CELEX: 51982PC0073
Language: da
Date: 1982-03-04 00:00:00
Title: Henstilling til RÅDETS AFGØRELSE om retningslinjer for forhandlingerne med visse tredjelande om rammeaftaler om flerårig levering af landbrugsprodukter (forelagt Rådet af Kommissionen)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (82) 73
Vol. 1982/0028
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak--- KOMMISSIONEN FOR DE EUROPÆISKE FÆLLESSKABER
                                                     KOM(82)73 endelig udg.
                                                     Bruxelles - den k . marts 1982
                    wT7
                    Anilti .
         V;.-' • -r :i        j\
                                       / Henstilling til
                                       RÅDETS AFGØRELSE
                        r'   \
      om retningslinjer for forhandlingerne med visse tredjelande om
      rammeaftaler om flerårig levering af landbrugsprodukter
                               ( forelagt Rådet af Kommissionen )
      K0M(82 ) 73 endelig udg .
 ---pagebreak--- 1. I Kommissionens meddelelse til Rådet den 22 . juli 19ol om forhandling
   af rammeaftaler om flerårig levering af landbrugsprodukter blev det
   oplyst , at Kommissionen , når Rådets forskellige instanser havde drøftet
   spørgsmålet , ville fremsætte forslag til direktiver om indledning af
   forhandlinger med visse ansøgende tredjelande med udgangspunkt i disse
   drøftelser og de optrukne retningslinjer .
2. Vedlagte udkast til afgørelse , som Kommissionen forelægger Rådet ,
   tager sigte på at bemyndige Kommissionen til med bistand fra Artikel
   113-udvalget at indlede forhandlinger med Algeriet , Egypten , Marokko og
   Tunesien med henblik på indgåelse af rammeaftaler om flerårig levering
   af landbrugsprodukter .
3. Pbr at lette drøftelserne har Kommissionen fundet det hensigtsmæssigt
   at vedlægge dette udkast referatet af de undersøgelsesmissioner , der
   har været udsendt til de ovennævnte lande .
 ---pagebreak---                                                                      BILAG I
                                 Hensti Lling ti L
                                 RÅBETS AFGØRELSE
om retningslinjer for forhandlingerne med visse tredjelande om rammeaftaler
om flerårig levering af landbrugsprodukter
RÅDET FOR DE EUROPÆISKE FÆLLESSKABER HAR -
under henvisning til traktaten om oprettelse af Det europæiske økonomiske
Fællesskab ,
under henvisning til henstilling fra Kommissionen , og
ud fra følgende "betragtninger :
En række tredjelande har givet udtryk for deres interesse i at leverancerne
af landbrugsprodukter fra Fællesskabets medlemsstater kan forudsiges ;
aftaler om flerårig levering af landbrugsprodukter kan fremme en harmonisk
udvikling i udførslen af landbrugsprodukter fra Det europæiske økonomiske
Fællesskab;
Kommissionen bør derfor bemyndiges til at indlede forhandlinger med henblik
på indgåelse af sådanne aftaler med de berørte lande på grundlag af de ret­
ningslinjer , der er angivet i en standardrammeaftale -
TRUFFET FØLGENDE AFGØRELSE :
                                      Artikel 1
Kommissionen bemyndiges til at føre forhandlinger med henblik på undertegnelse
af rammeaftaler om flerårig levering af landbrugsprodukter med de kompetente
myndigheder i Algeriet , Egypten , Marokko ag Tunesien .
                                      Artikel 2
Kommissionen fører disse forhandlinger i samråd med Artikel 113-udvalget på
grundlag af de retningslinjer , der er angivet i standardrammeaftalen i bilaget .
