CELEX: 51973PC0581
Language: en
Date: 1973-04-18 00:00:00
Title: RECOMMENDATION FOR A COUNCIL DECISION on the conclusion of the International Wheat Agreement, 1971 (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 581
Vol. 1973/0117
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 ---pagebreak---  COMMISSION OF THE EUROPEAN COMMUNITIES
                                                       COM(73)581 final
                                                       Brussels . 18 April 1973
                      RECOMMENDATION FOR A COUNCIL DECISION
                           on the conclusion of the -
                     International Wheat Agreement . . 1971
                   ( submitted to the Council "by the Commission )
COM(73 ) 581 final
 ---pagebreak---                         - 1 -                    1414/VI/73-E
             COMMUNICATION FROM THE COMMISSION TO THE COUNCIL
3y its Decision dated 29 April 1971 , the Council authorised
Mr. L. G. Rabot , the Director–General for Agriculture of the
Commission of the European Communities to sigi in Washington,
in the name of the European Economic Community and subject to
its conclusion , the Wheat Trade Convention , 1971 and the Pood
Aid Convention , 1971 *
A request was made to the International Wheat Council and the
Pood Aid Committee for an extension of the time-limit for the
deposit of the instrument of ratification of the said
Conventions until 30 June 1973 *  According to information from
the Member States , all the governments of the said Member States
will have deposited their instruments of ratification "by that
date . In the light of this , the Commission recommends the
Council to conclude in the name of the European Economic
Community , the International Wheat Agreement , 1971 » and to deposit
the two instruments of conclusion with the Government in
Washington .
 ---pagebreak---         RECOMMENDATION FOR A COUNCIL DECISION
               on "the conclusion of the
         International Wheat Agreement , 1971
THE COUNCIL OF THE EUROPEAN ECONOMIC COMMUNITIES ,
Having regard to the Treaty establishing the European
Economic Community and in particular Article 113, thereof ;
Having regard to the report from the Commission ; whereas
the International Wheat Agreement , 1971 » consisting of two
legal instruments , the Wheat Trade Convention , 1971 and the
Food Aid Convention , 1971 » is concerned in general with the
promotion of international cooperation and contributes to the
attainment of the objectives of the Community commercial
policy and the development aid policy as regards cereals ;
Whereas the period allowed for the deposit of the instrument
concluding the Agreement expires on 30 June 1973 ;
HAS ADOPTED THIS DECISION :
                        Article I
The International Wheat Agreement , 1971 » of which the text
is annexed to this decision , is concluded in the name of the
European Economic Community .
                        Article 2
The President of the Council is authorised to appoint the
persons empowered to deposit the instrument concluding the
Agreement with the Government of the United States of America .
               Done at Brussels ,              For the Council ,
                                                 The President
 ---pagebreak---           INTERNATIONAL WHEAT AGREEMENT, 1971
                                           CONTENTS
                                                                                     Page
 Resolution adopted by the International Wheat Council concerning the texts of the
    International Wheat Agreement, 1971
 International Wheat Agreement, 1971
       Preamble                                                                           1
       Wheat Trade Convention, 1971                                                       3
       Food Aid Convention, 1971 ...                                                    21
 Appendix : Interpretative Notes agreed at the United Nations Wheat Conference, 1971    26
 Rules of Procedure under the Wheat Trade Convention                                    29
 Rules of Procedure under the Food Aid Convention                                       45
                                              INDEX
                                                 to
                   ARTICLES AND RULES OF PROCEDURE
                          WHEAT TRADE CONVENTION, 1971
 Part I–General
 Article   1   Objectives     ...                                                        3
   Rule   j    Implementation of the Convention                                         29
 Article ;     Definitions                                                               3
   Rule i      Definitions    ...                                                      29
Article :      Commercial purchases and special transactions                             4
Article A      Recording and reporting                                                   5
   Rule   j    Tramactions reporting procédure                                         29
   Rule 4      Members which export : reports of transactions with other members       30
   Rule i      Reports of transactions with non-members                                31
   Rule 6      Adjustmentsfor resales, transit trade and transhipments                 31
   Rule   7    Statements of recording                                                 31
  Rule S      Consultations on recording ...                                           32
  Rule 9      Reports of prices                                                       32
Article 5      Estimates of requirements and availability of wheat                       7
  Rule 10     Requirements and availability                                            33
  Rule II     Official specifications of wheat                                        33
Article  6    Consultations on market conditions                                        7
Article  7    Disputes and complaints . . .                                             7
  Rule 12     Serious prejudice                                                       33
Article 8     Annual review of the world wheat situation                                8
  Rule 13     Annual review of the world wheat situation                              33
Article 9     Guidelines relating to concessional transactions                          8
Part II–Administration
Article 10    Constitution of the Council                                               9
  Rule 14     Designated representatives ...                                          34
  Rule 15     Chairman and Vice-Chairman of the Council                               34
 ---pagebreak--- Article 11  Powers and functions of the Council                                        Rule   1   Definitions                                        45
   Rule 16  Council records       ...                                                  Rule 2     Fulfilment     ...     ...                          45
   Rule 17  Publications                  ...        .                               Article 111  Food Aid Committee                                  22
  Rule 18   Delegations of powers         ...                                          Rule   3   Reports by member countries                         46
  Rule 19   Amendment or suspension of Rules ... - ...                                 Rule 4     Reports by the Secretariat                          47
Article 12  Votes                                                                      Rule   5   Report on Performance                               47
Article 13  Seat, sessions and quorum                                                  Rule 6     Designated representatives ...                      47
  Rule 20  Council sessions : notification and draft agenda ...     ...                Rule   7   The Chairman and Vice-Chairman                      47
  Rule 21  Council sessions : procédure ...                                            Rule   8   Sessions, other meetings and quorum                 48
  Rule 22  Council sessions : Credentials Committee                                    Rule 9     Sessions : notification and draft agenda            48
  Rule 23  Council sessions : voting                                                   Rule 10    Procedure at meetings                               48
Article 14 Decisions                                                                   Rue 11     Decisions                                           49
Article 15 Executive Committee                                                         Rue 12     Records of the Food Aid Committee                   49
  Rule 24  Executive Committee : membership ...                                        Rule 13    Amendment or suspension of Rules . . .              49
  Rule 25  Executive Committee : Chairman                                              Rue 14     Publications ...                                    50
  Rule 26  Executive Committee : procedure at meetings and minutes                   Article IV   Administrative provisions . . .           ... ...   23
  Rule 27  Executive Committee : voting                                                Rule 15    Secretariat     ...     ...   ...                   50
Article 16 Advisory Sub-Committee on Market Conditions                               Article V    Defaults and disputes                               23
  Rule 28  Advisory Sub-Committee on Market Conditions : membership                  Article VI   Signature                                           23
  Rule 29  Advisory Sub-Committee on Market Conditions : functions, procedure and    Article VII  Ratification, acceptance or approval                23
              minutes                                                                                                                                 23
                                                                                     Article VIII Accession
Article 17 Secretariat   ...                                                                                                                          50
                                                                                       Rule 16    Accession
  Rule 30  Duties of the Executive Secretary ...                                                                                                      24
                                                                                     Article IX   Provisional application       ...     ...
Article 18 Privileges and immunities ...         ...               ...  "...                                                                        . 24
                                                                                     Article X    Entry into force        ...   ...
Article 19 Finance                                                                                                                                    25
                                                                                     Article XI   Duration       ...     ...    ...
  Rule 31  Finance : financial year                                                  Article XII  Notification by depositary Government ...           25
  Rule 32  Finance : budget                                                                                                                           25
                                                                                     Article XIII Certified copy of the Convention . . .
  Rule 33  Finance : accounts                                                                                                                         25
                                                                                     Art cle XIV  Relationship of Preamble to Convention
  Rule 34  Appointment of auditors and trustees
Article 20 Co-operation with other intergovernmental organizations
Article 21 Prices and related rights and obligations
Article 22 Signature
Artide 23  Ratification, acceptance, approvai . . .
Article 24 Provisional application
Article 25 Accession
  Rule 35  Accessions
  Rule 36  Extensions of time
Article 26 Entry into force
Article 27 Duration, amendment and withdrawal
Article 28 Territorial application
Article 29 Notification by depositary Government
Article 30 Certified copy of the Convention
Article 31 Relationship of Preamble to Convention
ANNEX A    Votes of exporting members
ANNEX B    Votes of importing members
                         FOOD AID CONVENTION, 1971
Article I  Objective                                                              21
Article II International food aid                                                 21
 ---pagebreak---                       INTERNATIONAL
         WHEAT AGREEMENT, 1971
                                   PREAMBLE
 The United Nations Wheat Conference, 1971,
        Considering that the International Wheat Agreement of 1949 was
     revised, renewed or extended in 1953, 1956, 1959, 1962, 1965, 1966 and
      1967,
        Considering that the provisions of the International Grains Arrangement,
     1967, consisting of the Wheat Trade Convention, on the one hand, and
     the Food Aid Convention, on the other, will expire on 30 June 1971
     and that it is desirable to conclude an Agreement for a new period,
Has agreed that this International Wheat Agreement, 1971 shall consist of two
separate legal instruments
     (a) the Wheat Trade Convention, 1971 and
     (b) the Food Aid Convention, 1971
and that either the Wheat Trade Convention, 1971 or both the Wheat Trade
Convention, 1971 and the Food Aid Convention, 1971 , as appropriate, shall be
submitted for signature, ratification, acceptance or approval, in conformity with
their respective constitutional procedures, by the Governments represented at the
United Nations Wheat Conference, 1971 and by the Governments of States
party to the Wheat Trade Convention of the International Grains Arrangement,
1967.
