CELEX: 51995PC0280
Language: en
Date: 1995-06-29
Title: Proposal for a COUNCIL DECISION on the signing of the Grains Trade Convention, 1995, and the Food Aid Convention, 1995, constituting the International Grains Agreement, 1995, and the deposit of a declaration of provisional application af those Conventions

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                  Brussels, 29.06.1995
                                                 COM(95) 280 final
                                                 95/0157 (ACC)
                                  Proposal for a
                              COUNCIL DECISION
on the signing of the Grains Trade Convention, 1995, and the Food Aid Convention,
  1995, constituting the International Grains Agreement, 1995, and the deposit of a
             declaration of provisional application of those Conventions
                         (presented by the Commission)
 ---pagebreak---  ---pagebreak---                           EXPLANATORY MEMORANDUM
1.    The International Wheat Agreement, 1949 was revised, renewed, updated and
      extended several times, resulting in the conclusion of the International Wheat
      Agreement, 1986.
      The International Wheat Agreement, 1986, comprising the Wheat Trade
      Convention, 1986, and the Food Aid Convention, 1986, as extended, expires on
      30 June 1995.
2.    The signatories to the present Agreement have agreed that the International Wheat
      Agreement, 1986, should be updated and entitled the International Grains
      Agreement, 1995 and that it should comprise two distinct legal instruments:
      (a)      the Grains Trade Convention, 1995, and
      (b)      the Food Aid Convention, 1995.
      One or both of the two Agreements, as agreed, will be presented for the signature
      and ratification, acceptance or approval of the governments (including the
      European Community) referred to in the Annex (as regards the Grains Trade
      Convention) and of interested governments (as regards the Food Aid Convention)
      in accordance with their constitutional or institutional procedures.
3.    The text of the two legal instruments was adopted at a meeting and at a
      conference of governments, organized by the International Wheat Council on 6
      and 7 December 1994, in which the Community participated.
The new Agreement differs from the previous Agreement in three ways:
               the Wheat Convention is extended to all cereals and becomes the Grains
               Trade Convention,
               the basis for the calculation of votes and therefore of contributions to the
                administrative budget has been reviewed and will be regularly adjusted to
               take account of developments in trade,
                the rules of procedure have been updated.
4.     The new International Grains Agreement, comprising the two legal acts, will be
       open for signature by governments wishing to become members of the Agreement
       at the headquarters of the United Nations Organization in New York from 1 May
       to 30 June 1995 inclusive.
 ---pagebreak---        During that period, the governments signing the Agreements must deposit their
       instruments of ratification, acceptance or approval at the headquarters of the
       United Nations Organization in New York. Signatories may, however, be granted
       an extension of the time limit. They may also deposit a declaration of provisional
       application to ensure application of the Agreement on 1 July 1995.
5.     A governmental conference will take place as soon as possible after 30 June 1995
       to determine whether the conditions necessary for the entry into force of the
       Agreement on 1 July 1995 have been fulfilled. For the Grains Trade Convention
       to enter into force automatically on that date, governments holding at least 88%
       of the votes must have deposited an instrument of ratification, acceptance,
       approval, accession or provisional application before 30 June 1995. For the Food
       Aid Convention, the figure is 75%.
       Pursuant to Article 26 of the Grains Trade Convention and Article XIX of the
       Food Aid Convention, all signatories may deposit a declaration of provisional
       application. It is proposed that the Community sign the Agreement and avail itself
       of the possibility of depositing a declaration of provisional application, since it
       will probably be impossible to meet the deadline of 30 June 1995 given that the
       European Parliament must be consulted before the Agreement can be concluded.
       The Member States are also requested to become signatories to the Food Aid
       Convention in view of the food aid measures provided for, although the
       simultaneous accession of the Community and the Member States is not
       obligatory.
Financial impact: annual contribution to the administrative budget.
 ---pagebreak---                                        Proposal for a
                                  COUNCIL DECISION
 on the signing of the Grains Trade Convention, 1995, and the Food Aid Convention,
    1995, constituting the International Grains Agreement, 1995, and the deposit of a
                declaration of provisional application of those Conventions
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in particular
Articles 113 and 130 and in conjunction with the first sentence of Article 228(2) thereof,
Having regard to the proposal from the Commission,
Whereas the International Wheat Agreement, 1949 was revised, renewed, updated and
extended several times resulting in the conclusion of the International Wheat Agreement,
1986;
Whereas the International Wheat Agreement, 1986, comprising the Wheat Trade
Convention, 1986, and the Food Aid Convention, 1986, as extended, expires on 30 June
1995;
Whereas a new Agreement entitled the International Grains Agreement, 1995, comprising
two distinct legal instruments:
         (a)    the Grains Trade Convention, 1995 and
         (b)    the Food Aid Convention, 1995
has been negotiated;
Whereas the new International Grains Agreement will be open for signature at the
headquarters of the United Nations Organization in New York from 1 May to 30 June
1995 inclusive; whereas during that period signatories must deposit their instruments of
ratification, acceptance or approval; whereas signatories to the Agreement may, however,
be granted an extension of the time limit; whereas signatories may also deposit a
declaration of provisional application to ensure application of the Agreement on 1 July
1995;
Whereas the Community should avail itself of that possibility so as to be able to apply
the new Agreement from 1 July 1995 in the event that the approval procedure has not
been completed,
HAS DECIDED AS FOLLOWS:
 ---pagebreak---                                     Sole Article
1.    The President of the Council is hereby authorized to designate the person
      empowered to sign and deposit the declaration of provisional application contained
      in the Annex with the Secretary-General of the United Nations Organization.
2.    The text of the Agreement is annexed to this Decision.
Done at
                                                                          For the Council
                                                                          The President
 ---pagebreak---                 DECLARATION OF PROVISIONAL APPLICATION
   by the European Community of the Grains Trade Convention, 1995, and the
          Food Aid Convention, 1995, constituting the International Grains
                                     Agreement, 1995
It will not be possible for the European Community to complete before 30 June 1995 the
institutional procedures of approval laid down in Article 25 of the Grains Trade
Convention, 1995, and Article XVIII of the Food Aid Convention, 1995.
In accordance with Articles 25 and XIX of the said Conventions, the Community
therefore makes this declaration of provisional application. By depositing such a
declaration, the Community regards itself to be provisionally a party to the Conventions
concerned, with all the rights and obligations which result therefrom, until such time as
it has taken a final decision on the matter.
At the same time, pursuant to Articles 25(2) and XVIII respectively of the Conventions,
the Community requests an extension of the time limit for the deposition of its instrument
of approval to 31 December 1995.
The Community also declares that the Republic of Austria, the Republic of Finland and
the Kingdom of Sweden, having become Member States of the European Community on
 1 January 1995, will no longer accede individually to the Grains Trade Convention but
will be covered by the accession of the Community to that Convention. The Community
therefore undertakes to exercise the rights and fulfil the obligations laid down in the
Convention for the three countries concerned.
 ---pagebreak---        FINANCIAL STATEMENT                                                           Date:
1.      BUDGET HEADING:               B2 - 516                                       APPROPRIATIONS:
       TITLE:              Communication to the Council regarding EC participation in negotiation
                           work on a New Agreement to replace the International Wheat Agreement, 1986
        LEGAL BASIS: Treaty establishing the European Community, particularly Article 113
        AIMS: Authorization for the Commission to participate in the negotiation
                   of a new agreement - see par. 2
5.      FINANCIAL IMPLICATIONS:                          PERIOD OF 12                 CURRENT                   FOLLOWING
                                                            MONTHS                   FINANCIAL                   FINANCIAL
                                                                                        YEAR                        YEAR
                                                                                         (95)                        (96)
5.0...  EXPENDITURE
        - CHARGED TO THE EC BUDGET
          (REFUNDS/INTERVENTION)
        - NATIONAL AUTHORITIES
        -OTHER
5.1.    REVENUE
        - OWN RESOURCES OF THE EC
          (LEVIES/CUSTOMS DUTIES)
        - NATIONAL
                                                          1995               1996              1997                    1998
5.0.1.  ESTIMATED EXPENDITURE                             455,000         477,000             500,000                 525,000
5.1.1.  ESTIMATED REVENUE
52.     METHOD OF CALCULATION:
         C a l c u l a t i o n based on experience of budgetary p o l i c y of t h e I n t e r n a t i o n a l Wheat
         Council i n recent y e a r s , as w e l l as t h e new c a l c u l a t i o n of c o n t r i b u t i o n s t o be
         negociated.