                                                     På Rådets vegne
                                                         Formand
 ---pagebreak---                                                                         BILAG
S TANDARDRAMMEAFTALE OM FLERÅRIG LEVERING AF LANDBRUGSPRODUKTER
RÅDET FOR DE EUROPÆISKE FÆLLESSKABER på den ene side ,
REGERINGEN FOR      [           navnet på det pågældende land/ på den anden side ,
som ønsker at yde deres bidrag til udviklingen af handelsforbindelserne og
et snævrere samarbejde mellem [ ... navnet på det pågældende land . . ._/ og
Det europæiske økonomiske Fællesskab ,
som ønsker at bidrage til en øget sikkerhed på fødevareområdet i
[ . . . navnet på det pågældende land . . . _/,
har besluttet at indgå en rammeaftale om levering af landbrugsprodukter og
har med henblik herpå som befuldmægtigede udpeget : /"••• navnene på de
pågældende personer ..._/, og
er blevet enige om følgende bestemmelser :
                                  AFSNIT I
                         ALMINDELIGE BESTEMMELSER
                                  Artikel 1
Pbrmålet med denne rammeaftale , herefter benævnt " aftalen", er at sikre
[ . . . navnet på det pågældende land . . . J forsyninger med landbrugsprodukter
og Det europæiske økonomiske Fællesskab afsætningsmuligheder for de samme
produkter på ordnede , forudsigelige og gensidigt tilfredsstillende vilkår .
                                  Artikel 2
De myndigheder , der er bemyndiget til at indgå de for aftalens forvaltning
fornødne forpligtelser er :
- for Det europæiske økonomiske Fællesskab , Kommissionen for De europæiske
   Fællesskaber
                                                                           ./•
 ---pagebreak--- - for /... navnet på det pågældende land . . ./ /" betegnelse for det pågældende
   organ 7 .
                                      Artikel 3
Denne aftale omfatter £ ... angivelse af produkter ... 7 .
                                      Artikel 4
1.    Denne aftale indebærer på de i følgende artikler fastsatte vilkår for­
      pligtelse
      - for Det europæiske økonomiske Fællesskab til at levere visse mængder
           . . angivelse af produkter . . .J til /. . . navnet på det pågældende
        land . . .y
      - for £ . . . navnet på det pågældende land . . .J til at indføre de samme
        produktmængder fra Det europæiske økonomiske Fællesskab .
2.    I denne aftale
      - indebærer udtrykket " forpligtelse til at levere ", at Kommissionen for
        De europæiske økonomiske Fællesskaber forpligter sig til at træffe
        alle fornødne bestemmelser , som er forenelige med fællesskabsbestemmel­
        serne , for at sikre , at f. . . angivelse af produkter ...] kan stilles til
        rådighed på de i denne aftale fastsatte vilkår ;
      - indebærer udtrykket " forpligtelse til at indføre", at /"... navnet på det
        pågældende land ...J forpligter sig til at træffe alle fornødne bestem­
        melser for at sikre     indførsel af /" . . . angivelse af produkter . . .J fra
        Det europæiske økonomiske Fællesskab på de i denne aftale fastsatte
        vilkår .
                                       Artikel 5
De transaktioner , der skal gennemføres på de vilkår , som følger af den af Det
europæiske økonomiske Fællesskab indgåede forpligtelse , jf . denne aftales
artikel 4 » gennemføres af private erhvervsdrivende .
 ---pagebreak---                                      Artikel 6
1.     Når /• • • navnet på det pågældende land . . iværksætter procedurerne for
       indførsel af [ . . . angivelse af produkter . . .J med oprindelse i Fælles­
       skabet , træffer det alle egnede foranstaltninger for at sikre , at de
       erhvervsdrivende i Det europæiske økonomiske Fællesskab ikke forskel-
       behandles .
2.     Det forpligter sig til at sørge for , at tildeling af søtransport . ikke er
       til skade for en fri og rimelig konkurrence ( l ).
                                     Artikel 7
Kommissionen for De europæiske Fællesskaber og /... navnet på det pågældende
land ...J forpligter sig til at underrette hinanden om de bestemmelser og
foranstaltninger , som vedtages med henblik på iværksættelsen og gennemførel­
sen af de i henhold til denne aftale indgåede forpligtelser .
                                     Artikel 8
1.     Der nedsættes en blandet komite , som skal overvåge , at denne aftale
       gennemføres korrekt .
2.     Den blandede Komité består af repræsentanter for Kommissionen for De
       europæiske Fællesskaber og repræsentanter for /T . . navnet på det på­
       gældende land . . .J.
3«     Den blandede Komité holder møde én gang hver fjerde måned på en dato
       og et sted efter fælles aftale . Det holder desuden møde hver gang ,
       der er behov for det , og efter anmodning fra en af de kontraherende
       parter i denne aftale .
