CELEX: 51981PC0409
Language: en
Date: 1981-07-14
Title: Proposal for a COUNCIL DECISION on the granting of exceptional food aid (commodities other than cereals, milk products or sugar) to Nicaragua (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (81) 409
Vol. 1981/0127
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                          COM(81)409 final
                                                          Brussels , 14 July 1981
                                          Proposal for a
                                         COUNCIL DECISION
       on the granting of exceptional food aid ( commodities other than
       cereals , milk products or sugar ) to Nicaragua
          ( submitted to the Council by the Commission )
                (§' « 7 ' " ■ I %- 'J)
                (:i         1 '        -
C0M<81 ) 409 final         <;ortl in "       :l
                    V' - .         L.-            ^
 ---pagebreak--- COMMUNICATION
  FROM THE COMMISSION
    TO THE COUNCIL
 CONCERNING A DECISION
  TO GRANT FOOD AID
     TO NICARAGUA
 ---pagebreak--- 1.    GENERAL SITUATION
The food situation in Nicaragua nearly two years after the fall of Somoza
continues to be difficult . The food shortage place a heavy foreign exchange
burden on the country and is impeding the implementation of development projects
needed for its recovery .
                                                              1
A deficit on the external balance of at least 2300 million is expected in 1981
in spite of the Government 's austerity policy, and this already substantial
deficit is further increased whenever basic 'food products are purchased abroad .
Bad weather , especially at the beginning of 1981 , and the crisis situation in
Central America ( absence of Salvadorian and Honduran labour , which has
traditionally provided supplementary agricultural manpower in Nicaragua, plus
                                         2
the influx of refugees from El Salvador ) have resulted in inadequate
agricultural output of both food products (mainly rice and red beans ) and
export produce ( coffee and cotton ).
The result is that Nicaragua has been unable to return to the surplus situation
in cotton or oil , its principal by-product for home consumption , which it
enjoyed prior to the disasters of the civil war .
Since the Revolution , the aid provided by the Community and its Member States
has been substantial and unconditional and thus doubly appreciated . The EEC
as such has been able to contribute actively, in the form of food aid and
financial and technical assistance , in Nicaragua 's recovery effort . In this-
context , Community aid amounting to approximately 25 million ECU has been
granted to Nicaragua since 1979 ( see Annexes ).
                                                                          ./.
( 1 ) Of which S190 million for foreign debt repayments , since the new
government of Nicaragua decided to take on the financial liabi lities of the
Somoza government .
( 2 ) Currently exceeds 20 000 .
 ---pagebreak---                                      -2-
Besides the economic problems facing , any developing country which has
experienced a civil war , Nicaragua is currently in a sensitive position
politically due principally to the troubled scene in Central America in
recent months .   It is against this background - which sets fully in perspective
the pluralist decision taken by the- Nicaraguan Government - that any appeal
for international aid must be judged .
Nicaragua , aware that previous European aid has been a factor of equilibrium
among the various aid contributions from abroad, has made a further request
to the Community for supplementary aid in the form of vegetable oil and
legumes .
                                                               1
The food aid approved by the Council decision of 19 May 1981 will be
delivered before the end of the summer . It will meet only part of Nicaragua 's
needs , the full extent of which is now apparent , and it is therefore necessary
that a decision be taken as quickly as possible concerning the new request .
2.    REQUEST
This concerns items hot traditionally supplied under food aid programmes
but which , apart from cereals ( maize and rice ), represent the basic diet
of the Nicaraguan population .
Nicaragua will become short of oil as from July and the greatest shortage
will be felt between September and November . The likely shortfall of
                                   i
10 000 tonnes of oil will cost a total of around 8 million ECU ( 29 million ).
With regard to legumes ( chiefly red beans ), there is likely to be a shortfall
in 1981 of over 20 000 tonnes , which will cost almost S20 million to provide .
                                                                       f
( 1 ) 10 000 tonnes of cereals , 2 000 tonnes of milk powder and 200 tonnes of
      butteroil .
 ---pagebreak---  3.   PROPOSAL
 Under its General Budget the Community is able to finance food aid in
 "other commodities ". For this purpose it is possible to effect a supplementary
 transfer to Article 923 " Food aid (other commodities )", for which
               1
3 945 000 ECU has already been made available .
Given the Community 's financial resources and Nicaragua 's expressed
requi rements , exceptional food aid amounting to 5 million ECU could be
granted to Nicaragua . Such aid would make a significant contribution in that
it would provide the Nicaraguan population with approximately one month 's
supply of oil and legumes ; this would correspond to about one-fifth of the
aid requested by Nicaragua .