6.0.    CAN THE PROJECT BE FINANCED PROM APPROPRIATIONS ENTERED IN THF RELEVANT
        CHAPTER, OF THE CITOENT BUDGET?
6.1.   «CAN THE PROJECT BE FINANCED BY TBftVSFER BETWEEN CHAPTERS OF THE CURRENT
       JIUDGET?
6.2.    im,L A SUPFLEMFNTftPY BUDGET U& NECESSARY?
6.3.    WILL FUTUR1: BUDGET APPROPRIATIONS BE NECESSARY?                                                             YES
OBSERVATIONS The amounts indicated cover the participation of the EC
                      to the administrative budget of the Agreement
                                                      >
 ---pagebreak---                INTERNATIONAL GRAINS AGREEMENT, 1995
                                      PREAMBLE
THE SIGNATORIES TO THIS AGREEMENT
        Considering that the International Wheat Agreement, 1949 was revised,
renewed, updated or extended on successive occasions leading to the conclusion of
the International Wheat Agreement, 1986
         Considering that the provisions of the International Wheat Agreement,
1986, consisting of the Wheat Trade Convention, 1986, on the one hand, and the
Food Aid Convention, 1986, on the other, as extended, will expire on 30th June
1995, and that it is desirable to conclude an agreement for a new period,
Have agreed that the International Wheat Agreement, 1986 shall be updated and
renamed the International Grains Agreement, 1995, which shall consist of two
separate legal instruments
        (a)     the Grains Trade Convention, 1995 and
        (b)     the Food Aid Convention, 1995,
and that each of these two Conventions, or either of them as appropriate,
shall be submitted for signature and ratification, acceptance or approval, in
conformity with their respective constitutional or institutional procedures, by the
Governments concerned.
 ---pagebreak---                      GRAINS TRADE CONVENTION, 1995
                                  PART I - GENERAL
                                      ARTICLE 1
                                       Objectives
The objectives of this Convention are:
(a)     to further international co-operation in ail aspects of trade in grains,
        especially insofar as these affect the food grain situation;
(b)    to promote the expansion of international trade in grains, and to secure the
       freest possible flow of this trade, including the elimination of trade barriers
       and unfair and discriminatory practices, in the interest of ail members, in
       particular developing members;
(c)    to contribute to the fullest extent possible to the stability of international
       grain markets in the interests of all members, to enhance world food security,
       and to contribute to the development of countries whose economies are
       heavily dependent on commercial sales of grain; and
(d)     to provide a forum for exchange of information and discussion of
        members' concerns regarding trade in grains.
                                       ARTICLE 2
                                       Definitions
 For the purposes of this Convention:
 (1)     (a)    "Council" means the International Grains Council established by the
                International Wheat Agreement, 1949 and continued in being by
                Article 9
         (b)    (i)     "member" means a party to this Convention;
                (ii)     "exporting member" means a member so designated under
                        Article 12;
                (Hi)     "importing member" means a member so designated under
                         Article 12;
                                          3
 ---pagebreak---          (c)     "Executive Committee" means-the Committee established under-
                 Artide15;
         (d)     "Market Conditions Committee" means the Committee established
                 under Article 16;
         (e)     "grain" or "grains" means barley, maize, millet, oats,- rye, sorghum,
                 triticale and wheat,, and their products, and such other grains and
                 products as the Council may decide;
         (f)     (i)      "purchase" means a purchase of grain for* import - or the
                          quantity of grain so purchased, as the context requires;
                 (H)      "sale" means a sale of grain for export" or the quantity of such -
                          grain so sold, as the context requires;
                 (iit)    where reference is made in this Convention to a purchase
                          or sale, it shall be understood to refer not only to purchases-
                          or sales concluded-between the Governments concemedr-
                          but also to purchases: or sales concluded between private
                          traders, and-to purchases or-sales concluded between a
                          private trader and the.Government concerned;
         (g)      "special vote" means a vote requiring at least two thirds of the votes
                  (as calculated under Article 12) cast by the exporting members
                  present and voting, and at least two thirds of the votes (as calculated
                  under Article .12) cast-by the importing members present and voting,
                  counted separately;
          (h)     "crop year" or "fiscal year" means the period from 1 July to the
                  following 30 June;                       *
              *
          (i)     "working day" means a working day at the headquarters of the
                  Council.
  (2)     Any reference in ~ this Convention- to a "Government" or "Governments"
  or "member" snail be construed as including a reference to the European Community
  (hereinafter referred to as the EC). Accordingly, any reference in this Convention to
  "signature" or to the "deposit of instruments of ratification, acceptance, or approval"
-or "an instrument of accession" or "a .declaration of provisional.application" by a
  Government shall, inthe case of"the-EC^be'construed as including signature or
  declaration ofprovisionai application on behalf of the EC by its competent authority
  and the deposit of the instalment required by the institutional procedures of the EC:
  to be deposited for the conclusion of an international agreement.
   (3) Any reference in this Convention to "Government"/ "Governments" or
 "member" shall be construed, where required, as covering all separate
 customs territory within the weaning of the General Agreement on Tarfffs
 and Trade or the Agreement establishing the World Trade Organization.
                                             <lo
 ---pagebreak---                                         ARTICLE 3
                             Information, reports and studies
(1)     To facilitate the achievement of the objectives in Article 1, make possible a
fuller exchange of views at Council sessions, and provide information on a
continuing basis to serve the general interest of members, arrangements shall be
made for regular reports and exchange of information, and also special studies, as
appropriate, covering grains, focusing primarily upon the following:
        (a)      supply, demand and market conditions;
        (b)      developments in national policies and their effects on the international
                 market;
        (c)      developments concerning the improvement and expansion of trade,
                 utilization, storage and transportation, especially in developing
                 countries.
(2)     To improve the collection and presentation of information for those reports
and studies referred to in paragraph (1) of this Article, to make it possible for
more members to participate directly in the work of the Council, and to supplement
the guidance already given by the Council in the course of its sessions, there shall
be established a Market Conditions Committee, whose meetings shall be open to ail
members of the Council. The Committee shall have the functions specified in Article
16.
                                        ARTICLE 4
                          Consultations on market developments
 (1)     If the Market Conditions Committee, in the course of its continuous review of
the market under Article 16, is of the opinion that developments in the international
grain market seriously threaten to affect the interests of members, or if such
 developments are called to the Committee's attention by the Executive Director on
 his own initiative or at the request of any member of the Council, it shall immediately
 report the facts concerned to the Executive Committee.          The Market Conditions
 Committee, in so informing the Executive Committee, shall give particular regard
 to those circumstances which threaten to affect the interests of members.
 (2)     The Executive Committee shall meet within ten working days to review such
 developments and, if it deems it appropriate, request the Chairman of the Council
 to convene a session of the Council to consider the situation.
                                         M
 ---pagebreak---                                         ARTICLE-5
                    Commercial purchases and special transactions
(1)     A commercial purchase for the purposes of this Convention is a purchase as
defined in Article 2 which conforms to the usual commercial practices in
international trade and which does not include those transactions referred to in
paragraph (2) of this Article.
