CELEX: 51975PC0064
Language: en
Date: 1975-02-21
Title: PROPOSAL FOR A COUNCIL DECISION concerning the financing by the Community of certain expenditure on food aid supplied to Bissau Guinea and the Cape Verde Islands under the 1974/75 programme#PROPOSAL FOR A REGULATION (EEC) OF THE COUNCIL laying down rules for the supply of skimmed milk powder as food aid to Bissau Guinea dn the Cape Verde Islands#PROPOSAL FOR A REGULATION (EEC) OF THE COUNCIL laying down general rules for the supply of butteroil as food aid to Bissau Guinea and the Cape Verde Islands#PROPOSAL FOR A COUNCIL DECISION on the opening of negotiations with Bissau Guinea and the Cape Verde Islands for the supply of skimmed milk powder and butteroil as food aid, and on the advanced implementation of the agreement negotiated with the country (submitted to the Council by the Commission)

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DOCUMENTS "COM"
COM (75) 64
Vol. 1975/0024
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 ---pagebreak---        COMMISSION OF THE EUROPE AN COMMUNITIES
                                                              COM(75)64 final
                                                              Brussels , 21 February 1975
                                      PROPOSAL FOR A
                                     COUNCIL DECISION
  concerning the financing by the Community of certain expenditure on food aid
supplied to Bissau Guinea and the Cape Verde Islands under the 1974/ 75 programme
                                      PROPOSAL FOR A
                            REGULATION ( EEC ) OF THE COUNCIL
      laying down rules for the supply of skimmed milk powder as food aid
                    to Bissau Guinea dn the Cape Verde Islands
                                      PROPOSAL FOR A
                            REGULATION ( EEC ) OF THE COUNCIL
      laying down general rules for the supply of butteroil as food aid
                   to Bissau Guinea and the Cape Verde Islands
                                      PROPOSAL FOR A
                                     COUNCIL DECISION
 on the opening of negotiations with Bissau Guinea and the Cape Verde Islands
  for the supply of skimmed milk powder and butteroil as food aid , and on the
      advanced implementation of the agreement negotiated with the country
                      ( submitted to the Council by the Commission)
  COivI(75 ) 64 final
 ---pagebreak---       COMMISSION COMMUNICATION TO
THE COUNCIL CONCERNING A POOD AID
ACTION FOR GUINEA BISSAU AND CAPE
           VERDE ISLANDS
 ---pagebreak---                             Communication from the Commission to the Council
I – Food aid to Guinea Bissau
     1 . In these first months of its independence (obtained in September 1°74 )
          Guinea Bissau is faced with difficult economic problems , among the
          most serious of them the inadequacy of its food supplies .     The
          circumstances preceding its independence resulted in the total dis­
          organization of the food crop production of certain regions ; efforts
          to reorganize the production and marketing of agricultural products
           ( seotors oocupying more than 90% of $he labour force ) have as yet not
          produced adequate results .
          Lacking the means of payment enabling it to buy food products on
          foreign markets , the Guinea Bissau Government has approached the
          Cemmunity with a request for aid to face its difficulties b;- pro­
          curing it food aid in the form of cereals , milk products and sugar .
          The Commission considers that the Community should respond favour­
          ably (with the exception of sugar , for which the necessary appropria­
          tions were not provided in the 1975 budget ) to the request made by
          this country , which incidentally indicated its desire to develop clone
          relations with the EEC , since it decided as early as December 1 974
          to join the grovp of ACP countries and will be a signatory to the
          future Lome Convention .
    2.    Statistics concerning the country 's supplies are difficult to
          collect .    Its administration is still weak and its fact-finding
       '?                           '
          machinery is particularly limited .    The information supplied by
          the Ministry of Finance shows , however , that for cereals and in
                                                                             1
          particular rice , which constitutes the population 's staple diet ,
          consumption is estimated to exceed production by 30 000 metric tonr
          (production 70 000 t , consumption 100 000 t ).
 Annual imports of rice amounted to approximately 25 000 metric tons
before independence .
