may exercise the voting rights of the                   assessment of contributions under Article 23 ;
  member which he represents.
                                                                   (c) revision of the minimum and maximum prices
                                                                        under paragraph 2 or 3 of Article 29 ;
  4. The Executive       Committee   shall  meet at the
  headquarters of the Organization unless by special
  vote it decides otherwise. If on the invitation of any          ( d) revision of Annex C under Article 33 (3 );
  member the Executive Committee meets elsewhere
  than at the headquarters of the Organization, that              (e) determination of annual export quotas under
  member shall pay the additional costs involved .                     Article 31 and quarterly quotas under Article
                                                                       35 ( 8);
                                                                  (f) restriction or suspension of purchases by the
                          Article 16                                   buffer stock under Article 40 ( 10) (b );
          Election of the Executive Committee                     (g) action relating to diversion of cocoa to non­
                                                                       traditional uses under Article 46;
  1 . The exporting and importing members of the
 Executive Committee shall be elected in the Council             (h) relief from obligations under Article 60 ;
 by the exporting and importing members of the
 Organization respectively. The Election within each             (i) decision of disputes under Article 62;
 category shall be held in accordance with the
 following paragraphs of this Article.                           (j ) suspension of rights under Article 63 (3);
 2. Each member shall cast all the votes to which it
                                                                 (k) establishment of conditions for accession under
                                                                       Article 67 ;
 is entitled under Article 10 for a single candidate. A
 member may cast for another candidate any votes
 which it is authorized to cast under paragraph 2 of             ( 1) exclusion of a member under Article 73 ;
 Article 11 .
                                                                (m) extension or termination of this Agreement
                                                                       under Article 75 ;
 3 . The candidates receiving the largest number of
 votes shall be elected .                                       (n) recommendation of amendments to members
                                                                      under Article 76 .
                          Article 17                            4. The Council may at any time, by a simple
                                                                distributed majority vote, revoke any delegation of
       Competence of the Executive Committee                    powers to the Executive Committee.
 1 . The Executive Committee shall be responsible to,                                     Article 18
 and work under the general direction of, the Council .
                                                               Voting procedure and decisions of the Executive
                                                                                          Committee
2. The Executive Committee shall keep the market
under continuous review and recommend to the
Council such measures as it may consider advisable.             1 . Each member of the Executive Committee shall
                                                               be entitled to cast the number of votes received by
3 . Without prejudice to the right of the Council to           it under the provisions of Article 16, and no member
                                                               of the Executive Committee shall be entitled to
exercise any of its powers, the Council may, by a
                                                               divide its votes .
simple distributed majority vote or a special vote
depending on whether a decision by the Council on
the subject requires a simple distributed majority             2. Without prejudice to the provisions of paragraph
vote or a special vote, delegate to the Executive              1 and by written notification to the chairman, any
Committee the exercise of any of its powers, except            exporting or importing member whidh is not a
the following:                                                 member of the Executive Committee and which has
                                                               not cast its votes under Article 16 (2) for any of
(a) redistribution of votes under Article 10;                  the members elected may authorize any exporting
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 or importing member of the Executive Committee,                 5 . The quorum for any meeting of the Executive
 as appropriate, to represent its interests and to cast          Committee shall be prescribed by the Council in the
 its votes in the Executive Committee.                           rules of procedure of the Executive Committee.
 3 . In the course of any quota year a member may,
 after consultation with the member of the Executive                                    Article 20
 Committee for which it voted under Article 16,
 withdraw its votes from that member. The votes
                                                                              The staff of the Organization
thus withdrawn may be reassigned to another
 member of the Executive Committee but may not be
 withdrawn from that member for the remainder of                 1 . The Council, after consulting the Executive Com­
 that quota year. The member of the Executive Com­              mittee, shall appoint the Executive Director by
 mittee from which the votes have been withdrawn
                                                                special vote. The terms of appointment of the
 shall nevertheless retain its seat on the Executive            Executive Director shall be fixed by the Council in
 Committee for the remainder of that quota year.                the light of those applying to corresponding officials
Any action taken pursuant to the provisions of this              of similar intergovernmental organizations.
 paragraph shall become effective after the chairman
 has ' been informed in writing thereof.
                                                                2. The      Executive   Director   shall be  the  chief
                                                                administrative officer of the Organization and shall
4. Any decision taken by the Executive Committee                be responsible to the Council for the administration
 shall require the same majority as that decision would         and operation of this Agreement in accordance with
 require if taken by the Council.                                the decisions of the Council .
5. Any mem'ber shall have the right of appeal to
the Council, under such conditions as the Council                3 . The Council, after consulting the Executive Com­
shall prescribe in its rules of procedure, against any           mittee, shall appoint the Buffer Stock Manager by
 decision of the Executive Committee.                            special vote. The terms of appointment of the
                                                                 Manager shall be fixed by the Council.
                        Article 19                              4. The Manager shall be responsible to the Council
                                                                for the functions conferred upon him by this
Quorum for the Council and the Executive Committee              Agreement as well as for such additional functions
                                                                as the Council may determine. The responsibility for
                                                                these functions shall be exercised in consultation
 1 . The quorum for the opening meeting of any                  with the Executive Director.
session of the Council shall be constituted by the
presence of a majority of exporting members and                 5 . Without prejudice to the provisions of paragraph
a majority of importing members, provided that                  4, the staff of the Organization shall be responsible
such members together hold in each category at                  to the Executive Director, who in turn shall be
least two-thirds of the total votes of the members in
                                                                responsible to the Council.
that category.
2. If there is no quorum in accordance with                     6. The Executive Director shall appoint the staff in
paragraph 1 on the day appointed for the opening                accordance with regulations established by the
meeting of any session and on the following day,                Council . In drawing up such regulations the Council
the quorum on the third day and throughout the                  shall have regard to those applying to officials of
remainder of the session shall be constituted by the            similar intergovernmental organizations. Staff
presence of a majority of exporting members and                 appointments shall be made in so far as is practicable
a majority of importing members, provided that                  from nationals of exporting and importing members.
such members together hold in each category a
simple majority of the total votes of the members in            7. Neither the Executive Director nor the Manager,
that category.                                                  nor any other member of the staff, shall have any
                                                                financial interest in the cocoa industry, the cocoa
3 . The quorum for meetings subsequent to the                   trade, cocoa transportation or cocoa publicity.
opening      meeting   of  any    session   pursuant to
paragraph 1 shall be that prescribed in paragraph 2.            8 . In the performance of their duties, the Executive
                                                                Director, the Manager and the other members of the
4. Representation in accordance with Article 11 (2)             staff shall not seek or receive instructions from any
shall be considered as presence.                                member or from any other authority external to the
 ---pagebreak---   No L 321 /38                       Official Journal of the European Communities                            20. 11 . 76
  Organization. They shall refrain from any action                                   CHAPTER VI
  which might reflect on their position as international
 officials responsible only to the Organization. Each                                  FINANCE
 member undertakes to respect the exclusively
 international character of the responsibilities of the
 Executive Director, the Manager and the staff and                                     Article 22
  not to seek to influence them in the discharge of their
  responsibilities.                                                                     Finance
                                                                1 . There shall be kept two accounts — the
                         CHAPTER V                              Administrative Account and the Buffer Stock Account
                                                                — for the administration and operation of this
             PRIVILEGES AND IMMUNITIES                          Agreement.
                                                                2. The expenses necessary for the administration
                          Article 21                            and operation of this Agreement, excluding those
                                                                attributable to the operation and maintenance of
                 Privileges and immunities                      the buffer stock instituted under Article 37, shall be
                                                                brought into the Administrative Account and shall
                                                                be met by annual contributions from members
                                                                assessed in accordance with Article 23 . If, however,
 1 . The Organization shall have legal personality. It          a member requests special services, the Council may
 shall in particular have the capacity to contract, to          require that member to pay for them.
 acquire and dispose of movable and immovable
 property and to institute legal proceedings.
                                                                3 . Any expenditure which is attributable to the
                                                                operation and maintenance of the buffer stock under
 2. The status, privileges and immunities of the               Article 37 (6) shall be brought into the Buffer Stock
 Organization, of its Executive Director, its staff and        Account. The liability of the Buffer Stock Account
 experts and of representatives of members whilst in           for any expenditure other than that specified in
 the territory of the United Kingdom of Great Britain          Article 37 (6) shall be decided by the Council.
 and Northern Ireland (hereinafter referred to as the
host Government) for the purpose of exercising their
                                                               4. The financial year of the Organization shall be
 functions, shall continue to be governed by the
                                                               the same as the quota year.
Headquarters Agreement concluded between the
 Government of the United Kingdom of Great Britain
 and Northern Ireland and the International Cocoa              5 . The expenses of delegations to the Council, to
 Organization in London on 26 March 1975 .                     the Executive Committee and to any of the
                                                               committees of the Council or of the Executive Com­
                                                               mittee shall be met by the members concerned.
3 . The Headquarters Agreement referred to in
paragraph 2 shall be independent of this Agreement.
It shall, however, terminate :
                                                                                      Article 23
 (a) by agreement between the host Government and              Approval of the Administrative Budget and assessment
      the Organization, or                                                         of contributions
(b) in the event of the headquarters of the
    • Organization being moved from the territory of           1 . During the second half of each financial year, the
      the host Government, or                                  Council shall approve the administrative budget of
                                                               the Organization for the following financial year, and
                                                               shall assess the contribution of each member to that
 (c) in the event of the Organization ceasing to exist.
                                                               budget.
4. The Organization may conclude with one or                   2 . The    contribution   of   each  member     to  the
more other members agreements to be approved by                administrative budget for each financial year shall
the Council relating to such privileges and                    be in the proportion which the number of its votes
immunities as may be necessary for the proper                  at the time the administrative budget for that
functioning of this Agreement.                                 financial year is approved bears to the total votes of
 ---pagebreak--- 20. 11 . 76                         Official Journal of the European Communities                           No L 321/39
all the members . In assessing contributions, the votes        qualified auditors from member Governments, one
of each member shall be calculated without regard              from exporting members and one from importing
to the suspension of any member's voting rights or             members, to be elected by the Council for each
any redistribution of votes resulting therefrom.               financial year. The auditors from member
                                                               Governments shall not be paid by the Organization.