(2)     A special transaction for the purposes of this Convention is one which
includes features introduced by the Government of a member concerned which do
not conform to usual commercial practices. Special transactions include the
following:
        (a)     sales on credit in which, as a result of government intervention,
                the interest rate, period of payment, or other related terms do not
                conform to the commercial rates, periods or terms prevailing in the
                world market;
        (b)     sales in which the funds for the purchase of grain are obtained under
                a loan from the Government of the exporting member tied to the
                purchase of grain;
        (c)     sales for currency of the importing member which is not transferable
                or convertible into currency or goods for use in the exporting member;
        (d)     sales under trade            agreements with special payments
                arrangements which include clearing accounts for settling credit
                balances bilaterally through the exchange of goods, except where the
                exporting member and the importing member concerned agree that
                the sale shall be regarded as comrnercial;
        (e)     barter transactions:
                (i)     which result from the intervention of Governments where
                        grain is exchanged at other than prevailing world prices, or
                (ii)    which involve sponsorship under a government purchase
                         programme, except where the purchase of grain results from a
                         barter transaction in which the country of final destination was
                         not named in the original barter contract;
        (f)     a gift of grain or a purchase of grain out of a monetary grant by the
                exporting member made for that specific purpose;
        (g)     any other categories of transactions, as the Council may prescribe,
                that include features introduced by the Government of a member
                concerned which do not conform to usual commercial practices.
                                            yi£
 ---pagebreak--- |3)       Any question raised by the Executive Director or by any member as to
whether a transaction is a commercial purchase-as defined in paragraph (1) of this
Article or a special transaction as defined in paragraph (2) of this Article shall be
decided by the Council.
                                      ARTICLES
                  Guidelines relating to concessional transactions
 (1)      Members undertake to conduct any concessional transactions in grains in
 such a way as to avoid harmful interference with normal patterns of production and
 international commercial trade.
 (2)      To this end both supplying and recipient members shall undertake
 appropriate measures to ensure that concessional transactions are additional to
 commercial sales which could reasonably be anticipated in the absence of such
transactions, and would increase consumption or stocks in the recipient country.
 Such measures shall, for countries which are members of FAO, be consistent
with the FAO Principles of Surplus Disposal and Guiding Lines and the consultative
 obligations of FAO members, and may include the requirement that a specified level
 of commercial imports of grains 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 levels in a representative period, to recent
trends in utilisation and imports, and to the economic circumstances of              the
 recipient country, including, in particular, its balance-of-payments situation.
 (3)      Members, when engaging in concessional export transactions, shall
 consult with exporting members whose commercial sales might be affected by such
 transactions to the maximum possible extent before such arrangements are
 concluded with recipient countries.
 (4)      The Secretariat shall periodically report to the Council on developments in
 concessional transactions in grains.
                                      ARTICLE 7
                               Reporting and recording
  (1)     Members shall provide regular reports, and the Council shall maintain
  records for each crop year,         showing separately commercial and special
 transactions, of all shipments of grain by members and ail imports of grain from
  non-members. The Council shall also maintain, to the extent possible, records of
  all shipments between non-members.
                                       • * >
 ---pagebreak--- (2)     Members shall provide, as far as possible, such information as the Council
may require concerning their grain supply and demand, and report promptly all
changes in their national grain policies.
(3)     For the purposes of this Article:
        (a)     members shall send to the Executive Director such information
                concerning the quantities of grain involved in commercial sales and
                purchases and special transactions as the Council within its
                competence may require, including:
                (i)      in relation to special transactions, such detail of the
                         transactions as will enable them to be classified in accordance
                        with Article 5;
                (ii)     such information as may be available as to the type, class,
                         grade and quality of the grains concerned;
        (b)     any member when exporting grain shall send to the Executive Director
                such information relating to their export prices as the Council may
                require;
        (c)     the Council shall obtain regular information on currently prevailing
                grain transportation costs,         and members shall report such
                supplementary information as the Council may require.
(4)     In the case of any grain which reaches the country of final destination after
resale in, passage through, or transhipment from the ports of, a country other than
that in which it originated, members shall to the maximum extent possible make
available such information as will enable the shipment to be entered in the records
as a shipment between the country of origin and the country of final destination. In
the case of a resale, the provisions of this paragraph shall apply if the grain
originated in the country of origin during the same crop year.
(5)     The Council shall make rules of procedure for the reports and records
referred to in this Article. Those rules shall prescribe the frequency and the manner
in which those reports shall be made and shall prescribe the duties of members with
regard thereto. The Council shall also make provision for the amendment of any
records or statements kept by it, including provision for the settlement of any dispute
arising in connection therewith. If any member repeatedly and unreasonably fails to
make reports as required by this Article, the Executive Committee shall arrange
consultations with that member to remedy the situation.
                                           4ij
 ---pagebreak---                                        ARTICLE 8
                               Disputes and complaints
(1)     Any dispute concerning the interpretation or application of this Convention
which is not settled by negotiation shall, at the request of any member which is a
party to the dispute, be referred to the Council for decision.
(2)     Any member which considers that its interests as a party to this Convention
have been seriously prejudiced by actions of any one or more members affecting the
operation of this Convention may bring the matter before the Council. In such a
case, the Council shall immediately consult with the members concerned in order
to resolve the matter.          If the matter is not resolved through such
consultations, the Council shall consider the matter further and may make
recommendations to the members concerned.
                                          A€
 ---pagebreak---                               PART II - ADMINISTRATION
                                       ARTICLE 9
                              Constitution of the Council
(1)     The Council (formerly the International Wheat Council, as established by the
International Wheat Agreement, 1949, and now renamed the International Grains
Council) shall continue in being for the purposes of administering this Convention
with the membership, powers and functions provided in this Convention.
(2)     Members may be represented at Council meetings by delegates, alternates
and advisers.
(3)     The Council shall elect a Chairman and a Vice-Chairman who shall hold
office for one crop year. The Chairman shall have no vote and the Vice-Chairman
shall have no vote while acting as Chairman.
                                      ARTICLE 10
                          Powers and functions of the Council
(1)     The Council shall establish its Rules of Procedure.
(2)     The Council shall keep such records as are required by the terms of this
Convention and may keep such other records as it considers desirable.
(3)      In order to enable the Council to discharge its functions under this
Convention, the Council may request, and members undertake to supply, subject to
the provisions of paragraph (2) of Article 7, such statistics and information as are
necessary for this purpose.
(4)     The Council may, by special vote, delegate to any of its committees, or
to the Executive Director, the exercise of powers or functions other than the
following:
         (a)    decisions on matters Under Article 8;
         (b)    review, under Article 11, of the votes of members listed in the Annex;
         (c)    determination of exporting and importing members and distribution
                of their votes under Article 12;
        (d)     location of the seat of the Council under paragraph (1 ) of Article 13;
                                           Aio
 ---pagebreak---          (e)    appointment of the Executive Director under paragraph (2) of
                Article 17;
        (f)     adoption of the budget            and    assessment   of   members'
                contributions under Article 21 ;
        (g)     suspension of the voting rights of a member under paragraph (6)
                of Article 21;
        (h)     any request to the Secretary-General of UNCTAD to convene a
                negotiating conference under Article 22;
        (i)     exclusion of a member from the Council under Article 30;
        (j)     recommendation of an amendment under Article 32;
        (k)     extension or termination of this Convention under Article 33.
The Council may at any time revoke such delegation by a majority of the votes cast.
(5)     Any decision made under any powers or functions delegated by the Council
in accordance with paragraph (4) of this Article shall be subject to review by the
Council at the request of any member made within a period which the Council shall
prescribe. Any decision in respect of which no request for review has been made
within the prescribed period shall be binding on ail members.
(6)     In addition to the powers and functions specified in this Convention the
Council shall have such other powers and perform such other functions as are
necessary to carry out the terms of this Convention.
                                      ARTICLE 11
                Votes for entry into force and budgetary procedures
(1)     For the purposes of the entry into force of this Convention, the calculations
under paragraph (1) of Article 28 shall be based on the votes as set out in part A of
the Annex.
