CELEX: 51978PC0716
Language: en
Date: 1978-12-13 00:00:00
Title: RECOMMENDATION FOR A COUNCIL DECISION extending until 30 June 1978 the Convention between the European Economic Community and the United Nations Relief and Works Agency for Palestine Refugees (UNRWA) and taking transitional measures with a view to the conclusion of a new Convention. (Presented by the Commission to the Council)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (78) 716
Vol. 1978/0269
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 ---pagebreak---             I   :
              I
           COMMISSION OF THE EUROPEAN COMMUNITIES
                                                                 COM(78)716 final
                                                                 Brussels , 13 December 1978
                          RECOMMENDATION FOR A COUNCIL DECISION
                  extending until 30 June 1978 the Convention "between the European
                  Economic Community and the United Nations Relief and Works Agency
                  for Palestine Refugees (UNRWA) and taking transitional measures
                         with a view to the conclusion of a new Convention*
                          (Presented "by the Commission to the Council )
                                                   X
: GM(78) 716 final
 ---pagebreak---                               EXPLANATORY    NOTE
INTRODUCTION
1 ) £his communication proposes to the Council the extension ( with amendments )
     fpr the year 1978 of the assistance given by the Community to the United Nations
   . R ? Lief and Works Agency for Palestine Refugees ( UNRWA ), under the multi-annual
     Convention already concluded with the Agency with effect from 1 July 1975 .
       V
2 ) For general information on UNRWA and its relations with the Community ,
     reference should be made to the proposal for renewal for the year 1977 ,
     recently submitted to the Council . In addition, information on the latest
     financial position of UNRWA will be found in Table 1 annexed to this document .
OPERATION OF CONVENTION , JANUARY TO DECEMBER 1977
Basic rations program
3 ) The 6 000 t sugar contributed for 1977 were delivered in January, and distributed
     during the year on the basis of a ration of 600 g per month to an average of
     815 900 recipients . Average number of recipients was slightly reduced from
     normal , largely since certain refugees refused to collect their rations for
     the months of November and December as a protest against the non-issue of the
     flour ration ,                                   -
4 ) The other EEC contributions for 1977 to the basic rations program ( 23 500 t
     wheat flour , 3 200 t butteroil ) were effected outside the Convention using the
     normal foodaid procedures ( exchange of letters incorporating standard conditions ).
Supplementary feeding program                                      «         . -
5 ) Operation of this program, for the benefit of the most vulnerable groups among the
     refugees , continued more or less normally during 1977 . The program consists of
     the provision of milk , hot meals and extra rations to small children , pregnant
     and nursing women, tuberculous patients and other selected medical cases .
 ---pagebreak---  6 ) There was a slight drop in the number of recipients under the program , owing partty
  ■     to the events in Lebanon and partly to the cholera outbreak in September 1977 ,
        notably in East Jordan . The cholera necessitated certain measures , including the *
    . ' omission of fresh vegetables and fruits , which in turn resulted in decreased
     I attendance , and decreased consumption of all commodities .       For the same reasons
        the milk program was suspended altogether for certain periods ; it has since been
        restarted, but in modified form .
 7)          a result of the above , small balances remained unused at the end of the year :
        4j?5 t flour, 23 t rice and 15 t sugar .     With the agreement of the Commission ,
        these were issued as basic rations to avoid loss or spoilage .
 8 ) Cash expenditure on the program in 1977 totalled S 3 015 000 ( budget : S 3 million)
        analyzed as follows     :
                                                                               (β χ   1000 )
                                                                     Budget            Actual
        Purchase of preserved foodstuffs                               482               530
        Other expenses                                :              2 518             2 485
             ( of which staff remuneration            :              1 933             1 870 )
        There was thus a shortfall in contributions of 6 15 000 .       It will however be
        remembered that in the previous 18 months contributions exceeded actual expenditure
        by a comfortable margin .
