No C 297/36 Official Journal of the European Communities 27. 11. 90 
Proposal for a 
COUNCIL REGULATION (EEC) No ... 
of ... 
amending Regulation (EEC) No 3774/85 concerning certain national aids in the agricultural 
sector which are incompatible with the common market but which the Portuguese Republic 
is authorized to maintain on a transitional basis 
(90/C 297/21) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, 
Having regard to the Act of Accession of Spain and 
Portugal, and in particular Articles 234 (2) and 247 
thereof, 
Having regard to the proposal from the Commission, 
Whereas Council Regulation (EEC) No 3774/85 (*), as 
amended by Regulation (EEC) No 1890/87 (2), lists, 
pursuant to Article 247 of the Act of Accession, the aids in 
the agricultural sector which Portugal is authorized to 
maintain on a transitional basis and lays down the 
arrangements to apply thereto; 
Whereas, with a view to the beginning of the second stage, 
the said Regulation should be supplemented as regards aids 
in respect of the products covered by Article 259 of the Act 
of Accession to which, in accordance with Article 286, the 
arrangements laid down in Article 247 only apply with 
effect from the second stage; 
Whereas the rate at which the aids set out in points IV and 
V.l of the Annex to Regulation (EEC) No 3774/85 are to 
be progressively reduced can be determined only on the 
basis of the outcome of the structural measures brought in 
by the Portuguese authorities for the period 1991 to 1995, 
including those carried out under Community programmes; 
whereas it would seem appropriate for this purpose for the 
Portuguese authorities to draw up an annual report setting 
This Regulation shall be binding in its entirety and directly applicable in all Member 
States. 
Done at Brussels, . . . 
For the Council 
0) OJ No L 362, 31. 12. 1985, p. 37. 
(2) OJNoL182, 3.7. 1987, p. 4. (Ait the progress made during each financial year and to 
send it to the Commission, 
HAS ADOPTED THIS REGULATION: 
Article 1 
Regulation (EEC) No 3774/85 is hereby amended as 
follows: 
1. The following Article 3a is inserted: 
'Article 3a 
The rate at which the aids set out in points IV and V.l 
of the Annex are to be progressively reduced shall be 
determined in accordance with the procedure laid down 
in Article 5 on the basis of the outcome of the structural 
measures brought in by the Portuguese authorities, 
including those carried out under Community 
programmes. 
For this purpose, an annual report setting out the 
progress made in the course of each financial year shall 
be drawn up by the Portuguese authorities and sent to 
the Commission during the first two months of the 
following year.' 
2. The Annex is replaced by the Annex to this 
Regulation. 
Article 2 
This Regulation shall enter into force on 1 January 1991. 
27. 11. 90 Official Journal of the European Communities No C 297/37 
ANNEX 
Description of aid 
I. Sugar : 
1. Aid granted in the Azores for transporting 
sugar-beet from the place of production to 
factory 
2. Aid for the consumption of sugar in the 
Azores 
II. Vegetable oils: 
1. Aid for the safflower crushing industry 
2. Aid for the consumption of olive oil 
HI. Seeds : 
1. Aid for the purchase of hybrid maize seeds 
2. Aid for the purchase of imported seed 
potatoes for propagation 
IV. Wheat: 
— Aid granted in the Azores for transporting 
flour from island production centres to 
islands with no mills 
V. Milk: 
1. Aid for collecting and concentrating milk on 
Madeira 
2. Aid for the consumption of milk in the 
Azores: 
Sao Miguel 
Terceira 
Faial Initial amount of aid 
= maximum amount 
during the period up to 
the date of the first reduction 
ECU 2,38/tonne/km 
ECU 0,2124/kg 
ECU 29,80/tonne 
ECU 0,1490/litre 
— ECU 0,1118/kg for 
mainland Portugal 
— ECU 0,4471/kg for 
the Azores 
ECU 0,2270/kg 
ECU 174 546 
(total annual budget) 
ECU 0,1364/litre 
ECU 0,1038/litre 
ECU 0,1255/litre 
ECU 0,0928/litre Rate of reduction of aid, applicable on 1 January for the 
following years, as a percentage of the initial amount 
1987 
— 
10 
10 1988 
— 
20 
20 1989 
— 
30 
30 1990 
— 
40 
40 1991 
10 
10 
50 
50 
— 1992 
20 
20 
20 
60 
20 
20 
60 
20 
20 
20 1993 
40 
40 
40 
70 
40 
40 
70 
40 
40 
40 1994 
60 
60 
60 
80 
60 
60 
80 
60 
60 
60 1995 
80 
80 
80 
90 
80 
80 
90 
80 
80 
80 1996 
100 
100 
100 
100 
100 
100 
100 
100 
100 
100 
100 
100