( l ) Denne klausul er identisk med den , der findes i de med visse lande
      indgåede langtidsaftaler og i konventionen om fødevarehjælp .
 ---pagebreak---                                       - 6 -
                                    AFSNIT II
                             SÆRLIGE BESTEMMELSER
                                    Artikel 9
1.     De mængder £... angivelse af produkter . . .J , som f\ . . navnet på   det
       pågældende land •••/ forpligter sig til at indføre , og som Det
       europæiske økonomiske Fællesskab forpligter sig til at levere i        labet
       af hvert landbrugsproduktionsår på de i denne aftales artikel 4        fast-
       satte vilkår , udgør følgende mængder :
       - blød hvede ( eller tilsvarende mængde hvedemel ):
         mindst                       tons
         og højst                     tons
       - gryn af hård hvede :
         mindst                       tons
         og højst                     tons
       - byg :
         mindst                       tons
         og højst                     tons
       - osv .
 2.    Det i denne aftale omhandlede landbrugsproduktionsår begynder for
            angivelse af produktet ...J den                        og slutter
       den                          det følgende år , for [. . . angivelse af det
       andet produkt . . .7 fra den                   til den
                                    Artikel 10
Det af denne aftale omhandlede /••• angivelse af produktet ...J skal være i
overensstemmelse med de kvaliteter og specificationer , der sædvanligvis an­
vendes i transaktioner mellem Det europæiske økonomiske Fællesskab og
/I . . navnet på det pågældende land ... 1,
                                    Artikel 11
Cirka to måneder før hvert produktionsårs begyndelse holder Den blandede Komite
møde for at træffe afgørelse om de nøjagtige mængder , der skal leveres og ind­
føres i løbet af det pågældende landbrugsproduktionsår i henhold til denne
aftale , og om hvor ofte der skal foretages opkøb i det pågældende produktionsår .
                                                                                    •A
 ---pagebreak---                                     Artikel 12
Såfremt der som følge af usædvanlige omstændigheder er store mængder til
rådighed i /••• navnet på det pågældende land       eller utilstrækkelige
mængder i Fællesskabet , holder Den blandede Komité møde for at træffe
afgørelse om ændring af de mængder , der er fastsat i artikel 9 » stk . 1 .
                                    Artikel 13
1.   /••• navnet på det pågældende land ...J og De europæiske økonomiske
     Fællesskaber træffer hver for sit vedkommende alle egnede foranstalt­
     ninger for at sikre , at transaktionerne gennemføres til priser , som
     står i forhold til de på verdensmarkedet anvendte priser eller
     noteringer .
2.   De to parter i denne aftale undersøger mulighederne for , at Fællesskab-
     bets medlemsstater eller deres befuldmægtigede kan fastsætte kredit-
     vilkårene for de kontrakter , som indgås i medfør af denne aftale .
                                     AFSNIT III
                             AFSLUTTENDE BESTEMMELSER
                                     Artikel 14
Denne aftale er gyldig i en periode på tre produktionsår . Denne gyldigheds-
periode kan stiltiende forlænges med en ny periode på tre år .
                                     Artikel 15
Denne aftale træder i kraft den første dag i det landbrugsproduktionsår ,
som følger efter det , hvor ^Office             J og Kommissionen for De
europæiske Fællesskaber har underrettet hinanden om gennemførelsen af de
med henblik herpå fornødne procedurer .
 ---pagebreak---                                 Artikel 16
Denne aftale er affattet i to eksemplarer på et af Fællesskabets officielle
sprog og på /det pågældende tredjelands officielle sprog7, og de to tekster
har samme gyldighed .
                                 Hr .                         på Kommissionen for
                                            De europæiske Fællesskabers vegne
                                  Hr.                   for
                                  Udfærdiget i                . den
 ---pagebreak---       - 9-
REFERAT AF UMERSØOSLSESMISSIONERNE TIL
ALGERIET , EGYPTEN . MAROKKO OG TUNES IEU
 ---pagebreak---                            _ 40~
                                   REPORT
        CONCERNING      EXPLORATORY     TALKS    WITH    THE   ALGERIAN
AND     EGYPTIAN      AUTHORITIES     REGARDING     A   FRAMEWORK    AGREEMENT
   FOR    THE    MULT I ANNUAL     SUPPLY   OF   AGRICULTURAL     PRODUCTS
I. MISSION TO ALGIERS
   1 . Two rounds of talks were held in Algiers from 4 to 6 May , one
       with , and under the auspices of , the Ministry of Trade , and the
       other with the Ministry of Agriculture and the Agrarian Revolu­
       tion ( MARA ). The heads ( and deputy heads ) of the state corpora­
       tions or public boards .
