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AT THE 2ND MINISTERIAL MEETING IN THE NEGOTIATIONS BETWEEN THE COMMUNITY AND THE UNITED KINGDOM , HELD ON 27 OCTOBER 1970 , MR . W . SCHEEL , MINISTER OF FOREIGN AFFAIRS OF THE FEDERAL REPUBLIC OF GERMANY , ON BEHALF OF THE COMMUNITY DELEGATION , MADE A STATEMENT ON THE SYSTEM FOR FIXING COMMUNITY FARM PRICES .

MR . G . RIPPON , CHANCELLOR OF THE DUCHY OF LANCASTER , ON BEHALF OF THE UNITED KINGDOM DELEGATION , RECORDED HIS AGREEMENT TO THIS STATEMENT . HE ADDED THAT HE HAD NO DOUBT AS TO THE IMPORTANCE TO ALL CONCERNED OF THESE AGRICULTURAL REVIEWS AND OF THE INTENTION TO HAVE EFFECTIVE AND MEANINGFUL CONTACTS IN PARTICULAR WITH PRODUCER ORGANIZATIONS OPERATING AT COMMUNITY LEVEL .

IN CONCLUSION , THE TWO DELEGATIONS NOTED THAT AN AGREEMENT HAD BEEN REACHED IN THE TERMS CONTAINED IN THE FOLLOWING STATEMENT MADE BY MR . W . SCHEEL :

" 1 . SINCE THE DISCUSSIONS HELD ON THIS SUBJECT IN 1962 , AN ANNUAL REVIEW ON THE CONDITION OF AGRICULTURE AND AGRICULTURAL MARKETS HAS BEEN ESTABLISHED WITHIN THE COMMUNITY . THIS COMES UNDER THE PROCEDURE FOR FIXING COMMUNITY PRICES .

THIS PROCEDURE MAY BE DESCRIBED AS FOLLOWS :

AS A GENERAL RULE , THE VARIOUS AGRICULTURAL REGULATIONS STIPULATE THAT THE COUNCIL , ON A PROPOSAL FROM THE COMMISSION , SHALL FIX FOR THE COMMUNITY EACH YEAR , BEFORE 1 AUGUST , FOR THE MARKETING YEAR STARTING THE FOLLOWING YEAR , ALL THE AGRICULTURAL PRICES WHICH , UNDER THE COMMON ORGANIZATION OF THE MARKETS , MUST BE FIXED .

WHEN SUBMITTING ITS PROPOSALS , THE COMMISSION AT THE SAME TIME SUBMITS AN ANNUAL REPORT ON THE CONDITION OF AGRICULTURE AND AGRICULTURAL MARKETS .

THIS REPORT IS SUBMITTED IN ACCORDANCE WITH THE LEGAL OBLIGATIONS OF AND THE UNDERTAKINGS MADE BY THE COMMISSION .

THE COMMISSION DRAWS UP THIS REPORT ON THE BASIS OF THE RELEVANT STATISTICAL AND ACCOUNTING DATA FROM ALL AVAILABLE NATIONAL AND COMMUNITY SOURCES .

THE ANALYSIS MADE IN THE REPORT COMPRISES THE FOLLOWING :

_ EXAMINATION OF THE ECONOMIC CONDITION OF AGRICULTURE AND OF ITS OVERALL DEVELOPMENT , BOTH AT NATIONAL AND AT COMMUNITY LEVEL , AS WELL AS IN THE GENERAL ECONOMIC CONTEXT ;

_ EXAMINATION OF THE MARKET BY PRODUCTS OR GROUPS OF PRODUCTS , IN ORDER TO PROVIDE AN OUTLINE OF THE SITUATION AND OF ITS CHARACTERISTIC TRENDS .

THE REVIEW OF THE DATA UNDERTAKEN BY THE COMMISSION INCLUDES , IN PARTICULAR , INFORMATION ABOUT TRENDS IN PRICES AND COSTS , EMPLOYMENT , PRODUCTIVITY AND FARM INCOMES .

AGRICULTURAL PRICES ARE FIXED IN ACCORDANCE WITH THE PROCEDURE LAID DOWN IN ARTICLE 43 ( 2 ) OF THE EEC TREATY , WHICH MEANS THAT THE ASSEMBLY MUST BE CONSULTED .

TO THIS END , THE COMMISSION'S PROPOSALS , TOGETHER WITH THE ANNUAL REPORT , ARE REFERRED TO THE ASSEMBLY , WHERE A GENERAL DEBATE IS HELD ON THE COMMON AGRICULTURAL POLICY .