 EXTENSION OF CONVENTION FOR 1978
 Particulars of request
 9 ) UNRWA requests that the Community continue to contribute , for the year 1978              :
        ( a ) the annual requirement of sugar (6 000 t ) for its basic rations program ,
               together with a payment towards inland transport and distribution costs ;
        ( b ) commodities ( flour , rice, sugar , milk powder ) required for the supplementary
               feeding program, together with a payment towards the cost of purchasing certain
               other commodities ( mostly in the EEC ) and of operating the program .
10) The request can be evaluated at S 6 212 000 (4 589 000 EUA ), of which S 3 564 000
        is in cash , the balance representing the estimated world market value of the
        commodities to be donated by the Community . Compared with 1977, this represents
        a decrease of 2,9 % ;        :                       ~
        however this comparison should be treated with caution in view of current fluctua­
        tions in commodity prices ,,
 ---pagebreak---                                                          I
                                                         I
   Basic rations program     ( sugar ) -
 11 ) The Community is requested to continue to supply the annual - requirement of the
      basic rations program for 6 000 t white sugar, based «n a monthly free distribution
      of 600 g for each of the 820 000 refugees eligible*             A contribution of 8 30 /t
      to inland transport and distribution costs is also sought *             The quantity, and
      the contribution, are unchanged from 1977 .
  Supplementary feeding program          -  Commodities      . ,
 12 ) Contribution requested in kind are          :
                     -  2 450 t     wheat flour ;
                 .'  -     171 t rice ;
                     -     102 t    sugar ;           -
                     -     700 t    skimmed milk powder .
      These are at the same level as in previous years , except for skimmed milk powder . ,
      The amounts requested have in fact already been allocated to UNRWA by the Council
      within the general food aid programs previously decided . :
13 ) As regards skimmed milk powder , no request was made last year , since adequate stocks
      were oh hand .   The annual requirement is approximately 700 t            ( the amount requested
      for 1978 ), based on a monthly( issue of 1 300 g for each recipient ,            ( It may be noted
      that there is now also a monthly distribution of 500 g whole milk powder, donated
      by Switzerland       this is the only cqntribution to the program other than from the
   - EEC ) .                                                                              . . '    '.
Supplementary feeding program          -   Cash                  .•
4)    The contribution requested in cash is 8           3 384 600, and is intended to cover the
      following expenditure      ( Cf.    Table 3 for full particulars )      :
      a ) Purchase of preserved foodstuffs - corned beef , tomato paste , pulse ^, and
          burghol ,        the first two to be purchased inside the EEC .
          ( Estimated cost   :   8   565 000 ).
      b ) Expenditure on other foods , supplies , premises , contractual services , and staff
          costs - the last being the major item . ( Estimated cost : 8 2 819 000 after
          taking into account costs recovered from Jordan government ).
15 ) The contribution for 1978 compares with 1977 expenditure of 8 .3 015 000, an
      increase of 8 369 000 ( 12,2 % ).       This increase is due almost entirely to the rise
      in staff costs from 8 1 870 000 to 8 2 189 000 (+ 17 %), the result of salary
      increments and higher cost of living allowances ;             other items have risen by
      smaller amounts , or have fallen .        A fuller analysis will be found in the attached
      Table 4 , prepared by UNRWA at the Commission 's request .
 ---pagebreak---  Period of extension
16 ) The request concerns the twelve months from January to December 1978 .           Previous
     periods were ( 1 ) July 1975 to December 1976 and ( 2 ) January 1977 to December 1977 .
      The Convention as originally concluded did not envisage any extension beyond
      30 jJune 1978, since UNRWA 's mandate was due to expire on that date . However
      the' mandate has in the meantime been extended to 30 June 1981        ( Cf . UN General
      Assembly resolution 32 /90 A of 13 December 1977) ;         ~
 Budget charge
17 ) The estimated cost of the contribution requested for 1978 is 4 589 000 EUA .            This
      can be broken down as follows     :
                                                                    ( EU A    x   1000 )
                                                        Commodities        Cash          Total
     Basic rations program
       Sugar   (6 000 t )                                  1 164            133          1 297
     Supplementary feeding program
       Flour , rice , sugar , skimmed milk powder            792
                                                                                         3 292
       Purchase of other foodstuffs ,                                   2 500
       and operating expenses
                                                           1 956        2 633            4 589
       Further particulars are given in Table 2 and in the Financial Annex .                      i
18 ) The contribution is chargeable to Chapter 92 ( Food Aid ) and Chapter 94 ( Cooperation
     with Developing Countries ) of the 1978 budget .    It does not imply additional expenditun
     for the budget of the Communities since sufficient appropriations under the relevant
     headings have already been approved .