(2)      For the purposes of the assessment of financial contributions under Article
21, the votes of members shall be based on those set out in the Annex, subject to
the provisions of this Article and the associated Rules of Procedure.
(3)     Whenever this Convention is extended under paragraph (2) of Article 33, the
Council shall review and adjust the votes of members under this Article. Such
adjustments shall bring the distribution of votes more closely into line with current
grain trade patterns, and shall be in accordance with the methods specified in the
 Rules of Procedure.
                                           •W
 ---pagebreak--- (4)      If the Council decides that a significant shift in world grain trading patterns
has occurred it shall review, and may adjust, the votes of members. Such
adjustments shall be regarded as amendments to this Convention, and shall be
subject to the provisions of Article 32, except that an adjustment of votes may take
effect only at the beginning of a fiscal year. After any adjustment to member's votes
under this paragraph has taken effect, no further such adjustment may be put into
effect before three years have elapsed.
(5)     All redistributions of votes under this Article shall be conducted in accordance
with the Rules of Procedure.
(6)      For all purposes regarding the administration of this Convention, other than
its entry into force under paragraph (1) of Article 28 and the assessment of financial
contributions under Article 21, the votes to be exercised by members shall be as
determined under Article 12.
                                       ARTICLE 12
                                                                                         ^
               Determination of exporting and importing members and
                                distribution of their votes
(1)     At the first session held under this Convention, the Council shall establish
which members shall be exporting members and which members shall be
importing members for the purposes of this Convention. In so deciding, the
Council shall take account of the grain trading patterns of those members and of
their own views.
(2)      As soon as the Council has determined which members shall be exporting
and which shall be importing members under this Convention, the exporting
members, on the basis of their votes under Article 11, shall divide their votes among
them as they shall decide, subject to the conditions laid down in paragraph (3) of this
Article, and the importing members shall similarly divide their votes.
(3)      For the purposes of the allocation of votes under paragraph (2) of this
Article, the exporting members shall together hold 1,000 votes, and the
importing members shall together hold 1,000 votes. No member shall hold
more than 333 votes as an exporting member or more than 333 votes as an
importing member. There shall be no fractional votes.
(4)      The lists of exporting and importing members shall be reviewed by the
Council, in the light of changing patterns in their grain trade, after a period of three
years following the entry into force of this Convention. They shall also be
 reviewed whenever this Convention is extended under paragraph (2) of Article 33.
 (5)     At the request of any member, the Council may, at the beginning of any fiscal
 year, agree by special vote to the transfer of that member from the list of exporting
 members to the list of importing members, or from the list of importing members
 to the list of exporting members, as appropriate.
 (6)     The distribution of the votes of exporting and importing members shall be
 reviewed by the Council whenever the lists of the exporting and importing members
                                            A%
 ---pagebreak--- are changed under paragraphs (4) or (5) of this Article. Any redistribution of votes
under this paragraph shall be subject to the conditions set out in paragraph (3) of this
Article.
(7)      Whenever any Government becomes, or ceases to be, a party to this
Convention, the Council shall redistribute the votes of the other exporting or
importing members, as appropriate, in proportion to the number of votes held by
each member, subject to the conditions set out in paragraph (3) of this Article.
(8)      Any exporting member may authorize any other exporting member, and any
importing member may authorise any other importing member, to represent its
interests and to exercise its votes at any meeting or meetings of the Council.
Satisfactory evidence of such authorisation shall be submitted to the Council.
(9)      If at any meeting of the Council a member is not represented by an
accredited delegate and has not authorized another member to exercise its votes
in accordance with paragraph (8) of this Article, or if at the date of any meeting any
member has forfeited, has been deprived of, or has recovered its votes under any
provisions of this Convention, the total votes to be exercised by the exporting
members at that meeting shall be adjusted to a figure equal to the total of votes to be
exercised at that meeting by the importing members and redistributed among
exporting members in proportion to their votes.
                                       ARTICLE 13
                               Seat sessions and quorum
 (1)     The seat of the Council shall be in London unless the Council decides
 otherwise.
 (2)     The Council shall meet at least once during each half of each fiscal year and
 at such other times as the Chairman may decide, or as otherwise required by this
 Convention.
 (3)     The Chairman shall convene a session of the Council if so requested by
 (a) five members or (b) one or more members holding a total of not less than 10 per
 cent of the total votes or (c) the Executive Committee.
 (4)     The presence of delegates with a majority of the votes held by the exporting
 members and a majority of the votes held by the importing members, prior to
 any adjustment of votes under paragraph (9) of Article 12, shall be necessary to
 constitute a quorum at any meeting of the Council.
                                            AJb
 ---pagebreak---                                      ARTICLE 14
                                      Decisions
(1)     Except where otherwise specified in this Convention, decisions of the
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.
(2)     Without prejudice to the complete liberty of action of any member in the
determination and administration of its agricultural and price policies, each member
undertakes to accept as binding all decisions of the Council under the provisions of
this Convention.
                                     ARTICLE 15
                                 Executive Committee
(1)     The Council shall establish an Executive Committee consisting of not more
than six exporting members elected annually by the exporting members and not
more than eight importing members elected annually by the importing members.
The Council shall appoint the Chairman of the Executive Committee and may
appoint a Vice-Chairman.
(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 expressly
assigned to it under this Convention and such other powers and functions as the
Council may delegate to it under paragraph (4) of Article 10.
(3)     The exporting members on the Executive Committee shall have the same
total number of votes as the importing members.          The votes of the exporting
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
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, provided that no such importing member shall have more than 40 per cent of
the total votes of those importing members.
(4)     The Council shall prescribe rules of procedure regarding voting in the
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 for
the Council when making a decision on a similar matter.
 (5)    Any member of the Council which is not a member of the Executive
Committee may participate, without voting, in the discussion of any question before
the Executive Committee whenever the latter considers that the interests of that
 member are affected.
                                           SCO
 ---pagebreak---                                         ARTÎCLE-16
                               Market Conditions Committee
(1)      The Council shall establish a Market Conditions Committee, which shall be a
Committee of the whole. The Chairman of the Market Conditions Committee shall
be the Executive Director, unless the Council decides otherwise.
(2)      Invitations to attend the meetings of the Market Conditions Committee as
observers may be extended to representatives of non-member Governments and
international organizations, as the Chairman of the Committee considers
appropriate.
(3)      The Committee shall keep under continuous review, and report to members
on, all matters affecting the world grain economy. The Committee shall take account
in its review of relevant information supplied by any member of the Council.
(4)      The Committee shall supplement the guidance given by the Council to assist
the Secretariat in carrying out the work envisaged in Article 3.
(5)      The Committee shall advise in accordance with the relevant Articles of this
Convention and on any matters which the Council or the Executive Committee may
refer to it.
                                        ARTICLE 17
                                        Secretariat
(1)      The Council shall have a Secretariat consisting of an Executive Director, who
shall be its chief administrative officer, and such staff as may be required for the
work of the Council and its Committees.
(2)      The Council shall appoint the Executive Director who shall be responsible for
the performance of the duties devolving upon the Secretariat in the administration of
this Convention, and for the performance of such other duties as are assigned to
him by the Council and its Committees.
 (3)     The staff shall be appointed by the Executive Director in accordance
with regulations established by the Council.
 (4)      It shall be a condition of employment of the Executive Director and of the staff
that they do not hold or shall cease to hold financial interest in the grain trade and
that they shall not seek or receive instructions regarding their duties under this
 Convention from any Government or from any other authority external to the
 Council.
                                             XA
 ---pagebreak---                                       ARTICLE 18
                                Admission of observers
         The Council may invite any non-member State, and any intergovernmental
organization, to attend any of its meetings as an observer.
