No C 135/4 Official Journal of the European Communities 2. 6. 90 
STATE AID 
N 277/89 and N 278/89 
(Spain) 
(Articles 92 to 94 of the Treaty establishing the European Economic Community) 
(90/C 135/05) 
Commission notification pursuant to Article 93 (2) of the 
EEC Treaty to the Member States and to interested 
parties in regard to aid that the Spanish authorities have 
decided to grant the companies Nestle and Derivados 
Lacteos y Alimenticios in Castile-La Mancha 
1. By letters dated 6 September 1989 the Permanent 
Representation of Spain, as provided for in Article 93 (3) 
of the Treaty, notified the Commission of the projected 
aids in question. 
2. These aids fall within the scope of Law 50/85 on 
regional incentives (Royal Implementing Decree 
1535/87) and Royal Implementing Decree 570/1988 of 3 
June 1988 (Castile-La Mancha economic promotion 
zone). 
3. They take the form of subsidy of investment in the 
construction of new installations: 
— for the production and marketing of yoghurt (Nestle: 
total investment Pta 212 400 000, i.e. approximately 
ECU 1 310 000), 
— for the production of ice-cream (Delasa: total 
investment Pta 255 865 000, i.e. approximately ECU 
1 580 000) at Guadalajara. 
4. In accordance with the framework system for 
investment aids relating to the manufacture and 
marketing of certain dairy products ('), in particular 
point III 1 (b), Member States no longer grant aid for 
investment in products other than those listed in point 
III 1 (a) except where the increase in the capacity to use 
cows' milk is offset by abandonment of equivalent 
capacity in the same or other undertakings. 
Given the Spanish authorities' failure to reply, the aid in 
question, on the basis of the information available to the . 
(*) OJ Nb C 302, 12, 11. 1987, p, 4. Commission, cannot be considered to be covered by the 
derogations of Article 92 (3) of the Treaty and is to be 
considered incompatible with the common market. 
5. The Commission informs the Spanish Government 
that it has accordingly decided to initiate the procedure 
provided for in Article 93 (2) of the EEC Treaty in 
regard to the measures under scrutiny. Under the 
procedure the Commisson calls on the Spanish 
Government to submit its comments within one month of 
the date of this letter and to reply to the request for 
information made by telex dated 13 October 1989 
(VI/D/15481). 
In particular evidence is required that the investments do 
not bring about any increase in capacity to use cows' 
milk (indicating quantities and products before and after 
investment) and/or that capacity at least equal to that of 
the new installation will be permanently abandoned and 
actually made over to them. 
6. The Commission also informs the Spanish 
Government that it will by a notice in the Official Journal 
of the European Communities call on the Governments of 
the other Member States and other interested parties to 
submit their comments. 
7. Lastly the Commission draws the Spanish 
Government's attention to the letter it sent to all 
Member States on 3 November 1983 on their obligations 
under Article 93 (3) of the EEC Treaty and to the notice 
published in the Official Journal of the European 
Communities No C 318 of 24 November 1983 recalling 
that any aid illegally granted, i. e. before a final decision 
2. 6. 90 Official Journal of the European Communities NoC 135/5 
under the EEC Treaty Article 93 (2) procedure, is liable 
to give rise to a request for repayment and/or a refusal 
to pay EAGGF advances or charge to the EAGGF 
budget expenditure on national measures directly 
affecting Community measures. 
The Commission gives notice to the other Member 
States and other interested parties to submit their comments on the measures in question within one month 
of the date of publication of this notice to the following 
address: 
Commission of the European Communities, 
200, rue de la Loi, 
B-1049 Brussels.