1 Following the agreement entered into between the Board of For-
eign Trade, Ministry of Economic Affairs, Republic of China,
and the Maize Board in January 1973 and in view of the fact t-
hat the Board of Foreign Trade and the Maize Board have reaff-
irmed their desire to foster and expand the trade in maize be-
tween the Republic of China and the Repbulic of South Africa,
a delegation headed by Mr. Y. T. Wong, Director-General of the
Board of Foreign Trade, Republic of China, negotiated with the
Export Committee of the Maize Board during the period 29 Sept-
ember to 7 October 1975.
2 The negotiations were conducted in a spirit of mutual co-oper-
ation and understanding and culminated in this Agreement. It
is understood that both the Board of Foreign Trade and the Ma-
ize Board are desirous of entering into a new Agreement after
expiry of this Agreement.
3 It is mutually agreed between the Board of Foreign Trade and
the Maize Board that the maize trade between the Republic of
China and the Republic of South Africa for the period of 1 Ju-
ne 1976 to 31 May 1979 be conducted on the following terms and
conditions:
Validity of Agreement
4 The Agreement shall be valid from date of signing until such
date as all shipments contemplated in this Agreement have been
effected, and the obligations under this Agreement have been
discharged.
Quantity
5 The total quantities of maize which the Maize Board undertakes
to sell to the Board of Foreign Trade for shipment during the
periods indicated below are as follows:
Period
1 June 1976 to 31 May 1977
1 June 1977 to 31 May 1978
1 June 1978 to 31 May 1979
Quantity
450 000 metric tons
450 000 metric tons
450 000 metric tons
Provided that
(1) if the Maize Board's exportable surplus for the period co-
ncerned is less than three times the quantity to be suppl-
ied in terms of this Agreement to the Board of Foreign Tr-
ade for that particular period the quantity concerned sha-
ll be adjusted proportionately;
(2) the Maize Board shall at least 10 weeks prior to the comm-
encement of each of the above-mentioned periods advise the
Board of Foreign Trade of the extent to which the quantit-
ies mentioned in this paragraph shall be adjusted in terms
of proviso (1) above:Provided further that if it should p-
rove on or before 31 August of a particular period that t-
he exportable surplus was overestimated by the Maize Board
when advising the Board of Foreign Trade of the extent to
which the quantity for the period concerned is adjusted a-
nd the actual exportable surplus is less than twice the q-
uantity to be supplied by the Maize Board to the Board of
Foreign Trade in terms of this Agreement during the period
concerned, the two parties to this Agreement shall negoti-
ate about the quantity to be supplied to the Board of For-
eign Trade, and shoul it prove that the crop was underest-
imated by the Maize Board as a result of which the quanti-
ty under the Agreement was reduced by the Maize Board, the
Board of Foreign Trade shall be given the opportunity to
negotiate with the Maize Board about an increase in that
quantity;
(3) the quantity to be shipped during each of the periods con-
templated in this Agreement may be increased or decreased
by 10％ at the option of the Board of Foreign Trade;
(4) the Board of Foreign Trade shall advise the Maize Board at
least nine weeks prior to the commencement of each of the
above-mentioned period of the quantities to be shipped du-
ring each month of the period concerned, which quantities
may at the option of the Board of Foreign Trade be increa-
sed or decreased by up to 15％;
(5) the quantity to be shipped during any particular month may
be changed subject to notice by the Board of Foreign Trade
to the Maize Board at least nine weeks prior to the begin-
ning of the month concerned;
(6) the maximum quantity that may be shipped during any one m-
onth shall be 65 000 metric tons;
(7) it is understood that in the event of any emergency the B-
oard of Foreign Trade may negotiate with the Maize Board
for its approval that the above-mentioned quantity of 6500
0 metric tons be exceeded in a particular month and the M-
aize Board will endeavor to assist the Board of Foreign T-
rade in this respect as far as circumstances permit.
Colour of maize
6 (1) Subject to the provisions of sub-clause (2) below, the ma-
ize to be supplied in terms of this Agreement shall be ye-
llow maize.