 ---pagebreak---                                                                         2.
          To help -offset this deficit , the Commission considers it reasonable
          to propose a grant of 3 000 metric tons of cereals ,, which would
          correspond to    three months * consumption (on a "basis of 10 leg/
          month ) for about 100 000 persons .
          For milk products no overall figure is as yet available .     The
          Guinea Bissau atvthorities have , however , indicated not only that
          there were normal supply needs not covered by production , but also
          that they wished to make free distributions of food to school­
          children .
         The Commission considers that the Oommunity should grant 250
         metric tons of skimmed-milk powder to this country , an amount
         which would correspond to its annual imports in normal years and
         XTOuld , on the basis of the criteria taken into consideration
         under the 1974 milk programme , cover the minimum requirements of
          100 000 persons for three months .-
         As regards butteroil , the authorities stated that there was consi­
         derable demand for oils and fats as the production of groundnuts
         was waning .    The Commission considers that this request should be
         met by granting 360 metric tons of butteroil ;     on the basis of the
         criteria taken into account when the 1975 butteroil programme wan
         drawn up this would correspond to the daily consumption of approx­
         imately 100 000 persons for six months .
         The quantities proposed should be charged against :
         i.   the reserve of 29t500 metric tons provided for im&er the 1974/ 75
              oereals programme ;
         ii . the milk products programmes planned for 1975 ( as an advance ) ,
         The estimated cost of these operations and the budget item against
         which it would be charged are given in the attached finanoial annex .
2
  Out of a total population estimated at approximately 600 000 .
 ---pagebreak---        3. The Guinea Bissau authorities , who have set up a distribution
           system b aed on a network of stores serving the population and
           permitting some oontrol of the level of consumer prices , wish to
          "be authorized to sell 75$ of the products supplied "by the Community
                               1
          through this network , the rest to be distributed free of charge to
           sections of the population which have no purohasing power or are
          particularly vulnerable (for instance milk to school-children).
      4.  In view of Guinea Bissau 's particularly difficult financial situa/~
          tion the Commission proposes that the Community bear the cost of
          transporting the proposed aid cif .
 II - Food aid to the Cape Verde Islands
      The Cape Verde Islands , which are at present under the joint admini­
      stration of the African Party for the Independence of Guinea Bissau
      and the Cape Verde Islands and the Portuguese authorities , are in a
      situation which is perhaps still more serious than that of Guinea
      Bissau .
Under the arrangement s normally required by the Community ( counterpart fund )
 ---pagebreak---                                                                          4.
        According to information communicated "by UHDRO , annual consumption
        of cereals amounts to approximately 50 000 metric tons*; estimates
        of milk product requirements are not available at present .
       As food requirements will have to "be covered entirely "by imports
        and as it is possible that the aid granted by Portugal in the pant
        ($ 30 million in 1974 , mainly for the purchase of food products )
       may be reduced sharply , the transitional Government has appealed ,
       through the UN , to the international community for aid of approxi­
       mately $ 20 million , mainly to cover the population 's food require­
       ment s .
                                               « '
       According to present information , the WPP has made provision for .
       $ 2.1 million of aid for the supply of cereals as part of develop­
       ment projeots ;    Senegal has made an emergency delivery of 1 000
       metrio tons of maize .
       The President of the Republic of Senegal has approached the Comm­
       ission on the subject of the difficulties facing the population of
       the Cape Verde Islands and has urged the Community to grant it
       food aid .
       The Commission considers that this request should be met by the
       grant , as an initial measure and pending additional information ,
       on a cif basis of :
             1 500 metric tons of cereal
                150 metric tons of milk powder
                100 metric tons of butteroil .
       These quantities would enable the authorities of the Cape Verde
       Islands to deal with the most pressing needs .
For a population of 260 000 .