3 . The initial contribution of any member joining
the Organization after the entry into force of this            2. The terms of appointment of the independent
Agreement shall be assessed by the Council on the              auditor of recognized standing, as well as the
basis of the number of votes to be held by it and              intentions and objectives of the audit, shall be laid
the period remaining in the current financial year,            down in the financial regulations of the Organization.
but the assessment made upon other members for                 The audited statement of the Organization's accounts
the current financial year shall not be altered.               and the audited balance sheet shall be presented to
                                                               the Council at its next regular session for approval.
                        Article 24
                                                               3 . A summary of the audited accounts and balance
                                                               sheet shall be published.
Payment of contributions to the administrative budget
1 . Contributions to the administrative budget for
each financial year shall be payable in freely                                      CHAPTER VII
convertible currencies, shall be exemipt from foreign
exchange restrictions and shall become due on the
                                                               PRICE, QUOTAS, BUFFER STOCK AND DIVERSION
first day of that financial year.                                          TO NON-TRADITIONAL USES
2. If at the end of five months after the beginning
of the financial year a member has not paid its full                                  Article 26
contribution to the administrative budget, the
Executive Director shall request the member to make
                                                                            Operation of this Agreement
payment as quickly as possible. If at the expiration
of two months after the request of the Executive
Director the member has still not paid its contri­
bution , the voting rights of that member in the               1 . In furthering the objectives of this Agreement,
Council and the       Executive Committee       shall be       members shall adopt measures for maintaining the
suspended until such time as it has made full payment          price of cocoa beans between agreed prices, and for
of the contribution .                                          that purpose and under the control of the Gouncil
                                                               an export quota system shall be established, a buffer
                                                               stock arrangement shall be instituted and arrange­
3 . A member whose voting rights have been                     ments shall be made for the diversion non-traditional
suspended under paragraph 2 shall not be deprived              uses, under strict regulation, of cocoa surplus to
of any of its other rights or relieved of any of its           quotas and of cocoa beans surplus to the buffer
obligations under this Agreement unless the Council            stock.
so decides by special vote. It shall remain liable
to pay its contribution and to meet any other
financial obligations under this Agreement.                    2. Members shall conduct their trade policies so
                                                               that the objectives of this Agreement may be
                                                               attained .
                        Article 25
          Audit and publications of accounts                                           Article 27
                                                               Consultation and cooperation with the cocoa industry
 1 . As soon as possible, but not later than six months
after the close of each financial year, the statement of
the Organization's accounts for that financial year            1 . The Council shall encourage members to seek
and the balance sheet at the close of that financial            the views of experts in cocoa matters.
year under each of the accounts referred to in
paragraph 1 of Article 22 shall be audited. The
audit shall be carried out by an independent auditor           2. In fulfilling their obligations under this
of recognized standing in cooperation with two                 Agreement, members shall conduct their activities
 ---pagebreak---    No L 321 /40                      Official Journal of the European Communities                               20. 11 . 76
  in a manner consonant with the established channels                                   Article 29
  of trade and' shall take due account of the legitimate
  interests of the cocoa industry.                                                        Prices
  3 . Members shall not interfere with the arbitration
  of commercial disputes between cocoa buyers and                1 . For the purpose of this Agreement, a minimum
  sellers if contracts cannot be fulfilled because of           price of cocoa beans shall be established at 39 US
  regulations established in order to implement this            cents per pound and a maximum price at 55 US cents
  Agreement, nor place impediments in the way of the            per pound.
  conclusion of arbitration proceedings. The require­
  ment that members comply with the provisions of
  this Agreement shall not be accepted as grounds for           2. Before the end of the first quota year, and again
  non-fulfilment of contract or as a defence in such            if is decided to extend this Agreement for a further
  cases .                                                       period of two years under Article 75, before the end
                                                                 of the third quota year, the Council shall review
                                                                the minimum price and the maximum price and
                                                                 may, by special vote, revise them.
                         Article 28
                                                                3 . In exceptional circumstances resulting from
              Daily price and indicator price                   upheavals in the international economic or monetary
                                                                situation, the Council shall review the minimum
                                                                price and maximum price and may, by special vote,
                                                                revise them.
  1 . For the purposes of this Agreement, the price of
  cocoa beans shall be determined by reference to
  a daily price and an indicator price.                         4. In conducting the review of prices referred to in
                                                                paragraphs 2 and 3 the Council shall take into
 2. The daily price shall, subject to paragraph 4, be           consideration the trend of cocoa prices, consumption,
 the average taken daily of the quotations for cocoa            production, stocks, the influence on cocoa prices of
 beans of the nearest three active future trading               changes in the world economic situation or monetary
 months on the New York Cocoa Exchange at noon                  system and any other factors which might affect the
 and on the London Cocoa           Terminal   Market   at       achievement of the objectives set out in this
 closing time. The London prices shall be converted             Agreement. The Executive Director shall supply data
 to United States cents per pound by using the current          necessary for the appropriate consideration of the
 six months forward rate of exdhange published in               foregoing elements.
 London at closing time. The Council shall decide
 the method of calculation to be used when the
 quotations on only one of these two cocoa markets             5 . The provisions of Article 76 shall not be
 are available or when the London Exchange Market               applicable to the revision of prices under this Article.
 is closed. The time for shift to the next three months'
 period is the 15th of the month immediately
 preceding the nearest active maturing month.
                                                                                       Article 30
 3 . The indicator price shall be the average of the
daily prices over a period of 15 consecutive market
                                                                                     Basic quotas
 days or, for the purposes of Article 34, (2) (c), over
a period of 22 consecutive market days. Any reference
in this Agreement to the indicator price being at,
below or above any figure means that the average of            1 . For each quota year, the basic quota allocated
the daily prices over the required period of                   to each exporting member listed in Annex A shall
consecutive market days has Ibeen at, below or above           be the percentage which the average of its annual
that figure. The Council shall adopt rules to                  production in the preceding five crop years for which
implement the provisions of this paragraph.                    final figures are available in the Organization
                                                               represents in the total of the averages for all the
                                                               exporting members listed in Annex A.
4. The Council may, by special vote, decide on any
other methods of determining the daily price and the
indicator price if it considers such methods to be             2. There shall be no basic quotas for the exporting
more satisfactory than those set out in paragraphs 2           members listed in Annex B producing less than
and 3 .                                                        10 000 tonnes of bulk cocoa .
 ---pagebreak--- 20. 11.76                           Official Journal of the European Communities                          No L 321 /41
3 . The Council shall revise the lists in Annexes A                                    Article 32
and B if the development of production of an
exporting member so requires .                                                   Scope of export quotas
                                                               1 . Annual export quotas cover:
                       Article 31
                                                                ( a) exports of cocoa from exporting members ; and
                 Annual export quotas                          (b) cocoa from the current crop year registered for
                                                                     export within the limit of the export quota in
                                                                     effect at the end of the quota year but shipped
1 . At least 40 days before the beginning of each                    after the quota year, provided that such exports
quota year, the Council shall adopt an estimate of                   shall <be made not later than the end of the first
the world net import demand for cocoa. In so doing                   quarter of the succeeding quota year and shall be
the Council shall take into account all relevant factors             subject to conditions to be established by the
affecting the demand for and the supply of cocoa,                    Council .
which shall include, inter alia, the past trends of
grindings, prospective stock variations and current
and anticipated price trends. In the light of this             2. For the purpose of determining the beans
estimate, and taking account of the expected volume            equivalent of the exports of cocoa products from
of exports not subject to quotas, and imports from             exporting members and exporting non-members, the
non-members, the Council shall forthwith determine             following shall be the conversion factors : cocoa
annual export quotas by special vote at a level such           butter 1-33 ; cocoa cake and powder 1-18 ; cocoa paste
                                                               and nibs 1-25 . The Council may determine if necess­
as would be required to maintain the prices within
the range specified in Article 29 .                            ary that other products containing cocoa are cocoa
                                                               products. The conversion factors for cocoa products
                                                               other than those for which conversion factors are set
                                                               out in this paragraph shall be fixed by the Council.
2. If, at least 35 days before the beginning of the
quota year, the Council is unable to reach agreement
on annual export quotas, the Executive Director shall          3 . The Council shall, on the basis of any document
submit to the Council his own proposal on the total            referred to in Article 49, keep the exports of cocoa
of annual export quotas. The Council shall                     products by exporting members and imports of cocoa
immediately proceed to a decision by special vote on           products from exporting non-members under
the proposal . The Council shall, in any event, deter­         continuous observation. If the Council finds that,
mine the annual export quotas at least 30 days before          during the quota year, the difference between exports
the beginning of the quota year.                               of cocoa cake and/or cocoa powder by an exporting
                                                               country and its exports of cocoa butter has
                                                               considerably increased at the expense of cocoa cake
3 . The estimate adopted under paragraph 1 , together          and/or cocoa powder because, for example, of
with the annual export quotas determined on that               increased extraction-method processing, the conver­
basis, shall be reviewed and, if necessary, revised by         sion factors to be used for the purpose of determining
the Council by special vote at its regular session in          the beans equivalent of its exports of cocoa products
the first half of the quota year concerned, in the light       during that quota year, and/or, if the Council so
of such updated statistical information as it may              decides, in a subsequent quota year, will be as
have collected under Article 57.                               follows : cocoa butter 2-15; cocoa paste and nibs 1*25;
                                                               cocoa cake and powder 0-30 ; with consequential
                                                               adjustment in the contribution remaining to be
                                                               collected in accordance with Article 39. However,
4. The annual export quota for each exporting                  this provision shall not apply if the decrease in
member shall be proportionate to the basic quota               exports of products other than cocoa butter is due
determined in accordance with Article 30 .