(2) If the price realized by the Maize Board for yellow maize
sold by it on tender for shipment in a particular month e-
xceeds the price realized by the said Board for white mai-
ze sold by it on tender for shipment in that month by more
than the equivalent of three US dollars per metric ton, t-
he Board of Foreign Trade shall take 15％ of the total qu-
antity of maize to be shipped during that month in white
maize.
(3) White maize to be supplied in terms of sub-clause (2) sha-
ll be shipped in the month immediately following the month
referred to in that sub-clause: Provided that if the quan-
tity of white maize to be shipped in a particular month is
less than a cargo, it may be shipped in subsequent month:
Provided further that the white maize must be shipped not
later than the month immediately following the month in w-
hich the total quantity of white maize to be shipped has
accumulated to 15 000 metric tons.
Price
7 The price per metric ton of white and yellow maize intended f-
or shipment during any particular month in terms of this Agre-
ement shall be the weighted average free-alongside-coastal-el-
evator price per metric ton realized by the Maize Board for m-
aize of the relevant colour sold on tender for shipment during
the month concerned plus fobbing costs (which shall not inclu-
de the cost of transportation from the elevator to the ship's
side and the loading on board the ship of maize bagged at the
elevator):Provided that
(1) the prices realized for yellow maize cargoes sold for shi-
pment ex East London and Durban will be used to determine
the free-alongside-coastal-elevator price of yellow maize,
and the prices obtained for white maize cargoes sold for
shipment ex East London will be used to determine the free
-along-side-coastal-elevator price of white maize;
(2) if the Maize Board does not sell a cargo of yellow maize
on tender for shipment during a particular month, the pri-
ce payable for the yellow maize to be shipped in terms of
this Agreement in that month shall be determined by adjus-
ting the weighted average free-alongside-coastal-elevator
price realized by the Maize Board for a cargo or cargoes
of yellow maize sold by it on tender for shipment during
the last month of shipment preceding the month for which
the price must be fixed
(a) by adding fobbing costs;
(b) by adding any increase or deducting any decrease in the
Chicago Futures prices for US No. 3 corn from the last
month of shipment of yellow maize sold by the Maize Boa-
rd on tender to the month for which the price must be f-
ixed:Provided that the change in the Chicago Futures pr-
ices between such last month of shipment and the month
for which a price must be fixed shall be determined by
comparing the average of the three lowest closing prices
picked by the Maize Board and the three highest closing
prices picked by the Board of Foreign Trade from the fu-
ture prices (quoted during the second month prior to the
last month for which the Maize Board sold yellow maize)
for the last month of shipment of yellow maize sold by
the Maize Board on tender for export on the one hand and
the three lowest closing prices picked by the Board of
Foreign Trade and the three highest closing prices pick-
ed by the Maize Board from the future prices (quoted du-
ring the second month prior to the month for which the
price must be fixed) for the month for which the price
must be fixed on the other hand; and
(3) if there are no Chicago Futures quotations for a specific
month, the Chicago Futures prices for that month will be
determined on a daily basis by averaging the Chicago Futu-
res closing prices for the month prior to that month and
those of the month succeeding that month.
Other terms and conditions
8 (1) Other terms and conditions applicable to this Agreement a-
re contained in the Annexure hereto which shall form part
of this Agreement.
(2) The Board of Foreign Trade has the right to contract with
the Cental Trust of China, Ministry of Finance, Republic
of China, to carry out the procurement of the maize under
this Agreement.
(3) If the necessity arises for any alteration in the working
procedures or operating organization of either of the par-
ties to this Agreement which may affect the implementation
of this Agreement, the party concerned shall obtain the c-
onsent of the other party before implementing any such al-
teration.
THUS DONE and SIGNED in PRETORIA on this 7th day of October 1975
.
Y. T. WONG
Director-General of the Board of Foreign Trade, Republic of Chi-
na
Withness.....................
T. S. HSU
Manager, Trading Department, Central Trust of China
Withness.....................