 ---pagebreak---               acting on behalf of one or other of these two Ministries ( 1 ) in directing
              supplies were present at each set of talks .     Also , with the agreement of
              the Presidency , a briefing session with the Member States * representati­
             ves was organized by the Commission Delegation in Algiers , since the
             Algerian authorities had sent formal and detailed requests direct to
             certain embassies - at the end of February, concerning the conclusion of
              long-term agreements .
         2 . On a general level 'the great importance attached by the Algerian autho­
             rities to the rapid conclusion of a framework agreement between the
             Community and Algeria for the multiannual supply of agricultural products
             should be stressed .      The fact that they have placed such strong emphasis
             on this ties in with political and also economic motives which were very
             clearly stated in each round of discussions .
             •                        The Algerians consider the Commission as a special
                 discussion partner , since the talks are made easier from their point
                 of view by the absence, when dealing with the European Economic Com­
                munity as such , of other considerations or extrapolated political and
                psychological conflicts which stop any further progress at a certain
                 stage in government - to-government relations .  Algeria considers it
                necessary to strengthen the Association Agreement with the EEC by
                means of a new approach to food security ( markets and supplies ).
             - §£2D °[Di£_!I!2iiyes : Algeria has requirements which become greater every
                year , particularly as a result of population growth ( 550 000 more
                mouths to feed every year ), the rise in the standard of living , and
                the very slow growth rate of agricultural production ; the Community
                is near Algeria , which reduces the costs of transporting supplies
                accordingly , and only the Community can provide the very varied range
                <pf products which this country with a population of almost 20 million
                requires ;                     .
( 1 ) 25§^I£ATION_OF_IMPORTS_INTO_ALGERIA : The Government has given the monopoly
      for procurement from abroad to national corporations or boards , some of which
      come under the Ministry of Trade while others come under the Ministry of
      Agriculture ( MARA ). Those coming under Trade are the 0NAC0 ( Office National
      de Commercialisation ), responsible mainly for milk products for direct consump
      tion , and the SNNGA ( Societe Nationale des Nouvelles Galeries Algeriennes ),
      responsible for all supplies for the large stores . Those coming under Agri­
      culture are the OAIC ( Office Algerien interprofessionnel des Cereales ) which
      is responsible for wheat and barley , the SN SEMPAC ( Societe Nationale des
      Semouleries , Meuneries , Fabriques de pates alimentaires et Couscoys ) respon­
      sible for purchasing meal , flour and pasta , the ONAB ( Office National des
      Aliments du Betail ) and ONALAIT ( Office National du Lait et Produits Laitiers )
      responsible for domestic production and the reconstitution of milk .
 ---pagebreak---  Algeria is also anxious to embark upon a programme for the development of
agricultural production ( poultry-raising and dairy farming , one of these
to be financed by the EEC under the 1976 Financial Protocol ) and only the
Community can provide effective help and support in . all sectors .
With regard to the general scope and form of a long-term agreement , the
Commission representatives noted that the approach suggested in the draft
Communication to the Council ( C0MC8D75 ) corresponded "almost perfectly "
to that envisaged by the Algerian authorities .
 (i )   The type of agreement being considered by Algeria would be a frame­
        work agreement ( or a framework convention ) providing general criteria
         for the negotiation and conclusion of commercial contracts between
        Community operators and the corporations , boards or organizations
        which hold the purchasing monopoly in Algeria ;
( ii )  The framework agreement or framework convention would be concluded
        between a Community authority and an Algerian ministerial authority .