                                                               to increased domestic human consumption or to
                                                               other reasons — to be provided by the exporting
                                                               country — considered as satisfactory and acceptable
5. On the presentation of such evidence as it                  to the Council.
considers satisfactory, the Council shall authorize an
exporting member producing less than 10 000 tonnes
in any quota year to export during that year a                 4. Deliveries to the Buffer Stock Manager by
quantity not greater than its effective production             exporting members under Article 40 (2) and under
available for exports.                                         Article 46 ( 1 ), as well as diversion of cocoa under
 ---pagebreak---  No L 321 /42                       Official Journal of the European Communities                             20. 11 . 761
Article 46 (2), shall not be counted against the export        2. The following quotas shall have effect unless the
 quotas of those members.                                      Council decides by special vote to increase or reduce
                                                               them :
5 . If the Council is satisfied that cocoa has been
                                                               (a) when the indicator price is above the minimum
exported by exporting members for humanitarian or                   price + 6 US cents per pound, and at or below
 other non-commercial purposes, such cocoa shall not                the minimum price + 8 US cents per pound, the
be counted against the export quotas of those                       export quotas in effect shall be 100% of the initial
 members.
                                                                    annual export quotas ;
                                                               (b) when the indicator price is above the minimum
                       Article 33                                   price + 3 US cents per pound and at or below
                                                                    the minimum price + 6 US cents per pound,
                 Fine or flavour cocoa                              the export quotas in effect shall be 97% of the
                                                                    initial annual export quotas ;
1 . Notwithstanding Articles 31 and 39, the provisions         (c) when the indicator price is above the minimum
of this Agreement concerning export quotas and                      price + 8 US cents per pound the export quotas
contributions for financing the buffer stock shall not              in effect shall be suspended'.
apply to fine or flavour cocoa from any exporting
member listed in paragraph 1 of Annex C whose
production is exclusively of fine or flavour cocoa.           3 . When the indicator price is above the minimum
                                                              price and at or below the minimum price + 3 US
2. Paragraph 1 shall also apply in the case of any            cents per pound, the manager shall purchase cocoa
exporting member listed in paragraph 2 of Annex C,            beans up to 4% of the initial annual export quotas
part of whose production consists of fine or flavour          under the terms provided for by Article 40 (3) and
cocoa, to the extent of the proportion of their                (6).
production stated in paragraph 2 of Annex C. With
regard to the remaining proportion, the provisions
of this Agreement concerning export quotas and                4. When the indicator price is below the minimum
contributions for financing the buffer stock and other        price, the manager shall purchase cocoa beans under
limitations of this Agreement shall apply.                     the terms provided for by Article 40 (4) and (6).
3 . The Council may, by special vote, revise Annex C.         5. When the indicator price is above the minimum
                                                              price + 14 US cents per pound and at or below the
                                                              maximum price, sales from the buffer stock shall
4. If the Council finds that the production of, or            take place up to 7% of the initial annual export
export from, countries listed in Annex C has risen            quotas under the terms provided for by Article 41 ( 1 ).
sharply, it shall take appropriate steps to ensure that
no abuse or evasion of this Agreement is taking place.
                                                              6. When the indicator price is above the maximum
                                                              price, sales from the buffer stock shall take place
5 . Each exporting member listed in Annex C under­            under the terms provided for by Article 41 ( 1).
takes to require the presentation of an authorized
Council control document before permitting the
export of fine or flavour cocoa from its territory.
Each importing member undertakes to require the                                         Article 35
presentation    of an    authorized Council      control
document before permitting the import of fine or                            Compliance with export quotas
flavour cocoa into its territory.
                                                               1 . Members shall adopt the measures required to
                       Article 34                             ensure full compliance with the obligations under­
                                                              taken by them in this Agreement in respect of export
Operation and adjustment of annual export quotas              quotas. The Council may call upon members to adopt
                                                              additional measures, if necessary, for the effective
                                                              implementation of the export quota system, including
1 . The Council shall keep the market situation under         the making of regulations by exporting members
review and shall meet whenever circumstances so               providing for the registration of all their cocoa to be
require.                                                      exported within the limit of the export quota in effect.
 ---pagebreak---   20. 11 . 76                       Official Journal of the European Communities                            NoL 321 /43
 2. Exporting members undertake to regulate their               9. In the event that an introduction or a reduction
  sales in such a manner as to make for orderly                 of export quotas cannot be fully respected during the
 marketing and to be in a position to comply at all             current quota year because of the existence of bona
  times with their export quotas in effect. In any case,       fide contracts entered into when export quotas were
 no exporting member shall export more than 85%                 suspended or within export quotas in effect at the
  and 90% of its annual export quota determined                time the contracts were made, the adjustment shall
  under Article 31 during the first two and the first           be made in the export quotas in effect for the
  three quarters respectively.                                  succeeding quota year. The Council may require
                                                                evidence of such contracts.
 3 . Each exporting member undertakes that the
 volume of its exports of cocoa shall not exceed its           10. Members undertake to transmit immediately to
 export quota in effect.                                       the Council any information which they may obtain
                                                               in relation to any breach of this Agreement or of any
                                                               rules or regulations established by the Council.
 4. If an exporting member exceeds its export quota
 in effect by less than 1% of its annual export quota,
 this shall not be considered a breach of paragraph 3 .
 However, any such excess shall be deducted from the                                    Article 36
 export quota in effect of the member concerned in
 the following quota year.
                                                                               Redistribution of shortfalls
 5 . If an exporting member exceeds for the first time
 its export quota in effect beyond the margin of               1 . Each exporting member shall, as soon as possible
 tolerance referred to in paragraph 4, that member             and in any case before the end of May in each quota
 shall sell to the buffer stock, unless the Council           year, notify the Council of the extent to which and
 decides otherwise, an amount equal to the excess             the reasons why it expects either that it will not use
 within three months of this excess being discovered           all its quota in effect or that it will have a surplus
 by the Council. This amount shall be automatically           over that quota. In the light of such notifications
 deducted from its export quota in effect for the             and explanations the Executive Director shall, unless
 quota year immediately following the one in which            the Council decides otherwise by special vote taking
 the breach took place. Sales to the buffer stock under       into account market conditions, redistribute shortfalls
 this paragraph shall be made in accordance with              among exporting members in accordance with rules
 Article 40 (6) and (7).                                      which the Council shall establish covering the
                                                              conditions, timing and mode of such redistribution.
                                                              Such rules shall include provisions regulating the
 6. If an exporting member exceeds for a second or            manner in which reductions made under Article 35
 subsequent time its export quota in effect beyond the         (5 ) and (6) shall be dealt with.
 margin of tolerance referred' to in paragraph 4, that
member shall sell to the buffer stock, unless the
 Council decides otherwise, an amount equal to twice          2. For exporting members not in a position to notify
the excess within three months of this excess being           the Council of their expected shortfalls or surpluses
 discovered by the Council . This amount shall be             before the end of May because of the timing of the
automatically deducted from its export quota in               harvest of their main crop, the time limit for
effect for the quota year immediately following the           notification of shortfalls or surpluses shall be
one in which the breach took place. Sales to the              extended up to the middle of July. The exporting
buffer stock under this paragraph shall be made in            countries which qualify for this extension of time are
accordance with Article 40 (6) and (7).                       listed in Annex E.
7. Any action taken under paragraphs 5 and 6 shall
be without prejudice to the provisions of Chapter XV.                                  Article 37
8 . When the Council determines annual export                       Institution and financing of the buffer stock
quotas under Article 31 , it may decide by special
vote to establish quarterly export quotas. It shall at
the same time establish the rules for operating and           1 . A buffer stock arrangement is hereby instituted.
removing such quarterly export quotas. In
establishing such rules the Council shall take into           2. The buffer stock shall purchase and hold only
account the production pattern of each exporting              cocoa beans and its maximum capacity shall be
member.                                                       250 000 tonnes .
 ---pagebreak--- No L 321 /44                       Official Journal of the European Communities                             20. 11 . 76
3 . The Buffer Stock Manager shall, in accordance                                     Article 38
with rules adopted by the Council, be responsible
for the operation of the buffer stock and for buying                 Investment of surplus buffer stock funds
cocoa beans, selling and maintaining in good
condition stocks of cocoa beans and, without
incurring market risks, replacing lots of cocoa beans         1 . Part of the funds of the buffer stock as are
in accordance with the relevant provisions of this            temporarily surplus to that required' to finance its
Agreement. The Council shall examine the feasibility          operations may be suitably deposited in importing
and desirability of the conversion into cocoa products        and exporting member countries in accordance with
of cocoa beans purchased by the buffer stock and,             rules to be established by the Council.
in the light of this examination, the Council may
make recommendations to be taken into account at
the re-negotiation of this Agreement under Article 75 .       2. These rules shall, among other things, take into
                                                              account the liquidity necessary for the full operation
                                                              of the buffer stock and the desirability of maintaining
4. In order to finance its operations, the buffer stock       the real value of the funds .
shall, from the start of the first quota year after the
entry into force of this Agreement, receive regular
income in the form of contributions charged on
cocoa in accordance with the provisions of Article 39.                               Article 39
If, however, the Council has other sources of finance
it may decide another date on which to implement                    Contributions for financing the buffer stock
the contribution .
                                                               1 . The contribution charged on cocoa either on first
5 . Should the income of the buffer stock through             export by a member or on first import by a member
contributions at any time seem likely to be                   shall be 1 US cent per pound of cocoa beans and
insufficient to finance its operations, the Council may       proportionately on cocoa products in accordance
by special vote borrow funds in freely convertible            with Article 32 (2) and (3 ). In any case the
currency from appropriate sources, including the              contribution shall only be charged once. For this
Governments of member countries. Any such loans               purpose, imports of cocoa by a member from a non­
shall be repaid out of the proceeds of contributions,         member country shall be deemed to have originated
of the sale of cocoa beans by the buffer stock and            from that non-member unless satisfactory evidence
of miscellaneous income of the buffer stock, if any.          is given that such cocoa originated from a member.
Individual members of the Organization shall not              The Council shall review annually the buffer stock
be responsible for the repayment of such loans.               contribution and, notwithstanding the provisions of
                                                              the first sentence of this paragraph may, by special
                                                              vote, determine a lower rate of contribution or decide
6. The cost of operating and maintaining the buffer           to suspend the contribution in the light of the
stock including :                                             financial resources and obligations of the Organiz­
                                                              ation in relation to the buffer stock.