                                      ARTICLE 19
              Co-operation with other intergovernmental organisations
(1)      The Council may make whatever arrangements are appropriate for
consultation or co-operation with the United Nations, its organs, and such other
specialized agencies and intergovernmental organisations as may be appropriate, in
particular the United Nations Conference on Trade and Development, the Food and
Agriculture Organization, the Common Fund for Commodities and the World Food
Programme.
(2)       The Council, bearing in mind the particular role of the United Nations
Conference on Trade and Development in international commodity trade, will, as
it considers appropriate, keep the United Nations Conference on Trade and
Development informed of its activities and programmes of work.
(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
through its appropriate organs or by its specialised agencies regarding
intergovernmental commodity agreements, the inconsistency shall be deemed to be
a circumstance affecting adversely the operation of this Convention and the
procedure prescribed in Article 32 shall be applied.
                                      ARTICLE 20
                               Privileges and immunities
(1)       The Council shall have legal personality. It shall in particular have the
capacity to contract, acquire and dispose of movable and immovable property and to
 institute legal proceedings.
 (2)      The status, privileges and immunities of the Council in the territory of the
 United Kingdom shall continue to be governed by the Headquarters Agreement
 between the Government of the United Kingdom of Great Britain and Northern
 Ireland and the International Wheat Council signed at London on 28 November 1968.
 (3)      The Agreement referred to in paragraph (2) of this Article shall be
 independent of the present Convention. It shall however terminate:
                                           8ÛL
 ---pagebreak---         (a)       by agreement between the Government of the United Kingdom of
                  Great Britain and Northern Ireland and the Council, or
        (b)       in the event of the seat of the Council being moved from the United
                  Kingdom, or
        (c)       in the event of the Council ceasing to exist.
(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 situated shall
conclude with the Council an international agreement relating to the status, privileges
and immunities of the Council, its Executive Director, its staff and representatives of
members at meetings convened by the Council.
                                        ARTICLE 21
                                          Finance
(1)     The expenses of delegations to the Council and of representatives on its
Committees and working groups shall be met by their respective Governments. The
other expenses necessary for the administration of this Convention shall be met
by annual contributions from all members. The contribution of each member for
each fiscal year shall be in the proportion which the number of its votes in the Annex
bears to the total of the votes of members in the Annex, as adjusted under Article 11
to reflect the membership of the Convention at the time when the budget for that
fiscal year is adopted.
 (2)    At its first session after this Convention comes into force, the Council shall
 approve its budget for the fiscal year ending 30 June 1996, and assess the
 contribution to be paid by each member.
 (3)     The Council shall, at a session during the second half of each fiscal year,
 approve its budget for the following fiscal year and assess the contribution to be paid
 by each member for that fiscal year.
 (4)     The initial contribution of any member acceding to this Convention under
 paragraph (2) of Article 27 shall be assessed on the basis of the votes agreed with
 the Council as a condition for its accession, and the period of the current fiscal year
 remaining at the time of accession, but the assessments of contributions to be paid
 by the other members in that fiscal year shall not be altered.
 (5)     Contributions shall be payable immediately upon assessment.
 (6)     If, at the end of six months following the date on which its contribution is due
 in accordance with paragraph (5) of this Article, a member has not paid its full
 contribution, the Executive Director shall request the member to make payment as
 quickly as possible. If, at the expiration of six months after the request of the
  Executive Director, the member has still not paid its contribution, its voting rights in
                                               S3
 ---pagebreak--- the Council and in the Executive Committee shall be suspended until such
time as it has made full payment of the contribution.
(7)       A member whose voting rights have been suspended under paragraph (6) of
this Article shall not be deprived of any of its other rights or relieved of any of its
obligations under this Convention, unless the Council so decides by special vote. It
shall remain liable to pay its contribution and to meet any other of its financial
obligations under this Convention.
(8)       The Council shall, each fiscal year, publish an audited statement of its
receipts and expenditures in the previous fiscal year.
(9)       The Council shall, prior to its dissolution, provide for the settlement of its
liabilities and the disposai of its records and assets.
                                        ARTICLE 22
                                   Economic provisions
          The Council may, at an appropriate time, examine the possibility of the
negotiation of a new international agreement or convention with economic
provisions, and report to members, making such recommendations as it deems
appropriate. The Council may, when it is judged that such a negotiation could be
successfully concluded, request the Secretary-General of the United Nations
Conference on Trade and Development to convene a negotiating conference.
                                              IH
 ---pagebreak---                             PART III - FINAL PROVISIONS
                                       ARTICLE 23
                                       Depositary
(1)      The Secretary-General of the United Nations is hereby designated as the
depositary of this Convention.
(2)      The depositary shall notify ait signatory and acceding Governments of each
signature, ratification, acceptance, approval, provisional         application of, and
accession to, this Convention, as well as each notification and notice received
under Articles 29 and 32.
                                       ARTICLE 24
                                        Signature
         This Convention shall be open for signature at United Nations Headquarters
from 1 May 1995 until and including 30 June 1995 by the Governments listed in the
Annex.
                                       ARTICLE 25
                          Ratification, acceptance, approval
(1)       This Convention shall be subject to ratification, acceptance or approval by
each signatory Government in accordance with its respective constitutional
procedures.
 (2)      Instruments of ratification, acceptance or approval shall be deposited with
the depositary not later than 30 June 1995. The Council may, however, grant one
or more extensions of time to any signatory Government which is unable to deposit
 its instrument by that date. The Council shall inform the depositary of all such
 extensions of time.
                                            xs
 ---pagebreak---                                       ARTICLE 26
                                Provisional application
         Any signatory Government and any other Government eligible to sign this
Convention, or whose application for accession is approved by the Council, may
deposit with the depositary a declaration of provisional application. Any Government
depositing such a declaration shall provisionally apply this Convention in accordance
with its laws and regulations and be provisionally regarded as a party thereto.
                                      ARTICLE 27
                                       Accession
(1)       Any Government listed in the Annex may accede to the present Convention
until and including 30 June 1995, except that the Council may grant one or more
extensions of time to any Government which has not deposited its instrument by
that date.
(2)       This Convention shall be open for accession after 30 June 1995 by the
Governments of all States upon such conditions as the Council considers
appropriate. Accession shall be effected by the deposit of an instrument of
accession with the depositary. Such instruments of accession shall state that the
Government accepts all the conditions established by the Council.
(3)       Where, for the purposes of the operation of this Convention, reference is
made to members listed in the Annex, any member the Government of which has
acceded to this Convention on conditions prescribed by the Council in accordance
with this Article shall be deemed to be listed in the Annex.
                                      ARTICLE 28
                                    Entry into force
(1)       This Convention shall enter into force on 1 July 1995 if instruments of
 ratification, acceptance, approval or accession, or declarations of provisional
application have been deposited not later than 30 June 1995 on behalf of
 Governments listed in part A of the Annex holding, at least, 88 per cent of the total
votes set out in part A of the Annex.
 (2)      If this Convention does not enter into force in accordance with paragraph (1)
 of this Article, the Governments which have deposited instruments of ratification,
 acceptance, approval or accession, or declarations of provisional application, may
 decide by mutual consent that it shall enter into force between themselves, or
 may take whatever action they consider the situation requires.
                                           &r
 ---pagebreak---                                         ARTICLE 29
                                        Withdrawal
        Any member may withdraw from this Convention at the end of any fiscal year
by giving written notice of withdrawal to the depositary at least ninety days prior to
the end of that fiscal year, but shall not thereby be released from any obligations
under this Convention which have not been discharged by the end of that fiscal year.
The member shall simultaneously inform the Council of the action it has taken.
                                        ARTICLE 30
                                         Exclusion
        If the Council finds that any member is in breach of its obligations under
this Convention and decides further that such breach significantly impairs the
operation of this Convention, it may, by special vote, exclude such member from
the Council. The Council shall immediately notify the depositary of any such
decision. Ninety days after the date of the Council's decision, that member shall
cease to be a member of the Council.