        Two additional remarks should be made on this subject : the Algerians
        are aware of the fact that where the export of a Community agricultu­
        ral product entails the granting of a refund , a framework agreement
        for multiannual supplies involves an undertaking on the part of the
        Community as such , as they have learnt from experience that a Commu­
        nity operator or even a Member State always waits for a Commission
        refund decision before acting .    They have also left open the matter
        of whether one or two framework agreements would have to be concluded,
        in view . of the fact that , even though the Ministry of Trade 's Direc-
        torate-General for Coordination and Supervision has a horizontal role
        and is responsible for all external supplies , certains boards or state
        corporations come Under the Ministry of Agriculture .
( iii ) The provisions to be included in the framework agreement should , in
        the opinion of our Algerian partners , be flexible and straightforward,
        so that they can , if necessary, be adapted as circumstances require
        and also so that trade can be conducted freely, but the commitments
        made by the two sides should not be merely nominal or insufficiently
        binding .
 ---pagebreak--- . On the matter of the actual content of the framework agreement , there is
   again a striking similarity of approach between what was proposed to the
   Commission on 19 February and the Algerians' stance now .
   The framework agreement would cover the following : the period of applica­
   tion (a three-year period has been mentioned , but a request has also been
   made for linkage with the present five-year plan ); the range of products
   covered ; the quantities concerned (a very marked preference has been stated
   for a quantity bracket , the actual supply and purchase figures for a given
   year being fixed by common accord before the beginning of that year in the
   light of the respective situations of the contracting parties ); the wording
   of the undertakings given by the two sides , including the description of
   the administrative measures adopted to ensure the agreement is implemented
   through normal trading channels ; the terms of reference - with particular
   regard to prices - for the commercial delivery or purchase contracts between
   Community operators and the Algerian state corporations ; lastly the adminis­
   trative machinery ( for the annual negotiation of quantities, operation of
  the arrangements , etc .).
  The Algerian authorities also put forward certain points which it should ,
   in their opinion, be possible to include in the framework agreement .    Assu­
   rances should thus be given , with proper backing , that products whose avai­
   lability is guaranteed under the framework agreement really are of Community
  origin and that no single operator or Member State can artificially esta­
  blish a de facto monopoly ("there is no single automatic channel "), as this
  would prevent Algeria from stabilizing its purchase flows on the basis of
  other external or domestic requirements ( equilibrium in its trade balance
  with a particular country, etc .).    The Algerian authorities also consider
  that if such a framework agreement were concluded , a joint effort to improve
  the quality of the products sold by the EEC should be undertaken - hence the
  need to include qualitative terms of reference corresponding , for example ,
  to the standards of the Algerian Ministry of Health - and that the syste­
  matic use of letters of credit by Community operators ( sign of mistrust )
  should be abandoned in paying for supplies under the Agreement .
  A very detailed discussion was held on the matter of prices .     Various points
  should be singled out .    Firstly, Algeria considers that , in the light of
  the two sides, and above all in view of the fact that ," for example , the
 ---pagebreak---                           -
    EEC plays only an indirect role in price formation through the refund
    mechanism , fixed purchasing or selling prices or even a price bracket
    cannot be established in the framework agreement . It notes , however ,
    that the level of the refund and its degree of continuity during a mai–
    keting year are determining factors for the conclusion of contracts by
    operators .  The Algerian authorities have voiced a number of criticisms
    in this respect concerning the present system of administering refunds ,
    pointing to its somewhat arbitrary nature , which prevents the Algerian
    authorities from being able to rely on the Community at all times ; in
    their opinion , a "preferential difference " should be established between
    the rules governing the refund applicable to supplies under the Agreement
    and the rules relating to supplies not covered by the agreement .     In other
    words , it does not seem to be a matter of fixing a preferential refund
     level but of laying down special rules for the fixing of the refund
    ( advance fixing - duration of the advance fixing arrangement , terms of
    reference of the world price used to calculate the refund ) for only those
    quantities covered by the framework agreement .
    The Algerian authorities have raised the matter of the financing facilities
    granted to Algeria in one form or another by other trading partners : export
    credit granted by Sweden under the long-term wheat agreement , virtually
    free installation - 1 '/. interest over 50 years - of intake silos under the
    long-term durum wheat and barley agreement with Canada , deferred payment
    under the red meat supply agreements concluded with Argentina and Australia ,
    etc .   They have expressed the wish that the EEC ,   which , as explained ,
    does not yet have an export credit mechanism , should follow up any opera­
    tions undertaken by the Member States and or finance the installation in
    Algeria of intake capacity for some of the products supplied ( refrigeration
    facilities, silos , warehouses , port infrastructure , etc .).