                                            1
 ---pagebreak--- WHEAT TRADE CONVENTION,
                                      1971
                         PART I – GENERAL
                                  ARTICLE 1
                                   Objectives
The objectives of this Convention are :
(a) To further international co-operation in connexion with world wheat
      problems, recognizing the relationship ofthe trade in wheat to the economic
      stability of markets for other agricultural products ;
(b) To promote the expansion of the international trade in wheat and wheat
      flour and to secure the freest possible flow of this trade in the interests
      of both exporting and importing members, and thus contribute to the
      development of countries, the economies of which depend on commercial
      sales of wheat ;
(c) To contribute to the fullest extent possible to the stability of the inter­
      national wheat market in the interests of both importing and exporting
      members ; and
(d) To provide a framework, in conformity with Article 21 of the present
      Convention, for the negotiation of provisions relating to the prices of
      wheat and to the rights and obligations of members in respect of inter­
      national trade in wheat.
                                  ARTICLE 2
                                   Définitions
For the purposes of this Convention :
( 1 ) (a) " Council" means the International Wheat Council established by the
           International Wheat Agreement, 1949 and continued in being by
           Article 10 ;
      (,b) "Member" means a party to this Convention or a territory or a group
           of territories in respect of which a notification has been made pursuant
           to paragraph (3) of Article 28 ;
      (c) " Exporting member" means a member listed in Annex A ;
      (d) " Importing member" means a member listed in Annex B ;
      (e) " Territory" in relation to an exporting or importing member includes
           any territory in respect of which the rights and obligations of that
           member under this Convention apply under Article 28 ;
      (/) " Executive Committee" means the Committee established under
           Article 15 ;
      (g) "Advisory Sub-Committee on Market Conditions" means the
            Sub-Committee established under Article 16 ;
                                         3
 ---pagebreak---          (h) "Grains" means wheat, rye, barley, oats, maize and sorghum ;               international trade and which does not include those transactions referred to in
         (») "Wheat" includes wheat grain of any description, class, type, grade or     paragraph (2) of this Article.
               quality and, except where the context otherwise requires, wheat flour ;       (2) A special transaction for the purposes of this Convention is one which
         (j ) "Crop year" means the period from 1 July to 30 June ;                     includes features introduced by the Government of a member concerned which
                                                                                        do not conform to usual commercial practices . Special transactions include the
         (k) "Bushel" means in the case of wheat sixty pounds avoirdupois or            following :
               27*2155 kilogrammes ;
         (/) "Metric ton", or 1,000 kilogrammes, means in the case of wheat                  (a) Sales on credit in which, as a result of government intervention, the
               36-74371 bushels ;                                                                   interest rate, period of payment, or other related terms do not conform
                                                                                                    to the commercial rates, periods or terms prevailing in the world market ;
          (;m)   (i) " Purchase" means a purchase for import of wheat exported or to
                     be exported from an exporting member or from other than an              (b) Sales in which the funds for the purchase of wheat are obtained under a
                     exporting member, as the case may be, or the quantity of such                  loan from the Government of the exporting member tied to the purchase
                     wheat so purchased, as the context requires ;                                  of wheat ;
                (ii) " Sale" means a sale for export of wheat imported or to be              (c) Sales for currency of the importing member which is not transferable or
                     imported by an importing member or by other than an importing                  convertible into currency or goods for use in the exporting member ;
                     member, as the case may be, or the quantity of such wheat so sold,
                     as the context requires ;                                               (d) Sales under trade agreements with special payments arrangements which
                                                                                                    include clearing accounts for settling credit balances bilaterally through
               (iii) Where reference is made in this Convention to a purchase or sale,              the exchange of goods, except where the exporting member and the
                     it shall be understood to refer not only to purchases or sales                 importing member concerned agree that the sale shall be regarded as
                     concluded between the Governments concerned but also to                        commercial ;
                     purchases or sales concluded between private traders and to
                     purchases or sales concluded between a private trader and the           (e) Barter transactions :
                     Government concerned .       In this   definition  " Government"                (i) which result from the intervention of governments where wheat is
                     shall be deemed to include the Government of any territory                          exchanged at other than prevailing world prices, or
                     in respect of which the rights and obligations of any Government               (ii) which involve sponsorship under a government purchase programme,
                     ratifying, accepting, approving or acceding to this Convention                      except where the purchase of wheat results from a barter transaction
                     apply under Article 28 ;                                                            in which the country of final destination was not named in the original
          («) Any reference in this Convention to a " Government represented at                          barter contract ;
               the United Nations Wheat Conference, 1971 " shall be construed as
               including a reference to the European Economic Community (herein­             (/) A gift of wheat or a purchase of wheat out of a monetary grant by the
               after referred to as the EEC). Accordingly, any reference in this                    exporting member made for that specific purpose ;
               Convention to "signature" or to the " deposit of instruments of               (,g) Any other categories of transactions, as the Council may prescribe, that
               ratification, acceptance or approval" or " an instrument of accession"               include features introduced by the Government of a member concerned
               or a "declaration of provisional application" by a Government                        which do not conform to usual commercial practices .
               shall, in the case of the EEC be construed as including signature
               or declaration of provisional application on behalf of the EEC by its         (3) Any question raised by the Executive Secretary or by any exporting or
               competent authority and the deposit of the instrument required by        importing member as to whether a transaction is a commercial purchase as defined
               the institutional procedures of the EEC to be deposited for the          in paragraph ( 1 ) of this Article or a special transaction as defined in paragraph (2)
               conclusion of an international agreement.                                of this Article shall be decided by the Council .
     (2) All calculations of the wheat equivalent of purchases of wheat flour shall be                                        ARTICLE 4
made on the basis of the rate of extraction indicated by the contract between the
buyer and the seller. If no such rate is indicated, seventy-two units by weight of                                      Recording and reporting
wheat flour shall, for the purpose of such calculations , be deemed to be equivalent         ( 1 ) The Council shall keep separate records for each crop year :
to one hundred units by weight of wheat grain unless the Council decides otherwise.
                                                                                             (a) for the purposes of the operation of this Convention, of all commercial
                                                                                                    purchases by members from other members and non-members and of all
                                      ARTICLE 3                                                     imports by members from other members and non-members on terms
                                                                                                    which render them special transactions ; and
                 Commercial purchases and special transactions
                                                                                              (b) of all commercial sales by members to non-members and of all exports
     (1) A commercial purchase for the purposes of this Convention is a purchase                    by members to non-members on terms which render them special
                        ° P*        cnriforms. to the usuai commercial practices in                 transactions .
 ---pagebreak---       (2) The records referred to in the preceding paragraph shall be kept so that       unreasonably fails to make reports as required by this Article , the Executive
records of special transactions are separate from records of commercial transactions.    Committee shall arrange consultations with that member to remedy the situation.
      (3) In order to facilitate the operation of the Advisory Sub-Committee on
Market Conditions under Article 16, the Council shall keep records of inter­                                                  ARTICLE 5
national market prices for wheat and wheat flour and of transportation costs .                          Estimates of requirements and availability of wheat
      (4) In the case of any wheat which reaches the country of final destination
after re-salc in, passage through, or trans-shipment from the ports of, a country             ( 1 ) By 1 October in the case of Northern Hemisphere countries and 1 February
other than that in which the wheat originated, members shall to the maximum              in the case of Southern Hemisphere countries, each importing member shall
extent possible make available such information as will enable the purchase or           notify the Council of its estimate of its commercial import requirements of wheat
transaction to be entered in the records referred to in paragraphs ( 1 ) and (2) of      in that crop year. Any importing member may thereafter notify the Council of any
this Article as a purchase or transaction between the country of origin and the          changes it may desire to make in its estimate.
country of final destination. In the case of a re-sale, the provisions of this paragraph      (2) By 1 October in the case of Northern Hemisphere countries and 1 February
shall apply if the wheat originated in the country of origin during the same crop        in the case of Southern Hemisphere countries, each exporting member shall
year.                                                                                    notify the Council of its estimate of the wheat it will have available for export in that
                                                                                         crop year. Any exporting member may thereafter notify the Council of any changes
      (5) The Council may authorize purchases to be recorded for a crop year if:         it may desire to make in its estimate.