                                        ARTICLE 31
                                 Settlement of accounts
 (1)     The Council shall determine any settlement of accounts which it finds
 equitable with a member which has withdrawn from this Convention or which
 has been excluded from the Council, or has otherwise ceased to be a party to this
 Convention. The Council shall retain any amounts already paid by such member.
 Such member shall be bound to pay any amounts due from it to the Council.
 (2) ' Upon termination of this Convention, any member referred to in paragraph (1)
 of this Article shall not be entitled to any share of the proceeds of the liquidation or
 the other assets of the Council; nor shall it be burdened with any part of the deficit, if
 any, of the Council.
                                             fy
 ---pagebreak---                                         ARTICLE 32
                                        Amendment
(1)       The Council may by special vote recommend to members an
amendment of this Convention. The amendment shall become effective 100 days
after the depositary has received notifications of acceptance from exporting
members which hold two thirds of the votes of the exporting members and by
importing members which hold two thirds of the votes of the importing members, or
on such later date as the Council may have determined by special vote. The Council
may fix a time within which each member shall notify the depositary of its acceptance
of the amendment and, if the amendment has not become effective by such time, it
shall be considered withdrawn. The Council shall provide the depositary with the
information necessary to determine whether the notifications of acceptance received
are sufficient to make the amendment effective.
(2)       Any member on behalf of which notification of acceptance of an amendment
has not been made by the date on which such amendment becomes effective shall
as of that date cease to be a party to this Convention, unless such member has
satisfied the Council that acceptance could not be secured in time owing to
difficulties in completing its constitutional procedures and the Council decides to
extend for such member the period fixed for acceptance. Such member shall not be
bound by the amendment before it has notified its acceptance thereof.
                                        ARTICLE 33
                          Duration, extension and termination
 (1)      This Convention shall remain in force until 30 June 1998, unless extended
 under paragraph (2) of this Article, or terminated earlier under paragraph (3) of this
Article, or replaced before that date by a new agreement or convention negotiated
 under Article 22.
 (2)      The Council may, by special vote, extend this Convention beyond 30 June
 1998 for successive periods not exceeding two years on each occasion.             Any
 member which does not accept such extension of this Convention shall so inform the
 Council at least thirty days prior to the extension coming into force. Such a member
 shall cease to be a party to this Convention from the beginning of the period of
 extension, but it shall not thereby be released from any obligations under this
 Convention which have not been discharged prior to that date.
 (3)      The Council may at any time decide, by special vote, to terminate this
 Convention with effect from such date and subject to such conditions as it may
 determine.
                                               xs
 ---pagebreak---                                   ANNEX TO THE
                       GRAINS TRADE CONVENTION, 1995
                            VOTES UNDER ARTICLE 11
                         (from 1 July 1995 to 30 June 1998)
                                      PART A
Algeria                                                        15
Argentina                                                      97
Australia                                                     122
Austria                                                         5
Barbados                                                        5
Bolivia                                                         5
Canada                                                        243
Côte d'Ivoire                                                   5
Cuba                                                            6
Ecuador                                                         5
Egypt (Arab Republic of)                                       55
European Community                                           443
Finland                                                         5
Hungary                                                        13
India                                                          32
Iran              :                                             9
Iraq                                                            9
Israel                                                          8
Japan                                                         187
Korea, Republic                                                26
Malta.                                                          5
Mauritius                                                       5
Morocco                                                        10
Norway         :                                               11
Pakistan                                                       14
Panama                                                          5
Russian Federation                                            100
Saudi Arabia                                                   17
South Africa                                                   16
Sweden                                                         10
Switzerland                                                    15
Tunisia                                                         5
 Turkey                                                         7
 United States of America                                     475
 Vatican City                                                   5
 Yemen Arab Republic                                            5
                                                            2,000
                                           2^
 ---pagebreak---                                     PARTB
Bangladesh                                     9
Belarus                                        5
Brazil                                        32
Bulgaria                          :            7
Chile                                          6
China (People's Republic of).....         ,   77
Colombia....                                   5
Cyprus                                         5
Czech Republic                                 6
Dominican Republic                             5
El Salvador                                   ,5
Estonia                                     .  5
Ethiopia                                       5
Ghana                                          5
Guatemala.........                             5
Indonesia...                                   9
Jamaica                                        5
Jordan                                         5
Kazakhstan                                     5
Kenya                                          5
Kuwait                                         5
Latvia                                         5
Lithuania                                      5
Malaysia                                       8
Mexico                                        28
New Zealand                                    5
Nigeria                                        6
Paraguay                                       5
Peru                                           9
Philippines                                    7
Poland.......                                 31
Romania                                       14
Senegal                                        5
Slovakia                                       6
Sri Lanka                                      5
Sudan...      .................:               5
Syrian Arab Rep....                            7
Taiwan               ;........                26
Tanzania                                       5
Thailand .                                    17
Trinidad and Tobago                            5
Ukraine                                        8
Uruguay                                        5
Uzbekistan                                    14
Venezuela                                     13
Viet Nam                                       5
Zaire                                          5
Zambia                                         5
Zimbabwe                                       5
                                     ~$o
 ---pagebreak---                             FOOD AID CONVENTION, 1995
                         PART I - OBJECTIVE AND DEFINITIONS
                                          ARTICLE I
                                           Objective
        The objective of this Convention is to secure, through a joint effort by the
international community, the achievement of the World Food Conference target of at least
10 million tonnes of food aid annually to developing countries in the form of grain suitable for
human consumption, and as determined by the provisions of this Convention.
                                          ARTICLE II
                                          Definitions
        For the purposes of this Convention:
(1)     (a)    "c.i.f." means cost, insurance and freight;
        (b)    "Committee" means the Food Aid Committee referred to in Article IX of this
               Convention;
        (c)    "Convention" means the Food Aid Convention, 1995;
        (d)    "developing country", unless the Committee decides otherwise, means any
               country or territory which is recognised by the Development Assistance
               Committee of OECD as a developing country or territory.
        (e)    "Executive Director" means the Executive Director of the International Grains
               Council;
        (f)    "f.o.b." means free on board;
                                        *M
 ---pagebreak--- (g)  "pulses" includes the following species:
     Cicer arietinum
     Lens culinaris
     Lupins angustifolius/albus
     Phaseolus vulgaris/lunatus
     Pisum sativum
     Vicia faba
     Vigna angularis/sinensis/unguiculata
     Vigna radiata/mungo
     and any other species which the Committee may decide.
(h)  "member" means a party to this Convention;
(i)  "products of primary processing" include:
     (i)      cereal flours;
     (ii)     cereal groats and cereal meal;
     (Hi)     other worked cereal grains (e.g. rolled, flaked, polished, pearled and
              kibbled, but not further prepared) except husked, glazed, polished or
              broken rice;
     (iv)     germ of cereals, whole, rolled, flaked or ground;
     (v)      bulgur; and
     (vi)     any other similar grain product which the Committee may decide;
(j)  "products of secondary processing" include:
     (i)      macaroni, spaghetti and similar products; and
     (ii)     any other product, whose manufacture involves the use of a product
              of primary processing, which the Committee may decide;
(k)  "rice" includes husked, glazed, polished or broken rice;
(I)  "Secretariat" means the Secretariat of the International Grains Council;
(m)  "tonne" means a metric ton of 1,000 kilograms;
(n)  "Usual Marketing Requirement" or "UMR" is the term, as currently used by
     the FAO and other responsible international organisations, for the
     commitment by a country receiving a concessional transaction to maintain the
     normal level of commercial imports of the commodity concerned, in addition
     to the imports provided under the concessional transaction.
 (o) "wheat equivalent" means the amount of a member's contribution, whether
     provided in grain, in grain products, in rice or in cash, as evaluated in terms
     of wheat in accordance with the provisions of Article VI of this Convention;
 (p) "year" means the period from 1 July to the following 30 June, unless
      otherwise stated.