 Action proposed                                                                                   I
19 ) The Commission considers that the Community should continue its support for UNRWA ,
     and should accept the request for the extension of the Convention for the year 1978 .
     It is therefore proposed that the Council adopt the following decision , of which
     the text is attached in Annex      :
           - Council decision ( EEC ) concluding an agreement , in the form of an exchange
             of letters , to extend for the year 1978 the Convention between UNRWA and the
             EEC dated 20 July 1976 .             ' . ,
 ---pagebreak---                                  COUNCIL      DECISION
                                 Of
                  extending until 30 June 1978 the Convention between
                 the European Economic Community and the United Nations
              Relief and Works Agency for Palestine Refugees     ( UNRWA )
              and taking transitional measures with a view to the conclusion
                                 of a new Convention
      THE   COUNCIL   OF    THE  EUROPEAN   COMMUNITIES
      Having regard to the Treaty establishing the European Economic Community
      and in particular Article~TT3 ; _
      Having regard to the recommendation from the Commission ;
      Whereas on 20 July 1976 the Community concluded a Convention with UNRWA
      concerning aid to                refugees in the countries of the Near East
      during the period July 1975 to December 1976 ( 1 ) ;
      Whereas under Article 10 the Convention may ba extended for subsequent
      periods with or without amendment by agreement between the two parties-
      until      30      June 1978 ;
                       ' -                        /                              •
      Whereas the Convention should / subject to certain amendments /lot only be
      extended until this date but also be applied during the rest of the year 1978
      in order that the aid of the Community can be granted in a comprehensive and
      continuous fashion before the conclusion of a new Convention ,
( 1 ) O.J.   L 203 . 29-7-1976, p. 40
 ---pagebreak---                                                                         \
HAS DECIDE !) AS FOLLOWS   :
                                  Article 1
The exchange of Letters concerning the extension until 30 June 1978 of the
Convention concluded on 20 July 1976 between the European Economic Community
        . .   ... ...  ...    _        .       .    _ .
and the United Nations Relief and Works Agency for Palestine Refugees ( UNRWA )
concerning aid to refugees in countries of the Near East is hireby approved
on Jjehalf of the Community .                            •
            The text of the said exchange of letters is annexed to this Decision
                                  Article    2
     Pending the conclusion of a new Convention , Community aid to UNRWA
shall be supplied for the rest of the year 1978 according to the amended
provisions of the Convention concluded on 20 July 1976 .
                                  Article    3
     The President of the Council is authorized to designate the persons
empowered to sign the exchange of letters and to confer on them the necessary
powers to bind the Community .
                                                   Done at
                                                             For the Counci l ,
                                                              The President
 ---pagebreak---                                                                                          1978
                                                                                        TABLE     1
            UNR VIA         INCOME     AND  EXPENDITURE   1977 AND 1978 ,
                                                                            ( US dollars   x    1000 )
                                                                      1977                      1978
 INCOME                                                                                        ( est )
  Contributions
   European Economic Community
   - Member States         :    B                                    1 135                     1 023
                                Da                                   1 975                     1 841
                                D                                    3 324                     4 945
                                F                                    1 324                     1 312
                                Irl                                     109                       . 103
                                                                        253                         229
                                V                                         9                          12
                                N                                    2 008                     2 461
                                UK                                   8 231                     7 246
                                                                    18 368                    19 172
   - Community as such          - basic rations program
                                                                    11 968                    10 490
                                   ( flour , sugar , butteroil
                                     +- cash}
                                - supplementary feeding                                         4 997
                                   program                            4 411
                                   ( flour / rice , dsm + cash )
                                                                                                     283
                                *" emergency program in Lebanon
                                                                     16 379                    15 770
                                                                    34 747                    34 942
   Total     EEC-9
                                                                    48 700                    51 000
   USA
                                                                      5 966                     4 313
    Arab States
                                                                    33 565                    36 314
   Other contributions , etc .