K. C. LIN
President, Maize Importers Joing Committee
Withness.....................
W. M. LEE
Consul-General for the Republic of China
.............................
B. H. WILKENS
Chairman of the Maize Board, Republic of South Africa
.............................
H. F. B. HICKLEY
General Manager of the Maize Board
Withness.....................
W. J. LOUW
Assistent General
Manager (OS) of
the Maize Board
ANNEX
1 REFERENCE
In this Annexure the MAIZE BOARD, Republic of South Africa, is
referred to as the Seller and the Board of FOREIGN TRADE, Rep-
ulbic of China, is referred to as the Buyer.
2 QUALITY
The maize shall at the option of the Seller be South African
maize, the crop year of which shall be the year immediately p-
receding the year during which the maize is exported and／or
the same year as the year of export. The grade(s) of the maize
shall be white maize grade one or white maize grade one and w-
hite maize grade two at Seller's option for white maize, and
yellow maize grade one or yellow maize grade one and yellow m-
aize grade two at Seller's option for yellow maize:Provided t-
hat the maximum percentages of with maize grade two and yellow
maize grade two suppiled in terms of this Agreement sall be in
accordance with the relevant maximum percentages provided for
in the contracts of sale entered into between the Maize Board
and exporters to whom the Board sold cargoes of maize the rel-
evant colour on tender for shipment during the month concerned
.
The said crop year and grade(s) shall be as defined in Govern-
ment Notice R.1141 of 31 July 1964, as amended. Subject to the
provisions of clause 3 thereof, the Seller has the option to
supply either maize with a moisture content not exceeding 12.5
％ (by mass) or maize with a moisture content not exceeding 14
％ (by mass). (The moisture content shall be determined in ac-
cordance with the directions set out in Government Notice R.11
41 of 31 July 1964, as amended.)
3 CURRENCY AND REDUCTION FOR EXCESSIVE MOISTURE CONTENT OF MAIZE
Payment shall be made in South African currency per metric ton
net mass of maize in bulk delivered free on board, unstowed a-
nd untrimmed, buyer's tonnage at the port or ports of shipment
. If the moisture content of the maize exceeds 12.5％ (by mass
) but does not exceed 14％ (by mass) the price shall be reduc-
ed by the same number of percentage points as those by which
the moisture content of the maize exceeds 12.5％ (by mass).
4 MASS AND GRADE
Mass certificates issued and certified by the South African R-
ailways Administration and export inspection certificates iss-
ued by the Department of Agricultural Economics and Marketing
shall be conclusive proof of the mass and grade(s), respectiv-
ely of the maize delivered t the Buyer.
5 INSPECTION
A representative of the Maize Board shall have the right to b-
oard the vessel into which the maize is to be loaded and prior
to commencement of loading, to inspect the holds of the vessel
during and after loading of the vessel for the purpose of gra-
ding and sampling:Provided that no delay or hindrance to the
vessel or in loading shall arise therefrom. Should the said r-
epresentative find that the holds of the vessel are not free
from insects, he shall advise the Buyer's or Chatterer's agent
and the Marine Surveyor employed by the Buyer to that effect
in which case the Buyer or his agent shall refuse to accept n-
otice of readiness for loading the vessel the maize for loadi-
ng into the vessel until such time as the representative of t-
he Maize Board certifies that no live insects were found in t-
he holds of the vesselin the course of his inspection. The Se-
ller shall not be under any obligation to release the maize f-
or loading into the uessel until such time as the said repres-
entative has certified that no live insects were found in the
holds of the vessel.
6 SHIPMENT
(1) Suitable tonnage as defined in clause 19 shall be present-
ed by the Buyer at the port of East London or Durban for
lifting yellow maize and at the port of East London for l-
ifting white maize during the shipping periods arranged by
Buyer and Seller from time to time:Provided that the ship-
ping periods during a particular month shall be 15 days a-
nd the first or last day of any shipping period shall be
deemed to be the first or last date of a shipping period (
where applicable) referred to in this Annexure. The Seller
shall declare the port(s) of shipment at least eight weeks
prior to the beginning of the month during which the maize
is to be shipped and the Buyer shall then immediately dec-
lare the shipping periods for the cargoes to be shipped d-
uring that month:Provided that the seller shall declare s-
uch shipping periods if the Buyer is not in a position to
do so.