                                     b^.
 ---pagebreak--- (2)      Any reference in this Convention to a "Government" or "Governments" or a
"member" shall be construed as including a reference to the European Community
(hereinafter referred to as the EC). Accordingly, any reference in this Convention to
"signature" or to the "deposit of instruments of ratification, acceptance or approval" or "an
instrument of accession" or to a "declaration of provisional application" by a Government
shall, in the case of the EC, be construed as including signature or declaration of provisional
application on behalf of the EC by its competent authority, and the deposit of the instrument
required by the institutional procedures of the EC to be deposited for the conclusion of an
international agreement.
                                PART II - MAIN PROVISIONS
                                          ARTICLE III
                                  Contributions of members
(1)      The members of this Convention agree to contribute to developing countries grains
as food aid, suitable for human consumption and of an acceptable type and quality, or the
cash equivalent thereof, in the minimum annual amounts specified in paragraph (4) below.
In supplying grain under this Convention, priority is to be given to countries or territories with
food import needs which are classified by the Development Assistance Committee of the
OECD as least developed countries (LDCs), other low-income countries (LICs) or lower
middle-income countries (LMICs).
(2)      For the purposes of paragraph (1) of this Article, "grain" or "grains" means wheat,
 barley, maize, millet, oats, rye, sorghum and rice, or the products (including products of
 primary and secondary processing) derived therefrom, and also pulses, subject to the
 provisions of paragraph (3) of this Article, and any other type of grain or grain product,
 suitable for human consumption and of an acceptable type and quality, that the Committee
 may decide.
 (3)     At the request of recipient countries, donors may provide limited quantities of pulses
 against their obligations under this Convention, provided these are of an acceptable type
 and quality and are suitable for human consumption. The Committee shall establish a Rule
 of Procedure to determine the maximum percentage of the wheat equivalent of members'
 minimum annual contributions, as set out in paragraph (4) of this Article, which may be
 provided in the form of pulses.
                                               ^
 ---pagebreak--- (4)     The minimum annual contribution, in wheat equivalent, of each member towards the
achievement of the objective of Article I is as follows, subject to paragraph (9) of this Article:
                   Member                                                      Tonnes
                   Argentina                                                    35,000
                   Australia                                                   300,000
                   Canada                                                      400,000
                   European Community and its
                    member States                                            1,755,000
                   Japan                                                       300,000
                   Norway                                                       20,000
                   Switzerland                                                  40,000
                   United States of America                                 4,470,000
(5)      For the purposes of the operation of this Convention, any member which has
acceded to this Convention pursuant to paragraph (2) of Article XX shall be deemed to be
listed in paragraph (4) of this Article together with its minimum contribution as determined
under the provisions of Article XX.
(6)      Contributions in the form of grains shall be placed in a f.o.b. forward position by
members. However, donors are encouraged, as appropriate, to bear the costs of
transporting their grain contributions under this Convention beyond the f.o.b. stage,
especially in emergency situations or in the case of shipments to low-income, food deficit
countries. Due reference to the payment of such costs shall be made in any review of the
performance of members in this Convention.
(7)      Cash contributions under sub-paragraph (b) of Article IV:
         (a)       shall be used, as far as possible, to buy grain from developing countries.
         Preference shall be given to developing members of the Grains Trade and Food Aid
         Conventions, with first priority to developing members of the Food Aid Convention.
         However, in all transactions resulting from cash contributions, special regard shall be
         had, when deciding on a source of supply, to the quality of the grain, the c.i.f. price
         advantages of using that particular supplier, the possibilities of speedy delivery to the
         recipient country and the specific requirements of the recipient country.
         (b)       shall not normally be made to purchase grain which is of the same type that
         the country that is the source of supply has received as bilateral or multilateral food
         aid in the same year as the purchase, or in a previous year if the grain then received
         is still being used.
                                               ^q
 ---pagebreak--- (8)       To the maximum extent possible, contributions shall be made by members on a
forward planning basis, so that recipient countries may be able to take account, in their
development programmes, of the likely flow of food aid they will receive during each year of
this Convention. Furthermore, members should, to the extent possible, indicate in advance
the amount of their contributions to be made in the form of gifts, and the grant element of
any aid which is not in the form of gifts.
(9)       If a member is unable to provide the amount specified in paragraph (4) of this Article
in a particular year, the unfulfilled amount shall be added to its amount in the following year,
unless the Committee decides otherwise owing to high transport costs.
(10) Members shall provide regular and timely reports to the Committee on the amount,
content, channelling and terms of their contributions under this Convention.
                                                  ARTICLE IV
                                     Terms of food aid contributions
          Food aid under this Convention may be supplied on any of the following terms:
          (a)     gifts of grain;
          (b)     gifts or grants of cash to be used to purchase grain for the recipient country.
          (c)     sales of grain for the currency of the recipient country which is not
                  transferable and is not convertible into currency or goods and services for
                  use by the donor members^
          (d)     sales of grain on credit, with payment to be made in reasonable annual
                   amounts over periods of 20 years or more and with interest at rates which are
                   below commercial rates prevailing in world markets^;
on the understanding that such aid shall be supplied to the maximum extent possible by way
of gifts, especially in the case of least developed countries, low per capita income countries
and other developing countries in serious economic difficulties.
 1/
    Under exceptional circumstances an exemption of not more than 10% may be granted. This limitation may
    be waived for transactions which are to be used for the expansion of economic development activity in the
    recipient country, provided that the currency of the recipient country is not transferable or convertible in less
    than 10 years.
^ The credit sales agreement may provide for payment of up to 15% of principal upon delivery of the grain.
                                                          5
 ---pagebreak---                                           ARTICLE V
                                Channelling of contributions
(1)     Members may, in respect of their contributions under this Convention, specify a
recipient country or countries.
(2)     Members may make their contributions bilaterally or through intergovernmental
organizations and/or non-governmental organizations.
(3)     Members shall give full consideration to the advantages of directing a greater
proportion of food aid through multilateral channels, in particular the World Food
Programme.
                                          ARTICLE VI
                                     Wheat equivalents
(1)     For the purposes of this Convention, all contributions under Article III shall be
evaluated in terms of their wheat equivalent. The evaluation shall take account, where
appropriate, of the grain content of grain products, and the commercial value of the
contribution relative to wheat.
(2)     Contributions of rice shall be evaluated in terms of wheat equivalent in accordance
with the international export price relationship between rice and wheat. The Committee
shall establish a Rule of Procedure for the annual determination of the wheat equivalent of
rice.
(3)     Contributions of cash under sub-paragraph (b) of Article IV shall be evaluated at
prevailing international market prices of wheat. The Committee shall establish a Rule of
Procedure for the annual determination of the "prevailing international market price".
(4)     The Committee shall establish Rules of Procedure for the determination of the wheat
equivalent of contributions made in forms other than wheat, rice or cash.
                                          ARTICLE VII
                 Impact on trade and agricultural production, and conduct
                                      of aid transactions
 (1)    Members undertake to conduct all aid transactions under this Convention in such a
way as to avoid harmful interference with normal patterns of production and international
 commercial trade.
                                               £<?
 ---pagebreak--- (2)      Members shall ensure in particular:
         (a)     that the provision of international food aid is not tied directly or indirectly to
                 commercial exports of agricultural products to recipient countries;
         (b)     that international food aid transactions, including bilateral food aid which is
                 monetised, shall be carried out in a manner consistent with the FAO
                 "Principles of Surplus Disposal and Consultative Obligations" including,
                 where appropriate, the system of Usual Marketing Requirements (UMRs).
(3)      Members shall, as appropriate, act in accordance with the current guidelines and
criteria for food aid, as approved by the governing body of the World Food Programme.
                                           ARTICLE VIII
                            Special provision for exceptional needs
(1)      The Committee shall keep the food situation in developing countries under regular
review.
