NoL123/34 OfficialJournaloftheEuropeanCommunities 4.5.89
COMMISSION REGULATION (EEC)No1203/89
of3May1989
fixingtheaidforcotton
THECOMMISSION OFTHEEUROPEAN COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity ,
HavingregardtotheActofAccessionofSpainand
Portugal,
HavingregardtotheActofAccessionofGreece,andin
particularparagraphs3and10ofProtocol4oncotton
annexedthereto,asamendedbyProtocol14annexedto
theActofAccessionofSpainandofPortugal,andRegu­
lation(CEE)No4006/87('),
HavingregardtoCouncilRegulation(EEC)No2169/81
of27July1981layingdownthegeneralrulesforthe
systemofaidforcotton(2),aslastamended ,byRegulation
(EEC)No791/89(3),andinparticularArticle5(1)thereof,
HavingregardtotheopinionoftheMonetaryCommittee,
Whereas,underArticle5ofRegulation(EEC)No
2169/81,aidmustbegrantedforunginnedcotton
harvestedintheCommunitywhentheworldmarket
priceforunginnedcottonisbelowtheguideprice;
Whereastheaidisequaltothedifferencebetweenthese
twoprices;
Whereasintheabsenceoftheguidepriceforcotton
applicableduringthe1989/90marketingyear,theaid
amounthavebeenfixedonthebasisoftheCommission's
latestproposalstotheCouncil;whereasthisamount
mustbeprovisionallyappliedandconfirmedoraltered
whenthe1989/90marketingyearpricesareknown;
Whereastheabatementofthesubsidywhicharises,where
appropriate,fromthesystemofmaximumguaranteed
quantitiesforthe1989/90year,hasnot,todate,been
fixed;whereastheamountofthesubsidyforthe1989/90
yearhasbeenprovisionallycalculatedonthebasisofan
abatementof24,005ECUper100kilograms;
Whereastheworldmarketpriceforunginnedcottonis
determinedperiodicallyonthebasisoftheworldmarket
pricesrecordedforginnedcottonandcottonseed,taking
intoaccounttheestimatedyieldoftheCommunity
harvestincottonseedandinginnedcottonandalsothe
netcostofginning;
Whereastheworldmarketpriceforginnedcottonand
cottonseedisdeterminedinaccordancewithArticle4of
Regulation(EEC)No2169/81;
Whereas,iftheworldmarketpriceforunginnedcotton
cannotbedeterminedasdescribedabove,thispriceshallbeestablishedonthebasisofthemostrecentpricedeter­
mined;
Whereastheworldmarketpriceforunginnedcottonis
equaltothesumofthevaluesforginnedcottonand
cottonseeddefinedinArticle1ofCommissionRegula­
tion(EEC)No1201/89of3May1989layingdownrules
implementing thesystemofaidforcotton(4),minusthe
costofginning;
Whereastheabovevaluesareestablishedonthebasisof
thepricesdeterminedinaccordancewithArticles2and3
ofCommissionRegulation(EEC)No1201/89;whereas
theworldmarketpriceisdeterminedonthebasisofthe
mostfavourableoffersandquotationsrecorded,excluding
offersandquotationswhichcannotberegardedasrepre­
sentativeoftherealmarkettrend;
Whereasthenecessaryadjustmentsmustbemadeincases
wheretheoffersandquotationsrecordeddonotsatisfy
therequirementsindicatedabove;
Whereas,underArticle4(4)ofRegulation (EEC)No
2169/81,iftherearenosuitableoffersorquotationsfor
determiningtheworldmarketpriceforcottonseed,that
priceshallbeestablishedonthebasisofthemost
favourableoffersandquotationsforcottonseedrecorded
ontheCommunitymarketor,ifthoseoffersandquota­
tionscannotbeestablishedonthebasisofthevalueof
theproductsobtainedfromprocessingtheseedinthe
Community ,lesstheprocessingcost;whereasthisvalue
isdeterminedinaccordancewithArticle4ofRegulation
(EEC)No1201/89;
Whereas,ifthesubsidysystemistooperatenormally,
subsidiesshouldbecalculatedonthefollowingbasis:
—inthecaseofcurrencieswhicharemaintainedinrela­
tiontoeachotheratanygivenmomentwithinaband
of2,25%,arateofexchangebasedontheircentral
rate,multipliedbythecorrectivefactorprovidedforin
thelastparagraphofArticle3(1)ofCouncilRegula­
tion(EEC)No1676/85(*),aslastamendedbyRegula­
tion(EEC)No1636/87(6),
—forothercurrencies,anexchangeratebasedonthe
arithmeticmeanofthespotmarketratesofeachof
thesecurrenciesrecordedoveragivenperiodinrela­
tiontotheCommunitycurrenciesreferredtointhe
previousindent,andtheaforesaidcoefficient;
Whereastheaidmustbefixedonceamonth,andinsuch
awaythatitcanbeappliedfromthefirstdayofthe
monthfollowingthedateoffixing;whereasitmaybe
alteredbetweenfixings;
(')OJNoL377,31.12.1987,p.48.
(2)OJNoL211,31.7.1981,p.2.
(3)OJNoL85,30.3.1989,p.7.(4)Seepage23ofthisOfficialJournal.
OOJNoL164,24.6.1985,p.1.
(6)OJNoL153,13.6.1987,p.1.

4.5.89 OfficialJournaloftheEuropeanCommunities NoL123/35
oftheguidepriceofcottonadoptedinrespectofthe
1989/90marketingyearand,asthecasemaybe,which
appeartohavebeenofferedinthelargestquantities.Whereasitfollowsfromapplyingtheseprovisionstothe
offersandquotationsknowntotheCommissionthatthe
aidforcottonshouldbeassetoutinthisRegulation,
HASADOPTEDTHISREGULATION :
Article1
1.TheaidforunginnedcottonprovidedforinArticle
5ofRegulation(EEC)No2169/81shallbe46,839ECU
per100kilograms.
2.However,theamountsoftheaidwillbeconfirmed
orreplacedwitheffectfrom4May1989totakeaccountArticle2
ThisRegulationshallenterintoforceon4May1989.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicableinallMember
States.
DoneatBrussels,3May1989.
FortheCommission
RayMACSHARRY
MemberoftheCommission