(2) The Buyer shall advise the Seller by cable or telex as so-
on as freight has been chartered, stating the lay days st-
ipulated in the Charter Party.
(3) Should the Buyer charter freight which is not in terms of
section (1) above and as defined in clause 19, any additi-
onal cost incurred and／or loses suffered by the Seller s-
hall be for the account of the Buyer.
(4) The Buyer shall furnish the Seller or Seller's agent prior
to commencement of loading with a certificate from a comp-
etent Marine Surveyor that the vessel is fit and ready in
all compartments to receive and carry a full cargo of mai-
ze in bulk.
7 DELIVERY
(1) Delivery shall be free on board unstowed and untrimmed the
vessel presented by the Buyer in terms of clause 6 and Bi-
lls of Lading supported by mass certificates issued in te-
rms of clause 4 shall, subject to the provisions contained
in sub-paragraph (2) below, be proof of delivery. The ves-
sel chartered by the Buyer will be subject on arrival at
loading port to the normal loading turn as regulated by t-
he port Captain. Any cost caused by delays in procuring a
berth shall be for account of the Buyer. Any elevator ove-
rtime not ordered by the Seller shall be for account of t-
he Buyer.
(2) It shall be a special condition of this Agreement that de-
livery of the maize shall be completed and effectively ma-
de only as soon as clean Bills of Lading supported by mass
certificates in terms of clause 4 have been issued and d-
elivered to the seller or his duly authorized agent.
8 READINESS TO LOAD
The Buyer shall notify the seller in writing, which notice sh-
all reach the Seller at least ten days prior to the first date
referred to in clause 6, of the name(s) of the vessel(s), the
approximate quantity／quantities to be loaded and the expected
date(s) of readiness of such vessel(s) to load.
9 LOADING RATE AND DEMURRAGE CHARGES
(1) Any dispatch money earned or demurrage under the charter
party covering the vessel that is used for loading the ca-
rgo shall be for account of the Buyer.
(2) The Seller shall arrange for delivery of the maize at an
average rate of not less than 1 500 metric tons of maize
per weather working day if notice of readiness (referred
to in subclause (3) of this clause) has been accepted on
or before the last day stipulated in clause 6 hereof and
at an average rate of not less than 1 000 metric tons of
maize per weather working day if the notice of readiness
referred to has been accepted not later than five days af-
ter the last day referred to in clause 6 hereof. It must
be clearly understood that the Seller shall not be under
any obligation to deliver the maize at the aforesaid rates
if, inter alia, the vessel concerned cannot load at the s-
aid rates or if the notice of readiness has not been acce-
pted on or before the last day referred to in clause 6 he-
reof, or not later than five days after the last day refe-
rred to in clause 6 hereof, as the case may be. For the p-
urpose of this clause 〞weather working day〞 shall mean a
day of 24 hours excluding
(a) public holidays;
(b) time between 12h00 on Saturdays and 07h20 on Mondays;
(c) time when loading is stopped by order of the Master of
the vessel.
Time during which the vessel, after acceptance of notice
of its readiness, is unable to occupy the loading berth b-
ecause another vessel is loading maize or grain sorghum n-
ot contemplated in this Agreement (and for no other reason
) shall not be excluded.
(3) The calculation of time of the vessel loading maize under
this Agreement shall commence to run 24 hours after notice
of readiness in respect of the vessel concerned has been -
accepted, which notice shall be given during business hou-
rs between 09h00 and 17h00 on an ordinary working day or
between 09h00 and 12h00 on a working Saturday, but in any
event time shall not begin to run or count before 07h20 on
the first rate referred to in clause 6 hereof.