IN ADDITION , THE ECONOMIC AND SOCIAL COMMITTEE , COMPOSED OF REPRESENTATIVES OF THE VARIOUS ECONOMIC AND SOCIAL SECTORS , IS REGULARLY CONSULTED ON THE PROPOSALS AND THE REPORT . AS REGARDS THE DUTIES OF THIS COMMITTEE , ARTICLE 47 OF THE EEC TREATY LAYS DOWN THAT ITS AGRICULTURAL SECTION SHALL HAVE AS ITS TASK THAT OF HOLDING ITSELF AT THE SERVICE OF THE COMMISSION FOR THE PURPOSE OF PREPARING THE DISCUSSIONS OF THE COMMITTEE , IN ACCORDANCE WITH THE PROVISIONS OF ARTICLES 197 AND 198 OF THE EEC TREATY .

BEFORE , DURING AND AFTER THE DRAWING UP BY THE COMMISSION OF THE ANNUAL REPORT AND THE PRICE PROPOSALS , CONTACTS TAKE PLACE WITH THE PROFESSIONAL AGRICULTURAL ORGANIZATIONS ORGANIZED AT COMMUNITY LEVEL . THESE CONTACTS INCLUDE A DISCUSSION OF THE STATISTICAL AND OTHER DATA BEARING ON THE ECONOMIC CONDITIONS AND PROSPECTS OF AGRICULTURE , WHICH THE COMMISSION TAKES INTO ACCOUNT IN ITS REPORT TO THE COUNCIL .

BECAUSE OF THE NATURE OF THE PRICES FIXED UNDER THE COMMON AGRICULTURAL POLICY , THE COMMISSION HAS DECIDED NOT TO LIMIT THESE CONTACTS TO THE AGRICULTURAL SECTORS ALONE , BUT TO MAINTAIN THEM ALSO WITH INDUSTRIAL , COMMERCIAL AND TRADE UNION CIRCLES AND WITH CONSUMERS .

THESE CONTACTS PROVIDE AN OPPORTUNITY FOR ALL THE INTERESTED PARTIES TO MAKE KNOWN THEIR VIEWS OR CLAIMS . THEY ALSO ALLOW THE COMMISSION TO DRAW UP ITS ANNUAL REPORT ON THE CONDITION OF AGRICULTURE AND ITS PROPOSALS WITH REGARD TO PRICES IN FULL KNOWLEDGE OF THE POSITION OF THE INTERESTED PARTIES .

THE CONSULTATIONS OF THE ASSEMBLY AND THE ECONOMIC AND SOCIAL COMMITTEE , DURING THE POLICY-MAKING PROCESS LEADING TOWARDS A FINAL DECISION OF THE COUNCIL , COMBINED WITH CONTINUAL AND DIRECT CONTACTS BETWEEN THE INSTITUTION RESPONSIBLE FOR DRAWING UP THE REPORT AND THE PROPOSALS AND THE ORGANIZATIONS OF THE INTERESTED PARTIES , ARE A SUFFICIENT GUARANTEE THAT THE INTERESTS OF ALL THOSE CONCERNED BY THE DECISIONS IN QUESTION ARE GIVEN FAIR CONSIDERATION .

2 . IT IS UNDERSTOOD THAT , NOTWITHSTANDING THIS PROCEDURE , THE MEMBER STATES MAY THEMSELVES CARRY OUT ANNUAL REVIEWS OF THEIR OWN AGRICULTURE , IN CONTACT WITH THE PROFESSIONAL ORGANIZATIONS CONCERNED AND IN ACCORDANCE WITH THEIR NATIONAL PROCEDURES .

3 . THE COMMUNITY DELEGATION PROPOSES THAT THE CONFERENCE TAKE FORMAL NOTE OF THE FOLLOWING :

_ THE PROCEDURES AND PRACTICES WITHIN THE COMMUNITY , AS WELL AS IN THE MEMBER STATES , WILL PROVIDE FOR APPROPRIATE CONTACTS WITH THE PROFESSIONAL ORGANIZATIONS CONCERNED ;

_ THE INSTITUTIONS OF THE COMMUNITY INTEND TO EXTEND THE PRACTICES AND PROCEDURES DESCRIBED IN PARAGRAPH 1 ABOVE TO THE ENLARGED COMMUNITY ;

_ THE APPLICATION OF THE TWO PRECEDING SUBPARAGRAPHS WILL ENSURE A SYSTEM WITHIN THE ENLARGED COMMUNITY WHEREBY IT WILL BE POSSIBLE TO REVIEW THE ECONOMIC CONDITIONS AND PROSPECTS OF AGRICULTURE AND TO MAINTAIN APPROPRIATE CONTACTS WITH THE PROFESSIONAL PRODUCER ORGANIZATIONS AND WITH OTHER INTERESTED ORGANIZATIONS AND PARTIES . "