CELEX: 51971PC1122
Language: en
Date: 1971-10-08
Title: AGREEMENT BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE REPUBLIC OF INDONESIA ON THE SUPPLY OF WHEAT OTHER THAN DURUM AS FOOD AID

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (71) 1122
Vol. 1971/0185
 ---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---                .  COMMISSI® (F THE EUROPEAN Cra-5MuwITlES
                                        COM(7l)1122 final
                                        Bruselles , 8 october 1971
                                 AGREEMENT
                 BETWEEN" THE EUROPEAN ECONOMIC COMMUNITY
                      AND THE REPUBLIC OF INDONESIA
                 ON THE SUPPLY OF WHEAT OTHER THAN DURUM
                                AS FOOF AID
COM(7l ) 1122 final
 ---pagebreak---  THE COUNCIL OP THE EUROPEAW COMMUNITIES ,
                          on the one hand , and
THE GOVERNMENT OP THE HEFUELIC OP INDONESIA ,
                           on the other hand ,
HAVE DECIDED to conclude the present Agreement and have,
for this purpose , appointed as their plenipotentiaries :
THE COUNCIL OP THE EUROPEAN COMMUNITIES :
THE GOVERNMENT OP THE REPUBLIC OP INDONESIA :
WHO HAVE AGREED upon the following provisions
 ---pagebreak---                               ARTICLE I
      Under its food aid programme for cereals for the year 1970/1971 ,
the European Economic Community shall , in accordance with the decision,
taken by the Council on 6 April 1971 > make the Republic of Indonesia a
gift of                     26,800 tons of wheat other than durum (herein­
after referred to as "wheat " ) .
      Deliveries shall "be made in. bulk f . o.b. Comnunity porto *
      The Commission of the European Communities shall inform the .
Republic of Indonesia 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
Republic of Indonesia 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 Republic of Indonesia undertakes to make all necessary-
arrangements for transporting the wheat 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 pre­
judicial to the free play of fair competition . Any problems arising in
this connection shall be the subject of consultations under Article VIII
of the present Agreement .
                           ARTICLE III
     The Republic of Indonesia undertakes to use for food purposes
the wheat  that is supplied as aid and to apply to sales of this wheat 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 Indonesian market , shall be paid into a special
account intended to cover expenditure incurred by the Republic of
Indonesia in connection with the financing of development projects .
 ---pagebreak---                                    ARTICLE   IV
      The Contracting Parties undertake to implement the present Agreement
in such a way as to avoid prejudicing the normal structure of national pro­
duction and international trade . To this endf 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
been expected in the absence of such supplies .          ...  ■ 1       . . "
       ♦"■ Ull v     •
                                   ARTICLE   V
      The Republic of Indonesia shall take all necessary steps to prevent
the re-exportation both of the wheat received as aid , of products of the
first processing stage and of by-products obtained therefrom as well as
the exportation , commercial or otherwise , within a period of six months
from the date of the last delivery , of locally grown wheat of the same
type as that received as aid of products of the first processing stage
and by-products obtained therefrom .
 ---pagebreak---                                   ARTICLE VI
        The Republic of Indonesia 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 European C ommunities :
1 . Transport s ports and dates of arrival of vessels | nature , quantity
    and quality of the produce unloaded \        date on which Unloading is
     completed !
2 . Marketing s quantities soldf method of marketings selling pricee ;
3-    -       ■    '■ '    "•••      • "     '             ?   -•  •• * ■
      orme .     •      •"    ^urc -           . ' Ie
    Situation with regard to the special account set up with the proceeds
    of the sale , in local currency of the wheat supplied as aid ;
4 . Projects financed from the special account j 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 : no    more than 30 days after the unloading
  of each cargo ;
- With regard to other information t a report on the situation at
  31 December each year shall be communicated before 15 January ot
  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 Contracting Parties
shall consult on all matters concerning the application of the present
Agreement .
                             ARTICLE IX
     The present Agreement is drawn up in duplicate in the German ,
French , Italian , Dutch and English languages , each of the texts being
equally authentic .
 ---pagebreak---                                                         ANNEX
                    CONDITIONS APPLICABLE TO THE HANDING OVER
                      OF THE WHEAT AT THE PORTS OF SHIPMENT
      To ensure the smooth operation of the Agreement and xn partxcular
of Article I thereof , the Contracting Parties have agreed as follows s
                               ARTICLE I
      Except as otherwise provided in Article 3 , sixth paragraph , delivery-
will he deemed to     have been effected once the goods have -.. .effect
tively passed the ship 's rail at the port of shipment f all costs of stowage
and securing shall "be "borne "by the Republic of Indonesia .
                               ARTICLE 2
      iioccept as otherwise provided in Article 3 , sixth paragraph , risks
shall pass frcxn the European Economic Community to the Republic of
Indonesia at the moment at which the goods have effectively passed the
ship 's rail at the port of shipment .
                                                                              t
 ---pagebreak---                              ARTICLE 3
      The Republic of Indonesia shall procure and notify to the European
Economic Community , in good time , the vessels which are to ship the
goods , so that the loading dates indicated in accordance with Article I
of the Agreement may "be respected .
     Vessels must be designated by the Republic of Indonesia at least
7 clear days prior to the estimated date of arrival in port . The
Republic of Indonesia shall be responsible for any consequences arising
either from failure to designate /- vessel or from delay in doing so .
      The Republic of Indonesia shall insert in each charter-party 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 Republic of Indonesia
in the port indicated from the date on which the ship is declared ready fo:
loading . In the event of the European Economic Community not placing the
goods at the disposal of the vessel in good time , any consequences resultin
therefrom in particular demurrage and/or dead freight , shall be at
on the European Economic Community .
 ---pagebreak---      Should there be a delay in the arrival of a vessel designated by
the Republic of Indonesia 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 Republic
of Indonesia .
     Should the Republic of Indonesia 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 European Economic Community by telegram , not later than the last day
of the period fixed for delivery , that it is seeking an extension of this
period . Where  such   extension is sought , the European Economic Community
shall hold the goods on behalf of the Republic of Indonesia , expenses resul­
ting from this being borne by the latter .             '
     The Republic of Indonesia shall be responsible for any consequences
resulting from the fact that the dimensions of a vessel " supplied by it
do not correspond to the loading    capacity     of the port of shipment *
 ---pagebreak---                               ARTICLE 4
     The tolerance on shipment of the quantities notified in accordance
with Article I of the Agreement shall "be 5      although the total quantity
of 26.800  tons shall in no case he . exceeded .
     If , however , the quantity made available for loading on a given
vessel cannot "be put on board in its entirety because of circomstances
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 Republic of Indonesia and shipped on the
next vessel .       .
     If the Republic of Indonesia informs the European Economic Community
within a period of 15 clear days that it is not - taking delivery of this
balance , the handling and storing expenses incurred shall be borne by
the Republio of Indonesia 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 Republic of Indonesia .
 ---pagebreak---                              ARTICLE 5
     Once the goods are on "board  a   vessel , the European .Economic
Community shall notify the Republic of Indonesia 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 Republic of Indonesia .
                             ARTICLE 7
     The Contracting Parties reserve the right to nominate one or more
agents to execute the Agreement .
     To deal with any eventualities , the Republic of Indonesia shall
nominate a representative in each port of shipment .