 ( a) the remuneration of the manager and the
      members of the staff who operate and maintain
      the buffer stock, the cost to the Organization of       2. Certificates of contribution shall be issued by the
      administering and controlling the collection of         Council in accordance with the rules which it shall
      contributions and interest or capital charges due       establish . Such rules shall take into account the
      on sums borrowed by the Council, and                    interests of the cocoa trade and shall cover, inter alia,
                                                              the possible use of agents, the issuance of documents
 (b) other costs such as the cost of transportation and       against contributions, and the payment of contri­
      insurance from the fob point into the buffer stock      butions within a given time limit.
      storage point, storage including fumigation,
      handling charges, insurance, management and
      inspection and any expenditure incurred in              3 . Contributions under this Article shall be payable
      replacing lots of cocoa beans to maintain their         in freely convertible currencies and shall be exempt
      condition and value,                                    from foreign exchange restrictions.
shall be met out of the regular source of income              4. Nothing contained in this Article shall affect the
from contributions or loans under paragraph 5 or              right of any buyer or seller to regulate the terms of
the proceeds of resale under paragraph 6 of                   payment for supplies of cocoa by agreement between
Article 40 .                                                  them .
 ---pagebreak--- 20. 11 . 76                          Official Journal of the European Communities                            No L 321/45
                          Article 40                                       the proceeds of the sale less the payment
                                                                           made under (i) and' the cost of transportation
               Purchases by the buffer stock                               and insurance from the fob point into the
                                                                           buffer stock storage point, storage and
                                                                           handling charges, and costs, if any, of
1 . For the purposes o»f this Article, the maximum                         replacing lots of cocoa beans as necessary to
                                                                           maintain the condition and value of such
capacity of the buffer stock shall be divided into
                                                                           lots .
individual entitlements for each exporting member
in the same proportion as its basic quota determined
in accordance with Article 30.
                                                                7. Where a member has already sold to the manager
                                                                a quantity of cocoa beans equal to its individual
2. If annual export quotas are reduced under                    entitlement as defined in paragraph 1 , the manager
Article 34, each exporting member shall forthwith               shall for subsequent purchases pay at the time of
offer to sell to the Buffer Stock Manager, and the              delivery only such a price as would be realized by
manager shall, within 10 days of the quota reduction,           the disposal of the cocoa beans for non-traditional
enter into a contract to buy from each exporting                uses. If cocoa beans bought under the provisions of
member, an amount of cocoa beans equal to the                   this paragraph are subsequently resold under the
reduction in its quota.                                         provisions of Article 41 , the manager shall make a
                                                                complementary payment to the exporting member
                                                                concerned representing the proceeds of the re-sale
3 . When the manager makes purchases under                      less the payment already made under this paragraph
Article 34 (3 ), he shall continue to purchase coc&a            and the cost of transportation and insurance from
beans up to 4% of the initial annual export quotas,             the fob point into the buffer stock storage point,
or until the indicator price rises above the minimum            storage and handling charges, and costs, if any, of
price + 3 US cents per pound, whichever is earlier.             replacing lots of cocoa beans as necessary to maintain
                                                                the condition and value of such lots.
4. When the manager makes purchases under
Article 34 (4), he shall continue to purchase cocoa             8 . Where cocoa beans are sold to the manager under
beans until the indicator price rises above the                 paragraph 2, the contract shall contain a clause
minimum price or the maximum capacity of the                    allowing the exporting member to cancel all or part
buffer stock is reached, whichever is earlier.                  of the contract before the cocoa beans are delivered :
5 . The Manager shall purchase only cocoa beans                 ( a) if subsequently in the same quota year the
of recognized standard marketable grades and in                      reduction in quota which gave rise to the sale
quantities of not less than 100 tonnes. Such beans                   is restored under the provisions of Article 34; or
shall be the property of the Organization and under
its control .                                                   (b) to the extent that, after making such sales,
                                                                     production in the same quota year proves to be
                                                                     insufficient to satisfy the member's export quota
6. In purchasing cocoa beans under the provisions                    in effect .
of Article 34 (3 ) and (4) and' paragraph 2 of this
Article, the manager shall make :
                                                                9. Purchase       contracts  under   this   Article   shall
( a) payment at current market prices in accordance             provide for delivery within a period to be stipulated
      with rules to be determined by the Council ; or           in the contract but at the latest within two months
                                                                after the end of the quota year.
( b ) at the request of the exporting member concerned,
      ( i) an initial payment of 25 US cents per pound          10. ( a) The manager shall keep the Council informed
           fob on delivery of the cocoa beans ; provided                   of the financial position of the buffer stock.
           that at any time after the end of the first                     If he considers that funds       will   not be
           quota year the Council, on the recommend­                       sufficient to pay for the cocoa beans which
           ation of the manager, may decide, by special                    he believes will be offered to him during
           vote, in the light of the current and prospec­                  the current quota year, he shall request the
           tive financial position of the buffer stock, to                 Executive Director to convene a special
           increase the initial payment.                                   session of the Council .
      (ii) a complementary payment on the sale of the                  (b) If the Council is unable to find any other
           cocoa beans by the buffer stock representing                    practicable solution, it may by special vote
 ---pagebreak---   No L 321 /46                            Official Journal of the European Communities                              20. 11 . 76
            suspend or restrict purchases under                                              Article 42
            paragraphs 2, 3 , 4 and 7, until such time as
             it is able to resolve the financial situation.              Withdrawal of cocoa beans from the buffer stock
 11 . The manager shall maintain appropriate records                  1 . Notwithstanding the provisions of Article 41, an
 to enable him to fulfil his functions under this                    exporting member which is unable to fulfil its quota
 Agreement.                                                          during a quota year owing to a shortfall in its crop
                                                                     may apply to the Council for approval to withdraw
                                                                      all or part of its cocoa beans purchased by the Buffer
                                                                     Stock Manager during the preceding quota year and
                             Article 41                              still held in stock unsold, to the extent of the amount
                                                                      by which its export quota in effect exceeds production
                                                                     for the quota year. The exporting member concerned
Buffer stock sales in defence of the maximum price                   shall pay to the manager, on release of the cocoa
                                                                     beans, the costs incurred in respect of the cocoa
                                                                     beans covering the initial payment, the cost of
 1 . The Buffer Stock Manager shall make sales from                  transportation and insurance from the fob point into
the buffer stock pursuant to Article 34 (5 ) and (6)                 the buffer stock storage point, and storage and
 in accordance with the provisions of this Article :                 handling charges.
 (a) sales shall be at current market prices.                       2. The Council shall establish the rules for the
                                                                     withdrawal of cocoa beans from the buffer stock
(b) when sales from the buffer stock commence                        under paragraph 1 .
     pursuant to Article 34 (5 ), the manager shall
     continue to offer to sell until :
                                                                                             Article 43
     (i)    the indicator price falls to the minimum price
             + 14 US cents per pound ; or
                                                                          Changes in the exchange rates of currencies
     (ii) he has exhausted all the supplies at his
            disposal ; or
                                                                     1 . A special session of the Council shall be called
     ( iii) he has sold up to 7% of the initial export              by the Executive Director either on his own
            quotas ; whichever is earliest.                         initiative or at the request of members in accordance
                                                                    with Article 9 (2), if conditions on the foreign
 (c) when the indicator price is above the maximum                   exchange markets are such as to have important
     price, the manager shall continue to offer to sell              implications for the price provisions of this
     until the indicator price falls to the maximum                 Agreement. Special sessions of the Council under
     price or until he has exhausted all the supplies               this paragraph shall be convened within not more
     at his disposal, whichever is earlier.                          than four working days.
                                                                    2. After calling such special session and pending
2. In making sales in accordance with paragraph 1 ,                 its outcome, the Executive Director and the Buffer
the manager shall, in accordance with rules                         Stock Manager may take such minimum interim
approved by the Council, sell through normal                        measures as they consider necessary to avoid serious
channels to firms and organizations in member                       disruption of the effective functioning of this
countries, but mainly in importing member                           Agreement on account of conditions on the foreign
countries, engaged in the trade in or processing of                 exchange markets. In particular they may, after
cocoa for the purpose of future processing.                         consultation with the Chairman of the Council,
                                                                    temporarily restrict or suspend operations of the
                                                                    buffer stock .
3 . In making sales in accordance with paragraph 1 ,
the manager shall, subject to the acceptability of the
price bid, give first refusal to purchasers in member               3 . After consideration of the circumstances,
countries before accepting bids from purchasers in                  including a review of the interim measures that may
non-member countries.                                               have been taken by the Executive Director and the
                                                                    manager and the potential effect that conditions on
                                                                    the foreign exchange markets mentioned above may
4. The buffer stock shall be stored in such locations               have on the effective operation of this Agreement,
as will facilitate immediate ex-store delivery to                   the Council may, by special vote, take any necessary
buyers referred to in paragraph 2.                                  corrective measures .
 ---pagebreak---   20. 11 . 76                          Official Journal of the European Communities                           No L 321/47
                            Article 44                             2. In offering cocoa for sale when the price is above
                                                                  the maximum price, exporting members shall give
               Liquidation of the buffer stock                    preference to importers in importing member
                                                                  countries as against importers in non-member
                                                                  countries. When the indicator price is above the
  1 . If this Agreement is to be replaced by a new                maximum price, exporting members shall, where
  agreement which includes provisions relating to the             possible, endeavour to place a limitation on their
  buffer stock, the Council shall make such                       exports to non-member countries.
  arrangements as it considers appropriate regarding
  the continued functioning of the buffer stock.