 ---pagebreak--- In conclusion , the Commission proposes that the Council :
i.    Décidé to grant :
           food aid m the form of 3 000 t of cereals , 250 t of
           skimmed-milk powder and 350 "b      hutteroil to Guinea
           Bissau ;                                           >
           food aid in the form of 2 500 t of cereals , I5O t of
           milk and 100 t of butteroil to the Cape Verde Islands .
ii .  Bear the transport costs to the cif stage for these products .
iii . Authorize the advance implementation of these operations .
iv .  Adopt in consequence :
           The proposal for a Counoil Decision on the financing by
           the Community of expenditure concerning food aid for
           Guinea Bissau and the Cape Verde Islands supplied under
           the 1974/1975 programme .
           The proposal for a. Council Regulation (EEC ) No      laying
           down general rules for the supply of skimmed-milk powder
           as food aid to Guinea Bissau and the Cape Verde Islands .
           The proposal for a Council Regulation (EEC-). JTo    laying
           down general rules for the supply of milk fats as food
           aid to Guinea Bissau and the Cape Verde Islands .
           The proposal for a Council Decision on -the opening of
           negotiations with Guinea Bissau and the Cape Verde ■
           Islands for the supply of skimmed-milk powder and "butter-
           oil . as food aid , and the advance implementation of the
           agreements negotiated with those countries .
These proposals are annexed to this document .
 ---pagebreak---                                                 FINANCIAL ANNEX
                             Cost at interior community prices and budgetary attribution
                                Quant îty     Unit price             Total value        Budget ary
                              metric tons        ua/T                      ua           attribution
  BISSAU GUINEA
  Cereals
  Raw materials                   3-000           140 ■"               420.000    ) budget 75
  Transport                       3 000             40                  120.000   \ items 9201 , 6001
                                                                                  ' and 6101
  Skimmed milk powder
  Raw niaterials                    250           835, 5^              208.875    ) budget 75
                                    250            120                   30.000
                                                                                  ) items 9211 and 6201
  Transport
  Butteroil
  Raw material                      350        2 351 2 )               822 850    ) budget 75
  Transport                         350           130                    45 500
                                                                                  ) items 9212 and 6201
  Total                                                            1   647 225
                                 \
                                                                I
  CAPE VERDE
  Cereals
  Raw material ^                  2 500           140 3 '             350 000      )budget 75
                                 2 500              40                100 000
                                                                                   ) items 9201 , 6001
  Transport                                                                        ) and 6101
  Skimmed milk powder                                                     '
  Raw material                      150           835, 51 '           125 325    ) budget 75
 Transport                          150           120                  18 000    ^ items 9211 and 6201
 Butteroil
                                    100        2 351 2 >             235 100     ) budget 75
  Raw material
                                                                                 ) items 9212 and 6201
 Transport                          100           130                  13 000
 Total                                                               841.425
                                          i
                                            aaasas8SsasaaB38sac
  GRAND TOTAL                                                     2 488 650
1 ) Intervention price 74/75 829,5 ua/T + delivery fob (6 ua/ T)
2 ) Derived intervention price , including cost of transformation : 2 435 ua/T + delivery FOB
    (6 ua/T )
3 ) Market price ( 136 ua/T) calculated at the average target price from January to July 74 +
    delivery FOB (4 ua/T ).
 ---pagebreak---                               Proposai for a
                             COUNCIL DECISION
                           »
                concerning the financing "by the Community of
                oertain expenditure on food aid supplied to
                Bissau Guinea and the Cape Verde Islands
                under the 1974/75 programme .
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community }
Having regard to Council Regulation (EEC) no. 1703/72^^ of 3 August 1972
amending Regulation ( EEC ) no. 2052/69 concerning the financing "by the
Community of expenditure resulting from the implementation of the Pood Aid
Convention of 1967 and fixing the Regulations for the Financing "by the
Community of expenditure arising from the implementation of the 1971 Pood
Aid Convention, and in particular Article 8 ^^ and Article 10^^ thereof;
Having regard to the proposal from the Commission ;         .