                                                                   122 978                   126 569
   TOTAL       IN_C_0ME
                                                                   126 77 2                  137 700
    T0_T_A L   E.XPENjniU.RJ
                                                                       3,794
    TOTAL       DEFI_C_I_T
Source    :  UNR WA reports .
 ---pagebreak---                                                                                                TABLE    2
                                  COMMODITIES      AND     CASH     REQUIRED   FOR   1973
 COMMODITIES         (1 )
                                                                            US S x 1000     EU A x 1000 ( 2 )
     1)   § as i c_r at i ons_grogram
          6 OOO t       sugar                                                  1 576           1  164
     2)   gupglementar^feeding grogram  ~
          2' 450 t      wheat flour
             171 t      rice
                                                                               1 072              792
             102 t      sugar
             700 t      skimmed milk powder
                                                                               2 648           1 956
 CASH
     1)   Bas i c_r at i ons_gr ogr am
          *
                                                                                                  133
          ^ nland transport and distribution (3)                                 180
     2)   Sugglementar^ feecH ng_grogram
          a . Purchases abroad :           334 t corned beef
                                            27 t tomato paste                    565              417
                                           178 t pulses
                                           11Q t burghol
          b . Other expenses ( mainly staff )                                  2 319           2 083
                                                                               3 564           2 633
TOTAL                                                                          6 212           4 589
(1 )    Evaluation at world market prices delivered port of unloading ,,             197 " bud<j ?t estimates
(2)     Taking     1 EUA =         1,35363   US S     ( 11 - 1978 )
(3)     Assuming      S    30 / tonne .
 ---pagebreak---        î
                                                                                       TABLE    3
                            ESTIMATE OP TIM CASH CONTRIBUTION HBQUIIQ® FOR
                               UNRWA 'S SUPPLMEITTATtY FEEDING PROGRAM
                                                                    19 7 8
                                                  Hot      Milk       Other
                                      1
                                                  Me al     Programme Rations  Admin .         Total
                                                   $            $         $       $               ?
       V'
A.         1 purchase of:
             a ) Corned, "beef – hot meal                 %
                  quality                       135,000                                      135,000
             b ) Corned "beef – protein
                  supplement quality                                  254,200                254.200
             c ) Tomato paste                    25,200                                        25,200
             d) Puises                          115,700        mm
                                                                                             115,700
             e ) Burghol                          35,500                                _      35.500
                             Total « A » ■      311,400               2Mt200     -           565.600
B. 1 .       Other purchased food
             supplies :
             a) Local purchases ( in x                                \
                  particular fresh fruits
                  and vegetables )              450,000                                   . 450,000
             b) Vitamins                           4,900                7,100    -          ' 12,000
   2.        Other Supplies :                     51,000     16,000     1,500   1,500     !    70,000
   3.        Premises :
             a) Rentals                            8,400      4,100                            12,500
             b) Maintenance                       33,800     11,200                            45,000
             c ) Utilities and cleaning            5,000      2,500                             7,500
                                                                                                   k .
   4.        Contractual Services :
        *•
             Principally baking of bread          50,000                                       50,000
   5.        Staff Costs :
             a) Remuneration                  1,512,000   423,000             254.000     2,189,000
             b ) Travel costs and
                  clothing                         K2Ç0       3,200             4.600       ' 15.000
                             Total , B *      2,122,300   460,000       8,600 260,100     2.851.000
C.           Costs recovered from
              Jordan Government                 ( 32,000)                ma»     mm
                                                                                             ( 32,000)
                             NET TOTAL        ?*401J00_ 46O1OOO                           3,384,600
19 July 1978
2Q/ am
 ---pagebreak---                                                                              TABLE   4
                        Estimates of the Cash Contribution required for
                        UNHWl 's Supplementary Feeding Program
                        Reasons for the major variations "bet ween
                        revised estimates and 19W"estimates .