                                                                                         Article 46
  2. If this Agreement terminates without being                              Diversion to non-traditional uses
  replaced by a new agreement which includes
 provisions relating to the buffer stock, the following
 provisions shall apply :                                         1 . If the quantity of cocoa beans held in store by the
                                                                  Buffer Stock Manager under Article 40 exceeds the
  (a) No further contracts shall be made for the                  maximum capacity of the buffer stock, the manager
      purchase of cocoa beans for the buffer stock. The           shall, under terms and conditions laid down by the
      Buffer Stock Manager shall, in the light of                 Council, dispose of such excess cocoa beans for
      current market conditions, dispose of the buffer            diversion to non-traditional uses. Such terms and
      stock in accordance with the rules laid down by             conditions shall, inter alia, be designed to ensure
      the Council by special vote on the entry into               that the cocoa does not re-enter the normal cocoa
      force of this Agreement, unless, prior to the               market. Each member shall cooperate with the
      termination of this Agreement, the Council                  Council in this respect to the fullest extent possible.
      revises these rules by special vote. The manager
      shall retain the right to sell cocoa beans at any          2. Instead of selling cocoa beans to the manager
      time during liquidation to meet the costs thereof.         when the maximum capacity of the buffer stock has
                                                                 been reached, an exporting member may, under the
 (b) The proceeds of sales and monies standing to the            control of the Council, divert internally its surplus
      account of the buffer stock shall be used to pay,          cocoa to non-traditional uses .
      in the following order :
                                                                 3 . Whenever any case of diversion inconsistent with
      (i)   the costs of liquidation,                            this Agreement is brought to the attention of the
      (ii) any outstanding balance of, plus interest on,         Council, including any case of re-entry into the
            any loan incurred by or on behalf of the             market of cocoa diverted to non-traditional uses, the
            Organization in respect of the buffer stock,          Council shall decide at the earliest opportunity what
                                                                 measures should be taken to remedy the situation.
      (iii) any outstanding complementary payments
            under Article 40 .
 (c) Any monies remaining after payments have been                                    CHAPTER VIII
      made under (b) shall be paid to the exporting
      members concerned in proportion to the                     REPORTING OF IMPORTS AND EXPORTS, RECORDS
      contribution-paid exports of each such exporting           OF     QUOTA      PERFORMANCE          AND     CONTROL
      member.                                                                           MEASURES
                                                                                         Article 47
                           Article 45
                                                                 Reporting of exports and record of quota performance
                     Assurance of supplies
                                                                 1 . In accordance with rules to be established by the
                                                                 Council, the Executive Director shall maintain a
1 . Exporting members undertake to pursue sales                  record of the annual export quota and its
and export policies in accordance with the provisions            adjustments in the case of each exporting member.
of this Agreement which will not artificially restrict           Against the quota shall be recorded the exports for
offer for sale of available cocoa and which will                 quota purposes which are made by that member so
ensure the regular supply of cocoa to importers in               that the quota position of each exporting member is
importing member countries.                                      kept up to date.
 ---pagebreak---  No L 321 /48                       Official Journal of the European Communities                            20. 11 . 76
 2. For this purpose, each exporting member shall              4. The Council shall by special vote adopt such
 report to the Executive Director at such intervals as         rules as it considers necessary in respect of
 the Council may determine the total quantity of               certificates of contribution     and other authorized
 exports registered, together with such other data as          Council control documents.
the Council may prescribe. This imormation shall
 be published at the end of each month.                        5 . For fine or flavour cocoa the Council shall make
                                                               such rules as it considers necessary in respect of the
3. Exports for non-quota purposes shall be recorded            simplification of the procedure for authorized
 separately.                                                   Council control documents, taking into account all
                                                               relevant factors.
                       Article 48
                                                                                     CHAPTER IX
          Reporting of imports and exports
                                                                            PRODUCTION AND STOCKS
 1 . In accordance with rules to be established by the
Council, the Executive Director shall maintain a                                      Article SO
record of members' imports and of exports from
importing members.                                                             Production and stocks
2. For this purpose, each member shall report to
the Executive Director the total quantities of its            1 . Members recognize the necessity of keeping
imports, and each importing member shall report to            production in reasonable balance with consumption,
the Executive Director the total quantities of its            and shall cooperate with the Council in the
exports, at such intervals as the Council may                 attainment of this objective.
determine, together with such other data as the
Council may prescribe. This information shall be              2. Each producing member may develop a
published at the end of each month.                           programme to adjust its production, in order that
                                                              the objective set forth in paragraph 1 may be
                                                              attained. Each producing member concerned shall
3 . Imports which, under this Agreement, do not               be responsible for the policies and procedures it
count against export quotas shall be recorded                 applies to attain this objective.
separately.
                                                              3 . The Council shall review annually the level of
                                                              stocks held throughout the world and make any
                       Article 49                             necessary recommendations based on this review.
                   Control measures                           4. At its first session, the Council shall take
                                                              measures to develop a programme for the collection
                                                              of information needed to establish, on a scientific
1 . Each member exporting cocoa shall require the             basis, the world's current and potential productive
presentation of a valid certificate of contribution or        capacity, as well as the world's current and potential
other authorized Council control document before              consumption. Members shall facilitate the carrying
permitting the shipment of cocoa from its customs             out of this programme.
territory. Each member importing cocoa shall require
the presentation of a valid certificate of contribution
or other authorized Council control document before
                                                                                     CHAPTER X
permitting the import of any cocoa into its customs
territory whether from a member or a non-member.
                                                                          EXPANSION OF CONSUMPTION
2. Certificates of contribution will not be required
for cocoa exported under the provisions of Article                                    Article 51
32 (4) and (5 ). The Council shall arrange to issue
appropriate control documents to cover such                          Obstacles to the expansion of consumption
shipments.
3 . Certificates of contribution or other authorized          1 . Members recognize the importance of ensuring
Council control documents shall not be issued to              the greatest possible expansion of the cocoa
cover shipments, in any period, of cocoa in excess of         economy and therefore of facilitating the expansion
authorized exports for that period.                           of cocoa consumption in relation to production so
 ---pagebreak--- 20. 11 . 76                           Official Journal of the European Communities                          No L 321 /49
as to secure the best equilibrium in the long term              shall prohibit materials of non-cocoa origin from
between supply and demand, and in this connection                being used in place of cocoa to mislead the consumer.
also recognize that it is important to bring about
the gradual removal of all possible obstacles to such           2. In preparing or reviewing regulations based on
expansion.                                                      the principles in paragraph 1, members shall take
                                                                fully into account the recommendations and decisions
2. The Council shall identify the specific problems             of competent international bodies such as the
related to the obstacles to the expansion of the trade          Council and the Codex Committee on Cocoa
in and consumption of cocoa referred to in                      Products and Chocolate.
paragraph 1, and shall seek mutually acceptable
practical measures designed to remove progressively             3 . The Council may recommend to a member that
such obstacles .
                                                                it take any measures which the Council considers
                                                                advisable for assuring the observance of the
3 . In view of the objectives stated above and the              provisions of this Article.
provisions of paragraph 2, members shall endeavour
to apply measures to reduce progressively the
obstacles to the expansion of consumption and as                4. The Executive Director shall present an annual
far as , possible eliminate them, or to diminish                report to the Council on the manner in which the
substantially their impact.                                     provisions of this Article are being observed.
4. The Council may, in order to further the purposes
of this Article, make any recommendations to                                          CHAPTER XI
members and shall examine periodically, beginning
at its first regular session in the second quota year,                           PROCESSED COCOA
the results achieved .
                                                                                       Article 54
5 . Members      shall  inform    the   Council    of   all
measures adopted with a view to implementing the                                    Processed cocoa
provisions of this Article.
                        Article 52
                                                                1 . The needs of developing countries to broaden
                                                                the base of their economies through, inter alia,
                                                                industrialization and the export of manufactured
              Promotion of consumption                          products — including cocoa processing and the
                                                                export of cocoa products and chocolate — are
1 . The Council may establish a committee whose                 recognized. In this connection, the need to avoid
aim shall be to stimulate the expansion of                      serious injury to the cocoa economy of importing
consumption of cocoa              both exporting and            and exporting members is also recognized.
importing countries. The Council shall periodically
review the work of the committee .                              2. If any member considers that there is a danger
                                                                of injury to its interest in any of the above respects,
2. The cost of the promotion programme shall be                 that member may consult with the other member
met by contributions from exporting members .                   concerned with a view to reaching an understanding
Importing members may also contribute financially.              satisfactory to the parties concerned,' - failing which
Membership of the committee shall be limited to                 the member may report to the Council, which shall
members contributing to the promotion programme.                use its good offices in the matter to reach such
                                                                understanding.
3 . The committee shall seek the approval of a
member before conducting a campaign in the
territory of that member.                                                            CHAPTER XII
                                                                          RELATIONS BETWEEN MEMBERS
                        Article 53                                               AND NON-MEMBERS
                    Cocoa substitutes
                                                                                       Article 55
1 . Members recognize that the use of substitutes                      Limitation of imports from non-members
may prejudice the expansion of cocoa consumption.
In this regard they agree to establish regulations on
cocoa products and chocolate or to adapt existing                1 . Each member        t limit its annual imports of
regulations, if necessary, so that the said regulations         cocoa produced in non-member countries, other
 ---pagebreak--- No L 321/50                          Official Journal of the European Communities                            20 . 11.76
than imports of fine or flavour cocoa from exporting            obligations assumed by members with respect to non­
countries listed in Annex C, in accordance with the             members before the entry into force of this
provisions of this Article.                                     Agreement, provided that any member which has
                                                                assumed such conflicting obligations shall fulfil them
                                                                in such a way as to attenuate as much as possible
2. Each member undertakes for each quota year :                 the conflict between those obligations and the
                                                                obligations set out in this Article, that it shall take
(a) not to permit the import of a total quantity of             steps as promptly as possible to reconcile those
     cocoa produced in non-member countries as a                obligations and the provisions of this Article, and
     group which is in excess of the average quantity           that it shall describe to the Council in detail the
     imported from them as a group in the three                 nature of those obligations and the steps it has taken
     calendar years 1970, 1971 and 1972;                        to attenuate or eliminate the conflict.
(b) to reduce by half the quantity specified in (a)
    when the indicator price falls below the minimum
                                                                                       Article 56
     price, and to maintain this reduction until the
     level of quotas in effect reaches that provided for
     in Article 34 (2) (a).                                            Commercial transactions with non members
3 . The Council may by special vote suspend in whole            1 . Exporting members undertake not to sell cocoa
or in part the limitations under paragraph 2. The               to non-members on terms commercially more
limitations in paragraph 2 ( a) shall not in any event          favourable than those which they are prepared to
apply when the indicator price of cocoa is above the            offer at the same time to importing members, taking
maximum price.                                                  into account normal trade practices.