In the interests of financing such aid rapidly, a transfer of 5 million ECU
should be effected within Chapter 92 under the 1981 Budget . As implementation
of the food aid programmes stands , this amount is currently available ; however ,
to ensure the proper implementation of the aid programmes adopted by the
Council , a proportion of which will be implemented in 1982, the appropriations
should be replenished under the 1982 Budget .
4.   DECISION
In conclusion, it is proposed that the Council approve the following
exceptional food aid for Nicaragua .
" In view of the situation in Nicaragua , exceptional food aid in the form of
other commodities , at a cost of 5 million ECU, shall be allocated to
Nicaragua for the supply of foodstuffs such as oils or legumes not covered
by the Community 's food aid programmes .
( 1)3 900 000 ECU for the purchase of oil as emergency aid for China, and
     45 000 ECU for the purchase of sundry products following the floods in
     Somalia .
 ---pagebreak---                                       -4-
     This aid shall be charged to Article 923 of the Budget - the necessary funds
     having been made available under this Article by internal transfer within
     Chapter 92 - under the 1981 Budget .     However > for the implementation of food
     aid decided on by the Council , the appropriation for Chapter 92 " Food aid"
     should be replenished in 1982 .
     The food aid decided on above shall be financed by the Community up to ... v
     " port of unloading " or " free at destination" in the case of land 'transport .
.    The Commission of the European Communities shall take the measures required
I    to implement this exceptional food aid scheme immediately ."
t                                       '
ί  ·        ■
1                                           ' ■ ν                              "
 |
 ---pagebreak---                               PROPOSAL
              FOR A    COUNCIL DECISION ON THE GRANTING
               OF EXCEPTIONAL FOOD AID '     ( COMMODITIES
              OTHER THAN CEREALS , MILK PRODUCTS OR SUGAR )
                ~           " TO NICARAGUA
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
and in particular Article 113 thereof ,
Having regard to the proposal from the Commission ,
Whereas the Community has received a request for exceptional food aid
in the form of commodities other than cereals > milk products or sugar ,
Whereas the Community should respond favourably to this request ,
HAS DECIDED AS    FOLLOWS :
                               Sole Article
Exceptional food aid in the form of commodities other than cereals , milk products
or sugar , at a cost of five million ECU , shall be allocated to Nicaragua
for the supply of foodstuffs such as oil legumes or other products not
covered by the Community 's regular food aid programmes .   Such aid shall
be charged to Article 923 of the General Budget of the Communities and
shall be delivered     free at destination .
                                   «
Done at Brussels ,                          For the Council
                                            The President
 ---pagebreak---                                                                                               ANNEXE 1
                           AIDES DE    LA    CEE      ACCORDEES    AU   NICARAGUA
                                              ( en   MIO ECU )
»
                                    •   Aides               TOTAL            !      Pour inform ation ( 1 )
                     Aides        financières                                       Fonds de         Total
                                                           APPORTS
                                                                                  contrepartie     apports
                alimentai res            et
                                                         BUDGETAIRES                   aide       finance­
                                  techniques                                       alimentaire        ment
                                                                                                   projets
                        a                b                c = a + b           S          d        e = b + d
       1979           4,4               2,5                   6,9             j        2               4,5
  :    1980           6,2               3,3                   9,5             ¡        5,5             8,8
       1981
    ( aides
      déjà            3' 1            ¿ 5,87                / 8,9?                     3             / 8,8?
    program-
      méés )
      SOUS-
    TOTAL
    ( aides
    déc idées-     ■ 13,7           711,6?                 725,3?     „         I     10,5         / 22 , 1 ?
    ou  en
    cours de
    décision )
    Aide com-
    plémen-
                      5                                                                4 ( 2)
    taire
    proposée
    TOTAL            18,7          /Ï1,ó7          S       730,3? -                  14,5          / 26,1 ?
    l-   Les fonds de coritrepartie de l' aide alimentaire ne constituent pas, un apport
         oudgétaire net . Toutefois , il est intéressant d' avoir une vue d' ensemble de
               tes fonds disponibles pour le financement des projets .
       ■ Estimation .