      (a) the loading period involved is within a reasonable time up to one month,            (3) All estimates notified to the Council shall be used for the purpose of
           to be decided by the Council, before the beginning or after the end of        the administration of this Convention and may only be made available to exporting
           that crop year ; and                                                          and importing members on such conditions as the Council may prescribe. Estimates
      (b) the two members concerned so agree.                                            submitted in accordance with this Article shall in no way be binding.
      (6) For the purpose of this Article :                                                                                    ARTICLE 6
      (a) members shall send to the Executive Secretary such information con­                                    Consultations on market conditions
           cerning the quantities of wheat involved in commercial sales and purchases
           and special transactions as the Council within its competence may require,         ( 1 ) If the Advisory Sub-Committee on Market Conditions, in the course of its
           including :                                                                   continuous review of the market under paragraph (2) of Article 16, is of the opinion
             (i) in relation to special transactions, such detail of the transactions    that a situation of market instability has arisen or threatens imminently to arise,
                 as will enable them to be classified in accordance with Article 3 ;     or if such a situation is called to the Advisory Sub-Committee's attention by the
                                                                                         Executive Secretary on his own initiative or at the request of any exporting or
            (ii) in respect of wheat , such information as may be available as to the    importing member it shall immediately report the facts concerned to the Executive
                 type, class, grade and quality, and the quantities relating thereto ;   Committee. The Advisory Sub-Committee shall in so informing the Executive
           (iii) in respect of Hour, such information as may be available to identify    Committee give particular regard to those circumstances which have brought
                 the quality of the flour and the quantities relating to each separate   about, or threaten to bring about, the situation of market instability, including
                 quality ;                                                               price fluctuations. The Executive Committee shall meet within live market days to
                                                                                         review the situation and to consider whether it would be possible to arrive at
      (ib) members when exporting on a regular basis, and such other members             mutually acceptable solutions .
           as the Council shall decide, shall send to the Executive Secretary such
           information relating to prices of commercial and, where available, special          (2 ) The Executive Committee shall, if it considers it appropriate, inform
           transactions in such descriptions, classes, types, grades and qualities of    the Chairman of the Council who may convene a session of the Council to review
                                                                                         the situation .
           wheat and wheat flour as the Council may require ;
      (c) the Council shall obtain regular information on currently prevailing
           transportation costs, and members shall to the extent practicable report                                            ARTICLE 7
           such supplementary information as the Council may require.                                                  Disputes and complaints
       (7) The Council shall make rules of procedure for the reports and records               ( 1 ) Any dispute concerning the interpretation or application of this Convention
 referred to in this Article. Those rules shall prescribe the frequency and the          which is not settled by negotiation shall, at the request of any member which
 manner in which those reports shall be made and shall prescribe the duties of           is a party to the dispute, be referred to the Council for decision.
 members with regard thereto. The Council shall also make provision for the amend­
 ment of any records or statements kept by it, including provision for the settlement          (2) Any member which considers that its interests as a party to this Convention
 of any dispute arising in connexion therewith. If any member repeatedly and             have been seriously prejudiced by actions of any one or more members affecting
                                             6                                                                                       7
 ---pagebreak--- the operation of this Convention may bring the matter before the Council. In
                                                                                                 (2) To this end members shall undertake appropriate measures to ensure that
such a case, the Council shall immediately consult with the members concerned
                                                                                          concessional transactions are additional to commercial sales which could reasonably
in order to resolve the matter. If the matter is not resolved through such consulta­      be anticipated in the absence of such transactions. Such measures shall be consistent
tions, the Council shall consider the matter further and may make recommendations         with the Principles of Surplus Disposal and Guiding Lines recommended by the
to the members concerned .
                                                                                          FAO and may provide that a specified level of commercial imports of wheat, agreed
                                                                                          with the recipient country, be maintained on a global basis by that country. In
                                                                                          establishing or adjusting this level full regard shall be had to the commercial import
                                        ARTICLE 8                                         levels in a representative period and to the economic circumstances of the recipient
                      Annual review of the world wheat situation                          country, including, in particular, its balance-of-payments situation.
      ( 1 ) (a) In the furtherance of the objectives of this Convention as set forth in           (3) Members, when engaging in concessional export transactions, shall
            Article 1 , the Council shall annually review the world wheat situation and   consult with exporting members whose commercial sales might be affected by
            shall inform members of the effects upon the international trade in wheat
                                                                                           such transactions, to the maximum possible extent before such arrangements are
            of the facts which emerge from the review, in order that these effects be      concluded with recipient countries .
            kept in mind by these members in determining and administering their                  (4) The Executive Committee shall furnish an annual report to the Council on
            internal agricultural and price policies .                                     developments in concessional transactions in wheat.
      (b) The review shall be carried out in the light of information obtainable in
            relation to national production, stocks, consumption, prices and trade,                              PART II – ADMINISTRATION
            including both commercial and special transactions, of wheat.
                                                                                                                                ARTICLE 10
      (c) Each member may submit to the Council information which is relevant
            to the annual review of the world wheat situation and is not already                                        Constitution of the Council
            available to the Council either directly or through the appropriate organiza­
            tion in the United Nations system including the United Nations Confer­                 (1) The International Wheat Council, established by the International Wheat
            ence on Trade and Development (UNCTAD) and the Food and Agriculture             Agreement 1949, shall continue in being for the purpose of administering
            Organization of the United Nations (FAO).                                       this Convention with the membership, powers and functions provided in this
                                                                                            Convention .
      (2) In carrying out the annual review, the Council shall consider the means
through which the consumption of wheat may be increased, and may undertake, in                     (2) Each exporting and importing member shall be a voting member of the
 co-operation with members, studies of such matters as :                                    Council and may be represented at its meetings by one delegate, alternates, and
                                                                                            advisers .
      (a) factors affecting the consumption of wheat in various countries, and
      (,b) means of achieving increased consumption, particularly in countries                     (3) Such intergovernmental organizations as the Council may decide to
            where the possibility of increased consumption is found to exist.                invite to any of its meetings may each have one non-voting representative in
                                                                                             attendance at those meetings .
      (3) For the purposes of this Article, the Council shall take into account work               (4) The Council shall elect a Chairman and Vice-Chairman who shall hold
 done on grains by UNCTAD and the FAO and by other intergovernmental                         office for one crop year. The Chairman shall have no vote and the Vice-Chairman
 organizations, in order to avoid duplication of work, and may, without prejudice            shall have no vote while acting as Chairman.
to the generality of paragraph ( 1 ) of Article 20, make such arrangements regarding
 co-operation in any of its activities as it considers desirable with such intergovern­                                           ARTICLE 11
 mental organizations and also with any Governments of Members of the United
 Nations or of the specialized agencies not party to this Convention which have a                                   Powers and functions of the Council
 substantial interest in the international trade in grains .
                                                                                                    (1) The Council shall establish its Rules of Procedure.
      (4) Nothing in this Article shall prejudice the complete liberty of action of any
 member in the determination and administration of its internal agricultural and                    (2) The Council shall keep such records as are required by the terms of this
 price policies.                                                                              Convention and may keep such other records as it considers desirable.
                                                                                                    (3) The Council shall publish an annual report and may also publish any
                                        ARTICLE 9                                             other information (including, in particular, its annual review or any part or summary
                    Guidelines relating to concessional transactions                          thereof) concerning matters within the scope of this Convention.
       (1) Members undertake to conduct any concessional transactions in wheat in                   (4) In addition to the powers and functions specified in this Convention the
 such a way as to avoid harmful interference with normal patterns of production               Council shall have such other powers and perform such other functions as are
 and international commercial îrade .                                                         necessary to carry out the terms of this Convention.
 ---pagebreak---             , y> //,c J0ou/,cu" m*y> by two-thirds of the votes cast by the exporting members           (2) The Council shall meet at least once during each half of each crop year
       and two thirds of the votes cast by the importing members delegate to any of its           and at such other times as the Chairman may decide, or as otherwise required
                       °r, ?         ^cut'v^ Secretary the exercise of powers or functions other  by this Convention.
       than those relating to the budget and assessment of contributions contained in
       paragraphs (2) and (3) of Article 19. The Council may at any time revoke such                    (3) The Chairman shall convene a session of the Council if so requested by
      delegation by a majority of the votes cast. Any decision made under any powers or           (a) five members or (b) one or more members holding a total of not less than 10
      functions delegated by the Council in accordance with this paragraph shall be               per cent of the total votes or (c) the Executive Committee.
      subject to review by the Council at the request of any exporting or importing                     (4) The presence of delegates with a majority of the votes held by the exporting
      members made within a period which the Council shall prescribe. Any decision in             members and a majority of the votes held by the importing members prior to any
     Qshall
        £S ne£lbe binding
                  U ^ onn°all1fquest,for
                                  members.
                                            review has been made with>n the prescribed period
                                                                                         p        adjustment of votes under Article 12 shall be necessary to constitute a quorum at
                                                                                                  any meeting of the Council .