6 . As regards products and quantities, the Algerians have supplied a list of
    what they estimate to be their import requirements ( see Annex I ), speci­
    fying that this did not mean that all these products and quantities should
    come solely from the Community and that even the quantities which could
    come from the Community should be covered by the framework agreement on
    multiannual supplies; this last remark ties in with the ideas expressed
    in COM (81 ) 75 ( see paragraph 5 . ( ii ).
 ---pagebreak---                             – yj-
     They stressed that , when negotiations were initiated , their authorities
     would make precise proposals concerning the range of products and the
     quantities to be covered by the framework agreement .
     They also drew attention to the fact that there were , strictly speaking ,
     three categories of products which could come under a framework agreement :
     - agricultural commodities : wheat , sugar , milk products for reconstitution ;
     - agricultural products for direct consumption : red meat , butter , flour ,
       meal , rice , pasta , eggs for direct consumption ;
     - products intended for the programme for the development of agricultural
       production : eggs for hatching , day-old chicks , dairy cows , compound
       feedingstuffs .
     In the case of the last category, the Ministry of Trade and the Ministry of
    Agriculture stressed this request and the particular urgency of making a
     start on meeting it , even if only on a very small scale ( poultry farming ),
    since this would provide an additional source of products for one of the
    projects financed under the EEC-Algeria Financial Protocol and would be of
    great importance to the implementation of that project .
7 . Cone lusions : Algeria is obviously anxious to conclude with the Community a
    framework agreement for the multiannual supply of agricultural products ,
    and to do so very shortly .     The Algerian authorities expressed in this res­
    pect their heartfelt      wish that the Commission ( and the Council ) should
    pass very quickly from this exploratory stage to actual negotiations , and
    they hoped that 1982 could be the first year of application of a framework
    agreement .   The Community can meet this request without causing an increase
    in Community agricultural production ( the products and quantities requested
    are less than present supplies ), or excessive expenditure on refunds , or
    adverse effects on other countries' trade ( supplementary or sole source of
    supply ).
    It is obvious , however , that the real significance of such a framework
    agreement for the supply of agricultural products goes far beyond the trade
    sphere , for it would not only provide supplies for direct consumption but
    also ensure regular supplies of raw materials for the food processing in­
    dustry and of agricultural inputs for a developing farm sector .       The im­
    pression obtained was that Algeria thus attributes deep political signifi­
    cance to it , that it could have economic repercussions on sectors other
    than agriculture , and that such a mutual commitment would pave the way for
    a new type of relations between Algeria and the EEC and its Member States
    in the context of the new international economic order .
 ---pagebreak---                                                             ANNEX I
      ESTIMATED REQUIREMENTS FOR ANNUAL IMPORTS OF AGRICULTURAL PRODUCTS
                                INTO ALGERIA
MILK PRODUCTS
Milk for infant feeding       .         15 QOO - 20 000 t
Flour for infant feeding                 2 000 -    3 000 t
Evaporated and instant milk            100 000 - 120 000 t
Butter ( not more than
            3 months old )              25 000 -   30 000 t
Cheese for processing                    7 000 -   10 000 t
Cheese for direct consumption :
     Emmental .                          3 000 -    4 000 t
     Gouda - type                        4 000 -    7 000 t
Butteroil                                          10 000 t
CEREALS
Wheat - flour and meal                  to be specified by the MARA and 01 AC
Barley and malt
Rice
OTHER PRODUCTS
Seed potatoes                                      10 000 t
Red meat ( mutton , beef )              20 000 -   30 000 t
Eggs for direct consumption             1 000 000 000 units
Powdered eggs                              100 -      500 t
Animal fat                              40 000 t
Eggs for hatching                       100 000 000 - 150 000 000 units
Day-old chicks                          1 000 000 - 2 000 000 units
Dairy cows                              2 000 head
Cattle on the hoof                      2 000 - 3 000 head
Sugar                                   500 000 t
Point -of -^lay pullets                 100 000 - 200 000 units
Colza oil                               200 000 t
Colza seed                              70 000 - 90 000 t
 ---pagebreak--- II . MISSION TO CAIRO
     8 . The general objective which , in the view of the Egyptian authorities ,
          should guide any framework agreement concluded between the EEC and
          Egypt on the mutiannual supply of agricultural products is somewhat
          different from the situation in the case of   Algeria .  It should be
          based on the national food strategy which President Sadat has made the
          cornerstone of his internal policy and which aims to satisfy the food
          requirements of a population growing at the rate of almost 100 000 per
         month and whose standard of living is improving every year (whence the
          growing need for high protein products such as meat and milk products ).
