++++

THE HIGH CONTRACTING PARTIES ,

DESIRING TO SOLVE THE PROBLEMS WHICH THE ACCESSION OF NORWAY TO THE EUROPEAN ECONOMIC COMMUNITY CREATES FOR THE FARMERS OF THAT COUNTRY ;

TAKING INTO CONSIDERATION THE ANXIETIES EXPRESSED BY THE NORWEGIAN GOVERNMENT CONCERNING THE FACT THAT NORWAY'S AGRICULTURE IS AT A DISADVANTAGE AS REGARDS PRODUCTION OWING TO THE COUNTRY'S GEOGRAPHICAL POSITION AND CONFIGURATION ; THAT THE SAME FACTORS DETERMINE THE PARTICULAR DEMOGRAPHIC PROBLEMS OF NORWAY AND INVOLVE , FOR THE AGRICULTURAL HOLDINGS OF THAT COUNTRY , RELATIVELY HIGH PRODUCTION COSTS , WHICH HAVE NECESSITATED A GENERAL SYSTEM OF SUPPORT MEASURES FOR THE PURPOSE OF MAINTAINING A BALANCED SOCIAL STRUCTURE , AND AN EQUITABLE STANDARD OF LIVING FOR THE AGRICULTURAL POPULATION ;

RECOGNIZE THE PARTICULAR PROBLEMS WHICH THE ACCESSION OF NORWAY TO THE EUROPEAN ECONOMIC COMMUNITY CREATES FOR THE FARMERS OF THAT COUNTRY , PARTICULARLY IN VIEW OF THE FACT THAT A SIMPLE ALIGNMENT OF THE PRICES RECEIVED BY NORWEGIAN PRODUCERS WITH THE LEVEL OF COMMUNITY PRICES WOULD CAUSE A SUBSTANTIAL LOSS IN EARNINGS , WITH UNFAVOURABLE CONSEQUENCES FROM THE DEMOGRAPHIC AND SOCIAL POINT OF VIEW ;

RECOGNIZE IN PARTICULAR THAT THE TRANSITIONAL PERIOD COULD NOT SOLVE THESE PROBLEMS AND THAT IT IS THEREFORE NECESSARY TO ENVISAGE SPECIFIC ARRANGEMENTS _ WHICH SHOULD NOT BE REGARDED AS CONSTITUTING A PRECEDENT _ WITH THE OBJECT OF MAINTAINING THE STANDARD OF LIVING OF NORWEGIAN FARMERS , IN COMPLIANCE WITH THE RULES GOVERNING THE COMMON AGRICULTURAL POLICY ;

HAVE AGREED THE FOLLOWING PROVISIONS :

1 . SUBJECT TO THE TEMPORARY DEROGATIONS REFERRED TO IN THE FOLLOWING PARAGRAPHS , THE SYSTEM APPLIED TO NORWEGIAN AGRICULTURE MUST BE DEVISED IN SUCH A WAY AS NOT TO COMPROMISE THE FUNCTIONING OF THE COMMON AGRICULTURAL POLICY , AND PARTICULARLY OF THE COMMON ORGANIZATION OF MARKETS , THROUGHOUT THE COMMUNITY .

2 . NORWAY SHALL APPLY THE COMMUNITY'S AGRICULTURAL RULES IN ACCORDANCE WITH THE RELEVANT PROVISIONS OF THE ACT OF ACCESSION .

3 . THE PROBLEM OF NORWEGIAN SUBSIDIES FOR TRANSPORT COSTS , WHICH ARE INTENDED TO COMPENSATE FOR THE PARTICULARLY UNFAVOURABLE EFFECTS OF THE LONG DISTANCES BETWEEN PRODUCTION AREAS AND NATURAL OUTLETS AND THE FACT THAT AGRICULTURAL REGIONS ARE WIDELY DISPERSED , MUST BE ADEQUATELY RESOLVED BY APPLYING THE PROVISIONS OF THE EEC TREATY .

4 . A SUPPORT SYSTEM SHALL BE INTRODUCED IN NORWAY WHICH SHOULD PERMIT THE MAINTENANCE OF THE FARMERS' STANDARD OF LIVING . SUPPORT SHALL BE GIVEN IN SO FAR AS IS NECESSARY FOR ACHIEVING THIS OBJECTIVE . THE SUPPORT MAY NOT BE LINKED WITH THE PRODUCT SOLD , NOR INCLUDE SUBSIDIES IN RESPECT OF PRODUCER PRICES , AND THIS WILL REQUIRE CHANGES IN THE SUPPORT MEASURES CURRENTLY IN FORCE IN NORWAY . THE SUPPORT SHALL BE VARIED ACCORDING TO THE REGIONS AND THE CATEGORIES OF FARMERS CONCERNED . THE MEASURES TO BE TAKEN SHALL BE ADAPTED TO THE VARIOUS TYPES OF PRODUCTION .

5 . NORWAY SHALL HAVE THE OPTION OF MAINTAINING UNTIL 31 DECEMBER 1975 , BY WAY OF DEROGATION , THE SUBSIDIES GRANTED AT PRESENT . PRODUCER PRICE SUBSIDIES SHALL BE REDUCED BY AMOUNTS CORRESPONDING TO THE INCREASES IN MARKET PRICES RESULTING FROM THE ALIGNMENT OF THESE MARKET PRICES WITH THE LEVEL OF THE COMMON PRICES .