Whereas , in view of the economic difficulties which exist in Bissau Guinea
and the Cape Verde Islands , the Community should bear the oosts of delivering
cif food aid in the form of cereals ,
HAS DECIDED AS F0LL0WS :
                             ' Sole Article
For the purpose of the Community 's food-aid activities in respect of Bissau
Guinea and the Cape Verde Islands under the 1974/75 Pood Aid Programme
Community finanoing shall extend to the cost of delivering the products cif.
Done at Brussels ,
                                                 For the Council
                                                  The Président
( l ) O.J. no. L 180, 8.8.1972 , p. 1
 ---pagebreak---                                                                                     î
                        PROPOSAI, FOR A        •                                    '
                                                                                     t
               REGULATION ( EEC ) NO .    OF THE COUNCIL                             |
           laying down rales for the supply of skimmed-milk powder
           as food aid to Bissau Guinea and the Cape Verde Islands .
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community,
Having regard to Council Regulation ( EEC ) No . 804/68 ( l ) of 27 June 1968 on
the common organization of the market in milk and milk products , as last amended
by Regulation ( EEC ) No . 662/74 ( 2 ), and in particular Article 7 ( 4) thereof ;
Having regard to the proposal from the Commission ;
Whereas Bissau Guinea and the Cape Verde Islands indicated their requirements
as regards high-protein milk products ; whereas these high-protein products may
be supplied in the form of skimmed-milk powder stocked by the intervention
organisations ;
Whereas the supply of skimmed-milk powder must take into account the amounts of
skimmed-milk powder available in the Community and the need to avoid disturbing
the market | that the amounts at present available enable 400 metric tons of
skimmed milk powder to be supplied ;
Whereas , to enable the aid to be used effectively, arrangements should be made
to finance delivery to the cif stage ;
Whereas the supplies must be delivered at the lowest possible price ; whereas
in order to achieve that aim, a tendering procedure should be provided for ;
whereas , however, it may be desirable , in the interests of flexibility and
speed , to have recourse to contracts by mutual agreement ;
( 1 ) O.J. No . L 148 , 28.6.1968 , p . 13
( 2 ) O.J. No . L 85 , 29.3.1974 , p. 5
 ---pagebreak---                                     - 2 -
   HAS ADOPTEE THIS REGULATION :
                                    Article 1
  There shall be made available as food aid to Bissau Guinea and the Cape Verde
• Islands 350 metric tons of skimmed-milk powder :
                                                           (metric tons )
                     Bissau Guinea                             250
                     Cape Verde Islands                        15'0
                                   Article 2
  1 . The skimmed-milk powder referred to in Article 1 shall be purchased in
  accordance wiih Article 7 ( l ) of Regulation ( EEC ) NO . 804/68 .
                                   Article 3
  For the purposes referred to in Artiole 1 , the cost of the labelling and
  delivery of the skimmed-milk powder to the cif-stage shall be borne by the
  Community.
                                   Article 4
  The expenditure referred to in Article 3 , shall in principle be determined
  by tendering procedure , or , if the circumstances warrant it , by contracts by
  mutual agreement .
                                   Article 5 '
  This Regulation shall enter into force on the third day following its publication
  in the Offioial Journal of the European Communities .
  The Regulation shall be binding in its entirety and directly applicable in all
  Member States .
  Done at Brus se la ,
                                                              For the Council
                                                              The Président
 ---pagebreak---                          PROPOSAL FOR A
                       REuJLATION ( EEG )       OP THE COUNCIL
           laying down general rules for the supply of butteroil as food
           aid to Bissau Guinea and the Cape Verde Islands .