             (6) In order to enable the Council to discharge its functions under this
     Convention, the Council may request, and members undertake to supply, such                                                         ARTICLE 14
     statistics and information as are necessary for this purpose.                                                                        Décisions
                                              ARTICLE 12                                                ( 1 ) Except where otherwise specified in this Convention, decisions of the
                                                  Votes
                                                                                                  Council shall be by a majority of the votes cast by the exporting members and a
                                                                                                  majority of the votes cast by the importing members, counted separately.
                  Tue,fpoTg ™bers sha11 together hold 1,000 votes and the importing
    members shall together hold 1,000 votes.                                           ipurung          (2) Each member undertakes to accept as binding all decisions of the Council
                                                                                                  under the provisions of this Convention.
            (2) The votes to be exercised by the respective delegations of exporting
    members on the Council shall be those specified in Annex A.                                                                        ARTICLE 15
           (3) The votes to be exercised by the respective delegations of importine                                               Executive Committee
    members on the Council shall be those specified in Annex B.                                         (1 ) The Council shall establish an Executive Committee. The members of the
           (4) Any exporting member may authorize any other exporting member and                  Executive Committee shall be not more than four exporting members elected
   any importing member may authorize any other importing member, to rcp 'esem                    annually by the exporting members and not more than eight importing members
   it interests and to exercise its votes at any meeting or meetings of the Co3                   elected annually by the importing members. The Council shall appoint the Chair­
   Satisfactory evidence of such authorization shall be submitted to the Council.                man of the Executive Committee and may appoint a Vice-Chairman.
   mrJiP If 3t 3ny meetinf of the Council an exporting member or an importing                          (2) The Executive Committee shall be responsible to and work under the
                                                                                                 general direction of the Council. It shall have such powers and functions as are
  "member
        J fto not      rcpresentcd by an accredited delegate and has not authorized anothe?
                    exercise its votes m accordance with paragraph (4) of this Article and if    expressly assigned to it under this Convention and such other powers and functions
  at the date of any meeting any member has forfeited, has been deprived of 'or has              as the Council may delegate to it under paragraph (5) of Article 11 .
 recovered its votes under any provisions of this Convention, the total votes to be                    (3) The exporting members on the Executive Committee shall have the same
 exercised by the exporting members shall be adjusted to a figure equal to the total             total number of votes as the importing members. The votes of the exporting
 of votes to be exercised at that meeting by the importing members aSd redistrfbuted
 among exporting members in proportion to their votes.
                                                                                                 members on the Executive Committee shall be divided among them as they shall
                                                                                                 decide, provided that no such exporting member shall have more than 40 per cent
 t, • ^ Whenever any country becomes or any member ceases to be a party to                       of the total votes of those exporting members. The votes of the importing members
                                                                                                 on the Executive Committee shall be divided among them as they shall decide,
S Anne^B ^'th^                                 redistribute the votes within either Annex A      provided that no such importing member shall have more than 40 per cent of the
ochSta.                                                      '» the number of vote, held by      total votes of those importing members.
ckoi.     K-* No/Xportilîg or imP°rting rnember shall have less than one vote and                      (4) The Council shall prescribe rules of procedure regarding voting in the
shall be no fractional votes .                                                                   Executive Committee and may make such other provision regarding rules of
                                                                                                 procedure in the Executive Committee as it thinks fit. A decision of the Executive
                                                                                                 Committee shall require the same majority of votes as this Convention prescribes
                                            ARTICLE 13                                           for the Council when making a decision on a similar matter.
                                    Seat, sessions and quorum                                          (5) Any exporting or importing member which is not a member of the Executive
                                                                                                 Committee may participate, without voting, in the discussion of any question before
otherwise                  °f ^ C°Uncil sha11 be London unless the Council decides               the Executive Committee whenever the latter considers that the interests of that
                                                                                                 member are affected .
                                                  10
                                                                                                                                             11
 ---pagebreak---                                       ARTICLE 16                                               (3) The Agreement referred to in paragraph (2) of this Article shall be
                Advisory Sub-Committee on Market Conditions                             independent of the present Convention. It shall however terminate :
       (1) The Executive Committee shall establish an Advisory Sub-Committee on                (a) by agreement between the Government of the United Kingdom of Great
  Market Conditions consisting of technical representatives of not more than five                     Britain and Northern Ireland and the Council, or
  exporting members and of not more than five importing members . The Chairman
 of the Advisory Sub-Committee shall be appointed by the Executive Committee.                  (b) in the event of the seat of the Council being moved from the United
                                                                                                      Kingdom, or
       (2) The Advisory Sub-Committee shall keep under continuous review current
 market conditions and shall report to the Executive Committee as provided in                  (c) in the event of the Council ceasing to exist.
 Article 6. The Advisory Sub-Committee shall, in the exercise of its functions,
 take into account any representations made by any exporting or importing member.              (4) In the event of the seat of the Council being moved from the United
                                                                                        Kingdom, the Government of the member in which the seat of the Council is
       (3) Any member which is not a member of the Advisory Sub-Committee may           situated shall conclude with the Council an international agreement relating to the
 participate in the discussion of any question before the Advisory Sub-Committee        status, privileges and immunities of the Council, its Executive Secretary, its staff
 whenever the latter considers that the interests of that member are directly affected. and representatives of members at meetings convened by the Council .
       (4) The Advisory Sub-Committee shall advise in accordance with the relevant
 Articles of this Convention and on such other matters as the Council or the                                                     ARTICLE 19
 Executive Committee may refer to it, including such matters as the Council may
 refer to it under Article 21 of this Convention.                                                                                   Finance
                                      ARTICLE 17                                                ( 1 ) The expenses of delegations to the Council and of representatives on its
                                                                                         Committees and Sub-Committees shall be met by their respective Governments .
                                       Secrétariat
                                                                                         The other expenses necessary for the administration of this Convention shall be met
      ( 1) The Council shall have a Secretariat consisting of an Executive Secretary,    by annual contributions from the exporting and importing members. The contri­
who shall be its chief administrative officer, and such staff as may be required for     bution of each such member for each crop year shall be in the proportion which
the work of the Council and its Committees .                                             the number of its votes bears to the total of the votes of the exporting and importing
                                                                                         members at the beginning of that crop year.
      (2) The Council shall appoint the Executive Secretary who shall be responsible
for the performance of the duties devolving upon the Secretariat in the adminis­                (2) At its first session after this Convention comes into force, the Council shall
tration of this Convention and for the performance of such other duties as are           approve its budget for the period ending 30 June 1972 and assess the contribution
assigned to him by the Council and its Committees .                                      to be paid by each exporting and importing member.
      (3) The staff shall be appointed by the Executive Secretary in accordance                  (3) The Council shall , at a session during the second half of each crop year,
with regulations established by the Council.                                             approve its budget for the following crop year and assess the contribution to be paid
     (4) It shall be a condition of employment of the Executive Secretary and of the     by each exporting and importing member for that crop year.
staff that they do not hold or shall cease to hold financial interest in the trade in
wheat and that they shall not seek or receive instructions regarding their duties                (4) The initial contribution of any exporting or importing member acceding
under this Convention from any Government or from any other authority external            to this Convention under paragraph (2) of Article 25 shall be assessed by the
to the Council .                                                                          Council on the basis of the votes to be distributed to it and the period remaining
                                                                                          in the current crop year, but the assessments made upon other exporting and import­
                                     ARTICLE 18
                                                                                          ing members for the current crop year shall not be altered.
                             Privileges and immunities                                           (5) Contributions shall be payable immediately upon assessment. Any
                                                                                          exporting or importing member failing to pay its contribution within one year
     (1) The Council shall have legal personality. It shall in particular have the        of its assessment shall forfeit its voting rights until its contribution is paid, but
capacity to contract, acquire and dispose of movable and immovable property               shall not be relieved of its obligations under this Convention, nor shall it be
and to institute legal proceedings.                                                       deprived of any of its rights under this Convention unless the Council so decides.
     (2) The status, privileges and immunities of the Council in the territory of the            (6) The Council shall, each crop year, publish an audited statement of its
United Kingdom shall continue to be governed by the Headquarters Agreement                receipts and expenditures in the previous crop year.
between the Government of the United Kingdom of Great Britain and Northern
Ireknd and the International Wheat Council signed at London on 28 November                        (7) The Council shall, prior to its dissolution, provide for the settlement of
                                                                                          ifm linHilirifs and the disnosal of its records and assets .