(4) If and when the Seller is obliged to deliver the maize but
fails to do so, in breach of such obligation and not for
reasons stated in clause 16, then, but subject to the pro-
visions of clause 13 (1) (c), the Seller shall be liable
to pay the Buyer damages, limited to damages in lieu of d-
emurrage, at the rate of R2 000 in South African currency
per running day of 24 hours or pro rata for part of 24 ho-
urs plus interest at the Bank Rate of the South African R-
eserve Bank as determined from time to time plus 2％ per
annum on the price in this Agreement of the total quantity
of the maize shipped in the vessel concerned, for the per-
iod that elapses between the time on which shipment should
have been completed at a rate of 1 500 or 1 000 metric t-
ons per weather working day as the case may be, as is sta-
ted in clause 9(2) and the time on which shipment was in
fact completed.
(5) In the event of such delay in release of the maize the fi-
nal date of shipment shall be extened by the period of du-
ration of such delay in release, without any additional l-
iability to the Buyer (as contemplated in clause 13 of th-
is Annexure).
10 RISK
All risks after placing the maize on board the vessel in ter-
ms of clause 7 (1) shall be for the account of the account of
the Buyer.
11 RAYMENT
(1) The Buyer shall at least 10 days prior to the commenceme-
nt of the shipping period or commencement of shipent, wh-
ichever date is the earlier, furnish the Seller with an
irrevocable confirmed Letter of Credit issued by a Bank
acceptable to the Seller against which the value of each
cargo of maize shipped can be drawn and stipulating that
the amount payable by the Buyer in terms of this Agreeme-
nt shall be paid in cash on presentation by the Seller of
the following documents:
(a) Bill of Lading (full set clean on board to 〞Order〞 a-
nd endorsed in blank) marked 〞Freight payable as per
Charter Party〞.
(b) Commercial invoices.
(c) Inspection certificates issued by the Department of Ag-
ricultural Economics and Marketing.
(d) Mass certificates issued by the South African Railways
Administration.
(e) Phytosanitary certificate issued by the Division of Pl-
ant and Seed Control, Department of Agricultural Techn-
ical Services, Republic of South Africa, stating that
the maize exported is from areas free from Xanthomonas
vasculorum.
(2) Prior to shipment of the first cargo of maize in terms of
this Agreement, the Buyer shall furnish the Seller with a
Letter of Undertaking that the Buyer will, within 30 days
after his Agent has been advised of the amount of penalti-
es payable to the Seller in terms of clause 13 of this Ag-
reement, pay such amount to the Seller.
12 BAGS
The Buyer shall provide bags for any maize required to be de-
livered in bags, such empty bags to be delivered to elevator
at the expense of the Buyer. However, the cost of bagging sh-
all be for account of the Seller. Any additional expenses in-
curred through bagging in overtime are for Buyer's account.
As from the date of bagging all costs in connection with bag-
ged maize including costs of storage and placing the maize on
board shall be for the Buyer's account. The quantity of bagg-
ed maize shall not exceed 15％ of the total cargo lifted or
the maximum provided for under the Charter Party, whichever
is the lesser. The quantity of bagged maize required, if any,
shall be declared by the Buyer at least seven days before co-
mmencement of loading. Any delays to the vessel due to non-c-
ompliance with this provision shall be at the cost and respo-
nsibility of the Buyer.