                                                            ±221          1978
  1.  Corned beef hot meal quality                          163,734        135,000
     TJhe difference is acoounted for by a slight
     increase in quantity ( 340,416 to 340,447 tins)
     cpupled with a decrease in unit price ( from
     $0.48 to $0.3966 per tin). The major dis­
     crepancy "between these estimates and those
     submitted in November 1977 is explained by
     the response to our invitation to tender by
     one company which offered an acceptable
^    quality of corned beef at a much lower price .
  2. Corned beef - protein supplement quality               219,422        254 j 200
     The difference is explained by a small
     decrease in quantity ( 672,000 tons to
     640,800 tins ) at a slightly increased price
     ( from $0.3265 to $0.3966 per tin)
  3. Puises                                                  93 ? 681      115,700
     There was a unit prica rise from
     $526 to $650 per ton
                                                             30,670         35 » 500
     There has been a slight reduction in the
     quantity required ( from 120 to 110 tons )
     but a substantial increase in price
     ( from $255® 6 to $322.544 per ton)
  5. Other Supplies                                          62,598         70,000
     Other supplies include principally kitchen
     utensils , cleaning materials , water ,
     equipment and handling ei'cpenses ( other than
     flour). The 1978 estimate is now lower
     than in our November 1977 estimate and re­
     presents only a 10% increase .
                                                                        .. 2/.
 ---pagebreak---                                         - 2 -
                                                       1977      1978
   6*    Maintenance     \  «                          39,345    45,000
         The increase reflects an overall estimated
         15$ increase in the costs of materials and
         labour*
t 7+     utilities                                      6,534     7,500
 1    , As for 6 .
   8.     Contractual services                         43,731    50,000
         As for 6 .
   9.    Staff costs - remuneration                 1,870,176 2,189,000
       , normal salary increments and oost of
         living allowances are estimated to rise
         "by almost 18$
10,      Travel costs and clothing                     13,752    15,000
          There has "been an overall estimated 15
          increase in oosts *
                    Λ
       9 August 1978
                                              \
 ---pagebreak--- f 1978 )
                                 FINANCIAL      ANNEX
   1.    RELEVANT    BUDGET     HEADINGS
         1978   BUDGET
            *
                . Item 9201         " Food aid 1n cereals - 1978 Program"                              ;
                . Item 9211
                                    " Food aid in . mi Ik products - 1978 skimmed milk powder ProgranVj
                . Item 9221         " Food aid in sugar - 1978 Program"
                  Article 940 : " Expenditure resulting from Convention between
                                                                                  EEC and  UNRWA "
         DESCRIPTION      AND   PURPOSE   OF  OPERATION
         Extension for 1978 of Convention between EEC and UNRWA granting contributions
         in commodities and in cash for use in feeding programs for Palestine refugees .
         LEGAL   BASIS
         a ) Cerea Is   :   Council decision of 30 January 1978 on the 1978 EEC food aid
                            program in cereals .
         b ) Skimmed milk powder        Council regulation ( EEC ) 823 /78 of 25 Afsril 1975
                                        on the supply of skimmed milk powder as focd aid
                                        to certain developing countries and specialized
                                        agencies uncer the 1978 program .
         c ) Sugar          Council regulation      ( EEC ) 1034 / 76 of 30 April 1976 on the supply
                            of white sugar to UNRWA as food aid ( for the years 1975 / 76 ,
                            1976 /77 and 1977 /78 )
         d ) Convention : Council decision of 20 July 1976 on conclusion of the Convention
                              between the EEC and UNRWA concerning aid to refugees in
                              countries of the Near East .
                                                                                            ./.,
 ---pagebreak--- A. APPROPRIATIONS
          Item 9201     3   Cereals .