                                                                2. Importing members undertake not to buy cocoa
4. The limitations under paragraph 2 (a) shall not              from non-members on terms commercially more
apply to cocoa purchased under bona fide contracts              favourable than those which they are prepared to
concluded when the indicator price was above the                accept at the same time from exporting members,
maximum price, nor those in 2 (b) to cocoa                      taking into account normal trade practices.
purchased under bona fide contracts concluded
before the indicator price fell below the minimum
price. In such cases the reductions shall, subject to           3 . The Council shall periodically review the
the provisions of paragraph 2 (b), be applied in the            operation of paragraphs 1 and 2 and may require
following quota year unless the Council decides to              members to supply appropriate information in
waive the reductions or to apply them in a subsequent           accordance with Article 57 .
quota year.
                                                                4. Without prejudice to the provisions of Article 55
5. Members shall inform the Council regularly of                ( 8 ), any member which has reason to believe that
the quantities of cocoa imported by them from non­              another member has not fulfilled the obligation under
members or exported by them to non-members.                     paragraph 1 or 2 may so inform the Executive
                                                                Director and call for consultations under Article 61 ,
                                                                or refer the matter to the Council under Article 63 .
6. Any imports by a member from non-members in
excess of the quantity which it is permitted to import
under this Article shall be deducted from the
quantity which such member would otherwise be
permitted to import in the next quota year, unless                                   CHAPTER XIII
the Council decides otherwise .
                                                                             INFORMATION AND STUDIES
7 . If a member on more than one occasion fails to
comply with the provisions of this Article, the
Council may by special vote suspend both its voting                                    Article 57
rights in the Council and its right to vote or to have
its votes cast in the Executive Committee.                                            Information
8. The obligations set out in this Article shall not            1 . The Organization shall act as a centre for the
prejudice     conflicting   bilateral   or     multilateral     collection , exchange and publication of:
 ---pagebreak--- 20. 11 . 76                         Official Journal of the European Communities                          No L 321 /51
 ( a) statistical information on world production, sales,      Agreement and the performance of members in
      prices, exports and imports, consumption and             conforming to the principles and promoting the
      stocks of cocoa ; and                                    objectives thereof. It may then make recommen­
                                                               dations to members regarding ways and means of
 (b ) in so far as is considered appropriate, technical        improving the functioning of this Agreement.
      information on the cultivation, processing and
      utilization of cocoa .
2. In addition to information which members are                                    CHAPTER XIV
required to furnish under other Articles of this
Agreement, the Council may require members to                             RELIEF FROM OBLIGATIONS IN
furnish such information as it considers necessary                        EXCEPTIONAL CIRCUMSTANCES
for its operations, including regular reports on
policies for production and consumption, sales,
prices, exports and imports , stocks and taxation .                                  Article 60
3 . If a member fails to supply, or finds difficulty in       Relief from obligations in exceptional circumstances
supplying, within a reasonable time, statistical and
other information required by the Council for the
proper functioning of the Organization, the Council            1 . The Council may, by special vote, relieve a
may require the member concerned to explain the               member of an obligation on account of exceptional
reasons therefor. If it is found that technical assistance    or emergency circumstances, force majeure, or
is needed in the matter, the Council may take any             international obligations under the Charter of the
necessary measures .                                          United Nations for territories administered under the
                                                              trusteeship system.
4. The Council shall at appropriate times but not
less than twice a year publish estimates of production         2. The Council, in granting relief to a member
of cocoa beans and grindings for the current quota             under paragraph 1 , shall state explicitly the terms
year.                                                          and conditions on which and the period for which
                                                               the member is relieved of the obligation.
                         Article 58
                                                              3 . Notwithstanding the foregoing provisions of this
                                                              Article, the Council shall not grant relief to a
                            Studies
                                                               member in respect of:
The Council shall, to the extent it considers                 ( a) the obligation under Article 24 to pay
necessary, promote studies of the economics of cocoa
                                                                   contributions, or the consequences of a failure
production and distribution, including trends and                  to pay them ;
projections, the impact of governmental measures in           (b) any export quota or other limitation on exports,
exporting and importing countries on the production                if the quota or other limitation has already been
and consumption of cocoa, the opportunities for                    exceeded ;
expansion of cocoa consumption for traditional and
possible new uses, and the effects of the operation           (c) the obligation to require payment of any
of this Agreement on exporters and importers of                    contribution charged under Article 39.
cocoa, including their terms of trade, and may submit
recommendations to members on the subjects of these
studies. The Council may also decide to promote
                                                                                   CHAPTER XV
scientific research in specific areas of production,
manufacture and consumption. In the promotion of
these studies and research, the Council may                     CONSULTATIONS, DISPUTES AND COMPLAINTS
cooperate with international organizations and
research institutions in member countries .
                                                                                     Article 61
                         Article 59                                                Consultations
                       Annual review
                                                              Each member shall accord sympathetic consideration
                                                              to any representations made to it by another member
The Council shall, as soon as practicable after the           concerning the interpretation or application of this
end of each quota year, review the operation of this          Agreement and shall afford adequate opportunity
 ---pagebreak---  No L 321/52                             Official Journal of the European Communities                               20. 11 . 76
 for consultations. In the course of such consultations,            which, after considering all the relevant information,
 on the request of either party and with the consent                shall decide the dispute.
 of the other, the Executive Director shall establish
 an appropriate conciliation procedure. The costs of
 such procedure shall not be chargeable to the                                               Article 63
 Organization. If such procedure leads to a solution,
 this shall be reported to the Executive Director. If
 no solution is reached, the matter may, at the request                       Complaints and action by the Council
 of either party, be referred to the Council in accord­
 ance with Article 62 .
                                                                     1 . Any complaint that any member has failed to
                                                                    fulfil its obligations under this Agreement shall, at
                                                                    the request of the member making the complaint, be
                            Article 62                              referred to the Council, which shall consider it and
                                                                    make a decision on the matter.
                             Disputes
                                                                    2. Any finding by the Council that a member is in
                                                                    breach of its obligations under this Agreement shall
 1 . Any dispute concerning the interpretation or                   be made by a simple distributed majority vote and
 application of this Agreement which is not settled                 shall specify the nature of the breach.
 by the parties to the dispute shall, at the request of
 either party to the dispute, be referred to the Council
 for decision .                                                     3 . Whenever the Council, whether as a result of
                                                                    a complaint or otherwise, finds that a member is in
                                                                    breach of its obligations under this Agreement it
 2. When a dispute has been referred to the Council                 may, without prejudice to such other measures as
 under paragraph 1 , and has been discussed, a                      are specifically provided for in other Articles of
 majority of members, or members holding not less                   this Agreement, including Article 73 , by special vote :
 than one-third of the total votes, may require the
 Council, before giving its decision, to seek the                    ( a) suspend that member's voting rights in the
 opinion on the issues in dispute of an ad hoc                            Council and in the Executive Committee ; and
 advisory panel to be constituted as described in
 paragraph 3 .                                                       (b) if it considers necessary, suspend additional rights
                                                                          of such member, including that of being eligible
 3 . ( a) Unless the Council unanimously decides                          for, or of holding, office in the Council or in any
          otherwise, th,e ad hoc advisory panel shall                     of   its committees    until   it has fulfilled    its
          consist of :                                                    obligations.
            (i ) two persons, one having wide experience            4. A member whose voting rights are suspended
                in matters of the kind in dispute and the           under paragraph 3 shall remain liable for its financial
                  other having legal standing and                   and other obligations under this Agreement.
                  experience, nominated by the exporting
                  members,
           (ii) two such persons nominated by the
                  importing members, and                                                  CHAPTER XVI
          (iii ) a chairman selected unanimously by the
                                                                                   FAIR LABOUR STANDARDS
                 four persons nominated under (i) and (ii)
                 or, if they fail to agree, by the Chairman
                 of the Council .
                                                                                             Article 64
     (b) Nationals of members shall not be ineligible
          to serve on the ad hoc advisory panel .                                      Fair labour standards
     (c) Persons appointed to the ad hoc advisory
          panel shall act in their personal capacities and          Members declare that, in order to raise the levels of
          without instructions from any Government.                living standards of populations and provide full
                                                                   employment, they will endeavour to maintain fair
     (d) The costs of the ad hoc advisory panel shall be            labour standards and working conditions in the
         paid by the Organization.                                 various branches of cocoa production in the countries
                                                                    concerned, consistent with their stage of development,
4. The opinion of the ad hoc advisory panel and the                 as regards both agricultural and industrial workers
reasons therefor shall be submitted to the Council                  employed therein.
 ---pagebreak--- 20. 11.76                              Official Journal of the European Communities                         No L 321 /53
                      CHAPTER XVII                                2. The Council of the International Cocoa Agree­
                                                                  ment 1972 may, pending the entry into force of this
                    FINAL PROVISIONS                              Agreement, establish the conditions referred to in
                                                                  paragraph 1 , subject to confirmation by the Council
                          Article 65
                                                                  of this Agreement and the Government concerned.
                                                                  3 . If the Government is the Government of            an
                           Signature
                                                                  exporting country which is not listed in Annex A or
                                                                  Annex C, the Council shall, as appropriate,
This Agreement shall be open for signature at United              determine in accordance with Article 30 a basic
Nations Headquarters from 10 November 1975 until                  quota for that country, which country shall be
and including 31 August 1976 by parties to the                    deemed Co be listed in Annex A.
International Cocoa Agreement 1972 and Govern­
ments      invited   to    the   United     Nations     Cocoa     4. Accession shall be effected by deposit of an
Conference 1975 .                                                 instrument of accession with the Secretary-General
                                                                  of the United Nations .
                          Article 66
                                                                                         Article 68
            Ratification, acceptance, approval
                                                                           Notification of provisional application
1 . This Agreement shall be subject to ratification,
acceptance or approval by the signatory Governments               1 . A signatory Government which intends to ratify,
in accordance with their respective constitutional                accept or approve this Agreement or a Government
procedures.                                                       for which the Council has established conditions for
                                                                  accession, but which has not yet been able to deposit
2. Instruments of ratification, acceptance or                     its instrument may, at any time, notify the Secretary­
approval shall be deposited with the Secretary­                   General of the United Nations that it will apply this
General      of the    United Nations       not later than
                                                                  Agreement provisionally either when it enters into
30 September 1976; provided, however, that the                    force in accordance with Article 69 or, if it is already
Council may grant extensions of time to signatory                 in force, at a specified date. Each Government giving
Governments which are unable to deposit their                     such notification shall at that time state whether it
 instruments by that date.                                        will be an exporting member or an importing
                                                                   member.