(2)      If it appears that, because of a substantial food production shortfall, or other
circumstances, a particular country, region or regions is faced with exceptional food needs,
the Committee shall consider the matter. The Committee may recommend that members
should respond to the situation by increasing the amount of food aid available.
                                           ARTICLE IX
                                       Food Aid Committee
(1)      The Food Aid Committee, established by the Food Aid Convention of the
International Grains Arrangement, 1967, shall continue in being for the purpose of
administering this Convention, with the powers and functions provided in this Convention.
(2)      The membership of the Committee shall consist of all parties to this Convention.
(3)      The Committee shall appoint a Chairman and a Vice-Chairman.
                                            ARTICLE X
                            Powers and functions of the Committee
 (1)      The Committee shall keep under review the way in which the obligations undertaken
 under this Convention have been fulfilled;
                                                3^
 ---pagebreak--- (2)     The Committee shall exchange information on a regular basis on the functioning of
the food aid arrangements under this Convention;
(3)     The Committee may receive information from recipient countries and consult with
them;
(4)     The Committee shall issue reports as necessary;
(5)     The Committee shall establish such Rules of Procedure as are necessary to carry
out the provisions of this Convention;
(6)     In addition to the powers and functions specified in this Article, the Committee shall
have such other powers and perform such other functions as are necessary to carry out the
provisions of this Convention.
                                        ARTICLE XI
                                Seat, sessions and quorum
 (1 )    The seat of the Committee shall be in London.
 (2)    The Committee shall meet at least twice a year in conjunction with the statutory
 sessions of the International Grains Council. The Committee shall meet also at such other
 times as the Chairman shall decide; or at the request of three members; or as otherwise
 required by this Convention.
 (3)    The presence of delegates representing two thirds of the membership of the
 Committee shall be necessary to constitute a quorum at any session of the Committee.
                                        ARTICLE XII
                                          Decisions
         The decisions of the Committee shall be reached by consensus.
                                        ARTICLE XIII
                                   Admission of observers
         The Committee may, when appropriate, invite any non member state and
  representatives from other international organizations to attend its open meetings as
  observers.
                                               * »
 ---pagebreak---                                         ARTICLE XIV
                                Administrative provisions
        The Committee shall use the services of the Secretariat for the performance of such
administrative duties as the Committee may request, including the processing and
distribution of documentation and reports.
                                        ARTICLE XV
                                   Defaults and disputes
         In the case of a dispute concerning the interpretation or application of this
Convention, or of a default in obligations under this Convention, the Committee shall meet
and take appropriate action.
                               PART III - FINAL PROVISIONS
                                        ARTICLE XVI
                                         Depositary
        The Secretary-General of the United Nations is hereby designated as the depositary
of this Convention.
                                        ARTICLE XVII
                                          Signature
         This Convention shall be open for signature at United Nations headquarters from 1
May 1995 until and including 30 June 1995 by the Governments refenred to in paragraph (4)
of Article i l l .
                                             !>
 ---pagebreak---                                         ARTICLE XVIII
                            Ratification, acceptance or approval
         This Convention shall be subject to ratification, acceptance or approval by each
signatory Government in accordance with its constitutional procedures. Instruments of
ratification, acceptance or approval shall be deposited with the depositary not later than 30
June 1995, except that the Committee may grant one or more extensions of time to any
signatory Government that has not deposited its instrument of ratification, acceptance or
approval by that date.
                                        ARTICLE XIX
                                   Provisional application
         Any signatory Government may deposit with the depositary a declaration of
provisional application of this Convention. Any such Government shall provisionally apply
this Convention in accordance with its laws and regulations and be provisionally regarded as
a party thereto.
                                         ARTICLE XX
                                          Accession
(1)      This Convention shall be open for accession by any Government referred to in
paragraph (4) of Article ill that has not signed this Convention. Instruments of accession
shall be deposited with the depositary not later than 30 June 1995, except that the
Committee may grant one or more extensions of time to any Government that has not
deposited its instrument of accession by that date.
(2)      Once this Convention has entered into force in accordance with Article XXI, it shall
be open for accession by any Government other than those referred to in paragraph (4) of
Article III, upon such conditions as the Committee considers appropriate. Instruments of
accession shall be deposited with the depositary.
(3)      Any Government acceding to this Convention under paragraph (1) of this Article, or
whose accession has been agreed by the Committee under paragraph (2) of this Article,
may deposit with the depositary a declaration of provisional application of this Convention
pending the deposit of its instrument of accession. Any such Government shall provisionally
apply this Convention in accordance with its laws and regulations and be provisionally
regarded as a party thereto.
                                              UjO
 ---pagebreak---                                           ARTICLE XXI
                                        Entry into force
(1)      This Convention shall enter into force on 1 July 1995 if by 30 June 1995 the
Governments, whose combined minimum contributions, as listed in paragraph (4) of Article
III, equal at least 75% of the total contributions of all governments listed in that paragraph,
have deposited instruments of ratification, acceptance, approval or accession, or
declarations of provisional application, and provided that the Grains Trade Convention, 1995
is in force.
(2)      If this Convention does not enter into force in accordance with paragraph (1) of this
Article, the Governments which have deposited instruments of ratification, acceptance,
approval or accession, or declarations of provisional application, may decide by unanimous
consent that it shall enter into force among themselves provided that the Grains Trade
Convention, 1995 is in force.
                                          ARTICLE XXII
                              Duration, extension and termination
(1)      This Convention shall remain in force until and including 30 June 1998, unless
extended under paragraph (2) of this Article or terminated earlier under paragraph (4) of this
Article, provided that the Grains Trade Convention, 1995, or a new Grains Trade Convention
replacing it, remains in force until and including that date.
 (2)     The Committee may extend the Convention beyond 30 June 1998 for successive
 periods not exceeding two years on each occasion, provided always that the Grains Trade
 Convention, 1995, or a new Grains Trade Convention replacing it, remains in force during
the period of the extension.
 (3)      If the Convention is extended under paragraph (2) of this Article, the annual
 contributions of members under paragraph (4) of Article III may be subject to review by
 members before the entry into force of each extension. Their respective obligations, as
 reviewed, shall remain unchanged for the duration of each extension.
 (4)      In the event of this Convention being terminated, the Committee shall continue in
 being for such time as may be required to carry out its liquidation, and shall have such
 powers, and exercise such functions, as may be necessary for that purpose.
                                                 L^A
 ---pagebreak---                                              ARTICLE XXIII
                                     Withdrawal and rejoining
(1)     Any member may withdraw from this Convention at the end of any year by giving
written notice of withdrawal to the depositary at least ninety days prior to the end of that
year, but shall not thereby be released from any obligations incurred under this Convention
which have not been discharged by the end of that year. The member shall simultaneously
inform the Committee of the action it has taken.
(2)      Any member which withdraws from this Convention may thereafter rejoin by giving
notice to the Committee. It shall be a condition of rejoining the Convention that the member
shall be responsible for fulfilling its full annual obligations with effect from the year in which it
rejoins.
                                             ARTICLE XXIV
                            Relationship of this Convention to the
                            International Grains Agreement, 1995
         This Convention shall replace the Food Aid Convention, 1986, as extended, and
shall be one of the constituent instruments of the International Grains Agreement, 1995.
                                             ARTICLE XXV
                                     Notification by depositary
         The Secretary-General of the United Nations as depositary shall notify ail signatory
 and acceding Governments of each signature, ratification, acceptance, approval, provisional
 application of, and accession to, this Convention.
                                             ARTICLE XXVI
                                             Authentic texts
         The texts of this Convention in the English, French, Russian and Spanish languages
 shall all be equally authentic.
                                                   q<2-
 ---pagebreak---                                                                     ISSN 0254-1475
                                                             COM(95) 280 final
                                              DOCUMENTS
EN                                                                         11 03
                                     Catalogue number : CB-CO-95-311-EN-C
                                                              ISBN 92-77-90749-5
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