 ---pagebreak---                                         ARTICLE 20                                                                           ARTICLE 24
               Co-operation with other intergovernmental organizations                                                 Provisional application
          (1) The Council may make whatever arrangements are appropriate for consul­         Any signatory Government may deposit with the Government of the United
    ^TTT>1C0"0^CratIt0nl_W1|h,Ahe United Nations and its organs, in particular         States of America a declaration of provisional application of this Convention. Any
    UNCTAD, and with the FAO and such other specialized agencies of the United         other Government eligible to sign this Convention or whose application for accession
    Nations and intergovernmental organizations as may be appropriate.                 is approved by the Council may also deposit with the Government of the United
                                                                                       States of America a declaration of provisional application. Any Government
         (2) The Council, bearing in mind the particular role of UNCTAD in             depositing such a declaration shall provisionally apply this Convention and be
   international commodity trade, will, as it considers appropriate, keep UNCTAD       provisionally regarded as a party thereto.                                   . ..     ,
   informed of its activities and programmes of work.
                                                                                                                             ARTICLE 25
         (3) If the Council finds that any terms of this Convention are materially
   inconsistent with such requirements as may be laid down by the United Nations                                                Accession
   or through its appropriate organs and specialized agencies regarding                      ( 1 ) Any Government represented at the United Nations Wheat Conference,
   intergovernmental commodity agreements, the inconsistency shall be deemed to
   be a circumstance affecting adversely the operation of this Convention and the      1971 or the Government of any country party to the Wheat Trade Convention,
  procedure prescribed in paragraphs (2), (3) and (4) ofArticle 27 shall be applied.   1967 may accede to the present Convention until and including 17 June 1971 ,
                                                                                       except that the Council may grant one or more extensions of time to any Govern­
                                                                                       ment which has not deposited its instrument by that date.
                                       ARTICLE 21                                            (2) After 17 June 1971 , any Government invited to the United Nations Wheat
                       Prices and related rights and obligations                       Conference, 1971 , may accede to the present Convention upon such conditions as
                                                                                       the Council considers appropriate by two-thirds of the votes cast by exporting
        In order to assure supplies of wheat and wheat flour to importing members      members and by two-thirds of the votes cast by importing members.
  and markets for wheat and wheat flour to exporting members at equitable and                (3) Accession shall be effected by deposit of an instrument of accession with
 stable prices, the Council shall at an appropriate time examine the questions of      the Government of the United States of America.
 prices and related rights and obligations . When it is judged that these matters are
                          r eg0tiatI0n With the objective of bringing them into effect       (4) Where, for the purposes of the operation of this Convention, reference is
                  of thls Convention, the Council shall request the Secretary-General  made to members listed in Annex A or B, any member the Government of which
 01 UNCI AD to convene a negotiating conference.                                       has acceded to this Convention on conditions prescribed by the Council in accordance
                                                                                        with this Article shall be deemed to be listed in the appropriate Annex.
                                      ARTICLE 22                                                                              ARTICLE 26
                                        Signature                                                                           Entry into force
 1Q71 Thls Convention shall be open for signature in Washington from 29 March                ( 1 ) This Convention shall enter into force among those Governments that
 WhL^T ^ rl               ng          19J! by Governments of countries party to the     have deposited instruments of ratification, acceptance, approval or accession as
 SL Whtt cSri 1971                         y Go,"nmcnK                  " "he United    follows :
                                                                                              (a) On 18 June 1971 with respect to all provisions other than Articles 3 to
                                                                                                   9 inclusive and Article 21 , and
                                      ARTICLE 23                                              (b) On 1 July 1971 with respect to Articles 3 to 9 inclusive and Article 21
                         Ratification, acceptance, approvai                             if such instruments of ratification, acceptance, approval or accession, or declarations
                                                                                        of provisional application have been deposited not later than 17 June 1971 on
     , . s Convention shall be subject to ratification, acceptance or approval bv       behalf of Governments representing exporting members holding at least 60 per
each signatory Government in accordance with its respective constitutional              cent of the votes set out in Annex A and representing importing members holding
Pr°^e'?ur^s- Instruments of ratification, acceptance or approval shall be deposited     at least 50 per cent of the votes set out in Annex B.
with the Government of the United States of America not later than 17 June 1971               (2) This Convention shall enter into force for any Government that deposits
except that the Council may grant one or more extensions of time to any signatory       an instrument of ratification, acceptance, approval or accession after 18 June 1971
approvalby tha^date' ^ deP°SUed instrument of ratification, acceptance or               in accordance with the relevant provisions of this Convention on the date of such
                                                                                        deposit, except that no part of it shall enter into force for such a Government until
                                           14                                                                                       15
 ---pagebreak---   that part enters into force for other Governments under paragraph (1) or (3) of this this Convention. The Council shall have power, in such circumstances, to recom­
  Article.                                                                             mend an amendment in accordance with paragraph (2) of this Article.
         (3) If this Convention does not enter into force in accordance with paragraph
  (1) ofthis Article, the Governments which have deposited instruments ofratification,                                         ARTICLE 28
  acceptance, approval or accession, or declarations of provisional application may                                      Territorial application
  decide by mutual consent that it shall enter into force among those Governments
  that have deposited instruments of ratification, acceptance, approval or accession.          ( 1 ) Any Government may, at the time of signature or ratification, acceptance,
                                                                                       approval, provisional application of or accession to this Convention declare that its
                                      ARTICLE 27                                       rights and obligations under this Convention shall not apply in respect of one or
                                                                                        more of the territories for the international relations of which it is responsible.
                        Duration, amendment and withdrawal
                                                                                               (2) With the exception of territories in respect of which a declaration has
        (1 ) This Convention shall remain in force until and including 30 June 1974     been made in accordance with paragraph ( 1) of this Article, the rights and obliga­
  However, if a new agreement covering wheat is negotiated as envisaged by Article      tions of any Government under this Convention shall apply in respect of all
 21 and enters into force before 30 June 1974, this Convention shall remain in force    territories for the international relations of which that Government is responsible.
 only until the date of entry into force of the new agreement.
                                                                                               (3) Any member may, at any time after its ratification, acceptance, approval,
        (2) The Council may recommend an amendment of this Convention to the            provisional application of or accession to this Convention, by notification to the
 members .                                                                              Government of the United States of America, declare that its rights and obligations
                                                                                        under this Convention shall apply in respect of one or more of the territories
        (3) The Council may fix a time within which each member shall notify the        regarding which it has made a declaration in accordance with paragraph ( 1 ) of this
 Government of the United States of America whether or not it accepts the amend­        Article.
 ment. The amendment shall become effective upon its acceptance by exporting
 members which hold two-thirds of the votes of the exporting members and by                     (4) Any member may, by giving notification of withdrawal to the Government
 importing members which hold two-thirds of the votes of the importing members.          of the United States of America, withdraw from this Convention separately m
     . (4) Any member which has not notified the Government of the United                respect of one or more of the territories for whose international relations it is
 States of America of its acceptance of an amendment by the date on which such           responsible .
amendment becomes effective may, after giving such written notice of withdrawal                 (5) When a territory to which this Convention extends under paragraphs (2)
 to the Government of the United States of America as the Council may require in         and (3) of this Article subsequently attains independence, the Government of that
each case, withdraw from this Convention at the end of the current crop year, but        territory may, within ninety days after the attainment of independence, declare by
shall not thereby be released from any obligations under this Convention which           notification to the Government of the United States of America that it has assumed
have not been discharged by the end of that crop year. Any such withdrawing              the rights and obligations of a party to this Convention.
member shall not be bound by the provisions of the amendment occasioning its                     (6) For the purposes of the redistribution of votes under Article 12, any
withdrawal. If any member satisfies the Council at its first meeting following the       change in the application of this Convention in accordance with this Article shall
effective date of the amendment that its acceptance could not be secured in time by      be regarded as a change in participation in this Convention in such a manner as
reason of constitutional or institutional difficulties and declares its intention to
apply the amendment provisionally pending acceptance of that amendment, the              may be appropriate to the circumstances .
Council may extend for such member the period fixed for acceptance until these
difficulties have been overcome.                                                                                                ARTICLE 29
       (5) If any member considers that its interests are prejudiced by operation of                            Notification by depositary Government
this Convention, it may state its case to the Council and the Council shall, within
thirty days, examine the matter. If the member concerned considers that notwith­                 The Government of the United States of America as the depositary Govern­
standing the Council's intervention its interests continue to be prejudiced, it may       ment shall notify all signatory and acceding Governments of each signature,
withdraw from this Convention at the end of any crop year by giving written notice        ratification, acceptance, approval, provisional application of, and accession to,
of withdrawal to the Government of the United States of America at least ninety           this Convention, as well as each notification and notice received under Article 1 1
days prior to the end of that crop year, but shall not, thereby, be released from         and each declaration and notification received under Article 28.
any obligations under this Convention which have not been discharged bv the end
oi that crop year.                                                                                                              ARTICLE 30
       (6) Any member which becomes a member State of the EEC during the                                            Certified copy of the Convention
currency of this Convention shall notify the Council, and the Council shall, within
!£lrtiL^yS' consider the matter with a view to negotiating with that member and                   As soon as possible after the definitive entry into force of this Convention, the
tne ttC an appropriate adjustment of their respective rights and obligations under         depositary Government shall send a certified copy of this Convention in the fcnglish,
 ---pagebreak---   French, Kussian and Spanish languages to the Secretary-General of the United                                              ANNEX A
 Nations for registration in accordance with Article 102 of the Charter of the United
 Nations. Any amendments to this Convention shall likewise be communicated.                                       Votes of exporting members
                                    ARTICLE 31
                                                                                                        Argentina           ..     ..      ..      ..       100
                     Relationship of Preamble to Convention                                             Australia . .       ..     . .      ..     ..       100
                                                                                                        Bulgaria . .        ..     ..       ..     ..         5
 197 This Convention includes the Preamble to the International Wheat Agreement,                        Canada      . .     . .