         This " food strategy policy " aspect was emphasized forcefully at each of
         the meetings which the Commission representatives had with the ministers
         responsible for supply, financial affairs , economic affairs and agricul­
         ture during their visit to Cairo from 7 to 9 June .    Egypt bases this
         policy partly on the expansion of domestic agricultural production , which
          requires external financial and technical support ( bilateral , plurilateral
         or multilateral ), and partly on the conclusion of supply agreements with
         other countries .  The Commission representatives were accordingly tnfor-
         med of the fieed for an overall cooperation agreement , thus confirming
         the impressions formed by Mr Cheysson during his official visit to Egypt
         from 27 October to 2 November 1980 .
     9 . On the more specific question of a possible multiannual supply agreement ,
         whereas in Algeria the Community is able , it seems , to play the leading
         part , in Egypt it finds that other countries are already fulfilling that
         role .  In particular , the United States exports to Egypt in the region
         of t 750 million of agricultural products, thus accounting for over a
         third of its agricultural imports , in addition to which Australia and
         Argentina have concluded long-term agreements with Egypt ( on cereals and
         beef and veal respectively ).
                                                                                ./...
 ---pagebreak---      The Egyptian ministers stressed the need , however , to diversify their
     sources of supply and, in this context , described the role which they
     envisage for the Community which exports to Egypt a mere 2 375 million
     of agricultural products ( i.e. around' half the United States * exports ).
     The ministers considered that the Community possessed an immense advan­
     tage in being able to offer a wide range of the      food products which i
     Egypt requires .
10 . Another notable difference compared with Algeria , at least at this stage ,
     concerns the terms under which transactions are carried out ; credit sales
     seem to have reached unprecedented proportions in Egypt .
     According to information provided by the Minister for Economic Affairs ,
     Dr Nour El Dine ( confirmed by a USDA report ), approximately 70 '/. of US
     agricultural exports to Egypt were sold in 1980 through USG financing
     programmes PL 480 and the Commodity Import Program .     Egypt is , for the
     USA , the principal recipient of PL 480 and all cereals sold (a third of
     PL 480 to Egypt ) are covered by this aid ( i.e. 1.6 million t of wheat
     and flour and 100 000 t of maize ).    The terms of the agreement are those
     normally applicable ( down payment 5      the  balance payable in 31 annui­
     ties , ten years after the final delivery , interest rate 2 % rising to 3 % ) .
     The Commodity Import Program (2 129 million in     1986 ) covers the greater
     part of other US agricultural exports to Egypt : lard , maize , tobacco ,
     poultrymeat and lentils .
     Australia , which on 5 February announced the signing of a long-term agree­
     ment ( lasting five years , the 19 77 agreement having lasted three years )
     for an annual supply of one million t of wheat ( possibly 1.5 million t
     in the event of a good Australian harvest ), is granting Egypt credit fa­
     cilities (for three years with interest negotiable at commercial rates in
     a trade-off with the price formula ).    In addition to this contract there
     is a food aid scheme involving 20 000 to 25 000 t of cereals .
     France , at the end of April , granted Egypt a loan Available until 1 Au­
     gust 1982 ) to import French agricultural products up to a value of
     FF 1 500 million ( i.e. approximately 2 270 million ).    An earlier loan
     of the same type was worth FF 930 million but allowed Cairo to buy only
     wheat and flour ; the   new agreement of April 1981 permits the additional
     purchase of sugar, milk products , meat , live cattle , eggs and oils .
 ---pagebreak---             Undoubtedly , other countries are similarly involved though not to such
            an obvious extent .    Egypt has always attached major importance to the
            " special conditions of sale " aspect and a long-term agreement with that
            country cannot ignore it .
