CELEX: 21974A1207(01)
Language: en
Date: 1974-10-02 00:00:00
Title: Agreement between the European Economic Community and the Arab Republic of Egypt on the supply of flour of common wheat as food aid

7. 12. 74                           Official Journal of the European Communities                       No L 328/37
                                                    AGREEMENT
             between the European Economic Community and the Arab Republic of Egypt on the
                                    supply of flour of common wheat as food aid
             THE COUNCIL OF THE EUROPEAN COMMUNITIES,
             of the one part,
              THE GOVERNMENT OF THE ARAB REPUBLIC OF EGYPT,
             of the other part,
              HAVE DECIDED to conclude this Agreement, and to this end have designated as their
             Plenipotentiaries:
              THE COUNCIL OF THE EUROPEAN COMMUNITIES :
              THE GOVERNMENT OF THE ARAB REPUBLIC OF EGYPT:
              WHO HAVE AGREED AS FOLLOWS :
                         Article I                             transport by sea shall not be prejudicial to the free
                                                               play of fair competition. Any problems arising in
As part of its food-aid programme (cereals) for 1973/          this connection shall be the subject of consultations
74, the European Economic Community, hereinafter               under Article VIII .
referred to as the 'Community', shall supply the
Arab Republic of Egypt, hereinafter referred to as
the 'country of destination', by way of gift, with
20 000 metric tons of common wheat, in the form of                                   Article IV
 13 245 metric tons of flour of common wheat.
                                                               The country of destination undertakes to use the
                                                               product received as aid for purposes of consumption
                                                               and to apply, for the sale of the product on its
                         Article 11                            market, the prices normally charged on that market
                                                               for products of comparable quality.
Deliveries will be made fob in new cotton bags of a
 net weight of 67 485 kg each, in accordance with the          The proceeds from this sale shall be paid into a
 detailed rules set out in the Annex which is an
                                                               special account at the central bank of that country
integral part of this Agreement.                               and allocated to the financing of one or more
                                                               development schemes in accordance with the
                                                               procedure to be agreed between the recipient country
                        Article III                            and the Community.
The country of destination undertakes to make all
necessary arrangements for the transport and                                          Article V
insurance of the product from point of delivery to
places of destination .
                                                               The Contracting Parties undertake to implement this
                                                               Agreement in such a way as to avoid any prejudice
 It undertakes to exercise the greatest possible care to       to the normal structure of domestic production and
ensure that the tendering arrangements for the                 international trade. To this end they shall take any
 ---pagebreak--- No L 328 / 38                      Official Journal of the European Communities                                   7. 12. 74
measures required to ensure that aid supplies are in              quantity and any observations as to the quality
addition to, and do not replace, commercial                       of the product discharged ; date on which
transactions which might reasonably be expected in                discharge was completed; costs of sea transport
the absence of such supplies. In particular, the                   and of insurance relating thereto ;
country of destination undertakes to import
commercially from whatever source between 1 July              2 . every three months until the quantities received
1974 and 30 June . 1975 a minimum quantity of                      as aid have been fully used : quantities sold, how
2 122 300 metric tons of common wheat, or its                      they have been sold, selling prices ; normal selling
equivalent in flour of common wheat.                               costs on the market of the country of destination ;
                                                                   insurance costs and, where appropriate, transport
                                                                   costs from the port of discharge to the places of
                                                                   destination ;
                        Article VI
                                                              3 . on 15 January every year until the special
The country of destination shall take all appropriate              account has been fully used :
measures to prevent :
                                                                   ( a ) state of this account ( deposits and withdrawals)
— the re-export of the product received as aid and                       on 31 December of the preceding year;
    of products resulting from such supplies ;
                                                                   (b ) progress achieved in the project or projects,
— the export, commercially or otherwise, within six                      with an indication of the total amount of
    months of the last delivery, either of local                         financing carried out at that stage.
    produce of the same nature as that received as
    aid or of any products resulting from it.
                                                                                          Article VU1
                       Article VII                            At the request of either of them, the Contracting
                                                              Parties shall consult each other on any questions
The country of destination undertakes to inform the           concerning the implementation of this Agreement.
Community of the mode of implementation of this
Agreement. To this end it shall provide the
Commission of the European Communities with the                                           Article IX
following information :
                                                              This Agreement shall be drawn up in duplicate in
1 . immediately after the discharge of each cargo :           the Danish, Dutch, English, French, German and
    port and date of arrival of vessel ; nature,              Italian languages, each of these texts being authentic.
 ---pagebreak--- 7 . 12. 74                            Official Journal of the European Communities                            No L 328 /39
                                                           ANNEX
                                                   DELIVERY PROCEDURES
                        CHAPTER I                               The charges and the arrangements relating to demurrage
                                                                laid down in the contract concluded between the country
                     General provisions                         of destination and the carrier must have previously been
                                                                agreed by the country of destination and the agent of the
                           Article 1                            Community.