                                                                                                        European Economic Community
                                                                                                                                   . .      . .    . .
                                                                                                                                                   ..
                                                                                                                                                            280
                                                                                                                                                            100
                                                                                                        Greece      . .     . .    . .      . .    . .        5
                                                                                                        Kenya       ..      ..              ..     ..         5
                                                                                                        Mexico       . .    . .    . .      . .    . .        5
                                                                                                        Spain        ..     ..     ..       ..     ..         5
                                                                                                        Sweden . .          . .    . .      . .    . .       10
                                                                                                        United States of America            . .    . .      280
     IN WITNESS WHEREOF the undersigned, having been duly authorized                                    Union of Soviet Socialist Republics        ..       100
to this effect by their respective Governments have signed this Convention on the                       Uruguay . .         ..      ..      ..      ..        5
dates appearing opposite their signatures.
                                                                                                                                                          1,000
     The texts of this Convention in the English, French, Russian and Spanish
languages shall all be equally authentic, the originals being deposited with the
Government of the United States of America, which shall transmit a certified copy                                            ANNEX B
thereof to each signatory and acceding Government and to the Executive Secretary1
or the Council.
                                                                                                                  Votes of importing members
                                                                                      Algeria                                   14          Kuwait                   3
                                                                                      Austria                                    1          Lebanon                  9
                                                                                      Barbados                                   i          Libya                    5
                                                                                      Bolivia                                    5          Malta                    2
                                                                                      Brazil                                    71          Mauritius                2
                                                                                      Ceylon                                    17          Morocco                 10
                                                                                      China                                     19          Nigeria                  7
                                                                                      Colombia                                   8          Norway                  14
                                                                                      Costa Rica                                 3          Pakistan                16
                                                                                      Cuba                                       2          Panama                   2
                                                                                      Denmark                                    1          Peru                    25
                                                                                      Dominican Republic                         1          Portugal                18
                                                                                      Ecuador                                    3           Saudi Arabia           10
                                                                                      El Salvador                                2          South Africa            10
                                                                                      European Economic Community              152           Switzerland            16
                                                                                      Finland                                    2           Syria                   5
                                                                                      Guatemala                                  3          Tnnidad and Tobago       4
                                                                                      India                                     34          Tunisia                  5
                                                                                      Indonesia                                  7          Turkey                   4
                                                                                      Iran                                       2          United Arab Republic    65
                                                                                      Ireland                                    7           United Kingdom . .    183
                                                                                      Israel                                     5          Vatican City             1
                                                                                      Japan                                    178          Venezuela               29
                                                                                      Kingdom of the Netherlands'15              i
                                                                                      Korea, Republic of                        16                               1,000
                                                                                      * With respect to the interests of Netherlands Antilles and Surinam .
                                        18
                                                                                                                                   19
 ---pagebreak---         FOOD AU) CONVENTION , vn \
                                          ARTICLE 1
                                           Objective
         The objective ol this Convention is to carry out a food aid programme with
  the help of contributions lor the. benefit of developing countries .
                                          ARTICLE II
                                    International food aid
        ( 1 ) The countries parties to this Convention agree to contribute as food aid to
  the developing countries, wheat, coarse grains or products derived therefrom,
  suitable for human consumption and of an acceptable type and quality, or the cash
  equivalent
  below.
                 thereof, in the minimum annual amounts specified in paragraph (2)      w
        (2) The minimum annual contribution ofeach country party to this Convention
 is fixed as follows :
                                                           Metric tons
                         Argentina                             23.000
                         Australia                            225.000
                         Canada                               495,000
                         European Economic Community ..     1,035,000
                         Finland                               14.000
                         Japan                                225,000
                         Sweden                                35,000
                         Switzerland                           32 000
                         United States of America           1.890 000
       (3) For the purpose of the operation of this Convention, any country which
 has signed this Convention pursuant to paragraph (2) of Article VI or which has
 acceded to this Convention pursuant to paragraph (2) or (3) of Article VIII shall
 be deemed to be listed in paragraph (2) of Article II together with the minimum
 contribution of such country as determined in accordance with the relevant
provisions of Article VI or Article VIII .
       (4) The contribution of a country making the whole or part of its contribution
to the programme in the form of cash shall be calculated by evaluating the quantity
determined for that country (or that portion of the quantity not contributed in
grain) at US $1 -73 per bushel.
      (5) Food aid in the form of grain shall be supplied on the following terms :
      (a) sales for the currency of the importing country which is not transferable
             and is not convertible into currency or goods and services lor use by the
             member country* ;
      (,b ) a gift of grain or a monetary grant to be used to purchase grain for the
             importing country ; or
      (c) sales on credit with payment to be made in reasonable annual amounts over
             periods of twenty years or more and with interest at rates which are below
* Under exceptional circumstances an exemption ofnot more than 10 per cent may be granted.
                                              21
 ---pagebreak---             commercial rates prevailing in world markets,* on the understanding that                      is available, on its effects on food production in recipient countries. The
            food aid in the form of grains shall be supplied to the maximum extent                         Committee shall report as necessary.
            possible on the terms indicated in sub-paragraphs (a) and ( b) above.
                                                                                                      (5) For the purposes of paragraph (4) of this Article the Committee may
      (6) Grain purchases shall be made from participating countries .                         receive information from recipient countries and may consult with them.
      (7) In the use of grant funds, special regard shall be had to facilitating grain
exports of developing member countries . To this end priority shall be given so that                                                  ARTICLE IV
not less than 35 per cent of the cash contribution to purchase grain for food aid or                                          Administrative provisions
that part of such contribution required to purchase 200,000 metric tons of grain
shall be used to purchase grains produced in developing member countries .                           The Food Aid Committee as set up according to the provisions of Article III
                                                                                               shall use the services of the Secretariat of the International W heat Council for
      (8) Contributions in the form of grains shall be placed in f.o.b . forward               the performance of such administrative duties as the Committee may request,
position by donor countries .                                                                  including the processing and distribution of documentation and reports.
      (9) Countries parties to this Convention may, in respect of their contribution
to the food aid programme, specify a recipient country or countries .                                                                 ARTICLE V
      ( 10) Countries parties to this Convention may make their contribution                                                    Defaults and disputes
through an international organization or bilaterally. However, in accordance with
the recommendation made in paragraph (3) of resolution 2682 (XXV) of the                             In the case of a dispute concerning the interpretation or application of this
United Nations General Assembly, they shall give full consideration to the                     Convention or of a default in obligations under this Convention, the Food Aid
advantages of directing a greater proportion of food aid through multilateral
                                                                                               Committee shall meet and take appropriate action.
channels and shall place special emphasis on using the World Food Programme.
                                                                                                                                     ARTICLE VI
                                      ARTICLE in                                                                                       Signature
                                  Food Aid Committee                                                ( 1 ) This Convention shall be open for signature in Washington from 29 March
                                                                                               1971 until and including 3 May 1971 by the Governments of Argentina, Australia,
      ( 1 ) There shall be established a Food Aid Committee whose membership                   Canada, Finland, Japan, Sweden, Switzerland and the United States of America
shall consist of the countries listed in paragraph (2) of Article II of this Convention       and by the European Economic Community and its member States, provided that
 and of the other countries that become party to this Convention. The Committee               they sign both this Convention and the Wheat Trade Convention, 1971 .
 shall appoint a Chairman and a Vice-Chairman.
                                                                                                    (2) This Convention shall also be open for signature, on the same conditions,
       (2) The Committee may, when appropriate, invite representatives of the                 to countries signatories of the Food Aid Convention, 1967 which are not enumerated
 secretariats of other international organizations whose membership is limited to             in paragraph ( 1 ) of this Article, provided that their contribution is at least equal
 Governments that are also Members of the United Nations or its specialized agencies          to that which they agreed to make in the Food Aid Convention, 1967.
 to attend as observers .