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ;
Having regard to Council Regulation ( EEC ) No . 804/68 ( l ) of 27 June 1968 on
the common organization of the mark&t in milk and milk products , as last
amended "by the.Regulation (EEC) No. 662/74^^ a^d j.n particular Article 6 (6 )
thereof ;
Having regard to the proposal from the Commission ;
Whereas Bissau Cuinea and the Cape Verde Islands have indicated their requirements
as regards milk fats ;
Whereas it will not be possible to dispose of the quantities of butter held by
intervention agencies on normal terms during the current mdlk year ; whereas
it is possible to supply food aid in the form of butteroil ,. made from butter
 in public stocks ;
Whereas to enable effective use to be made of the aid , provision should be
made for the financing of transportation to the cif-stage ;
Whereas the amount to be paid to undertakings manufacturing the butteroil and
certain transport costs for the butter and butteroil should be determined by
competition among interested undertakings established in the Community ; whereas
the inviting of tenders is a suitable means of achieving this aim , but for the
sake of speed it may be desirable to deal with exceptional cases by contracts
by mutual agreement .
( 1 ) O.J. No . L 148 , 28.6.1968 , p. 13 .
(2 ) O.J. No . L 85 , 29.3.1974 , P. 5 .
 ---pagebreak--- _ HAS ADOPTED THIS REGULATION :
                                       Article 1
   45O metric tons of butteroil shall be made available to Bissau Guinea and the
   Cape Verde Islands , made from butter held by the intervention organisations
  as follows :
                      Bissau Guinea               350 metric tons
                      Cape Verde Islands          100 metric tons
                                       Article 2
  The . Community will finance the cost of transforming the butter into butteroil ,
  its packaging, labelling and transportation costs from the factory to the cif
  stage .
                                       Article 3
  Tenders shall be invited for the expenditure incurred under article 2 , or , if
  the circumstances warrant it , by contracts by mutual agreement .
                                       Article 4
  The sums to be paid to the undertaking chosen shall be due only if :
  (a ) the undertaking satisfies the conditions laid down in the invitation to
        tender or the private contract ;
       and                                  ,
  (b ) the quality and packing of the delivered product are found on inspection
       to comply with the relevant Community provisions .
  Provision may be made for partial advance payment of such sums .
                                      Article 5
 This Regulation shall enter into force on the third day following its publication'
  in the Official Journal of the European Communities .
 This Regulation shall be binding in its entirety and directly applicable
 in all Member States .
 Done at Brussels ,
                                                        For the Council
                                                          The Président
 ---pagebreak---                                      Prop®sal for a
                            Council decision on the opening of
                  negociations with Bissau Guinea and the Cape
                  Verde Islands for the supply of skimmed-milk
                  powder and butteroil as food aid , and on the
                  advanced implementation of the agreement
                  negociated with the country.
 THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
 Having regard to the Treaty establishing the European Economic Community, and
 in particular Articles 113 | 114 and. 228 thereof ;
Having regard to the proposal from the Commission ;
Whereas supplies of skimmed-milk powder and butteroil are necessary for Bissau
Guinea and the Cape Verde Islands because of the food crisis in these countries ;
that it is advisable to reply positively to this orisis with a total of 4-00
metric tons of skimmed-milk powder and 450 metric tons of butteroil and to
authorize the Commission to open negotiations with these countries .
Whereas , in the interests of speed , the Commission should be authorized to begin
the supply of skimmed-milk powder and butteroil upon conclusion of the negotiations ;
HAD DECIDED AS F0LL0WS ï
                                  Article 1
The Commission is authorized to negotiate in the name of the European Economic
Community with Bissau Guniea and the Cape Verde Islands agreements for the supply
of skimmed-milk powder and butteroil as food aid .
The negotiations shall be conducted in accordance with the following Regulations :
(a ) skimmed-milk powder :
     Council Regulation (EEC ) No.        of _      establishing the general regulations
     for supplying skimmed-milk powder , as food aid , to Bissau Guinea and
     the Cape Verde Islands ( l )
(b ) butteroil s
     Council Regulation ( EEC ) NO .     of         establishing the general regulations
  . fox supplying milk fat products to Bissau Guinea and the Cape Verde Islands (2 )
 ---pagebreak---                             Article 2
The Commission is authorized to begin the supply of skimmed-milk powder and
butteroil upon conclusion of the negotiations .
Done at Brussels ,
                                                  For the Council
                                                   The Président
  ( 1 ) O.J.
( 2 ) O.J.