13 EXTENSION OF SHIPPING PERIOD
(1) Should the Buyer not tender suitable tonnage on or before
the last permissible date of shipment referred to in cla-
use 6, and if the Buyer lodges in writing or by telegram
with the Seller an application for extension of the ship-
ping period at least 16 Seller's business hours (the Sel-
ler's business days are Mondays to Fridays exclvding pub-
lic holiadys and his business hours are 08h00 to 16h30 S-
outh African time) prior to the said last permissible da-
te of shipment, the Seller shall, in his discretion grant
extension:Provided that
(a) the Buyer shall pay to the Seller interest at the Bank
Rate of the South African Reserve Bank as determined f-
rom time to time plus 2％ per annum on the value of the
maize at the Agreement price calculated from the seller
's last business day (as defined in this sub-clause) i-
mmediately preceding the said last permissible date of
shipment up to and including the day immediately prece-
ding the date of commencement of loading;
(b) the Buyer shall pay to the Seller a charge of 1,1c (one
decimal one cent) per metric ton per day as from the s-
aid last permissible date until the day immediately pr-
eceding the date of commencement of shipment, inclusive
:
Provided that if notice of readiness of the vessel lif-
ting maize contemplated in this Agreement cannot be p-
resented because the vessel has not been allotted a la-
yby or loading berth at the time of its arrival at the
port of loading (and for no other reason) , the date of
acceptance of notice of readiness shall, for the purpo-
se of this sub-clause only, be taken as the date on wh-
ich the vessel anchored at outer anchorage at the said
port, extended by the period between the time on which
the vessel entered a layby or loading berth, whichever
is the earlier, to the time on which notice of readine-
ss was accepted;
(c) the Seller shall not be obliged to deliver the maize at
the rates set out in sub-clause 9(2) hereof if shipment
is effected later than five days after the last permis-
sible date of shipment referred to in clause 6 hereof,
or to pay interest or damages in lieu of demurrage.
(2) The Seller shall not ipso facto be obliged to extend the
period of shipment in terms of sub-clause (1) beyond 30
days bet if longer extension of time is required, this w-
ill be subject t negotiation.
14 EXPORT PERMIT
The Seller undertakes to procure a permit for the export of
the quantity of maize shipped under this Agreement, provided
there is no prohibition on the export of maize.
15 IMPOSSIBILITY OF PERFORMANCE
Sould the fulfilment of this Agreement or part thereof be re-
ndered impossible by prohibition of export from the Republic
of South Africa of import into the Republic of China, blocka-
de or hostilities, this Agreement or any unfulfilled part th-
ereof shall be subject to further negotiation.
16 DELAY IN PERFORMANCE
Sould the fulfilment of this Agreement be unavoidably delayed
by reason of riots, strikes, lockouts or breakdown in the So-
uth African Railways system at port or ports of loading, the
final date of shipment per clauses 6 and 13 shall be extended
by the actural duration of such riots, strikes, lockouts or
breakdown in the South African Railways system without any a-
dditional liability to the Buyer or Seller.
17 FORCE MAJEURE
Sould the fulfilment of this Agreeor part thereof be rendered
impossible to either party by force majeure the unfulfulled
part affected by force majeure shall be subject to further n-
egotiation.
18 JURISDICTION IN CASE OF DISPUTES
The Buyer consents to the Supreme Bourt of the Republic of S-
outh Africa, Transvaal Provincial Division, Pretoria, having
jurisdiction to deal with any dispute arising out of this Ag-
reement.
19 DEFINITIONS
(1) Tonnage
In this Agreement tonnage shall mean a vessel of the fol-
lowing classification chartered by the Buyer on gross te-
rms at loading, completely fitted for the purpose of con-
veying the maize concerned and no other cargo: first cla-
ss Steamer or Power-engined Ship, class not lower than 10
0 A.1, or British Corporation B.S., or top classification
in American, French, Italian, Norwegian or other equal R-
egister, or a ship not inferior to these classifications.
(2) Charter Party
The Charter Party shall inter alia stipulate the followi-
ng condition Readiness: Time for loading shall commence
to count 24 hours after written notice, accompanied by a
pass of the representative of the Maize Board and a cert-
ificate from a Marine Board and a certificate from a Mar-
ine Surveyor approved by the Charterers certifying the v-
essel's readiness in all cargo spaces, including fumigat-
ion, if required, to receive cargo whether in berth or n-
ot, has been given by the Master or Agent to the Charter-
er or his Agent between 09h00 and 17h00 from Monday to F-
riday or between 09h00 and 12h00 on a Saturday, excluding
public holidays.
(3) The work 〞vessel〞 in this Agreement can also refer to m-
ore than one vessel.