CELEX: 51970PC0273
Language: en
Date: 1970-03-12
Title: AGREEMEMT BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE GOVERNMENT OF CEYLON ON THE SUPPLY OF FLOUR OF WHEAT OTHER THAN DURUM AS FOOD AID

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (70) 273
Vol. 1970/0042
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
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 ---pagebreak---    EUROPEAN              ECONOMIC           flOMMUNITY
                                                   COI :( 70 ) 273 final
                                                   Bruxelles , 12/3/1970
                                    AGREEMEMT
                      BETWEEN THE EUROPEAN ECONOMIC COMMUNITY
                             MD THE GOVERNMENT OF CEYLON
                 OK THE SUPPLY OF FLOUR OF WHEAT OTHER THAN DURUM
                                   AS FOOD AID
C0":I(70 ) 273 final
 ---pagebreak---                             - 2 -
THE COUNCIL OF THE EUROPEAN COMMUNITIES, on the sne hand, and
THE GOVERNMENT OF CEYLON, on the . ether hand,
HAVE DECIDED to conclude the present Agreement and have
f®r this purpsse , appointed as their plenipotentiaries :
THE COUNCIL OF THE EUROPEAN COMMUNITIES :
THE GOVERNMENT OF CEYLON :
WHO HAVE AGREED as follows s
 ---pagebreak---                                - 3 -
                            ARTICLE I
       Under its food, aid programme for cereals for the year 1969/ 1970,
the European Economic Community shall , in accordance with the decision
taken by the Council on 10 - 11 November 1969» make the government of
Ceylon a gift «f the equivalent of 14.000 tons of wheat other than
durum ( hereinafter referred to as "wheat "), to which the Member States
of the European Economic Community shall contribute as follows :
- the Eangdom of Belgium                    1.000 tons
- the Fédéral Eepublic of Germany           4»000 tons
- the Franch Eepublic                       4.000 tons
- the Italian Eepublic                      4.000 tons
- the Kingdom of the Uetherlands            1.000 tons
       The total of 14.000 tons of wheat shall be supplied in the form
of 9*272 tons of flour *
       Deliveries shall be made f.o.b . Community ports in jute sacks
of gross weight 68-038 kg ( 150 lbs )
   1
       The Commission of the European Communities shall inform    the
government of Ceylon in good time , by letter , telex or telegram , of the
ports of shipment , the quantities , the dates of availability at the
said ports , and the daily loading rate .
       The responsibilities of the European Economic Community and the
government of Ceyl®n with regard to shipment and to taking delivery
f.o.b . respectively are set out in the Annex, which forms an integral
part of the present Agreement .
 ---pagebreak---                           ARTICLE II
      The government "of Ceylon undertakes to make all necessary arrange­
ments for transporting - the floUJj from the ports of shipment to its
destination .        '        ...    .
      It undertakes to exercise the. greatest possible care to ensure
that the tendering arrangements for the transport by sea are not preju­
dicial to the free play of fair c@mpetition . Any problems arising in
this connection shall be the subject of consultations tinder Article VIII
of the present Agreement ,
                           ARTICLE .III .
      The government of Ceylon undertakes t® use for consumption purposes
the flour that is supplied as aid . and to apply to sales of this flour
on its market the prices normally ruling on this market for products of
comparable quality.
      The proceeds of these sales , less sea freight charges and normal
marketing costs on the Ceylonese market , shall be paid int® a special
account intended to cover expenditure incurred by the government of
Ceylon in connection with the financing of development projects .
 ---pagebreak---                              - 5 -
                         ARTICLE IV
      The Contracting Parties undertake to implement the present
Agreement in such a way as to av«id prejudicing the n®rmal structure
of production and international trade .   To this end , they shall take
the necessary steps to ensure that supplies made available as aid
shall be additional to , and not in lieu of , the commercial operations
which could reasonably have Wen expected in the absence of such
supplies .
                          ARTICLE V
      The government of Ceylon shall take all necessary steps to prevent
the re-exportation of the flour received as aid , as well as the expor­
tation , commercial or otherwise , within a period of six months from
the date of ths last delivery^ of locally grown wheat of the same type
as that used in making the fl©ur received as aid , and of products of
the first processing stage obtained from this wheat .
 ---pagebreak---                          ARTICLE VI '
k'
       The government of Ceylon undertakes to keep the European Economic
 Community informed on the conditions of implementation of the present
Agreement .  To this end , it shall communicate the following information
to the Commission of the Baropean Communities :
1 . Transport : ports and dates of arrival of vessels ; nature , quantity
    and quality of the produce unloaded $ the date on which unloading
    is completed ;
2. Marketing : quantities sold $ method of marketing | selling price ;
3 « Situation with regard to the special account set up with the
    proceeds ©f the sale , in local currency, of the flour supplied as
    aid i
4* Projects financed from the special account ; relative importance
    of these funds in the overall financing of projects .