6 . IN THE HORTICULTURAL SECTOR AND FOR POTATOES , NORWAY IS AUTHORIZED UNTIL 31 DECEMBER 1977 , BY WAY OF DEROGATION , TO REPLACE QUANTITATIVE RESTRICTIONS ON IMPORTS BY PROVISIONS MAKING IT POSSIBLE TO MAINTAIN , FOR CERTAIN PRODUCTS , A PRICE LEVEL COMPARABLE TO THE PRICE RULING ON THE NORWEGIAN MARKET BEFORE ACCESSION . THESE PROVISIONS SHALL CONSTITUTE A SYSTEM OF MINIMUM PRICES TO BE FIXED ON THE NORWEGIAN MARKET BELOW WHICH COUNTERVAILING CHARGES MAY BE APPLIED TO IMPORTS FROM ANY SOURCE ; AS REGARDS IMPORTS OF THESE PRODUCTS INTENDED FOR PROCESSING , THE COUNTERVAILING CHARGE MAY BE SUSPENDED , WHEREAS FOR DELIVERIES OF HOME-GROWN PRODUCTS INTENDED FOR PROCESSING A REFUND CORRESPONDING TO THE AMOUNT OF THIS CHARGE MAY BE GRANTED . THE TRANSITIONAL PROVISIONS AGREED FOR CUSTOMS DUTIES SHALL CONTINUE TO APPLY .

THE COUNCIL , ACTING BY A QUALIFIED MAJORITY ON A PROPOSAL FROM THE COMMISSION , SHALL ADOPT THE MEASURES NECESSARY FOR IMPLEMENTING THE PROVISIONS OF THIS PARAGRAPH .

7 . FOR PRODUCTS IN THE PIGMEAT , EGGS AND POULTRY SECTORS , THE COMPENSATORY AMOUNT APPLICABLE TO IMPORTS INTO NORWAY UNTIL THE FIRST REDUCTION SHALL BE CALCULATED , NOTWITHSTANDING ARTICLES 75 , 77 , AND 79 OF THE ACT OF ACCESSION , ON THE BASIS OF THE DIFFERENCE BETWEEN THE PRICES FOR SLAUGHTERED PIGS , EGGS IN SHELL AND SLAUGHTERED POULTRY ON THE NORWEGIAN MARKET , ON THE ONE HAND , AND ON THE MARKET OF THE COMMUNITY AS ORIGINALLY CONSTITUTED AND OF EACH OF THE OTHER NEW MEMBER STATES , ON THE OTHER .

THE COMPENSATORY AMOUNT REFERRED TO IN THE FIRST SUBPARAGRAPH SHALL BE REDUCED BY A QUARTER ON 1 NOVEMBER 1973 , A QUARTER ON 1 NOVEMBER 1974 , A QUARTER ON 1 NOVEMBER 1975 AND ABOLISHED ON 1 NOVEMBER 1976 , WITHOUT PREJUDICE TO THE APPLICATION AFTER THIS DATE OF ARTICLES 75 , 77 AND 79 OF THE ACT OF ACCESSION .

THE COUNCIL SHALL , ACTING BY A QUALIFIED MAJORITY ON A PROPOSAL FROM THE COMMISSION , ADOPT THE MEASURES NECESSARY FOR IMPLEMENTING THE PROVISIONS OF THIS PARAGRAPH .

8 . BY 30 JUNE 1974 AT THE LATEST , AND IN RESPECT OF HORTICULTURE AND POTATOES BY 30 JUNE 1976 AT THE LATEST , THE COMMISSION SHALL MAKE PROPOSALS TO THE COUNCIL INCLUDING , IF APPROPRIATE , PROPOSALS ON EXPENDITURE ELIGIBLE FOR COMMUNITY FINANCING IN ACCORDANCE WITH THE PROVISIONS OF THE EEC TREATY WITH A VIEW TO PUTTING INTO OPERATION , UPON EXPIRY OF THE PERIODS PROVIDED FOR IN PARAGRAPHS 5 AND 6 , THE SUPPORT SYSTEM IN ACCORDANCE WITH PARAGRAPH 4 .

9 . UNDER COMMUNITY SUPERVISION , AND WITHOUT PREJUDICE TO THE PROVISIONS OF PARAGRAPHS 1 TO 8 , APPROPRIATE MEASURES SHALL BE TAKEN IN NORWAY TO ENSURE A SUPPLY OF MILK WHICH IS SUFFICIENT REGULARLY TO MEET THE LIQUID MILK CONSUMPTION OF THE POPULATION , AND IN SUCH A WAY THAT THE PRESENT HIGH LEVEL OF MILK CONSUMPTION IS NOT ENDANGERED . THE COUNCIL SHALL , ACCORDING TO THE PROCEDURE OF ARTICLE 43 ( 2 ) OF THE EEC TREATY , ADOPT THE PROVISIONS NECESSARY TO THIS END , WHICH MAY INCLUDE SUBSIDIES .

10 . IF ANY SUBSEQUENT DEVELOPMENT OF THE COMMON AGRICULTURAL POLICY OR OF OTHER COMMUNITY POLICIES SHOULD INCLUDE COMMUNITY MEASURES ENABLING A TOTAL OR A PARTIAL SOLUTION OF THE SPECIAL PROBLEMS OF NORWEGIAN AGRICULTURE , THOSE COMMUNITY MEASURES , AND ANY POSSIBLE COMMUNITY FINANCING , WOULD REPLACE THE SPECIFIC MEASURES TAKEN IN NORWAY .

11 . THE INSTITUTIONS OF THE COMMUNITY SHALL PERIODICALLY REVIEW THE CONDITIONS AND PROCEDURES FOR IMPLEMENTING THE ARRANGEMENTS APPLIED IN NORWAY .