      11 . In relation to Algeria , the final difference concerns the arrangements -
            for marketing Egyptian imports .    According to information provided by
            Dr Fouad Hussein , Minister for Financial Affairs , a third of t^e gczzs
            entering the country are imported by private companies direct ( under
           monetary authorizations granted by the Central Bank ).        This free trade
            is increasing along with the increase in demand for goods ( not covered
           by special conditions of sale stipulated by exporting countries ) and
           their greater diversification ( linked to the improving standard of li­
           ving ).   There are in Egypt no rules requiring all imports to be covered
           by long-term agreements , i.e. essentially bilateral agreements between
           governments .    A fairly substantial share of Egypt 's EEC exports would
           not be covered , therefore , by a framework agreement and private imports
           would continue .
      12 . Mr Ahmed Nouh , the Minister for Supply , who had a long meeting with the
           Commission representatives and was accompanied by Mr Darwish , Deputy
           Minister and Chairman of the      General Authority for Supply Commodities
           ( GASC ), the central import agency , answered detailed questions and argu­
           ments by confirming that the Government was interested in entering into
           negotiations with a view to concluding between the EEC and Egypt an
           agreement on the multilateral supply of agricultural products .
           (i)     The general pattern of such a framework agreement could, according
                   to the Egyptians , be virtually identical to that envisaged in the
                   communication to the Commission of 19 February 1981      ( C0M(81 ) 75 ) ;
                   Algeria is thinking along the same lines , as indicated above .
           ( ii )  With regard to the range of products which could be covered, the
                   Minister for Supply mentioned :
                   - cereals : wheat , Western White type preferably required ( EEC stan­
                     dard wheat is not far    behind ( 1 ), wheat flour , maize ( not cur­
                     rently supplied by the EEC , which is a net importer ) ;
( 1 ) The current question of a 2 20 - 30 / t preference premium for this type of
       wheat compared with EEC wheat - for which there is no justification in purely
       commercial terms - has not been clarified .
 ---pagebreak---                       - Zo-
        ~ npi^products : butter, butteroil , milk powder , certain types
          6f cheese ( gouda , processed cheeses , blue ) ;
        - sugar : in the eyes of the population this product is the key
           to the Government 's success in the manangement of its food po­
           licy , though account should be taken of Egypt 's membership of
           the International Agreement and the provisions of that Agreement
                                                                             I
          concerning restrictions on purchases from non-members ( including
           the EEC , which nevertheless sold around 100 000 t on average in
          1979 and 1980 ) ;
        - vegetable oils : sunflower or cotton seed oi I ;
        - eggs ;
        - meat : red meat ( beef and sheepmeat ), bone-in or boneless , live
          animals for slaughter or stock-building , corned beef , poultry-
          meat and day-old chicks ;
        - fish : fillets and preserved fish ( mainly mackerel ).
( iii ) No quantity was mentioned .   The Minister for Supply refused to
        give any details on the grounds that the prices or terms of payment
        offered by the EEC would determine what Egypt would ask for during
        the negotiations .   He expressed interest in receiving official of­
        fers from the EEC regarding quantities in due course .
( iv )  The question of prices and price conditions was the subject of a
        long and wide-ranging exchange of views .
        First , the Egyptian authorities clearly had an erroneous view of
        the respective responsibilities of the Commission , the Member States
        and Community operators in each export operation ; the Community as
        such was seen as having more power or more resources ( credit ) than
        it in fact has at present , and certain operators or Member States
        had omitted to point out to their opposite numbers that the refund ,
        which was necessary for each operation , was a Community instrument .
                                                                         ./...
 ---pagebreak--- Secondly , it is clear that being accustomed to trading on
the basis of special conditions of sale , the Egyptians do
not wish to contemplate a framework agreement containing no
reference to some sort of " preference ", at least for major
products .  The terms of payment ( credit ) were discussed , but
also alternative arrangements involving a link with food aid .
Solutions to these questions are feasible and include the
possibility of a parallel arrangement involving both a frame­
work agreement and food aid , the incorporation in the frame­
work agreement of national credit packages for the purchase
by Egypt of foodstuffs , or arrangements for financing develop­
ment projects .   It appears that Egypt has realized that a
higher refund ( the preferential price idea ) is not necessarily
reflected in the prices charged by Community operators .