                                                                                                                                    ARTICLE VII
       (3) The Committee shall :
       (a) receive regular reports from member countries on the amount, content,                                       Ratification, acceptance or approvai
             channelling and terms of their food aid contributions under this                       This Convention shall be subject to ratification, acceptance or approval by
             Convention ;                                                                     each signatory in accordance with its constitutional or institutional procedures,
       (b) keep under review the purchase of grains financed by cash contributions            provided that it also ratifies, accepts or approves the Wheat Trade Convention,
             with particular reference to the obligation in paragraph (7) of Article II       1971 . Instruments of ratification, acceptance, approval or conclusion shall be
             concerning purchase of grain from developing participating countries .           deposited with the Government of the United States of America not later than 17
                                                                                              June 1971 , except that the Food Aid Committee may grant one or more extensions
       (4) The Committee shall :                                                              of time to any signatory that has not deposited its instrument of ratification,
        (a) examine the way in which the obligations undertaken under the food aid
                                                                                              acceptance, approval or conclusion by that date.
             programme have been fulfilled ;
                                                                                                                                   ARTICLE VIII
        (ib) exchange information on a regular basis on the functioning of the food
                                                                                                                                       Accession
             aid arrangements under this Convention, in particular, where information
  * The credit sales agreement may provide for payment of up to 15 per cent of principal upon      ( 1 ) This Convention shall be open for accession by the European Economic
    delivery of tUe grain .                                                                   Community and its member States or by any other Government referred to in
 ---pagebreak---  Article VJ , provided the Government also accedes 10 the W heal Trade Convention ,              (2) II tins Convention        n<.t cniei imo km ^ n\ iwcorct.iiux* svhl - in. provi­
 1971 and provided further that in the case of Governments referred to in paragraph         sions of paragtaph ( 1 1 ot this Article, the Governments which by             Uuie ly.'l
(2) of Article VI their contribution is at least equal to that which they agreed to make    have deposited instruments of ratification, acceptance, approval, cone liision or
in the Food Aid Convention, 1967 . Instruments of accession under this paragraph           accession or declarations of provisional application may decide by mutual consent
shall be deposited not later than 17 June 1971 , except that the Food Aid Committee         that it shall enter into force among those Governments that have deposited instru-
may grant one or more extensions of time to any Government that has not deposited           TCnw-° ra^hcation, acceptance, approval, conclusion or accession, provided that
its instrument of accession by that date.                                                  the W heat Trade Convention, 1971 is in force, or they may take whatever other
                                                                                           action they consider the situation requires .
      (2) The Food Aid Committee may approve accession to this Convention, as
a donor, by the Government of any Member of the United Nations or its specialized                                               ARTICLE XI
agencies on such conditions as the Food Aid Committee considers appropriate.
                                                                                                                                   Duration
      (3) If any such Government, which is not referred to in Article VI, wishes to
apply for accession to this Convention between the close of the period fixed for                 This Convention shall be effective for a three-year period from the date of
signature and the entry into force of this Convention, the signatories of this             the entry into force of Article II of this Convention.
Convention may approve accession on such conditions as they consider appropriate.
Any such approval and conditions shall be as valid under this Convention as if this
action had been taken by the Food Aid Committee after the entry into force of this                                             ARTICLE XII
Convention.
                                                                                                                 Notification by depositary Government
      (4) Accession shall be effected by deposit of an instrument of accession with
the Government of the United States of America.                                                  The Government of the United States of America as the depositary Govern­
                                                                                           ment shall notify all signatory and acceding parties of each signature, ratification
                                    ARTICLE IX
                                                                                           acceptance,
                                                                                           Convention.
                                                                                                         approval, conclusion, provisional application of, and accession to this'
                               Provisional application
                                                                                                                              ARTICLE XIII
      The European Economic Community and its member States and the Govern­
ment ofany other country referred to in Article VI may deposit with the Government                                   Certified copy of the Convention
of the United States of America a declaration of provisional application of this
Convention, provided they also deposit a declaration of provisional application of              As soon as possible after the definitive entry into force of this Convention,
the Wheat Trade Convention, 1971 . Any other Government whose application for             the depositary Government shall send a certified copy of this Convention in the
accession is approved may also deposit with the Government of the United States           English, French, Russian and Spanish languages to the Secretary-General of the
of America a declaration of provisional application. The European Economic                United Nations for registration in accordance with Article 102 of the Charter of
Community and its member States as well as any Government depositing such a               the   United Nations. Any amendments to this Convention shall likewise be
                                                                                          communicated .
declaration shall provisionally apply this Convention and be provisionally regarded
as parties thereto.
                                                                                                                              ARTICLE XIV
                                     ARTICLE X                                                                  Relationship of Preamble to Convention
                                   Entry into force
                                                                                          1971ThlS C°nvention includes the Preamble to the International Wheat Agreement,
      ( 1 ) This Convention shall enter into force for the European Economic
Community and its member States and for those Governments that have deposited
instruments of ratification, acceptance,, approval, conclusion or accession as follows :
      (a) on 18 June 1971 with respect to all provisions other than Article II ; and
      (b) on 1 July 1971 with respect to Article II,
provided that the European Economic Community and its member States and all              m rhk r™ES? WHEREOF the undersigned, having been duly authorized
Governments listed in paragraph ( 1 ) of Article VI have deposited such instruments      to this effect by their respective Governments or authorities, have signed this
or a declaration of provisional application by 17 June 1971 and that the Wheat           convention on the dates appearing opposite their signature.
Trade Convention, 1971 is in force. For any other Government that deposits an            ia„„ IhC tC5u ° n£ u1S Cony,ention in the English, French, Russian and Spanish
instrument of ratification, acceptance, approval, conclusion or accession after the         nguages shall all be equally authentic. The originals shall be deposited in the
entry into force of the Convention, this Convention shall enter into force on the date   archives of the Government of the United States of America, which shall transmit
of such deposit.                                                                         certified copies thereof to each signatory and acceding party.
                                             24                                                                                      25
 ---pagebreak---                                   APPENDIX
                          INTERPRETATIVE NOTES
              (agreed at the United Nations Wheat Conference, 1971)
Article II–International Food Aid
     The Conference declared that the member countries should take the greatest
care in order to ensure that the fulfilment of the food aid obligations under the
Food Aid Convention, 1971 should not introduce interference with free and fair
competition in shipping.
Article II–Paragraph (4)
     Member countries, unless making available as food aid domestic grain suitable
for human consumption and of an acceptable type and quality, shall evaluate their
quantitative commitments under paragraph (2), or that part of their quantitative
commitments not contributed in domestic grain, on the basis of US$1 -73 per
bushel and shall make available grains or cash in relation to the value so determined.
 ---pagebreak--- RULES OF PROCEDURE
        under the
Food Aid Convention, 1971
 ---pagebreak---                     FOOD AID CONVENTION, 1971
                        RULES OF PROCEDURE
                                         RULE 1
                                        Définitions
 Article II
        For the purposes ofthe Food Aid Convention and/or these Rules ofProcedure:
       (a) coarse grains" means barley, maize, oats, rye and sorghum subiect to
             the provisions ofparagraph (1) ofArticle II ;             g ' SUb,ect t0
       (b) WheTcomdl•Ctary" mCanS thC Executive Secretary ofthe International
       (c) "f.o.b." means free on board;
      (d) grain" or "grains", unless otherwise stated, means wheat coarse grains
            ofJSdfll,            therefr0m' sub>ect t0 ** Provisions of paragraph (1)
      (e) i^mTmher                        the Eur0pean Economic Community and
            0) ofStkle} VIJ and /are Parties
                                         yCrnme"tS  *hich are either listed in paragraph
                                             to the Convention or which have acceded
            thereto under the provisions of Article VIII •
      (/) metric ton" means 1,000 kilogrammes, or,
             (1) in the case ofwheat 36-74371 bushels,
           (ii) in the case of coarse grains the equivalent in bushels of 1,000 kilo­
                 grammes according to the standards of weight and measurement
                 originates; ^ ^ ^ Whkh the COarse g-inTq~
     (g) "year" means the period from 1 July to 30 Tune.
                                       RULE 2
                                      Fulfilment
Article II
     LLThl obllgarions of a member country to contribute food aid „nHm
     (i) that commitments fi
          or the international
          Programme) before the end of that year;                                     °
    (ii) that the shipments ofgrain be made to the maximum extent feasible within
          nnf ,rrf£Ut m 3ny eV!m the Wh0le annual contribution mus! be shTpned
         not later than six months after the end of that year;                  snipped
                                          45
 ---pagebreak---                                                                                                                                         RULE 4
     <*) Each member country ^                                     ^^'^eVant^ter-                                             Reports by the Secretariat
conditions established under t                 t0 its contribution notwithstanding the          Article III
                                           by the receiving countries or the imemattonal             The Executive Secretary shall circulate to members of the Committee the
organizations concerned.                                                                        information reported under paragraph (a) of Rule 3 as soon as possible after it is
                                                                                                received.
      (A When the contribution is in the form of cash:
                            r u ^ocVi ic ^prermined in accordance with paragraph (4,
       (i) the amount of the cash 's detern                       "bushel" shall be regardec                                            RULE 5
            ï                                    S M ÎMJ p. bushe. . envient                                                    Report on Performance
            tr> ITS S63-56662 per metric ton ;                                                  Article III
                                                                                                     As soon as possible after 1 October, the Executive Secretary shall prepare
                                                                                                for consideration by the Committee at its autumn session a draft report on the
                             affecS SJtf the contribution calculated in accordance              performance of member countries in relation to their obligations in respect of the
                                                                                                previous year. The report shall be based on reports made by member countries
             with sub -paragraph (i) above.                                                     under Rule 3 .