3 . Each Government depositing an instrument of
ratification, acceptance or approval shall, at the time
of such deposit, indicate whether it is an exporting              2. A Government which has notified under para­
 member or an importing member.                                   graph 1 that it will apply this Agreement either when
                                                                  it enters into force or at a specified date shall, from
                                                                  that time, be a provisional member. It shall remain
                          Article 67                              a provisional member until the date of deposit of
                                                                  its instrument of ratification, acceptance, approval
                           Accession                               or accession .
 1 . This Agreement shall be open to accession by                                         Article 69
 the Governments of all States (*) upon conditions
 established by the Council .                                                          Entry into force
                                                                   1 . This Agreement shall enter definitively into force
 (*) At its seventh plenary meeting on 20 October 1975 , the
     United Nations Cocoa Conference 1975 adopted the              on 1 October 1976, if by that date Governments
     following understanding recommended by its Ad­                representing at least five exporting countries having
     ministrative and Legal Committee :                            at least 80 per cent of the basic quotas as set out in
     In accordance with its terms, this Agreement will be          Annex F and Governments representing importing
     open to accession by the Governments of all States,           countries having at least 70% of total imports as set
     and the Secretary-General of the United Nations will          out in Annex D have deposited their instruments of
     act as depositary. It is the understanding of the Con­        ratification, acceptance, approval or accession with
     ference that the Secretary-General, in discharging his        the Secretary-General of the United Nations. If this
     functions as depositary of an agreement with an 'All­
     States' clause, will follow the practice of the General       Agreement has not definitively entered into force in
     Assembly of the United Nations in implementing such           accordance with the preceding sentence, it shall do
     a clause and, whenever advisable, will request the opinion    so whenever these percentage requirements            are
     of the General Assembly before receiving an instrument        satisfied by the deposit of instruments of ratification,
     of accession.                                                 acceptance, approval or accession.
 ---pagebreak--- No L 321 /54                       Official Journal of the European Communities                              20. 11 . 76
2. If this Agreement has not entered into force               approval or accession, or at any time thereafter, by
definitively on 1 October 1976 in accordance with             notification to the Secretary-General of the United
 paragraph 1 it shall enter into force provisionally on       Nations, declare that this Agreement shall extend
A October 1976, if by that date Governments                   to any of thp territories for whose international
 representing at least five exporting countries having        relations it is for the time being ultimately
 at least 80% of the basic quotas as set out in Annex         responsible, and this Agreement shall extend to the
 F and Governments representing importing countries           territories named therein from the date         of such
 having at least 70% of total imports as set out in           notification, or from the date on which this
 Annex D have deposited their instruments of                  Agreement enters into force for that Government,
 ratification, acceptance', approval or accession, or         whichever is the later.
 have notified the Secretary-General of the United
 Nations that they will apply this Agreement
 provisionally when it enters into force.
                                                              2. Any contracting party which desires to exercise
 3 . If the requirements for entry into force under           its rights under Article 3 in respect of any of the
 paragraph 1 or 2 have not been met on 1 October              territories for whose international relations it is for
 1976, the Secretary-General of the United Nations            the time being ultimately responsible may do so by
 shall invite, at the earliest time he considers              making a notification to that effect to the Secretary­
 practicable after that date, the Governments which           General of the United Nations, either at the time of
 have deposited instruments of ratification, accept­          the deposit of its instrument of ratification, accept­
 ance, approval or accession, or have notified him            ance, approval or accession, or at any later time. If
 that they will apply this Agreement provisionally, to        the territory which becomes a separate member is
 meet to decide whether to put this Agreement                 an exporting member and is not listed in Annex A
 provisionally or definitively into force among               or Annex C the Council shall, as appropriate,
 themselves in whole or in part. If no decision is            establish a basic quota for that territory, which
 reached at this meeting, the Secretary-General may           territory shall be deemed to be listed in Annex A.
 convene such further meetings as he considers
 appropriate.
 4. During any period in which this Agreement is in           3 . Any     contracting party which has         made     a
 force provisionally under paragraph 2 or 3, Govern­          declaration under paragraph 1 may at any time
 ments that have deposited instruments of ratification,       thereafter, by notification to the Secretary-General
 acceptance, approval or accession, as well as those          of the United Nations, declare that this Agreement
 Governments that have notified the Secretary­                shall cease to extend to the territory named in the
 General of the United Nations that they will apply           notification, and this Agreement shall cease to extend
 this Agreement provisionally, shall be provisional            to such territory from the date of such notification.
 members .
 5. While this Agreement is in force provisionally, the
 Governments participating shall make the necessary           4. When a territory to which this Agreement has
 arrangements to review the situation and decide               been extended under paragraph 1 subsequently
 whether this Agreement shall definitively enter into          attains independence, the Government of that
 force among themselves, continue provisionally in             territory may, within 90 days after the attainment
 force, or terminate.                                          of independence, declare by notification to the
                                                               Secretary-General of the United Nations that it has
                                                               assumed the rights and obligations of a contracting
                        Article 70                             party to this Agreement. If such party is an exporting
                                                               member and is not listed in Annex A or Annex C the
                       Reservations                            Council shall, as appropriate, establish a basic quota
                                                               for that party, which party shall be deemed to be
                                                               listed in Annex A.
 Reservations may not be made with respect to any
 of the provisions of this Agreement.
                                                               5 . The Government of a new State which intends
                        Article 71                             to make a notification under paragraph 4 but which
                                                               has not yet been able to complete the procedure
                  Territorial application                      necessary to enable it to do so may notify the
                                                               Secretary-General of the United Nations that it will
                                                               apply this Agreement provisionally. Such a Govern­
 1. A Government may at the time of signature or               ment shall be a provisional member until it makes its
 deposit of an instrument of ratification, acceptance,         notification under the preceding paragraph or until
 ---pagebreak---  20. 11 . 76                        Official Journal of the European Communities                          No L 321/55
the expiry of the 90-diay period referred to therein,                                 Article 75
whichever is earlier.
                                                                               Duration and termination
                       Article 72
                  Voluntary withdrawal                         1 . This Agreement shall remain in force until the
                                                               end of the third full quota year after its entry into
At any time after the entry into force of this                 force, unless extended under paragraph 2, 4 or 5 or
Agreement, any member may withdraw from this                   terminated earlier under paragraph 6.
Agreement by giving written notice of withdrawal
to the Secretary-General of the United Nations.
Withdrawal shall become effective 90 days after the            2. Before the end of the third quota year referred to
notice is received by the Secretary-General of the             in paragraph 1 , the Council may by special vote
United Nations .                                               decide that this Agreement be renegotiated or be
                                                               extended for two further quota years.
                       Article 73
                       Exclusion                               3 . If, in accordance with paragraph 2, this
                                                               Agreement has been extended for two further quota
                                                               years, the Council, before the end of the fifth quota
If the Council finds, under Article 63 (3 ), that any          year, may by special vote, decide that this Agreement
member is in breach of its obligations under this              be renegotiated.
Agreement and decides further that such breach
significantly impairs the operation of this Agreement,
it may by special vote exclude such member from
the Organization. The Council shall immediately                4. If, before the end of the third quota year referred
notify the Secretary-General of the United Nations             to in paragraph 1 , negotiations for a new Agreement
of any such exclusion. Ninety days after the date              to replace this Agreement have not yet been
of the Council's decision, that member shall cease             concluded, the Council may, by special vote, extend
to be a member of the Organization and, if such                this Agreement for a further period not exceeding
member is a contracting party, a party to this                 two quota years . The Council shall notify the
Agreement.                                                     Secretary-General of the United Nations of any such
                                                               extension .
                       Article 74
                                                               5. If, before the end of the third quota year referred
Settlement of accounts with withdrawing or excluded            to in paragraph 1 , a new Agreement to replace this
                        members                                Agreement has been negotiated, and has been signed
                                                               by sufficient governments to bring it into force after
 1 . The Council shall determine any settlement of             ratification, acceptance or approval, but the new
accounts with a withdrawing or excluded member.                Agreement has not provisionally or definitively
The Organization shall retain any amounts already              entered into force, this Agreement shall be extended
paid by a withdrawing or excluded member, and                  until the provisional or definitive entry into force of
such member shall remain bound to pay any amounts              the new Agreement, provided that this extension
due from it to the Organization at the time the                shall not exceed two quota years. The Council shall
withdrawal or the exclusion becomes effective ;                notify the Secretary-General of the United Nations
provided, however, that in the case of a contracting           of any such extension.
party which is unable to accept an amendment and
consequently ceases to participate in this Agreement
under the provisions of Article 76 (2), the Council            6. The Council may at any time, by special vote,
may determine any settlement of accounts which it              decide to terminate this Agreement. Such termination
 finds equitable.                                              shall take effect on such date as the Council shall
                                                               decide, provided that the obligations of members
2 . A member which has withdrawn or been excluded              under Article 39 shall continue until the financial
from, or has otherwise ceased to participate in, this          liabilities relating to the buffer stock have been
Agreement shall not be entitled to any share of the            discharged or until the end of the third quota year
proceeds of liquidation or the other assets of the             after the entry into force of this Agreement,
Organization ; nor shall it be burdened with any               whichever is the earlier. The Council shall notify
part of the deficit, if any, of the Organization upon          the Secretary-General of the United Nations of any
termination of this Agreement.                                 such decision .
 ---pagebreak--- No L 321 /56                         Official Journal of the European Communities                             20. 11 . 76
7. Notwithstanding termination of this Agreement,               amendment before it has notified its acceptance
the Council shall remain in being for as long as                thereof.
necessary to carry out the liquidation of the
Organization, settlement of its accounts, and disposal
of its assets, and shall have during that period such                                   Article 77
powers and functions as may 'be necessary for these
purposes.                                                              Supplementary and transitional provisions
                                                                 1 . This    Agreement   shall    be considered   as    a
                        Article 76
                                                                continuation of the International Cocoa Agreement
                                                                1972.