Delivery shall be effected and all risk shall pass from the     The other costs referred to in the first paragraph shall be
 Community to the country of destination at the moment          refunded by the Community only if they have been paid
at which the goods are put down at the point of                 by the country of destination with the approval of the
exportation named by the Commission of the European              Community.
Communities at the berth specified by the country of
 destination or its agent referred to in Article 3 and under
                                                                                           Article 6
the terms specified in this Annex. Without prejudice to
Articles 8 and 9 the Community shall bear all costs prior
to delivery and the country of destination those after          "Where it is impossible for the Community to supply all
delivery.                                                       or part of the goods on the date and within the time
                                                                limits provided for in Article 7, the agents of the
                                                                Community and of the country of destination may,
                           Article 2                            without prejudice* to Article 5, agree on a new date and a
                                                                new time limit fort the delivery of all the goods or of the
                                                                undelivered part thereof.
 On delivery of the goods, a tolerance of 5 % less than
 the quantity to be supplied in accordance with Article 1
 of the Agreement is permitted.
                                                                                        CHAPTER III
                           Article 3
                                                                         Obligations of the country of destination
For the purpose of implementing the provisions of this                                     Article 7
Annex the Community shall appoint — if necessary for
each consignment — an agent whose name and address it
shall make known to the country of destination                  After contacting the Community, the country of
immediately following his appointment. For each port of         destination shall procure, to transport all the quantities
shipment the country of destination shall appoint an            provided for in Article I of the Agreement, one or more
agent whose name and address it shall make known to             vessels of dimensions corresponding to the normal
the Community with all dispatch and if possible before          capacity of the port of shipment; these vessels must be
the appointment of the agent of the Community.                  ready for loading on a date falling within the period
                                                                referred to in Article 4.
                           Article 4                            The agent of the country of destination shall inform the
                                                                Community of this date and of the date for
Before implementing the procedure for appointing the            commencement of delivery as soon as he knows them, if
agent of the Community referred to in Article 3, the            possible 20 clear days in advance and in any case 10
Commission of the European Communities and the                  clear days before the date for commencement of delivery.
country of destination shall establish by joint agreement
the period during which delivery must begin.                    He shall establish with the agent of the Community the
                                                                schedule according to which delivery shall take place.
                                                                                          Article 8
                        CHAPTER II
                                                                Where the country of destination is unable to begin
              Obligations of the Community                      loading on the date provided for in the first paragraph of
                                                                Article 7, the agent of the country of destination shall
                           Article 5                            inform the agent of the Community without delay.
Where the Community is not in a position to carry out           In this event the agents of the Community and of the
delivery on the date, and, if applicable, according to the      country of destination may agree on a new date for the
schedule laid down in Article 7, all costs arising for the      commencement of delivery and, if applicable, a new
country of destination — for example, demurrage, void           schedule. The costs arising from the delay in loading
freight and dead freight — shall be borne by the                shall in all cases except force majeure be borne by the
Community.                                                      country of destination.
 ---pagebreak--- No L 328 /40                       Official Journal of the European Communities                                7 . 12 . 74
Should the new date provided for in the second               In the latter case the Community may consider that it has
paragraph be more than 30 clear days after the date for      discharged its commitment to the country of destination
loading provided for in the first paragraph of Article 7,    under Article I of this Agreement and shall bear the costs
the Community may dispose of the goods without               resulting from renunciation.
prejudice to its commitment under Article I of this
Agreement.                                                   In any event, after an interval of 15 clear days and in the
                                                             absence of any notice on the part of the country of
                                                             destination, renunciation shall be deemed to have taken
                         Article 9                            place.
Where the quantity made available for loading on a
                                                                                        Article 10
vessel cannot be loaded on board in its entirety, the
country of destination shall inform the Community as
soon as possible, and no later than 15 clear days after      Upon delivery of the goods, the country of destination
loading has been completed, whether it intends to accept     shall hand over to the authorized agent of the
or to renounce the balance.                                  Community a certificate of acceptance which shall set
                                                             out the port of shipment, date of acceptance and the
                                                              nature and quantity of the goods accepted, together with
In the former case the second and third paragraphs of         any comments on the quality of the goods. A copy of the
Article 8 shall apply to the balance, if delivery has not    certificate  shall  be  sent to    the Commission    of the
yet taken place.                                              European Communities.
              Information on the signing of the Agreement between the European Economic
                      Community and the Arab Republic of Egypt on the supply of food aid
              The Agreement between the European Economic Community and Egypt on the supply
              of flour of common wheat as food aid, which the Council decided to conclude on
              2 October 1974, was signed in Brussels on 3 October 1974, on behalf of the Council
              of the European Communities by :
              Mr Etienne Burin des Roziers, Ambassador Extraordinary and Plenipotentiary, Chairman
              of the Permanent Representatives Committee, and
              Mr Hans-Broder Krohn, Director-General for Development and Cooperation of the
              Commission of the European Communities ,
              and on behalf of the Government of Egypt by :
              Mr Aly Hamdy Hussein, Ambassador Extraordinary and Plenipotentiary, Head of the
              Mission of Egypt to the European Economic Community.