 ---pagebreak---                           ARTICLE VII
       The information referred, to in article "VI shall "be communicated
within the following time-limits :
- With regard to transport : not more than 30 days after the unloading
  of each cargo ;
                                 • '"..s.»' , ,. v
- With regard to other information : a report on the situation at 31
  December each year shall be communioated before 15 January ®f the
  following year , until such time as the special account has been
  completely liquidated.
                          ARTICLE VIII
       At the request of any one amongst them, the Centractmg Parties
shall consult on all matters concerning the application of the present
Agreement .
                          ARTICLE IX
       The present Agreement is drawn up in duplicate zn the German ,
French , Italian ^ Dutch and Siglish languages , each of these texts
being equally authentic .
 ---pagebreak---                                 - 8 -
                             ÂNÎJÏÏX
                 CONDITIONS APPLICABLE T.O THE EMDING OVER
                   OP THE FLOUR AT TH3 PORTS OF SHIPMMT
       To ensure the smooth operation of the Agreement and in particular
of Article I thereof , the Contracting Parties have agreed as felloxs :
                                 ARTICLE I
       Except as otherwise provided in Artie " 3 3 » sixth paragraph ,
delivery will be deemed to he effected at the moment at which the
goods have effectively passed the ship 's rail at the port of shipment ;
all costs of stowage and securing shall be borne by the government of
Ceylon .                      v
                                 ARTICLE 2
       Except as otherwise provided in Article 3, sixth paragraph , risks
shall pass    from the European Economic Community to the gavernment of
Ceylon at the moment at which the goods have effectively passed the
ship 's rail at the port of shipment .
                                                      I
 ---pagebreak---                             AETICLE 3
       The gsvernment ©f Ceylon shall procure and notify to the European
Economic Community, in good time , the vessels which are to ship the
                              ' ··· '     ·                                  ί
goods , so that the loading' dates indicated in accordance with Article I
of the Agreement may "be respected.
       The vessel is to "be named "by the government of Ceylon it least 7
clear days prior to the estimated date of arrival in porta     The government
of Ceylon shall "be responsible for any consequences arising either from
failure to name the vessel or from delay in doing so *
       The government of Ceylon shall insert in the charterparty a clause
requiring the captain to inform . the European Economic Community at least
72 hours in advance of the vessel 's estimated date of arrival in port .
       The goods shall be held at the disposal of the government of Ceylon
in the port indicated from the date on which the ship is declared ready
for loading .  In the event of the European Economic Community not placing
the goods at the disposal »f the vessel in good time , any consequences
resulting from this , in particular demurrage and/®r dead freight , shall
be a charge on the European Economic Community .
 ---pagebreak---                            - 10 -
       Should ther be a delay in the arrival of the vessel named by
the Government of Ceylon at the port of shipment , or should it prove
impossible for it to load , and should this delay prevent loading within
the time-limits indicated in accordance with Article I of the Agreement ,
the goods shall be held at the expense , risk and peril of the government
of Ceylon .                     . ..   "
       Should the government of Ceylon fail to provide a vessel of suitable
tonnage within the time-limit indicated in accordance with Article I
of the Agreement , it shall be regarded as being in default unless it
notifies the Burspean Economic Community by telegram, not later than
the last day of the period fixed for delivery , that it is seeking an
extension ©f this period .  "Where such an extension is sought , the
Biropean Economic Community shall hold the goods on behalf of the
government of Ceylon , expenses resulting from this being borne by the
latter .
       The government ef Ceylon shall be responsible for any consequences
resulting from the fact that the dimensions of a vessel supplied by
it do not correspond to the leading pessibilities of the port of shipment .
 ---pagebreak---                            ARTICLE 4
      The tolerance ©n shipment of the quantities notified, in accordance
with Article I of the Agreement shall be 5 i°i although the total
quantity of 9*272 tons shall in no case be exceeded.
      If , however , the quantity made available for loading on a given
vessel cannot be put on board in its entirety because of circumstances
beyond the control of the European Economic Community , the balance
which could not be put on board within the specified time-limits shall
be stored at the expense of the government of Ceylon and shipped on the
next vessel .
      If the government of Ceylon informs the European Economic Community
within a period of 15 clear days that it will not take delivery of this
balance , the handling and storing expenses incurred shall be borne by
the government of Ceylon until such time as it gives notice that it
gives up this balance .
      In this event , the European Economic Community may consider that
it has discharged its commitments to the government of Ceylon.
 ---pagebreak---                             - 12 -
                          ARTICLE 5
      Once the goods are on "board the vessel , the European Bc©nomio
Community shall notify the government of Ceylon without delay of the
date of loading, the quantity and quality loaded , noted on loading
and mentioned in the vessel 's hill of lading .
                          ARTICLE 6
      All expenses incurred subsequent to delivery of the goods once
these have effectively passed the ship 's rail , shall "be borne by
the government of Ceylon#
                        ARTICLE 7
      The Contracting Parties reserve the right to nominate one or
more agents to execute the Agreement *
      To deal with any eventualities , the government of Ceylon shall
nominate a representative in each port of shipment .