                      Amendments
                                                                2. In      order    to  facilitate   the  uninterrupted
                                                                continuation of the International Cocoa Agreement
                                                                 1972 :
 1 . The Council may by special vote recommend an
amendment of this Agreement to the contracting                   (a) all acts by or on behalf of the Organization or
parties. The Council may fix a time after which                      any of its organs under the International Cocoa
each contracting party shall notify the Secretary­                   Agreement 1972 which are in effect on 30
General of the United Nations of its acceptance of                   September 1976 and the terms of which do not
the    amendment.     The   amendment      shall   become            provide for expiry on that date shall remain in
effective 100 days after the Secretary-General of the                effect unless changed under the provisions of this
United     Nations    has    received   notifications   of           Agreement.
acceptance from contracting parties representing at
least 75% of the exporting members holding at least              (b) All decisions required to be taken by the Council
 85% of the votes of the exporting members, and                      of the International Cocoa Agreement 1972
from contracting parties representing at least 75%                   during the 1975/76 quota year for application
 of the importing members holding at least 85% of                    in the 1976/77 quota year shall be taken during
the votes of the importing members, or on such                       the last regular session of that Council in the
 later date as the Council by special vote may have                  1975/76 quota year and applied on a provisional
 determined. The Council may fix a time within which                 basis as if this Agreement had already entered
 each Contracting Party shall notify the Secretary­                  into force, provided that if any member requests
 General of the United Nations of its acceptance of                  review of any such decision, that decision must
 the amendment, and, if the amendment has not                        be confirmed by the Council, by special or simple
 become effective by such time, it shall be considered               distributed majority vote in accordance with this
 withdrawn. The Council shall provide the Secretary­                 Agreement, within 90 days after the entry into
 General with the information necessary to determine                 force of this Agreement.
 whether the notifications of acceptance received are
 sufficient to make the amendment effective .
                                                                                        Article 78
 2. Any member on behalf of which notification of                           Authentic texts of this Agreement
 acceptance of an amendment hais not been made by
 the date on which such amendment becomes effective
 shall as of that date cease to participate in this              The texts of this Agreement in the English, French,
 Agreement, unless any such memlber satisfies the                Russian and Spanish languages shall be equally
 Council at its first meeting following the effective            authentic. The originals shall be deposited in the
 date of the amendment that acceptance could not be              archives of the United Nations .
 secured in time owing to difficulties in completing
 its constitutional procedures, and the Council decides          In witness whereof the undersigned, having been duly
 to extend for such member the period fixed for                  authorized to this effect by their respective
 acceptance until these difficulties have been over­             Governments, have signed this Agreement on the
 come. Such member shall not be bound by the                     dates appearing opposite their signatures.
 ---pagebreak--- 20. 11 . 76                              Official Journal of the European Communities                           No L 321/57
                                                                   ANNEX A
                                     Countries subject to basic quotas under Article 30 (1 )
                                                     Brazil
                                                     Dominican Republic
                                                     Equatorial Guinea
                                                     Ghana
                                                     Ivory Coast
                                                     Mexico
                                                     Nigeria
                                                     Togo
                                                     United Republic of Cameroon
                                                                  ANNEX B
                           Countries producing less than 10 000 tonnes of bulk cocoa annually
                                                                              Production in thousands of tonnes
                                         Country­
                                                                              1972/73                   1973/74
            Malaysia                                                            7-0                       10-0
            Sierra Leone                                                        6-6                        7-7
            Zaire                                                               5-0                        5-0
            Gabon                                                               5-0                        50
            Philippines                                                         3-5                        4-0
            Haiti                                                               3-5                        3-5
            Liberia                                                             3-0                        31
            Congo                                                               2-1                        2-1
            Cuba                                                                2-0                        2-0
            Peru                                                                2-0                        2-0
            Bolivia                                                             1-4                        1-4
            New Hebrides                                                        0-8                        0-7
            Angola                                                              0-6                        0-7
            Guatemala                                                           0-6                        0-7
            Nicaragua                                                           0-6                        0-6
            United Republic of Tanzania                                         0-6                        0-6
            Uganda                                                              0-5                        0-5
            Honduras                                                            0-3                        0-3
                                                                               45-1                      49-9
            Source : Quarterly Bulletin of Cocoa Statistics ( Vol . I, No 4).
 ---pagebreak--- No L 321/58                            Official Journal of the European Communities                              20. 11 . 76
                                                                 ANNEX C
                                                 Fine or flavour cocoa producers
            1 . Exporting countries producing exclusively fine or flavour cocoa
                Dominica
                Ecuador
                Grenada
                Indonesia
                Jamaica
                Madagascar
                Panama
                Sri Lanka
                St. Lucia
                St. Vincent
                Surinam
                Trinidad and Tobago
                Venezuela
                Western Samoa
           2. Exporting countries producing fine or flavour cocoa, but not exclusively
                                                                            Production in thousands of tonnes
                                                                             1972/73                 1973/74  5'
            Costa Rica (25% )                                                   5-0                      6-0
           São Tome and Principe (50% )                                        11-3                     10-4
           Papua New Guinea (75% )                                             23-1                    30-0
                                                                              39-4                     46-4
           Source : Quarterly Bulletin of Cocoa Statistics (Vol. I, No 4).
 ---pagebreak--- 20. 11 . 76                                  Official Journal of the European Communities                                       No L 321/59
                                                                 ANNEX D
                                      Imports of cocoa calculated for the purposes of Article 10 (M
                                                                    1972              1973             1974         Average
                             Country                                                                                               Percentage
                                                                                    (in thousands of tonnes)
United States of America                                            399-8             357-3            315-7         357-6            22-89
Federal Republic of Germany                                         179-5             188-4            186-6          184-8           11-83
United Kingdom of Great Britain and
   Northern Ireland                                                 161-5             145-4            158-0          155-0            9-92
Kingdom of the Netherlands                                          151-9             144-9            144-7          147-2            9-42
Union of Soviet Socialist Republics                                 143-7             130-1            162-8          145-5            9-31
France                                                               77-6              78-4              81-9          79-3            5-08
Japan                                                                55-4               59-7             38-3          51-1            3-27
Italy                                                                44-3               47-0             45-0          45-4            2-91
Belgium / Luxembourg                                                  36-8              36-4             37-3          36-8            2-36
Spain                                                                 38-7              35-8             34-9          36-5            2-34
Canada                                                                39-1              34-9            30-0           34-7            2-22
Poland                                                                32-1              30-6             31-9          31-5            2-02
Switzerland                                                           28-8              31-7             27-7          29-4             1-88
Australia                                                             24-7              19-8             28-0          24-2             1-55
German Democratic Republic                                            24-4              21-1             22-2          22-6             1-45
Czechoslovakia                                                        20-8              19-3             21-2          20-4             1-31
Austria                                                               17-1              16-7             15-0          16-3            1-04
Ireland                                                               14-3              16-3             16-0          15-5            0-99
Yugoslavia                                                            14-5              12-1             19-1          15-2             0-97
Hungary                                                               14-2              12-1             14-6          13-6             0-87
Sweden                                                                13-8              11-5             11-9          12-4            0-79
Argentina                                                             11-2              11-1             13-3          11-9            0-76
Bulgaria                                                              11-8               8-4              8-5           9-6             0-61
South Africa                                                           9-7               8-2              8-5            8-8            0-56
Romania                                                                7-8               7-5              8-4            7-9            0-51
Norway                                                                 9-4               7-6              6-8           7-9             0-51
Denmark                                                                8-7               7-3              6-1            7-4 ·          0-47
Colombia                                                               7-7               6-0              6-2            6-6            0-42
New Zealand                                                            6-2               4-8              7-4            6-1            0-39
Finland                                                                6-0               5-8              6-5            6-1            0-39
Portugal                                                               3-7               3-7              2-9            3-4            0-22
Philippines                                                            4-9               2-8              2-6            3-4            0-22
Chile                                                                  2-9               2-7              2-3            2-6            0-17
Peru                                                                   3-6               2-4               1-3           2-4            0-15
Algeria                                                                 1-1               1-1              1-1           1-1            0-07
India                                                                  0-7               0-7              0-8            0-7            0-05
Tunisia                                                                0-8               0-4              0-7            0-6            0-04
Uruguay                                                                0-6               0-5              0-5            0-5            0-03
 Honduras                                                '              0-1               0-1             0-1            0-1            0-01
                                          TOTAL                   1 629-9           1 530-6          1 526-8        1 562-1          100-00
Source: Quarterly Bulletin of Cocoa Statistics (Vol. I, No 4).
O Three-year average 1972 to 1974, of net imports of cocoa beans plus gross imports of cocoa products, converted to beans equivalent by using the
    conversion factors in Article 32 (2).
 ---pagebreak--- No L 321/60                              Official Journal of the European Communities                                                20. 11 . 76
                                                                   ANNEX E
                                         Exporting countries to which Article 36 (2) applies
                                                        Brazil
                                                        Dominican Republic
                                                        Mexico
                                                                   ANNEX F
                              Basic quotas calculated for the purposes of Article 69 (1) and (2) (*)
                                                                            Production
                     Exporting countries                             (in thousands of tonnes)            Basic quotas (percentages)
            Ghana                                                               409-8                               32-5
            Nigeria                                                             247-7                               19-6
            Ivory Coast                                                         196-3                               15-5
            Brazil                                                              189-7                               15-0
            United Republic of Cameroon                                         112-0                                8-9
            Dominican Republic                                                   37-1                                2-9
            Mexico                                                               27-3                                2-2
            Togo                                                                 23-1                                 1-8
            Equatorial Guinea                                                    19-6                                 1-6
                                                                             1 262-6                               100-0
            Source: Quarterly Bulletin of Cocoa Statistics, Vol. I, No 4 (with the exception of the figure for 1973/74 for Dominican
                 Republic which was provided by the delegation of that country to the United Nations Cocoa Conference 1975).
            (l ) Calculated on the basis of the average of production in the years 1969/70 to 1973/ 74 .