       (J) When the contribution is in the forjn, rfgrain P°f0^S™ersion
 against the member country si tonnage o g                CQnsisting 0f mixtures of grain and                                            RULE 6
 used in the transacuon. In the case of p                  prociuct shall be counted towards                                  Designated representatives
  non-grain items the grain c                                  Ac case of wheat flour, if the
  the fulfilment of the membe,                              Salable, seventy-two units by       Article III
  rate of conversion used in the tra                    equivalent to one hundred units by           Each member of the Food Aid Committee shall designate a representative
                                                                                                resident at the seat of the International Wheat Council to whom notices and other
                                                                                                communications related to the work of the Food Aid Committee shall normally
                                                                                                be addressed. Other arrangements may be adopted by any member of the Committee
        («) In exceptional circumstances                                                        in agreement with the Executive Secretary.
   of Article II may be made in the form o ri ,                     ^ an(j prl0r t0 each opera-
                                                      inform the Food Aid Committee of the
                                                                                                                                         RULE 7
   Sons for, and the terms of, the supply in question.                                                                   The Chairman and Vice-Chairman
                                             RULE 3                                             Article III
                                Reports by member countries                                          (a) At the statutory session held in the second half of each year, the Committee
    Article ///
                                                                                                shall appoint a Chairman and a Vice-Chairman for the following year.
          Each member country shall report to the Executive Secretary :                              (ib) In addition to exercising the powers conferred upon him by the Rules of
          W1 anTagreement,      as' soon as bas bee» conclud.
                the7 Convention .0 a recp.em countrs o.
                                                                                             ^
                                                                                        conKnt,
                                                                                                Procedure the duties of the Chairman shall be :
                                                                                                        (i) to preside at meetings of the Committee ;
                                                                                                       (ii) to declare the opening and closing of each meeting and of each session of
                                                                                                            the Committee ;
                                                                                                     (iii) to submit the draft agenda to the Committee for adoption at the beginning
                                                                                                            of each session ;
                 information as may be required by the Committee ,                                    (iv) to direct the discussions and to ensure observance ofthe Rules of Procedure ;
                                                                                                       (v) to accord the right to speak and, subject to paragraph (c) of Rule 10, to
                                                                                                            decide all questions of order ;
                                                                                                      (vi) to put questions and announce décisions.
                  and of the way they will be fulfilled ,                                             (c) If, for any reason, the Chairman is absent from a meeting or any part
                                                                                                thereof, or is otherwise temporarily unable to fill his office, the Vice-Chairman
                                                                                                shall act as Chairman . In the absence of the Chairman and the Vice-Chairman, the
                                                                                                Committee shall appoint a temporary Chairman .
                  lulyljune year .
 ---pagebreak---        (d) If the Chairman of the Committee is unable to contmue to fill his office,              (d) Unless the Committee decides otherwise, the Executive Secretary shall
 his place shall be taken by the Vice-Chairman pending the appointment of a new             prepare summary minutes of the proceedings of the meetings of the Committee
 Chairman by the Committee.                                                                 which shall be circulated as soon as possible to members of the Committee. Any
      (e) The Vice-Chairman, when acting as Chairman of the Committee, or the               corrections which a member of the Committee wishes to propose shall reach the
 temporary Chairman, shall have the same powers and duties as the Chairman.                 Executive Secretary within 30 working days of the date of circulation, excluding
                                                                                            that date.
                                       RULE 8                                                      (i) If no corrections are received the minutes shall be considered as approved.
                      Sessions, other meetings and quorum                                         (ii) If corrections are received the Executive Secretary shall circulate the
Article III
                                                                                                       revisions to members of the Committee. Subject to any further comment
                                                                                                       by any member of the Committee within a period of30 working days of the
      (a) The Food Aid Committee shall meet at least twice a year in conjunction                       circulation of these revisions, the revised minutes shall be considered as
with the statutory sessions of the International Wheat Council.                                        approved. They shall then be brought before the next session of the
      (b) The Committee shall meet at such other times as the Chairman may decide                      Committee for confirmation of approval.
or at the request of three member countries.
                                                                                                                                   RULE 11
      (c) The presence of delegates representing two-thirds of the membership                                                      Décisions
of the Committee shall be necessary to constitute a quorum at any meeting of the            Article III
Committee.
                                                                                                 Decisions on matters under discussion in the Food Aid Committee shall be
                                       RULE 9                                              reached on a consensus basis .*
                     Sessions : notification and draft agenda
                                                                                                                                   RULE 12
Article III
                                                                                                                   Records of the Food Aid Committee
      (a) The draft agenda for each session of the Food Aid Committee shall be             Article III
prepared by the Executive Secretary and approved by the Chairman of the Com­
mittee, and shall include any items submitted by members of the Committee.                       (a) The records of the Food Aid Committee shall be in the English and, as
     (ib) The Executive Secretary shall send to members of the Food Aid Committee
                                                                                           appropriate, in the French and Spanish languages.
a written notification of the date of the session of the Committee accompanied                   (b) Summary minutes and documents circulated to the Committee shall be
by the draft agenda. Such notification shall be sent not less than 2 1 days and, whenever  "Restricted" and shall be so marked. In this context, "Restricted" means, unless
possible, 30 days in advance of a session. When a session is convened in accordance        the Committee decides otherwise, "restricted to members ofthe Food Aid Committee
with paragraph (b) of Rule 8, or in the opinion of the Chairman there are reasons         and representatives of the secretariats of international organizations referred to in
of urgency which make it necessary to hold the first meeting of the session before        paragraph (2) of Article III invited to attend its meetings".
the expiry of 21 days, a shorter period of notice may be given which shall in no case
be less than 10 days.                                                                           (c) The following declassification procedure shall apply :
                                                                                                  (i) minutes of sessions and meetings of the Committee shall remain
     (c) After receiving notification of a session, members of the Committee shall,                   "Restricted" for ten years, but they may be made accessible to
as soon as possible, notify the Executive Secretary in writing of the names of their                  responsible persons after the lapse of five years from their date of issue,
representatives.                                                                                      on condition that no part of the minutes may be quoted ;
                                      RULE 10                                                   (ii) other documents shall cease to be "Restricted" three years after the expiry
                                                                                                      of the Convention to which they relate.
                              Procedure at meetings
Article III                                                                                                                        RULE 13
     (a) Meetings of the Food Aid Committee shall be held in private unless the                                    Amendment or suspension of Rules
Committee decides otherwise, and its proceedings shall be confidential.                   Article III
     (b) Proceedings at meetings of the Committee shall normally be conducted                   Any proposal to amend or suspend any ofthe Rules ofProcedure with temporary
in English, French or Spanish and the Executive Secretary shall make such arrange­        effect may be decided by the Committee. Notice of a proposal permanently to
ments for interpretation as may be necessary.                                             amend or suspend any of the Rules of Procedure shall be circulated by the Executive
     (e) During the discussion of any matter, any delegate may raise a point of ■
order and the Chairman shall immediately state his ruling which shall stand unless            Consensus means that "agreement" on a matter under discussion by the Committee
the Committee decides otherwise.                                                            shall be understood to have been reached if the conclusion of the Committee is not disputed
                                                                                            by any member of the Committee having a direct interest in the matter.
                                           48                                                                                          49
 ---pagebreak--- Secretary not less than 14 days before the session of the Committee at which the
proposal is to be considered.
                                       RULE 14
                                     Publications
Article III
     The Executive Secretary shall arrange for the publication of such documents
and the release of such press notices as the Food Aid Committee may decide.
                                       RULE 15
                                      Secrétariat
Article IV
     The Executive Secretary shall carry out the directions of the Food Aid Com­
mittee and shall perform such duties as are laid down for him in the Rules of
Procedure.
                                       RULE 16
                                       Accession
Article VIII
     (a) Unless the Committee decides otherwise, the conditions for accession of a
government under the provisions of paragraph (2) of Article VIII of the Food Aid
Convention, 1971 shall be as follows :
      (i) simultaneous accession ofthat government to the Wheat Trade Convention,
          1971 if not already a party to it ;
     (ii) an undertaking by the acceding member country to make an adequate and
          regular net contribution for the duration of the Convention, as food aid
          to developing countries, of domestic grain, or the products derived there-
          from, or the cash equivalent thereof, in accordance with the procedure
          laid down in the provisions of paragraphs (4) to ( 10) of Article II.
     (b) In calculating the minimum annual contribution which is to be made by
an acceding member country, the Committee shall take into account all factors
which appear relevant to it including, in particular, the gross national product
and the role of the acceding member country in the production and consumption