          - 2 450 t     flour     ( équivalent 3 259 t cereals)
                                                               EUA / t            EUA
             Internal price                   :                  218          534 000
             Restitution                      î                  106          260 000
                                                   , -           112          274 000
             Transport                                   -         50         123 000
                                                                 162          397 000
                171 t    rice   ( equivalent 441 t cereals )
                                                                EUA / t           EUA
              Internal price                   :                 488             83 000
              Restitution                      :                 158             27 000
                                                                 330             56 000
              Transport                                            50             9 000
                                                                 380             65 000
          Total      Cereals                                                  4_6_2_00_0__EUA
           Item 9211 ^_J>kimmedŒMUk_Rowder
                 700 t   skimmed milk powder        (Vitamin enriched ) •   -
                                                                EUA / t          EUA
              Internal price                    '•             1 '49          804 000
              Restitution                        :                756          529 000
                                            ι              '
                                                                  393          275 000
              Transport                                            50            35 000
               Total     Skimmed milk powder                      443          310 000 EUA
           Item 9221     ;    Sugar
           - 6 102 t      white sugar     :                     EUA / t            EUA
               Internal price                    :                * 13     2 520 000
               Restitution                       ?           .    269 s    1 641 000
                                                                  144           879 000
                                                                                305 000
               Transport                                            ^0
                                                                  194     1     184 000
            - Cash contribution
               Inland transport and distribution ( for basic rations program only)
               6 000 t     at   8 - 30 /t                                      "133 000 EUA
            Total      Suqar                                                         000 EUA
 ---pagebreak---     d)   ArjMç le_940  -   Convention
         Contribution    S  3,384 million    ( See text )
         Conversion to EUA at assumed rate       S  1,35363        2 500 000 EUA
                                                     ( 11 - 1978 )
    e)   X2i2i_2yd2li_£lll£9®                                      4 589 000 EUA
         ( Note   : Commodity evaluations at 1978 budget prices ).
4.2 Incidence of costs
    a ) The operation does not imply additional expenses beyond those
        appropriations already in the 1978 budget .
    b ) The commodities have either already been delivered or will have
        been by the end of 1978     ( on the basis of Council decisions fixing
        food aid programs ), charged to the 1978 budget appropriations for
        food aid .  The cash contributions have not been paid .
CONTROL OF EXPENDITURE
Financial regulation of 21 December 1977 applicable to general budget of
the Communities .
 ---pagebreak---                    EXCHANGE    OF   LETTERS
Letter from EEC to UNRWA
        With reference to the Convention concluded on 20 July 1976
between the European Economic Community and the Lnited Nations Relief and
Works Agency for Palestine Refugees concerning aid to refugees in the
countries of the Near East , the Community proposes that in accordance
with Article 10 the Convention be extended uht.1l 30 June 1978,
subject to the following amendments    :
       < i ) For the year 1978 the contribution mentioned in Article 4,
             Paragraph 2 shall be thirty US Dollars per metric ton
                                                            r .
      ( ii ) The following text is joined to the Annex of the Convention
 ---pagebreak--- SUPPLEMENTARY    FEEDING   PROGRAM
 Third period of Convention      ( 1.1  -  30.6.1978 )
 Tf   Contributions ^!^ kind
      Wheat flour                         2 450   metric tons
     Milled rice                            171   metric tons
      White sugar                           102   metric tons
      Skimmed milk powder                   700   metric tons
 2.   Contributions_in_cash
     3 384 600    US   Dollars
 3-   Foodstuffs to bg purchased in the i Commun ity
      Corned beef                   approximately  350   metric tons
      Tomato paste                  approximately    28  metric tons .
     Pending the conclusion of a new Convention, Community aid shall be
 supplied to UNRWA for the rest of the year according to the modified
 provisions of the Convention concluded on 20 July 1976 .
     The Community would be obliged if the Agency would indicate whether
 it is in agreement with this proposal .
 ---pagebreak--- (b) Reply from   UNRWA to EEC
          The Agency acknowledges receipt of the Community 's letter *
    dated                  and reading as follows :
               < Text of EEC  letter to UNRWA )
          The Agency confirms its agreement to the above .