 ---pagebreak---                                                                              ANNEXE 2
                                        AIDES 1979
                                                                    Montants  (1)
                                                                U C  E     Dollars  US
 A. Dons  en nature
        Article 950 ( aide d' urgence )
           Semences                                             250.000       360.000
           Médicaments                                          200.000       285.000
                                                 Total 950      450.000       645,000
    -   Chapitre 92 ( aide alimentaire )
           Ai^e_i^di reçte
           *  50Q t riz , 100 t flocons d' avoine               360.000       525.000
           *  100 t lait en poudre
           Ajde_d2rect^e
           *  aliments mobilisés en Europe :                    930.000    1.350.000
              5.000 t céréales ( 900 t froment ,
                        1.345 t riz )
              500 t lait en poudre
           *  céréales mobilisées en Amérique                   710.000    1.025.000
              centrale :   5.000 t céréales
               ( 1.364 t farine , 1.130 t riz )
           *  2 MUCE pour achat autres produits
               ( article 923)(3.320 t haricots rouges ,
              35,2 t aliments pour enfants )                 2.000.000     2.860.000
                                                Total  CH 92 4.000.000     5.760.000
 B. Dons en espèces ( chapitre 930)
    Aide financière pour la reconstruction , le
    rééquipement du système national de collecte ,
    de stockage et de commercialisation des
    aliments de base                                         2.500.000    3.500.000
    TOTAL GENERAL APPORTS BUDGETAIRES      DIRECTS           6.950.000    9.905.000
 C. Fonds de contrepartie de l' aide alimentaire
        Centre de rééducation                                                600.000
        Participation à la campagne d' alphabétisation                    2.000.000
                                                Total                     2.600.000
(1) Aide alimentaire estimée aux prix mondiaux .
 ---pagebreak---                                                                                ANNEXE 3
                                          AIDES 1980
                                                                       Montants estimés ( 1 )
                                                                       U C E     Doltars US
  A.   Dons en nature
           Chapitre 92 ( aide alimentaire )
              3 ide _ indirecte
              300 t Lait en poudre                                       200.000      280.000
              *     1.000 t Lait en poudre                      ' -      654.000       910.000
              *     6.000 t céréales ( mais mobilisé au Guatemala )      835.000   1.170.000
              * autres produits ( haricots rouges , aliments
                    pour enfants , huile , etc. ..)                    3.500.000   A. 900 . 000
              *     t ransport                                           200.000       280.000
                                       Sous-total aide alimentaire
                                              programme normal :       5.389.000   7.540.000
              E£29IâI!)rn2_âi2!!3SQÍã2£S_^_§££2n)Eâa[]S!DSDÍ_£§n!Eã9Q§
              d ' a Iphabét i sat ion
              * 2.600 t céréales ( maïs mobilisé au Guatemala )          270.000       380.000
              *     600 t haricots rouges                                400.000       560.000
                                       Sous-total programme
                                              d' accompagnement :        670.000       940.000
                                                  Total CH 92          6.259.000   8.760.000
 B.  Dons en espèces          chapitre 930
     -   Projet d' assistance technique          2.800.000 UCE
         Etude palmier à huile :                    100.000 UCE
         Etude Waslala :                           -200.000 UCE        3.100.000   4.300.000
         Promotion commerciale                                           200.000      280.000
                  TOTAL GENERAL APP0RTS BUDGETAIRES DIRECTS            9.559.000 13.340.000
 C.  Fonds de contrepartie de l' aide alimentaire
         Financement pré-projet Waslala                •                          1.500.000
         Participation à L' effort d' éducation : construction
                                                         construc
         d' environ 100 écoles rurales                                            2.200.000
         Participation à l' effort de développement de la
         zone atlantique                                                              700.000
         Autres projets                                                           1 . 100.000
                                                                                  5.500.000
(1)  Aide    alimentaire estimée aux prix mondiaux .
 ---pagebreak---                                                                                        ANNEXE 4
                                          AIDES 1981
                                   ( Aides déjà programmées )
                                                                  Montants estimés           (1)
                                                                  ECU              Dollars US
   A.  Dons en nature
           Chapitre 92 ( aide alimentaire )     >
               (à défini r )
           •   aji de_d2£ê c t e                                 3.100.000        3.400.000
               *    10.000 t de céréales  ( 3.000 t de froment
                    CEE et 7.000 t équivalent céréales en riz
                    mobilisé au Costa Rica )
               *    2.000 t de lait en poudre
               *    200 t de butteroil
   B.  Dons en espèces ( chapitre 930 )
           Formation ( Enabas )  (2)                                 850.000' _ 930 . 00Ü
           Waslala ( développement rural intégré ) ( 3 )       / 5 . 000 . 0007 / 5 . 500 . 000 /
                   TOTAL GENERAL APPORTS BUDGETAIRES DIRECTS   / 8 . 95 0.000 // 9 . 83 0.000 /
   C.  F.onds de contrepartie de l' aide alimentaire
       Projets à . définir                                                       3.000.000
   D.  Proposition d' aide supplémentaire exceptionnelle
       Aide alimentaire en autres produits
       ( huile - légumineuses )                                 5.000.000        5.500.000
(1)   Aide alimentaire estimée aux prix mondiaux .
( 2)  Proposition de la Commission .
( 3)  Projets envisagés : financement à hauteur de 4 à 6 MI0 ECU .