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quarter, 60 percent in the first two quarters, and 80 percent in the first three quarters of the coffee year. If exports by any Member in one quarter are less than its quota for that quarter, the outstanding balance shall be added to its quota for the following quarter of that coffee

year.

ARTICLE 38

Compliance with Export Quotas

(1) Exporting Members subject to quotas shall adopt the measures required to ensure full compliance with all provisions of the Agreement relating to quotas. In addition to any measures it may itself take, the Council by a distributed two-thirds majority vote may require such Members to adopt additional measures for the effective implementation of the quota system provided for in the Agreement.

(2) Exporting Members shall not exceed the annual and quarterly export quotas allocated to them.

(3) If an exporting Member exceeds its quota for any quarter, the Council shall deduct from one or more of its subsequent quotas a quantity equal to 110 percent of that excess.

(4) If an exporting Member for the second time while the Agreement remains in force exceeds its quarterly quota, the Council shall deduct from one or more of its subsequent quotas a total amount equal to twice that excess.

CHAPTER 10. REGULATION OF IMPORTS

Regulation of Imports

ARTICLE 45

(1) To prevent non-member exporting countries from increasing their exports at the expense of Members, each Member shall limit its annual imports of coffee produced in non-member exporting countries to a quantity not in excess of its average annual imports of coffee from those countries during the calendar years 1960, 1961 and 1962.

(2) The Council by a distributed two-thirds majority may suspend or vary these quantitative limitations if it finds such action necessary to further the purpose of the Agreement.

(3) The Council shall prepare annual reports of the quantity of permissible imports of coffee of non-member origin and quarterly reports of imports by each importing Member under the provisions of paragraph (1) of this Article.

(4) The obligations of the preceding paragraphs of this Article shall not derogate from any conflicting bilateral or multilateral obligations which importing Members entered into with non-member countries before 1 August 1962 provided that any importing Member which has such conflicting obligations shall carry them out in such a way as to minimize the conflict with the obligations of the preceding paragraphs, take steps as soon as possible to bring its obligations into har

mony with those paragraphs, and inform the Council of the details of the conflicting obligations and of the steps taken to minimize or eliminate the conflict.

(5) If an importing Member fails to comply with the provisions of this Article the Council by a distributed two-thirds majority may suspend both its voting rights in the Council and its right to have its votes cast in the Board.

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Guinea (basic export quota to be established by the Council).

Haiti

Honduras

India

Indonesia

Ivory Coast

Kenya

Malagasy Republic

Mexico

Nicaragua

Peru

Portugal

Rwanda 2

Tanzania

Togo

Uganda

Venezuela 2

Grand total

20, 926

233 1,000

200

7,000 1,000

1, 100

520

750 1,900

1, 494

1, 800

490

425

423

1,357

3, 073

860

910

1,760

550

740

2,776

150

700

200

2, 379

325

55, 041

1 According to the provisions of article 31(1), the following exporting countries do not have a basic export quota and shall receive in coffee year 1968-69 export quotas of: Bolivia 50,000 bags; Congo (Brazzaville) 25,000 bags; Cuba 50,000 bags; Dahomey 33,000 bags; Gabon 25,000 bags; Ghana 51,000 bags; Jamaica 25,000 bags; Liberia 60,000 bags; Nigeria 52,000 bags; Panama 25,000 bags; Paraguay 70,000 bags; Sierra Leone 82,000 bags; Trinidad and Tobago 69,000 bags.

2 Burundi, Congo (Democratic Republic), Cuba, Rwanda and Venezuela, after presentation to the Executive Board of acceptable evidence of an exportable production larger than 233,000; 1,000,000; 50,000; 150,000 and 325,000 bags respectively shall each be granted an annual export entitlement not exceeding the annual export entitlement it would receive with a basic quota of 350,000; 1,300,000; 200,000; 260,000 and 475,000 bags respectively. In no event, however, shall the increases allowed to these countries be taken into account for the purpose of calculating the distribution of votes.

ANNEX B

Non-quota countries of destination referred to in Article 40, Chapter 7 The geographical areas which are non-quota countries for the purpose of this Agreement are:

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NOTE. The abbreviated names above are intended to be of purely geographical significance and to convey no political implications whatsoever.

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* Basic votes not attributable to individual contracting parties under article 5(4)(b).

83-8770 0-72- -24

c. An Act To Extend the International Coffee Agreement of 1968

Public Law 92-262, 92d Congress, An Act to continue until the close of September 30, 1973, the International Coffee Agreement Act of 1968, was signed on March 24, 1972. See Part VI, Legislation, p. 463.

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